XML 30 R13.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Intangible Assets and Goodwill | 9 Months Ended
--- | ---
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Interim Impairment Assessment The Company performs its annual impairment assessment of goodwill and intangible assets during the fourth quarter of each fiscal year or whenever impairment indicators exist. During the third quarter of Fiscal 2025, the Company identified impairment indicators due to the reduction of the Company’s share price following the termination of the Merger Agreement, continued softening of consumer demand for fashion luxury goods globally and the continuing decline in operating results during the third quarter impacting all three of the Company’s brands. As a result of these factors, the Company concluded that impairment indicators existed during the third quarter of Fiscal 2025, resulting in an interim impairment assessment of goodwill and intangible assets. 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 values and, therefore, were not impaired. The Company performed a goodwill 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 performed an impairment analysis for both the Versace and Jimmy Choo brand indefinite-lived intangible assets and definite-lived customer relationship intangible assets using an income approach to estimate their fair values. Based on the results of these assessments, the Company determined there was no impairment for the Versace and Jimmy Choo Licensing reporting units’ goodwill as the fair values of the reporting units exceeded the related carrying amounts. However, the Company concluded that the fair value of the Jimmy Choo Wholesale reporting unit goodwill and Retail and Wholesale brand indefinite-lived intangible assets did not exceed their related carrying amounts and recorded impairment charges. The Jimmy Choo Retail reporting unit goodwill was fully impaired during Fiscal 2024. Additionally, the Versace Retail and Wholesale reporting units goodwill and Retail and Wholesale brand indefinite-lived intangible assets did not exceed their related carrying amounts. These impairment charges were primarily related to a decline in revenue driven predominantly by softening demand globally for fashion luxury goods as well as Versace’s recent efforts to reposition the brand to place a greater emphasis on luxury and craftsmanship. Accordingly, the Company recorded goodwill impairment charges of $66 million related to the Jimmy Choo Wholesale reporting unit, $15 million related to the Jimmy Choo Retail and Wholesale brand intangible assets, $364 million related to the Versace Retail and Wholesale reporting units goodwill and $216 million related to the Versace Retail and Wholesale brand intangible assets during the third quarter of Fiscal 2025. In total, $661 million of impairment was recorded related to goodwill and indefinite-lived intangible assets within impairment of assets on the Company’s consolidated statement of operations and comprehensive (loss) income for the period ended December 28, 2024. During the third quarter of Fiscal 2025 the Company also performed an impairment assessment for its definite-lived intangible assets and concluded that the Versace Wholesale reporting unit customer relationship intangible asset did not exceed its related carrying amounts. Accordingly, the Company recorded $10 million of impairment related to definite-lived intangible assets within impairment of assets on the Company’s consolidated statement of operations and comprehensive (loss) income for the period ended December 28, 2024. 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 30, 2024 | 853 |  |  | 133 |  |  | 120 |  |  | 1,106 |
Acquisition(1) | — |  |  | 9 |  |  | — |  |  | 9 |
Impairment charges(2) | (364) |  |  | (66) |  |  | — |  |  | (430) |
Foreign currency translation | (18) |  |  | — |  |  | — |  |  | (18) |
Balance at December 28, 2024 | $ | 471 |  |  | $ | 76 |  |  | $ | 120 |  |  | $ | 667 |
(1)On May 2, 2024, the Company completed the acquisition of Calzaturificio Sicla S.r.l. (“Sicla Acquisition”), an Italian shoe manufacturer, for cash consideration of $9 million, net of cash acquired. The acquired identifiable assets and liabilities net to a nominal amount, with $9 million recognized in goodwill allocated to the Jimmy Choo reportable segment. (2)The Company recorded impairment charges of $430 million during Fiscal 2025 related to the Versace Retail and Wholesale reporting units and the Jimmy Choo Wholesale reporting unit. As of December 28, 2024, the Company had accumulated impairment charges of $605 million related to its Jimmy Choo reporting units and $364 million related to its Versace reporting units, respectively. The following table details the carrying values of the Company’s intangible assets (in millions):
| December 28, 2024 |  | March 30, 2024
Definite-lived intangible assets: |  |  |
Reacquired rights | $ | 400 |  |  | $ | 400 |
Trademarks | 23 |  |  | 23 |
Customer relationships (1) | 394 |  |  | 401 |
Gross definite-lived intangible assets | 817 |  |  | 824 |
Less: accumulated amortization (2) | (353) |  |  | (314) |
Net definite-lived intangible assets | 464 |  |  | 510 |
Indefinite-lived intangible assets: |  |  |
Jimmy Choo brand (3) | 199 |  |  | 215 |
Versace brand (4) | 436 |  |  | 669 |
Net indefinite-lived intangible assets | 635 |  |  | 884 |
Total intangible assets, excluding goodwill | $ | 1,099 |  |  | $ | 1,394 |
(1)The change in the carrying value since March 30, 2024 reflects the impact of foreign currency translation adjustments. (2)The change in accumulated amortization since March 30, 2024 includes an impairment charge of $10 million. (3)The change in the carrying value since March 30, 2024 reflects an impairment charge of $15 million and the impact of foreign currency translation adjustments. As of December 28, 2024, the Company had accumulated impairment charges of $358 million related to its Jimmy Choo brand intangible assets. (4)The change in the carrying value since March 30, 2024 reflects and impairment charge of $216 million and the impact of foreign currency translation adjustments. As of December 28, 2024, the Company had accumulated impairment charges of $443 million related to its Versace brand intangible assets. Amortization expense for the Company’s definite-lived intangible assets was $11 million and $34 million, respectively, for the three and nine months ended December 28, 2024. Amortization expense for the Company’s definite-lived intangible assets was $11 million and $33 million, respectively, for the three and nine months ended December 30, 2023. Estimated amortization expense for each of the next five years is as follows (in millions):
Remainder of Fiscal 2025 | $ | 10 |
Fiscal 2026 | 41 |
Fiscal 2027 | 41 |
Fiscal 2028 | 41 |
Fiscal 2029 | 41 |
Fiscal 2030 and thereafter | 290 |
Total | $ | 464 |
The future amortization expense above reflects weighted-average estimated remaining useful lives of sixteen years for reacquired rights and nine years for customer relationships.

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

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration