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Segment Information | 9 Months Ended
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Dec. 30, 2017
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 reportable 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 does not have identifiable assets separated by 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 footwear, handbags and small leather goods through directly operated Jimmy Choo stores throughout the Americas (United States, Canada and Latin America, excluding Brazil), EMEA and certain parts of Asia, as well as through the Jimmy Choo e-commerce site. In addition, revenue is generated through wholesale sales to distribution partners, multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of sunglasses, eyewear, fragrance and soft accessories, as well as through geographic licensing arrangements.
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 Company’s goodwill by reportable segment (in millions):
| As of
| December 30, 2017 |  | April 1, 2017
MK Retail | $ | 91.9 |  |  | $ | 91.9 |
MK Wholesale | 25.9 |  |  | 25.9 |
MK Licensing | 1.9 |  |  | 1.9 |
Jimmy Choo | 702.3 |  |  | — |
Total Goodwill | $ | 822.0 |  |  | $ | 119.7 |
The following table presents the key performance information of the Company’s reportable segments (in millions):
| Three Months Ended |  | Nine Months Ended
| December 30, 2017 |  | December 31, 2016 |  | December 30, 2017 |  | December 31, 2016
Total revenue: |  |  |  |  |  |  |
MK Retail | $ | 846.3 |  |  | $ | 836.7 |  |  | $ | 2,111.2 |  |  | $ | 1,996.8 |
MK Wholesale | 430.8 |  |  | 473.1 |  |  | 1,198.0 |  |  | 1,319.7 |
MK Licensing | 48.3 |  |  | 43.0 |  |  | 115.2 |  |  | 112.4 |
Michael Kors | 1,325.4 |  |  | 1,352.8 |  |  | 3,424.4 |  |  | 3,428.9 |
Jimmy Choo | 114.7 |  |  | — |  |  | 114.7 |  |  | — |
Total revenue | $ | 1,440.1 |  |  | $ | 1,352.8 |  |  | $ | 3,539.1 |  |  | $ | 3,428.9 |
Income from operations: |  |  |  |  |  |  |
MK Retail | $ | 180.4 |  |  | $ | 178.2 |  |  | $ | 341.6 |  |  | $ | 314.4 |
MK Wholesale | 100.5 |  |  | 140.2 |  |  | 263.6 |  |  | 367.2 |
MK Licensing | 26.9 |  |  | 23.5 |  |  | 51.1 |  |  | 50.9 |
Michael Kors | 307.8 |  |  | 341.9 |  |  | 656.3 |  |  | 732.5 |
Jimmy Choo | 5.7 |  |  | — |  |  | 5.7 |  |  | — |
Income from operations | $ | 313.5 |  |  | $ | 341.9 |  |  | $ | 662.0 |  |  | $ | 732.5 |
Depreciation and amortization expense for each segment are as follows (in millions):
| Three Months Ended |  | Nine Months Ended
| December 30, 2017 |  | December 31, 2016 |  | December 30, 2017 |  | December 31, 2016
Depreciation and amortization: |  |  |  |  |  |  |
MK Retail | $ | 33.7 |  |  | $ | 40.1 |  |  | $ | 98.8 |  |  | $ | 114.6 |
MK Wholesale | 13.9 |  |  | 15.1 |  |  | 43.5 |  |  | 46.3 |
MK Licensing | 0.6 |  |  | 0.5 |  |  | 1.8 |  |  | 1.6 |
Michael Kors | 48.2 |  |  | 55.7 |  |  | 144.1 |  |  | 162.5 |
Jimmy Choo | 5.8 |  |  | — |  |  | 5.8 |  |  | — |
Total depreciation and amortization | $ | 54.0 |  |  | $ | 55.7 |  |  | $ | 149.9 |  |  | $ | 162.5 |
During the three and nine months ended December 30, 2017, the Company recorded impairment charges relating to Michael Kors full-price retail operations of $2.6 million and $18.9 million, respectively, and restructuring and other charges of $28.0 million and $51.3 million, respectively. Please refer to Notes 8 and 11 for additional information. During the nine months ended December 31, 2016, the Company recorded fixed asset impairment charges of $5.4 million, $4.9 million of which were related to 10 Michael Kors full-price retail locations still in operation and $0.5 million of which related to U.S. wholesale locations. Total revenue (as recognized based on country of origin), and long-lived assets by geographic location are as follows (in millions):
| Three Months Ended |  | Nine Months Ended
| December 30, 2017 |  | December 31, 2016 |  | December 30, 2017 |  | December 31, 2016
Total revenue: |  |  |  |  |  |  |
The Americas (1) | $ | 946.6 |  |  | $ | 983.8 |  |  | $ | 2,332.6 |  |  | $ | 2,419.7 |
EMEA | 333.1 |  |  | 256.7 |  |  | 805.0 |  |  | 728.7 |
Asia | 160.4 |  |  | 112.3 |  |  | 401.5 |  |  | 280.5 |
Total revenue | $ | 1,440.1 |  |  | $ | 1,352.8 |  |  | $ | 3,539.1 |  |  | $ | 3,428.9 |
| As of
| December 30, 2017 |  | April 1, 2017
Long-lived assets, excluding goodwill: |  |  |
The Americas (1) | $ | 332.6 |  |  | $ | 356.1 |
EMEA | 1,027.0 |  |  | 197.7 |
Asia | 455.2 |  |  | 455.8 |
Total Long-lived assets | $ | 1,814.8 |  |  | $ | 1,009.6 |
(1) | Total revenue earned in the U.S. were $883.2 million and $2.164 billion, respectively, for the three and nine months ended December 30, 2017 and $925.7 million and $2.261 billion for the three and nine months ended December 31, 2016. Long-lived assets located in the U.S. as of December 30, 2017 and April 1, 2017 were $286.4 million and $328.8 million, respectively.

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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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