Segment Information

6 Months Ended

Sep. 26, 2015

Segment Reporting [Abstract]

Segment Information

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. The Company’s Retail segment includes sales through the Company owned stores, including “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout the Americas (U.S., Canada and Latin America), Europe, and Japan, as well as the Company’s e-commerce sales. 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, jewelry, fragrances and beauty, and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout the Americas, Europe and Asia. 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. We also have wholesale arrangements pursuant to which we sell products to certain of our licensees, including our licensees in Asia (which were previously reported within our Americas wholesale operations). 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 geographic regions such as the Middle East, Eastern Europe, Latin America and the Caribbean, throughout all of Asia (excluding Japan), as well as Australia. 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 $14.8 million, $9.5 million and $1.9 million of its recorded $26.2 million goodwill to its Wholesale, Retail and Licensing segments, respectively. See Note 3 for goodwill recorded upon the Company's acquisition of controlling interest in MK Panama during the second quarter of Fiscal 2016. 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):

	Three Months Ended				Six Months Ended
	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Revenue:
Net sales: Retail	$	532,815	$	495,579	$	1,056,115	$	975,821
Wholesale	554,014		514,090		977,973		920,885
Licensing	43,152		46,936		81,868		79,053
Total revenue	$	1,129,981	$	1,056,605	$	2,115,956	$	1,975,759
Income from operations:
Retail	$	99,959	$	127,334	$	220,833	$	270,023
Wholesale	156,880		156,672		263,190		274,324
Licensing	16,247		21,552		37,686		37,982
Income from operations	$	273,086	$	305,558	$	521,709	$	582,329

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

	Three Months Ended				Six Months Ended
	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Depreciation and amortization:
Retail	$	28,399	$	22,022	$	53,490	$	39,987
Wholesale	17,412		11,723		33,514		22,498
Licensing	353		319		713		577
Total depreciation and amortization	$	46,164	$	34,064	$	87,717	$	63,062

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):

	Three Months Ended				Six Months Ended
	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Revenues:
The Americas (U.S., Canada and L. America)(1)	$	838,215	$	802,226	$	1,565,510	$	1,521,115
Europe	243,371		237,924		460,184		423,421
Other regions	48,395		16,455		90,262		31,223
Total revenues	$	1,129,981	$	1,056,605	$	2,115,956	$	1,975,759

	As of
	September 26, 2015		March 28, 2015
Long-lived assets:
The Americas (U.S., Canada and Latin America)(1)	$	495,411	$	443,816
Europe	228,076		169,243
Other regions	18,167		11,416
Total Long-lived assets	$	741,654	$	624,475

⁽¹⁾  Net revenues earned in the U.S. were $786.5 million and $1,471.3 million, respectively, during the three months and six months ended September 26, 2015 and were $752.8 million and $1,427.1 million, respectively, during the three months and six months ended September 27, 2014. Long-lived assets located in the U.S. as of September 26, 2015 and March 28, 2015 were $462.1 million and $418.8 million, respectively.