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Segment Information
 9 Months Ended
Dec. 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), men's apparel, 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, 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 $13.3 million, $8.0 million and $1.9 million of its recorded $23.2 million goodwill as of December 26, 2015 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. As of March 28, 2015, the Company's goodwill balance of $14.0 million was allocated $12.1 million and $1.9 million to the Company's 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):
 
Three Months Ended
 
Nine Months Ended
 
December 26,
2015
 
December 27,
2014
 
December 26,
2015
 
December 27,
2014
Revenue:
 
 
 
 
 
 
 
Net sales: Retail
$
766,225

 
$
689,388

 
$
1,822,340

 
$
1,665,209

Wholesale
575,453

 
573,838

 
1,553,426

 
1,494,723

Licensing
55,801

 
51,500

 
137,669

 
130,553

Total revenue
$
1,397,479

 
$
1,314,726

 
$
3,513,435

 
$
3,290,485

Income from operations:
 
 
 
 
 
 
 
Retail
$
212,856

 
$
214,928

 
$
433,689

 
$
484,951

Wholesale
160,269

 
170,487

 
423,459

 
444,811

Licensing
36,183

 
33,062

 
73,869

 
71,044

Income from operations
$
409,308

 
$
418,477

 
$
931,017

 
$
1,000,806


Depreciation and amortization expense for each segment are as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
December 26,
2015
 
December 27,
2014
 
December 26,
2015
 
December 27,
2014
Depreciation and amortization:
 
 
 
 
 
 
 
Retail
$
27,308

 
$
22,414

 
$
80,798

 
$
62,401

Wholesale
17,383

 
15,007

 
50,897

 
37,505

Licensing
323

 
71

 
1,036

 
648

Total depreciation and amortization
$
45,014

 
$
37,492

 
$
132,731

 
$
100,554


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
 
Nine Months Ended
 
December 26,
2015
 
December 27,
2014
 
December 26,
2015
 
December 27,
2014
Revenue:
 
 
 
 
 
 
 
       The Americas (U.S., Canada and L. America)(1)
$
1,062,016

 
$
1,057,281

 
$
2,627,526

 
$
2,578,396

Europe
275,992

 
241,415

 
736,176

 
664,836

Asia
59,471

 
16,030

 
149,733

 
47,253

Total revenue
$
1,397,479

 
$
1,314,726

 
$
3,513,435

 
$
3,290,485


 
As of
 
December 26,
2015
 
March 28,
2015
Long-lived assets:
 
 
 
       The Americas (U.S., Canada and Latin America)(1)
$
518,488

 
$
443,816

Europe
263,173

 
169,243

Asia
24,565

 
11,416

Total Long-lived assets
$
806,226

 
$
624,475

 
 
(1) 
Net revenues earned in the U.S. were $997.7 million and $2.469 billion, respectively, during the three months and nine months ended December 26, 2015 and were $998.5 million and $2.426 billion, respectively, during the three months and nine months ended December 27, 2014. Long-lived assets located in the U.S. as of December 26, 2015 and March 28, 2015 were $483.1 million and $418.8 million, respectively.