XML 39 R28.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Acquisitions (Tables) | 9 Months Ended
--- | ---
Dec. 30, 2017
Business Combinations [Abstract] |
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate purchase price consideration paid to acquire Jimmy Choo in cash (in millions):
| November 1, 2017
Consideration paid to Jimmy Choo shareholders | $ | 1,181.2 |
Repayment of debt and related obligations | 266.2 |
Total purchase price | $ | 1,447.4 |
The following table summarizes the preliminary purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions):
| November 1, 2017
Cash and cash equivalents | $ | 34.3 |
Accounts receivable | 30.7 |
Inventory(1) | 126.2 |
Other current assets | 63.9 |
Current assets | 255.1 |
Property and equipment(2) | 51.0 |
Goodwill(3) | 684.9 |
Brand(4) | 577.8 |
Customer relationships(5) | 212.8 |
Lease rights | 5.9 |
Deferred tax assets | 22.5 |
Other assets | 28.1 |
Total assets acquired | $ | 1,838.1 |
Accounts payable | $ | 129.3 |
Other current liabilities | 96.5 |
Current liabilities | 225.8 |
Deferred tax liabilities | 134.9 |
Other liabilities | 26.9 |
Total liabilities assumed | $ | 387.6 |
Less: Noncontrolling interest in joint ventures | $ | 3.1 |
Fair value of net assets acquired | $ | 1,447.4 |
Fair value of acquisition consideration | $ | 1,447.4 |
(1) Includes an inventory step-up adjustment of $9.5 million, which will be recognized as an adjustment to the Company's cost of goods sold in its statement of operations over twelve months. (2) Includes a $7.0 million adjustment to reduce the fair value of Jimmy Choo's leasehold improvements, which will be recognized over the remaining lease term. (3) Represents the difference between the purchase price over the net identifiable tangible and intangible assets acquired has been allocated to goodwill, which is not deductible for tax purposes.
(4) | Represents the fair value Jimmy Choo's brand, which is an indefinite-lived intangible asset due to being essential to the Company's ability to operate the Jimmy Choo business for the foreseeable future. The Jimmy Choo brand was valued using the relief-from-royalty method of the income valuation approach.
(5) Represents customer relationships associated with Jimmy Choo wholesale customers and geographic licensees, which are being amortized over 15 years and customer relationships with product licensees, which are being amortized over 18 years. These useful lives were estimated based on the time to recover the related future discounted cash flows. These intangible assets were valued using multi-period excess-earnings valuation method.
Schedule of Pro-Forma Consolidated Results of Operations | The following table summarizes the unaudited pro-forma consolidated results of operations for the three and nine months ended December 30, 2017 and December 31, 2016 as if the acquisition had occurred on April 3, 2016, the beginning of Fiscal 2017 (in millions):
| Three Months Ended |  | Nine Months Ended
| December 30, 2017 | December 31, 2016 |  | December 30, 2017 | December 31, 2016
Pro-forma total revenue | $ | 1,478.5 |  | $ | 1,499.1 |  |  | $ | 3,832.6 |  | $ | 3,819.6 |
Pro-forma net income | 242.8 |  | 279.4 |  |  | 574.2 |  | 586.2 |
Pro-forma net income per ordinary share attributable to MKHL: |  |  |  |  |
Basic | $ | 1.60 |  | $ | 1.71 |  |  | $ | 3.76 |  | $ | 3.49 |
Diluted | $ | 1.57 |  | $ | 1.69 |  |  | $ | 3.70 |  | $ | 3.44 |
The following table summarizes the unaudited pro-forma consolidated results of operations for the three and nine months ended December 31, 2016 as if the acquisition had occurred on March 29, 2015, the beginning of Fiscal 2016 (in millions):
| Three Months Ended |  | Nine Months Ended
| December 31, 2016 |  | December 31, 2016
Pro-forma total revenue | $ | 1,352.8 |  |  | $ | 3,455.3 |
Pro-forma net income | 271.0 |  |  | 584.0 |
Pro-forma net income per ordinary share attributable to MKHL: |  |  |
Basic | $ | 1.66 |  |  | $ | 3.48 |
Diluted | $ | 1.64 |  |  | $ | 3.43 |

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration