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Intangible Assets and Goodwill | 12 Months Ended
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Mar. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
| March 30, 2019 |  | March 31, 2018
| Gross Carrying Amount |  | Accumulated Amortization (1) |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization (1) |  | Net
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Reacquired rights | $ | 400 |  |  | $ | 45 |  |  | $ | 355 |  |  | $ | 400 |  |  | $ | 29 |  |  | $ | 371 |
Trademarks | 23 |  |  | 19 |  |  | 4 |  |  | 23 |  |  | 17 |  |  | 6 |
Lease rights | 96 |  |  | 56 |  |  | 40 |  |  | 80 |  |  | 58 |  |  | 22 |
Customer relationships | 415 |  |  | 23 |  |  | 392 |  |  | 231 |  |  | 8 |  |  | 223 |
| 934 |  |  | 143 |  |  | 791 |  |  | 734 |  |  | 112 |  |  | 622 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Jimmy Choo brand (2) | 572 |  |  | — |  |  | 572 |  |  | 614 |  |  | — |  |  | 614 |
Versace brand | 930 |  |  | — |  |  | 930 |  |  | — |  |  | — |  |  | — |
| 1,502 |  |  | — |  |  | 1,502 |  |  | 614 |  |  | — |  |  | 614 |
Total intangible assets, excluding goodwill | $ | 2,436 |  |  | $ | 143 |  |  | $ | 2,293 |  |  | $ | 1,348 |  |  | $ | 112 |  |  | $ | 1,236 |
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(1) | Includes $2 million, $5 million and $30 million, respectively, of impairment charges recorded during Fiscal 2019, Fiscal 2018 and Fiscal 2017 in connection with underperforming full-price retail stores. See Note 13 for additional information.
(2) | The change in carrying value relates to foreign currency translation.
Reacquired rights relate to the Company’s reacquisition of the rights to use the Michael Kors trademarks and to import, sell, advertise and promote certain of its products in the previously licensed territories in the Greater China region and are being amortized through March 31, 2041, the expiration date of the related license agreement. The trademarks relate to the Michael Kors brand name and are amortized over twenty years. Customer relationships are amortized over five to eighteen years. Lease rights are amortized over the respective terms of the underlying lease, including highly probable renewal periods. Amortization expense for the Company’s definite-lived intangibles was $37 million, $26 million and $22 million, respectively, for each of the fiscal years ended March 30, 2019, March 31, 2018 and April 1, 2017. Indefinite-lived intangible assets other than goodwill included the Versace and Jimmy Choo brands, which were recorded in connection with the acquisitions of Versace and Jimmy Choo, and have an indefinite life due to being essential to the Company’s ability to operate the Versace and Jimmy Choo businesses for the foreseeable future. Estimated amortization expense for each of the next five years is as follows (in millions):
Fiscal 2020 | $ | 56 |
Fiscal 2021 | 55 |
Fiscal 2022 | 52 |
Fiscal 2023 | 50 |
Fiscal 2024 | 49 |
Fiscal 2025 and thereafter | 529 |
| $ | 791 |
The future amortization expense above reflects weighted-average estimated remaining useful lives of 22 years for reacquired rights, 4 years for trademarks, 14 years for customer relationships and 6 years for lease rights. The following table details the changes in goodwill for each of the Company’s reportable segments (in millions):
| Versace |  | Jimmy Choo |  | Michael Kors (1) |  | Total
Balance at April 1, 2017 | $ | — |  |  | $ | — |  |  | $ | 120 |  |  | $ | 120 |
Acquisition of Jimmy Choo | — |  |  | 685 |  |  | — |  |  | 685 |
Foreign currency translation | — |  |  | 43 |  |  | — |  |  | 43 |
Balance at March 31, 2018 | — |  |  | 728 |  |  | 120 |  |  | 848 |
Acquisition of Versace (2) | 878 |  |  | — |  |  | — |  |  | 878 |
Foreign currency translation | (17 | ) |  | (50 | ) |  | — |  |  | (67 | )
Balance at March 30, 2019 | $ | 861 |  |  | $ | 678 |  |  | $ | 120 |  |  | $ | 1,659 |
(1) | In connection with the realignment of the Company’s reportable segment structure, the Company presented the carrying amount of goodwill of MK Retail, MK Wholesale and MK Licensing reporting units within the Michael Kors reportable segment, effective beginning in the fourth quarter of Fiscal 2019.
(2) | See Note 4 for additional information.
The Company’s goodwill and the Versace and Jimmy Choo brands are not subject to amortization but are evaluated for impairment annually in the last quarter of each fiscal year, or whenever impairment indicators exist. During the fourth quarter of Fiscal 2019, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis for its three brands. The impairment analysis relating to the Versace goodwill and brand were performed using a qualitative approach due to the proximity to the acquisition date and it was concluded that it is more likely than not that the fair value of goodwill and brand exceeded their respective carrying values and, therefore, did not result in impairment. The Company also performed its goodwill impairment assessment for the Michael Kors brand using a qualitative approach. As a result of realigning its segment reporting structure during the fourth quarter of Fiscal 2019, the Company presented the carrying amount of goodwill of MK Retail, MK Wholesale and MK Licensing within the Michael Kors reportable segment. Based on the results of the Company’s qualitative impairment assessment, the Company concluded that it is more likely than not that the fair value of the Michael Kors’ reporting units exceeded their carrying value and, therefore, was not impaired. The Company elected to perform its annual goodwill and brand impairment analysis for Jimmy Choo brand using a quantitative approach, using discounted cash flow and market multiples analysis to estimate the fair values of the Jimmy Choo reporting units, as described above. Based on the results of these assessments, the Company concluded that the fair values of the Jimmy Choo reporting units and the brand indefinite-lived intangible asset exceeded the related carrying amounts and there were no reporting units at risk of impairment. See Note 13 to the accompanying audited financial statements for information relating to its annual impairment analysis performed during the fourth quarter of Fiscal 2019. There were no impairment charges related to goodwill or indefinite-lived intangible assets in any of the fiscal periods presented.

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