XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Share-Based Compensation | 6 Months Ended
--- | ---
Sep. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans, one adopted in Fiscal 2008, the Michael Kors (USA), Inc. Stock Option Plan (as amended and restated, the “2008 Plan”), and the other adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015, the Michael Kors Holdings Limited Amended and Restated Omnibus Incentive Plan (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of September 29, 2018, there were no shares available to grant equity awards under the 2008 Plan. The Incentive Plan allows for grants of share options, restricted shares and restricted share units, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At September 29, 2018, there were 6,265,990 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant. The following table summarizes the Company’s share-based compensation activity during the six months ended September 29, 2018:
| Options |  | Restricted Shares |  | Service-Based RSUs |  | Performance-Based RSUs
Outstanding/Unvested at March 31, 2018 | 3,796,620 |  |  | 64,148 |  |  | 2,127,517 |  |  | 657,532 |
Granted | 224,582 |  |  | — |  |  | 808,512 |  |  | 166,617 |
Exercised/Vested | (1,521,633 | ) |  | (53,473 | ) |  | (590,765 | ) |  | (105,900 | )
Decrease due to performance condition | — |  |  | — |  |  | — |  |  | (101,744 | )
Canceled/forfeited | (24,869 | ) |  | (429 | ) |  | (115,419 | ) |  | (29,477 | )
Outstanding/Unvested at September 29, 2018 | 2,474,700 |  |  | 10,246 |  |  | 2,229,845 |  |  | 587,028 |
The weighted average grant date fair value for options granted during the six months ended September 29, 2018 and September 30, 2017 was $24.49 and $11.59, respectively. The weighted average grant date fair value of service-based and performance-based RSUs granted during the six months ended September 29, 2018 was $67.39 and $67.52, respectively, and $34.94 and $34.68, respectively, during the six months ended September 30, 2017. The Company uses the Black-Scholes valuation model to estimate the grant date fair value of its share option awards. The following table presents assumptions used to estimate the fair value of options granted during the six months ended September 29, 2018 and September 30, 2017:
| Six Months Ended
| September 29, 2018 |  | September 30, 2017
Expected dividend yield | 0.0 | % |  | 0.0 | %
Volatility factor | 36.9 | % |  | 36.3 | %
Weighted average risk-free interest rate | 2.8 | % |  | 1.8 | %
Expected life of option | 4.85 years |  |  | 4.69 years |
Share-Based Compensation Expense The following table summarizes compensation expense attributable to share-based compensation for the three and six months ended September 29, 2018 and September 30, 2017 (in millions):
| Three Months Ended |  | Six Months Ended
| September 29, 2018 |  | September 30, 2017 |  | September 29, 2018 |  | September 30, 2017
Share-based compensation expense | $ | 13.6 |  |  | $ | 10.3 |  |  | $ | 26.4 |  |  | $ | 21.1 |
Tax benefit related to share-based compensation expense | $ | 2.8 |  |  | $ | 3.2 |  |  | $ | 5.0 |  |  | $ | 6.8 |
Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate to date. The estimated value of future forfeitures for equity grants as of September 29, 2018 is approximately $12.7 million. See Note 16 in the Company’s Fiscal 2018 Annual Report on Form 10-K for additional information relating to the Company’s share-based compensation awards.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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