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Segment Information | 12 Months Ended
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Mar. 31, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information Prior to the third quarter of Fiscal 2018, the Company’s business consisted of three reportable segments for its Michael Kors brand: Retail, Wholesale and Licensing. In connection with the acquisition of Jimmy Choo, the Company evaluated its reportable segments and concluded that Jimmy Choo represents a separate reportable segment. As such, the Company now operates its business through four operating segments—MK Retail, MK Wholesale, MK Licensing and Jimmy Choo—which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are revenue and operating income for each segment. The Company’s reportable segments represent channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s four reportable segments are as follows:
• | MK Retail — segment includes sales through Michael Kors operated stores, including “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout the Americas (U.S., Canada and Latin America, excluding Brazil), Europe and certain parts of Asia, as well as Michael Kors e-commerce sales. Products sold through the MK Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), men’s apparel, footwear and licensed products, such as watches, jewelry, fragrances and beauty, and eyewear.
• | MK Wholesale — segment includes sales primarily to major department stores and specialty shops throughout the Americas, Europe and Asia. Products sold through the MK Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Company also has wholesale arrangements pursuant to which it sells products to Michael Kors geographic licensees in certain parts of EMEA (Europe, Middle East and Africa) and Asia, as well as in Brazil.
• | MK Licensing — segment includes royalties and other contributions earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to operate retail stores and/or sell the Company’s products in certain geographic regions such as Brazil, the Middle East, South Africa, Eastern Europe, certain parts of Asia and Australia.
• | Jimmy Choo — segment includes revenue generated from sales of luxury footwear, handbags and small leather goods through directly operated Jimmy Choo stores throughout North America (United States and Canada), EMEA and certain parts of Asia, as well as through Jimmy Choo e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of fragrance, sunglasses and eyewear.
All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods. The following table presents the key performance information of the Company’s reportable segments (in millions):
| Fiscal Years Ended
| March 31, 2018 |  | April 1, 2017 |  | April 2, 2016
Total revenue: |  |  |  |  |
MK Retail | $ | 2,711.8 |  |  | $ | 2,572.1 |  |  | $ | 2,394.9 |
MK Wholesale | 1,639.3 |  |  | 1,775.8 |  |  | 2,143.9 |
MK Licensing | 144.9 |  |  | 145.8 |  |  | 173.3 |
Michael Kors | 4,496.0 |  |  | 4,493.7 |  |  | 4,712.1 |
Jimmy Choo | 222.6 |  |  | — |  |  | — |
Total revenue | $ | 4,718.6 |  |  | $ | 4,493.7 |  |  | $ | 4,712.1 |
Income from operations: |  |  |  |  |
MK Retail | $ | 333.8 |  |  | $ | 159.8 |  |  | $ | 501.4 |
MK Wholesale | 373.8 |  |  | 468.1 |  |  | 584.1 |
MK Licensing | 58.2 |  |  | 62.0 |  |  | 89.6 |
Michael Kors | 765.8 |  |  | 689.9 |  |  | 1,175.1 |
Jimmy Choo | (16.7 | ) |  | — |  |  | — |
Income from operations | $ | 749.1 |  |  | $ | 689.9 |  |  | $ | 1,175.1 |
Depreciation and amortization expense for each segment are as follows (in millions):
| Fiscal Years Ended
| March 31, 2018 |  | April 1, 2017 |  | April 2, 2016
Depreciation and amortization(1): |  |  |  |  |
MK Retail | $ | 135.8 |  |  | $ | 156.1 |  |  | $ | 114.5 |
MK Wholesale | 57.2 |  |  | 61.6 |  |  | 67.3 |
MK Licensing | 2.4 |  |  | 2.1 |  |  | 1.4 |
Michael Kors | 195.4 |  |  | 219.8 |  |  | 183.2 |
Jimmy Choo | 13.2 |  |  | — |  |  | — |
Total depreciation and amortization | $ | 208.6 |  |  | $ | 219.8 |  |  | $ | 183.2 |
(1) | Excluded from the above table are impairment charges, which are detailed in the below table and in Note 6, Note 7 and Note 12.
The Company does not have identifiable assets separated by segment. See Note 7 to the accompanying consolidated financial statements for the Company’s goodwill by reportable segment. The following table presents the Company’s impairment charges by asset type (in millions):
| Fiscal Years Ended
| March 31, 2018 |  | April 1, 2017 |  | April 2, 2016
Impairment Charges: |  |  |  |  |
MK Retail assets | $ | 31.3 |  |  | $ | 198.7 |  |  | $ | 8.6 |
MK Wholesale assets | 1.4 |  |  | 0.5 |  |  | 0.4 |
Corporate assets | — |  |  | — |  |  | 1.9 |
Total impairment | $ | 32.7 |  |  | $ | 199.2 |  |  | $ | 10.9 |
Total revenue (based on country of origin) and long-lived assets by geographic location are as follows (in millions):
| Fiscal Years Ended
| March 31, 2018 |  | April 1, 2017 |  | April 2, 2016
Revenue: |  |  |  |  |
The Americas (U.S., Canada and Latin America)(1) | $ | 3,033.2 |  |  | $ | 3,140.7 |  |  | $ | 3,506.6 |
EMEA | 1,092.7 |  |  | 943.9 |  |  | 990.3 |
Asia | 592.7 |  |  | 409.1 |  |  | 215.2 |
Total revenue | $ | 4,718.6 |  |  | $ | 4,493.7 |  |  | $ | 4,712.1 |
| As of
| March 31, 2018 |  | April 1, 2017 |  | April 2, 2016
Long-lived assets: |  |  |  |  |
The Americas (U.S., Canada and Latin America)(1) | $ | 327.3 |  |  | $ | 356.1 |  |  | $ | 507.7 |
EMEA | 1,050.3 |  |  | 197.7 |  |  | 284.2 |
Asia | 441.3 |  |  | 455.8 |  |  | 33.7 |
Total Long-lived assets: | $ | 1,818.9 |  |  | $ | 1,009.6 |  |  | $ | 825.6 |
(1) | Net revenues earned in the U.S. during Fiscal 2018, Fiscal 2017, and Fiscal 2016 were $2.818 billion, $2.935 billion and $3.304 billion, respectively. Long-lived assets located in the U.S. as of March 31, 2018 and April 1, 2017 were $303.3 million and $328.8 million, respectively.
Total revenue by major product category are as follows (in millions):
| Fiscal Years Ended
| March 31, 2018 |  | % of Total |  | April 1, 2017 |  | % of Total |  | April 2, 2016 |  | % of Total
Accessories | $ | 3,057.0 |  |  | 64.8% |  | $ | 3,061.4 |  |  | 68.1 | % |  | $ | 3,179.7 |  |  | 67.5 | %
Footwear | 656.9 |  |  | 13.9% |  | 462.0 |  |  | 10.3 | % |  | 491.0 |  |  | 10.4 | %
Apparel | 604.6 |  |  | 12.8% |  | 543.2 |  |  | 12.1 | % |  | 543.7 |  |  | 11.5 | %
Licensed product | 249.7 |  |  | 5.3% |  | 281.3 |  |  | 6.3 | % |  | 324.4 |  |  | 6.9 | %
Licensing revenue | 150.4 |  |  | 3.2% |  | 145.8 |  |  | 3.2 | % |  | 173.3 |  |  | 3.7 | %
Total Revenue | $ | 4,718.6 |  |  |  |  | $ | 4,493.7 |  |  |  |  | $ | 4,712.1 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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