| Taxes
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Balance Beginning of Year | Amounts Charged to Revenue | Write-offs Against Reserves | Balance at Year End | ||||||||||||
Retail | |||||||||||||||
Return Reserves: | |||||||||||||||
Fiscal year ended April 1, 2017 | $ | 4.7 | $ | 102.4 | $ | (99.8 | ) | $ | 7.3 | ||||||
Fiscal year ended April 2, 2016 | 2.5 | 71.7 | (69.5 | ) | 4.7 | ||||||||||
Fiscal year ended March 28, 2015 | 2.3 | 57.0 | (56.8 | ) | 2.5 |
Balance Beginning of Year | Amounts Charged to Revenue | Write-offs Against Reserves | Balance at Year End | ||||||||||||
Wholesale | |||||||||||||||
Total Sales Reserves: | |||||||||||||||
Fiscal year ended April 1, 2017 | $ | 110.9 | $ | 271.1 | $ | (285.3 | ) | $ | 96.7 | ||||||
Fiscal year ended April 2, 2016 | 87.5 | 348.4 | (325.0 | ) | 110.9 | ||||||||||
Fiscal year ended March 28, 2015 | 65.9 | 281.0 | (259.4 | ) | 87.5 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Numerator: | |||||||||||
Net income attributable to MKHL | $ | 552.5 | $ | 839.1 | $ | 881.0 | |||||
Denominator: | |||||||||||
Basic weighted average shares | 165,986,733 | 186,293,295 | 202,680,572 | ||||||||
Weighted average dilutive share equivalents: | |||||||||||
Share options and restricted shares/units, and performance restricted share units | 2,137,080 | 2,760,994 | 3,185,197 | ||||||||
Diluted weighted average shares | 168,123,813 | 189,054,289 | 205,865,769 | ||||||||
Basic net income per share | $ | 3.33 | $ | 4.50 | $ | 4.35 | |||||
Diluted net income per share | $ | 3.29 | $ | 4.44 | $ | 4.28 |
|
May 31, 2016 | |||
Cash and cash equivalents | $ | 19.4 | |
Accounts receivable | 22.3 | ||
Inventory | 36.1 | ||
Other current assets | 5.5 | ||
Current assets | 83.3 | ||
Property and equipment | 46.6 | ||
Goodwill | 96.5 | ||
Reacquired rights | 400.4 | ||
Favorable lease assets | 1.8 | ||
Customer relationships | 0.7 | ||
Deferred tax assets | 7.8 | ||
Other assets | 6.6 | ||
Total assets acquired | $ | 643.7 | |
Accounts payable | $ | 8.9 | |
Short-term debt | 5.8 | ||
Other current liabilities | 27.8 | ||
Current liabilities | 42.5 | ||
Unfavorable lease liabilities | 4.8 | ||
Deferred tax liabilities | 92.3 | ||
Other liabilities | 4.1 | ||
Total liabilities assumed | $ | 143.7 | |
Fair value of net assets acquired | $ | 500.0 | |
Fair value of acquisition consideration | $ | 500.0 |
Fiscal Years Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Pro-forma total revenue | $ | 4,520.1 | $ | 4,839.1 | |||
Pro-forma net income | 548.7 | 832.2 | |||||
Pro-forma net income per ordinary share attributable to MKHL: | |||||||
Basic | $ | 3.31 | $ | 4.47 | |||
Diluted | $ | 3.26 | $ | 4.40 |
January 1, 2016 | |||
Inventory | $ | 3.0 | |
Fixed assets | 2.1 | ||
Customer relationship intangible assets | 2.2 | ||
Fair value of assets acquired | 7.3 | ||
Less: consideration paid | 3.6 | ||
Gain on acquisition of MK Korea | $ | 3.7 |
June 28, 2015 | |||
Current assets | $ | 25.9 | |
Fixed assets | 6.4 | ||
Customer relationship intangible assets | 2.0 | ||
Goodwill | 9.2 | ||
Debt obligations | (9.5 | ) | |
Other liabilities | (2.3 | ) | |
Total fair value of net assets of MK Panama | 31.7 | ||
Fair value of preexisting interest in MK Panama | 8.1 | ||
Non-controlling interest | 5.1 | ||
Fair value of consideration provided | $ | 18.5 |
|
April 1, 2017 | April 2, 2016 | ||||||
Trade receivables: | |||||||
Credit risk assumed by insured/factors | $ | 294.0 | $ | 353.7 | |||
Credit risk retained by Company | 63.8 | 61.8 | |||||
Receivables due from licensees | 11.9 | 9.5 | |||||
369.7 | 425.0 | ||||||
Less allowances: | (103.9 | ) | (117.1 | ) | |||
$ | 265.8 | $ | 307.9 |
|
|
April 1, 2017 | April 2, 2016 | ||||||
Leasehold improvements | $ | 507.9 | $ | 414.6 | |||
In-store shops | 256.0 | 242.9 | |||||
Furniture and fixtures | 244.1 | 212.7 | |||||
Computer equipment and software | 226.2 | 167.9 | |||||
Equipment | 104.4 | 79.1 | |||||
Building | 40.6 | — | |||||
Land | 14.0 | 15.1 | |||||
1,393.2 | 1,132.3 | ||||||
Less: accumulated depreciation and amortization | (833.9 | ) | (490.9 | ) | |||
559.3 | 641.4 | ||||||
Construction-in-progress | 32.2 | 116.8 | |||||
$ | 591.5 | $ | 758.2 |
|
April 1, 2017 | April 2, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Reacquired Rights | $ | 400.4 | $ | 13.4 | $ | 387.0 | $ | — | $ | — | $ | — | |||||||||||
Trademarks | 23.0 | 16.3 | 6.7 | 23.0 | 15.1 | 7.9 | |||||||||||||||||
Lease Rights | 74.2 | 53.8 | (1) | 20.4 | 73.3 | 17.8 | 55.5 | ||||||||||||||||
Customer Relationships | 5.0 | 1.0 | 4.0 | 4.2 | 0.2 | 4.0 | |||||||||||||||||
$ | 502.6 | $ | 84.5 | $ | 418.1 | $ | 100.5 | $ | 33.1 | $ | 67.4 |
Fiscal 2018 | $ | 20.4 | |
Fiscal 2019 | 20.4 | ||
Fiscal 2020 | 20.4 | ||
Fiscal 2021 | 20.2 | ||
Fiscal 2022 | 19.8 | ||
Thereafter | 316.9 | ||
$ | 418.1 |
Retail | Wholesale | Licensing | Total | ||||||||||||
Balance at April 2, 2016 | $ | 8.0 | $ | 13.3 | $ | 1.9 | $ | 23.2 | |||||||
Acquisition of MKHKL | 83.9 | 12.6 | — | 96.5 | |||||||||||
Balance at April 1, 2017 | $ | 91.9 | $ | 25.9 | $ | 1.9 | $ | 119.7 |
|
April 1, 2017 | April 2, 2016 | ||||||
Prepaid taxes | $ | 56.6 | $ | 57.8 | |||
Prepaid rent | 21.7 | 27.3 | |||||
Leasehold incentive receivable | 12.0 | 8.9 | |||||
Unrealized gains on forward foreign exchange contracts | 4.7 | 0.1 | |||||
Restricted cash | 1.9 | — | |||||
Other | 25.0 | 19.0 | |||||
$ | 121.9 | $ | 113.1 |
April 1, 2017 | April 2, 2016 | ||||||
Accrued capital expenditures | $ | 20.5 | $ | 33.6 | |||
Advance royalties | 5.0 | 30.2 | |||||
Other taxes payable | 29.2 | 38.2 | |||||
Accrued rent | 21.5 | 30.5 | |||||
Gift cards and retail store credits | 12.9 | 13.1 | |||||
Professional services | 7.1 | 7.0 | |||||
Unrealized loss on forward foreign exchange contracts | 0.4 | 5.5 | |||||
Accrued advertising and marketing | 10.7 | 8.8 | |||||
Other | 27.7 | 25.9 | |||||
$ | 135.0 | $ | 192.8 |
|
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Minimum rentals | $ | 257.0 | $ | 193.5 | $ | 151.0 | |||||
Contingent rent | 75.5 | 64.4 | 65.8 | ||||||||
Total rent expense | $ | 332.5 | $ | 257.9 | $ | 216.8 |
Fiscal years ending: | |||
2018 | $ | 250.1 | |
2019 | 238.2 | ||
2020 | 226.4 | ||
2021 | 214.6 | ||
2022 | 163.5 | ||
Thereafter | 549.3 | ||
$ | 1,642.1 |
|
Fair value at April 1, 2017, using: | Fair value at April 2, 2016, 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) | ||||||||||||||||||
Forward foreign currency exchange contracts - assets | $ | — | $ | 4.7 | $ | — | $ | — | $ | 0.1 | $ | — | |||||||||||
Forward foreign currency exchange contracts - liabilities | $ | — | $ | 0.4 | $ | — | $ | — | $ | 5.5 | $ | — |
Carrying Value Prior to Impairment | Fair Value | Impairment Charge | |||||||||
Fiscal 2017: | |||||||||||
Lease Rights | 33.5 | 3.3 | 30.2 | ||||||||
Fixed Assets | 186.9 | 17.9 | 169.0 | ||||||||
Total | $ | 220.4 | 21.2 | $ | 199.2 | ||||||
Fiscal 2016: | |||||||||||
Fixed Assets | $ | 10.9 | $ | — | $ | 10.9 | |||||
Fiscal 2015: | |||||||||||
Fixed Assets | $ | 0.8 | $ | — | $ | 0.8 |
|
Fair Values | |||||||||||||||||||||||
Notional Amounts | Current Assets (1) | Current Liabilities (2) | |||||||||||||||||||||
April 1, 2017 | April 2, 2016 | April 1, 2017 | April 2, 2016 | April 1, 2017 | April 2, 2016 | ||||||||||||||||||
Designated forward foreign currency exchange contracts | $ | 167.5 | $ | 174.1 | $ | 4.7 | $ | 0.1 | $ | 0.4 | $ | 5.1 | |||||||||||
Undesignated forward foreign currency exchange contracts | — | 30.0 | — | — | — | 0.4 | |||||||||||||||||
Total | $ | 167.5 | $ | 204.1 | $ | 4.7 | $ | 0.1 | $ | 0.4 | $ | 5.5 |
(1) | Recorded within prepaid expenses and other current assets in the Company’s audited consolidated balance sheets. |
(2) | Recorded within accrued expenses and other current liabilities in the Company’s audited consolidated balance sheets. |
Fiscal Year Ended April 1, 2017 | Fiscal Year Ended April 2, 2016 | Fiscal Year Ended March 28, 2015 | |||||||||||||||||||||
Pre-Tax Gain Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | Pre-Tax Loss Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | Pre-Tax Gain Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | ||||||||||||||||||
Designated hedges | $ | 10.2 | $ | 0.4 | $ | (25.2 | ) | $ | 10.9 | $ | 36.6 | $ | 2.1 |
|
Foreign Currency Translation Losses | Net Gains (Losses) on Derivatives | Other comprehensive loss attributable to MKHL | Other comprehensive income attributable to noncontrolling interest | Total other comprehensive loss | |||||||||||||||
Balance at March 29, 2014 | $ | (4.8 | ) | $ | (1.6 | ) | $ | (6.4 | ) | $ | — | $ | (6.4 | ) | |||||
Other comprehensive (loss) income before reclassifications | (91.3 | ) | 32.8 | (1) | (58.5 | ) | — | (58.5 | ) | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 1.9 | (2) | 1.9 | — | 1.9 | |||||||||||||
Other comprehensive (loss) income, net of tax | (91.3 | ) | 30.9 | (1) | (60.4 | ) | — | (60.4 | ) | ||||||||||
Balance at March 28, 2015 | (96.1 | ) | 29.3 | (66.8 | ) | — | (66.8 | ) | |||||||||||
Other comprehensive income (loss) before reclassifications | 18.4 | (22.6 | ) | (1) | (4.2 | ) | 0.1 | (4.1 | ) | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 9.9 | (2) | 9.9 | — | 9.9 | |||||||||||||
Other comprehensive income (loss), net of tax | 18.4 | (32.5 | ) | (14.1 | ) | 0.1 | (14.0 | ) | |||||||||||
Balance at April 2, 2016 | (77.7 | ) | (3.2 | ) | (1) | (80.9 | ) | 0.1 | (80.8 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (8.4 | ) | (3) | 9.0 | (1) | 0.6 | (0.4 | ) | 0.2 | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 0.3 | (2) | 0.3 | — | 0.3 | |||||||||||||
Other comprehensive (loss) income, net of tax | (8.4 | ) | 8.7 | 0.3 | (0.4 | ) | (0.1 | ) | |||||||||||
Balance at April 1, 2017 | $ | (86.1 | ) | $ | 5.5 | (1) | $ | (80.6 | ) | $ | (0.3 | ) | $ | (80.9 | ) |
(1) | Accumulated other comprehensive income related to net gains (losses) on derivative financial instruments is net of a tax provision (benefit) of $0.8 million, $(0.3) million and $3.3 million, respectively, as of April 1, 2017, April 2, 2016 and March 28, 2015. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2017, Fiscal 2016, and Fiscal 2015 is net of a tax provision (benefit) of $1.2 million, $(2.6) million and $3.7 million, respectively. |
(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. The amount reclassified from other comprehensive income for Fiscal 2016 is net of a tax provision of $1.0 million. The tax effects related to other fiscal years were not material. |
(3) | Foreign currency translation losses for Fiscal 2017 include net losses of $2.4 million on intra-entity transactions that are of a long-term investment nature. |
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
U.S. | $ | 228.4 | $ | 737.5 | $ | 814.3 | |||||
Non-U.S. | 460.2 | 434.8 | 441.5 | ||||||||
Total income before provision for income taxes | $ | 688.6 | $ | 1,172.3 | $ | 1,255.8 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Current | |||||||||||
U.S. Federal | $ | 131.2 | $ | 268.0 | $ | 277.0 | |||||
U.S. State | 20.4 | 14.3 | 49.7 | ||||||||
Non-U.S. | 45.8 | 54.2 | 41.9 | ||||||||
Total current | 197.4 | 336.5 | 368.6 | ||||||||
Deferred | |||||||||||
U.S. Federal | (34.1 | ) | 0.3 | 5.0 | |||||||
U.S. State | (5.0 | ) | 1.0 | 0.3 | |||||||
Non-U.S. | (21.2 | ) | (3.2 | ) | 0.9 | ||||||
Total deferred | (60.3 | ) | (1.9 | ) | 6.2 | ||||||
Total provision for income taxes | $ | 137.1 | $ | 334.6 | $ | 374.8 |
Fiscal Years Ended | ||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||
Provision for income taxes at the U.K. (2017), U.S. (2015-2016) statutory tax rate | 20.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal benefit | 1.3 | % | 1.2 | % | 2.4 | % | ||
Effects of global financing arrangements | (13.7 | )% | (2.8 | )% | (2.8 | )% | ||
Differences in tax effects on foreign income | 11.1 | % | (5.1 | )% | (5.4 | )% | ||
Foreign tax credit | 0.3 | % | (0.2 | )% | (0.4 | )% | ||
Liability for uncertain tax positions | — | % | — | % | 0.2 | % | ||
Effect of changes in valuation allowances on deferred tax assets | 0.5 | % | (0.2 | )% | (0.1 | )% | ||
Other | 0.4 | % | 0.6 | % | 0.9 | % | ||
Effective tax rate | 19.9 | % | 28.5 | % | 29.8 | % |
Fiscal Years Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Deferred tax assets | |||||||
Inventories | $ | 9.0 | $ | 10.5 | |||
Payroll related accruals | 2.2 | 2.2 | |||||
Deferred rent | 39.5 | 37.1 | |||||
Net operating loss carryforwards | 17.7 | 3.4 | |||||
Stock compensation | 26.2 | 30.0 | |||||
Sales allowances | 10.0 | 13.4 | |||||
Other | 14.7 | 12.1 | |||||
119.3 | 108.7 | ||||||
Valuation allowance | (7.2 | ) | (3.4 | ) | |||
Total deferred tax assets | 112.1 | 105.3 | |||||
Deferred tax liabilities | |||||||
Goodwill and intangibles | (112.3 | ) | (32.9 | ) | |||
Depreciation | (2.7 | ) | (48.0 | ) | |||
Other | (3.8 | ) | (3.4 | ) | |||
Total deferred tax liabilities | (118.8 | ) | (84.3 | ) | |||
Net deferred tax assets (liabilities) | $ | (6.7 | ) | $ | 21.0 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Unrecognized tax benefits beginning balance | $ | 16.8 | $ | 19.9 | $ | 18.1 | |||||
Additions related to prior period tax positions | 1.7 | — | 0.4 | ||||||||
Additions related to current period tax positions | 10.3 | 5.8 | 5.2 | ||||||||
Decreases from prior period positions | (2.3 | ) | (5.7 | ) | (3.8 | ) | |||||
Decreases related to audit settlements | — | (3.2 | ) | — | |||||||
Unrecognized tax benefits ending balance | $ | 26.5 | $ | 16.8 | $ | 19.9 |
|
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Revenue: | |||||||||||
Net sales: Retail | $ | 2,572.1 | $ | 2,394.9 | $ | 2,134.6 | |||||
Wholesale | 1,775.8 | 2,143.9 | 2,065.1 | ||||||||
Licensing | 145.8 | 173.3 | 171.8 | ||||||||
Total revenue | $ | 4,493.7 | $ | 4,712.1 | $ | 4,371.5 | |||||
Income from operations: | |||||||||||
Retail | $ | 159.8 | $ | 501.4 | $ | 557.2 | |||||
Wholesale | 468.1 | 584.1 | 610.9 | ||||||||
Licensing | 62.0 | 89.6 | 88.9 | ||||||||
Income from operations | $ | 689.9 | $ | 1,175.1 | $ | 1,257.0 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Depreciation and amortization(1): | |||||||||||
Retail | $ | 156.1 | $ | 114.5 | $ | 84.5 | |||||
Wholesale | 61.6 | 67.3 | 53.0 | ||||||||
Licensing | 2.1 | 1.4 | 0.9 | ||||||||
Total depreciation and amortization | $ | 219.8 | $ | 183.2 | $ | 138.4 |
(1) | Excluded from the above table are impairment charges, which are detailed in the below table and in Notes 6, 7 and 11. |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Impairment Charges: | |||||||||||
Retail | $ | 198.7 | $ | 8.6 | $ | 0.8 | |||||
Wholesale | 0.5 | 0.4 | — | ||||||||
Corporate assets | — | 1.9 | — | ||||||||
Total impairment | $ | 199.2 | $ | 10.9 | $ | 0.8 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Revenue: | |||||||||||
The Americas (U.S., Canada and Latin America)(1) | $ | 3,140.7 | $ | 3,506.6 | $ | 3,418.9 | |||||
Europe | 943.9 | 990.3 | 884.7 | ||||||||
Asia | 409.1 | 215.2 | 67.9 | ||||||||
Total revenue | $ | 4,493.7 | $ | 4,712.1 | $ | 4,371.5 |
As of | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Long-lived assets: | |||||||||||
The Americas (U.S., Canada and Latin America)(1) | $ | 356.1 | $ | 507.7 | $ | 443.8 | |||||
Europe | 197.7 | 284.2 | 169.2 | ||||||||
Asia | 455.8 | 33.7 | 11.4 | ||||||||
Total Long-lived assets: | $ | 1,009.6 | $ | 825.6 | $ | 624.4 |
(1) | Net revenues earned in the U.S. during Fiscal 2017, Fiscal 2016, and Fiscal 2015 were $2.935 billion, $3.304 billion and $3.228 billion, respectively. Long-lived assets located in the U.S. as of April 1, 2017 and April 2, 2016 were $328.8 million and $472.2 million, respectively. |
Fiscal Years Ended | |||||||||||||||||||
April 1, 2017 | % of Total | April 2, 2016 | % of Total | March 28, 2015 | % of Total | ||||||||||||||
Accessories | $ | 3,061.4 | 70.4% | $ | 3,179.7 | 70.1 | % | $ | 2,872.2 | 68.4 | % | ||||||||
Apparel | 543.2 | 12.5% | 543.7 | 12.0 | % | 549.4 | 13.1 | % | |||||||||||
Footwear | 462.0 | 10.6% | 491.0 | 10.8 | % | 444.1 | 10.5 | % | |||||||||||
Licensed product | 281.3 | 6.5% | 324.4 | 7.1 | % | 334.0 | 8.0 | % | |||||||||||
Net sales | $ | 4,347.9 | $ | 4,538.8 | $ | 4,199.7 |
|
|
Fiscal Quarter Ended | ||||||||||||||||
July 2, 2016 | October 1, 2016 | December 31, 2016 | April 1, 2017 | |||||||||||||
Fiscal 2017 | ||||||||||||||||
Total revenue | $ | 987.9 | $ | 1,088.2 | $ | 1,352.8 | $ | 1,064.8 | ||||||||
Gross profit | $ | 591.3 | $ | 644.7 | $ | 805.7 | $ | 619.7 | ||||||||
Income (loss) from operations (1) | $ | 186.9 | $ | 203.7 | $ | 341.9 | $ | (42.6 | ) | |||||||
Net income (loss) | $ | 146.3 | $ | 160.7 | $ | 271.3 | $ | (26.8 | ) | |||||||
Net income (loss) attributable to MKHL | $ | 147.1 | $ | 160.9 | $ | 271.3 | $ | (26.8 | ) | |||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 174,158,571 | 166,695,631 | 163,148,597 | 159,944,132 | ||||||||||||
Diluted | 176,613,751 | 168,839,967 | 165,214,045 | 161,827,486 | ||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
June 27, 2015 | September 26, 2015 | December 26, 2015 | April 2, 2016 | (2) | ||||||||||||
Fiscal 2016 | ||||||||||||||||
Total revenue | $ | 986.0 | $ | 1,130.0 | $ | 1,397.4 | $ | 1,198.7 | ||||||||
Gross profit | $ | 603.6 | $ | 664.4 | $ | 832.0 | $ | 697.2 | ||||||||
Income from operations | $ | 248.6 | $ | 273.1 | $ | 409.3 | $ | 244.1 | (3) | |||||||
Net income | $ | 174.4 | $ | 192.8 | $ | 294.2 | $ | 176.3 | ||||||||
Net income attributable to MKHL | $ | 174.4 | $ | 193.1 | $ | 294.6 | $ | 177.0 | ||||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 196,977,021 | 188,857,398 | 182,176,452 | 177,814,521 | ||||||||||||
Diluted | 200,054,494 | 191,524,156 | 184,851,616 | 180,439,102 |
(1) | Fiscal quarter ended July 2, 2016 contains $11.3 million in transaction costs related to the acquisition of the previously licensed Greater China business, fiscal quarter ended October 1, 2016 contains $4.9 million in retail fixed asset impairment charges; fiscal quarter ended December 31, 2016 contains $0.5 million in wholesale fixed asset impairment charges; fiscal quarter ended April 1, 2017 contains $193.8 million in retail long-lived asset impairment charges. |
(2) | Fiscal quarter ended April 2, 2016 contains 14 weeks, whereas all other fiscal quarters presented contain 13 weeks. |
(3) | Fiscal quarter ended April 2, 2016 contains $10.9 million in impairment charges, as well as a $3.7 million gain as a result of the MK Korea acquisition. |
|
|
|
Balance Beginning of Year | Amounts Charged to Revenue | Write-offs Against Reserves | Balance at Year End | ||||||||||||
Retail | |||||||||||||||
Return Reserves: | |||||||||||||||
Fiscal year ended April 1, 2017 | $ | 4.7 | $ | 102.4 | $ | (99.8 | ) | $ | 7.3 | ||||||
Fiscal year ended April 2, 2016 | 2.5 | 71.7 | (69.5 | ) | 4.7 | ||||||||||
Fiscal year ended March 28, 2015 | 2.3 | 57.0 | (56.8 | ) | 2.5 |
Balance Beginning of Year | Amounts Charged to Revenue | Write-offs Against Reserves | Balance at Year End | ||||||||||||
Wholesale | |||||||||||||||
Total Sales Reserves: | |||||||||||||||
Fiscal year ended April 1, 2017 | $ | 110.9 | $ | 271.1 | $ | (285.3 | ) | $ | 96.7 | ||||||
Fiscal year ended April 2, 2016 | 87.5 | 348.4 | (325.0 | ) | 110.9 | ||||||||||
Fiscal year ended March 28, 2015 | 65.9 | 281.0 | (259.4 | ) | 87.5 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Numerator: | |||||||||||
Net income attributable to MKHL | $ | 552.5 | $ | 839.1 | $ | 881.0 | |||||
Denominator: | |||||||||||
Basic weighted average shares | 165,986,733 | 186,293,295 | 202,680,572 | ||||||||
Weighted average dilutive share equivalents: | |||||||||||
Share options and restricted shares/units, and performance restricted share units | 2,137,080 | 2,760,994 | 3,185,197 | ||||||||
Diluted weighted average shares | 168,123,813 | 189,054,289 | 205,865,769 | ||||||||
Basic net income per share | $ | 3.33 | $ | 4.50 | $ | 4.35 | |||||
Diluted net income per share | $ | 3.29 | $ | 4.44 | $ | 4.28 |
|
May 31, 2016 | |||
Cash and cash equivalents | $ | 19.4 | |
Accounts receivable | 22.3 | ||
Inventory | 36.1 | ||
Other current assets | 5.5 | ||
Current assets | 83.3 | ||
Property and equipment | 46.6 | ||
Goodwill | 96.5 | ||
Reacquired rights | 400.4 | ||
Favorable lease assets | 1.8 | ||
Customer relationships | 0.7 | ||
Deferred tax assets | 7.8 | ||
Other assets | 6.6 | ||
Total assets acquired | $ | 643.7 | |
Accounts payable | $ | 8.9 | |
Short-term debt | 5.8 | ||
Other current liabilities | 27.8 | ||
Current liabilities | 42.5 | ||
Unfavorable lease liabilities | 4.8 | ||
Deferred tax liabilities | 92.3 | ||
Other liabilities | 4.1 | ||
Total liabilities assumed | $ | 143.7 | |
Fair value of net assets acquired | $ | 500.0 | |
Fair value of acquisition consideration | $ | 500.0 |
Fiscal Years Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Pro-forma total revenue | $ | 4,520.1 | $ | 4,839.1 | |||
Pro-forma net income | 548.7 | 832.2 | |||||
Pro-forma net income per ordinary share attributable to MKHL: | |||||||
Basic | $ | 3.31 | $ | 4.47 | |||
Diluted | $ | 3.26 | $ | 4.40 |
January 1, 2016 | |||
Inventory | $ | 3.0 | |
Fixed assets | 2.1 | ||
Customer relationship intangible assets | 2.2 | ||
Fair value of assets acquired | 7.3 | ||
Less: consideration paid | 3.6 | ||
Gain on acquisition of MK Korea | $ | 3.7 |
June 28, 2015 | |||
Current assets | $ | 25.9 | |
Fixed assets | 6.4 | ||
Customer relationship intangible assets | 2.0 | ||
Goodwill | 9.2 | ||
Debt obligations | (9.5 | ) | |
Other liabilities | (2.3 | ) | |
Total fair value of net assets of MK Panama | 31.7 | ||
Fair value of preexisting interest in MK Panama | 8.1 | ||
Non-controlling interest | 5.1 | ||
Fair value of consideration provided | $ | 18.5 |
|
April 1, 2017 | April 2, 2016 | ||||||
Trade receivables: | |||||||
Credit risk assumed by insured/factors | $ | 294.0 | $ | 353.7 | |||
Credit risk retained by Company | 63.8 | 61.8 | |||||
Receivables due from licensees | 11.9 | 9.5 | |||||
369.7 | 425.0 | ||||||
Less allowances: | (103.9 | ) | (117.1 | ) | |||
$ | 265.8 | $ | 307.9 |
|
April 1, 2017 | April 2, 2016 | ||||||
Leasehold improvements | $ | 507.9 | $ | 414.6 | |||
In-store shops | 256.0 | 242.9 | |||||
Furniture and fixtures | 244.1 | 212.7 | |||||
Computer equipment and software | 226.2 | 167.9 | |||||
Equipment | 104.4 | 79.1 | |||||
Building | 40.6 | — | |||||
Land | 14.0 | 15.1 | |||||
1,393.2 | 1,132.3 | ||||||
Less: accumulated depreciation and amortization | (833.9 | ) | (490.9 | ) | |||
559.3 | 641.4 | ||||||
Construction-in-progress | 32.2 | 116.8 | |||||
$ | 591.5 | $ | 758.2 |
|
April 1, 2017 | April 2, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Reacquired Rights | $ | 400.4 | $ | 13.4 | $ | 387.0 | $ | — | $ | — | $ | — | |||||||||||
Trademarks | 23.0 | 16.3 | 6.7 | 23.0 | 15.1 | 7.9 | |||||||||||||||||
Lease Rights | 74.2 | 53.8 | (1) | 20.4 | 73.3 | 17.8 | 55.5 | ||||||||||||||||
Customer Relationships | 5.0 | 1.0 | 4.0 | 4.2 | 0.2 | 4.0 | |||||||||||||||||
$ | 502.6 | $ | 84.5 | $ | 418.1 | $ | 100.5 | $ | 33.1 | $ | 67.4 |
Fiscal 2018 | $ | 20.4 | |
Fiscal 2019 | 20.4 | ||
Fiscal 2020 | 20.4 | ||
Fiscal 2021 | 20.2 | ||
Fiscal 2022 | 19.8 | ||
Thereafter | 316.9 | ||
$ | 418.1 |
Retail | Wholesale | Licensing | Total | ||||||||||||
Balance at April 2, 2016 | $ | 8.0 | $ | 13.3 | $ | 1.9 | $ | 23.2 | |||||||
Acquisition of MKHKL | 83.9 | 12.6 | — | 96.5 | |||||||||||
Balance at April 1, 2017 | $ | 91.9 | $ | 25.9 | $ | 1.9 | $ | 119.7 |
|
April 1, 2017 | April 2, 2016 | ||||||
Prepaid taxes | $ | 56.6 | $ | 57.8 | |||
Prepaid rent | 21.7 | 27.3 | |||||
Leasehold incentive receivable | 12.0 | 8.9 | |||||
Unrealized gains on forward foreign exchange contracts | 4.7 | 0.1 | |||||
Restricted cash | 1.9 | — | |||||
Other | 25.0 | 19.0 | |||||
$ | 121.9 | $ | 113.1 |
April 1, 2017 | April 2, 2016 | ||||||
Accrued capital expenditures | $ | 20.5 | $ | 33.6 | |||
Advance royalties | 5.0 | 30.2 | |||||
Other taxes payable | 29.2 | 38.2 | |||||
Accrued rent | 21.5 | 30.5 | |||||
Gift cards and retail store credits | 12.9 | 13.1 | |||||
Professional services | 7.1 | 7.0 | |||||
Unrealized loss on forward foreign exchange contracts | 0.4 | 5.5 | |||||
Accrued advertising and marketing | 10.7 | 8.8 | |||||
Other | 27.7 | 25.9 | |||||
$ | 135.0 | $ | 192.8 |
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Minimum rentals | $ | 257.0 | $ | 193.5 | $ | 151.0 | |||||
Contingent rent | 75.5 | 64.4 | 65.8 | ||||||||
Total rent expense | $ | 332.5 | $ | 257.9 | $ | 216.8 |
Fiscal years ending: | |||
2018 | $ | 250.1 | |
2019 | 238.2 | ||
2020 | 226.4 | ||
2021 | 214.6 | ||
2022 | 163.5 | ||
Thereafter | 549.3 | ||
$ | 1,642.1 |
|
Fair value at April 1, 2017, using: | Fair value at April 2, 2016, 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) | ||||||||||||||||||
Forward foreign currency exchange contracts - assets | $ | — | $ | 4.7 | $ | — | $ | — | $ | 0.1 | $ | — | |||||||||||
Forward foreign currency exchange contracts - liabilities | $ | — | $ | 0.4 | $ | — | $ | — | $ | 5.5 | $ | — |
Carrying Value Prior to Impairment | Fair Value | Impairment Charge | |||||||||
Fiscal 2017: | |||||||||||
Lease Rights | 33.5 | 3.3 | 30.2 | ||||||||
Fixed Assets | 186.9 | 17.9 | 169.0 | ||||||||
Total | $ | 220.4 | 21.2 | $ | 199.2 | ||||||
Fiscal 2016: | |||||||||||
Fixed Assets | $ | 10.9 | $ | — | $ | 10.9 | |||||
Fiscal 2015: | |||||||||||
Fixed Assets | $ | 0.8 | $ | — | $ | 0.8 |
|
Fair Values | |||||||||||||||||||||||
Notional Amounts | Current Assets (1) | Current Liabilities (2) | |||||||||||||||||||||
April 1, 2017 | April 2, 2016 | April 1, 2017 | April 2, 2016 | April 1, 2017 | April 2, 2016 | ||||||||||||||||||
Designated forward foreign currency exchange contracts | $ | 167.5 | $ | 174.1 | $ | 4.7 | $ | 0.1 | $ | 0.4 | $ | 5.1 | |||||||||||
Undesignated forward foreign currency exchange contracts | — | 30.0 | — | — | — | 0.4 | |||||||||||||||||
Total | $ | 167.5 | $ | 204.1 | $ | 4.7 | $ | 0.1 | $ | 0.4 | $ | 5.5 |
(1) | Recorded within prepaid expenses and other current assets in the Company’s audited consolidated balance sheets. |
(2) | Recorded within accrued expenses and other current liabilities in the Company’s audited consolidated balance sheets. |
Fiscal Year Ended April 1, 2017 | Fiscal Year Ended April 2, 2016 | Fiscal Year Ended March 28, 2015 | |||||||||||||||||||||
Pre-Tax Gain Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | Pre-Tax Loss Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | Pre-Tax Gain Recognized in OCI | Pre-tax Gain Reclassified from Accumulated OCI into Earnings | ||||||||||||||||||
Designated hedges | $ | 10.2 | $ | 0.4 | $ | (25.2 | ) | $ | 10.9 | $ | 36.6 | $ | 2.1 |
|
Foreign Currency Translation Losses | Net Gains (Losses) on Derivatives | Other comprehensive loss attributable to MKHL | Other comprehensive income attributable to noncontrolling interest | Total other comprehensive loss | |||||||||||||||
Balance at March 29, 2014 | $ | (4.8 | ) | $ | (1.6 | ) | $ | (6.4 | ) | $ | — | $ | (6.4 | ) | |||||
Other comprehensive (loss) income before reclassifications | (91.3 | ) | 32.8 | (1) | (58.5 | ) | — | (58.5 | ) | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 1.9 | (2) | 1.9 | — | 1.9 | |||||||||||||
Other comprehensive (loss) income, net of tax | (91.3 | ) | 30.9 | (1) | (60.4 | ) | — | (60.4 | ) | ||||||||||
Balance at March 28, 2015 | (96.1 | ) | 29.3 | (66.8 | ) | — | (66.8 | ) | |||||||||||
Other comprehensive income (loss) before reclassifications | 18.4 | (22.6 | ) | (1) | (4.2 | ) | 0.1 | (4.1 | ) | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 9.9 | (2) | 9.9 | — | 9.9 | |||||||||||||
Other comprehensive income (loss), net of tax | 18.4 | (32.5 | ) | (14.1 | ) | 0.1 | (14.0 | ) | |||||||||||
Balance at April 2, 2016 | (77.7 | ) | (3.2 | ) | (1) | (80.9 | ) | 0.1 | (80.8 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (8.4 | ) | (3) | 9.0 | (1) | 0.6 | (0.4 | ) | 0.2 | ||||||||||
Less: amounts reclassified from AOCI to earnings | — | 0.3 | (2) | 0.3 | — | 0.3 | |||||||||||||
Other comprehensive (loss) income, net of tax | (8.4 | ) | 8.7 | 0.3 | (0.4 | ) | (0.1 | ) | |||||||||||
Balance at April 1, 2017 | $ | (86.1 | ) | $ | 5.5 | (1) | $ | (80.6 | ) | $ | (0.3 | ) | $ | (80.9 | ) |
(1) | Accumulated other comprehensive income related to net gains (losses) on derivative financial instruments is net of a tax provision (benefit) of $0.8 million, $(0.3) million and $3.3 million, respectively, as of April 1, 2017, April 2, 2016 and March 28, 2015. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2017, Fiscal 2016, and Fiscal 2015 is net of a tax provision (benefit) of $1.2 million, $(2.6) million and $3.7 million, respectively. |
(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. The amount reclassified from other comprehensive income for Fiscal 2016 is net of a tax provision of $1.0 million. The tax effects related to other fiscal years were not material. |
(3) | Foreign currency translation losses for Fiscal 2017 include net losses of $2.4 million on intra-entity transactions that are of a long-term investment nature. |
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
U.S. | $ | 228.4 | $ | 737.5 | $ | 814.3 | |||||
Non-U.S. | 460.2 | 434.8 | 441.5 | ||||||||
Total income before provision for income taxes | $ | 688.6 | $ | 1,172.3 | $ | 1,255.8 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Current | |||||||||||
U.S. Federal | $ | 131.2 | $ | 268.0 | $ | 277.0 | |||||
U.S. State | 20.4 | 14.3 | 49.7 | ||||||||
Non-U.S. | 45.8 | 54.2 | 41.9 | ||||||||
Total current | 197.4 | 336.5 | 368.6 | ||||||||
Deferred | |||||||||||
U.S. Federal | (34.1 | ) | 0.3 | 5.0 | |||||||
U.S. State | (5.0 | ) | 1.0 | 0.3 | |||||||
Non-U.S. | (21.2 | ) | (3.2 | ) | 0.9 | ||||||
Total deferred | (60.3 | ) | (1.9 | ) | 6.2 | ||||||
Total provision for income taxes | $ | 137.1 | $ | 334.6 | $ | 374.8 |
Fiscal Years Ended | ||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||
Provision for income taxes at the U.K. (2017), U.S. (2015-2016) statutory tax rate | 20.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal benefit | 1.3 | % | 1.2 | % | 2.4 | % | ||
Effects of global financing arrangements | (13.7 | )% | (2.8 | )% | (2.8 | )% | ||
Differences in tax effects on foreign income | 11.1 | % | (5.1 | )% | (5.4 | )% | ||
Foreign tax credit | 0.3 | % | (0.2 | )% | (0.4 | )% | ||
Liability for uncertain tax positions | — | % | — | % | 0.2 | % | ||
Effect of changes in valuation allowances on deferred tax assets | 0.5 | % | (0.2 | )% | (0.1 | )% | ||
Other | 0.4 | % | 0.6 | % | 0.9 | % | ||
Effective tax rate | 19.9 | % | 28.5 | % | 29.8 | % |
Fiscal Years Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Deferred tax assets | |||||||
Inventories | $ | 9.0 | $ | 10.5 | |||
Payroll related accruals | 2.2 | 2.2 | |||||
Deferred rent | 39.5 | 37.1 | |||||
Net operating loss carryforwards | 17.7 | 3.4 | |||||
Stock compensation | 26.2 | 30.0 | |||||
Sales allowances | 10.0 | 13.4 | |||||
Other | 14.7 | 12.1 | |||||
119.3 | 108.7 | ||||||
Valuation allowance | (7.2 | ) | (3.4 | ) | |||
Total deferred tax assets | 112.1 | 105.3 | |||||
Deferred tax liabilities | |||||||
Goodwill and intangibles | (112.3 | ) | (32.9 | ) | |||
Depreciation | (2.7 | ) | (48.0 | ) | |||
Other | (3.8 | ) | (3.4 | ) | |||
Total deferred tax liabilities | (118.8 | ) | (84.3 | ) | |||
Net deferred tax assets (liabilities) | $ | (6.7 | ) | $ | 21.0 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Unrecognized tax benefits beginning balance | $ | 16.8 | $ | 19.9 | $ | 18.1 | |||||
Additions related to prior period tax positions | 1.7 | — | 0.4 | ||||||||
Additions related to current period tax positions | 10.3 | 5.8 | 5.2 | ||||||||
Decreases from prior period positions | (2.3 | ) | (5.7 | ) | (3.8 | ) | |||||
Decreases related to audit settlements | — | (3.2 | ) | — | |||||||
Unrecognized tax benefits ending balance | $ | 26.5 | $ | 16.8 | $ | 19.9 |
|
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Revenue: | |||||||||||
Net sales: Retail | $ | 2,572.1 | $ | 2,394.9 | $ | 2,134.6 | |||||
Wholesale | 1,775.8 | 2,143.9 | 2,065.1 | ||||||||
Licensing | 145.8 | 173.3 | 171.8 | ||||||||
Total revenue | $ | 4,493.7 | $ | 4,712.1 | $ | 4,371.5 | |||||
Income from operations: | |||||||||||
Retail | $ | 159.8 | $ | 501.4 | $ | 557.2 | |||||
Wholesale | 468.1 | 584.1 | 610.9 | ||||||||
Licensing | 62.0 | 89.6 | 88.9 | ||||||||
Income from operations | $ | 689.9 | $ | 1,175.1 | $ | 1,257.0 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Depreciation and amortization(1): | |||||||||||
Retail | $ | 156.1 | $ | 114.5 | $ | 84.5 | |||||
Wholesale | 61.6 | 67.3 | 53.0 | ||||||||
Licensing | 2.1 | 1.4 | 0.9 | ||||||||
Total depreciation and amortization | $ | 219.8 | $ | 183.2 | $ | 138.4 |
(1) | Excluded from the above table are impairment charges, which are detailed in the below table and in Notes 6, 7 and 11. |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Impairment Charges: | |||||||||||
Retail | $ | 198.7 | $ | 8.6 | $ | 0.8 | |||||
Wholesale | 0.5 | 0.4 | — | ||||||||
Corporate assets | — | 1.9 | — | ||||||||
Total impairment | $ | 199.2 | $ | 10.9 | $ | 0.8 |
Fiscal Years Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Revenue: | |||||||||||
The Americas (U.S., Canada and Latin America)(1) | $ | 3,140.7 | $ | 3,506.6 | $ | 3,418.9 | |||||
Europe | 943.9 | 990.3 | 884.7 | ||||||||
Asia | 409.1 | 215.2 | 67.9 | ||||||||
Total revenue | $ | 4,493.7 | $ | 4,712.1 | $ | 4,371.5 |
As of | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Long-lived assets: | |||||||||||
The Americas (U.S., Canada and Latin America)(1) | $ | 356.1 | $ | 507.7 | $ | 443.8 | |||||
Europe | 197.7 | 284.2 | 169.2 | ||||||||
Asia | 455.8 | 33.7 | 11.4 | ||||||||
Total Long-lived assets: | $ | 1,009.6 | $ | 825.6 | $ | 624.4 |
(1) | Net revenues earned in the U.S. during Fiscal 2017, Fiscal 2016, and Fiscal 2015 were $2.935 billion, $3.304 billion and $3.228 billion, respectively. Long-lived assets located in the U.S. as of April 1, 2017 and April 2, 2016 were $328.8 million and $472.2 million, respectively. |
Fiscal Years Ended | |||||||||||||||||||
April 1, 2017 | % of Total | April 2, 2016 | % of Total | March 28, 2015 | % of Total | ||||||||||||||
Accessories | $ | 3,061.4 | 70.4% | $ | 3,179.7 | 70.1 | % | $ | 2,872.2 | 68.4 | % | ||||||||
Apparel | 543.2 | 12.5% | 543.7 | 12.0 | % | 549.4 | 13.1 | % | |||||||||||
Footwear | 462.0 | 10.6% | 491.0 | 10.8 | % | 444.1 | 10.5 | % | |||||||||||
Licensed product | 281.3 | 6.5% | 324.4 | 7.1 | % | 334.0 | 8.0 | % | |||||||||||
Net sales | $ | 4,347.9 | $ | 4,538.8 | $ | 4,199.7 |
|
Fiscal Quarter Ended | ||||||||||||||||
July 2, 2016 | October 1, 2016 | December 31, 2016 | April 1, 2017 | |||||||||||||
Fiscal 2017 | ||||||||||||||||
Total revenue | $ | 987.9 | $ | 1,088.2 | $ | 1,352.8 | $ | 1,064.8 | ||||||||
Gross profit | $ | 591.3 | $ | 644.7 | $ | 805.7 | $ | 619.7 | ||||||||
Income (loss) from operations (1) | $ | 186.9 | $ | 203.7 | $ | 341.9 | $ | (42.6 | ) | |||||||
Net income (loss) | $ | 146.3 | $ | 160.7 | $ | 271.3 | $ | (26.8 | ) | |||||||
Net income (loss) attributable to MKHL | $ | 147.1 | $ | 160.9 | $ | 271.3 | $ | (26.8 | ) | |||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 174,158,571 | 166,695,631 | 163,148,597 | 159,944,132 | ||||||||||||
Diluted | 176,613,751 | 168,839,967 | 165,214,045 | 161,827,486 | ||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
June 27, 2015 | September 26, 2015 | December 26, 2015 | April 2, 2016 | (2) | ||||||||||||
Fiscal 2016 | ||||||||||||||||
Total revenue | $ | 986.0 | $ | 1,130.0 | $ | 1,397.4 | $ | 1,198.7 | ||||||||
Gross profit | $ | 603.6 | $ | 664.4 | $ | 832.0 | $ | 697.2 | ||||||||
Income from operations | $ | 248.6 | $ | 273.1 | $ | 409.3 | $ | 244.1 | (3) | |||||||
Net income | $ | 174.4 | $ | 192.8 | $ | 294.2 | $ | 176.3 | ||||||||
Net income attributable to MKHL | $ | 174.4 | $ | 193.1 | $ | 294.6 | $ | 177.0 | ||||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 196,977,021 | 188,857,398 | 182,176,452 | 177,814,521 | ||||||||||||
Diluted | 200,054,494 | 191,524,156 | 184,851,616 | 180,439,102 |
(1) | Fiscal quarter ended July 2, 2016 contains $11.3 million in transaction costs related to the acquisition of the previously licensed Greater China business, fiscal quarter ended October 1, 2016 contains $4.9 million in retail fixed asset impairment charges; fiscal quarter ended December 31, 2016 contains $0.5 million in wholesale fixed asset impairment charges; fiscal quarter ended April 1, 2017 contains $193.8 million in retail long-lived asset impairment charges. |
(2) | Fiscal quarter ended April 2, 2016 contains 14 weeks, whereas all other fiscal quarters presented contain 13 weeks. |
(3) | Fiscal quarter ended April 2, 2016 contains $10.9 million in impairment charges, as well as a $3.7 million gain as a result of the MK Korea acquisition. |
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