Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 29, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 29, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CAPRI HOLDINGS LTD | |
Entity Central Index Key | 1,530,721 | |
Current Fiscal Year End Date | --03-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 150,708,513 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 264.5 | $ 163.1 |
Receivables, net | 291.2 | 290.5 |
Inventories | 764.7 | 660.7 |
Prepaid expenses and other current assets | 2,119.1 | 147.8 |
Total current assets | 3,439.5 | 1,262.1 |
Property and equipment, net | 543.6 | 583.2 |
Intangible assets, net | 1,132.9 | 1,235.7 |
Goodwill | 780 | 847.7 |
Deferred tax assets | 47.2 | 56.2 |
Other assets | 85.2 | 74.1 |
Total assets | 6,028.4 | 4,059 |
Current liabilities | ||
Accounts payable | 329 | 294.1 |
Accrued payroll and payroll related expenses | 99.2 | 93 |
Accrued income taxes | 22.5 | 77.6 |
Short-term debt | 579.4 | 200 |
Accrued expenses and other current liabilities | 357.3 | 295.6 |
Total current liabilities | 1,387.4 | 960.3 |
Deferred rent | 130.6 | 128.4 |
Deferred tax liabilities | 181.6 | 186.3 |
Long-term debt | 1,954.7 | 674.4 |
Other long-term liabilities | 107 | 88.1 |
Total liabilities | 3,761.3 | 2,037.5 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Ordinary shares, no par value; 650,000,000 shares authorized; 213,432,129 shares issued and 148,313,496 outstanding at December 29, 2018; 210,991,091 shares issued and 149,698,407 outstanding at March 31, 2018 | 0 | 0 |
Treasury shares, at cost (65,118,633 shares at December 29, 2018 and 61,292,684 shares at March 31, 2018) | (3,223.1) | (3,015.9) |
Additional paid-in capital | 892.4 | 831.1 |
Accumulated other comprehensive (loss) income | (92.9) | 50.5 |
Retained earnings | 4,687.3 | 4,152 |
Total shareholders’ equity of Capri | 2,263.7 | 2,017.7 |
Noncontrolling interest | 3.4 | 3.8 |
Total shareholders’ equity | 2,267.1 | 2,021.5 |
Total liabilities and shareholders’ equity | $ 6,028.4 | $ 4,059 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 650,000,000 | 650,000,000 |
Ordinary shares, shares issued (in shares) | 213,432,129 | 210,991,091 |
Ordinary shares, shares outstanding (in shares) | 148,313,496 | 149,698,407 |
Treasury shares (in shares) | 65,118,633 | 61,292,684 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Income Statement [Abstract] | |||||
Total revenue | $ 1,438 | $ 1,440.1 | $ 3,894.3 | $ 3,539.1 | |
Cost of goods sold | 564.8 | 556.1 | 1,507.2 | 1,389.6 | |
Gross profit | 873.2 | 884 | 2,387.1 | 2,149.5 | |
Selling, general and administrative expenses | 506.1 | 485.9 | 1,466 | 1,267.4 | |
Depreciation and amortization | 51.5 | 54 | 160.1 | 149.9 | |
Impairment of long-lived assets | 5.9 | 2.6 | 17.2 | 18.9 | |
Restructuring and other charges | [1] | 19.7 | 28 | 49.2 | 51.3 |
Total operating expenses | 583.2 | 570.5 | 1,692.5 | 1,487.5 | |
Income from operations | 290 | 313.5 | 694.6 | 662 | |
Other income, net | (1.4) | (0.1) | (3.7) | (1) | |
Interest expense, net | 7.7 | 8.3 | 21.1 | 10.2 | |
Foreign currency loss (gain) | 42.6 | 27 | 78.5 | (14.7) | |
Income before provision for income taxes | 241.1 | 278.3 | 598.7 | 667.5 | |
Provision for income taxes | 41.7 | 58.9 | 76 | 119.9 | |
Net income | 199.4 | 219.4 | 522.7 | 547.6 | |
Less: Net loss attributable to noncontrolling interest | (0.2) | 0 | (0.9) | (0.2) | |
Net income attributable to Capri | $ 199.6 | $ 219.4 | $ 523.6 | $ 547.8 | |
Weighted average ordinary shares outstanding: | |||||
Weighted average ordinary shares outstanding, basic (in shares) | 149,183,049 | 152,047,963 | 149,420,087 | 152,772,067 | |
Weighted average ordinary shares outstanding, diluted (in shares) | 150,268,424 | 154,623,339 | 151,457,921 | 155,220,984 | |
Net income per ordinary share attributable to Capri: | |||||
Net income per ordinary share, basic (in dollars per share) | $ 1.34 | $ 1.44 | $ 3.50 | $ 3.59 | |
Net income per ordinary share, diluted (in dollars per share) | $ 1.33 | $ 1.42 | $ 3.46 | $ 3.53 | |
Statements of Comprehensive Income: | |||||
Net income | $ 199.4 | $ 219.4 | $ 522.7 | $ 547.6 | |
Foreign currency translation adjustments | (31.7) | 41.6 | (159.9) | 78.7 | |
Net gain (loss) on derivatives | 1.7 | (0.3) | 16.4 | (16.4) | |
Comprehensive income | 169.4 | 260.7 | 379.2 | 609.9 | |
Less: Net loss attributable to noncontrolling interest | (0.2) | 0 | (0.9) | (0.2) | |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | 0 | 0.1 | (0.1) | 0.1 | |
Comprehensive income attributable to Capri | $ 169.6 | $ 260.6 | $ 380.2 | $ 610 | |
[1] | Restructuring and other charges includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan (as defined in Note 9) and other restructuring initiatives, and transaction and transition costs recorded in connection with the acquisitions of Jimmy Choo Group Limited and Gianni Versace S.r.l. |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity of Capri | Non-controlling Interests |
Beginning balance at Apr. 01, 2017 | $ (80.6) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 547.6 | |||||||
Other comprehensive loss | 62.2 | |||||||
Comprehensive income | 609.9 | |||||||
Ending balance at Dec. 30, 2017 | (18.4) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards | 11.7 | $ 11.7 | $ 11.7 | |||||
Balance as of April 1, 2018 | $ 2,033.2 | $ 831.1 | $ (3,015.9) | 50.5 | 4,163.7 | 2,029.4 | $ 3.8 | |
Beginning balance (in shares) at Mar. 31, 2018 | 210,991,091 | 210,991,000 | ||||||
Beginning balance (in shares) at Mar. 31, 2018 | (61,292,684) | (61,293,000) | ||||||
Beginning balance at Mar. 31, 2018 | $ 2,021.5 | $ 0 | 831.1 | $ (3,015.9) | 50.5 | 4,152 | 2,017.7 | 3.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 522.7 | 523.6 | 523.6 | (0.9) | ||||
Other comprehensive loss | (143.5) | (143.4) | (143.4) | (0.1) | ||||
Comprehensive income | 379.2 | 380.2 | (1) | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 781,000 | |||||||
Exercises of employee share options (in shares) | 1,660,000 | |||||||
Exercise of employee share options | 23 | 23 | 23 | |||||
Equity compensation expense | 38.3 | 38.3 | 38.3 | |||||
Purchase of treasury shares (in shares) | (3,826,000) | |||||||
Purchase of treasury shares | (207.2) | $ (207.2) | (207.2) | |||||
Increase in noncontrolling interest | $ 0.6 | 0.6 | ||||||
Ending balance (in shares) at Dec. 29, 2018 | 213,432,129 | 213,432,000 | ||||||
Ending balance (in shares) at Dec. 29, 2018 | (65,118,633) | 65,119,000 | ||||||
Ending balance at Dec. 29, 2018 | $ 2,267.1 | $ 0 | $ 892.4 | $ (3,223.1) | $ (92.9) | $ 4,687.3 | $ 2,263.7 | $ 3.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 522.7 | $ 547.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 160.1 | 149.9 |
Equity compensation expense | 38.3 | 29.6 |
Deferred income taxes | 12.1 | 33.1 |
Impairment of long-lived assets | 17.2 | 18.9 |
Tax benefit on exercise of share options | (24.1) | (0.2) |
Amortization of deferred financing costs | 2.6 | 2.5 |
Foreign currency losses (gains) | 78.5 | (14.7) |
Other non-cash charges | 2 | 2.6 |
Change in assets and liabilities: | ||
Receivables, net | (8.6) | 17.1 |
Inventories | (127.1) | 20.8 |
Prepaid expenses and other current assets | (51.1) | 31.9 |
Accounts payable | 52 | (21.4) |
Accrued expenses and other current liabilities | 75.1 | 54.6 |
Other long-term assets and liabilities | 26 | 1 |
Net cash provided by operating activities | 775.7 | 873.3 |
Cash flows from investing activities | ||
Capital expenditures | (134.7) | (83.8) |
Purchase of intangible assets | (1.7) | (3.2) |
Cash paid for business acquisitions, net of cash acquired | (1.8) | (1,414.5) |
Realized (loss) gain on hedge related to acquisitions | (77.4) | 4.7 |
Net cash used in investing activities | (215.6) | (1,496.8) |
Cash flows from financing activities | ||
Debt borrowings | 3,597.2 | 2,078.8 |
Debt repayments | (1,926.3) | (1,222.1) |
Debt issuance costs | (15) | 0 |
Repurchase of treasury shares | (207.2) | (161) |
Exercise of employee share options | 23 | 5.5 |
Other financing activities | 0 | (0.2) |
Net cash provided by financing activities | 1,471.7 | 701 |
Effect of exchange rate changes on cash and cash equivalents | (9.1) | 10.3 |
Net increase in cash and cash equivalents and restricted cash | 2,022.7 | 87.8 |
Beginning of period (including restricted cash of $0.3 million at March 31, 2018 and $1.9 million at April 1, 2017) | 163.4 | 229.6 |
End of period (including restricted cash of $1,921.6 million and $0.3 million, respectively, at December 29, 2018 and December 30, 2017) | 2,186.1 | 317.4 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 23.7 | 6.5 |
Cash paid for income taxes | 128 | 85 |
Supplemental disclosure of non-cash investing and financing activities | ||
Accrued capital expenditures | $ 23.1 | $ 22 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Apr. 01, 2017 |
Statement of Cash Flows [Abstract] | ||||
Restricted Cash | $ 1,921.6 | $ 0.3 | $ 0.3 | $ 1.9 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation The Company was incorporated in the British Virgin Islands (“BVI”) on December 13, 2002 as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited (“Capri,” and together with its subsidiaries, the “Company”) on December 31, 2018. The Company is a holding company that owns brands that are leading designers, marketers, distributors and retailers of branded women’s and men’s accessories, apparel and footwear bearing the Versace, Jimmy Choo and Michael Kors tradenames and related trademarks and logos. The Company’s business consists of four reportable segments: Michael Kors (“MK”) Retail, MK Wholesale, MK Licensing and Jimmy Choo. See Note 18 for additional information. On November 1, 2017, the Company completed the acquisition of Jimmy Choo Group Limited (“Jimmy Choo”) for a total transaction value of $1.447 billion . As a result, the Company has consolidated Jimmy Choo into its operations beginning on November 1, 2017, as a separate reporting segment. On December 31, 2018, the Company acquired all outstanding equity interests of Gianni Versace S.r.l. (“Versace”). See Note 4 and Note 20 for additional information. The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of December 29, 2018 and for the three and nine months ended December 29, 2018 and December 30, 2017 are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 31, 2018 , as filed with the Securities and Exchange Commission on May 30, 2018, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year. The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three and nine months ended December 29, 2018 and December 30, 2017 , are based on 13-week and 39-week periods, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates related to the Company’s customer loyalty program for Michael Kors, estimates of gift card breakage, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the valuation of and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. Seasonality The Company experiences certain effects of seasonality with respect to its business. The Company’s MK Retail segment generally experiences greater sales during its third fiscal quarter as a result of holiday season sales. The MK Wholesale segment generally experiences the lowest sales in its first fiscal quarter. The Jimmy Choo segment generally experiences greater sales during its first and third fiscal quarters, primarily driven by the product launch calendar and holiday season sales. In the aggregate, the Company’s first fiscal quarter typically experiences less sales volume relative to the other three quarters and its third fiscal quarter generally has higher sales volume relative to the other three quarters. Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. In connection with the September 24, 2018 definitive agreement to acquire all of the outstanding shares of Versace, the Company entered into forward foreign currency exchange contracts with notional amounts totaling €1.680 billion (approximately $2.001 billion ) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which were settled on December 21, 2018. Likewise, in connection with the July 25, 2017 cash offer to acquire Jimmy Choo, the Company entered into a forward foreign currency exchange contract with a notional amount of £1.115 billion (approximately $1.469 billion ) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which was settled on October 30, 2017. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value are recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments in the same category as the cash flows from the items being hedged. Accordingly, during the nine months ended December 29, 2018 and December 30, 2017 , the Company classified $77.4 million of realized losses and $4.7 million of realized gains, respectively, relating to these derivative instruments within cash flows from investing activities. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income (loss) until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income (loss) are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months . The period of these contracts is directly related to the foreign transaction they are intended to hedge. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between our U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, as defined below, and has designated these contracts as net investment hedges. The net gain or loss on net investment hedged is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest expense in the Company’s statement of operations and comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the hedged net investment is sold, diluted, or liquidated. Net Income per Share The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units (“RSUs”), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included in diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method. The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Numerator: Net income attributable to Capri $ 199.6 $ 219.4 $ 523.6 $ 547.8 Denominator: Basic weighted average shares 149,183,049 152,047,963 149,420,087 152,772,067 Weighted average dilutive share equivalents: Share options and restricted shares/units, and performance restricted share units 1,085,375 2,575,376 2,037,834 2,448,917 Diluted weighted average shares 150,268,424 154,623,339 151,457,921 155,220,984 Basic net income per share $ 1.34 $ 1.44 $ 3.50 $ 3.59 Diluted net income per share $ 1.33 $ 1.42 $ 3.46 $ 3.53 During the three and nine months ended December 29, 2018 , share equivalents of 2,022,564 shares and 1,117,277 shares, respectively, have been excluded from the above calculations due to their anti-dilutive effect. Share equivalents of 2,243,436 shares and 2,503,782 shares, respectively, have been excluded from the above calculations during the three and nine months ended December 30, 2017 . See Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for a complete disclosure of the Company’s significant accounting policies. Recently Adopted Accounting Pronouncements Hedge Accounting On August 28, 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ” The new standard is intended to improve and simplify rules relating to hedge accounting, including the elimination of periodic hedge ineffectiveness, recognition and presentation of components excluded from hedge effectiveness assessment, the ability to elect to perform subsequent effectiveness assessments qualitatively, and other provisions designed to provide more transparency around the economics of a company’s hedging strategy. ASU 2017-12 is effective for the Company in Fiscal 2020, with early adoption permitted. The Company adopted ASU 2017-12 during the three months ended June 30, 2018, which resulted in a net increase to opening retained earnings of less than $0.1 million as of April 1, 2018, due to the elimination of ineffectiveness for cash flow hedges in effect as of the date of adoption. The Company has applied the spot method of designating its net investment hedges, which were executed during the nine months ended December 29, 2018 . Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” which provides new guidance for revenues recognized from contracts with customers, requiring that revenue is recognized at an amount the Company is entitled to upon transferring control of goods or services to customers, as opposed to when risks and rewards transfer to a customer. In July 2015, ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ” deferred the effective date of ASU 2014-09 by one year, to interim reporting periods within the annual reporting period beginning after December 15, 2017, or the first quarter of the Company’s Fiscal 2019. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption (“modified retrospective method”). The FASB issued several additional ASUs to provide implementation guidance on ASU 2014-09, including ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ” in December 2016; ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ” in May 2016; ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ” in April 2016; and ASU 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” in March 2016. The Company considered this guidance in evaluating the impact of ASU 2014-09 (collectively, “ASC 606”). On April 1, 2018, the Company adopted ASC 606 using the modified retrospective method and recognized the $6.7 million (net of a tax of $1.7 million ) cumulative effect of adoption as an adjustment to the opening balance of retained earnings. The below table details the components of the cumulative adjustment recorded on April 1, 2018 (in millions): March 31, 2018 ASC 606 Adjustments April 1, 2018 Receivables, net $ 290.5 $ 3.8 (1) $ 294.3 Accrued expenses and other current liabilities 295.6 (4.6 ) (2) 291.0 Deferred tax liabilities 186.3 1.7 (3) 188.0 Retained earnings 4,152.0 6.7 4,158.7 (1) Includes a $3.5 million adjustment related to product licensing revenue, which was previously recorded on a one-month lag and $0.3 million of guaranteed advertising minimums recognized by product licensees on a straight-line basis over the contract year. (2) Relates to recognition of breakage revenue associated with gift card liabilities not subject to escheatment. (3) Relates to income tax effect of the above adjustments. In addition, while the Company has previously recorded the right of return asset and liability on a gross basis, in connection with its adoption of ASC 606, it has reclassified the return liability of $16.2 million from receivables, net to accrued expenses and other current liabilities in its consolidated balance sheets as of December 29, 2018 . Otherwise, the adoption of this standard did not have a material impact on the Company's consolidated financial statements as of and for the three and nine months ended December 29, 2018 , or any individual line items therein. See Note 3 for additional disclosures related to the Company’s revenue recognition accounting policy. Share-Based Compensation In May 2017, the FASB issued ASU 2017-09, “ Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ”, which simplifies modification accounting for entities that change the terms or conditions of share-based awards. ASU 2017-09 was adopted during the first quarter of Fiscal 2019, as required, on a prospective basis. The adoption of this standard did not have an impact on the Company's consolidated financial statements. The Company will apply ASU 2017-09 to any future changes to the terms and conditions of its share-based compensation awards. Income Taxes In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ”, which requires recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted ASU 2016-16 in the beginning of Fiscal 2019, as required, using the modified retrospective method. On April 1, 2018, the Company recorded the $4.9 million cumulative effect of adoption as an adjustment to the opening balance of retained earnings. Recently Issued Accounting Pronouncements We have considered all new accounting pronouncements and, other than the recent pronouncements discussed below, have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition or cash flows based on current information. Lease Accounting In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842), ” which requires lessees to recognize a lease liability and a right-to-use asset on the balance sheet for all leases, except certain short-term leases. ASU 2016-02 is effective beginning with the Company’s Fiscal 2020, with early adoption permitted. The Company plans to apply the package of three practical expedients, allowing it to carry forward its previous lease classification and embedded lease evaluations and not to reassess initial direct costs as of the date of adoption, as well as the practical expedient allowing it to combine lease and non-lease components. The Company also plans on adopting the practical expedient from ASU 2018-11, “ Leases (Topic 842): Targeted Improvements, ” allowing it to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods . The Company's existing lease obligations, which relate to stores, corporate locations, warehouses, and equipment, will be subject to the new standard and will result in recording a lease liability and right-to-use asset for operating leases on the Company's consolidated balance sheet. Accordingly, adoption of this standard is expected to significantly increase the Company's total assets and total liabilities. The FASB has issued several additional ASUs to provide implementation guidance relating to ASU 2016-02, including ASU 2018-01, “ Land Easement Practical Expedient for Transition to Topic 842 ” in January 2018, ASU 2018-10, “ Codification Improvements to Topic 842, Leases ” and ASU 2018-11, “ Leases (Topic 842): Targeted Improvements, ” both issued in July 2018, and ASU 2018-20, “ Leases (Topic 842) - Narrow-Scope Improvements for Lessors ” issued in December 2018. The Company will consider this guidance in evaluating the impact of ASU 2016-02. Intangibles In August 2018, the FASB issued ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, ” which reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether or not the contract conveys a license to the hosted software. ASU 2018-15 is effective beginning with the Company’s Fiscal 2021, with early adoption permitted, and can either be presented prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2018-15 on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to Michael Kors and Jimmy Choo trademarks. The Company has chosen to apply the practical expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations that have an expected duration of 12 months or less. Retail Michael Kors generates sales through four primary retail store formats: “Collection” stores, “Lifestyle” stores, outlet stores and e-commerce. Michael Kors sells its own products and licensed products bearing the Michael Kors name, directly to the end consumer throughout the Americas (U.S., Canada and Latin America, excluding Brazil), Europe and certain parts of Asia. Jimmy Choo generates sales through directly operated stores and e-commerce throughout the Americas, EMEA (Europe, Middle East, and Africa) and certain parts of Asia. In addition to these retail formats, the Company operates concessions in a select number of department stores. Retail revenue is recognized when control of the product is transferred at the point of sale at Company owned stores, including concessions. For e-commerce transactions, control is transferred when products are delivered to the customer, net of estimated returns. To arrive at net sales for retail, gross sales are reduced by actual customer returns, as well as by a provision for estimated future customer returns. Sales taxes collected from retail customers are presented on a net basis and, as such, are excluded from revenue. Shipping and handling costs that are billed to customers are included in net sales, with the related costs recorded in cost of goods sold. Shipping and handling costs that are not billed to customers are accounted for as fulfillment costs. Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability recorded upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The Company anticipates that substantially all of its outstanding gift cards will be redeemed within the next 12 months. The contract liability related to gift cards, net of estimated “breakage,” was $11.8 million as of December 29, 2018 , and is included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program . The Company offers a loyalty program, which allows its Michael Kors customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” of $7.5 million as of December 29, 2018 is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheet and is expected to be recognized within the next 12 months. Wholesale Michael Kors products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. Jimmy Choo luxury products are sold throughout North America, EMEA, and certain parts of Asia. The Company also has arrangements where Michael Kors and Jimmy Choo products are sold to our geographic licensees in certain parts of EMEA and Asia, as well as in Brazil. Products sold through the wholesale channel include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, after merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, as well as trade discounts, markdowns, allowances, operational chargebacks, and certain cooperative selling expenses. These estimates are developed based on the most likely amount using historical trends, actual and forecasted performance and market conditions, and are reviewed by management on a quarterly basis. Unfulfilled, noncancelable purchase orders for products from wholesale customers (including the Company’s geographic licensees) are expected to be fulfilled within the next 12 months. Licensing The Company provides its third-party licensees with the right to access its Michael Kors and Jimmy Choo trademarks under product and geographic licensing arrangements. Under product licensing arrangements, the Company allows third parties to manufacture and sell luxury goods, including watches and jewelry, fragrances, sunglasses and eyewear, using the Company’s trademarks. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company's trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa, certain parts of Asia and Australia. The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Advertising contributions are received to support the Company’s branded advertising and marketing campaigns and are viewed as part of a single performance obligation with the right to access the Company’s trademarks. Royalty revenue generated from licenses, which includes contributions for advertising, may be subject to contractual minimum levels, as defined in the contract. Such minimums are generally fixed annually, based on the previous year’s sales. Licensing revenue is based on reported current period sales of licensed products at rates that are specified in the license agreements for contracts that are expected to exceed the related guaranteed minimums. If the Company expects the minimum guaranteed amounts to exceed amounts calculated based on actual sales, the guaranteed minimums are recognized ratably over the contractual year to which they relate. As of December 29, 2018 , guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months. Sales Returns For the sale of goods with a right of return, the Company recognizes revenue for the consideration to which it expects to be entitled and a refund liability for the amount it expects to refund to its customers within accrued expenses and other current liabilities. The refund liability is determined based on the most likely amount and is based on management’s review of historical and current customer returns for its retail and wholesale customers, estimated future returns, adjusted for non-resalable products. The Company also considers its product strategies, as well as the financial condition of its customers, store closings by wholesale customers, changes in the retail environment and other macroeconomic factors. The Company recognizes an asset with a corresponding adjustment to cost of sales for the right to recover the products from its retail and wholesale customers, net of any costs to resell. The refund liability recorded as of December 29, 2018 was $42.1 million and the related asset for the right to recover returned product as of December 29, 2018 was $11.5 million . Contract Balances The Company’s contract liabilities, which are recorded within accrued expenses and other current liabilities in its consolidated balance sheets, primarily consist of gift card liabilities, loyalty program liabilities and advanced payments from product licensees. Total contract liabilities were $25.1 million and $23.3 million as of December 29, 2018 and March 31, 2018 , respectively. Contract liabilities decreased $4.6 million as a result of the adoption of ASC 606 on April 1, 2018 , due to recognition of gift card breakage revenue (see Note 2 ). For three and nine months ended December 29, 2018 , the Company recognized $2.3 million and $13.6 million , respectively, in revenue which related to contract liabilities that existed at March 31, 2018 . There were no contract assets recorded as of December 29, 2018 and April 1, 2018 . There were no changes in historical variable consideration estimates that were materially different from actual results. Disaggregation of Revenue The following table presents the Company’s segment revenues disaggregated by geographic location (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, MK Retail revenue - the Americas $ 557.1 $ 558.0 $ 1,354.2 $ 1,335.6 MK Retail revenue - Europe 163.9 168.0 422.6 444.3 MK Retail revenue - Asia 117.0 120.3 344.6 331.3 Total MK Retail 838.0 846.3 2,121.4 2,111.2 MK Wholesale revenue - the Americas 311.4 338.2 940.8 905.8 MK Wholesale revenue - EMEA (1) 66.3 81.2 215.6 250.7 MK Wholesale revenue - Asia 17.2 11.4 59.1 41.5 Total MK Wholesale 394.9 430.8 1,215.5 1,198.0 MK Licensing revenue - the Americas 29.2 29.4 67.6 70.2 MK Licensing revenue - EMEA (1) 14.3 18.9 38.8 45.0 Total MK Licensing 43.5 48.3 106.4 115.2 Total Michael Kors 1,276.4 1,325.4 3,443.3 3,424.4 Jimmy Choo revenue - the Americas 29.1 21.0 75.1 21.0 Jimmy Choo revenue - EMEA (1) 89.7 65.0 248.2 65.0 Jimmy Choo revenue - Asia 42.8 28.7 127.7 28.7 Total Jimmy Choo 161.6 114.7 451.0 114.7 Total revenue - the Americas 926.8 946.6 2,437.7 2,332.6 Total revenue - EMEA (1) 334.2 333.1 925.2 805.0 Total revenue - Asia 177.0 160.4 531.4 401.5 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 (1) EMEA is comprised of Europe, the Middle East and Africa. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Jimmy Choo Group Limited On November 1, 2017, the Company completed the acquisition of Jimmy Choo, whereby the Company acquired all of Jimmy Choo’s issued and to be issued shares at a purchase price of 230 pence per share in cash, for a total transaction value of $1.447 billion , including the repayment of existing debt obligations, which was funded through a combination of borrowings under the Company’s previous $1.0 billion term loan facility and the issuance of the Senior Notes, as defined in Note 10 . Jimmy Choo’s results of operations have been included in our consolidated financial statements beginning on November 1, 2017. Jimmy Choo contributed revenue of $161.6 million and $451.0 million , respectively, and net income (after amortization of non-cash purchase accounting adjustments and transition costs) of $3.6 million and $0.6 million , respectively, for the three and nine months ended December 29, 2018 . For the period from the date of acquisition through December 30, 2017 , Jimmy Choo contributed revenue of $114.7 million and net income (after amortization of non-cash purchase accounting adjustments and transition costs) of $8.1 million . The following table summarizes the unaudited pro-forma consolidated results of operations for the three and nine months ended December 30, 2017 as if the acquisition had occurred on April 3, 2016, the beginning of Fiscal 2017 (in millions): Three Months Ended Nine Months Ended December 30, 2017 December 30, 2017 Pro-forma total revenue $ 1,478.5 $ 3,832.6 Pro-forma net income 242.8 574.2 Pro-forma net income per ordinary share attributable to Capri: Basic $ 1.60 $ 3.76 Diluted $ 1.57 $ 3.70 The unaudited pro-forma consolidated results above are based on the historical financial statements of the Company and Jimmy Choo and are not necessarily indicative of the results of operations that would have been achieved if the acquisition was completed at the beginning of Fiscal 2017 and are not indicative of the future operating results of the combined company. The financial information for Jimmy Choo prior to the acquisition has been included in the pro-forma results of operations on a calendar-year basis and includes certain adjustments to Jimmy Choo’s historical consolidated financial statements to align with U.S. GAAP and the Company's accounting policies. The pro-forma consolidated results of operations also include the effects of purchase accounting adjustments, including amortization charges related to the finite-lived intangible assets acquired, fair value adjustments relating to leases and fixed assets, and the related tax effects assuming that the business combination occurred on April 3, 2016. Purchase accounting amortization of the inventory step-up adjustment has been excluded from the above pro-forma amounts due to the short-term nature of this adjustment. The pro-forma consolidated financial statement also reflects the impact of debt repayment and borrowings made to finance the acquisition and exclude historical interest expense for Jimmy Choo. Transaction costs of $22.2 million and $39.6 million for the three and nine months ended December 30, 2017, which have been recorded within restructuring and other charges in the Company’s consolidated statements of operations and comprehensive income, have been excluded from the above pro-forma consolidated results of operations due to their non-recurring nature. See Note 20 for additional information related to the Company’s acquisition of Versace, as well as Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for additional disclosures relating to the Company’s acquisitions. |
Receivables, net
Receivables, net | 9 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net, consist of (in millions): December 29, March 31, Trade receivables (1) $ 364.7 $ 383.3 Receivables due from licensees 34.5 15.8 399.2 399.1 Less: allowances (108.0 ) (108.6 ) $ 291.2 $ 290.5 (1) As of December 29, 2018 and March 31, 2018 , $261.6 million and $296.2 million , respectively, of trade receivables were insured. Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Allowances are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues. The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowance for doubtful accounts was $6.0 million and $5.1 million , respectively, as of December 29, 2018 and March 31, 2018 . The Company had provisions for bad debt of $0.3 million and $1.3 million for the three months ended December 29, 2018 and December 30, 2017 , respectively, and $1.3 million and $5.7 million for the nine months ended December 29, 2018 and December 30, 2017 , respectively. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, consists of (in millions): December 29, March 31, Leasehold improvements $ 582.7 $ 551.0 Furniture and fixtures 276.9 270.9 Computer equipment and software 275.3 266.3 In-store shops 269.7 273.9 Equipment 119.6 116.7 Building 43.2 51.6 Land 15.0 16.2 1,582.4 1,546.6 Less: accumulated depreciation and amortization (1,083.0 ) (1,001.6 ) 499.4 545.0 Construction-in-progress 44.2 38.2 $ 543.6 $ 583.2 Depreciation and amortization of property and equipment for the three months ended December 29, 2018 and December 30, 2017 was $44.1 million and $46.9 million , respectively, and was $136.1 million and $132.7 million , respectively, for the nine months ended December 29, 2018 and December 30, 2017 . During the three and nine months ended December 29, 2018 , the Company recorded fixed asset impairment charges of $5.9 million and $15.3 million , respectively, of which $5.4 million and $13.5 million , respectively, were related to underperforming Michael Kors retail store locations, some of which will be closed as part of the Company’s previously announced Retail Fleet Optimization Plan, as defined in Note 9 . Fixed asset impairment charges recorded during the three and nine months ended December 29, 2018 , also included $0.5 million and $1.8 million , respectively, related to Jimmy Choo retail store locations. During the three and nine months ended December 30, 2017 , the Company recorded fixed asset impairment charges of $2.6 million and $14.5 million , respectively, which were related to underperforming Michael Kors retail store locations, some of which related to the Retail Fleet Optimization Plan. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Dec. 29, 2018 | |
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): December 29, March 31, Definite-lived intangible assets: Reacquired Rights $ 400.4 $ 400.4 Trademarks 23.0 23.0 Lease Rights 71.6 80.1 Customer Relationships 210.2 (1) 231.3 Total definite-lived intangible assets 705.2 734.8 Less: accumulated amortization (129.4 ) (113.2 ) Net definite-lived intangible assets 575.8 621.6 Indefinite-lived intangible assets: Jimmy Choo brand 557.1 (1) 614.1 Total intangible assets, excluding goodwill $ 1,132.9 $ 1,235.7 Goodwill $ 780.0 (1) $ 847.7 (1) The change in the carrying values since March 31, 2018 reflects currency translation. Amortization expense for the Company’s definite-lived intangible assets for the three months ended December 29, 2018 and December 30, 2017 was $7.4 million and $7.1 million , respectively, and was $24.0 million and $17.2 million , respectively, for the nine months ended December 29, 2018 and December 30, 2017 . During the nine months ended December 29, 2018 , the Company recorded impairment charges of $1.9 million relating to its intangible assets within MK Retail segment. For the nine months ended December 30, 2017 , the Company recorded impairment charges of $4.4 million relating to its intangible assets (See Note 12 for further information). There were no goodwill impairment charges recorded during any of the periods presented. |
Current Assets and Current Liab
Current Assets and Current Liabilities | 9 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Current Assets and Current Liabilities | Current Assets and Current Liabilities Prepaid expenses and other current assets consist of the following (in millions): December 29, March 31, Restricted Cash $ 1,921.6 (1) $ 0.3 Prepaid taxes $ 114.8 $ 78.5 Prepaid rent 23.0 22.7 Leasehold incentive receivable 10.9 9.4 Unrealized gains on forward foreign currency exchange contracts 5.3 — Prepaid duties — 7.0 Other 43.5 29.9 $ 2,119.1 $ 147.8 (1) Primarily consists of cash placed in escrow in connection with the acquisition of Versace, which was paid on December 31, 2018. Accrued expenses and other current liabilities consist of the following (in millions): December 29, March 31, Other taxes payable $ 63.2 $ 54.3 Accrued rent 46.3 34.5 Return liabilities 42.1 12.1 Restructuring liability 38.3 44.8 Accrued capital expenditures 23.1 26.4 Professional services 21.1 14.1 Accrued advertising and marketing 16.3 22.6 Gift cards and retail store credits 11.8 16.0 Accrued samples 10.0 2.5 Deferred loyalty program liabilities 7.5 2.2 Accrued interest 5.8 8.7 Advance royalties 5.8 4.1 Deferred income 3.3 4.3 Unrealized loss on forward foreign currency exchange contracts 0.2 7.7 Other 62.5 41.3 $ 357.3 $ 295.6 |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Retail Fleet Optimization Plan On May 31, 2017, the Company announced that it plans to close between 100 and 125 of its Michael Kors retail stores in order to improve the profitability of its retail store fleet (“Retail Fleet Optimization Plan”). The Company anticipates finalizing the remainder of the planned store closures under the Retail Fleet Optimization Plan by the end of Fiscal 2020. The Company expects to incur approximately $100 - $125 million of one-time costs associated with these store closures. Collectively, the Company anticipates ongoing annual savings of approximately $60 million as a result of store closures and lower depreciation and amortization expense as a result of the impairment charges recorded once these initiatives are completed. During the nine months ended December 29, 2018 , the Company closed 24 of its Michael Kors retail stores under the Retail Fleet Optimization Plan, for a total of 71 stores closed since plan inception. Restructuring charges recorded in connection with the Retail Fleet Optimization Plan during the three and nine months ended December 29, 2018 were $4.1 million and $9.5 million , respectively. The below table presents a summary of charges recorded in connection with this plan for the MK Retail segment and the Company’s remaining restructuring liability (in millions): Severance and benefit costs Lease-related costs Total Balance at March 31, 2018 $ 0.2 $ 44.6 $ 44.8 Additions charged to expense 0.2 9.3 9.5 Balance sheet reclassifications (1) — 2.1 2.1 Payments (0.3 ) (20.7 ) (21.0 ) Balance at December 29, 2018 $ 0.1 $ 35.3 $ 35.4 (1) Primarily consists of reclassification of deferred rent for locations subject to closure to a restructuring liability. During the three months ended December 30, 2017 , the Company recorded restructuring charges of $2.4 million under the Retail Fleet Optimization Plan relating to lease-related charges. During the nine months ended December 30, 2017 , the Company recorded restructuring charges of $8.3 million under the Retail Fleet Optimization Plan, which were comprised of lease-related charges of $7.7 million and severance and benefit costs of $0.6 million . Other Restructuring Charges In addition to the restructuring charges related to the Retail Fleet Optimization Plan, the Company incurred charges of $3.4 million and $4.4 million , respectively, relating to Jimmy Choo lease-related charges during the three and nine months ended December 29, 2018 . Transaction and Transition Costs During the three months ended December 29, 2018 , the Company recorded transaction and transition costs of $12.2 million , which included $6.3 million in connection with the Jimmy Choo acquisition and $5.9 million in connection with the acquisition of Versace. During the nine months ended December 29, 2018 , the Company recorded transaction and transition costs of $35.3 million , which included $20.2 million in connection with the Jimmy Choo acquisition and $15.1 million in connection with the acquisition of Versace. During the three and nine months ended December 30, 2017 , the Company recorded transaction and transition costs of $25.6 million and $43.0 million , respectively, in connection with the Jimmy Choo acquisition. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations The following table presents the Company’s debt obligations (in millions): December 29, March 31, Term Loan (1) $ 1,600.0 $ 229.8 Revolving Credit Facilities 500.0 200.0 4.000% Senior Notes due 2024 450.0 450.0 Other 0.9 0.9 Total debt 2,550.9 880.7 Less: Unamortized debt issuance costs 15.0 4.2 Less: Unamortized discount on long-term debt 1.8 2.1 Total carrying value of debt 2,534.1 874.4 Less: Short-term debt 579.4 200.0 Total long-term debt $ 1,954.7 $ 674.4 (1) During the three months ended December 29, 2018 , the Company repaid the remaining $59.0 million of borrowings outstanding under the previous Term Loan Facility entered into in connection with the Jimmy Choo acquisition. Senior Unsecured Revolving Credit Facility On November 15, 2018, the Company entered into a third amended and restated senior unsecured credit facility (the “2018 Credit Facility”) with, among others, JPMorgan Chase Bank, N.A., as administrative agent, which replaced its prior 2017 senior unsecured revolving credit facility (the “2017 Credit Facility”). The Company and its U.S., Canadian, Dutch and Swiss subsidiaries are the borrowers under the 2018 Credit Facility. The borrowers and certain material subsidiaries of the Company provide unsecured guarantees of the 2018 Credit Facility. The 2018 Credit Facility provides for a $1.0 billion revolving credit facility (the “Revolving Credit Facility”), which may be denominated in U.S. Dollars and other currencies, including Euros, Canadian Dollars, Pounds Sterling, Japanese Yen and Swiss Francs. The Revolving Credit Facility also provides sub-facilities for the issuance of letters of credit of up to $75.0 million and swing line loans of up to $75.0 million . The 2018 Credit Facility also provides for a $1.6 billion term loan facility (the “2018 Term Loan Facility”) to finance a portion of the purchase price of the Company’s acquisition of Versace. The 2018 Term Loan Facility is divided into two tranches, an $800.0 million tranche that matures on the second anniversary of the initial borrowing of the term loans and an $800.0 million tranche that matures on the fifth anniversary of the initial borrowing of the term loans. The $800.0 million tranche that matures on the fifth anniversary is required to be repaid on the last business day of March, June, September and December of each year, commencing after the last business day of the first full fiscal quarter after the initial borrowing, in installments equal to 2.50% of the aggregate original principal amount of the term loans. The Company has the right to prepay its borrowings under the 2018 Term Loan Facility at any time in whole or in part. The Revolving Credit Facility expires on November 15, 2023. The Company has the ability to expand its borrowing availability under the 2018 Credit Facility in the form of revolving commitments or term loans by up to an additional $500.0 million , subject to the agreement of the participating lenders and certain other customary conditions. Borrowings under the Revolving Credit Facility bear interest, at the Company’s option, at the following rates: • for any loans (except loans denominated in Canadian Dollars), the greater of Adjusted LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s public debt rating; • for loans denominated in U.S. Dollars, an alternate base rate, which is the greatest of: (a) the prime rate publicly announced from time to time by JPMorgan Chase, (b) the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate and zero, plus 50 basis points, and (c) the greater of the one-month London Interbank Offered Rate adjusted for statutory reserve requirements for Eurocurrency liabilities (“Adjusted LIBOR”) and zero, plus 100 basis points, in each case, plus an applicable margin based on the Company’s public debt ratings; • for loans denominated in Canadian Dollars, the Canadian prime rate, which is the greater of the PRIMCAN Index rate and the rate applicable to one-month Canadian Dollar banker’s acceptances quoted on Reuters (“CDOR”), plus 100 basis points, plus an applicable margin based on the Company’s public debt ratings; or • for loans denominated in Canadian Dollars, the average CDOR rate for the applicable interest period, plus 10 basis points per annum, plus an applicable margin based on the Company’s public debt ratings. Borrowings under the 2018 Term Loan Facility bear interest, at the Company’s option, at (a) the alternate base rate plus an applicable margin based on the Company’s public debt ratings; or (b) the greater of Adjusted LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s public debt ratings. The Revolving Credit Facility also provides for an annual administration fee and a commitment fee equal to 0.10% to 0.25% per annum, based on the Company’s public debt ratings, applied to the average daily unused amount of the Revolving Credit Facility. The 2018 Term Loan Facility provides for a commitment fee equal to 0.10% to 0.25% per annum, based on the Company’s public debt ratings, applied to the undrawn amount of the 2018 Term Loan Facility, from January 6, 2019 until the term loans are fully drawn or the commitments under the 2018 Term Loan Facility terminate or expire. Loans under the 2018 Credit Facility may be repaid and commitments may be terminated or reduced by the borrowers without premium or penalty other than the customary breakage costs with respect to loans bearing interest based on Adjusted LIBOR or the CDOR rate. The 2018 Credit Facility requires the Company to maintain a leverage ratio as of the end of each fiscal quarter of no greater than 3.75 to 1. Such leverage ratio is calculated as the ratio of the sum of total indebtedness as of the date of the measurement plus six times the consolidated rent expense for the last four consecutive fiscal quarters, to Consolidated EBITDAR (as defined below) for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined as consolidated net income plus income tax expense, net interest expense, depreciation and amortization expense, consolidated rent expense and other non-cash charges, subject to certain additions and deductions. The 2018 Credit Facility also includes covenants that limit additional indebtedness, guarantees, liens, acquisitions and other investments and cash dividends that are customary for financings of this type. As of December 29, 2018 , the Company was in compliance with all covenants related to this agreement. The 2018 Credit Facility contains events of default customary for financings of this type, including, but not limited to, payment of defaults, material inaccuracy of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy or insolvency, certain events under The Employee Retirement Income Security Act, material judgments, actual or asserted failure of any guaranty supporting the 2018 Credit Facility to be in full force and effect, and changes of control. If such an event of default occurs, the lenders under the 2018 Credit Facility would be entitled to take various actions, including, but not limited to, terminating the commitments and accelerating amounts outstanding under the 2018 Credit Facility, subject to “certain funds” limitations in connection with the transaction governing the 2018 Term Loan Facility. In connection with the acquisition of Versace, on December 21, 2018 the Company borrowed $1.6 billion in term loans under the 2018 Term Loan Facility and $350.0 million under its $1.0 billion Revolving Credit Facility provided for under the 2018 Credit Facility, to pay a portion of the acquisition consideration and other related fees and expenses. As of December 29, 2018 and March 31, 2018 , the Company had borrowings of $500.0 million and $200.0 million outstanding under the 2018 Revolving Credit Facility and its prior 2017 Revolving Credit Facility, respectively, which were recorded within short-term debt in its consolidated balance sheets. In addition, stand-by letters of credit of $17.0 million were outstanding as of December 29, 2018 . At December 29, 2018 , the amount available for future borrowings under the 2018 Revolving Credit Facility was $483.0 million . As of December 29, 2018 , the carrying value of borrowings outstanding under the 2018 Term Loan Facility was $1.588 billion , net of debt issuance costs of $11.9 million , of which $79.4 million was recorded within short-term debt and $1.509 billion was recorded within long-term debt in its consolidated balance sheets. See Note 10 to the Company’s Fiscal 2018 Annual Report on Form 10-K for additional information regarding the Company’s credit facilities and debt obligations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, the Company’s management does not believe that the outcome of all pending legal proceedings in the aggregate will have a material adverse effect on its cash flow, results of operations or financial position. Please refer to the Contractual Obligations and Commercial Commitments disclosure within the Liquidity section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for a detailed disclosure of other commitments and contractual obligations as of March 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are measured at fair value using the three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 – Valuations based on quoted inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. At December 29, 2018 and March 31, 2018 , the fair values of the Company’s forward foreign currency exchange contracts and net investment hedges were determined using broker quotations, which were calculations derived from observable market information: the applicable currency rates at the balance sheet date and those forward rates particular to the contract at inception. The Company makes no adjustments to these broker obtained quotes or prices, but assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values of the forward contracts are included in prepaid expenses and other current assets, and in accrued expenses and other current liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities to the Company. The fair values of net investment hedges are included in other assets, as detailed in Note 13 . All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions): Fair value at December 29, 2018 using: Fair value at March 31, 2018 using: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivative assets: Forward foreign currency exchange contracts $ — $ 5.3 $ — $ — $ — $ — Net investment hedges — 15.4 — — — — Total derivative assets $ — $ 20.7 $ — $ — $ — $ — Derivative liabilities: Forward foreign currency exchange contracts $ — $ 0.2 $ — $ — $ 7.7 $ — Net investment hedges — — — — — — Total derivative liabilities $ — $ 0.2 $ — $ — $ 7.7 $ — The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the short-term nature of such borrowings. See Note 10 for detailed information relating to carrying values of the Company’s outstanding debt. The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions): December 29, 2018 March 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 4.000% Senior Notes $ 445.1 $ 423.0 $ 444.5 $ 448.1 Term Loan $ 1,588.1 $ 1,595.0 $ 229.0 $ 231.2 Revolving Credit Facilities $ 500.0 $ 500.0 $ 200.0 $ 200.0 The Company’s cash and cash equivalents, accounts receivable and accounts payable, are recorded at carrying value, which approximates fair value. Non-Financial Assets and Liabilities The Company’s non-financial assets include goodwill, intangible assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible asset (Jimmy Choo brand) are assessed for impairment at least annually during the fourth quarter of each fiscal year, while its other long-lived assets, including fixed assets and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The fair values of these assets were determined based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations. The following tables detail the carrying values and fair values of the Company’s long-lived assets that have been impaired (in millions): Three Months Ended Nine Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge Fixed Assets $ 6.1 $ 0.2 $ 5.9 $ 20.3 $ 5.0 $ 15.3 Lease Rights — — — 3.4 1.5 1.9 Total $ 6.1 $ 0.2 $ 5.9 $ 23.7 $ 6.5 $ 17.2 Three Months Ended Nine Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge Fixed Assets $ 3.5 $ 0.9 $ 2.6 $ 16.9 $ 2.4 $ 14.5 Lease Rights — — — 3.6 0.2 3.4 Customer Relationships — — — 1.0 — 1.0 Total $ 3.5 $ 0.9 $ 2.6 $ 21.5 $ 2.6 $ 18.9 See Note 6 and Note 7 for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During the first quarter of Fiscal 2019, the Company early-adopted the new hedge accounting guidance prescribed by ASU 2017-12. The cumulative impact of adoption, which related to elimination of ineffectiveness for the Company’s designated forward foreign currency exchange contracts, was recorded within retained earnings as of the beginning of Fiscal 2019. See Note 2 for additional information. Forward Foreign Currency Exchange Contracts The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes. On September 24, 2018, in connection with the acquisition of Versace, the Company entered into forward foreign currency exchange contracts with a total notional amount of €1.680 billion (approximately $2.001 billion ) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition. These derivative contracts were not designated as accounting hedges and were settled on December 21, 2018 as a result of the debt issued in connection with the acquisition of Versace (see Note 10 for further information). Changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statement of operations and comprehensive income for the three and nine months ended December 29, 2018 . On July 25, 2017, in connection with the acquisition of Jimmy Choo, which closed on November 1, 2017, the Company entered into a forward foreign currency exchange contract with a notional amount of £1.115 billion (approximately $1.469 billion ) to mitigate its foreign currency exchange risk through the date of the acquisition. This derivative contract was not designated as an accounting hedge and was settled on October 30, 2017. Changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statement of operations and comprehensive income for the three and nine months ended December 30, 2017 . Net Investment Hedges During the nine months ended December 29, 2018 , the Company entered into fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $390.0 million to hedge its net investment in Euro-denominated subsidiaries and $44.0 million to hedge its net investment in Japanese Yen-denominated subsidiaries against future volatility in the exchange rates between U.S. Dollar and these currencies. Under the terms of these contracts, which mature in November 2024, the Company will exchange the semi-annual fixed rate payments made under its Senior Notes for fixed rate payments of 1.472% to 1.585% in Euros and 0.89% in Japanese Yen. These contracts have been designated as net investment hedges. When a cross-currency swap is used as a hedging instrument in a net investment hedge assessed under the spot method, the cross-currency basis spread is excluded from the assessment of hedge effectiveness and is recognized as a reduction in interest expense in the Company’s consolidated statements of operations and comprehensive income. Accordingly, the Company recorded a reduction in interest expense of $2.8 million and $6.7 million , respectively, during the three and nine months ended December 29, 2018 . The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of December 29, 2018 and March 31, 2018 (in millions): Fair Values Notional Amounts Assets Liabilities December 29, March 31, December 29, March 31, December 29, March 31, Designated forward currency exchange contracts $ 153.6 $ 161.7 $ 3.5 (1) $ — $ 0.2 (2) $ 7.7 (2) Designated net investment hedge 434.0 — 15.4 (3) — — — Total designated hedges $ 587.6 $ 161.7 $ 18.9 $ — $ 0.2 $ 7.7 Undesignated forward currency exchange contracts 20.5 — 1.8 (1) — — — Total $ 608.1 $ 161.7 $ 20.7 $ — $ 0.2 $ 7.7 ____________________________________ (1) Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. (2) Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. (3) Recorded within other assets in the Company’s consolidated balance sheets. The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheets on a gross basis, as shown in the above table. However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to setoff amounts for similar transactions denominated in the same currencies, the resulting impact as of December 29, 2018 and March 31, 2018 would be as follows (in millions): Forward Currency Exchange Contracts Net Investment Hedges December 29, March 31, December 29, March 31, Assets subject to master netting arrangements $ 5.3 $ — $ 15.4 $ — Liabilities subject to master netting arrangements $ 0.2 $ 7.7 $ — $ — Derivative assets, net $ 5.3 $ — $ 15.4 $ — Derivative liabilities, net $ 0.2 $ 7.7 $ — $ — The Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. Changes in the fair value of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income (loss), and are reclassified from accumulated other comprehensive income (loss) into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations and comprehensive income (loss). The net gain or loss on net investment hedges are reported within foreign currency translation gains and losses (“CTA”) as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Upon discontinuation of the hedge, such amounts remain in CTA until the related investment is sold or liquidated. The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions): Three Months Ended Nine Months Ended December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pre-Tax Gains Recognized in OCI Pre-Tax Loss Recognized in OCI Pre-Tax Gains Recognized in OCI Pre-Tax Loss Recognized in OCI Designated forward foreign currency exchange contracts $ 2.5 $ (2.4 ) $ 12.2 $ (17.7 ) Designated net investment hedges $ 10.8 $ — $ 15.4 $ — The following tables summarize the impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three and nine months ended December 29, 2018 and December 30, 2017 (in millions): Three Months Ended Pre-Tax (Gain) Loss Reclassified from Accumulated OCI Location of (Gain) Loss recognized Total Cost of Sales December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Designated forward currency exchange contracts $ (0.6 ) $ 2.2 Cost of Sales $ 564.8 $ 556.1 Nine Months Ended Pre-Tax (Gain) Loss Reclassified from Accumulated OCI Location of (Gain) Loss recognized Total Cost of Sales December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Designated forward currency exchange contracts $ 6.3 $ (1.0 ) Cost of Sales $ 1,507.2 $ 1,389.6 The Company expects that substantially all of the amounts currently recorded in accumulated other comprehensive income (loss) for its forward foreign currency exchange contracts will be reclassified into earnings during the next 12 months, based upon the timing of inventory purchases and turnover. Undesignated Hedges During the three and nine months ended December 29, 2018 , the Company recognized a net loss of $46.8 million and $75.7 million , respectively, related to changes in the fair value of undesignated forward foreign currency exchange contracts within foreign currency loss (gain) in the Company’s consolidated statement of operations and comprehensive income. These amounts were primarily comprised of $47.0 million and $77.4 million losses during the three and nine months ended December 29, 2018 , respectively, related to the derivative contracts entered into on September 25, 2018 to mitigate foreign currency exchange risk associated with the Versace acquisition that were settled on December 21, 2018. During the three and nine months ended December 30, 2017 , the Company recognized a net loss of $31.8 million and a net gain of $3.4 million , respectively, related to changes in the fair value of undesignated forward foreign currency exchange contracts within foreign currency loss (gain) in the Company’s consolidated statement of operations and comprehensive income. These amounts were primarily comprised of a $32.0 million loss and a $4.7 million gain during the three and nine months ended December 30, 2017 , respectively, related to the derivative contract entered into on July 25, 2017 to mitigate foreign currency exchange risk associated with the Jimmy Choo acquisition that was settled on October 30, 2017. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program During the nine months ended December 29, 2018 and December 30, 2017 , the Company repurchased 3,718,237 shares and 4,543,500 shares, respectively, at a cost of $200.0 million and $157.8 million , respectively, under its $1.0 billion share-repurchase program through open market transactions. As of December 29, 2018 , the remaining availability under the Company’s share repurchase program was $442.2 million . Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading transactions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time. The Company also has in place a “withhold to cover” repurchase program, which allows the Company to withhold ordinary shares from certain executive officers and directors to satisfy minimum tax withholding obligations relating to the vesting of their restricted share unit awards. During the nine month periods ended December 29, 2018 and December 30, 2017 , the Company withheld 107,712 shares and 92,536 shares, respectively, with a fair value of $7.2 million and $3.2 million , respectively, in satisfaction of minimum tax withholding obligations relating to the vesting of restricted share unit awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table details changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes for the nine months ended December 29, 2018 and December 30, 2017 , respectively (in millions): Foreign Currency (1) Net Gains (Losses) on (2) Other Comprehensive (Loss) Income Attributable to Capri Other Comprehensive (Loss) Income Attributable to Noncontrolling Interest Total Accumulated Other Comprehensive (Loss) Income Balance at April 1, 2017 $ (86.1 ) $ 5.5 $ (80.6 ) $ (0.3 ) $ (80.9 ) Other comprehensive income (loss) before reclassifications 78.6 (15.4 ) 63.2 0.1 63.3 Less: amounts reclassified from AOCI to earnings — 1.0 1.0 — 1.0 Other comprehensive income (loss), net of tax 78.6 (16.4 ) 62.2 0.1 62.3 Balance at December 30, 2017 $ (7.5 ) $ (10.9 ) $ (18.4 ) $ (0.2 ) $ (18.6 ) Balance at March 31, 2018 $ 61.2 $ (10.7 ) $ 50.5 $ (0.2 ) $ 50.3 Other comprehensive (loss) income before reclassifications (159.8 ) 10.9 (148.9 ) (0.1 ) (149.0 ) Less: amounts reclassified from AOCI to earnings — (5.5 ) (5.5 ) — (5.5 ) Other comprehensive (loss) income, net of tax (159.8 ) 16.4 (143.4 ) (0.1 ) (143.5 ) Balance at December 29, 2018 $ (98.6 ) $ 5.7 $ (92.9 ) $ (0.3 ) $ (93.2 ) _________________________ (1) Foreign currency translation gains and losses for the nine months ended December 29, 2018 and December 30, 2017 include net gains of $9.5 million and net losses of $4.4 million , respectively, on intra-entity transactions that are of a long-term investment nature. Foreign currency translation losses for the nine months ended December 29, 2018 include a $139.3 million translation loss related to the Jimmy Choo business and a $12.8 million gain, net of taxes of $2.6 million relating to the Company's net investment hedges. Foreign currency translation gain for the nine months ended December 30, 2017 include a $35.2 million translation gain related to the Jimmy Choo business. (2) Reclassified amounts relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income. Accumulated other comprehensive income related to net gains (losses) on derivative financial instruments as of December 29, 2018 and March 31, 2018 is net of a tax provision of $0.7 million and a tax benefit of $1.4 million , respectively. The amount reclassified from other comprehensive income (loss) for the nine months ended December 29, 2018 is net of a tax benefit of $0.8 million . Other comprehensive income (loss) before reclassifications related to derivative financial instruments for the nine months ended December 29, 2018 and December 30, 2017 is net of a tax provision of $1.3 million and $2.3 million , respectively. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans, one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and the Omnibus Incentive Plan other adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015 (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of December 29, 2018 , there were no shares available to grant equity awards under the 2008 Plan. The Incentive Plan allows for grants of share options, restricted shares and restricted share units, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At December 29, 2018 , there were 6,250,146 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant. The following table summarizes the Company’s share-based compensation activity during the nine months ended December 29, 2018 : Options Restricted Shares Service-Based RSUs Performance-Based RSUs Outstanding/Unvested at March 31, 2018 3,796,620 64,148 2,127,517 657,532 Granted 224,582 — 839,392 166,617 Exercised/Vested (1,659,918 ) (63,719 ) (675,649 ) (105,900 ) Decrease due to performance condition — — — (101,744 ) Canceled/forfeited (25,507 ) (429 ) (129,817 ) (29,477 ) Outstanding/Unvested at December 29, 2018 2,335,777 — 2,161,443 587,028 The weighted average grant date fair value for options granted during the nine months ended December 29, 2018 and December 30, 2017 was $24.49 and $11.62 , respectively. The weighted average grant date fair value of service-based and performance-based RSUs granted during the nine months ended December 29, 2018 was $67.03 and $ 67.52 , respectively, and $37.33 and $34.68 , respectively, during the nine months ended December 30, 2017 . The Company uses the Black-Scholes valuation model to estimate the grant date fair value of its share option awards. The following table presents assumptions used to estimate the fair value of options granted during the nine months ended December 29, 2018 and December 30, 2017 : Nine Months Ended December 29, December 30, Expected dividend yield 0.0 % 0.0 % Volatility factor 36.9 % 36.3 % Weighted average risk-free interest rate 2.8 % 1.8 % Expected life of option 4.85 years 4.69 years Share-Based Compensation Expense The following table summarizes compensation expense attributable to share-based compensation for the three and nine months ended December 29, 2018 and December 30, 2017 (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Share-based compensation expense $ 11.9 $ 8.5 $ 38.3 $ 29.6 Tax benefit (deficit) related to share-based compensation expense $ 2.0 $ (0.6 ) $ 7.0 $ 6.2 Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate to date. The estimated value of future forfeitures for equity grants as of December 29, 2018 is approximately $10.6 million . See Note 16 in the Company’s Fiscal 2018 Annual Report on Form 10-K for additional information relating to the Company’s share-based compensation awards. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three and nine months ended December 29, 2018 are 17.3% and 12.7% , respectively. Such rates differ from the United Kingdom (“U.K.”) federal statutory rate of 19% primarily due to the favorable effects of global financing arrangements, partially offset by earnings generated in higher tax jurisdictions and the impact of uncertain tax positions. The decrease in the effective tax rate for the nine months ended December 29, 2018 was also due to excess tax benefits related to share-based compensation awards. The global financing activities are related to the Company’s 2014 move of its principal executive office from Hong Kong to the U.K. and decision to become a U.K. tax resident. In connection with this decision, the Company funded its international growth strategy through intercompany debt financing arrangements between certain of our U.S., U.K. and Switzerland subsidiaries in December 2015. Due to the difference in the statutory income tax rates between these jurisdictions, the Company realized a lower effective tax rate. The Company’s effective tax rates for the three and nine months ended December 30, 2017 were 21.2% and 18.0% , respectively. As of December 29, 2018 and March 31, 2018, the Company has liabilities related to its uncertain tax positions, including accrued interest, of approximately $126.6 million and $107.4 million , respectively, which are included in other long-term liabilities in the Company’s consolidated balance sheets. The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. The Company anticipates that the balance of gross unrecognized tax benefits, excluding interest and penalties, will be reduced by approximately $37.8 million during the next 12 months, primarily due to an anticipated tax ruling regarding the deductibility of certain capital losses and anticipated audit closures. The outcomes and timing of such events are highly uncertain and changes in the occurrence, expected outcomes and timing of such events could cause the Company’s current estimate to change materially in the future. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including, among other things, lowering U.S. statutory federal tax rate and implementing a territorial tax system. The U.S. statutory federal tax rate has been decreased to 21% for Fiscal 2019 and thereafter. The Tax Act also added many new provisions, including changes to bonus depreciation, limits on the deductions for executive compensation and interest expense, a tax on global intangible low-taxed income, the base erosion anti-abuse tax and a deduction for foreign derived intangible income. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin 118 to provide guidance for companies that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. Subsequently, as a result of finalizing its full Fiscal 2018 operating results, the issuance of new interpretive guidance, and other analyses performed, the Company finalized its accounting related to the impacts of the Tax Act and recorded immaterial measurement period adjustments in the period ending December 29, 2018 . |
Segment Information
Segment Information | 9 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates its business through four operating segments—MK Retail, MK Wholesale, MK Licensing and Jimmy Choo—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 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 channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s four reportable segments are as follows: • MK Retail — segment includes sales through Michael Kors operated stores, including “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout the Americas (U.S., Canada and Latin America, excluding Brazil), Europe and certain parts of Asia, as well as Michael Kors e-commerce sales. Products sold through the MK Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), men’s apparel, footwear and licensed products, such as watches, jewelry, fragrances and beauty, and eyewear. • MK Wholesale — segment includes sales primarily to major department stores and specialty shops throughout the Americas, Europe and Asia. Products sold through the MK Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Company also has wholesale arrangements pursuant to which it sells products to Michael Kors geographic licensees in certain parts of EMEA and Asia, as well as in Brazil. • MK Licensing — segment includes royalties and other contributions earned on licensed products and use of the Michael Kors trademarks and rights granted to third parties for the right to operate retail stores and/or sell the Company’s products in certain geographic regions such as Brazil, the Middle East, South Africa, Eastern Europe, certain parts of Asia and Australia. • Jimmy Choo — segment includes revenue generated from sales of luxury footwear, handbags and small leather goods through directly operated Jimmy Choo stores throughout the Americas, EMEA and certain parts of Asia, as well as through Jimmy Choo e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of fragrance, sunglasses and eyewear. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon revenue or other allocation methods. The following table presents the key performance information of the Company’s reportable segments (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Total revenue: MK Retail $ 838.0 $ 846.3 $ 2,121.4 $ 2,111.2 MK Wholesale 394.9 430.8 1,215.5 1,198.0 MK Licensing 43.5 48.3 106.4 115.2 Michael Kors 1,276.4 1,325.4 3,443.3 3,424.4 Jimmy Choo 161.6 114.7 451.0 114.7 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 Income from operations: MK Retail $ 149.9 $ 180.4 $ 310.3 $ 341.6 MK Wholesale 108.6 100.5 336.2 263.6 MK Licensing 26.0 26.9 44.9 51.1 Michael Kors 284.5 307.8 691.4 656.3 Jimmy Choo 5.5 5.7 3.2 5.7 Income from operations $ 290.0 $ 313.5 $ 694.6 $ 662.0 Depreciation and amortization expense for each segment are as follows (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Depreciation and amortization: MK Retail $ 30.8 $ 33.7 $ 95.4 $ 98.8 MK Wholesale 11.5 13.9 38.0 43.5 MK Licensing 0.6 0.6 1.7 1.8 Michael Kors 42.9 48.2 135.1 144.1 Jimmy Choo 8.6 5.8 25.0 5.8 Total depreciation and amortization $ 51.5 $ 54.0 $ 160.1 $ 149.9 Total revenue (based on country of origin), and long-lived assets by geographic location are as follows (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Total revenue: The Americas (U.S., Canada and Latin America) (1) $ 926.8 $ 946.6 $ 2,437.7 $ 2,332.6 EMEA 334.2 333.1 925.2 805.0 Asia 177.0 160.4 531.4 401.5 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 As of December 29, March 31, Long-lived assets, excluding goodwill: The Americas (U.S., Canada and Latin America) (1) $ 300.9 $ 327.3 EMEA 936.2 1,050.3 Asia 439.4 441.3 Total long-lived assets, excluding goodwill $ 1,676.5 $ 1,818.9 (1) Total revenue earned in the U.S. were $868.9 million and $2.274 billion for the three and nine months ended December 29, 2018 and $883.2 million and $2.164 billion for the three and nine months ended December 30, 2017 . Long-lived assets located in the U.S. as of December 29, 2018 and March 31, 2018 were $277.1 million and $303.3 million , respectively. The following table presents the Company’s goodwill by reportable segment (in millions): As of December 29, March 31, MK Retail $ 91.9 $ 91.9 MK Wholesale 25.9 25.9 MK Licensing 1.9 1.9 Jimmy Choo 660.3 728.0 Total goodwill $ 780.0 $ 847.7 |
Non-cash Investing Activities
Non-cash Investing Activities | 9 Months Ended |
Dec. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Non-cash Investing Activities | Non-cash Investing Activities Significant non-cash investing activities during the nine months ended December 30, 2017 included non-cash allocations of the fair values of the net assets acquired in connection with the Company’s acquisition of the Jimmy Choo business on November 1, 2017. See Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for additional information. There were no other significant non-cash investing or financing activities during the fiscal periods presented. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Versace On December 31, 2018, the Company completed the acquisition of Versace for a total enterprise value of approximately €1.753 billion (or approximately $2.005 billion ), giving effect to an equity investment made by the Versace family at acquisition of 2.4 million shares. The acquisition was funded through a combination of borrowings under the Company’s 2018 Term Loan Facility, drawings under the Company’s Revolving Credit Facility and cash on hand (see Note 10 for additional information). The Company believes that this acquisition will expand its global luxury group to include three iconic founder-led brands defined by luxury products with a reputation for world-class design and innovation. The Company will account for this acquisition as a business combination and is in the process of aggregating information required to support purchase accounting, as well as to prepare business combination disclosures. The Company will include all of the required business combination disclosures in its Form 10-K for the fiscal year ended March 30, 2019. As previously mentioned in Note 1 , in connection with the closing of the acquisition of Versace, the Company changed its name to Capri Holdings Limited on December 31, 2018 and began trading on the New York Stock Exchange under the ticker “CPRI” on January 2, 2019. Net Investment Hedges During the fourth quarter of Fiscal 2019, the Company entered into multiple fixed-to-fixed cross currency swap agreements with an aggregate notional amount of $1.500 billion to hedge its net investments in Euro-denominated subsidiaries against future volatility in the exchange rates between the U.S. Dollar and the Euro. These contracts have been designated as net investment hedges. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of December 29, 2018 and for the three and nine months ended December 29, 2018 and December 30, 2017 are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 31, 2018 , as filed with the Securities and Exchange Commission on May 30, 2018, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year. |
Fiscal Period | The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three and nine months ended December 29, 2018 and December 30, 2017 , are based on 13-week and 39-week periods, respectively. |
Use of Estimates | The preparation of financial statements in accordance with U.S. GAAP requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates related to the Company’s customer loyalty program for Michael Kors, estimates of gift card breakage, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the valuation of and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates. |
Reclassifications | Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. |
Seasonality | The Company experiences certain effects of seasonality with respect to its business. The Company’s MK Retail segment generally experiences greater sales during its third fiscal quarter as a result of holiday season sales. The MK Wholesale segment generally experiences the lowest sales in its first fiscal quarter. The Jimmy Choo segment generally experiences greater sales during its first and third fiscal quarters, primarily driven by the product launch calendar and holiday season sales. In the aggregate, the Company’s first fiscal quarter typically experiences less sales volume relative to the other three quarters and its third fiscal quarter generally has higher sales volume relative to the other three quarters. |
Derivative Financial Instruments | Forward Foreign Currency Exchange Contracts The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. In connection with the September 24, 2018 definitive agreement to acquire all of the outstanding shares of Versace, the Company entered into forward foreign currency exchange contracts with notional amounts totaling €1.680 billion (approximately $2.001 billion ) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which were settled on December 21, 2018. Likewise, in connection with the July 25, 2017 cash offer to acquire Jimmy Choo, the Company entered into a forward foreign currency exchange contract with a notional amount of £1.115 billion (approximately $1.469 billion ) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which was settled on October 30, 2017. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value are recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments in the same category as the cash flows from the items being hedged. Accordingly, during the nine months ended December 29, 2018 and December 30, 2017 , the Company classified $77.4 million of realized losses and $4.7 million of realized gains, respectively, relating to these derivative instruments within cash flows from investing activities. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income (loss) until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income (loss) are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months . The period of these contracts is directly related to the foreign transaction they are intended to hedge. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between our U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, as defined below, and has designated these contracts as net investment hedges. The net gain or loss on net investment hedged is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest expense in the Company’s statement of operations and comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the hedged net investment is sold, diluted, or liquidated. |
Net Income per Share | The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units (“RSUs”), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included in diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Hedge Accounting On August 28, 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ” The new standard is intended to improve and simplify rules relating to hedge accounting, including the elimination of periodic hedge ineffectiveness, recognition and presentation of components excluded from hedge effectiveness assessment, the ability to elect to perform subsequent effectiveness assessments qualitatively, and other provisions designed to provide more transparency around the economics of a company’s hedging strategy. ASU 2017-12 is effective for the Company in Fiscal 2020, with early adoption permitted. The Company adopted ASU 2017-12 during the three months ended June 30, 2018, which resulted in a net increase to opening retained earnings of less than $0.1 million as of April 1, 2018, due to the elimination of ineffectiveness for cash flow hedges in effect as of the date of adoption. The Company has applied the spot method of designating its net investment hedges, which were executed during the nine months ended December 29, 2018 . Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” which provides new guidance for revenues recognized from contracts with customers, requiring that revenue is recognized at an amount the Company is entitled to upon transferring control of goods or services to customers, as opposed to when risks and rewards transfer to a customer. In July 2015, ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ” deferred the effective date of ASU 2014-09 by one year, to interim reporting periods within the annual reporting period beginning after December 15, 2017, or the first quarter of the Company’s Fiscal 2019. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption (“modified retrospective method”). The FASB issued several additional ASUs to provide implementation guidance on ASU 2014-09, including ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ” in December 2016; ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ” in May 2016; ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ” in April 2016; and ASU 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” in March 2016. The Company considered this guidance in evaluating the impact of ASU 2014-09 (collectively, “ASC 606”). On April 1, 2018, the Company adopted ASC 606 using the modified retrospective method and recognized the $6.7 million (net of a tax of $1.7 million ) cumulative effect of adoption as an adjustment to the opening balance of retained earnings. The below table details the components of the cumulative adjustment recorded on April 1, 2018 (in millions): March 31, 2018 ASC 606 Adjustments April 1, 2018 Receivables, net $ 290.5 $ 3.8 (1) $ 294.3 Accrued expenses and other current liabilities 295.6 (4.6 ) (2) 291.0 Deferred tax liabilities 186.3 1.7 (3) 188.0 Retained earnings 4,152.0 6.7 4,158.7 (1) Includes a $3.5 million adjustment related to product licensing revenue, which was previously recorded on a one-month lag and $0.3 million of guaranteed advertising minimums recognized by product licensees on a straight-line basis over the contract year. (2) Relates to recognition of breakage revenue associated with gift card liabilities not subject to escheatment. (3) Relates to income tax effect of the above adjustments. In addition, while the Company has previously recorded the right of return asset and liability on a gross basis, in connection with its adoption of ASC 606, it has reclassified the return liability of $16.2 million from receivables, net to accrued expenses and other current liabilities in its consolidated balance sheets as of December 29, 2018 . Otherwise, the adoption of this standard did not have a material impact on the Company's consolidated financial statements as of and for the three and nine months ended December 29, 2018 , or any individual line items therein. See Note 3 for additional disclosures related to the Company’s revenue recognition accounting policy. Share-Based Compensation In May 2017, the FASB issued ASU 2017-09, “ Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ”, which simplifies modification accounting for entities that change the terms or conditions of share-based awards. ASU 2017-09 was adopted during the first quarter of Fiscal 2019, as required, on a prospective basis. The adoption of this standard did not have an impact on the Company's consolidated financial statements. The Company will apply ASU 2017-09 to any future changes to the terms and conditions of its share-based compensation awards. Income Taxes In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ”, which requires recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted ASU 2016-16 in the beginning of Fiscal 2019, as required, using the modified retrospective method. On April 1, 2018, the Company recorded the $4.9 million cumulative effect of adoption as an adjustment to the opening balance of retained earnings. Recently Issued Accounting Pronouncements We have considered all new accounting pronouncements and, other than the recent pronouncements discussed below, have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition or cash flows based on current information. Lease Accounting In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842), ” which requires lessees to recognize a lease liability and a right-to-use asset on the balance sheet for all leases, except certain short-term leases. ASU 2016-02 is effective beginning with the Company’s Fiscal 2020, with early adoption permitted. The Company plans to apply the package of three practical expedients, allowing it to carry forward its previous lease classification and embedded lease evaluations and not to reassess initial direct costs as of the date of adoption, as well as the practical expedient allowing it to combine lease and non-lease components. The Company also plans on adopting the practical expedient from ASU 2018-11, “ Leases (Topic 842): Targeted Improvements, ” allowing it to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods . The Company's existing lease obligations, which relate to stores, corporate locations, warehouses, and equipment, will be subject to the new standard and will result in recording a lease liability and right-to-use asset for operating leases on the Company's consolidated balance sheet. Accordingly, adoption of this standard is expected to significantly increase the Company's total assets and total liabilities. The FASB has issued several additional ASUs to provide implementation guidance relating to ASU 2016-02, including ASU 2018-01, “ Land Easement Practical Expedient for Transition to Topic 842 ” in January 2018, ASU 2018-10, “ Codification Improvements to Topic 842, Leases ” and ASU 2018-11, “ Leases (Topic 842): Targeted Improvements, ” both issued in July 2018, and ASU 2018-20, “ Leases (Topic 842) - Narrow-Scope Improvements for Lessors ” issued in December 2018. The Company will consider this guidance in evaluating the impact of ASU 2016-02. Intangibles In August 2018, the FASB issued ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, ” which reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether or not the contract conveys a license to the hosted software. ASU 2018-15 is effective beginning with the Company’s Fiscal 2021, with early adoption permitted, and can either be presented prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2018-15 on its consolidated financial statements. |
Revenue Recognition | The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to Michael Kors and Jimmy Choo trademarks. The Company has chosen to apply the practical expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations that have an expected duration of 12 months or less. Retail Michael Kors generates sales through four primary retail store formats: “Collection” stores, “Lifestyle” stores, outlet stores and e-commerce. Michael Kors sells its own products and licensed products bearing the Michael Kors name, directly to the end consumer throughout the Americas (U.S., Canada and Latin America, excluding Brazil), Europe and certain parts of Asia. Jimmy Choo generates sales through directly operated stores and e-commerce throughout the Americas, EMEA (Europe, Middle East, and Africa) and certain parts of Asia. In addition to these retail formats, the Company operates concessions in a select number of department stores. Retail revenue is recognized when control of the product is transferred at the point of sale at Company owned stores, including concessions. For e-commerce transactions, control is transferred when products are delivered to the customer, net of estimated returns. To arrive at net sales for retail, gross sales are reduced by actual customer returns, as well as by a provision for estimated future customer returns. Sales taxes collected from retail customers are presented on a net basis and, as such, are excluded from revenue. Shipping and handling costs that are billed to customers are included in net sales, with the related costs recorded in cost of goods sold. Shipping and handling costs that are not billed to customers are accounted for as fulfillment costs. Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability recorded upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The Company anticipates that substantially all of its outstanding gift cards will be redeemed within the next 12 months. The contract liability related to gift cards, net of estimated “breakage,” was $11.8 million as of December 29, 2018 , and is included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program . The Company offers a loyalty program, which allows its Michael Kors customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” of $7.5 million as of December 29, 2018 is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheet and is expected to be recognized within the next 12 months. Wholesale Michael Kors products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. Jimmy Choo luxury products are sold throughout North America, EMEA, and certain parts of Asia. The Company also has arrangements where Michael Kors and Jimmy Choo products are sold to our geographic licensees in certain parts of EMEA and Asia, as well as in Brazil. Products sold through the wholesale channel include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, after merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, as well as trade discounts, markdowns, allowances, operational chargebacks, and certain cooperative selling expenses. These estimates are developed based on the most likely amount using historical trends, actual and forecasted performance and market conditions, and are reviewed by management on a quarterly basis. Unfulfilled, noncancelable purchase orders for products from wholesale customers (including the Company’s geographic licensees) are expected to be fulfilled within the next 12 months. Licensing The Company provides its third-party licensees with the right to access its Michael Kors and Jimmy Choo trademarks under product and geographic licensing arrangements. Under product licensing arrangements, the Company allows third parties to manufacture and sell luxury goods, including watches and jewelry, fragrances, sunglasses and eyewear, using the Company’s trademarks. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company's trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa, certain parts of Asia and Australia. The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Advertising contributions are received to support the Company’s branded advertising and marketing campaigns and are viewed as part of a single performance obligation with the right to access the Company’s trademarks. Royalty revenue generated from licenses, which includes contributions for advertising, may be subject to contractual minimum levels, as defined in the contract. Such minimums are generally fixed annually, based on the previous year’s sales. Licensing revenue is based on reported current period sales of licensed products at rates that are specified in the license agreements for contracts that are expected to exceed the related guaranteed minimums. If the Company expects the minimum guaranteed amounts to exceed amounts calculated based on actual sales, the guaranteed minimums are recognized ratably over the contractual year to which they relate. As of December 29, 2018 , guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months. Sales Returns For the sale of goods with a right of return, the Company recognizes revenue for the consideration to which it expects to be entitled and a refund liability for the amount it expects to refund to its customers within accrued expenses and other current liabilities. The refund liability is determined based on the most likely amount and is based on management’s review of historical and current customer returns for its retail and wholesale customers, estimated future returns, adjusted for non-resalable products. The Company also considers its product strategies, as well as the financial condition of its customers, store closings by wholesale customers, changes in the retail environment and other macroeconomic factors. The Company recognizes an asset with a corresponding adjustment to cost of sales for the right to recover the products from its retail and wholesale customers, net of any costs to resell. The refund liability recorded as of December 29, 2018 was $42.1 million and the related asset for the right to recover returned product as of December 29, 2018 was $11.5 million . |
Receivables, net | Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Allowances are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues. The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share | The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Numerator: Net income attributable to Capri $ 199.6 $ 219.4 $ 523.6 $ 547.8 Denominator: Basic weighted average shares 149,183,049 152,047,963 149,420,087 152,772,067 Weighted average dilutive share equivalents: Share options and restricted shares/units, and performance restricted share units 1,085,375 2,575,376 2,037,834 2,448,917 Diluted weighted average shares 150,268,424 154,623,339 151,457,921 155,220,984 Basic net income per share $ 1.34 $ 1.44 $ 3.50 $ 3.59 Diluted net income per share $ 1.33 $ 1.42 $ 3.46 $ 3.53 |
Schedule of Impact of Adoption of New Accounting Pronouncements | The below table details the components of the cumulative adjustment recorded on April 1, 2018 (in millions): March 31, 2018 ASC 606 Adjustments April 1, 2018 Receivables, net $ 290.5 $ 3.8 (1) $ 294.3 Accrued expenses and other current liabilities 295.6 (4.6 ) (2) 291.0 Deferred tax liabilities 186.3 1.7 (3) 188.0 Retained earnings 4,152.0 6.7 4,158.7 (1) Includes a $3.5 million adjustment related to product licensing revenue, which was previously recorded on a one-month lag and $0.3 million of guaranteed advertising minimums recognized by product licensees on a straight-line basis over the contract year. (2) Relates to recognition of breakage revenue associated with gift card liabilities not subject to escheatment. (3) Relates to income tax effect of the above adjustments. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Segment Revenues Disaggregated by Geographic Location | The following table presents the Company’s segment revenues disaggregated by geographic location (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, MK Retail revenue - the Americas $ 557.1 $ 558.0 $ 1,354.2 $ 1,335.6 MK Retail revenue - Europe 163.9 168.0 422.6 444.3 MK Retail revenue - Asia 117.0 120.3 344.6 331.3 Total MK Retail 838.0 846.3 2,121.4 2,111.2 MK Wholesale revenue - the Americas 311.4 338.2 940.8 905.8 MK Wholesale revenue - EMEA (1) 66.3 81.2 215.6 250.7 MK Wholesale revenue - Asia 17.2 11.4 59.1 41.5 Total MK Wholesale 394.9 430.8 1,215.5 1,198.0 MK Licensing revenue - the Americas 29.2 29.4 67.6 70.2 MK Licensing revenue - EMEA (1) 14.3 18.9 38.8 45.0 Total MK Licensing 43.5 48.3 106.4 115.2 Total Michael Kors 1,276.4 1,325.4 3,443.3 3,424.4 Jimmy Choo revenue - the Americas 29.1 21.0 75.1 21.0 Jimmy Choo revenue - EMEA (1) 89.7 65.0 248.2 65.0 Jimmy Choo revenue - Asia 42.8 28.7 127.7 28.7 Total Jimmy Choo 161.6 114.7 451.0 114.7 Total revenue - the Americas 926.8 946.6 2,437.7 2,332.6 Total revenue - EMEA (1) 334.2 333.1 925.2 805.0 Total revenue - Asia 177.0 160.4 531.4 401.5 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 (1) EMEA is comprised of Europe, the Middle East and Africa. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Schedule of Unaudited Pro-forma | The following table summarizes the unaudited pro-forma consolidated results of operations for the three and nine months ended December 30, 2017 as if the acquisition had occurred on April 3, 2016, the beginning of Fiscal 2017 (in millions): Three Months Ended Nine Months Ended December 30, 2017 December 30, 2017 Pro-forma total revenue $ 1,478.5 $ 3,832.6 Pro-forma net income 242.8 574.2 Pro-forma net income per ordinary share attributable to Capri: Basic $ 1.60 $ 3.76 Diluted $ 1.57 $ 3.70 |
Receivables, net (Tables)
Receivables, net (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net, consist of (in millions): December 29, March 31, Trade receivables (1) $ 364.7 $ 383.3 Receivables due from licensees 34.5 15.8 399.2 399.1 Less: allowances (108.0 ) (108.6 ) $ 291.2 $ 290.5 (1) As of December 29, 2018 and March 31, 2018 , $261.6 million and $296.2 million , respectively, of trade receivables were insured. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of (in millions): December 29, March 31, Leasehold improvements $ 582.7 $ 551.0 Furniture and fixtures 276.9 270.9 Computer equipment and software 275.3 266.3 In-store shops 269.7 273.9 Equipment 119.6 116.7 Building 43.2 51.6 Land 15.0 16.2 1,582.4 1,546.6 Less: accumulated depreciation and amortization (1,083.0 ) (1,001.6 ) 499.4 545.0 Construction-in-progress 44.2 38.2 $ 543.6 $ 583.2 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions): December 29, March 31, Definite-lived intangible assets: Reacquired Rights $ 400.4 $ 400.4 Trademarks 23.0 23.0 Lease Rights 71.6 80.1 Customer Relationships 210.2 (1) 231.3 Total definite-lived intangible assets 705.2 734.8 Less: accumulated amortization (129.4 ) (113.2 ) Net definite-lived intangible assets 575.8 621.6 Indefinite-lived intangible assets: Jimmy Choo brand 557.1 (1) 614.1 Total intangible assets, excluding goodwill $ 1,132.9 $ 1,235.7 Goodwill $ 780.0 (1) $ 847.7 (1) The change in the carrying values since March 31, 2018 reflects currency translation. |
Carrying Values of Intangible Assets | The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions): December 29, March 31, Definite-lived intangible assets: Reacquired Rights $ 400.4 $ 400.4 Trademarks 23.0 23.0 Lease Rights 71.6 80.1 Customer Relationships 210.2 (1) 231.3 Total definite-lived intangible assets 705.2 734.8 Less: accumulated amortization (129.4 ) (113.2 ) Net definite-lived intangible assets 575.8 621.6 Indefinite-lived intangible assets: Jimmy Choo brand 557.1 (1) 614.1 Total intangible assets, excluding goodwill $ 1,132.9 $ 1,235.7 Goodwill $ 780.0 (1) $ 847.7 (1) The change in the carrying values since March 31, 2018 reflects currency translation. |
Current Assets and Current Li_2
Current Assets and Current Liabilities (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in millions): December 29, March 31, Restricted Cash $ 1,921.6 (1) $ 0.3 Prepaid taxes $ 114.8 $ 78.5 Prepaid rent 23.0 22.7 Leasehold incentive receivable 10.9 9.4 Unrealized gains on forward foreign currency exchange contracts 5.3 — Prepaid duties — 7.0 Other 43.5 29.9 $ 2,119.1 $ 147.8 (1) Primarily consists of cash placed in escrow in connection with the acquisition of Versace, which was paid on December 31, 2018. |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions): December 29, March 31, Other taxes payable $ 63.2 $ 54.3 Accrued rent 46.3 34.5 Return liabilities 42.1 12.1 Restructuring liability 38.3 44.8 Accrued capital expenditures 23.1 26.4 Professional services 21.1 14.1 Accrued advertising and marketing 16.3 22.6 Gift cards and retail store credits 11.8 16.0 Accrued samples 10.0 2.5 Deferred loyalty program liabilities 7.5 2.2 Accrued interest 5.8 8.7 Advance royalties 5.8 4.1 Deferred income 3.3 4.3 Unrealized loss on forward foreign currency exchange contracts 0.2 7.7 Other 62.5 41.3 $ 357.3 $ 295.6 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The below table presents a summary of charges recorded in connection with this plan for the MK Retail segment and the Company’s remaining restructuring liability (in millions): Severance and benefit costs Lease-related costs Total Balance at March 31, 2018 $ 0.2 $ 44.6 $ 44.8 Additions charged to expense 0.2 9.3 9.5 Balance sheet reclassifications (1) — 2.1 2.1 Payments (0.3 ) (20.7 ) (21.0 ) Balance at December 29, 2018 $ 0.1 $ 35.3 $ 35.4 (1) Primarily consists of reclassification of deferred rent for locations subject to closure to a restructuring liability. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table presents the Company’s debt obligations (in millions): December 29, March 31, Term Loan (1) $ 1,600.0 $ 229.8 Revolving Credit Facilities 500.0 200.0 4.000% Senior Notes due 2024 450.0 450.0 Other 0.9 0.9 Total debt 2,550.9 880.7 Less: Unamortized debt issuance costs 15.0 4.2 Less: Unamortized discount on long-term debt 1.8 2.1 Total carrying value of debt 2,534.1 874.4 Less: Short-term debt 579.4 200.0 Total long-term debt $ 1,954.7 $ 674.4 (1) During the three months ended December 29, 2018 , the Company repaid the remaining $59.0 million of borrowings outstanding under the previous Term Loan Facility entered into in connection with the Jimmy Choo acquisition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy | All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions): Fair value at December 29, 2018 using: Fair value at March 31, 2018 using: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivative assets: Forward foreign currency exchange contracts $ — $ 5.3 $ — $ — $ — $ — Net investment hedges — 15.4 — — — — Total derivative assets $ — $ 20.7 $ — $ — $ — $ — Derivative liabilities: Forward foreign currency exchange contracts $ — $ 0.2 $ — $ — $ 7.7 $ — Net investment hedges — — — — — — Total derivative liabilities $ — $ 0.2 $ — $ — $ 7.7 $ — |
Fair Value Measurement of Long-term Debt | The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions): December 29, 2018 March 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 4.000% Senior Notes $ 445.1 $ 423.0 $ 444.5 $ 448.1 Term Loan $ 1,588.1 $ 1,595.0 $ 229.0 $ 231.2 Revolving Credit Facilities $ 500.0 $ 500.0 $ 200.0 $ 200.0 |
Schedule of Long-lived Assets, Nonrecurring | The following tables detail the carrying values and fair values of the Company’s long-lived assets that have been impaired (in millions): Three Months Ended Nine Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge Fixed Assets $ 6.1 $ 0.2 $ 5.9 $ 20.3 $ 5.0 $ 15.3 Lease Rights — — — 3.4 1.5 1.9 Total $ 6.1 $ 0.2 $ 5.9 $ 23.7 $ 6.5 $ 17.2 Three Months Ended Nine Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge Fixed Assets $ 3.5 $ 0.9 $ 2.6 $ 16.9 $ 2.4 $ 14.5 Lease Rights — — — 3.6 0.2 3.4 Customer Relationships — — — 1.0 — 1.0 Total $ 3.5 $ 0.9 $ 2.6 $ 21.5 $ 2.6 $ 18.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets | The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of December 29, 2018 and March 31, 2018 (in millions): Fair Values Notional Amounts Assets Liabilities December 29, March 31, December 29, March 31, December 29, March 31, Designated forward currency exchange contracts $ 153.6 $ 161.7 $ 3.5 (1) $ — $ 0.2 (2) $ 7.7 (2) Designated net investment hedge 434.0 — 15.4 (3) — — — Total designated hedges $ 587.6 $ 161.7 $ 18.9 $ — $ 0.2 $ 7.7 Undesignated forward currency exchange contracts 20.5 — 1.8 (1) — — — Total $ 608.1 $ 161.7 $ 20.7 $ — $ 0.2 $ 7.7 ____________________________________ (1) Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. (2) Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. (3) Recorded within other assets in the Company’s consolidated balance sheets. |
Schedule of Derivative Instruments on The Balance Sheets, Net Basis | However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to setoff amounts for similar transactions denominated in the same currencies, the resulting impact as of December 29, 2018 and March 31, 2018 would be as follows (in millions): Forward Currency Exchange Contracts Net Investment Hedges December 29, March 31, December 29, March 31, Assets subject to master netting arrangements $ 5.3 $ — $ 15.4 $ — Liabilities subject to master netting arrangements $ 0.2 $ 7.7 $ — $ — Derivative assets, net $ 5.3 $ — $ 15.4 $ — Derivative liabilities, net $ 0.2 $ 7.7 $ — $ — |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions): Three Months Ended Nine Months Ended December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pre-Tax Gains Recognized in OCI Pre-Tax Loss Recognized in OCI Pre-Tax Gains Recognized in OCI Pre-Tax Loss Recognized in OCI Designated forward foreign currency exchange contracts $ 2.5 $ (2.4 ) $ 12.2 $ (17.7 ) Designated net investment hedges $ 10.8 $ — $ 15.4 $ — The following tables summarize the impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three and nine months ended December 29, 2018 and December 30, 2017 (in millions): Three Months Ended Pre-Tax (Gain) Loss Reclassified from Accumulated OCI Location of (Gain) Loss recognized Total Cost of Sales December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Designated forward currency exchange contracts $ (0.6 ) $ 2.2 Cost of Sales $ 564.8 $ 556.1 Nine Months Ended Pre-Tax (Gain) Loss Reclassified from Accumulated OCI Location of (Gain) Loss recognized Total Cost of Sales December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Designated forward currency exchange contracts $ 6.3 $ (1.0 ) Cost of Sales $ 1,507.2 $ 1,389.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Loss, Net of Taxes | The following table details changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes for the nine months ended December 29, 2018 and December 30, 2017 , respectively (in millions): Foreign Currency (1) Net Gains (Losses) on (2) Other Comprehensive (Loss) Income Attributable to Capri Other Comprehensive (Loss) Income Attributable to Noncontrolling Interest Total Accumulated Other Comprehensive (Loss) Income Balance at April 1, 2017 $ (86.1 ) $ 5.5 $ (80.6 ) $ (0.3 ) $ (80.9 ) Other comprehensive income (loss) before reclassifications 78.6 (15.4 ) 63.2 0.1 63.3 Less: amounts reclassified from AOCI to earnings — 1.0 1.0 — 1.0 Other comprehensive income (loss), net of tax 78.6 (16.4 ) 62.2 0.1 62.3 Balance at December 30, 2017 $ (7.5 ) $ (10.9 ) $ (18.4 ) $ (0.2 ) $ (18.6 ) Balance at March 31, 2018 $ 61.2 $ (10.7 ) $ 50.5 $ (0.2 ) $ 50.3 Other comprehensive (loss) income before reclassifications (159.8 ) 10.9 (148.9 ) (0.1 ) (149.0 ) Less: amounts reclassified from AOCI to earnings — (5.5 ) (5.5 ) — (5.5 ) Other comprehensive (loss) income, net of tax (159.8 ) 16.4 (143.4 ) (0.1 ) (143.5 ) Balance at December 29, 2018 $ (98.6 ) $ 5.7 $ (92.9 ) $ (0.3 ) $ (93.2 ) _________________________ (1) Foreign currency translation gains and losses for the nine months ended December 29, 2018 and December 30, 2017 include net gains of $9.5 million and net losses of $4.4 million , respectively, on intra-entity transactions that are of a long-term investment nature. Foreign currency translation losses for the nine months ended December 29, 2018 include a $139.3 million translation loss related to the Jimmy Choo business and a $12.8 million gain, net of taxes of $2.6 million relating to the Company's net investment hedges. Foreign currency translation gain for the nine months ended December 30, 2017 include a $35.2 million translation gain related to the Jimmy Choo business. (2) Reclassified amounts relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income. Accumulated other comprehensive income related to net gains (losses) on derivative financial instruments as of December 29, 2018 and March 31, 2018 is net of a tax provision of $0.7 million and a tax benefit of $1.4 million , respectively. The amount reclassified from other comprehensive income (loss) for the nine months ended December 29, 2018 is net of a tax benefit of $0.8 million . Other comprehensive income (loss) before reclassifications related to derivative financial instruments for the nine months ended December 29, 2018 and December 30, 2017 is net of a tax provision of $1.3 million and $2.3 million , respectively. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Activity | The following table summarizes the Company’s share-based compensation activity during the nine months ended December 29, 2018 : Options Restricted Shares Service-Based RSUs Performance-Based RSUs Outstanding/Unvested at March 31, 2018 3,796,620 64,148 2,127,517 657,532 Granted 224,582 — 839,392 166,617 Exercised/Vested (1,659,918 ) (63,719 ) (675,649 ) (105,900 ) Decrease due to performance condition — — — (101,744 ) Canceled/forfeited (25,507 ) (429 ) (129,817 ) (29,477 ) Outstanding/Unvested at December 29, 2018 2,335,777 — 2,161,443 587,028 |
Assumptions Used to Estimate Fair Value of Options | The following table presents assumptions used to estimate the fair value of options granted during the nine months ended December 29, 2018 and December 30, 2017 : Nine Months Ended December 29, December 30, Expected dividend yield 0.0 % 0.0 % Volatility factor 36.9 % 36.3 % Weighted average risk-free interest rate 2.8 % 1.8 % Expected life of option 4.85 years 4.69 years |
Summary of Compensation Expense Attributable to Share-Based Compensation | The following table summarizes compensation expense attributable to share-based compensation for the three and nine months ended December 29, 2018 and December 30, 2017 (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Share-based compensation expense $ 11.9 $ 8.5 $ 38.3 $ 29.6 Tax benefit (deficit) related to share-based compensation expense $ 2.0 $ (0.6 ) $ 7.0 $ 6.2 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Key Performance Information of Reportable Segments | The following table presents the key performance information of the Company’s reportable segments (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Total revenue: MK Retail $ 838.0 $ 846.3 $ 2,121.4 $ 2,111.2 MK Wholesale 394.9 430.8 1,215.5 1,198.0 MK Licensing 43.5 48.3 106.4 115.2 Michael Kors 1,276.4 1,325.4 3,443.3 3,424.4 Jimmy Choo 161.6 114.7 451.0 114.7 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 Income from operations: MK Retail $ 149.9 $ 180.4 $ 310.3 $ 341.6 MK Wholesale 108.6 100.5 336.2 263.6 MK Licensing 26.0 26.9 44.9 51.1 Michael Kors 284.5 307.8 691.4 656.3 Jimmy Choo 5.5 5.7 3.2 5.7 Income from operations $ 290.0 $ 313.5 $ 694.6 $ 662.0 |
Depreciation and Amortization Expense for Each Segment | Depreciation and amortization expense for each segment are as follows (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Depreciation and amortization: MK Retail $ 30.8 $ 33.7 $ 95.4 $ 98.8 MK Wholesale 11.5 13.9 38.0 43.5 MK Licensing 0.6 0.6 1.7 1.8 Michael Kors 42.9 48.2 135.1 144.1 Jimmy Choo 8.6 5.8 25.0 5.8 Total depreciation and amortization $ 51.5 $ 54.0 $ 160.1 $ 149.9 |
Total Revenue (as Recognized Based on Country of Origin) | Total revenue (based on country of origin), and long-lived assets by geographic location are as follows (in millions): Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, Total revenue: The Americas (U.S., Canada and Latin America) (1) $ 926.8 $ 946.6 $ 2,437.7 $ 2,332.6 EMEA 334.2 333.1 925.2 805.0 Asia 177.0 160.4 531.4 401.5 Total revenue $ 1,438.0 $ 1,440.1 $ 3,894.3 $ 3,539.1 Total revenue earned in the U.S. were $868.9 million and $2.274 billion for the three and nine months ended December 29, 2018 and $883.2 million and $2.164 billion for the three and nine months ended December 30, 2017 . Long-lived assets located in the U.S. as of December 29, 2018 and March 31, 2018 were $277.1 million and $303.3 million , respectively. |
Long-Lived Assets by Geographic Location | As of December 29, March 31, Long-lived assets, excluding goodwill: The Americas (U.S., Canada and Latin America) (1) $ 300.9 $ 327.3 EMEA 936.2 1,050.3 Asia 439.4 441.3 Total long-lived assets, excluding goodwill $ 1,676.5 $ 1,818.9 (1) Total revenue earned in the U.S. were $868.9 million and $2.274 billion for the three and nine months ended December 29, 2018 and $883.2 million and $2.164 billion for the three and nine months ended December 30, 2017 . Long-lived assets located in the U.S. as of December 29, 2018 and March 31, 2018 were $277.1 million and $303.3 million , respectively. |
Schedule of Goodwill by Segment | The following table presents the Company’s goodwill by reportable segment (in millions): As of December 29, March 31, MK Retail $ 91.9 $ 91.9 MK Wholesale 25.9 25.9 MK Licensing 1.9 1.9 Jimmy Choo 660.3 728.0 Total goodwill $ 780.0 $ 847.7 |
Business and Basis of Present_2
Business and Basis of Presentation - Additional Information (Details) $ in Millions | Nov. 01, 2017USD ($) | Dec. 29, 2018segment | Dec. 29, 2018segment |
Business Acquisition [Line Items] | |||
Number of reportable segments | segment | 4 | 4 | |
Michael Kors Bidco | Subsidiaries | Jimmy Cho PLC | |||
Business Acquisition [Line Items] | |||
Total transaction value in a business acquisition | $ | $ 1,447 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | Apr. 01, 2018USD ($) | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($)shares | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($)shares | Sep. 24, 2018EUR (€) | Sep. 24, 2018USD ($) | Mar. 31, 2018USD ($) | Jul. 25, 2017GBP (£) | Jul. 25, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Notional amounts | $ 608.1 | $ 608.1 | $ 161.7 | |||||||
Realized gain (loss) relating to derivative instruments | $ (47) | $ (32) | $ (77.4) | $ 4.7 | ||||||
Anti-dilutive securities excluded from calculation of basic and diluted net income per ordinary share (in shares) | shares | 2,022,564 | 2,243,436 | 1,117,277 | 2,503,782 | ||||||
Cumulative effect of new accounting principal in period of adoption (less than) | 11.7 | |||||||||
Return liabilities | $ 42.1 | $ 42.1 | 12.1 | |||||||
Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of new accounting principal in period of adoption (less than) | 11.7 | |||||||||
Retained Earnings | ASU 2017-12 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of new accounting principal in period of adoption (less than) | $ 0.1 | |||||||||
Retained Earnings | ASU 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of new accounting principal in period of adoption (less than) | 6.7 | |||||||||
Tax amount on cumulative effect of new accounting principal | 1.7 | |||||||||
Retained Earnings | ASU 2016-16 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of new accounting principal in period of adoption (less than) | $ 4.9 | |||||||||
Receivables, net | ASU 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Return liabilities | (16.2) | (16.2) | ||||||||
Accrued expenses and other current liabilities | ASU 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Return liabilities | 16.2 | $ 16.2 | ||||||||
Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Forward contracts term, maximum (no more than) | 12 months | |||||||||
Not Designated as Hedging Instrument | Forward Currency Exchange Contracts | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Notional amounts | $ 20.5 | $ 20.5 | $ 0 | |||||||
Gianni Versace S.r.l. | Not Designated as Hedging Instrument | Forward Currency Exchange Contracts | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Notional amounts | € 1,680,000,000 | $ 2,001 | ||||||||
Jimmy Cho PLC | Not Designated as Hedging Instrument | Forward Currency Exchange Contracts | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Notional amounts | £ 1,115,000,000 | $ 1,469 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Numerator: | ||||
Net income attributable to Capri | $ 199.6 | $ 219.4 | $ 523.6 | $ 547.8 |
Denominator: | ||||
Basic weighted average shares (in shares) | 149,183,049 | 152,047,963 | 149,420,087 | 152,772,067 |
Weighted average dilutive share equivalents: | ||||
Share options, restricted shares/units, and performance restricted share units (in shares) | 1,085,375 | 2,575,376 | 2,037,834 | 2,448,917 |
Diluted weighted average shares (in shares) | 150,268,424 | 154,623,339 | 151,457,921 | 155,220,984 |
Basic net income per share (in dollars per share) | $ 1.34 | $ 1.44 | $ 3.50 | $ 3.59 |
Diluted net income per share (in dollars per share) | $ 1.33 | $ 1.42 | $ 3.46 | $ 3.53 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact on Financial Position from Adoption of ASC 606 (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables, net | $ 291.2 | $ 294.3 | $ 290.5 |
Accrued expenses and other current liabilities | 357.3 | 291 | 295.6 |
Deferred tax liabilities | 181.6 | 188 | 186.3 |
Retained earnings | $ 4,687.3 | 4,158.7 | 4,152 |
As Reported under ASC 605 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables, net | 290.5 | ||
Accrued expenses and other current liabilities | 295.6 | ||
Deferred tax liabilities | 186.3 | ||
Retained earnings | $ 4,152 | ||
ASU 2014-09 | ASC 606 Adjustments | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables, net | 3.8 | ||
Accrued expenses and other current liabilities | (4.6) | ||
Deferred tax liabilities | 1.7 | ||
Retained earnings | 6.7 | ||
ASU 2014-09 | Product licensing revenue | ASC 606 Adjustments | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables, net | 3.5 | ||
ASU 2014-09 | Guaranteed advertising minimums | ASC 606 Adjustments | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables, net | $ 0.3 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | Apr. 01, 2018USD ($) | Dec. 29, 2018USD ($)store_format | Dec. 29, 2018USD ($)store_format | Mar. 31, 2018USD ($) |
Contract With Customer, Asset And Liability [Line Items] | ||||
Number of retail store formats | store_format | 4 | 4 | ||
Contract with customer liability | $ 25,100,000 | $ 25,100,000 | $ 23,300,000 | |
Return liabilities | 42,100,000 | 42,100,000 | 12,100,000 | |
Right to recover returned product | 11,500,000 | 11,500,000 | ||
Gift card breakage recognized to revenue | $ 4,600,000 | |||
Revenue recognized during period | 2,300,000 | 13,600,000 | ||
Contract assets | $ 0 | 0 | 0 | |
Gift Cards | ||||
Contract With Customer, Asset And Liability [Line Items] | ||||
Contract with customer liability | 11,800,000 | 11,800,000 | ||
Deferred loyalty program liabilities | ||||
Contract With Customer, Asset And Liability [Line Items] | ||||
Contract with customer liability | $ 7,500,000 | $ 7,500,000 | $ 2,200,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,438 | $ 1,440.1 | $ 3,894.3 | $ 3,539.1 |
The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 926.8 | 946.6 | 2,437.7 | 2,332.6 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 334.2 | 333.1 | 925.2 | 805 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 177 | 160.4 | 531.4 | 401.5 |
MK Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 838 | 846.3 | 2,121.4 | 2,111.2 |
MK Retail | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 557.1 | 558 | 1,354.2 | 1,335.6 |
MK Retail | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 163.9 | 168 | 422.6 | 444.3 |
MK Retail | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 117 | 120.3 | 344.6 | 331.3 |
MK Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 394.9 | 430.8 | 1,215.5 | 1,198 |
MK Wholesale | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 311.4 | 338.2 | 940.8 | 905.8 |
MK Wholesale | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 66.3 | 81.2 | 215.6 | 250.7 |
MK Wholesale | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17.2 | 11.4 | 59.1 | 41.5 |
MK Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 43.5 | 48.3 | 106.4 | 115.2 |
MK Licensing | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29.2 | 29.4 | 67.6 | 70.2 |
MK Licensing | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14.3 | 18.9 | 38.8 | 45 |
Michael Kors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,276.4 | 1,325.4 | 3,443.3 | 3,424.4 |
Jimmy Choo | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 161.6 | 114.7 | 451 | 114.7 |
Jimmy Choo | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29.1 | 21 | 75.1 | 21 |
Jimmy Choo | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 89.7 | 65 | 248.2 | 65 |
Jimmy Choo | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 42.8 | $ 28.7 | $ 127.7 | $ 28.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Nov. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Nov. 01, 2017£ / shares |
Business Acquisition [Line Items] | |||||||
Total revenue | $ 1,438,000,000 | $ 1,440,100,000 | $ 3,894,300,000 | $ 3,539,100,000 | |||
Net income | 199,600,000 | 219,400,000 | 523,600,000 | 547,800,000 | |||
Jimmy Choo | |||||||
Business Acquisition [Line Items] | |||||||
Total revenue | 161,600,000 | 114,700,000 | 451,000,000 | 114,700,000 | |||
Net income | $ 8,100,000 | $ 3,600,000 | $ 600,000 | ||||
Term Loan Facility | Unsecured debt | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||
Jimmy Cho PLC | |||||||
Business Acquisition [Line Items] | |||||||
Transaction cost associated with business acquisition | $ 22,200,000 | $ 39,600,000 | |||||
Michael Kors Bidco | Subsidiaries | Jimmy Cho PLC | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price per share (in gbp per share) | £ / shares | £ 2.30 | ||||||
Total transaction value in a business acquisition | $ 1,447,000,000 |
Acquisitions - Pro-Forma Consol
Acquisitions - Pro-Forma Consolidated Results of Operations (Details) - Jimmy Cho PLC - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 30, 2017 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | ||
Pro-forma total revenue | $ 1,478.5 | $ 3,832.6 |
Pro-forma net income | $ 242.8 | $ 574.2 |
Pro-forma net income per ordinary share attributable to Capri: | ||
Pro-forma net income per ordinary share, basic (in dollars per share) | $ 1.60 | $ 3.76 |
Pro-forma net income per ordinary share, diluted (in dollars per share) | $ 1.57 | $ 3.70 |
Receivables, net - Schedule of
Receivables, net - Schedule of Receivables (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 364.7 | $ 383.3 | |
Receivables due from licensees | 34.5 | 15.8 | |
Receivables, gross | 399.2 | 399.1 | |
Less: allowances | (108) | (108.6) | |
Receivables, net | 291.2 | $ 294.3 | 290.5 |
Credit risk assumed by insured | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 261.6 | $ 296.2 |
Receivables, net - Additional I
Receivables, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 31, 2018 | |
Receivables [Abstract] | |||||
Allowance for doubtful accounts | $ 6 | $ 6 | $ 5.1 | ||
Bad debt expense | $ 0.3 | $ 1.3 | $ 1.3 | $ 5.7 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 582.7 | $ 551 |
Furniture and fixtures | 276.9 | 270.9 |
Computer equipment and software | 275.3 | 266.3 |
In-store shops | 269.7 | 273.9 |
Equipment | 119.6 | 116.7 |
Building | 43.2 | 51.6 |
Land | 15 | 16.2 |
Property and equipment, gross | 1,582.4 | 1,546.6 |
Less: accumulated depreciation and amortization | (1,083) | (1,001.6) |
Property and equipment, net (excluding construction-in-progress) | 499.4 | 545 |
Construction-in-progress | 44.2 | 38.2 |
Property and equipment, net | $ 543.6 | $ 583.2 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization of property and equipment | $ 44.1 | $ 46.9 | $ 136.1 | $ 132.7 |
Impairment Charge | 5.9 | 15.3 | ||
MK Retail | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment Charge | 5.4 | $ 2.6 | 13.5 | $ 14.5 |
Jimmy Choo | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment Charge | $ 0.5 | $ 1.8 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Carrying Values of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets | $ 705.2 | $ 734.8 |
Accumulated Amortization | (129.4) | (113.2) |
Net | 575.8 | 621.6 |
Indefinite-lived intangible assets | 557.1 | 614.1 |
Total intangible assets, excluding goodwill | 1,132.9 | 1,235.7 |
Goodwill | 780 | 847.7 |
Reacquired rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets | 400.4 | 400.4 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets | 23 | 23 |
Lease rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets | 71.6 | 80.1 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets | $ 210.2 | $ 231.3 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 7,400,000 | $ 7,100,000 | $ 24,000,000 | $ 17,200,000 |
Impairment of intangible assets | 1,900,000 | 4,400,000 | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Current Assets and Current Li_3
Current Assets and Current Liabilities - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Apr. 01, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Restricted Cash | $ 1,921.6 | $ 0.3 | $ 0.3 | $ 1.9 |
Prepaid taxes | 114.8 | 78.5 | ||
Prepaid rent | 23 | 22.7 | ||
Leasehold incentive receivable | 10.9 | 9.4 | ||
Unrealized gains on forward foreign currency exchange contracts | 5.3 | 0 | ||
Prepaid duties | 0 | 7 | ||
Other | 43.5 | 29.9 | ||
Prepaid expenses and other current assets | $ 2,119.1 | $ 147.8 |
Current Assets and Current Li_4
Current Assets and Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Contract With Customer, Asset And Liability [Line Items] | |||
Other taxes payable | $ 63.2 | $ 54.3 | |
Accrued rent | 46.3 | 34.5 | |
Return liabilities | 42.1 | 12.1 | |
Restructuring liability | 38.3 | 44.8 | |
Accrued capital expenditures | 23.1 | 26.4 | |
Professional services | 21.1 | 14.1 | |
Accrued advertising and marketing | 16.3 | 22.6 | |
Contract with customer liability | 25.1 | 23.3 | |
Accrued samples | 10 | 2.5 | |
Accrued interest | 5.8 | 8.7 | |
Advance royalties | 5.8 | 4.1 | |
Deferred income | 3.3 | 4.3 | |
Unrealized loss on forward foreign currency exchange contracts | 0.2 | 7.7 | |
Other | 62.5 | 41.3 | |
Accrued expenses and other current liabilities | 357.3 | $ 291 | 295.6 |
Gift cards and retail store credits | |||
Contract With Customer, Asset And Liability [Line Items] | |||
Contract with customer liability | 11.8 | 16 | |
Deferred loyalty program liabilities | |||
Contract With Customer, Asset And Liability [Line Items] | |||
Contract with customer liability | $ 7.5 | $ 2.2 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) $ in Millions | May 31, 2017USD ($)Store | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 29, 2018USD ($)Store | Dec. 30, 2017USD ($) | Sep. 29, 2018Store |
Restructuring Cost and Reserve [Line Items] | ||||||
Transaction and transition costs | $ 12.2 | $ 35.3 | ||||
Jimmy Cho PLC | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Transaction and transition costs | 6.3 | $ 25.6 | 20.2 | $ 43 | ||
Gianni Versace S.r.l. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Transaction and transition costs | 5.9 | 15.1 | ||||
Lease-related costs | Jimmy Choo | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges and other charges | 3.4 | $ 4.4 | ||||
Retail Fleet Optimization Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Anticipated annual savings | $ 60 | |||||
Number of store closed | Store | 24 | 71 | ||||
Restructuring charges and other charges | $ 4.1 | 2.4 | $ 9.5 | 8.3 | ||
Retail Fleet Optimization Plan | Lease-related costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges and other charges | 2.4 | 9.3 | 7.7 | |||
Retail Fleet Optimization Plan | Severance and benefit costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges and other charges | $ 0 | $ 0.2 | $ 0.6 | |||
Retail Fleet Optimization Plan | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of stores expected to close | Store | 100 | |||||
Expected restructuring charges | $ 100 | |||||
Retail Fleet Optimization Plan | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of stores expected to close | Store | 125 | |||||
Expected restructuring charges | $ 125 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at March 31, 2018 | $ 44.8 | |||
Balance at December 29, 2018 | $ 38.3 | 38.3 | ||
Retail Fleet Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at March 31, 2018 | 44.8 | |||
Additions charged to expense | 4.1 | $ 2.4 | 9.5 | $ 8.3 |
Balance sheet reclassifications | 2.1 | |||
Payments | (21) | |||
Balance at December 29, 2018 | 35.4 | 35.4 | ||
Severance and benefit costs | Retail Fleet Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at March 31, 2018 | 0.2 | |||
Additions charged to expense | 0 | 0.2 | 0.6 | |
Balance sheet reclassifications | 0 | |||
Payments | (0.3) | |||
Balance at December 29, 2018 | 0.1 | 0.1 | ||
Lease-related costs | Retail Fleet Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at March 31, 2018 | 44.6 | |||
Additions charged to expense | $ 2.4 | 9.3 | $ 7.7 | |
Balance sheet reclassifications | 2.1 | |||
Payments | (20.7) | |||
Balance at December 29, 2018 | $ 35.3 | $ 35.3 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total debt | $ 2,550.9 | $ 880.7 |
Less: Unamortized debt issuance costs | 15 | 4.2 |
Less: Unamortized discount on long-term debt | 1.8 | 2.1 |
Total carrying value of debt | 2,534.1 | 874.4 |
Less: Short-term debt | 579.4 | 200 |
Long-term debt | 1,954.7 | 674.4 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 1,600 | 229.8 |
Repayments of debt | 59 | |
Credit Facility | Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Total debt | 500 | 200 |
4.000% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 450 | 450 |
Stated interest rate percentage | 4.00% | |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0.9 | $ 0.9 |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Revolving Credit Facility (Details) | Dec. 21, 2018USD ($) | Nov. 15, 2018USD ($)tranche | Dec. 29, 2018USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Total debt | $ 2,550,900,000 | $ 880,700,000 | ||
Short-term debt | 579,400,000 | 200,000,000 | ||
Gianni Versace S.r.l. | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 79,400,000 | |||
Credit Facility | 2018 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio on credit facility | 3.75 | |||
Revolving Credit Facilities | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total debt | 500,000,000 | $ 200,000,000 | ||
Letter of credit outstanding | 17,000,000 | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | ||
Additional borrowing capacity | $ 500,000,000 | |||
Proceeds from lines of credit | 350,000,000 | |||
Amount available for future borrowings | 483,000,000 | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | Federal Funds Effective Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 0.50% | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | Adjusted LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.00% | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | Canadian Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.00% | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | CDOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 0.10% | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on credit facility | 0.10% | |||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on credit facility | 0.25% | |||
Letter of Credit | Credit Facility | 2018 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 75,000,000 | |||
Swing Line | Credit Facility | 2018 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 75,000,000 | |||
2018 Term Loan Facility | Credit Facility | 2018 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,600,000,000 | $ 1,600,000,000 | 1,509,000,000 | |
Number of tranches on debt instrument | tranche | 2 | |||
Periodic payment amount, percentage of original principal | 2.50% | |||
Borrowings outstanding | 1,588,000,000 | |||
Debt issuance costs | $ 11,900,000 | |||
2018 Term Loan Facility | Credit Facility | 2018 Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on credit facility | 0.10% | |||
2018 Term Loan Facility | Credit Facility | 2018 Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on credit facility | 0.25% | |||
2018 Term Loan Facility | Credit Facility | 2018 Credit Facility | Second anniversary | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 800,000,000 | |||
2018 Term Loan Facility | Credit Facility | 2018 Credit Facility | Fifth anniversary | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 800,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 20.7 | $ 0 |
Derivative liabilities | 0.2 | 7.7 |
Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 20.7 | 0 |
Derivative liabilities | 0.2 | 7.7 |
Fair value, measurements, recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 5.3 | 0 |
Derivative liabilities | 0.2 | 7.7 |
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Net investment hedges | Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Net investment hedges | Fair value, measurements, recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 15.4 | 0 |
Derivative liabilities | 0 | 0 |
Net investment hedges | Fair value, measurements, recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Measurement of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
4.000% Senior Notes | Carrying Value Prior to Impairment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | $ 445.1 | $ 444.5 |
4.000% Senior Notes | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | 423 | 448.1 |
Term Loan | Carrying Value Prior to Impairment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | 1,588.1 | 229 |
Term Loan | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | 1,595 | 231.2 |
Revolving Credit Facilities | Carrying Value Prior to Impairment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | 500 | 200 |
Revolving Credit Facilities | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value disclosure | $ 500 | $ 200 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Impaired Long-lived Assets Carrying Value and Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment Charge | $ 5.9 | $ 15.3 | ||
Significant unobservable inputs (Level 3) | Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value Prior to Impairment | 6.1 | $ 3.5 | 23.7 | $ 21.5 |
Fair Value | 0.2 | 0.9 | 6.5 | 2.6 |
Impairment Charge | 5.9 | 2.6 | 17.2 | 18.9 |
Fixed Assets | Significant unobservable inputs (Level 3) | Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value Prior to Impairment | 6.1 | 3.5 | 20.3 | 16.9 |
Fair Value | 0.2 | 0.9 | 5 | 2.4 |
Impairment Charge | 5.9 | 2.6 | 15.3 | 14.5 |
Leasing rights | Lease Rights | Significant unobservable inputs (Level 3) | Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value Prior to Impairment | 0 | 0 | 3.4 | 3.6 |
Fair Value | 0 | 0 | 1.5 | 0.2 |
Impairment Charge | $ 0 | 0 | $ 1.9 | 3.4 |
Customer relationships | Lease Rights | Significant unobservable inputs (Level 3) | Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value Prior to Impairment | 0 | 1 | ||
Fair Value | 0 | 0 | ||
Impairment Charge | $ 0 | $ 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | Dec. 21, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Mar. 30, 2019USD ($) | Sep. 24, 2018EUR (€) | Sep. 24, 2018USD ($) | Mar. 31, 2018USD ($) | Jul. 25, 2017GBP (£) | Jul. 25, 2017USD ($) |
Derivative [Line Items] | |||||||||||
Notional amounts | $ 608,100,000 | $ 608,100,000 | $ 161,700,000 | ||||||||
Realized gain (loss) relating to derivative instruments | (47,000,000) | $ (32,000,000) | (77,400,000) | $ 4,700,000 | |||||||
Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | 587,600,000 | 587,600,000 | 161,700,000 | ||||||||
Forward Currency Exchange Contracts | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | 20,500,000 | 20,500,000 | 0 | ||||||||
Foreign Currency Gain (Loss) | Forward Currency Exchange Contracts | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Net gains (losses) on undesignated derivative contracts | (46,800,000) | $ (31,800,000) | (75,700,000) | $ 3,400,000 | |||||||
Gianni Versace S.r.l. | Forward Currency Exchange Contracts | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | € 1,680,000,000 | $ 2,001,000,000 | |||||||||
Jimmy Cho PLC | Forward Currency Exchange Contracts | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | £ 1,115,000,000 | $ 1,469,000,000 | |||||||||
Japan, Yen | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | 44,000,000 | 44,000,000 | |||||||||
Net investment hedging | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | 434,000,000 | 434,000,000 | $ 0 | ||||||||
Reduction in interest expense | 2,800,000 | 6,700,000 | |||||||||
Net investment hedging | Euro | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | $ 390,000,000 | $ 390,000,000 | |||||||||
Derivative fixed interest rate | 1.585% | 1.585% | |||||||||
Net investment hedging | Japan, Yen | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative fixed interest rate | 0.89% | 0.89% | |||||||||
Net investment hedging | US Dollars | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative fixed interest rate | 1.472% | 1.472% | |||||||||
Subsequent event | Net investment hedging | Euro | Net investment hedges | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amounts | $ 1,500,000,000 | ||||||||||
Revolving Credit Facilities | Credit Facility | 2018 Credit Facility | |||||||||||
Derivative [Line Items] | |||||||||||
Proceeds from lines of credit | $ 350,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 608.1 | $ 161.7 |
Forward foreign currency exchange contracts - Assets | 20.7 | 0 |
Forward foreign currency exchange contracts - Liabilities | 0.2 | 7.7 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 587.6 | 161.7 |
Forward foreign currency exchange contracts - Assets | 18.9 | 0 |
Forward foreign currency exchange contracts - Liabilities | 0.2 | 7.7 |
Not Designated as Hedging Instrument | Forward Currency Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 20.5 | 0 |
Forward foreign currency exchange contracts - Assets | 1.8 | 0 |
Forward foreign currency exchange contracts - Liabilities | 0 | 0 |
Cash flow hedging | Designated as Hedging Instrument | Forward Currency Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 153.6 | 161.7 |
Forward foreign currency exchange contracts - Assets | 3.5 | 0 |
Forward foreign currency exchange contracts - Liabilities | 0.2 | 7.7 |
Net investment hedging | Designated as Hedging Instrument | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 434 | 0 |
Forward foreign currency exchange contracts - Assets | 15.4 | 0 |
Forward foreign currency exchange contracts - Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Cash flow hedging | Forward Currency Exchange Contracts | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | $ 5.3 | $ 0 |
Liabilities subject to master netting arrangements | 0.2 | 7.7 |
Derivative assets, net | 5.3 | 0 |
Derivative liabilities, net | 0.2 | 7.7 |
Net investment hedging | Net investment hedges | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | 15.4 | 0 |
Liabilities subject to master netting arrangements | 0 | 0 |
Derivative assets, net | 15.4 | 0 |
Derivative liabilities, net | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Pre-tax Impact of Gains (Losses) on Derivative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Forward Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in OCI (Effective Portion) | $ 2.5 | $ (2.4) | $ 12.2 | $ (17.7) |
Net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in OCI (Effective Portion) | $ 10.8 | $ 0 | $ 15.4 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Pretax Impact of Gain (Loss) Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of goods sold | $ 564.8 | $ 556.1 | $ 1,507.2 | $ 1,389.6 |
Forward Currency Exchange Contracts | Cost of sales | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax (Gain) Loss Reclassified from Accumulated OCI | $ (0.6) | $ 2.2 | $ 6.3 | $ (1) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 9 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||
Ordinary shares repurchased, value | $ 207,200,000 | |
Share Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Ordinary shares repurchased (in shares) | 3,718,237 | 4,543,500 |
Ordinary shares repurchased, value | $ 200,000,000 | $ 157,800,000 |
Share repurchase program, authorized amount | 1,000,000,000 | |
Ordinary shares repurchased, remaining availability | $ 442,200,000 | |
Withhold to Cover Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Ordinary shares repurchased (in shares) | 107,712 | 92,536 |
Ordinary shares repurchased, value | $ 7,200,000 | $ 3,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Changes in Components of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,021.5 | ||||
Other comprehensive (loss) income, net of tax | (143.5) | ||||
Ending balance | $ 2,267.1 | 2,267.1 | |||
Foreign currency translation adjustments | (31.7) | $ 41.6 | (159.9) | $ 78.7 | |
Foreign Currency Translation (Losses) Gains | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 61.2 | (86.1) | |||
Other comprehensive (loss) income before reclassifications | (159.8) | 78.6 | |||
Less: amounts reclassified from AOCI to earnings | 0 | 0 | |||
Other comprehensive (loss) income, net of tax | (159.8) | 78.6 | |||
Ending balance | (98.6) | (7.5) | (98.6) | (7.5) | |
Net gain (loss) on long-term transactions | 9.5 | (4.4) | |||
Gain related to net investment hedges | 12.8 | 12.8 | |||
Taxes related to the gain on net investment hedges | 2.6 | ||||
Foreign Currency Translation (Losses) Gains | Jimmy Cho PLC | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Foreign currency translation adjustments | (139.3) | 35.2 | |||
Net Gains (Losses) on Derivatives | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (10.7) | 5.5 | |||
Other comprehensive (loss) income before reclassifications | 10.9 | (15.4) | |||
Less: amounts reclassified from AOCI to earnings | (5.5) | 1 | |||
Other comprehensive (loss) income, net of tax | 16.4 | (16.4) | |||
Ending balance | 5.7 | (10.9) | 5.7 | (10.9) | |
Accumulated other comprehensive income, tax provision (benefit) | 0.7 | 0.7 | $ (1.4) | ||
Tax benefit of amount reclassified from AOCI | 0.8 | ||||
Other comprehensive income (loss) before reclassifications, tax provision | 1.3 | 2.3 | |||
Other Comprehensive (Loss) Income Attributable to Capri | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 50.5 | (80.6) | |||
Other comprehensive (loss) income before reclassifications | (148.9) | 63.2 | |||
Less: amounts reclassified from AOCI to earnings | (5.5) | 1 | |||
Other comprehensive (loss) income, net of tax | (143.4) | 62.2 | |||
Ending balance | (92.9) | (18.4) | (92.9) | (18.4) | |
Other Comprehensive (Loss) Income Attributable to Noncontrolling Interest | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (0.2) | (0.3) | |||
Other comprehensive (loss) income before reclassifications | (0.1) | 0.1 | |||
Less: amounts reclassified from AOCI to earnings | 0 | 0 | |||
Other comprehensive (loss) income, net of tax | (0.1) | 0.1 | |||
Ending balance | (0.3) | (0.2) | (0.3) | (0.2) | |
Total Accumulated Other Comprehensive (Loss) Income | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 50.3 | (80.9) | |||
Other comprehensive (loss) income before reclassifications | (149) | 63.3 | |||
Less: amounts reclassified from AOCI to earnings | (5.5) | 1 | |||
Other comprehensive (loss) income, net of tax | (143.5) | 62.3 | |||
Ending balance | $ (93.2) | $ (18.6) | $ (93.2) | $ (18.6) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 9 Months Ended | |
Dec. 29, 2018USD ($)equity_plan$ / sharesshares | Dec. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity plans | equity_plan | 2 | |
Weighted average grant date fair value of option (in dollars per share) | $ / shares | $ 24.49 | $ 11.62 |
Estimated value of future forfeitures | $ | $ 10.6 | |
Service-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of RSUs (in dollar per share) | $ / shares | $ 67.03 | 37.33 |
Performance-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of RSUs (in dollar per share) | $ / shares | $ 67.52 | $ 34.68 |
2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity plans adopted | equity_plan | 1 | |
Shares authorized for issuance (up to) (in shares) | 23,980,823 | |
Shares available for grant (in shares) | 0 | |
Option expiration period (years) | 10 years | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized for issuance (up to) (in shares) | 15,246,000 | |
Shares available for grant (in shares) | 6,250,146 | |
Option expiration period (years) | 7 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Activity (Details) | 9 Months Ended |
Dec. 29, 2018shares | |
Options | |
Number of Options | |
Outstanding at beginning of period (in shares) | 3,796,620 |
Granted (in shares) | 224,582 |
Exercised (in shares) | (1,659,918) |
Canceled/forfeited (in shares) | (25,507) |
Outstanding at end of period (in shares) | 2,335,777 |
Restricted Shares | |
Number of Unvested Restricted Shares | |
Unvested at beginning of period (in shares) | 64,148 |
Granted (in shares) | 0 |
Vested (in shares) | (63,719) |
Decrease due to performance condition (in shares) | 0 |
Canceled/forfeited (in shares) | (429) |
Unvested at end of period (in shares) | 0 |
Service-Based RSUs | |
Number of Unvested Restricted Shares | |
Unvested at beginning of period (in shares) | 2,127,517 |
Granted (in shares) | 839,392 |
Vested (in shares) | (675,649) |
Decrease due to performance condition (in shares) | 0 |
Canceled/forfeited (in shares) | (129,817) |
Unvested at end of period (in shares) | 2,161,443 |
Performance-Based RSUs | |
Number of Unvested Restricted Shares | |
Unvested at beginning of period (in shares) | 657,532 |
Granted (in shares) | 166,617 |
Vested (in shares) | (105,900) |
Decrease due to performance condition (in shares) | (101,744) |
Canceled/forfeited (in shares) | (29,477) |
Unvested at end of period (in shares) | 587,028 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Estimate Fair Value of Options (Details) - Options | 9 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Volatility factor | 36.90% | 36.30% |
Weighted average risk-free interest rate | 2.80% | 1.80% |
Expected life of option | 4 years 10 months 7 days | 4 years 8 months 8 days |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Compensation Expense Attributable to Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense | $ 11.9 | $ 8.5 | $ 38.3 | $ 29.6 |
Tax benefit (deficit) related to share-based compensation expense | $ 2 | $ (0.6) | $ 7 | $ 6.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate | 17.30% | 21.20% | 12.70% | 18.00% | |
Unrecognized tax benefits | $ 126.6 | $ 126.6 | $ 107.4 | ||
Decrease in unrecognized tax benefits is possible in the next twelve months | $ 37.8 | $ 37.8 | |||
United Kingdom | Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Provision for incomes taxes at the U.K. statutory tax rate | 19.00% |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 29, 2018 | Dec. 29, 2018 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | |
Number of reportable segments | 4 | 4 |
Segment Information - Key Perfo
Segment Information - Key Performance Information of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,438 | $ 1,440.1 | $ 3,894.3 | $ 3,539.1 |
Income from operations | 290 | 313.5 | 694.6 | 662 |
MK Retail | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 838 | 846.3 | 2,121.4 | 2,111.2 |
Income from operations | 149.9 | 180.4 | 310.3 | 341.6 |
MK Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 394.9 | 430.8 | 1,215.5 | 1,198 |
Income from operations | 108.6 | 100.5 | 336.2 | 263.6 |
MK Licensing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 43.5 | 48.3 | 106.4 | 115.2 |
Income from operations | 26 | 26.9 | 44.9 | 51.1 |
Michael Kors | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,276.4 | 1,325.4 | 3,443.3 | 3,424.4 |
Income from operations | 284.5 | 307.8 | 691.4 | 656.3 |
Jimmy Choo | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 161.6 | 114.7 | 451 | 114.7 |
Income from operations | $ 5.5 | $ 5.7 | $ 3.2 | $ 5.7 |
Segment Information - Depreciat
Segment Information - Depreciation and Amortization Expense for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 51.5 | $ 54 | $ 160.1 | $ 149.9 |
MK Retail | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 30.8 | 33.7 | 95.4 | 98.8 |
MK Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 11.5 | 13.9 | 38 | 43.5 |
MK Licensing | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 0.6 | 0.6 | 1.7 | 1.8 |
Michael Kors | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 42.9 | 48.2 | 135.1 | 144.1 |
Jimmy Choo | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 8.6 | $ 5.8 | $ 25 | $ 5.8 |
Segment Information - Total Rev
Segment Information - Total Revenue (as Recognized Based on Country of Origin), and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 1,438 | $ 1,440.1 | $ 3,894.3 | $ 3,539.1 | |
Long-lived assets, excluding goodwill | 1,676.5 | 1,676.5 | $ 1,818.9 | ||
The Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 926.8 | 946.6 | 2,437.7 | 2,332.6 | |
Long-lived assets, excluding goodwill | 300.9 | 300.9 | 327.3 | ||
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 334.2 | 333.1 | 925.2 | 805 | |
Long-lived assets, excluding goodwill | 936.2 | 936.2 | 1,050.3 | ||
Asia | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 177 | 160.4 | 531.4 | 401.5 | |
Long-lived assets, excluding goodwill | 439.4 | 439.4 | 441.3 | ||
U.S. | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 868.9 | $ 883.2 | 2,274 | $ 2,164 | |
Long-lived assets, excluding goodwill | $ 277.1 | $ 277.1 | $ 303.3 |
Segment Information - Schedule
Segment Information - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Mar. 31, 2018 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total goodwill | $ 780 | $ 847.7 |
MK Retail | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total goodwill | 91.9 | 91.9 |
MK Wholesale | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total goodwill | 25.9 | 25.9 |
MK Licensing | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total goodwill | 1.9 | 1.9 |
Jimmy Choo | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total goodwill | $ 660.3 | $ 728 |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions, shares in Millions | Dec. 31, 2018EUR (€)shares | Dec. 31, 2018USD ($)shares | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Mar. 31, 2018USD ($) |
Subsequent Event [Line Items] | |||||
Notional amounts | $ 608,100,000 | $ 161,700,000 | |||
Designated as Hedging Instrument | |||||
Subsequent Event [Line Items] | |||||
Notional amounts | 587,600,000 | 161,700,000 | |||
Net investment hedging | Designated as Hedging Instrument | Cross currency contract | |||||
Subsequent Event [Line Items] | |||||
Notional amounts | 434,000,000 | $ 0 | |||
Net investment hedging | Designated as Hedging Instrument | Cross currency contract | Euro | |||||
Subsequent Event [Line Items] | |||||
Notional amounts | $ 390,000,000 | ||||
Subsequent event | Net investment hedging | Designated as Hedging Instrument | Cross currency contract | Euro | |||||
Subsequent Event [Line Items] | |||||
Notional amounts | $ 1,500,000,000 | ||||
Subsequent event | Gianni Versace S.r.l. | |||||
Subsequent Event [Line Items] | |||||
Total transaction value in a business acquisition | € 1,753 | $ 2,005,000,000 | |||
Shares acquired (in shares) | shares | 2.4 | 2.4 |