Capri Holdings LtdCPRI
Capri Holdings Ltd Goodwill & Intangibles Disclosure
Intangible Assets and Goodwill
The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
| March 28, 2026 | March 29, 2025 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization/Impairment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization/Impairment | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Definite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
| Reacquired rights | $ | 400 | $ | 158 | $ | 242 | $ | 400 | $ | 142 | $ | 258 | |||||||||||||||||||||||
| Trademarks | 23 | 23 | — | 23 | 23 | — | |||||||||||||||||||||||||||||
Customer relationships (1) | 220 | 109 | 111 | 214 | 94 | 120 | |||||||||||||||||||||||||||||
| Total definite-lived intangible assets | 643 | 290 | 353 | 637 | 259 | 378 | |||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Jimmy Choo brand (1) (2) | 567 | 358 | 209 | 562 | 358 | 204 | |||||||||||||||||||||||||||||
| Total indefinite-lived intangible assets | 567 | 358 | 209 | 562 | 358 | 204 | |||||||||||||||||||||||||||||
| Total intangible assets, excluding goodwill | $ | 1,210 | $ | 648 | $ | 562 | $ | 1,199 | $ | 617 | $ | 582 | |||||||||||||||||||||||
(1)The change in the carrying value since March 29, 2025 relates to the impact of foreign currency translation adjustments.
(2)As of March 28, 2026, the Company had accumulated impairment charges of $358 million related to its Jimmy Choo brand intangible assets.
Reacquired rights relate to the Company’s reacquisition of the rights to use the Michael Kors trademarks and to import, sell, advertise and promote certain of its products in the previously licensed territories in the Greater China region which are being amortized through March 31, 2041, the expiration date of the former licensing agreement. Amortization expense for the Company’s definite-lived intangibles was $29 million, $27 million and $27 million, respectively, for each of the fiscal years ended March 28, 2026, March 29, 2025 and March 30, 2024.
Indefinite-lived intangible assets other than goodwill included the Jimmy Choo brand, which was recorded in connection with the acquisition of Jimmy Choo, and has an indefinite life as it is essential to the Company’s ability to operate the business for the foreseeable future.
Estimated amortization expense for each of the next five years is as follows (in millions):
| Fiscal 2027 | $ | 29 | |||
| Fiscal 2028 | 29 | ||||
| Fiscal 2029 | 29 | ||||
| Fiscal 2030 | 29 | ||||
| Fiscal 2031 | 29 | ||||
| Fiscal 2032 and thereafter | 208 | ||||
| Total | $ | 353 | |||
The future amortization expense above reflects weighted-average estimated remaining useful lives of fifteen years for reacquired rights and nine years for customer relationships.
The following table details the changes in goodwill for each of the Company’s reportable segments (in millions):
| Michael Kors | Jimmy Choo | Total | |||||||||||||||
| Balance at March 30, 2024 | $ | 120 | $ | 133 | $ | 253 | |||||||||||
Acquisition (1) | — | 9 | 9 | ||||||||||||||
Impairment charges (2) | — | (66) | (66) | ||||||||||||||
Foreign currency translation | — | 3 | 3 | ||||||||||||||
| Balance at March 29, 2025 | $ | 120 | $ | 79 | $ | 199 | |||||||||||
| Acquisition | — | — | — | ||||||||||||||
Impairment charges (2) | — | — | — | ||||||||||||||
Foreign currency translation | — | 3 | 3 | ||||||||||||||
| Balance at March 28, 2026 | $ | 120 | $ | 82 | $ | 202 | |||||||||||
(1)On May 2, 2024, the Company completed the Sicla Acquisition for cash consideration of $9 million, net of cash acquired. The acquired identifiable assets and liabilities net to a nominal amount, with $9 million recognized in goodwill allocated to the Jimmy Choo reportable segment.
(2)As of March 28, 2026, the Company had accumulated impairment charges of $605 million related to its Jimmy Choo reporting units.
The Company’s goodwill and its Jimmy Choo brand are not subject to amortization but are evaluated for impairment annually in the last quarter of each fiscal year, or whenever impairment indicators exist. During the fourth quarter of Fiscal 2026, the Company performed its annual goodwill and indefinite-lived intangible asset impairment analysis.
The Company performed its goodwill impairment assessment for its Michael Kors reporting units using a qualitative assessment. Based on the results of the Company’s qualitative impairment assessment, the Company concluded that it is not more likely than not that the fair value of each of the Michael Kors’ reporting units was less than their carrying values and, therefore, were not impaired.
The Company performed its annual goodwill impairment analysis for the Jimmy Choo reporting units, electing to bypass the qualitative assessment and proceeding directly to the quantitative impairment analysis using a combination of income and market approaches to estimate the fair value of the brand’s reporting units. The Company also elected to perform a quantitative impairment analysis for the Jimmy Choo brand indefinite-lived intangible asset using an income approach to estimate its fair
value. Based on the results of these assessments, the Company determined there was no impairment for Jimmy Choo as the fair value of the reporting units goodwill and brand indefinite-lived intangible assets exceeded their related carrying amounts.
In Fiscal 2025, the Company recorded goodwill impairment charges of $66 million related to the Jimmy Choo Wholesale reporting unit and $15 million related to the Jimmy Choo Retail and Wholesale brand intangible assets. In Fiscal 2024, the Company recorded goodwill impairment charges of $192 million related to the Jimmy Choo Retail and Wholesale reporting units and $70 million related to the Jimmy Choo Retail and Wholesale brand intangible assets. The impairment charges were recorded within impairment of assets on the Company’s consolidated statement of operations and comprehensive (loss) income for the fiscal years ended March 29, 2025 and March 30, 2024, respectively. Refer to Note 15 - “Fair Value Measurements” for additional information.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 27, 2026 | Showing above |
| 2025 | May 28, 2025 | |
| 2024 | May 29, 2024 | |
| 2023 | May 31, 2023 | |
| 2022 | Jun 1, 2022 | |
| 2021 | May 26, 2021 | |
| 2020 | Jul 8, 2020 | |
| 2019 | May 29, 2019 | |
| 2018 | May 30, 2018 | |
| 2017 | May 31, 2017 | |
| 2016 | Jun 1, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.