Segment Information

12 Months Ended

Mar. 29, 2014

Segment Information

16. Segment Information

The Company operates its business through three operating segments—Retail, Wholesale and Licensing—which are based on its business activities and organization. The operating segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of Licensing) 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. Sales of the Company’s products through Company owned stores for the Retail segment include “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout North America, Europe, and Japan. Products sold through the Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), footwear and licensed products, such as watches, fragrances and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout North America and Europe. Products sold through the Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products in certain geographical regions such as South Korea, the Philippines, Singapore, Malaysia, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau, Taiwan, Latin America and the Caribbean, and India. 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 specific usage or other allocation methods.

The Company has allocated $12.1 million and $1.9 million of its recorded goodwill to its Wholesale and Licensing segments, respectively. The Company does not have identifiable assets separated by segment. The following table presents the key performance information of the Company’s reportable segments (in thousands):

	Fiscal Years Ended
	March 29, 2014		March 30, 2013		March 31, 2012
Revenue:
Net sales: Retail	$	1,593,005	$	1,062,642	$	626,940
Wholesale		1,577,517		1,032,115		610,160
Licensing		140,321		86,975		65,154
Total revenue	$	3,310,843	$	2,181,732	$	1,302,254
Income from operations:
Retail	$	467,248	$	315,654	$	121,851
Wholesale		459,774		269,323		85,000
Licensing		81,149		45,037		40,831
Income from operations	$	1,008,171	$	630,014	$	247,682

Depreciation and amortization expense for each segment are as follows (in thousands):

	Fiscal Years Ended
	March 29, 2014		March 30, 2013		March 31, 2012
Depreciation:
Retail(1)	$	46,679	$	35,388	$	25,293
Wholesale		32,364		18,531		12,012
Licensing		611		372		249
Total depreciation	$	79,654	$	54,291	$	37,554

(1) Excluded in the above table are impairment charges related to the retail segment for $1.3 million, $0.7 million, and $3.3 million, during the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012, respectively.

Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands):

	Fiscal Years Ended
	March 29, 2014		March 30, 2013		March 31, 2012
Net revenues:
North America (U.S. and Canada)	$	2,771,818	$	1,938,635	$	1,183,234
Europe		500,478		220,724		108,790
Other regions		38,547		22,373		10,230
Total net revenues	$	3,310,843	$	2,181,732	$	1,302,254

	As of
	March 29, 2014		March 30, 2013
Long-lived assets:
North America (U.S. and Canada)	$	283,162	$	209,973
Europe		108,074		46,154
Other regions		7,476		6,966
Total Long-lived assets:	$	398,712	$	263,093