Intangible Assets and Goodwill

12 Months Ended

Apr. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The following table details the carrying values of the Company's intangible assets that are subject to amortization (in millions):



	April 1, 2017							April 2, 2016
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization		Net
Reacquired Rights	$	400.4	$	13.4		$	387.0	$	—	$	—	$	—
Trademarks	23.0		16.3			6.7		23.0		15.1		7.9
Lease Rights	74.2		53.8		⁽¹⁾	20.4		73.3		17.8		55.5
Customer Relationships	5.0		1.0			4.0		4.2		0.2		4.0
	$	502.6	$	84.5		$	418.1	$	100.5	$	33.1	$	67.4

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⁽¹⁾ Includes $30.2 million of impairment charges recorded during Fiscal 2017 in connection with underperforming full-price retail stores. There were no impairment charges related to the Company’s amortized intangibles assets during Fiscal 2016 and Fiscal 2015.

Reacquired rights relate to the Company's reacquisition of the rights to use its trademarks and to import, sell, advertise and promote certain of its products in the previously licensed territories in the Greater China region and are being amortized through March 31, 2041, the expiration date of the related license agreement. The trademarks relate to the Company’s brand name and are amortized over twenty years. Customer relationships are amortized over five to ten years. Lease rights are amortized over the respective terms of the underlying lease, including highly probable renewal periods. Amortization expense was $22.1 million, $11.0 million and $7.0 million, respectively, for each of the fiscal years ended April 1, 2017, April 2, 2016 and March 28, 2015.

Estimated amortization expense for each of the next five years is as follows (in millions):



Fiscal 2018	$	20.4
Fiscal 2019	20.4
Fiscal 2020	20.4
Fiscal 2021	20.2
Fiscal 2022	19.8
Thereafter	316.9
	$	418.1

The future amortization expense above reflects weighted-average estimated remaining useful lives of 24.2 years for reacquired rights, 5.8 years for trademarks, 6.5 years for customer relationships and 8.3 years for lease rights.

The following table details the changes in goodwill for each of the Company's reportable segments (in millions):



	Retail		Wholesale		Licensing		Total
Balance at April 2, 2016	$	8.0	$	13.3	$	1.9	$	23.2
Acquisition of MKHKL	83.9		12.6		—		96.5
Balance at April 1, 2017	$	91.9	$	25.9	$	1.9	$	119.7

The Company's goodwill is not subject to amortization but is evaluated for impairment annually in the last quarter of each fiscal year, or whenever impairment indicators exist. The Company evaluated goodwill during the fourth fiscal quarter of Fiscal 2017, and determined that there was no impairment (See Note 11 for additional information). As of April 1, 2017, cumulative impairment related to goodwill totaled $5.4 million. There were no charges related to the impairment of goodwill in any of the periods presented.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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