MICHAEL KORS HOLDINGS LTD, 10-Q filed on 8/8/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Jun. 29, 2013
Aug. 2, 2013
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 29, 2013 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
KORS 
 
Entity Registrant Name
MICHAEL KORS HOLDINGS LTD 
 
Entity Central Index Key
0001530721 
 
Current Fiscal Year End Date
--03-29 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
203,049,314 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Current assets
 
 
Cash and cash equivalents
$ 639,156 
$ 472,511 
Receivables, net
170,391 
206,454 
Inventories
319,459 
266,894 
Deferred tax assets
8,683 
8,480 
Prepaid expenses and other current assets
36,523 
34,850 
Total current assets
1,174,212 
989,189 
Property and equipment, net
258,021 
242,113 
Intangible assets, net
26,541 
20,980 
Goodwill
14,005 
14,005 
Deferred tax assets
5,191 
4,389 
Other assets
18,875 
18,889 
Total assets
1,496,845 
1,289,565 
Current liabilities
 
 
Revolving line of credit
   
   
Accounts payable
104,647 
82,977 
Accrued payroll and payroll related expenses
20,822 
38,642 
Accrued income taxes
33,244 
9,074 
Accrued expenses and other current liabilities
50,427 
33,555 
Total current liabilities
209,140 
164,248 
Deferred rent
60,756 
56,986 
Deferred tax liabilities
15,288 
13,163 
Other long-term liabilities
11,145 
7,922 
Total liabilities
296,329 
242,319 
Commitments and contingencies
   
   
Shareholders' equity
 
 
Ordinary shares, no par value; 650,000,000 shares authorized, and 202,811,756 shares issued and outstanding at June 29, 2013, and 201,454,408 shares issued and outstanding at March 30, 2013
   
   
Additional paid-in capital
454,707 
424,454 
Accumulated other comprehensive loss
(5,440)
(3,461)
Retained earnings
751,249 
626,253 
Total shareholders' equity
1,200,516 
1,047,246 
Total liabilities and shareholders' equity
$ 1,496,845 
$ 1,289,565 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 29, 2013
Mar. 30, 2013
Ordinary shares, no par value
   
   
Ordinary shares, shares authorized
650,000,000 
650,000,000 
Ordinary shares, shares issued
202,811,756 
201,454,408 
Ordinary shares, shares outstanding
202,811,756 
201,454,408 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Net sales
$ 616,248 
$ 397,370 
Licensing revenue
24,611 
17,495 
Total revenue
640,859 
414,865 
Cost of goods sold
243,588 
163,865 
Gross profit
397,271 
251,000 
Selling, general and administrative expenses
183,734 
126,002 
Depreciation and amortization
15,975 
13,055 
Total operating expenses
199,709 
139,057 
Income from operations
197,562 
111,943 
Interest expense, net
170 
435 
Foreign currency loss (gain)
258 
(375)
Income before provision for income taxes
197,134 
111,883 
Provision for income taxes
72,138 
43,238 
Net income
124,996 
68,645 
Weighted average ordinary shares outstanding:
 
 
Basic
201,208,189 
192,790,454 
Diluted
204,336,124 
199,391,127 
Net income per ordinary share:
 
 
Basic
$ 0.62 
$ 0.36 
Diluted
$ 0.61 
$ 0.34 
Statements of Comprehensive Income:
 
 
Net income
124,996 
68,645 
Foreign currency translation adjustments
(1,358)
(3,278)
Net realized and unrealized loss on derivatives
(621)
 
Comprehensive income
$ 123,017 
$ 65,367 
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)
In Thousands, except Share data
Total
USD ($)
Ordinary Shares
Additional Paid-in Capital
USD ($)
Accumulated Other Comprehensive Loss
USD ($)
Retained Earnings
USD ($)
Beginning Balance at Mar. 30, 2013
$ 1,047,246 
 
$ 424,454 
$ (3,461)
$ 626,253 
Beginning Balance (in shares) at Mar. 30, 2013
 
201,454,408 
 
 
 
Net income
124,996 
 
 
 
124,996 
Foreign currency translation adjustment
(1,358)
 
 
(1,358)
 
Net unrealized gain on derivatives (net of taxes of $0.1 million)
(621)
 
 
(621)
 
Comprehensive income
123,017 
 
 
 
 
Issuance of restricted shares
 
238,932 
 
 
 
Exercise of employee share options (in shares)
1,118,416 
1,118,416 
 
 
 
Exercise of employee share options
6,411 
 
6,411 
 
 
Equity compensation expense
5,577 
 
5,577 
 
 
Tax benefits on exercise of share options
18,265 
 
18,265 
 
 
Ending Balance at Jun. 29, 2013
$ 1,200,516 
 
$ 454,707 
$ (5,440)
$ 751,249 
Ending Balance (in shares) at Jun. 29, 2013
 
202,811,756 
 
 
 
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Net unrealized gain on derivatives, taxes
$ 0.1 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Cash flows from operating activities
 
 
Net income
$ 124,996 
$ 68,645 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
15,975 
13,055 
Loss on disposal of fixed assets
121 
148 
Unrealized foreign exchange loss (gain)
258 
(375)
Amortization of deferred financing costs
187 
176 
Amortization of deferred rent
1,295 
1,207 
Deferred income taxes
(128)
(3,891)
Equity compensation expense
5,577 
4,982 
Tax benefits on exercise of share options
(18,265)
(6,426)
Non-cash charges for services provided by former parent
 
77 
Change in assets and liabilities:
 
 
Receivables, net
36,180 
21,725 
Inventories
(52,645)
(61,219)
Prepaid expenses and other current assets
(1,613)
(8,911)
Other assets
(818)
166 
Accounts payable
21,795 
15,774 
Accrued expenses and other current liabilities
44,383 
12,256 
Other long-term liabilities
5,352 
1,193 
Net cash provided by operating activities
182,650 
58,582 
Cash flows from investing activities
 
 
Capital expenditures
(33,309)
(17,370)
Purchase of intangible assets
(5,843)
 
Net cash used in investing activities
(39,152)
(17,370)
Cash flows from financing activities
 
 
Repayments of borrowings under revolving credit agreement
(11,737)
(3,226)
Borrowings under revolving credit agreement
11,737 
9,803 
Exercise of employee share options
6,411 
2,561 
Tax benefits on exercise of share options
18,265 
6,426 
Payment of deferred financing costs
 
(37)
Net cash provided by financing activities
24,676 
15,527 
Effect of exchange rate changes on cash and cash equivalents
(1,529)
(1,018)
Net increase in cash and cash equivalents
166,645 
55,721 
Beginning of period
472,511 
106,354 
End of period
639,156 
162,075 
Supplemental disclosures of cash flow information
 
 
Cash paid for interest
109 
95 
Cash paid for income taxes
22,845 
16,418 
Supplemental disclosure of noncash investing and financing activities
 
 
Accrued capital expenditures
$ 10,938 
$ 13,455 
Business and Basis of Presentation
Business and Basis of Presentation

1. Business and Basis of Presentation

Michael Kors Holdings Limited (“MKHL,” and together with its subsidiaries, the “Company”) was incorporated in the British Virgin Islands (“BVI”) on December 13, 2002. The Company is a leading designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks “MICHAEL KORS,” “MICHAEL MICHAEL KORS,” “KORS MICHAEL KORS” and various other related trademarks and logos. The Company’s business consists of retail, wholesale and licensing segments. Retail operations consist of collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan. Wholesale revenues are principally derived from major department and specialty stores located throughout the United States, Canada and Europe. The Company licenses its trademarks on products such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties.

The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The consolidated financial statements as of June 29, 2013, and for the three months ended June 29, 2013 and June 30, 2012, are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with GAAP. The interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 30, 2013, as filed with the Securities and Exchange Commission on May 29, 2013, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year.

The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three months ended June 29, 2013 and June 30, 2012, are based on a 13-week period.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates.

Derivative Financial Instruments

The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions, of which certain of these contracts are designated as hedges for accounting purposes, while others are undesignated hedges for hedge accounting purposes. These derivative instruments are recorded on Company’s consolidated balance sheets at fair value, regardless if they are designated or undesignated as hedges.

Prior to Fiscal 2013, the Company did not designate these instruments as hedges for hedge accounting purposes. During the third quarter of Fiscal 2013, the Company adopted the provisions of hedge accounting and elected to designate certain contracts entered into during that period as hedges for hedge accounting purposes, and will continue to do so going forward, for contracts related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during the quarter ended June 29, 2013, are recorded in equity as a component of accumulated other comprehensive income, and to cost of sales for any portion of those contracts deemed ineffective. The Company will continue to record changes in the fair value of hedge designated contracts in this manner until their maturity, where the unrealized gain or loss will be recognized into earnings in that period. For those contracts entered into prior to adoption of hedge accounting, as well as those that will not be designated as hedges in future periods, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in cost of sales or operating expenses, within the Company’s consolidated statements of operations, as applicable to the transactions for which the forward exchange contracts were intended to hedge. During the three months ended June 29, 2013, the net realized gain of $0.6 million, related to the change in fair value of those contracts not designated as hedges, were recorded as a component of cost of sales. In addition, the net unrealized loss related to contracts designated as hedges for $0.6 million, was charged to equity as a component of accumulated other comprehensive income during the three months ended June 29, 2013. For the three months ended June 29, 2013, amounts related to the ineffectiveness of these contracts were de minimis. The following table details the fair value of these contracts as of June 29, 2013, and March 30, 2013 (in thousands):

 

     June 29,
2013
     March 30,
2013
 

Prepaid expenses and other current assets

   $ 1,269       $ 1,367   

Accrued expenses and other current liabilities

   $ —         $ (71

The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In attempts to mitigate counterparty credit risk, the Company enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge. The notional amount of these contracts outstanding at June 29, 2013 was approximately $99.0 million, which was comprised predominately of those designated as hedges.

Net Income Per Share

The Company’s basic net income per share excludes the dilutive effect of share options and units, as well as unvested restricted shares. It is based upon the weighted average number of ordinary shares outstanding during the period divided into net income.

Diluted net income per share reflects the potential dilution that would occur if share option grants or any other dilutive equity instruments were exercised or converted into ordinary shares. These equity instruments are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods.

The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data):

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Numerator:

     

Net Income

   $ 124,996       $ 68,645   

Denominator:

     

Basic weighted average ordinary shares

     201,208,189        192,790,454  

Weighted average dilutive share equivalents:

     

Share options and restricted shares/units

     3,127,935        6,600,673  
  

 

 

    

 

 

 

Diluted weighted average ordinary shares

     204,336,124        199,391,127  

Basic net income per ordinary share

   $ 0.62       $ 0.36   
  

 

 

    

 

 

 

Diluted net income per ordinary share

   $ 0.61       $ 0.34   
  

 

 

    

 

 

 

Share equivalents for the three months ended June 29, 2013 for 63,715 shares have been excluded from the above calculation as they were anti-dilutive. Share equivalents for the three months ended June 30, 2012 for 105,755 shares have been excluded from the above calculation as they were anti-dilutive.

Recent Accounting Pronouncements— With the exception of the below, the Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that have a material impact on results of operations, financial condition, or cash flows, based on current information.

During the fiscal quarter ended June 29, 2013, the company adopted the provisions of Accounting Standard Update 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”) which the Financial Accounting Standards Board (“FASB”) issued in February 2013. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU is effective for annual periods and interim periods within those periods beginning after December 15, 2012. For the three months ended June 29, 2013, the amounts reclassified out of accumulated other comprehensive income were de minimis.

Receivables, net
Receivables, net

3. Receivables, net

Receivables, net consist of (in thousands):

 

     June 29,
2013
    March 30,
2013
 

Trade receivables:

    

Credit risk assumed by factors/insured

   $ 168,876      $ 199,677   

Credit risk retained by Company

     35,892        45,588   

Receivables due from licensees

     9,645        7,344   
  

 

 

   

 

 

 
     214,413        252,609   

Less allowances:

     (44,022     (46,155
  

 

 

   

 

 

 
   $ 170,391      $ 206,454   
  

 

 

   

 

 

 

The Company has historically assigned a substantial portion of its trade receivables to factors in the United States and Europe whereby the factors assumed credit risk with respect to such receivables assigned. Under the factor agreements, factors bear the risk of loss from the financial inability of the customer to pay the trade receivable when due, up to such amounts as accepted by the factor; but not the risk of non-payment of such trade receivable for any other reason. Beginning in July 2012, the Company assumed responsibility for a large portion of previously factored accounts receivable balances the majority of which were insured at June 29, 2013. The Company provides an allowance for such non-payment risk at the time of sale, which is recorded as an offset to revenue.

Receivables are presented net of allowances for sales returns, discounts, markdowns, operational chargebacks and doubtful accounts. Sales returns are determined based on an evaluation of current market conditions and historical returns experience. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on retail sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in net sales.

The allowance for doubtful accounts is determined through analysis of periodic aging of receivables for which credit risk is not assumed by the factors, or which are not covered under insurance, and assessments of collectability based on an evaluation of historic and anticipated trends, the financial conditions of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowances for doubtful accounts were $1.2 million and $1.1 million, at June 29, 2013 and March 30, 2013, respectively.

Property and Equipment, net
Property and Equipment, net

4. Property and Equipment, net

Property and equipment consist of (in thousands):

 

     June 29,
2013
    March 30,
2013
 

Furniture and fixtures

   $ 82,509      $ 76,336   

Equipment

     14,249        13,276   

Computer equipment and software

     30,565        29,429   

In-store shops

     85,962        78,809   

Leasehold improvements

     178,559        168,306   
  

 

 

   

 

 

 
     391,844        366,156   

Less: accumulated depreciation and amortization

     (178,662     (165,340
  

 

 

   

 

 

 
     213,182        200,816   

Construction-in-progress

     44,839        41,297   
  

 

 

   

 

 

 
   $ 258,021      $ 242,113   
  

 

 

   

 

 

 

Depreciation and amortization of property and equipment for the three months ended June 29, 2013, was $15.5 million, and for the three months ended June 30, 2012, was $12.7 million.

Intangible Assets and Goodwill
Intangible Assets and Goodwill

5. Intangible Assets and Goodwill

The following table discloses the carrying values of intangible assets and goodwill (in thousands):

 

     June 29, 2013      March 30, 2013  
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net      Gross
Carrying
Amount
     Accumulated
Amortization
     Net  

Trademarks

   $ 23,000       $ 11,980       $ 11,020       $ 23,000       $ 11,693       $ 11,307   

Lease Rights

     18,432         2,911         15,521         12,433         2,760         9,673   

Goodwill

     14,005         —           14,005         14,005         —           14,005   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 55,437       $ 14,891       $ 40,546       $ 49,438       $ 14,453       $ 34,985   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The trademarks relate to the Company’s brand name and are amortized over twenty years. Lease rights are amortized over the respective terms of the underlying lease. Amortization expense was $0.4 million for the three months ended June 29, 2013, and $0.4 million for the three months ended June 30, 2012.

Goodwill is not amortized but will be evaluated for impairment in the last quarter of Fiscal 2014, or whenever impairment indicators exist. As of June 29, 2013, cumulative impairment related to goodwill totaled $5.4 million. There were no charges related to the impairment of goodwill in the periods presented.

 

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

 

Remainder of Fiscal 2014

   $ 2,005   

Fiscal 2015

     2,841   

Fiscal 2016

     2,835   

Fiscal 2017

     2,835   

Fiscal 2018

     2,788   

Thereafter

     13,237   
  

 

 

 
   $ 26,541   
  

 

 

 

Credit Facilities
Credit Facilities

6. Credit Facilities

Secured Revolving Credit Facility

The Company had a revolving credit facility, with a maturity date of September 15, 2015, which it terminated during February 2013 (the “2011 Credit Facility”). The 2011 Credit Facility was originally entered into during Fiscal 2007 and was amended on September 15, 2011. Pursuant to such amendment, the Credit Facility provided up to $100.0 million of borrowings, and was originally set to expire on September 15, 2015. The agreement also provided for loans and letters of credit to our European subsidiaries of up to $35.0 million. All other terms and conditions under the 2011 Credit Facility remained consistent with the original agreement. The 2011 Credit Facility provided for aggregate credit available equal to the lesser of (i) $100.0 million, or (ii) the sum of specified percentages of eligible receivables and eligible inventory, as defined, plus $30.0 million. The terms of the 2011 Credit Facility required all amounts outstanding under the agreement to be collateralized by substantially all of our assets throughout the duration of the agreement. The 2011 Credit Facility contained financial covenants which limited our capital expenditures to $110.0 million for any one fiscal year plus additional amounts as permitted, and a minimum fixed charge coverage ratio of 2.0 to 1.0 (with the ratio being EBITDA plus consolidated rent expense to the sum of fixed charges plus consolidated rent expense), restricted and limited additional indebtedness, and restricted the incurrence of additional liens and cash dividends. During the three months ended June 30, 2012 the Company was in compliance with all of the covenants covered under the agreement.

Borrowings under the 2011 Credit Facility accrued interest at the rate per annum announced from time to time by the agent of 1.25% above the prevailing applicable prime rate, or at a per annum rate equal to 2.25% above the prevailing LIBOR rate. For the three months ended June 30, 2012, the weighted average interest rate for the revolving credit facility was 2.94%. The Credit Facility required an annual facility fee of $0.1 million, and an annual commitment fee of 0.35% on the unused portion of the available credit under the Credit Facility, which was payable quarterly.

At June 29, 2013 there were no amounts outstanding or available related to this agreement.

Senior Unsecured Revolving Credit Facility

On February 8, 2013, the Company terminated the provisions of its existing 2011 Credit Facility and entered into a senior unsecured credit facility (“2013 Credit Facility”). Pursuant to the agreement the 2013 Credit Facility provides for up to $200.0 million of borrowings, and expires on February 8, 2018. The agreement also provides for loans and letters of credit to our European subsidiaries of up to $100.0 million. The 2013 Credit Facility contains financial covenants such as requiring an adjusted leverage ratio of 3.5 to 1.0 (with the ratio being total consolidated indebtedness plus 8.0 times consolidated rent expense to EBITDA plus consolidated rent expense) and a fixed charge coverage ratio of 2.0 to 1.0 (with the ratio being EBITDA plus consolidated rent expense to the sum of fixed charges plus consolidated rent expense), restricts and limits additional indebtedness, and restricts the incurrence of additional liens and cash dividends. As of June 29, 2013, the Company was in compliance with all covenants related to this agreement.

Borrowings under the 2013 Credit Facility accrue interest at the rate per annum announced from time to time by the agent a rate based on the rates applicable for deposits in the London interbank market for U.S. Dollars or the applicable currency in which the loans are made (the “Adjusted LIBOR”) plus an applicable margin. The applicable margin may range from 1.25% to 2.5%, and is based, or dependent upon, a particular threshold related to the adjusted leverage ratio calculated during the period of borrowing. For the three months ended June 29, 2013, the weighted average interest rate for the revolving credit facility was 1.58%. The 2013 Credit Facility requires an annual facility fee of $0.1 million, and an annual commitment fee of 0.25% to 0.35% on the unused portion of the available credit under the facility.

As of June 29, 2013, there were no amounts outstanding under the 2013 Credit Facility, and the amount available for future borrowings was $189.3 million. The largest amount borrowed during the three months ended June 29, 2013, was $6.5 million. At June 29, 2013, there were documentary letters of credit outstanding of approximately $0.4 million, and stand-by letters of credit of $10.3 million.

Commitments and Contingencies
Commitments and Contingencies

7. Commitments and Contingencies

In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, the Company’s management does not believe that the outcome of all pending legal proceedings in the aggregate will have a material adverse effect on its cash flow, results of operations or financial position.

Fair Value of Financial Instruments
Fair Value of Financial Instruments

8. Fair Value of Financial Instruments

Financial assets and liabilities are measured at fair value using a valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date.

Level 2 – Valuations based on quoted inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The Company has historically entered into forward exchange contracts to hedge the foreign currency exposure for certain inventory purchases from its manufacturers in Europe and Asia, as well as commitments for certain services. The forward contracts that are used in the program mature in twelve months or less, consistent with the related panned purchases or services. The Company attempts to hedge the majority of its total anticipated European and Asian purchase and service contracts. Realized gains and losses applicable to derivatives used for inventory purchases are recognized in cost of sales, and those applicable to other services are recognized in selling, general and administrative expenses (see Note 2 Summary of Significant Accounting Policies- Derivative Financial Instruments, for further detail regarding hedge accounting treatment as it relates to gains and losses). At June 29, 2013, the fair value of the Company’s foreign currency forward contracts, the Company’s only derivatives, were valued using broker quotations which were calculations derived from observable market information: the applicable currency forward rates at the balance sheet date and those forward rates particular to the contract at inception. The Company makes no adjustments to these broker obtained quotes or prices, but does assess the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair value of the forward contracts are included in prepaid expenses and other current assets, and in accrued expenses and other current liabilities in the consolidated balance sheets, depending on whether they represent assets or (liabilities) to the Company. All contracts are categorized in Level 2 of the fair value hierarchy as shown in the following table:

 

     Total      Fair value at June 29, 2013, using:  
(In thousands)       Quoted prices in
active markets for
identical assets
(Level 1)
     Significant other
observable inputs
(Level 2)
     Significant
unobservable
inputs

(Level 3)
 

Foreign currency forward contracts- Euro

   $ 849       $ —         $ 849       $ —     

Foreign currency forward contracts- Canadian Dollar

     416            416      

Foreign currency forward contracts- U.S. Dollar

     4         —           4         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,269       $ —         $ 1,269       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company’s cash and cash equivalents, accounts receivable and accounts payable, are recorded at carrying value, which approximates fair value. Borrowings under the Credit Facility are recorded at face value as the fair value of the Credit Facility is synonymous with its recorded value as it is a short-term debt facility due to its revolving nature.

Other Comprehensive Income- Hedging Instruments
Other Comprehensive Income- Hedging Instruments

9. Other Comprehensive Income- Hedging Instruments

The Company designates certain forward currency exchange contracts as hedges for hedge accounting purposes (see Note 2, Summary of Significant Accounting Policies- Derivative Financial Instruments). The Company employs forward currency contracts to hedge the Company’s exposures, as they relate to certain forecasted inventory purchase in foreign currencies, and as such are regarded as cash flow hedges up to such time the forecasted transaction occurs.

Changes in the fair value of the effective portion of these contracts are recorded in equity as a component of accumulated other comprehensive income, as of each balance sheet date, and are reclassified from accumulated other comprehensive income into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations. During the three months ended June 29, 2013, the net realized loss of $0.6 million, related to the change in fair value of those contracts, the effective portion, was charged to other comprehensive income. For the three months ended June 29, 2013, the amounts reclassified out of accumulated other comprehensive income were de minimis.

There were no contracts designated as hedging for hedge accounting purposes prior to and as of June 30, 2012.

Share-Based Compensation
Share-Based Compensation

10. Share-Based Compensation

The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation Committee. The Company has two equity plans, one adopted in Fiscal 2008, the Michael Kors (USA), Inc. Stock Option Plan (as amended and restated, the “2008 Plan”), and the other adopted in the third fiscal quarter of Fiscal 2012, the Michael Kors Holdings Limited Omnibus Incentive Plan (the “2012 Plan”). The 2008 Plan provided for the granting of share options only and was authorized to issue up to 23,980,823 ordinary shares. As of March 31, 2012, there are no shares available for the granting of equity awards under the 2008 Plan. The 2012 Plan allows for the granting of share options, restricted shares and restricted share units, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At June 29, 2013, there were 11,904,792 ordinary shares available for the granting of equity awards under the 2012 Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the 2012 Plan generally expire seven years from the date of the grant.

Share Options

Share options are generally exercisable at no less than the fair market value on the date of grant. The Company has issued two types of option grants, those that vest based on the attainment of a performance target and those that vest based on the passage of time. Performance based share options may vest based upon the attainment of one of two performance measures. One performance measure is an individual performance target, which is based upon certain performance targets unique to the individual grantee, and the other measure is a company-wide performance target, which is based on a cumulative minimum growth requirement in consolidated net equity. The individual performance target vests 20% of the total option grant each year the target is satisfied. The individual has ten years in which to achieve five individual performance vesting tranches. The company-wide performance target must be achieved over the ten-year term. Performance is measured at the end of the term, and any unvested options under the grant vest if the target is achieved. The Company-wide performance target is established at the time of the grant. The target metrics underlying individual performance vesting requirements are established for each recipient each year up until such time as the grant is fully vested. Options subject to time based vesting requirements generally become vested in four equal increments on each of the first, second, third and fourth anniversaries of the date on which such options were awarded.

 

The following table summarizes the share option activity during the three months ended June 29, 2013, and information about options outstanding June 29, 2013:

 

     Number of
Options
    Weighted
Average
Exercise price
     Weighted
Average
Remaining
Contractual
Life (years)
     Aggregate
Intrinsic
Value

(in  thousands)
 

Outstanding at March 30, 2013

     10,381,342      $ 9.21         

Granted

     598,903      $ 62.24         

Exercised

     (1,118,416   $ 5.73         

Canceled/forfeited

     (2,507   $ 62.24         
  

 

 

         

Outstanding at June 29, 2013

     9,859,322      $ 12.81         6.92       $ 485,285   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at June 29, 2013

     9,464,949      $ 12.81         6.92      
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested and exercisable at June 29, 2013

     3,228,969      $ 6.91         6.69       $ 177,944   
  

 

 

   

 

 

    

 

 

    

 

 

 

There were 6,630,353 non-vested and 3,228,969 vested outstanding options at June 29, 2013. The total intrinsic value of options exercised during the three months ended June 29, 2013 was $64.1 million, and the cash received from options exercised during this period was $6.4 million. The total intrinsic value of options exercised during the three months ended June 30, 2012 was $17.7 million, and the cash received from options exercised during this period was $2.6 million. As of June 29, 2013, the remaining unrecognized share-based compensation expense for non-vested share options and restricted shares to be expensed in future periods is $41.2 million, and the related weighted-average period over which it is expected to be recognized is approximately 3.91 years.

The weighted average grant date fair value for options granted during the three months ended June 29, 2013 was $24.87. The weighted average grant date fair value was $16.26 for options granted during the three months ended June 30, 2012. The following table represents assumptions used to estimate the fair value of options:

 

     Three Months Ended  
     June 29,
2013
    June 30,
2012
 

Expected dividend yield

     0.0     0.0

Volatility factor

     46.2     50.2

Weighted average risk-free interest rate

     1.0     0.6

Expected life of option

     4.75 years        4.75 years   

Restricted Shares and Restricted Share Units

The Company grants restricted shares and restricted share units at the fair market value at the date of the grant. Expense for restricted share grants is calculated based on the intrinsic value of the grant, which is the difference between the cost to the recipient and the fair market value of the underlying share (grants are generally issued at no cost to the recipient). Expense is recognized ratably over the vesting period which is generally three to four years from the date of the grant. Similar to share options, restricted share grants generally vest in four equal increments on each of the first, second, third and fourth anniversaries of the date on which such grants were awarded. With respect to restricted share units, there are two types: performance based vesting grants and time based vesting grants. Share units whose vesting is based on meeting certain performance criteria, vest in full three years from their anniversary date only if certain cumulative performance targets are met at the end of the three year period. Expense related to these grants is recognized ratably over the three year performance period subject to the probability of the attainment of the related performance targets. Share units that vest based on time generally vest in full on the first anniversary of the date of the grant, and are expensed over a one year period.

 

The following table summarizes restricted shares under the 2012 Plan as of June 29, 2013 and changes during the fiscal period then ended:

 

     Number of Unvested
Restricted Shares
    Weighted
Average Grant
Date Fair Value
 

Unvested at March 30, 2013

     617,468      $ 23.66   

Granted

     239,936      $ 62.24   

Vested

     (815   $ 38.38   

Canceled/forfeited

     (1,004   $ 62.24   
  

 

 

   

Unvested at June 29, 2013

     855,585      $ 34.41   
  

 

 

   

The total fair value of restricted shares vested during the three months ended June 29, 2013 was $0.1 million. There were no restricted shares/units that vested during the three months ended June 30, 2012. As of June 29, 2013, the remaining unrecognized share-based compensation expense for non-vested restricted share grants to be expensed in future periods is $25.7 million, and the related weighted-average period over which it is expected to be recognized is approximately 3.21years.

The following table summarizes restricted share units under the 2012 Plan as of June 29, 2013 and changes during the fiscal period then ended:

 

     Number of Unvested
Restricted Units
     Weighted
Average Grant
Date Fair Value
 

Unvested at March 30, 2013

     27,763       $ 31.12   

Granted

     163,077       $ 62.24   

Vested

     —         $ —     

Canceled/forfeited

     —         $ —     
  

 

 

    

Unvested at June 29, 2013

     190,840       $ 57.71   
  

 

 

    

As of June 29, 2013, the remaining unrecognized share-based compensation expense for non-vested restricted share units to be expensed in future periods is $10.1 million, and the related weighted-average period over which it is expected to be recognized is approximately 2.89 years.

Compensation expense attributable to share-based compensation for the three months ended June 29, 2013 was approximately $5.6 million. The compensation expense recognized during the three months ended June 30, 2012, was approximately $5.0 million. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate since the inception of stock option granting. The estimated value of future forfeitures for equity grants as of June 29, 2013 is approximately $2.1 million.

Segment Information
Segment Information

11. 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 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):

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Revenue:

     

Net sales: Retail

   $ 325,672       $ 215,004   

Wholesale

     290,576         182,366   

Licensing

     24,611         17,495   
  

 

 

    

 

 

 

Total revenue

   $ 640,859       $ 414,865   
  

 

 

    

 

 

 

Income from operations:

     

Retail

   $ 103,114       $ 59,879   

Wholesale

     81,046         40,718   

Licensing

     13,402         11,346   
  

 

 

    

 

 

 

Income from operations

   $ 197,562       $ 111,943   
  

 

 

    

 

 

 

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

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Depreciation and amortization:

     

Retail

   $ 9,717       $ 9,213   

Wholesale

     6,151         3,766   

Licensing

     107         76   
  

 

 

    

 

 

 

Total depreciation and amortization

   $ 15,975       $ 13,055   
  

 

 

    

 

 

 

 

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  
     June 29,
2013
     June 30,
2012
 

Revenue:

     

North America (U.S. and Canada)

   $ 551,554       $ 377,149   

Europe

     81,479         33,387   

Other regions

     7,826         4,329   
  

 

 

    

 

 

 

Total revenue

   $ 640,859       $ 414,865   
  

 

 

    

 

 

 
     As of  
     June 29,
2013
     March 30,
2013
 

Long-lived assets:

     

North America (U.S. and Canada)

   $ 220,959       $ 209,973   

Europe

     57,034         46,154   

Other regions

     6,569         6,966   
  

 

 

    

 

 

 

Total Long-lived assets:

   $ 284,562       $ 263,093   
  

 

 

    

 

 

 

Summary of Significant Accounting Policies (Policies)

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates.

Derivative Financial Instruments

The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions, of which certain of these contracts are designated as hedges for accounting purposes, while others are undesignated hedges for hedge accounting purposes. These derivative instruments are recorded on Company’s consolidated balance sheets at fair value, regardless if they are designated or undesignated as hedges.

Prior to Fiscal 2013, the Company did not designate these instruments as hedges for hedge accounting purposes. During the third quarter of Fiscal 2013, the Company adopted the provisions of hedge accounting and elected to designate certain contracts entered into during that period as hedges for hedge accounting purposes, and will continue to do so going forward, for contracts related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during the quarter ended June 29, 2013, are recorded in equity as a component of accumulated other comprehensive income, and to cost of sales for any portion of those contracts deemed ineffective. The Company will continue to record changes in the fair value of hedge designated contracts in this manner until their maturity, where the unrealized gain or loss will be recognized into earnings in that period. For those contracts entered into prior to adoption of hedge accounting, as well as those that will not be designated as hedges in future periods, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in cost of sales or operating expenses, within the Company’s consolidated statements of operations, as applicable to the transactions for which the forward exchange contracts were intended to hedge. During the three months ended June 29, 2013, the net realized gain of $0.6 million, related to the change in fair value of those contracts not designated as hedges, were recorded as a component of cost of sales. In addition, the net unrealized loss related to contracts designated as hedges for $0.6 million, was charged to equity as a component of accumulated other comprehensive income during the three months ended June 29, 2013. For the three months ended June 29, 2013, amounts related to the ineffectiveness of these contracts were de minimis. The following table details the fair value of these contracts as of June 29, 2013, and March 30, 2013 (in thousands):

 

     June 29,
2013
     March 30,
2013
 

Prepaid expenses and other current assets

   $ 1,269       $ 1,367   

Accrued expenses and other current liabilities

   $ —         $ (71

The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In attempts to mitigate counterparty credit risk, the Company enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge. The notional amount of these contracts outstanding at June 29, 2013 was approximately $99.0 million, which was comprised predominately of those designated as hedges.

Net Income Per Share

The Company’s basic net income per share excludes the dilutive effect of share options and units, as well as unvested restricted shares. It is based upon the weighted average number of ordinary shares outstanding during the period divided into net income.

Diluted net income per share reflects the potential dilution that would occur if share option grants or any other dilutive equity instruments were exercised or converted into ordinary shares. These equity instruments are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods.

The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data):

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Numerator:

     

Net Income

   $ 124,996       $ 68,645   

Denominator:

     

Basic weighted average ordinary shares

     201,208,189        192,790,454  

Weighted average dilutive share equivalents:

     

Share options and restricted shares/units

     3,127,935        6,600,673  
  

 

 

    

 

 

 

Diluted weighted average ordinary shares

     204,336,124        199,391,127  

Basic net income per ordinary share

   $ 0.62       $ 0.36   
  

 

 

    

 

 

 

Diluted net income per ordinary share

   $ 0.61       $ 0.34   
  

 

 

    

 

 

 

Share equivalents for the three months ended June 29, 2013 for 63,715 shares have been excluded from the above calculation as they were anti-dilutive. Share equivalents for the three months ended June 30, 2012 for 105,755 shares have been excluded from the above calculation as they were anti-dilutive.

Recent Accounting Pronouncements— With the exception of the below, the Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that have a material impact on results of operations, financial condition, or cash flows, based on current information.

During the fiscal quarter ended June 29, 2013, the company adopted the provisions of Accounting Standard Update 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”) which the Financial Accounting Standards Board (“FASB”) issued in February 2013. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU is effective for annual periods and interim periods within those periods beginning after December 15, 2012. For the three months ended June 29, 2013, the amounts reclassified out of accumulated other comprehensive income were de minimis.

Summary of Significant Accounting Policies (Tables)

The following table details the fair value of these contracts as of June 29, 2013, and March 30, 2013 (in thousands):

 

     June 29,
2013
     March 30,
2013
 

Prepaid expenses and other current assets

   $ 1,269       $ 1,367   

Accrued expenses and other current liabilities

   $ —         $ (71

The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data):

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Numerator:

     

Net Income

   $ 124,996       $ 68,645   

Denominator:

     

Basic weighted average ordinary shares

     201,208,189        192,790,454  

Weighted average dilutive share equivalents:

     

Share options and restricted shares/units

     3,127,935        6,600,673  
  

 

 

    

 

 

 

Diluted weighted average ordinary shares

     204,336,124        199,391,127  

Basic net income per ordinary share

   $ 0.62       $ 0.36   
  

 

 

    

 

 

 

Diluted net income per ordinary share

   $ 0.61       $ 0.34   
  

 

 

    

 

 

 
Receivables, net (Tables)
Receivables, net

Receivables, net consist of (in thousands):

 

     June 29,
2013
    March 30,
2013
 

Trade receivables:

    

Credit risk assumed by factors/insured

   $ 168,876      $ 199,677   

Credit risk retained by Company

     35,892        45,588   

Receivables due from licensees

     9,645        7,344   
  

 

 

   

 

 

 
     214,413        252,609   

Less allowances:

     (44,022     (46,155
  

 

 

   

 

 

 
   $ 170,391      $ 206,454   
  

 

 

   

 

 

 
Property and Equipment, net (Tables)
Property and Equipment, Net

Property and equipment consist of (in thousands):

 

     June 29,
2013
    March 30,
2013
 

Furniture and fixtures

   $ 82,509      $ 76,336   

Equipment

     14,249        13,276   

Computer equipment and software

     30,565        29,429   

In-store shops

     85,962        78,809   

Leasehold improvements

     178,559        168,306   
  

 

 

   

 

 

 
     391,844        366,156   

Less: accumulated depreciation and amortization

     (178,662     (165,340
  

 

 

   

 

 

 
     213,182        200,816   

Construction-in-progress

     44,839        41,297   
  

 

 

   

 

 

 
   $ 258,021      $ 242,113   
  

 

 

   

 

 

 
Intangible Assets and Goodwill (Tables)

The following table discloses the carrying values of intangible assets and goodwill (in thousands):

 

     June 29, 2013      March 30, 2013  
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net      Gross
Carrying
Amount
     Accumulated
Amortization
     Net  

Trademarks

   $ 23,000       $ 11,980       $ 11,020       $ 23,000       $ 11,693       $ 11,307   

Lease Rights

     18,432         2,911         15,521         12,433         2,760         9,673   

Goodwill

     14,005         —           14,005         14,005         —           14,005   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 55,437       $ 14,891       $ 40,546       $ 49,438       $ 14,453       $ 34,985   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

Remainder of Fiscal 2014

   $ 2,005   

Fiscal 2015

     2,841   

Fiscal 2016

     2,835   

Fiscal 2017

     2,835   

Fiscal 2018

     2,788   

Thereafter

     13,237   
  

 

 

 
   $ 26,541   
  

 

 

 
Fair Value of Financial Instruments (Tables)
Contracts Categorized in Level 2 of Fair Value Hierarchy

All contracts are categorized in Level 2 of the fair value hierarchy as shown in the following table:

 

     Total      Fair value at June 29, 2013, using:  
(In thousands)       Quoted prices in
active markets for
identical assets
(Level 1)
     Significant other
observable inputs
(Level 2)
     Significant
unobservable
inputs

(Level 3)
 

Foreign currency forward contracts- Euro

   $ 849       $ —         $ 849       $ —     

Foreign currency forward contracts- Canadian Dollar

     416            416      

Foreign currency forward contracts- U.S. Dollar

     4         —           4         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,269       $ —         $ 1,269       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 
Share-Based Compensation (Tables)

The following table summarizes the share option activity during the three months ended June 29, 2013, and information about options outstanding June 29, 2013:

 

     Number of
Options
    Weighted
Average
Exercise price
     Weighted
Average
Remaining
Contractual
Life (years)
     Aggregate
Intrinsic
Value

(in  thousands)
 

Outstanding at March 30, 2013

     10,381,342      $ 9.21         

Granted

     598,903      $ 62.24         

Exercised

     (1,118,416   $ 5.73         

Canceled/forfeited

     (2,507   $ 62.24         
  

 

 

         

Outstanding at June 29, 2013

     9,859,322      $ 12.81         6.92       $ 485,285   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at June 29, 2013

     9,464,949      $ 12.81         6.92      
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested and exercisable at June 29, 2013

     3,228,969      $ 6.91         6.69       $ 177,944   
  

 

 

   

 

 

    

 

 

    

 

 

 

The following table represents assumptions used to estimate the fair value of options:

 

     Three Months Ended  
     June 29,
2013
    June 30,
2012
 

Expected dividend yield

     0.0     0.0

Volatility factor

     46.2     50.2

Weighted average risk-free interest rate

     1.0     0.6

Expected life of option

     4.75 years        4.75 years   

The following table summarizes restricted shares under the 2012 Plan as of June 29, 2013 and changes during the fiscal period then ended:

 

     Number of Unvested
Restricted Shares
    Weighted
Average Grant
Date Fair Value
 

Unvested at March 30, 2013

     617,468      $ 23.66   

Granted

     239,936      $ 62.24   

Vested

     (815   $ 38.38   

Canceled/forfeited

     (1,004   $ 62.24   
  

 

 

   

Unvested at June 29, 2013

     855,585      $ 34.41   
  

 

 

   

The following table summarizes restricted share units under the 2012 Plan as of June 29, 2013 and changes during the fiscal period then ended:

 

     Number of Unvested
Restricted Units
     Weighted
Average Grant
Date Fair Value
 

Unvested at March 30, 2013

     27,763       $ 31.12   

Granted

     163,077       $ 62.24   

Vested

     —         $ —     

Canceled/forfeited

     —         $ —     
  

 

 

    

Unvested at June 29, 2013

     190,840       $ 57.71   
  

 

 

    
Segment Information (Tables)

The following table presents the key performance information of the Company’s reportable segments (in thousands):

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Revenue:

     

Net sales: Retail

   $ 325,672       $ 215,004   

Wholesale

     290,576         182,366   

Licensing

     24,611         17,495   
  

 

 

    

 

 

 

Total revenue

   $ 640,859       $ 414,865   
  

 

 

    

 

 

 

Income from operations:

     

Retail

   $ 103,114       $ 59,879   

Wholesale

     81,046         40,718   

Licensing

     13,402         11,346   
  

 

 

    

 

 

 

Income from operations

   $ 197,562       $ 111,943   
  

 

 

    

 

 

 

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

 

     Three Months Ended  
     June 29,
2013
     June 30,
2012
 

Depreciation and amortization:

     

Retail

   $ 9,717       $ 9,213   

Wholesale

     6,151         3,766   

Licensing

     107         76   
  

 

 

    

 

 

 

Total depreciation and amortization

   $ 15,975       $ 13,055   
  

 

 

    

 

 

 

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  
     June 29,
2013
     June 30,
2012
 

Revenue:

     

North America (U.S. and Canada)

   $ 551,554       $ 377,149   

Europe

     81,479         33,387   

Other regions

     7,826         4,329   
  

 

 

    

 

 

 

Total revenue

   $ 640,859       $ 414,865   
  

 

 

    

 

 

 
   As of  
     June 29,
2013
     March 30,
2013
 

Long-lived assets:

     

North America (U.S. and Canada)

   $ 220,959       $ 209,973   

Europe

     57,034         46,154   

Other regions

     6,569         6,966   
  

 

 

    

 

 

 

Total Long-lived assets:

   $ 284,562       $ 263,093   
  

 

 

    

 

 

 
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Stock Options
 
 
Significant Accounting Policies [Line Items]
 
 
Anti-dilutive securities excluded from computation of earning per share
63,715 
105,755 
Foreign Exchange Forward |
Not Designated as Hedging Instrument
 
 
Significant Accounting Policies [Line Items]
 
 
Forward contracts term, maximum
12 months 
 
Foreign Exchange Forward |
Not Designated as Hedging Instrument |
Cost of Sales
 
 
Significant Accounting Policies [Line Items]
 
 
Gain (loss) on forward contracts
$ 0.6 
 
Foreign Exchange Forward |
Designated as Hedging Instrument
 
 
Significant Accounting Policies [Line Items]
 
 
Net unrealized gain (loss) on derivatives
(0.6)
 
Notional amount of forward contract
$ 99.0 
 
Fair Values of Forward Foreign Currency Exchange Contracts (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument, USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Prepaid Expenses and Other Current Assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
$ 1,269 
$ 1,367 
Accrued Expenses and Other Current Liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
 
$ (71)
Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Numerator:
 
 
Net income
$ 124,996 
$ 68,645 
Denominator:
 
 
Basic weighted average ordinary shares
201,208,189 
192,790,454 
Weighted average dilutive share equivalents:
 
 
Share options and restricted shares/units
3,127,935 
6,600,673 
Diluted weighted average ordinary shares
204,336,124 
199,391,127 
Basic net income per ordinary share
$ 0.62 
$ 0.36 
Diluted net income per ordinary share
$ 0.61 
$ 0.34 
Receivables, net (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Receivables due from licensees
$ 9,645 
$ 7,344 
Receivables, Gross, Current
214,413 
252,609 
Less allowances
(44,022)
(46,155)
Receivables, net
170,391 
206,454 
Credit Risk Assumed by Factors/Insured
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Trade receivables
168,876 
199,677 
Credit Risk Assumed by Company
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Trade receivables
$ 35,892 
$ 45,588 
Receivables, net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Allowance for doubtful accounts
$ 1.2 
$ 1.1 
Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 391,844 
$ 366,156 
Less: accumulated depreciation and amortization
(178,662)
(165,340)
Subtotal
213,182 
200,816 
Construction-in-progress
44,839 
41,297 
Property and equipment, net
258,021 
242,113 
Furniture and Fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
82,509 
76,336 
Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
14,249 
13,276 
Computer Equipment And Software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
30,565 
29,429 
In-Store Shops
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
85,962 
78,809 
Leasehold Improvement
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 178,559 
$ 168,306 
Property and Equipment, net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Property, Plant and Equipment [Line Items]
 
 
Depreciation and amortization of property and equipment
$ 15.5 
$ 12.7 
Carrying Values of Intangible Assets and Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Mar. 30, 2013
Intangible Assets And Goodwill [Line Items]
 
 
Goodwill, Gross Carrying Amount
$ 14,005 
$ 14,005 
Goodwill, Net
14,005 
14,005 
Gross Carrying Amount
55,437 
49,438 
Accumulated Amortization
14,891 
14,453 
Net
26,541 
 
Net
40,546 
34,985 
Trademarks
 
 
Intangible Assets And Goodwill [Line Items]
 
 
Gross Carrying Amount
23,000 
23,000 
Accumulated Amortization
11,980 
11,693 
Net
11,020 
11,307 
Lease Rights
 
 
Intangible Assets And Goodwill [Line Items]
 
 
Gross Carrying Amount
18,432 
12,433 
Accumulated Amortization
2,911 
2,760 
Net
$ 15,521 
$ 9,673 
Intangible Assets and Goodwill - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Intangible Assets And Goodwill [Line Items]
 
 
Amortization expense
$ 0.4 
$ 0.4 
Cumulative impairment of goodwill
$ 5.4 
 
Trademarks
 
 
Intangible Assets And Goodwill [Line Items]
 
 
Amortization period
20 years 
 
Estimated Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Expected Amortization Expense [Line Items]
 
Remainder of Fiscal 2014
$ 2,005 
Fiscal 2015
2,841 
Fiscal 2016
2,835 
Fiscal 2017
2,835 
Fiscal 2018
2,788 
Thereafter
13,237 
Net
$ 26,541 
Credit Facilities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Credit Facility 2011
 
 
Line of Credit Facility [Line Items]
 
 
Secured revolving credit facility, Expiration date
Sep. 15, 2015 
 
Line of credit facility maximum borrowing capacity
$ 100.0 
 
Aggregate Credit available other than the sum of eligible receivables and eligible inventory
30.0 
 
Financial covenants on capital expenditure
110.0 
 
Line of Credit Weighted Average rate of interest
 
2.94% 
Line of Credit Annual Facility fee on unused portion
0.1 
 
Line of Credit Annual Commitment fees on unused portion
0.35% 
 
Credit Facility 2011 |
Europe
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility maximum borrowing capacity
35.0 
 
Credit Facility 2011 |
Prime Rate
 
 
Line of Credit Facility [Line Items]
 
 
Interest rate
1.25% 
 
Credit Facility 2011 |
L I B O Rate
 
 
Line of Credit Facility [Line Items]
 
 
Interest rate
2.25% 
 
Credit Facility 2011 |
Maximum
 
 
Line of Credit Facility [Line Items]
 
 
Minimum fixed charge coverage ratio
2.0 
 
Credit Facility 2011 |
Minimum
 
 
Line of Credit Facility [Line Items]
 
 
Minimum fixed charge coverage ratio
1.0 
 
Credit Facility 2013
 
 
Line of Credit Facility [Line Items]
 
 
Secured revolving credit facility, Expiration date
Feb. 08, 2018 
 
Line of credit facility maximum borrowing capacity
200.0 
 
Line of Credit Weighted Average rate of interest
1.58% 
 
Line of Credit Annual Facility fee on unused portion
0.1 
 
Line of credit facility consolidated rent expense
8.0 times 
 
Line of credit facility available for future borrowings
189.3 
 
Largest amount borrowed
6.5 
 
Credit Facility 2013 |
Europe
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility maximum borrowing capacity
100.0 
 
Credit Facility 2013 |
Letter of Credit
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility amount outstanding
0.4 
 
Credit Facility 2013 |
Standby Letters of Credit
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility amount outstanding
$ 10.3 
 
Credit Facility 2013 |
Maximum
 
 
Line of Credit Facility [Line Items]
 
 
Minimum fixed charge coverage ratio
2.0 
 
Line of Credit Annual Commitment fees on unused portion
0.35% 
 
Line of credit facility covenant adjusted leverage ratio
3.5 
 
Credit Facility 2013 |
Maximum |
L I B O Rate
 
 
Line of Credit Facility [Line Items]
 
 
Interest rate
2.50% 
 
Credit Facility 2013 |
Minimum
 
 
Line of Credit Facility [Line Items]
 
 
Minimum fixed charge coverage ratio
1.0 
 
Line of Credit Annual Commitment fees on unused portion
0.25% 
 
Line of credit facility covenant adjusted leverage ratio
1.0 
 
Credit Facility 2013 |
Minimum |
L I B O Rate
 
 
Line of Credit Facility [Line Items]
 
 
Interest rate
1.25% 
 
Fair Value of Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument)
3 Months Ended
Jun. 29, 2013
Foreign Exchange Forward |
Not Designated as Hedging Instrument
 
Fair Value of Financial Instruments [Line Items]
 
Forward contracts term, maximum
12 months 
Contracts Categorized in Level 2 of Fair Value Hierarchy (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Total
$ 1,269 
Euro Member Countries, Euro
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
849 
Canada, Dollars
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
416 
United States of America, Dollars
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
Fair Value, Inputs, Level 2
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Total
1,269 
Fair Value, Inputs, Level 2 |
Euro Member Countries, Euro
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
849 
Fair Value, Inputs, Level 2 |
Canada, Dollars
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
416 
Fair Value, Inputs, Level 2 |
United States of America, Dollars
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Foreign currency forward contracts-Asset
$ 4 
Other Comprehensive Income Hedging Instrument - Additional Information (Detail) (Foreign Exchange Forward, USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Foreign Exchange Forward
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
Net realized loss related to the change in fair value
$ 0.6 
Share-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Jun. 29, 2013
OptionPlan
EquityPlan
Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of equity plans
 
Number of stock option grants
 
Outstanding option non-vested
6,630,353 
 
Outstanding option vested
3,228,969 
 
Intrinsic value of option exercised
$ 64.1 
$ 17.7 
Cash received from options exercised
6.4 
2.6 
Unrecognized stock based compensation expense
41.2 
 
Weighted average period of recognition
3 years 10 months 28 days 
 
Weighted average grant date fair value of option
$ 24.87 
$ 16.26 
Fair value of restricted shares vested during a period
0.1 
 
Equity compensation expense
5.6 
5.0 
Estimated value of future forfeitures
2.1 
 
Individual Performance Based Stock Option
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting percentage on achievement of individual performance
20.00% 
 
Performance target achievement term
10 years 
 
Individual performance vesting tranches
 
Company Wide Performance Based Stock Option
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Performance target achievement term
10 years 
 
Time Based Option Award
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of installments for vesting period on each of the first, second, third and fourth anniversaries date of award
 
Restricted Shares
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of installments for vesting period on each of the first, second, third and fourth anniversaries date of award
 
Unrecognized stock based compensation expense
25.7 
 
Weighted average period of recognition
3 years 2 months 16 days 
 
Restricted Shares |
Minimum
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, vesting period
3 years 
 
Restricted Shares |
Maximum
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, vesting period
4 years 
 
Restricted Share Units
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized stock based compensation expense
$ 10.1 
 
Weighted average period of recognition
2 years 10 months 21 days 
 
Restricted Stock Units Performance Vesting
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, vesting period
3 years 
 
Expense related to grants recognizable period
3 years 
 
Restricted Stock Units Time Vesting
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expense related to grants recognizable period
1 year 
 
Stock Option Plan 2008
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share authorized for issuance
23,980,823 
 
Expiration period
10 years 
 
Omnibus Incentive Plan, Twenty Twelve
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share authorized for issuance
15,246,000 
 
Shares available for grant
11,904,792 
 
Expiration period
7 years 
 
Options Activity and Information about Options Outstanding (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Number of options
 
Outstanding at beginning of period
10,381,342 
Granted
598,903 
Exercised
(1,118,416)
Canceled/forfeited
(2,507)
Outstanding at end of period
9,859,322 
Vested or expected to vest at end of period
9,464,949 
Vested and exercisable at end of period
3,228,969 
Weighted Average Exercise Price
 
Outstanding at beginning of period
$ 9.21 
Granted
$ 62.24 
Exercised
$ 5.73 
Canceled/forfeited
$ 62.24 
Outstanding at end of period
$ 12.81 
Vested or expected to vest at end of period
$ 12.81 
Vested and exercisable at end of period
$ 6.91 
Weighted Average Remaining Contractual Live (years)
 
Outstanding at end of period
6 years 11 months 1 day 
Vested or expected to vest at end of period
6 years 11 months 1 day 
Vested and exercisable at end of period
6 years 8 months 9 days 
Aggregate Intrinsic Value
 
Outstanding at June 29, 2013
$ 485,285 
Vested and exercisable at June 29, 2013
$ 177,944 
Assumptions Used to Estimate Fair Value of Options (Detail)
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected dividend yield
0.00% 
0.00% 
Volatility factor
46.20% 
50.20% 
Weighted average risk-free interest rate
1.00% 
0.60% 
Expected life of option
4 years 9 months 
4 years 9 months 
Restricted Shares and Restricted Share Units (Detail) (USD $)
3 Months Ended
Jun. 29, 2013
Restricted Shares
 
Number of Unvested Restricted Shares/Units
 
Unvested at beginning of period
617,468 
Granted
239,936 
Vested
(815)
Canceled/forfeited
(1,004)
Unvested at end of period
855,585 
Weighted Average Grant Date Fair Value
 
Unvested at beginning of period
$ 23.66 
Granted
$ 62.24 
Vested
$ 38.38 
Canceled/forfeited
$ 62.24 
Unvested at end of period
$ 34.41 
Restricted Share Units
 
Number of Unvested Restricted Shares/Units
 
Unvested at beginning of period
27,763 
Granted
163,077 
Unvested at end of period
190,840 
Weighted Average Grant Date Fair Value
 
Unvested at beginning of period
$ 31.12 
Granted
$ 62.24 
Unvested at end of period
$ 57.71 
Segment Information - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Segment
Mar. 30, 2013
Segment Reporting Information [Line Items]
 
 
Number of operating segments
 
Goodwill
$ 14,005 
$ 14,005 
Wholesale
 
 
Segment Reporting Information [Line Items]
 
 
Goodwill
12,100 
 
Licensing
 
 
Segment Reporting Information [Line Items]
 
 
Goodwill
$ 1,900 
 
Key Performance Information of Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Segment Reporting Information [Line Items]
 
 
Revenue
$ 640,859 
$ 414,865 
Income from operations
197,562 
111,943 
Retail
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
325,672 
215,004 
Income from operations
103,114 
59,879 
Wholesale
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
290,576 
182,366 
Income from operations
81,046 
40,718 
Licensing
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
24,611 
17,495 
Income from operations
$ 13,402 
$ 11,346 
Depreciation and Amortization Expense for Each Segment (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Depreciation By Segment [Line Items]
 
 
Depreciation and amortization
$ 15,975 
$ 13,055 
Retail
 
 
Depreciation By Segment [Line Items]
 
 
Depreciation and amortization
9,717 
9,213 
Wholesale
 
 
Depreciation By Segment [Line Items]
 
 
Depreciation and amortization
6,151 
3,766 
Licensing
 
 
Depreciation By Segment [Line Items]
 
 
Depreciation and amortization
$ 107 
$ 76 
Total Revenue (as Recognized Based on Country of Origin), and Long-Lived Assets by Geographic Location (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Mar. 30, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenue
$ 640,859 
$ 414,865 
 
Long-lived assets
284,562 
 
263,093 
North America (U.S. and Canada)
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenue
551,554 
377,149 
 
Long-lived assets
220,959 
 
209,973 
Europe
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenue
81,479 
33,387 
 
Long-lived assets
57,034 
 
46,154 
Other Regions
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenue
7,826 
4,329 
 
Long-lived assets
$ 6,569 
 
$ 6,966