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Intangible Assets and Goodwill | 12 Months Ended
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Mar. 28, 2020
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 28, 2020 |  |  |  |  |  | March 30, 2019 |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Reacquired rights | $ | 400 |  |  | $ | 61 |  |  | $ | 339 |  |  | $ | 400 |  |  | $ | 45 |  |  | $ | 355 |
Trademarks | 23 |  |  | 20 |  |  | 3 |  |  | 23 |  |  | 19 |  |  | 4 |
Lease rights (1) | — |  |  | — |  |  | — |  |  | 96 |  |  | 56 |  |  | 40 |
Customer relationships | 404 |  |  | 51 |  |  | 353 |  |  | 415 |  |  | 23 |  |  | 392 |
| 827 |  |  | 132 |  |  | 695 |  |  | 934 |  |  | 143 |  |  | 791 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Jimmy Choo brand (2) | 547 |  |  | 180 |  |  | 367 |  |  | 572 |  |  | — |  |  | 572 |
Versace brand (3) | 924 |  |  | — |  |  | 924 |  |  | 930 |  |  | — |  |  | 930 |
| 1,471 |  |  | 180 |  |  | 1,291 |  |  | 1,502 |  |  | — |  |  | 1,502 |
Total intangible assets, excluding goodwill | $ | 2,298 |  |  | $ | 312 |  |  | $ | 1,986 |  |  | $ | 2,436 |  |  | $ | 143 |  |  | $ | 2,293 |
________________________________ (1)The March 30, 2019 balance includes certain lease rights that were reclassified to the operating lease right-of-use asset as part of the adoption of ASU 2016-02 in Fiscal 2020. Includes $2 million and $5 million, respectively, of impairment charges recorded during Fiscal 2019 and Fiscal 2018, primarily in connection with underperforming full-price Michael Kors retail stores. See Note 14 for additional information. (2)The year-over-year change in carrying value reflects an impairment charge of $180 million and foreign currency translation of $25 million. The Company did not incur any impairment charges in prior periods. (3)The year-over-year 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. Key money is amortized over the respective terms of the underlying lease, including highly probable renewal periods. Amortization expense for the Company’s definite-lived intangibles was $49 million, $37 million and $26 million, respectively, for each of the fiscal years ended March 28, 2020, March 30, 2019 and March 31, 2018. 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 2021 | $ | 46 |
Fiscal 2022 | 46 |
Fiscal 2023 | 46 |
Fiscal 2024 | 45 |
Fiscal 2025 | 45 |
Fiscal 2026 and thereafter | 467 |
| $ | 695 |
The future amortization expense above reflects weighted-average estimated remaining useful lives of 21 years for reacquired rights, 3 years for trademarks and 13 years for customer relationships. 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 March 31, 2018 | $ | — |  |  | $ | 728 |  |  | $ | 120 |  |  | $ | 848 |
Acquisition of Versace (1) | 878 |  |  | — |  |  | — |  |  | 878 |
Foreign currency translation | (17) |  |  | (50) |  |  | — |  |  | (67) |
Balance at March 30, 2019 | 861 |  |  | 678 |  |  | 120 |  |  | 1,659 |
Acquisition | — |  |  | 11 |  |  | — |  |  | 11 |
Measurement period adjustment (1) | 26 |  |  | — |  |  | — |  |  | 26 |
Impairment charges (2) | — |  |  | (171) |  |  | — |  |  | (171) |
Foreign currency translation | (6) |  |  | (31) |  |  | — |  |  | (37) |
Balance at March 28, 2020 | $ | 881 |  |  | $ | 487 |  |  | $ | 120 |  |  | $ | 1,488 |
(1)See Note 5 for additional information. (2)The Company recorded impairment charges of $171 million related to the Jimmy Choo retail and licensing reporting units. The Company did not incur any goodwill impairment charges in prior periods. 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 2020, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis for its three segments. The Company performed its goodwill impairment assessment for its Michael Kors segment using a qualitative assessment. As a result of realigning its segment reporting structure during the fourth quarter of Fiscal 2019, the Company presented the carrying amount of goodwill for the Michael Kors Retail, Michael Kors Wholesale and Michael Kors Licensing reporting units 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, were not impaired. The Company performed its annual goodwill and indefinite-lived intangible asset impairment analysis for both the Versace and Jimmy Choo reporting units using a quantitative approach, using a discounted cash flow analysis to estimate the fair values of the each brands' reporting units. Based on the results of these assessments, the Company concluded that the fair values of the Jimmy Choo retail and licensing reporting units and the Jimmy Choo brand indefinite-lived intangible asset did not exceed the related carrying amounts. Jimmy Choo expects to experience a reduction in profitability trends, primarily related to the ongoing impact of the COVID-19 pandemic, resulting in declines in sales driven by the full and partial closures of a significant portion of our stores globally. The Company also concluded that the fair values of the Versace reporting units and the Versace brand indefinite-lived intangible asset exceeded the related carrying amounts and there was no impairment recorded. Accordingly, the Company recorded impairment charges of $171 million related to the Jimmy Choo retail and licensing reporting units and $180 million related to the Jimmy Choo brand intangible asset during Fiscal 2020. The impairment charges were recorded within impairment of assets on the Company's consolidated statement of operations and comprehensive income for the fiscal year ended March 28, 2020. See Note 14 to the accompanying audited financial statements for information relating to its annual impairment analysis performed during the fourth quarter of Fiscal 2020.

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