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Intangible Assets and Goodwill | 12 Months Ended
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Apr. 01, 2023
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):
| April 1, 2023 |  | April 2, 2022
| Gross Carrying Amount |  | Accumulated Amortization/Impairment |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization/Impairment |  | Net Carry Amount
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Reacquired rights | $ | 400 |  |  | $ | 109 |  |  | $ | 291 |  |  | $ | 400 |  |  | $ | 94 |  |  | $ | 306 |
Trademarks | 23 |  |  | 23 |  |  | — |  |  | 23 |  |  | 22 |  |  | 1 |
Customer relationships | 397 |  |  | 136 |  |  | 261 |  |  | 414 |  |  | 112 |  |  | 302 |
Total definite-lived intangible assets | 820 |  |  | 268 |  |  | 552 |  |  | 837 |  |  | 228 |  |  | 609 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Jimmy Choo brand (1) | 550 |  |  | 273 |  |  | 277 |  |  | 570 |  |  | 249 |  |  | 321 |
Versace brand (2) | 899 |  |  | — |  |  | 899 |  |  | 917 |  |  | — |  |  | 917 |
Total indefinite-lived intangible assets | 1,449 |  |  | 273 |  |  | 1,176 |  |  | 1,487 |  |  | 249 |  |  | 1,238 |
Total intangible assets, excluding goodwill | $ | 2,269 |  |  | $ | 541 |  |  | $ | 1,728 |  |  | $ | 2,324 |  |  | $ | 477 |  |  | $ | 1,847 |
(1)The year-over-year change in net carrying amount reflects an impairment charge of $24 million and foreign currency translation of $20 million for the fiscal year ended April 1, 2023. There was no impairment charge for the fiscal year ended April 2, 2022. (2)The year-over-year change in net carrying amount reflects foreign currency translation for the fiscal year ended April 1, 2023. 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 former licensing agreement. The trademarks relate to the Michael Kors brand name and are amortized over twenty years. Customer relationships are generally amortized over five to eighteen years. Amortization expense for the Company’s definite-lived intangibles was $44 million, $49 million and $47 million, respectively, for each of the fiscal years ended April 1, 2023, April 2, 2022 and March 27, 2021. 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 as they are 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 2024 | $ | 44 |
Fiscal 2025 | 44 |
Fiscal 2026 | 44 |
Fiscal 2027 | 44 |
Fiscal 2028 | 43 |
Fiscal 2029 and thereafter | 333 |
Total | $ | 552 |
The future amortization expense above reflects weighted-average estimated remaining useful lives of eighteen years for reacquired rights and ten 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 |  | Total
Balance at March 27, 2021 | $ | 933 |  |  | $ | 445 |  |  | $ | 120 |  |  | $ | 1,498 |
Foreign currency translation | (59) |  |  | (21) |  |  | — |  |  | (80) |
Balance at April 2, 2022 | 874 |  |  | 424 |  |  | 120 |  |  | 1,418 |
Impairment charges(1) | — |  |  | (82) |  |  | — |  |  | (82) |
Foreign currency translation | (17) |  |  | (26) |  |  | — |  |  | (43) |
Balance at April 1, 2023 | $ | 857 |  |  | $ | 316 |  |  | $ | 120 |  |  | $ | 1,293 |
(1)The Company recorded impairment charges of $82 million during Fiscal 2023 related to the Jimmy Choo retail and wholesale reporting units. As of April 1, 2023, the Company had accumulated impairment charges of $347 million related to Jimmy Choo reporting units. 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 2023, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis. The Company performed its goodwill impairment assessment for its Michael Kors reporting units using a qualitative assessment. 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 assets impairment analysis for both the Versace and Jimmy Choo reporting units, using a combination of income and market approaches to estimate the fair value of each brands’ reporting units. The Company also elected to perform an impairment analysis for both the Versace and Jimmy Choo brand indefinite-lived intangible assets using an income approach to estimate the fair values. Based on the results of these assessments, the Company determined there was no impairment for the Jimmy Choo Licensing reporting unit goodwill or Wholesale brand intangible assets and Versace reporting units goodwill or brand intangible assets, as the fair values of the reporting units and the brand intangible assets exceeded the related carrying amounts. However, the Company concluded that the fair value of the Jimmy Choo Retail and Wholesale reporting units goodwill, along with the Jimmy Choo Retail brand indefinite-lived intangible assets did not exceed their related carrying amounts. These impairment charges were primarily related to a higher discount rate in the current year driven by higher risk-free rates. Accordingly, the Company recorded goodwill impairment charges of $82 million related to the Jimmy Choo Retail and Wholesale reporting units and $24 million related to the Jimmy Choo Retail brand intangible assets during Fiscal 2023. The impairment charges were recorded within impairment of assets on our consolidated statement of operations and comprehensive income (loss) for the fiscal year ended April 1, 2023. In Fiscal 2022, the Company did not incur any impairment charges. In Fiscal 2021, the Company recorded goodwill impairment charges of $94 million related to the Jimmy Choo Wholesale and Jimmy Choo Licensing reporting units and impairment charges of $69 million related to the Jimmy Choo brand intangible assets. The impairment charges were recorded within impairment of assets on our consolidated statement of operations and comprehensive income (loss) for the fiscal year ended March 27, 2021. See Note 13 for additional information.

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