XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 3 Months Ended
--- | ---
Jun. 30, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company 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 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 revenue or other allocation methods. The following table presents the key performance information of the Company’s reportable segments (in millions):
| Three Months Ended
| June 30, 2018 |  | July 1, 2017
Total revenue: |  |  |
MK Retail | $ | 639.5 |  |  | $ | 619.9 |
MK Wholesale | 362.8 |  |  | 303.6 |
MK Licensing | 27.5 |  |  | 28.9 |
Michael Kors | 1,029.8 |  |  | 952.4 |
Jimmy Choo | 172.7 |  |  | — |
Total revenue | $ | 1,202.5 |  |  | $ | 952.4 |
Income from operations: |  |  |
MK Retail | $ | 92.5 |  |  | $ | 92.2 |
MK Wholesale | 97.5 |  |  | 43.5 |
MK Licensing | 9.1 |  |  | 13.7 |
Michael Kors | 199.1 |  |  | 149.4 |
Jimmy Choo | 16.1 |  |  | — |
Income from operations | $ | 215.2 |  |  | $ | 149.4 |
Depreciation and amortization expense for each segment are as follows (in millions):
| Three Months Ended
| June 30, 2018 |  | July 1, 2017
Depreciation and amortization: |  |  |
MK Retail | $ | 33.3 |  |  | $ | 32.0 |
MK Wholesale | 13.8 |  |  | 15.0 |
MK Licensing | 0.6 |  |  | 0.6 |
Michael Kors | 47.7 |  |  | 47.6 |
Jimmy Choo | 8.2 |  |  | — |
Total depreciation and amortization | $ | 55.9 |  |  | $ | 47.6 |
During the three months ended June 30, 2018, the Company recorded impairment charges relating to Michael Kors full-price retail operations of $4.3 million, and restructuring and other charges of $11.3 million. See Note 9 and 12 for additional information. Total revenue (based on country of origin), and long-lived assets by geographic location are as follows (in millions):
| Three Months Ended
| June 30, 2018 |  | July 1, 2017
Total revenue: |  |  |
The Americas (U.S., Canada and Latin America) (1) | $ | 718.2 |  |  | $ | 634.1 |
EMEA | 301.8 |  |  | 201.2 |
Asia | 182.5 |  |  | 117.1 |
Total revenue | $ | 1,202.5 |  |  | $ | 952.4 |
| As of
| June 30, 2018 |  | March 31, 2018
Long-lived assets, excluding goodwill: |  |  |
The Americas (U.S., Canada and Latin America)(1) | $ | 319.5 |  |  | $ | 327.3 |
EMEA | 984.8 |  |  | 1,050.3 |
Asia | 434.5 |  |  | 441.3 |
Total long-lived assets, excluding goodwill | $ | 1,738.8 |  |  | $ | 1,818.9 |
(1) | Total revenue earned in the U.S. were $668.3 million for the three months ended June 30, 2018 and $587.1 million for the three months ended July 1, 2017. Long-lived assets located in the U.S. as of June 30, 2018 and March 31, 2018 were $295.2 million and $303.3 million, respectively.
The following table presents the Company’s goodwill by reportable segment (in millions):
| As of
| June 30, 2018 |  | March 31, 2018
MK Retail | $ | 91.9 |  |  | $ | 91.9 |
MK Wholesale | 25.9 |  |  | 25.9 |
MK Licensing | 1.9 |  |  | 1.9 |
Jimmy Choo | 686.5 |  |  | 728.0 |
Total goodwill | $ | 806.2 |  |  | $ | 847.7 |

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

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration