XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Intangible Assets and Goodwill | 12 Months Ended
--- | ---
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
| March 31, 2018 |  | April 1, 2017
| Gross Carrying Amount |  | Accumulated Amortization (1) |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization (1) |  | Net
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Reacquired rights | $ | 400.4 |  |  | $ | 29.4 |  |  | $ | 371.0 |  |  | $ | 400.4 |  |  | $ | 13.4 |  |  | $ | 387.0 |
Trademarks | 23.0 |  |  | 17.4 |  |  | 5.6 |  |  | 23.0 |  |  | 16.3 |  |  | 6.7 |
Lease rights | 80.1 |  |  | 58.3 |  |  | 21.8 |  |  | 74.2 |  |  | 53.8 |  |  | 20.4 |
Customer relationships | 231.3 |  |  | 8.1 |  |  | 223.2 |  |  | 5.0 |  |  | 1.0 |  |  | 4.0 |
| 734.8 |  |  | 113.2 |  |  | 621.6 |  |  | 502.6 |  |  | 84.5 |  |  | 418.1 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Jimmy Choo brand | 614.1 |  |  | — |  |  | 614.1 |  |  | — |  |  | — |  |  | — |
Total intangible assets, excluding goodwill | $ | 1,348.9 |  |  | $ | 113.2 |  |  | $ | 1,235.7 |  |  | $ | 502.6 |  |  | $ | 84.5 |  |  | $ | 418.1 |
________________________________
(1) | Includes $5.2 million and $30.2 million, respectively, of impairment charges recorded during Fiscal 2018 and 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. See Note 12 for additional information.
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 Michael Kors brand name and are amortized over twenty years. Customer relationships are amortized over five to eighteen years. Lease rights are amortized over the respective terms of the underlying lease, including highly probable renewal periods. Amortization expense for the Company’s definite-lived intangibles was $26.3 million, $22.1 million and $11.0 million, respectively, for each of the fiscal years ended March 31, 2018, April 1, 2017 and April 2, 2016. Indefinite-lived intangible assets other than goodwill included the Jimmy Choo brand , which was was recorded in connection with the acquisition of Jimmy Choo and has an indefinite life due to being essential to the Company’s ability to operate the Jimmy Choo business for the foreseeable future. Estimated amortization expense for each of the next five years is as follows (in millions):
Fiscal 2019 | $ | 34.4 |
Fiscal 2020 | 34.1 |
Fiscal 2021 | 34.0 |
Fiscal 2022 | 33.4 |
Fiscal 2023 | 32.5 |
Thereafter | 453.2 |
| $ | 621.6 |
The future amortization expense above reflects weighted-average estimated remaining useful lives of 23.0 years for reacquired rights, 4.8 years for trademarks, 16.9 years for customer relationships and 7.0 years for lease rights. The following table details the changes in goodwill for each of the Company’s reportable segments (in millions):
| MK Retail |  | MK Wholesale |  | MK Licensing |  | Jimmy Choo |  | Total
Balance at April 1, 2017 | $ | 91.9 |  |  | $ | 25.9 |  |  | $ | 1.9 |  |  | $ | — |  |  | $ | 119.7 |
Acquisition of Jimmy Choo | — |  |  | — |  |  | — |  |  | 684.9 |  |  | 684.9 |
Foreign currency translation | — |  |  | — |  |  | — |  |  | 43.1 |  |  | 43.1 |
Balance at March 31, 2018 | $ | 91.9 |  |  | $ | 25.9 |  |  | $ | 1.9 |  |  | $ | 728.0 |  |  | $ | 847.7 |
The Company’s goodwill and the Jimmy Choo brand is not subject to amortization but is evaluated for impairment annually in the last quarter of each fiscal year, or whenever impairment indicators exist. During the fourth quarter of Fiscal 2018, the Company elected to perform its annual goodwill impairment analysis for its Michael Kors brand using a quantitative approach, using the discounted cash flow method to estimate fair value. Based on the results of these assessments, the Company concluded that the fair values of the Michael Kors reporting units significantly exceeded the related carrying amounts and there were no reporting units at risk of impairment. The goodwill impairment analysis relating to the Jimmy Choo brand was performed using a qualitative assessment, due to the proximity to the acquisition date, to determine whether it is more likely than not that the fair value of its reporting units was less than their carrying amounts. As part of the its assessment, the Company considered qualitative factors, including the projected financial performance of Jimmy Choo, as well as various industry, market and macroeconomic factors. Based on this assessment, the Company qualitatively concluded that it is more likely than not that the fair value of the Jimmy Choo reporting units exceeded its carrying value and, therefore, did not result in an impairment. There were no impairment charges related to goodwill in any of the fiscal periods presented. The Company also performed a qualitative impairment assessment to determine whether it is more likely than not that the fair value of its Jimmy Choo brand indefinite-lived intangible asset was less than the carrying amount. As part of this assessment, the Company considered qualitative factors, including the projected financial performance of Jimmy Choo, as well as various industry, market and macroeconomic factors. Based on this assessment, the Company qualitatively concluded that it was more likely than not that the fair value of the Jimmy Choo brand exceeded its carrying value and, therefore, did not result in an impairment.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration