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Segment Information | 6 Months Ended
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Sep. 28, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company operates its business through three operating segments—Versace, Jimmy Choo and Michael Kors, 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 ("CODM") 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 components of the business that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s three reportable segments are as follows:
• | Versace — segment includes revenue generated through the sale of Versace luxury ready-to-wear, accessories, footwear and home furnishings through directly operated Versace boutiques throughout North America (United States and Canada), EMEA and certain parts of Asia, as well as through Versace outlet stores and e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements that allow third parties to use the Versace trademarks in connection with retail and/or wholesale sales of Versace branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of jeans, fragrances, watches, jewelry and eyewear.
• | Jimmy Choo — segment includes revenue generated through the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo stores throughout the Americas, EMEA and certain parts of Asia, through its e-commerce sites, as well as through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo trademarks in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide. In addition, revenue is generated through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of fragrances, sunglasses and eyewear.
• | Michael Kors — segment includes revenue generated through the sale of Michael Kors products through four primary Michael Kors retail store formats: “Collection” stores, “Lifestyle” stores (including concessions), outlet stores and e-commerce, through which the Company sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to the end consumer throughout the Americas, Europe and certain parts of Asia. The Michael Kors e-commerce business includes e-commerce sites in the U.S., Canada and certain parts of Europe and Asia. The Company also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third parties to use the Michael Kors brand name and trademarks in connection with the manufacturing and sale of products, including watches, jewelry, fragrances and eyewear.
In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, and information systems expenses, including enterprise resource planning system implementation costs. In addition, certain other costs are not allocated to segments, including restructuring and other charges (including transition costs related to the Company’s recent acquisitions) and impairment costs. The segment structure is consistent with how the Company’s CODM plans and allocates resources, manages the business and assesses performance. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The following table presents the key performance information of the Company’s reportable segments (in millions):
| Three Months Ended |  | Six Months Ended
| September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Total revenue: |  |  |  |  |  |  |
Versace | $ | 228 |  |  | $ | — |  |  | $ | 435 |  |  | $ | — |
Jimmy Choo | 125 |  |  | 116 |  |  | 283 |  |  | 289 |
Michael Kors | 1,089 |  |  | 1,137 |  |  | 2,070 |  |  | 2,167 |
Total revenue | $ | 1,442 |  |  | $ | 1,253 |  |  | $ | 2,788 |  |  | $ | 2,456 |
Income (loss) from operations: |  |  |  |  |  |  |
Versace | $ | 9 |  |  | $ | — |  |  | $ | 6 |  |  | $ | — |
Jimmy Choo | (10 | ) |  | (9 | ) |  | 1 |  |  | 13 |
Michael Kors | 222 |  |  | 248 |  |  | 423 |  |  | 478 |
Total segment income from operations | 221 |  |  | 239 |  |  | 430 |  |  | 491 |
Less: Corporate expenses | (35 | ) |  | (23 | ) |  | (68 | ) |  | (45 | )
Restructuring and other charges | (7 | ) |  | (19 | ) |  | (22 | ) |  | (30 | )
Impairment of long-lived assets | (104 | ) |  | (7 | ) |  | (201 | ) |  | (11 | )
Total income from operations | $ | 75 |  |  | $ | 190 |  |  | $ | 139 |  |  | $ | 405 |
Depreciation and amortization expense for each segment are as follows (in millions):
| Three Months Ended |  | Six Months Ended
| September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Depreciation and amortization: |  |  |  |  |  |  |
Versace | $ | 15 |  |  | $ | — |  |  | $ | 29 |  |  | $ | — |
Jimmy Choo | 9 |  |  | 9 |  |  | 17 |  |  | 17 |
Michael Kors | 41 |  |  | 44 |  |  | 79 |  |  | 92 |
Total depreciation and amortization | $ | 65 |  |  | $ | 53 |  |  | $ | 125 |  |  | $ | 109 |
Total revenue (based on country of origin) by geographic location are as follows (in millions):
| Three Months Ended |  | Six Months Ended
| September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Total revenue: |  |  |  |  |  |  |
The Americas (1) | $ | 802 |  |  | $ | 793 |  |  | $ | 1,531 |  |  | $ | 1,511 |
EMEA | 409 |  |  | 289 |  |  | 769 |  |  | 591 |
Asia | 231 |  |  | 171 |  |  | 488 |  |  | 354 |
Total revenue | $ | 1,442 |  |  | $ | 1,253 |  |  | $ | 2,788 |  |  | $ | 2,456 |
(1) | Total revenue earned in the U.S. were $741 million and $1.422 billion, respectively, for the three and six months ended September 28, 2019 and $737 million and $1.405 billion, respectively, for the three and six months ended September 29, 2018.
As of September 28, 2019 and March 30, 2019, the Company's total assets were $8.393 billion and $6.650 billion, respectively. The increase in total assets was primarily due to the adoption of ASU 2016-02 in the first quarter of Fiscal 2020, which resulted in the Company recording operating lease right-of-use assets of $1.671 billion, of which $1.062 billion related to Michael Kors, $386 million related to Versace, and $223 million related to Jimmy Choo, as of September 28, 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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