Intangible Assets and Goodwill

3 Months Ended

Jul. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table details the carrying values of the Company's intangible assets that are subject to amortization (in millions):



	July 2, 2016						April 2, 2016
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Reacquired rights	$	400.4	$	1.4	$	399.0	$	—	$	—	$	—
Lease rights	72.4		19.2		53.2		73.3		17.8		55.5
Trademarks	23.0		15.4		7.6		23.0		15.1		7.9
Customer relationships	4.9		0.4		4.5		4.2		0.2		4.0
	$	500.7	$	36.4	$	464.3	$	100.5	$	33.1	$	67.4

Reacquired rights relate to the Company's reacquisition of the rights to use its trademarks and to import, sell, advertise and promote certain of its products in the previously licensed territories in the Greater China region and are being amortized through March 31, 2041, the expiration date of the related license agreement. Lease rights are amortized over the respective terms of the underlying lease, including highly probable renewal periods. Trademarks relate to the Company’s brand name and are amortized over twenty years. Customer relationships are amortized over five to ten years. Amortization expense for the three months ended July 2, 2016 and June 27, 2015 was $3.5 million and $1.9 million, respectively.

Estimated amortization expense for each of the next five years is as follows (in millions):



Remainder of Fiscal 2017	$	18.5
Fiscal 2018	24.7
Fiscal 2019	24.6
Fiscal 2020	24.6
Fiscal 2021	24.4
Thereafter	347.5
	$	464.3

The following table details the changes in goodwill for each of the Company's reportable segments (in millions):



	Retail		Wholesale		Licensing		Total
Balance at April 2, 2016	$	8.0	$	13.3	$	1.9	$	23.2
Acquisition of MKHKL	86.2		12.8		—		99.0
Balance at July 2, 2016	$	94.2	$	26.1	$	1.9	$	122.2

Goodwill is not amortized but will be evaluated for impairment in the fourth quarter of Fiscal 2017, or whenever impairment indicators exist. There were no impairment charges recorded for any of the Company's intangible assets during the fiscal periods presented.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details