CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 650,000,000 | 650,000,000 |
Ordinary shares, shares issued (in shares) | 217,320,010 | 216,050,939 |
Ordinary shares, shares outstanding (in shares) | 149,425,612 | 150,932,306 |
Treasury shares (in shares) | 67,894,398 | 65,118,633 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions |
Total |
Ordinary Shares |
Additional Paid-in Capital |
Treasury Shares |
Accumulated Other Comprehensive (Loss) Income |
Retained Earnings |
Total Equity of Capri |
Non-controlling Interests |
---|---|---|---|---|---|---|---|---|
Beginning balance at Apr. 01, 2017 | $ 1,595 | $ 0 | $ 768 | $ (2,655) | $ (81) | $ 3,560 | $ 1,592 | $ 3 |
Beginning balance (in shares) at Apr. 01, 2017 | 209,332,000 | |||||||
Beginning balance, treasury (in shares) at Apr. 01, 2017 | (53,499,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 592 | 592 | 592 | 0 | ||||
Other comprehensive income (loss) | 132 | 132 | 132 | 0 | ||||
Comprehensive (loss) income | 724 | 724 | 0 | |||||
Non-controlling interest of Jimmy Choo joint ventures | 3 | 3 | ||||||
Partial repurchase of non-controlling interest | (1) | (1) | ||||||
Vesting of restricted awards, net of forfeitures (in shares) | 542,000 | |||||||
Exercise of employee share options | 14 | 14 | 14 | |||||
Exercise of employee share options (in shares) | 1,117,000 | |||||||
Equity compensation expense | 50 | 50 | 50 | |||||
Purchase of treasury shares | (361) | $ (361) | (361) | |||||
Purchase of treasury shares (in shares) | (7,794,000) | |||||||
Redemption of capital/dividends | (1) | (1) | ||||||
Other | (1) | (1) | (1) | |||||
Ending balance, treasury (in shares) at Mar. 31, 2018 | (61,293,000) | |||||||
Ending balance (in shares) at Mar. 31, 2018 | 210,991,000 | |||||||
Ending balance at Mar. 31, 2018 | 2,022 | $ 0 | 831 | $ (3,016) | 51 | 4,152 | 2,018 | 4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standard | 12 | 12 | 12 | |||||
Beginning balance after adoption of accounting standards | 2,034 | 831 | (3,016) | 51 | 4,164 | 2,030 | 4 | |
Net income (loss) | 542 | 543 | 543 | (1) | ||||
Other comprehensive income (loss) | (117) | (117) | (117) | 0 | ||||
Comprehensive (loss) income | 425 | 426 | (1) | |||||
Issuance of ordinary shares | 91 | 91 | 91 | |||||
Issuance of ordinary shares (in shares) | 2,395,000 | |||||||
Vesting of restricted awards, net of forfeitures (in shares) | 818,000 | |||||||
Exercise of employee share options | 29 | 29 | 29 | |||||
Exercise of employee share options (in shares) | 1,847,000 | |||||||
Equity compensation expense | 60 | 60 | 60 | |||||
Purchase of treasury shares | $ (207) | $ (207) | (207) | |||||
Purchase of treasury shares (in shares) | (3,826,000) | |||||||
Ending balance, treasury (in shares) at Mar. 30, 2019 | (65,118,633) | (65,119,000) | ||||||
Ending balance (in shares) at Mar. 30, 2019 | 216,050,939 | 216,051,000 | ||||||
Ending balance at Mar. 30, 2019 | $ 2,432 | $ 0 | 1,011 | $ (3,223) | (66) | 4,707 | 2,429 | 3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standard | (152) | (152) | (152) | |||||
Beginning balance after adoption of accounting standards | 2,280 | 1,011 | (3,223) | (66) | 4,555 | 2,277 | 3 | |
Net income (loss) | (225) | (223) | (2) | |||||
Other comprehensive income (loss) | 141 | 141 | 141 | 0 | ||||
Comprehensive (loss) income | (84) | (82) | (2) | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 1,262,000 | |||||||
Exercise of employee share options | 0 | |||||||
Exercise of employee share options (in shares) | 7,000 | |||||||
Equity compensation expense | 70 | 70 | 70 | |||||
Purchase of treasury shares | (102) | $ (102) | (102) | |||||
Purchase of treasury shares (in shares) | (2,775,000) | |||||||
Adjustment of redeemable non-controlling interests to redemption value | $ 4 | 4 | 4 | |||||
Ending balance, treasury (in shares) at Mar. 28, 2020 | (67,894,398) | (67,894,000) | ||||||
Ending balance (in shares) at Mar. 28, 2020 | 217,320,010 | 217,320,000 | ||||||
Ending balance at Mar. 28, 2020 | $ 2,168 | $ 0 | $ 1,085 | $ (3,325) | $ 75 | $ 4,332 | $ 2,167 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Cash flows from operating activities | |||
Net (loss) income | $ (225) | $ 542 | $ 592 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 249 | 225 | 208 |
Equity compensation expense | 70 | 60 | 50 |
Impairment of assets | 708 | 21 | 33 |
Bad debt expense | 29 | 4 | 8 |
Losses on store lease exits | 0 | 18 | 29 |
Deferred income taxes | (73) | (71) | 9 |
Changes to lease related balances, net | (55) | ||
Amortization of deferred financing costs | 8 | 4 | 4 |
Tax deficit (benefit) on exercise of share options | 2 | (24) | (7) |
Foreign currency losses (gains) | 11 | 80 | (13) |
Other non-cash charges | 3 | 0 | 0 |
Change in assets and liabilities: | |||
Receivables, net | 42 | (23) | 11 |
Inventories, net | 115 | (125) | 46 |
Prepaid expenses and other current assets | 20 | (31) | 49 |
Accounts payable | 63 | (48) | (21) |
Accrued expenses and other current liabilities | (95) | 20 | 56 |
Other long-term assets and liabilities | (13) | 42 | 8 |
Net cash provided by operating activities | 859 | 694 | 1,062 |
Cash flows from investing activities | |||
Capital expenditures | (223) | (181) | (120) |
Purchase of intangible assets | 0 | (3) | (3) |
Cash paid for business acquisitions, net of cash acquired | (13) | (1,875) | (1,415) |
Realized (loss) gain on hedge related to acquisitions | 0 | (77) | 5 |
Settlement of a net investment hedge | 298 | 11 | 0 |
Net cash provided by (used in) investing activities | 62 | (2,125) | (1,533) |
Cash flows from financing activities | |||
Debt borrowings | 2,282 | 4,204 | 2,520 |
Debt repayments | (2,676) | (2,560) | (1,784) |
Debt issuance costs | (1) | (15) | 0 |
Purchase of treasury shares | (102) | (207) | (361) |
Exercise of employee share options | 0 | 29 | 14 |
Net cash (used in) provided by financing activities | (497) | 1,451 | 389 |
Effect of exchange rate changes on cash and cash equivalents | (4) | (11) | 15 |
Net increase (decrease) in cash and cash equivalents | 420 | 9 | (67) |
Beginning of period | 172 | 163 | 230 |
End of period | 592 | 172 | 163 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 80 | 45 | 11 |
Cash paid for income taxes | 98 | 172 | 104 |
Supplemental disclosure of non-cash investing and financing activities | |||
Accrued capital expenditures | $ 30 | $ 25 | $ 26 |
Business and Basis of Presentation |
12 Months Ended |
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Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation The Company was incorporated in the British Virgin Islands (“BVI”) on December 13, 2002 as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited (“Capri,” and together with its subsidiaries, the “Company”) on December 31, 2018. The Company is a holding company that owns brands that are leading designers, marketers, distributors and retailers of branded women’s and men’s accessories, apparel and footwear bearing the Versace, Jimmy Choo and Michael Kors tradenames and related trademarks and logos. The Company operates in three reportable segments: Versace, Jimmy Choo and Michael Kors. See Note 20 for additional information. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s audited consolidated financial statements include the following operations for the periods from the respective acquisition/consolidation date through March 28, 2020: •Gianni Versace S.r.l. (“Versace”), acquired on December 31, 2018; •Jimmy Choo Group Limited (“Jimmy Choo”), acquired on November 1, 2017; See Note 5 for additional information related to the above acquisitions. The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the fiscal years ending on March 28, 2020, March 30, 2019, and March 31, 2018 (“Fiscal 2020”, “Fiscal 2019” and “Fiscal 2018”, respectively) contain 52 weeks. Timing of Filing of Annual Report on Form 10-K As a result of the impacts of the COVID-19 pandemic on the business and employees of the Company, the Company has relied on the Securities and Exchange Commission’s Order under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies dated March 25, 2020, to delay the filing of its Annual Report on Form 10-K for Fiscal 2020 by up to 45 days from May 27, 2020, which is the original filing due date. The Company’s operations and business have experienced significant disruption due to the unprecedented conditions surrounding the COVID-19 global pandemic. The Company has been following the recommendations of local government and health authorities to minimize exposure risk for its employees. As a result, most of the Company’s corporate offices globally have been temporarily closed due to the pandemic and corporate employees involved in the Company’s annual financial statement closing process and finalizing the audit of the Company’s financial statements for Fiscal 2020 are working remotely. In addition, the Company required additional time to prepare analyses related to the impact of COVID-19 on its business and complete related required disclosures. This has resulted in delays in finalizing the Annual Report on Form 10-K for Fiscal 2020 and accompanying audited financial statements.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with U.S. GAAP 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 net realizable value, the valuation of share-based compensation, the valuation of deferred taxes and the valuation of goodwill, intangible assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. Seasonality The Company experiences certain effects of seasonality with respect to its business. The Company generally experiences greater sales during its third fiscal quarter, primarily driven by holiday season sales, and the lowest sales during its first fiscal quarter. Revenue Recognition The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company recognizes retail store revenues when control of the product is transferred at the point of sale at Company owned stores, including concessions, net of estimated returns. Revenue from sales through the Company’s e-commerce sites is recognized at the time of delivery to the customer, reduced by an estimate of returns. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, after merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for retail revenue, gross sales are reduced by actual customer returns as well as by a provision for estimated future customer returns, which is based on management’s review of historical and future customer return expectations. Sales taxes collected from retail customers are presented on a net basis and, as such, are excluded from revenue. To arrive at net sales for wholesale revenue, gross sales are reduced by provisions for estimated future returns, based on current expectations, as well as trade discounts, markdowns, allowances, operational chargebacks, and certain cooperative selling expenses. These estimates are based on such factors as historical trends, actual and forecasted performance and current market conditions, which are reviewed by management on a quarterly basis. The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 28, 2020, March 30, 2019, and March 31, 2018 (in millions):
Royalty revenue generated from product licenses, which includes contributions for advertising, is based on reported sales of licensed products bearing the Company’s trademarks at rates specified in the license agreements. These agreements are also subject to contractual minimum levels. Royalty revenue generated by geographic licensing agreements is recognized as it is earned under the licensing agreements based on reported sales of licensees applicable to specified periods, as outlined in the agreements. These agreements allow for the use of the Company’s tradenames to sell its branded products in specific geographic regions. The adverse impact from the COVID-19 pandemic which includes, but is not limited to, temporary retail store closures, wholesale customer store closures, a reduction in retail store traffic, a decline in international tourism and a decrease in consumer consumption is reflected in the Company's Fiscal 2020 total revenue. Loyalty Program The Company has a Michael Kors customer loyalty program in the United States, which allows customers to earn points on qualifying purchases toward monetary and non-monetary rewards that may be redeemed for purchases at the Company’s retail stores and e-commerce site. The Company allocates a portion of the initial sales transaction based on the estimated relative fair value of the benefits using statistical formulas based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. See Note 3 for additional information. Advertising and Marketing Costs Advertising and marketing costs are expensed over the period of benefit and are recorded in selling, general and administrative expenses. Advertising and marketing expense was $201 million, $158 million and $167 million in Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively. Cooperative advertising expense, which represents the Company’s participation in advertising expenses of its wholesale customers, is reflected as a reduction of net sales. Expenses related to cooperative advertising for Fiscal 2020, Fiscal 2019 and Fiscal 2018, were $7 million, $8 million and $6 million, respectively. Shipping and Handling Freight-in expenses are recorded as part of cost of goods sold, along with product costs and other costs to acquire inventory. The costs of preparing products for sale, including warehousing expenses, are included in selling, general and administrative expenses. Selling, general and administrative expenses also include the costs of shipping products to the Company’s e-commerce customers. Shipping and handling costs included within selling, general and administrative expenses in the Company’s consolidated statements of operations and comprehensive income were $157 million, $132 million and $129 million for Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively. Shipping and handling costs charged to customers are included in total revenue. Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Included in the Company’s cash and cash equivalents as of March 28, 2020 and March 30, 2019 are credit card receivables of $4 million and $24 million, respectively, which generally settle within two to three business days. The decrease in credit card receivables year over year is mainly due to the impact on sales from the COVID-19 pandemic. Inventories Inventories mainly consist of finished goods with the exception of raw materials and work in process inventory. The combined total of raw materials and work in process inventory recorded on the Company's consolidated balance sheets as of March 28, 2020 and March 30, 2019 were $27 million and $25 million, respectively. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted-average cost method. Costs include amounts paid to independent manufacturers, plus duties and freight to bring the goods to the Company’s warehouses, as well as shipments to stores. The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. In addition, reserves for inventory losses are estimated based on historical experience and physical inventory counts. The Company’s inventory reserves are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from expectations. Our historical estimates of these adjustments have not differed materially from actual results. The net realizable value of the Company's inventory as of March 28, 2020 includes the adverse impacts connected to the COVID-19 pandemic. This includes the impact from temporary retail store closures, wholesale customer store closures, reductions in retail store traffic, a decline in international tourism and a decrease in consumer consumption. Store Pre-opening Costs Costs associated with the opening of new retail stores and start up activities, are expensed as incurred. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization (carrying value). Depreciation is recorded on a straight-line basis over the expected remaining useful lives of the related assets. Equipment, furniture and fixtures, are depreciated over to seven years, computer hardware and software are depreciated over to five years. The Company’s share of the cost of constructing in-store shop displays within its wholesale customers’ floor-space (“shop-in-shops”), which is paid directly to third-party suppliers, is capitalized as property and equipment and is generally amortized over a useful life of to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated remaining useful lives of the related assets or the remaining lease term, including highly probable renewal periods. The Company includes all depreciation and amortization expense as a component of total operating expenses, as the underlying long-lived assets are not directly or indirectly related to bringing the Company’s products to their existing location and condition. Maintenance and repairs are charged to expense in the year incurred. The Company capitalizes, in property and equipment, direct costs incurred during the application development stage and the implementation stage for developing, purchasing or otherwise acquiring software for its internal use. These costs are amortized over the estimated useful lives of the software, generally five years. All costs incurred during the preliminary project stage, including project scoping and identification and testing of alternatives, are expensed as incurred. Definite-Lived Intangible Assets The Company’s definite-lived intangible assets consist of trademarks and customer relationships which are stated at cost less accumulated amortization. The Company’s customer relationships are amortized over to eighteen years. Reacquired rights recorded in connection with the acquisition of MKHKL are amortized through March 31, 2041, the original expiration date of the Michael Kors license agreement in the Greater China region. The trademark for the Michael Kors brand is amortized over twenty years. Impairment of Long-lived Assets The Company evaluates its long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company’s impairment testing is based on its best estimate of its future operating cash flows. To the extent the sum of the estimated undiscounted future cash flows associated with the asset is less than the carrying value, the Company typically recognizes an impairment loss measured by the amount in which the carrying value exceeds the fair value of the asset, taking into consideration other market assumptions. The fair values determined by management require significant judgment and include certain assumptions regarding future sales and expense growth rates, discount rates and estimates of current real estate market values. As such, these estimates may differ from actual results and are affected by future market and economic conditions. Goodwill and Other Indefinite-lived Intangible Assets The Company records indefinite-lived intangible assets based on fair value on the date of acquisition. Goodwill is recorded for the difference between the fair value of the purchase consideration over the fair value of the net identifiable tangible and intangible assets acquired. The brand intangible assets recorded in connection with the acquisitions of Versace and Jimmy Choo were determined to be indefinite-lived intangible assets, which are not subject to amortization. The Company performs an impairment assessment of goodwill, as well as the Versace and Jimmy Choo brand intangible assets on an annual basis, or whenever impairment indicators exist. In the absence of any impairment indicators, goodwill, the Versace brand and the Jimmy Choo brand are assessed for impairment during the fourth quarter of each fiscal year. Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business. The Company may assess its goodwill and its brand indefinite-lived intangible assets for impairment initially using a qualitative approach to determine whether it is more likely than not that the fair value of these assets is greater than their carrying value. When performing a qualitative test, the Company assesses various factors including industry and market conditions, macroeconomic conditions and performance of the Company’s businesses. If the results of the qualitative assessment indicate that it is more likely than not that the Company’s goodwill and other indefinite-lived intangible assets are impaired, a quantitative impairment analysis would be performed to determine if impairment is required. The Company may also elect to perform a quantitative analysis of goodwill and its indefinite-lived intangible assets initially rather than using a qualitative approach. The impairment testing for goodwill is performed at the reporting unit level. The valuation methods used in the quantitative fair value assessment included a discounted cash flow analysis which requires the Company’s management to make certain assumptions and estimates regarding industry trends and future profitability of the Company’s reporting units. If the fair value of a reporting unit exceeds the related carrying value, the reporting unit’s goodwill is considered not to be impaired and no further testing is performed. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. This valuation is affected by certain estimates including the Company’s future revenue growth rates, margins and discount rates. Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired. When performing a quantitative impairment assessment of the Company’s brand indefinite-lived intangible assets, the fair value of the Versace and the Jimmy Choo brands is estimated using a discounted cash flow analysis based on the "relief from royalty" method, assuming that a third party would be willing to pay a royalty in lieu of ownership for this intangible asset. This approach is dependent on many factors, including estimates of future growth, royalty rates, and discount rates. Actual future results may differ from these estimates. Impairment loss is recognized when the estimated fair value of the indefinite-lived brand intangible assets is less than its carrying amount. The Company recorded impairment charges of $171 million related to the goodwill associated with the Jimmy Choo Retail and Jimmy Choo Licensing reporting units and $180 million related to the Jimmy Choo brand indefinite-lived intangible asset during Fiscal 2020. The impairment charges were recorded within impairment of assets on the Company's consolidated statement of operations and comprehensive income for the fiscal year ended March 28, 2020. See Note 9 and Note 14 for information relating to the Company’s annual impairment analysis performed during the fourth quarter of Fiscal 2020. Insurance The Company uses a combination of insurance and self-insurance for losses related to a number of risks, including workers’ compensation and employee-related health care benefits. The Company also maintains stop-loss coverage with third-party insurers to limit its exposure arising from claims. Self-insurance claims filed and claims incurred but not reported are accrued based upon management’s estimates of the discounted cost for self-insured claims incurred using actuarial assumptions, historical loss experience, actual payroll and other data. Although the Company believes that it can reasonably estimate losses related to these claims, actual results could differ from these estimates. The Company also maintains other types of customary business insurance policies, including business interruption insurance. Insurance recoveries represent gain contingencies and are recorded upon actual settlement with the insurance carrier. Share-based Compensation The Company grants share-based awards to certain employees and directors of the Company. The grant date fair value of share options is calculated using the Black-Scholes option pricing model. The Company uses its own historical experience in determining the expected holding period and volatility of its time-based share option awards. The risk-free interest rate is derived from the zero-coupon United States (“U.S.”) Treasury Strips yield curve based on the grant’s estimated holding period. Determining the grant date fair value of share-based awards requires considerable judgment, including estimating expected volatility, expected term and risk-free rate. If factors change and the Company employs different assumptions, the fair value of future awards and the resulting share-based compensation expense may differ significantly from what the Company has estimated in the past. The closing market price of the Company’s shares on the date of grant is used to determine the grant date fair value of restricted shares, time-based restricted shares units (“RSU”s) and performance-based RSUs. These fair values are recognized as expense over the requisite service period, net of estimated forfeitures, based on expected attainment of pre-established performance goals for performance grants, or the passage of time for those grants which have only time-based vesting requirements. Foreign Currency Translation and Transactions The financial statements of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. The Company’s functional currency is the United States Dollar (“USD”) for Capri and its United States based subsidiaries. Assets and liabilities are translated using period-end exchange rates, while revenues and expenses are translated using average exchange rates over the reporting period. The resulting translation adjustments are recorded separately in shareholders’ equity as a component of accumulated other comprehensive (loss) income. Foreign currency income and losses resulting from the re-measuring of transactions denominated in a currency other than the functional currency of a particular entity are included in foreign currency loss (gain) on the Company’s consolidated statements of operations and comprehensive income. Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain 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. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. In connection with the September 24, 2018 definitive agreement to acquire all of the outstanding shares of Versace, the Company entered into forward foreign currency exchange contracts with notional amounts totaling €1.680 billion (approximately $2.001 billion) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which were settled on December 21, 2018. Likewise, in connection with the July 25, 2017 cash offer to acquire Jimmy Choo, the Company entered into a forward foreign currency exchange contract with a notional amount of £1.115 billion (approximately $1.469 billion) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition, which was settled on October 30, 2017. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value are recorded to foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments in the same category as the cash flows from the items being hedged. Accordingly, the Company classified $77 million of realized losses and $5 million of realized gains, respectively, relating to these derivative instruments within cash flows from investing activities during Fiscal 2019 and Fiscal 2018. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive (loss) income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive (loss) income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only 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. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between its U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12 and has designated these contracts as net investment hedges. The net gain or (loss) on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive (loss) income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest expense in the Company’s statement of operations and comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated. During the fourth quarter of Fiscal 2020, the Company terminated all of its net investment hedges related to its Euro-denominated subsidiaries. The early termination of these hedges resulted in the Company receiving $296 million in cash during the fourth quarter of Fiscal 2020. Income Taxes Deferred income tax assets and liabilities have been provided for temporary differences between the tax bases and financial reporting bases of the Company’s assets and liabilities using the tax rates and laws in effect for the periods in which the differences are expected to reverse. The Company periodically assesses the realizability of deferred tax assets and the adequacy of deferred tax liabilities, based on the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. Realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction. The Company periodically reviews the recoverability of its deferred tax assets and provides valuation allowances, as deemed necessary, to reduce deferred tax assets to amounts that more-likely-than-not will be realized. The Company’s management considers many factors when assessing the likelihood of future realization of deferred tax assets, including recent earnings results within various taxing jurisdictions, expectations of future taxable income, the carryforward periods remaining and other factors. Changes in the required valuation allowance are recorded in income in the period such determination is made. Deferred tax assets could be reduced in the future if the Company’s estimates of taxable income during the carryforward period are significantly reduced or alternative tax strategies are no longer viable. The Company recognizes the impact of an uncertain income tax position taken on its income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will be recognized if it has less than a 50% likelihood of being sustained. The tax positions are analyzed periodically (at least quarterly) and adjustments are made as events occur that warrant adjustments for those positions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense. Leases On March 31, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet for all leases, except certain short-term leases. The Company adopted the new standard recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods. The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through May 2024. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores under its Michael Kors Retail Fleet Optimization Plan, as defined in Note 11. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease. The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options, generally for the same period as the initial term of the lease. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term. The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on location sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants. Debt Issuance Costs and Unamortized Discounts The Company defers debt issuance costs directly associated with acquiring third party financing. These debt issuance costs and any discounts on issued debt are amortized on a straight-line basis, which approximates the effective interest method, as interest expense over the term of the related indebtedness. Deferred financing fees associated with the Company’s revolving credit facilities are recorded within prepaid expenses and other current assets. Deferred financing fees and unamortized discounts associated with the Company’s other borrowings are recorded as an offset to long-term debt in the Company’s consolidated balance sheets. See Note 12 for additional information. Net (Loss) Income per Share The Company’s basic net (loss) income per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Diluted net loss per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units ("RSUs"), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included in diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method. The components of the calculation of basic net (loss) income per ordinary share and diluted net loss per ordinary share are as follows (in millions, except share and per share data):
(1)Basic and diluted net (loss) income per share are calculated using unrounded numbers. Share equivalents for 3,752,560 shares, 1,409,415 shares and 1,662,889 shares, for Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively, have been excluded from the above calculation due to their anti-dilutive effect. Diluted net loss per share attributable to Capri for Fiscal 2020 excluded all potentially dilutive securities because there was a net loss attributable to Capri for the period and, as such, the inclusion of these securities would have been anti-dilutive. Noncontrolling Interest and Redeemable Noncontrolling Interest The Company has an ownership interest in the Michael Kors Latin American joint venture, MK (Panama) Holdings, S.A. and subsidiaries of 75%, an ownership interest in the Jimmy Choo EMEA Joint Ventures, JC Industry S.r.L of 33% and JC Gulf Trading LLC of 49%, a 50% ownership interest in J. Choo Russia J.V. Limited, and a 70% interest in Versace Australia PTY Limited (“Versace Australia”). Recently Adopted Accounting Pronouncements Lease Accounting On March 31, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet for all leases, except certain short-term leases. In evaluating the impact of ASU 2016-02, the Company considered guidance provided by several additional ASUs issued by the FASB, including ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842” in January 2018, ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” both issued in July 2018, and ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors” issued in December 2018. In connection with its implementation of ASU 2016-02, the Company adopted the package of three practical expedients, allowing it to carry forward its previous lease classification and embedded lease evaluations and not to reassess initial direct costs as of the date of adoption. The Company also adopted the practical expedient allowing it to combine lease and non-lease components for its real estate leases. Lastly, the Company adopted the practical expedient provided by ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” allowing it to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods. The Company’s existing lease obligations, which relate to stores, corporate locations, warehouses, and equipment, are subject to the new standard and resulted in recording of lease liabilities and right-of-use assets for operating leases on the Company’s consolidated balance sheet. The below table details the balance sheet adjustments recorded on March 31, 2019 in connection with the Company’s adoption of ASU 2016-02 (in millions):
(1)Represents the reclassification of rent paid in advance to current operating lease liabilities. (2)Represents the recognition of operating lease right-of-use assets, reflecting the reclassifications of deferred rent, sublease liabilities, tenant allowances, and lease rights. This balance also reflects the initial impairments of the operating lease right-of-use assets recorded through retained earnings, as described below. (3)Represents the reclassifications of lease rights for leases recorded in conjunction with the Company’s acquisitions to operating lease right-of-use assets. (4)Represents the initial impairment recognized through retained earnings for certain underperforming retail store locations for which property and equipment were previously impaired, net of associated deferred taxes. (5)Represents the recognition of current and non-current lease liabilities for fixed payments associated with the Company’s operating leases. (6)Represents the reclassification of $54 million in sublease liabilities, primarily related to Michael Kors retail stores closed under the Michael Kors Retail Fleet Optimization Plan as defined in Note 10, as well as the reclassification of $18 million of deferred rent and tenant allowances to operating lease right-of-use assets. (7)Represents the reclassification of noncurrent deferred rent and tenant improvement allowances to operating lease right-of-use assets. See Note 4 for additional disclosures related to the Company’s lease accounting policy. Recently Issued Accounting Pronouncements The Company has considered all new accounting pronouncements and have concluded that there are no new pronouncements that are expected to have a material impact on our results of operations, financial condition or cash flows based on current information. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which amends the guidance on measuring credit losses for certain financial assets measured at amortized cost, including trade receivables. The FASB has subsequently issued several updates to the standard, providing additional guidance on certain topics covered by the standard. This update requires entities to recognize an allowance for credit losses using a forward-looking expected loss impairment model, taking into consideration historical experience, current conditions, and supportable forecasts that impact collectibility. ASU No. 2016-13 is effective for the Company beginning in its Fiscal 2021. The adoption of this update is not expected to have a material impact on the Company's consolidated financial statements.
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Revenue Recognition |
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Revenue Recognition | Revenue Recognition The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s brands. The Company has chosen to apply the practical expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations that have an expected duration of 12 months or less. Retail The Company generates sales through directly operated stores and e-commerce throughout the Americas (U.S., Canada and Latin America), EMEA (Europe, Middle East and Africa) and certain parts of Asia. Retail revenue is recognized when control of the product is transferred at the point of sale at Company owned stores, including concessions. For e-commerce transactions, control is transferred and revenue is recognized when products are delivered to the customer, net of estimated returns. To arrive at net sales for retail, gross sales are reduced by actual customer returns, as well as by a provision for estimated future customer returns. Sales tax collected from retail customers are presented on a net basis and, as such, are excluded from revenue. Shipping and handling costs that are billed to customers are included in net sales, with the related costs recorded in cost of goods sold. Shipping and handling costs that are not billed to customers are accounted for as fulfillment costs. Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The Company anticipates that substantially all of its outstanding gift cards will be redeemed within the next 12 months. The contract liability related to gift cards, net of estimated “breakage”, was $11 million and $13 million as of March 28, 2020 and March 30, 2019, respectively, and is included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program. The Company offers a loyalty program, which allows its Michael Kors U.S. customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” of $2 million and $3 million as of March 28, 2020 and March 30, 2019, respectively, is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheet and is expected to be recognized within the next 12 months. Wholesale The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, when merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, as well as trade discounts, markdowns, allowances, operational chargebacks and certain cooperative selling expenses. These estimates are developed based on historical trends, actual and forecasted performance and market conditions, and are reviewed by management on a quarterly basis. Unfulfilled, non-cancelable purchase orders for products from wholesale customers (including the Company’s geographic licensees) are expected to be fulfilled within the next 12 months. Licensing The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under product licensing arrangements, the Company allows third parties to manufacture and sell luxury goods, including watches and jewelry, fragrances, sunglasses and eyewear, using the Company’s trademarks. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa, certain parts of Asia and Australia. The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Advertising contributions are received to support the Company’s branded advertising and marketing campaigns and are viewed as part of a single performance obligation with the right to access the Company’s trademarks. Royalty revenue generated from licenses, which includes contributions for advertising, may be subject to contractual minimum levels, as defined in the contract. Such minimums are generally fixed annually, based on the previous year’s sales. Licensing revenue is based on reported current period sales of licensed products at rates that are specified in the license agreements for contracts that are expected to exceed the related guaranteed minimums. If the Company expects the minimum guaranteed amounts to exceed amounts calculated based on actual sales, the guaranteed minimums are recognized ratably over the contractual year to which they relate. Generally the Company’s guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months, however, some of our guaranteed minimums for Versace are multi-year based. As of March 28, 2020, contractually guaranteed minimum fees from our license agreements expected to be recognized as revenue during future periods were as follows (in millions):
Sales Returns For the sale of goods with a right of return, the Company recognizes revenue for the consideration to which it expects to be entitled and a refund liability for the amount it expects to refund to its customers within accrued expenses and other current liabilities. The refund liability is estimated based on management’s review of historical and current customer returns for its retail and wholesale customers, estimated future returns, adjusted for non-resalable products. The Company also considers its product strategies, as well as the financial condition of its customers, store closings by wholesale customers, changes in the retail environment and other macroeconomic factors. The Company recognizes an asset with a corresponding adjustment to cost of sales for the right to recover the products from its retail and wholesale customers. The refund liability recorded as of March 28, 2020 and March 30, 2019 was $37 million and $35 million, respectively, and the related asset for the right to recover returned product as of March 28, 2020 and March 30, 2019 was $14 million and $12 million, respectively. Contract Balances The Company’s contract liabilities are recorded within accrued expenses and other current liabilities and other long-term liabilities in its consolidated balance sheets depending on the short- or long-term nature of the payments to be recognized. The Company’s contract liabilities primarily consist of gift card liabilities, loyalty program liabilities and advanced payments from product licensees. Total contract liabilities were $22 million and $31 million as of March 28, 2020 and March 30, 2019, respectively. Contract liabilities decreased $5 million as a result of the adoption of ASC 606 on April 1, 2018, due to recognition of gift card breakage revenue (see Note 2). During Fiscal 2020 and Fiscal 2019, the Company recognized $20 million and $16 million in revenue, respectively, relating to contract liabilities that existed at March 28, 2020 and March 30, 2019, respectively. There were no contract assets recorded as of March 28, 2020 and March 30, 2019. There were no changes in historical variable consideration estimates that were materially different from actual results. Disaggregation of Revenue The following table presents the Company’s segment revenues disaggregated by geographic location (in millions):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The following table presents the Company’s supplemental balance sheet information related to leases (in millions):
The components of net lease costs for the fiscal year ended March 28, 2020 were as follows (in millions):
(1)The Company elected to account for rent concessions negotiated in connection with COVID-19 as if it were contemplated as part of the existing contract and these concessions are recorded as variable lease expense. There is an immaterial impact from these concession for the fiscal year ended March 28, 2020. The following table presents the Company’s supplemental cash flow information related to leases (in millions):
The following tables summarizes the weighted average remaining lease term and weighted average discount rate related to the Company’s operating lease right-of-use assets and lease liabilities recorded on the balance sheet as of March 28, 2020:
At March 28, 2020, the future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in millions):
At March 28, 2020, the future minimum sublease income under the terms of these noncancelable operating lease agreements are as follows (in millions):
Additionally, the Company had approximately $13 million of future payment obligations related to executed lease agreements for which the related lease has not yet commenced as of March 28, 2020. See Note 2 for additional information on the Company's accounting policies related to leases.
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Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Fiscal 2020 Acquisition of Alberto Gozzi S.r.L. On December 16, 2019, the Company entered into a definitive agreement to acquire Italian atelier and shoe manufacturer Alberto Gozzi S.r.L. The transaction was completed in the Company's fourth quarter of Fiscal 2020 and the assets and liabilities acquired approximated fair value. The acquired identifiable assets and liabilities net to a nominal amount, with $11 million recognized in goodwill allocated to the Jimmy Choo reportable segment. Fiscal 2019 Acquisition of Versace On December 31, 2018, the Company completed the acquisition of Versace for a total enterprise value of approximately €1.753 billion (or approximately $2.005 billion), giving effect to an investment made by the Versace family at acquisition of 2.4 million shares. The acquisition was funded through a combination of borrowings under the Company’s 2018 Term Loan Facility, drawings under the Company’s Revolving Credit Facility and cash on hand (see Note 12 for additional information). Versace’s results of operations have been included in our consolidated financial statements beginning on December 31, 2018. Versace contributed total revenue of $137 million and net loss of $12 million, after amortization of non-cash purchase accounting adjustments and transition and transaction costs, from the date of acquisition on December 31, 2018 through February 28, 2019 (reflecting a one-month reporting lag). The Company recorded measurement period adjustments during Fiscal 2020. The measurement period adjustments are primarily related to conclusions reached on the ability to utilize certain deferred tax assets based on new facts and circumstances identified which existed at the acquisition date and if known, would have affected the measurement of the amounts recognized as of that date. The net measurement period adjustments increased goodwill by $26 million. The following table summarizes the unaudited pro-forma consolidated results of operations for the fiscal years ended March 30, 2019 and March 31, 2018 as if the acquisition had occurred on April 2, 2017, the beginning of Fiscal 2018 (in millions):
The unaudited pro-forma consolidated results above are based on the historical financial statements of the Company and Versace and are not necessarily indicative of the results of operations that would have been achieved if the acquisition was completed at the beginning of Fiscal 2018 and are not indicative of the future operating results of the combined company. The financial information for Versace prior to the acquisition has been included in the pro-forma results of operations on a calendar-year basis and includes certain adjustments to Versace’s historical consolidated financial statements to align with U.S. GAAP and the Company’s accounting policies. The pro-forma consolidated results of operations also include the effects of purchase accounting adjustments, including amortization charges related to the definite-lived intangible assets acquired, fair value adjustments relating to leases and property and equipment, and the related tax effects assuming that the business combination occurred on April 2, 2017. Purchase accounting amortization of the inventory step-up adjustment has been excluded from the above pro-forma amounts due to the short-term nature of this adjustment. The pro-forma consolidated financial statements also reflect the impact of debt repayment and borrowings made to finance the acquisition (see Note 12) and exclude historical interest expenses related to Versace’s €90 million pre-existing debt. Transaction costs of $41 million for Fiscal 2019, which have been recorded within restructuring and other charges in the Company’s consolidated statements of operations and comprehensive income, have been excluded from the above pro-forma consolidated results of operations due to their non-recurring nature. The shares used to calculate the pro-forma net income per ordinary share attributable to Capri reflect the weighted average impact of a 2.4 million ordinary share investment made by the Versace family at acquisition date. Fiscal 2018 Acquisition of Jimmy Choo Group Limited On November 1, 2017, the Company completed the acquisition of Jimmy Choo, whereby the Company's wholly-owned subsidiary acquired all of Jimmy Choo’s issued and to be issued shares at a purchase price of 230 pence per share in cash, for a total transaction value of $1.447 billion, including the repayment of existing debt obligations, which was funded through a combination of borrowings under the Company’s new $1.0 billion term loan facility, the issuance of the Senior Notes and cash on hand (please refer to Note 12 for additional information). Jimmy Choo’s results of operations have been included in our consolidated financial statements beginning on November 1, 2017. Jimmy Choo contributed revenue of $223 million and net loss of $15 million (after amortization of non-cash purchase accounting adjustments and transition and transaction costs) for the period from the date of acquisition through March 31, 2018. The following table summarizes the unaudited pro-forma consolidated results of operations for the fiscal years ended March 31, 2018 and April 1, 2017 as if the acquisition had occurred on April 3, 2016, the beginning of Fiscal 2017 (in millions):
The unaudited pro-forma consolidated results above are based on the historical financial statements of the Company and Jimmy Choo and are not necessarily indicative of the results of operations that would have been achieved if the acquisition was completed at the beginning of Fiscal 2017 and are not indicative of the future operating results of the combined company. The financial information for Jimmy Choo prior to the acquisition has been included in the pro-forma results of operations on a calendar-year basis and includes certain adjustments to Jimmy Choo’s historical consolidated financial statements to align with U.S. GAAP and the Company’s accounting policies. The pro-forma consolidated results of operations also include the effects of purchase accounting adjustments, including amortization charges related to the definite-lived intangible assets acquired, fair value adjustments relating to leases and property and equipment, and the related tax effects assuming that the business combination occurred on April 3, 2016. Purchase accounting amortization of the inventory step-up adjustment has been excluded from the above pro-forma amounts due to the short-term nature of this adjustment. The pro-forma consolidated financial statement also reflect the impact of debt repayment and borrowings made to finance the acquisition (see Note 12) and exclude historical interest expense for Jimmy Choo. Transaction costs of $41 million for Fiscal 2018, which have been recorded within restructuring and other charges in the Company’s consolidated statements of operations and comprehensive income, have been excluded from the above pro-forma consolidated results of operations due to their non-recurring nature.
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Receivables, net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, net | Receivables, net Receivables, net consist of (in millions):
(1)As of March 28, 2020 and March 30, 2019, $80 million and $317 million, respectively, of trade receivables were insured. Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ 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 revenues. The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition 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. Allowance for doubtful accounts was $39 million as of March 28, 2020, including the impact related to COVID-19. Allowance for doubtful accounts was $18 million as of March 30, 2019, which included an $11 million allowance within the opening balance sheet of the newly acquired Versace business. The Company had bad debt expense of $29 million, $4 million and $8 million, respectively, for Fiscal 2020, Fiscal 2019 and Fiscal 2018.
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Concentration of Credit Risk, Major Customers and Suppliers |
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Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk, Major Customers and Suppliers | Concentration of Credit Risk, Major Customers and Suppliers Financial instruments that subject the Company to concentration of credit risk are cash and cash equivalents and receivables. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. The Company mitigates its risk by depositing cash and cash equivalents in major financial institutions. The Company also mitigates its credit risk by obtaining insurance coverage for a portion of its receivables (see Note 6). No individual customer accounted for 10% or more of the Company’s total revenues during Fiscal 2020, Fiscal 2019 or Fiscal 2018. The Company contracts for the purchase of finished goods principally with independent third-party contractors, whereby the contractor is generally responsible for all manufacturing processes. Although the Company does not have any long-term agreements with any of its manufacturing contractors, the Company believes it has mutually satisfactory relationships with them. The Company allocates product manufacturing among agents and contractors based on their capabilities, the availability of production capacity, quality, pricing and delivery. The inability of certain contractors to provide needed services on a timely basis could adversely affect the Company’s operations and financial condition. For Fiscal 2020, Fiscal 2019 and Fiscal 2018, one contractor accounted for approximately 20%, 21% and 26%, respectively, of the Company’s total finished goods purchases, based on dollar volume. The Company also has relationships with various agents who source finished goods with numerous contractors on behalf of its Michael Kors brand. For Fiscal 2020, Fiscal 2019 and Fiscal 2018, one agent sourced approximately 26%, 24% and 24%, respectively, of Michael Kors finished goods, based on unit volume.
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Property and Equipment, Net |
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Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consists of (in millions):
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
________________________________ (1)The March 30, 2019 balance includes certain lease rights that were reclassified to the operating lease right-of-use asset as part of the adoption of ASU 2016-02 in Fiscal 2020. Includes $2 million and $5 million, respectively, of impairment charges recorded during Fiscal 2019 and Fiscal 2018, primarily in connection with underperforming full-price Michael Kors retail stores. See Note 14 for additional information. (2)The year-over-year change in carrying value reflects an impairment charge of $180 million and foreign currency translation of $25 million. The Company did not incur any impairment charges in prior periods. (3)The year-over-year change in carrying value relates to foreign currency translation. 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 and are being amortized through March 31, 2041, the expiration date of the related license agreement. The trademarks relate to the Michael Kors brand name and are amortized over twenty years. Customer relationships are amortized over to eighteen years. Key money is amortized over the respective terms of the underlying lease, including highly probable renewal periods. Amortization expense for the Company’s definite-lived intangibles was $49 million, $37 million and $26 million, respectively, for each of the fiscal years ended March 28, 2020, March 30, 2019 and March 31, 2018. Indefinite-lived intangible assets other than goodwill included the Versace and Jimmy Choo brands, which were recorded in connection with the acquisitions of Versace and Jimmy Choo, and have an indefinite life due to being essential to the Company’s ability to operate the Versace and Jimmy Choo businesses for the foreseeable future. Estimated amortization expense for each of the next five years is as follows (in millions):
The future amortization expense above reflects weighted-average estimated remaining useful lives of 21 years for reacquired rights, 3 years for trademarks and 13 years for customer relationships. The following table details the changes in goodwill for each of the Company’s reportable segments (in millions):
(1)See Note 5 for additional information. (2)The Company recorded impairment charges of $171 million related to the Jimmy Choo retail and licensing reporting units. The Company did not incur any goodwill impairment charges in prior periods. The Company’s goodwill and the Versace and Jimmy Choo brands 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 2020, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis for its three segments. The Company performed its goodwill impairment assessment for its Michael Kors segment using a qualitative assessment. As a result of realigning its segment reporting structure during the fourth quarter of Fiscal 2019, the Company presented the carrying amount of goodwill for the Michael Kors Retail, Michael Kors Wholesale and Michael Kors Licensing reporting units within the Michael Kors reportable segment. Based on the results of the Company’s qualitative impairment assessment, the Company concluded that it is more likely than not that the fair value of the Michael Kors’ reporting units exceeded their carrying value and, therefore, were not impaired. The Company performed its annual goodwill and indefinite-lived intangible asset impairment analysis for both the Versace and Jimmy Choo reporting units using a quantitative approach, using a discounted cash flow analysis to estimate the fair values of the each brands' reporting units. Based on the results of these assessments, the Company concluded that the fair values of the Jimmy Choo retail and licensing reporting units and the Jimmy Choo brand indefinite-lived intangible asset did not exceed the related carrying amounts. Jimmy Choo expects to experience a reduction in profitability trends, primarily related to the ongoing impact of the COVID-19 pandemic, resulting in declines in sales driven by the full and partial closures of a significant portion of our stores globally. The Company also concluded that the fair values of the Versace reporting units and the Versace brand indefinite-lived intangible asset exceeded the related carrying amounts and there was no impairment recorded. Accordingly, the Company recorded impairment charges of $171 million related to the Jimmy Choo retail and licensing reporting units and $180 million related to the Jimmy Choo brand intangible asset during Fiscal 2020. The impairment charges were recorded within impairment of assets on the Company's consolidated statement of operations and comprehensive income for the fiscal year ended March 28, 2020. See Note 14 to the accompanying audited financial statements for information relating to its annual impairment analysis performed during the fourth quarter of Fiscal 2020.
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Current Assets and Current Liabilities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Assets and Current Liabilities | Current Assets and Current Liabilities Prepaid expenses and other current assets consist of the following (in millions):
Accrued expenses and other current liabilities consist of the following (in millions):
(1)The accrued rent balance relates to variable lease payments. (2)In connection with the adoption of ASU 2016-02, certain lease related assets and liabilities were reflected within operating lease right-of-use assets and liabilities as of March 28, 2020. See Note 2 and Note 4 for additional information.
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Restructuring and Other Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Other Charges | Restructuring and Other Charges Michael Kors Retail Fleet Optimization Plan During Fiscal 2020, the Company completed its plan to close between 100 and 150 of its Michael Kors retail stores in order to improve the profitability of its retail store fleet (“Michael Kors Retail Fleet Optimization Plan”). The Company expected approximately $100 - $125 million of one-time costs associated with these store closures, with total costs in line with its original expectations. Collectively, the Company continues to anticipate ongoing savings as a result of the store closures and lower depreciation expense associated with the impairment charges being recorded. During Fiscal 2020, the Company closed 43 of its Michael Kors retail stores under the Michael Kors Retail Fleet Optimization Plan, for a total of 143 stores closed at a cost of $99 million since plan inception. Restructuring charges recorded in connection with the Michael Kors Retail Fleet Optimization Plan during Fiscal 2020 was $5 million. The below table presents a rollforward of the Company’s remaining restructuring liability related to this plan (in millions):
(1)Consists of the reclassification of sublease liabilities to an offset of the related operating lease right-of-use asset due to the adoption of ASC 842. See Note 2 and Note 4 for further information. During Fiscal 2019, the Company recorded restructuring charges of $41 million under the Michael Kors Retail Fleet Optimization Plan, which were comprised of lease-related charges of $38 million and severance and benefit costs of $3 million. During Fiscal 2018, the Company recorded restructuring charges of $53 million under the Michael Kors Retail Fleet Optimization Plan, which were comprised of lease-related charges of $52 million and severance and benefit costs of $1 million. Other Restructuring Charges In addition to the restructuring charges related to the Michael Kors Retail Fleet Optimization Plan, the Company incurred charges of $3 million primarily consisting of lease-related costs during Fiscal 2020. The Company also incurred charges of $4 million relating to Jimmy Choo lease-related charges during Fiscal 2019. Other Costs During Fiscal 2020, the Company recorded costs of $34 million, which included $24 million in connection with the Versace acquisition and $9 million in connection with the acquisition of Jimmy Choo, and $1 million in connection with the acquisition of Gozzi. During Fiscal 2019, the Company recorded costs of $79 million, which included $52 million in connection with the Versace acquisition and $27 million in connection with the Jimmy Choo acquisition. During Fiscal 2018, the Company recorded costs of $49 million in connection with the Jimmy Choo acquisition. See Note 5 for additional information relating to these acquisitions.
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Debt Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations The following table presents the Company’s debt obligations (in millions):
(1)During Fiscal 2019, the Company repaid the remaining $59 million of borrowings outstanding under the previous Term Loan Facility entered into in connection with the Jimmy Choo acquisition. Senior Unsecured Revolving Credit Facility On March 20, 2020, the Company entered into the first amendment (the “First Amendment”) to its third amended and restated senior unsecured credit facility, dated as of November 15, 2018 (the “2018 Credit Facility”), with, among others, JPMorgan Chase Bank, N.A., as administrative agent. The First Amendment amends the 2018 Credit Facility to, among other things, provide for the exchange of approximately $267 million (out of $315 million) in aggregate principal amount of outstanding term loans due on the second anniversary, for term loans with the existing remaining tranche that matures on the fifth anniversary, resulting in the extension of the maturity of such exchanged loans to the third quarter of Fiscal 2024. The remaining $48 million that were not exchanged remain due in the third quarter of Fiscal 2021. In addition, the leverage ratio covenant metric in the 2018 Credit Facility was modified to take into account operating lease liability as defined by ASC 842. The Company and its U.S., Canadian, Dutch and Swiss subsidiaries are the borrowers under the 2018 Credit Facility. The borrowers and certain material subsidiaries of the Company provide unsecured guarantees of the 2018 Credit Facility. The 2018 Credit Facility provides for a $1.0 billion revolving credit facility (the “Revolving Credit Facility”), which may be denominated in U.S. Dollars and other currencies, including Euros, Canadian Dollars, Pounds Sterling, Japanese Yen and Swiss Francs. The Revolving Credit Facility also provides sub-facilities for the issuance of letters of credit of up to $75 million and swing line loans of up to $75 million. The 2018 Credit Facility also provides for a $1.6 billion term loan facility (the “2018 Term Loan Facility”) to finance a portion of the purchase price of the Company’s acquisition of Versace. The 2018 Term Loan Facility is divided into two tranches that now mature on the fifth anniversary of the initial borrowing of the term loans, except for the remaining $48 million that were not exchanged, and are required to be repaid on the last business day of March, June, September and December of each year, commencing after the last business day of the first full fiscal quarter after the initial borrowing, in installments equal to 2.50% of the aggregate original principal amount of the term loans. The Company has the right to prepay its borrowings under the 2018 Term Loan Facility at any time in whole or in part. The Revolving Credit Facility expires on November 15, 2023. The Company has the ability to expand its borrowing availability under the 2018 Credit Facility in the form of revolving commitments or term loans by up to an additional $500 million, subject to the agreement of the participating lenders and certain other customary conditions. Borrowings under the Revolving Credit Facility bear interest, at the Company’s option, at the following rates: •for any loans (except loans denominated in Canadian Dollars), the greater of Adjusted LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s public debt rating; •for loans denominated in U.S. Dollars, an alternate base rate, which is the greatest of: (a) the prime rate publicly announced from time to time by JPMorgan Chase, (b) the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate and zero, plus 50 basis points, and (c) the greater of the one-month London Interbank Offered Rate adjusted for statutory reserve requirements for Eurocurrency liabilities (“Adjusted LIBOR”) and zero, plus 100 basis points, in each case, plus an applicable margin based on the Company’s public debt ratings; •for loans denominated in Canadian Dollars, the Canadian prime rate, which is the greater of the PRIMCAN Index rate and the rate applicable to one-month Canadian Dollar banker’s acceptances quoted on Reuters (“CDOR”), plus 100 basis points, plus an applicable margin based on the Company’s public debt ratings; or •for loans denominated in Canadian Dollars, the average CDOR rate for the applicable interest period, plus 10 basis points per annum, plus an applicable margin based on the Company’s public debt ratings. Borrowings under the 2018 Term Loan Facility bear interest, at the Company’s option, at (a) the alternate base rate plus an applicable margin based on the Company’s public debt ratings; or (b) the greater of Adjusted LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s public debt ratings. The Revolving Credit Facility also provides for an annual administration fee and a commitment fee equal to 0.10% to 0.25% per annum, based on the Company’s public debt ratings, applied to the average daily unused amount of the Revolving Credit Facility. The 2018 Term Loan Facility provides for a commitment fee equal to 0.10% to 0.25% per annum, based on the Company’s public debt ratings, applied to the undrawn amount of the 2018 Term Loan Facility, from January 6, 2019 until the term loans are fully drawn or the commitments under the 2018 Term Loan Facility terminate or expire. Loans under the 2018 Credit Facility may be repaid and commitments may be terminated or reduced by the borrowers without premium or penalty other than the customary breakage costs with respect to loans bearing interest based on Adjusted LIBOR or the CDOR rate. As of the last day of Fiscal 2020, the 2018 Credit Facility required the Company to maintain a leverage ratio as of the end of each fiscal quarter of no greater than 3.75 to 1. Such leverage ratio is calculated based on the ratio of consolidated total indebtedness plus the capitalized amount of all operating lease liabilities presented on our consolidated balance sheets to Consolidated EBITDAR (as defined below) for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined as consolidated net income plus income tax expense, net interest expense, depreciation and amortization expense, consolidated rent expense and other non-cash charges, subject to certain additions and deductions. The 2018 Credit Facility also includes covenants that limit additional indebtedness, guarantees, liens, acquisitions and other investments and cash dividends that are customary for financings of this type. See Note 23 for additional information. As of March 28, 2020 and the date these financial statements were issued, the Company was in compliance with all covenants related to this agreement. The 2018 Credit Facility contains events of default customary for financings of this type, including, but not limited to, payment of defaults, material inaccuracy of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy or insolvency, certain events under The Employee Retirement Income Security Act, material judgments, actual or asserted failure of any guaranty supporting the 2018 Credit Facility to be in full force and effect, and changes of control. If such an event of default occurs, the lenders under the 2018 Credit Facility would be entitled to take various actions, including, but not limited to, terminating the commitments and accelerating amounts outstanding under the 2018 Credit Facility, subject to “certain funds” limitations in connection with the transaction governing the 2018 Term Loan Facility. In connection with the acquisition of Versace, on December 21, 2018 the Company borrowed $1.6 billion in term loans under the 2018 Term Loan Facility and $350 million under its $1.0 billion Revolving Credit Facility provided for under the 2018 Credit Facility, to pay a portion of the acquisition consideration and other related fees and expenses. As of March 28, 2020 and March 30, 2019, the Company had borrowings of $681 million and $539 million outstanding under the 2018 Revolving Credit Facility, respectively, which were recorded within long-term and short-term debt in its consolidated balance sheets. In addition, stand-by letters of credit of $18 million were outstanding as of March 28, 2020. At March 28, 2020, the amount available for future borrowings under the 2018 Revolving Credit Facility was $301 million. As of March 28, 2020, the carrying value of borrowings outstanding under the 2018 Term Loan Facility was $1.010 billion, net of debt issuance costs of $5 million, of which $128 million was recorded within short-term debt and $882 million was recorded within long-term debt in its consolidated balance sheets. Senior Notes On October 20, 2017, Michael Kors (USA), Inc. (the “Issuer”), the Company’s wholly owned subsidiary, completed its offering of $450 million aggregate principal amount of 4.000% senior notes due 2024 (the “Senior Notes”) at an issue price of 99.508% of aggregate principal amount, pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Senior Notes were issued under an indenture dated October 20, 2017, among the Issuer, the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (the “Indenture”). The Senior Notes were issued to finance a portion of the Company’s acquisition of Jimmy Choo and certain related refinancing transactions. The Senior Notes bear interest at a rate of 4.000% per year, subject to adjustments from time to time if either Moody’s or S&P (or a substitute rating agency therefore) downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Senior Notes. Interest on the Senior Notes is payable semi-annually on May 1 and November 1 of each year, beginning on May 1, 2018. The Senior Notes are unsecured and are guaranteed by the Company and its existing and future subsidiaries that guarantee or are borrowers under the 2018 Credit Facility (subject to certain exceptions, including subsidiaries organized in China). The Senior Notes may be redeemed at the Company’s option at any time in whole or in part at a price equal to 100% of the principal amount, plus accrued and unpaid interest, plus a “make-whole” amount calculated at the applicable Treasury Rate plus 30 basis points. The Senior Notes rank equally in right of payment with all of the Issuer’s and guarantors’ existing and future senior unsecured indebtedness, senior in right of payment to any future subordinated indebtedness, effectively subordinated in right of payment to any of the Company’s subsidiaries’ obligations (including secured and unsecured obligations) and any of the Company’s secured obligations, to the extent of the assets securing such obligations. The Indenture contains covenants, including those that limit the Company’s ability to create certain liens and enter into certain sale and leaseback transactions. In the event of a “Change of Control Triggering Event,” as defined in the Indenture, the Issuer will be required to make an offer to repurchase the Senior Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Senior Notes being repurchased plus any unpaid interest. These covenants are subject to important limitations and exceptions, as per the Indenture. As of March 28, 2020 and March 30, 2019, the carrying value of the Senior Notes was $446 million and $445 million, respectively, net of issuance costs and unamortized discount. Japan Credit Facility In November 2017, the Company’s subsidiary in Japan entered into a short term credit facility (“Japan Credit Facility”) with Mitsubishi UFJ Financial Group (“MUFJ”), which may be used to fund general working capital needs of Michael Kors Japan K.K., subject to the bank’s discretion. The Japan Credit Facility is in effect through November 30, 2020. The Japan Credit Facility provides Michael Kors Japan K.K. with a revolving credit line of up to ¥1.0 billion (approximately $9 million). The Japan Credit Facility bears interest at a rate posted by the Bank plus 0.300% two business days prior to the date of borrowing or the date of interest renewal. As of March 28, 2020 and March 30, 2019, the Company had no borrowings outstanding under the Japan Credit Facility. Hong Kong Credit Facility In May 2020, the Company’s Hong Kong subsidiary, MKHKL, renewed its uncommitted credit facility (“HK Credit Facility”) with HSBC, which may be used to fund general working capital needs of MKHKL through April 30, 2021 subject to the bank’s discretion. The HK Credit Facility provides MKHKL with a revolving line of credit of up to 100 million Hong Kong Dollars (approximately $14 million), and may be used to support bank guarantees. Borrowings under the HK Credit Facility must be made in increments of at least 5 million Hong Kong Dollars and bear interest at the Hong Kong Interbank Offered Rate (“HIBOR”) plus 150 basis points. As of March 28, 2020 and March 30, 2019, there were no borrowings outstanding under the HK Credit Facility. As of March 28, 2020, bank guarantees supported by this facility were 4 million Hong Kong Dollars (approximately $1 million). At March 28, 2020, the amount available for future borrowings under the HK Credit Facility was 96 million Hong Kong Dollars (approximately $13 million). China Credit Facility In January 2019, the Company’s subsidiary in China, MKTSCL, entered into a short-term credit facility (“China Credit Facility”) with HSBC, which may be used to fund general working capital needs, not to exceed 12 months. The China Credit Facility provides MKTSCL with a Revolving Loan Facility of up to RMB 70 million (approximately $10 million); an overdraft facility with a credit line of RMB 10 million (approximately $1 million), and a non-financial bank guarantee facility of RMB 20 million (approximately $3 million) or its equivalent in another currency, at lender’s discretion. Borrowings under the China Credit Facility bear interest at 105% of the applicable People’s Bank of China’s Benchmark lending rate at the time of borrowing. As of March 28, 2020, the Company had no borrowings outstanding under the China Credit Facility. Versace Credit Facilities In June 2019, the Company’s subsidiary, Versace, entered into two uncommitted short-term credit facilities, one with Unicredit and the other with Intesa (“Versace Credit Facilities”), which may be used for general working capital needs of Versace. The Versace Credit Facilities provide Versace with a swing line of credit of up to €32 million (approximately $36 million), with interest set by the bank on the date of borrowing. As of March 28, 2020, there were borrowings outstanding of €25 million (approximately $28 million), which were recorded within short-term debt in the Company’s consolidated balance sheet. In January 2018, Versace entered into an uncommitted short-term credit facility with BNL (“Versace Credit Facility”), which may be used for general working capital needs of Versace. The Versace Credit Facility provides Versace with a swing line of credit of up to €20 million (approximately $22 million), with interest set by the bank on the date of borrowing. As of March 28, 2020, there were borrowings outstanding of €10 million (approximately $11 million), which were recorded within short-term debt in the Company’s consolidated balance sheet.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has issued stand-by letters of credit to guarantee certain of its retail and corporate operating lease commitments, aggregating $24 million at March 28, 2020, including $18 million in letters of credit issued under the 2018 Credit Facility. Other Commitments As of March 28, 2020, the Company also has other contractual commitments aggregating $2.830 billion, which consist of inventory purchase commitments of $570 million, debt obligations of $2.179 billion and other contractual obligations of $81 million, which primarily relate to obligations related to the Company’s marketing and advertising agreements, information technology agreements and supply agreements. Long-term Employment Contract The Company has an employment agreement with the Chief Creative Officer of the Michael Kors brand that provides for continuous employment through the date of the officer’s death or permanent disability at an annual salary of $1 million. In addition to salary, the agreement provides for an annual bonus and other employee related benefits. In response to the continued global health and economic impact of the COVID-19 pandemic, the Chief Creative Officer of the Michael Kors brand voluntarily elected to forgo his salary for Fiscal 2021. 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.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are measured at fair value using the three-level 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 prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. At March 28, 2020 and March 30, 2019, the fair values of the Company’s forward foreign currency exchange contracts and net investment hedges were determined using broker quotations, which were calculations derived from observable market information: the applicable currency 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 assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values 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. The fair values of net investment hedges are included in other assets, as detailed in Note 15. All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions):
The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. See Note 12 for detailed information relating to carrying values of the Company’s outstanding debt. The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions):
The Company’s cash and cash equivalents, accounts receivable and accounts payable, are recorded at carrying value, which approximates fair value. Non-Financial Assets and Liabilities The Company’s non-financial assets include goodwill, intangible assets, operating lease right-of-use assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible assets (Versace and Jimmy Choo brands) are assessed for impairment at least annually, while its other long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The fair values of these assets were determined based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations. The following table details the carrying values and fair values of the Company’s assets that have been impaired (in millions):
Please refer to Note 8 and Note 9 for additional information. In addition to the impairment charges above, the Company recorded an adjustment to reduce its March 31, 2019 opening balance of retained earnings by $152 million, net of tax, reflecting impairments of operating lease right-of-use assets for certain underperforming real estate locations for which the carrying value of the opening operating lease right-of-use asset exceeded its related fair value. Property and equipment related to these underperforming locations were fully impaired due to the adoption of ASU 2016-02. See Note 2 and Note 4 for additional information. There were no impairment charges related to goodwill or indefinite-lived intangible assets in Fiscal 2019 and Fiscal 2018.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward foreign 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 certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes. On September 24, 2018, in connection with the acquisition of Versace, the Company entered into forward foreign currency exchange contracts with a total notional amount of €1.680 billion (approximately $2.001 billion) to mitigate its foreign currency exchange risk through the expected closing date of the acquisition. These derivative contracts were not designated as accounting hedges and were settled on December 21, 2018 as a result of the debt issued in connection with the acquisition of Versace (see Note 12 for further information). Changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statement of operations and comprehensive income for Fiscal 2019. On July 25, 2017, in connection with the acquisition of Jimmy Choo, which closed on November 1, 2017, the Company entered into a forward foreign currency exchange contract with a notional amount of £1.115 billion (approximately $1.469 billion) to mitigate its foreign currency exchange risk through the date of the acquisition. This derivative contract was not designated as an accounting hedge and was settled on October 30, 2017. Changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statement of operations and comprehensive income for the Fiscal 2018. Net Investment Hedges As of March 28, 2020, the Company had one fixed-to-fixed cross-currency swap agreement with a notional amount of $44 million to hedge its net investment in Japanese Yen-denominated subsidiaries against future volatility in the exchange rate between the U.S. Dollar and the Japanese Yen. Under the term of this contract, which has a maturity date of November 2024, the Company will exchange the semi-annual fixed rate payments on U.S. denominated debt for fixed rate payments of 0.89% in Japanese Yen. This contract has been designated as a net investment hedge. During the fourth quarter of Fiscal 2020, the Company terminated all of its net investment hedges related to its Euro-denominated subsidiaries. The early termination of these hedges resulted in the Company receiving $296 million in cash during the fourth quarter of Fiscal 2020. This resulted in a pre-tax gain of $211 million being recognized in OCI during the fourth quarter of Fiscal 2020. When a cross-currency swap is used as a hedging instrument in a net investment hedge assessed under the spot method, the cross-currency basis spread is excluded from the assessment of hedge effectiveness and is recognized as a reduction in interest expense in the Company’s consolidated statements of operations and comprehensive income. Accordingly, the Company recorded a reduction in interest expense of $71 million and $17 million, respectively, during Fiscal 2020 and Fiscal 2019. The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of March 28, 2020 and March 30, 2019 (in millions):
(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. (3)Recorded within other assets in the Company’s audited consolidated balance sheets. (4)Primarily includes undesignated hedges of foreign currency denominated intercompany balances and inventory purchases. The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheets on a gross basis, as shown in the above table. However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of March 28, 2020 and March 30, 2019 would be as follows (in millions):
The Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. Changes in the fair value of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income (loss), and are reclassified from accumulated other comprehensive income (loss) 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 and comprehensive income (loss). The net gain or loss on net investment hedges are reported within foreign currency translation gains and losses (“CTA”) as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Upon discontinuation of the hedge, such amounts remain in CTA until the related net investment is sold or liquidated. The following table summarizes the pre-tax impact of the gains and losses on the Company's designated forward foreign currency exchange contracts and net investment hedges (in millions):
The following tables summarize the impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for Fiscal 2020 and Fiscal 2019 (in millions):
The Company expects that substantially all of the amounts recorded in accumulated other comprehensive income (loss) for its forward foreign currency exchange contracts will be reclassified into earnings during the next 12 months, based upon the timing of inventory purchases and turnover. Undesignated Hedges During Fiscal 2020, Fiscal 2019 and Fiscal 2018, the Company recognized an immaterial amount of net gains, net losses of $78 million and net gains of $3 million respectively, related to changes in the fair value of undesignated forward foreign currency exchange contracts within foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income. The Fiscal 2019 amount was primarily comprised of a $77 million loss related to the derivative contracts entered into on September 25, 2018 to mitigate foreign currency exchange risk associated with the Versace acquisition that were settled on December 21, 2018.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program During Fiscal 2020, the Company repurchased 2,711,807 shares through open market transactions at a cost of $100 million under its new $500 million share-repurchase program, which was authorized by the Company’s Board of Directors on August 1, 2019 and which expires on August 1, 2021. During Fiscal 2019, the Company repurchased 3,718,237 shares through open market transactions at a cost of $200 million under its previous $1.0 billion share-repurchase program, which expired on May 25, 2019. As of March 28, 2020, the remaining availability under the Company’s share repurchase program was $400 million. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading transactions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time. The share repurchase program was suspended on April 6, 2020 in response to the continued global health and economic impact of the COVID-19 pandemic. The Company also has in place a “withhold to cover” repurchase program, which allows the Company to withhold ordinary shares from certain executive officers and directors to satisfy minimum tax withholding obligations relating to the vesting of their restricted share awards. During Fiscal 2020 and Fiscal 2019, the Company withheld 63,958 shares and 107,712 shares, respectively, with a fair value of $2 million and $7 million, respectively, in satisfaction of minimum tax withholding obligations relating to the vesting of restricted share awards. Accumulated Other Comprehensive Income (Loss) The following table details changes in the components of accumulated other comprehensive income (loss) ("AOCI"), net of taxes for Fiscal 2020, Fiscal 2019 and Fiscal 2018 (in millions):
(1)Foreign currency translation gains and losses include net gains of $6 million for both Fiscal 2020 and Fiscal 2019, on intra-entity transactions that are of a long-term investment nature. Foreign currency translation losses for Fiscal 2020 include a $60 million translation loss relating to the Jimmy Choo business, a $10 million translation loss relating to the Versace business and a $219 million gain, net of taxes of $45 million relating to the Company’s net investment hedges. Foreign currency translation losses for Fiscal 2019 includes an $105 million translation loss relating to the Jimmy Choo business, a $33 million translation loss relating to the Versace business and a $39 million gain, net of taxes of $8 million relating to the Company's net investment hedges. (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. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2020 was immaterial. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2019 and Fiscal 2018 is net of a tax benefits of $2 million and $3 million, respectively. All tax effects were not material for the periods presented.
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Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans which includes one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and an Omnibus Incentive Plan adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015 (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of March 28, 2020, there were no shares available to grant equity awards under the 2008 Plan. The Incentive Plan allows for grants of share options, restricted shares and RSUs, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At March 28, 2020, there were 2,686,919 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant. Share Options Share options are generally exercisable at the fair market value on the date of grant and vest on a pro-rata basis over a year service period. The following table summarizes the share options activity during Fiscal 2020, and information about options outstanding at March 28, 2020:
There were 286,020 unvested options and 1,785,076 vested options outstanding at March 28, 2020. The total intrinsic value of options exercised during Fiscal 2020 was immaterial and $94 million during Fiscal 2019. The cash received from options exercised during Fiscal 2020 was immaterial and $29 million during Fiscal 2019. As of March 28, 2020, the remaining unrecognized share-based compensation expense for nonvested share options was $2 million, which is expected to be recognized over the related weighted-average period of approximately 1.80 years. There were no options granted during Fiscal 2020. The weighted average grant date fair value for options granted during Fiscal 2019 and Fiscal 2018 was $24.49 and $11.62, respectively. The following table represents assumptions used to estimate the fair value of options:
Restricted Awards The Company grants restricted share units at the fair market value on the date of the grant. Expense for restricted awards is based on the closing market price of the Company’s shares on the date of grant and is recognized ratably over the vesting period net of expected forfeitures. The Company grants two types of restricted stock unit ("RSU") awards: time-based RSUs and performance-based RSUs. Time-based RSUs generally vest in full either generally around the first anniversary of the date of grant for our independent directors, or in equal increments on each of the anniversaries of the date of grant. Performance-based RSUs vest in full on the second or third anniversary of the date of grant, subject to the employee’s continued employment during the vesting period (unless the employee is retirement-eligible) and only if certain pre-established cumulative performance targets are met. Expense related to performance-based RSUs is recognized ratably over the performance period, net of forfeitures, based on the probability of attainment of the related performance targets. The potential number of shares that may be earned ranges from 0%, if the minimum level of performance is not attained, to 150%, if the level of performance is at or above the predetermined maximum achievement level. The following table summarizes the RSU activity during Fiscal 2020:
The total fair value of service-based RSUs vested during Fiscal 2020, Fiscal 2019 and Fiscal 2018 was $56 million, $47 million and $18 million, respectively. The total fair value of performance-based RSUs vested during Fiscal 2020, Fiscal 2019 and Fiscal 2018 was $3 million, $7 million and $4 million, respectively. As of March 28, 2020, the remaining unrecognized share-based compensation expense for non-vested service-based and performance-based RSU grants was $111 million and $7 million, respectively, which is expected to be recognized over the related weighted-average periods of approximately 3.01 years and 1.45 years, respectively. There were no non-vested restricted shares during Fiscal 2020. The total fair value of restricted shares vested was $4 million and $4 million during Fiscal 2019 and Fiscal 2018, respectively. Share-Based Compensation Expense The following table summarizes compensation expense attributable to share-based compensation for Fiscal 2020, Fiscal 2019 and Fiscal 2018 (in millions):
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 to date. The estimated value of future forfeitures for equity grants as of March 28, 2020 is approximately $22 million.
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Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes | TaxesThe Company is a United Kingdom tax resident and is incorporated in the British Virgin Islands. Capri’s subsidiaries are subject to taxation in the U.S. and various other foreign jurisdictions, which are aggregated in the “Non-U.S.” information captioned below. (Loss) income before provision for income taxes consisted of the following (in millions):
The provision for income taxes was as follows (in millions):
(1)Includes an $18 million provision related to the U.S. Tax Act one time revaluation of deferred tax assets. (2)Includes a $25 million current tax provision and equal deferred tax benefit related to the U.S. Tax Act impact to business interest disallowance provisions. (3)Includes a $35 million current tax benefit due to a release of income tax reserves in the U.S. The Company’s provision for income taxes for the years ended March 28, 2020, March 30, 2019 and March 31, 2018 was different from the amount computed by applying the statutory U.K. income tax rate to the underlying (loss) income from operations before income taxes as a result of the following:
(1)Includes an $18 million expense related to the re-measurement of certain net deferred tax assets in connection with U.S. Tax Act. (2)Mainly attributable to the United States statutory federal income tax rate change from a blended rate for Fiscal 2018 of 31.54% to 21% in Fiscal 2019. (3)Includes an $11 million provision related to a United Kingdom capital loss. (4)Mainly attributable to pre-tax loss position in Fiscal 2020 (5)Mainly attributable to valuation allowances established on a portion of Non-US deferred tax assets (6)Attributable to the Jimmy Choo brand intangible that was impaired in Fiscal 2020 Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):
The Company maintains valuation allowances on deferred tax assets applicable to subsidiaries in jurisdictions for which separate income tax returns are filed and where realization of the related deferred tax assets from future profitable operations is not reasonably assured. Deferred tax valuation allowances increased approximately $94 million, $29 million and $8 million in Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively. The Company established valuation allowances amounting to approximately $110 million in Fiscal 2020, as a result of the expected inability to realize deferred tax asset balances in certain countries comprising the Company’s North American, European, and Asian operations. Additionally, in certain jurisdictions the Company remeasured and increased the valuation allowance by approximately $3 million in Fiscal 2020. The Company also remeasured and reduced the valuation allowance by approximately $19 million in Fiscal 2020 and released valuation allowances of approximately $3 million and $1 million in Fiscal 2019 and Fiscal 2018, respectively. At March 28, 2020, the Company had non-U.S. and U.S. net operating loss carryforwards of approximately $570 million, a portion of which will begin to expire in 2020. As of March 28, 2020 and March 30, 2019, the Company had liabilities related to its uncertain tax positions, including accrued interest, of approximately $109 million and $203 million, respectively, which are included in other long-term liabilities in the Company’s consolidated balance sheets. The March 28, 2020 balance, compared to the March 30, 2019 balance, includes the release of income tax reserves in North America and Europe. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was approximately$82 million, $112 million and $101 million as of March 28, 2020, March 30, 2019 and March 31, 2018, respectively. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2020, Fiscal 2019 and Fiscal 2018, are presented below (in millions):
(1)Primarily relates to the Versace acquisition. (2)Primarily relates to releases of North American and European tax reserves (3)Primarily relates to US audit effective settlement The Company classifies interest and penalties related to unrecognized tax benefits as components of the provision for income taxes. Interest expense recognized in the consolidated statements of operations and comprehensive income for Fiscal 2020, Fiscal 2019 and Fiscal 2018 was approximately $11 million, $11 million and $7 million, respectively. The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. The Company anticipates that the balance of gross unrecognized tax benefits, excluding interest and penalties, will be reduced by approximately $8 million during the next 12 months, primarily due to the anticipated settlement of a tax examination as well as statute of limitation expirations. However, the outcomes and timing of such events are highly uncertain and changes in the occurrence, expected outcomes, and timing of such events could cause the Company’s current estimate to change materially in the future. The Company files income tax returns in the U.S., for federal, state, and local purposes, and in certain foreign jurisdictions. With few exceptions, the Company is no longer subject to examinations by the relevant tax authorities for years prior to its fiscal year ended April 1, 2017. Prior to the enactment of the Tax Cuts and Jobs Act, the Company's undistributed foreign earnings were considered permanently reinvested and, as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the Tax Act, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the Tax Act were deemed to have been repatriated. It remains the Company's intent to either reinvest indefinitely substantially all of its foreign earnings outside of the United States or repatriate them tax neutrally. However, if future earnings are repatriated, the potential exists that the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding tax and income taxes. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.
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Retirement Plans |
12 Months Ended |
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Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement PlansThe Company maintains defined contribution plans for employees, who generally become eligible to participate after three months of service. Features of these plans allow participants to contribute to a plan a percentage of their compensation, up to statutory limits depending upon the country in which a plan operates, and provide for mandatory and/or discretionary matching contributions by the Company, which vary by country. During Fiscal 2020, Fiscal 2019, and Fiscal 2018, the Company recognized expenses of approximately $12 million, $14 million, and $12 million, respectively, related to these retirement plans. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates its business through three operating segments—Versace, Jimmy Choo and Michael Kors, which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are revenue and operating income for each segment. The Company’s reportable segments represent components of the business that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s three reportable segments are as follows: •Versace — segment includes revenue generated through the sale of Versace luxury ready-to-wear, accessories, footwear and home furnishings through directly operated Versace boutiques throughout North America (United States and Canada), EMEA and certain parts of Asia, as well as through Versace outlet stores and e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements that allow third parties to use the Versace trademarks in connection with retail and/or wholesale sales of Versace branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of jeans, fragrances, watches, jewelry and eyewear. •Jimmy Choo — segment includes revenue generated through the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, EMEA and certain parts of Asia, through its e-commerce sites, as well as through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo trademarks in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide. In addition, revenue is generated through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of fragrances, sunglasses and eyewear. •Michael Kors — segment includes revenue generated through the sale of Michael Kors products through four primary Michael Kors retail store formats: “Collection” stores, “Lifestyle” stores (including concessions), outlet stores and e-commerce sites, through which the Company sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to the end consumer throughout the Americas, Europe and certain parts of Asia. The Company also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third parties to use the Michael Kors brand name and trademarks in connection with the manufacturing and sale of products, including watches, jewelry, fragrances and eyewear. In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, and information systems expenses, including enterprise resource planning system implementation costs. In addition, certain other costs are not allocated to segments, including restructuring and other charges (including transition costs related to the Company’s recent acquisitions), impairment costs and COVID-19 related charges. The segment structure is consistent with how the Company’s CODM plans and allocates resources, manages the business and assesses performance. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The following table presents the key performance information of the Company’s reportable segments (in millions):
(1)Impairment of assets during Fiscal 2020 includes $434 million, $187 million and $87 million of impairment charges related to the Jimmy Choo, Michael Kors and Versace reportable segments, respectively. The impairment charges during Fiscal 2019 and Fiscal 2018 were primarily related to the Michael Kors reportable segment. (2)COVID-19 related charges primarily include additional inventory reserves and bad debt expense of $92 million and $25 million, respectively, recorded within costs of goods sold and selling, general and administrative expenses in the consolidated statements of operations. Depreciation and amortization expense for each segment are as follows (in millions):
(1)Excluded from the above table are impairment charges, which are detailed in the below table and in Note 8, Note 9 and Note 14. See Note 9 to the accompanying consolidated financial statements for the Company’s goodwill by reportable segment. Total revenue (based on country of origin) and long-lived assets by geographic location are as follows (in millions):
(1)Long-lived assets as of March 28, 2020 reflect operating lease right-of-use assets resulting from the Company’s adoption of ASU 2016-02. See Note 2 for additional information. (2)Net revenues earned in the U.S. during Fiscal 2020, Fiscal 2019, and Fiscal 2018 were $2.898 billion, $2.972 billion and $2.818 billion, respectively. Long-lived assets located in the U.S. as of March 28, 2020 and March 30, 2019 were $1.060 billion and $296 million, respectively. As of March 28, 2020 and March 30, 2019, the Company's total assets were $7.946 billion and $6.650 billion, respectively. The increase in total assets was primarily due to the adoption of ASU 2016-02 in the first quarter of Fiscal 2020. As of March 28, 2020, the Company had operating lease right-of-use assets recorded on its consolidated balance sheets of $1.625 billion, of which $968 million related to Michael Kors, $457 million related to Versace, and $200 million related to Jimmy Choo. Total revenue by major product category are as follows (in millions):
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Selected Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information (Unaudited) | Selected Quarterly Financial Information (Unaudited) The following table summarizes the Fiscal 2020 and Fiscal 2019 quarterly results (dollars in millions):
(1)All fiscal quarters presented contain 13 weeks. (2)Fiscal quarter ended June 29, 2019 includes impairment charges of $97 million, other costs related to acquisitions of $12 million and restructuring charges of $1 million. (3)Fiscal quarter ended September 28, 2019 includes impairment charges of $104 million and other costs related to acquisitions of $6 million. (4)Fiscal quarter ended December 28, 2019 includes impairment charges of $19 million, other costs related to acquisitions of $8 million and restructuring charges of $5 million. (5)Fiscal quarter ended March 28, 2020 includes impairment charges of $488 million and other costs related to acquisitions of $8 million. (6)Fiscal quarter ended June 30, 2018 includes impairment charges of $4 million, other costs related to acquisitions of $7 million and restructuring charges of $4 million. (7)Fiscal quarter ended September 29, 2018 includes impairment charges of $7 million, other costs related to acquisitions of $16 million and restructuring charges of $2 million. (8)Fiscal quarter ended December 29, 2018 includes impairment charges of $6 million, other costs related to acquisitions of $12 million and restructuring charges of $8 million. (9)Fiscal quarter ended March 30, 2019 includes impairment charges of $4 million, other costs related to acquisitions of $44 million and restructuring charges of $31 million. See Note 11 for additional information related to restructuring charges, as well as other costs related to acquisitions and Note 14 for additional information related to impairment charges.
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Non-cash Investing Activities |
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Mar. 28, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Non-cash Investing Activities | Non-cash Investing Activities Significant non-cash investing activities for Fiscal 2019 and Fiscal 2018 included non-cash allocations of the fair values of the net assets acquired in connection with the Company’s acquisitions of Versace and Jimmy Choo, respectively. In addition, non-cash investing activities for Fiscal 2019 included an investment of 2.4 million of the Company’s ordinary shares made by the Versace family at acquisition date, which was valued at $91 million. See Note 5 for additional information. There were no other significant non-cash investing or financing activities during the fiscal periods presented.
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Subsequent Events |
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Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Amendment to Credit Facility On June 25, 2020, the Company entered into the second amendment (the “Second Amendment”), to the 2018 Credit Facility, with, among others, JPMorgan Chase Bank, N.A., as administrative agent. Pursuant to the Second Amendment, the obligations under the 2018 Credit Facility will be secured by liens on substantially all of the assets of the Company and its U.S. subsidiaries that borrowers and guarantors, subject to certain exceptions, and substantially all of the registered intellectual property of the Company and its subsidiaries. This requirement for collateral will fall away if the Company achieves an investment grade ratings requirement for two consecutive full fiscal quarters. The Amendment adds a restriction on the disposition of assets and a requirement to prepay the term loans with certain net cash proceeds of non-ordinary course asset sales, subject to certain exceptions and a reinvestment option with respect to up to $100 million of net cash proceeds in the aggregate. Pursuant to the Second Amendment, the financial covenant in the Company's 2018 Credit Facility requiring it to maintain a ratio of the sum of total indebtedness plus the capitalized amount of all operating lease obligations for the last four fiscal quarters to Consolidated EBITDAR of no greater than 3.75 to 1.0 has been waived through the fiscal quarter ending June 26, 2021. When this financial covenant is reinstated, the applicable ratio will be calculated net of the Company's unrestricted cash and cash equivalents to the extent in excess of $100 million and shall exclude up to $150 million of supply chain financings, and the maximum permitted net leverage ratio will be 4.00 to 1.0. In addition, until March 31, 2021, the material adverse change representation required to be made in connection with revolving borrowings and the issuance or amendment of letters of credit will be modified to disregard certain COVID-19 pandemic-related impacts to the business, results of operations or financial condition of the Company and its subsidiaries, taken as a whole. The Second Amendment also requires the Company, during the period from June 25, 2020 until it delivers its financial statements with respect to the fiscal quarter ending June 26, 2021, to maintain at all times unrestricted cash and cash equivalents plus the aggregate undrawn amounts under the revolving facilities under the 2018 Credit Facility of not less than $300 million, increasing to $400 million on October 1, 2020 and $500 million on December 1, 2020. The 2018 Credit Facility and the Indenture governing the Company's senior notes contain certain restrictive covenants that impose operating and financial restrictions on the Company, and the Second Amendment imposes incremental restrictions on certain of these covenants during the covenant relief period provided under the 2018 Credit Facility, including restrictions on its ability to incur additional indebtedness and guarantee indebtedness, pay dividends or make other distributions or repurchase or redeem capital stock, make loans and investments, including acquisitions, sell assets, incur liens, enter into transactions with affiliates and consolidate, merge or sell all or substantially all of its assets. In addition, the Second Amendment adds a new $230 million revolving line of credit that matures on June 24, 2021 (the “364 Day Facility”). The terms of the 364 Day Facility are substantially similar to the terms of the existing revolving facility under the Credit Facility except that (i) no letters of credit or swingline loans are provided and (ii) for loans subject to Adjusted LIBOR, the applicable margin is 225 basis points per annum, for loans subject to the base rate the applicable margin is 125 basis points per annum and the commitment fee is 35 basis points per annum. In addition, while the 364 Day Facility is outstanding, (i) if the Company incurs any incremental indebtedness under the Credit Facility or certain permitted indebtedness in lieu of such incremental indebtedness, the 364 Day Facility will be reduced on a dollar for dollar basis and the Company will be required to make corresponding prepayments and (ii) the Company will be required to prepay amounts outstanding under the 364 Day Facility on a weekly basis to the extent that cash and cash equivalents of the Company and its subsidiaries exceed $200 million. The Second Amendment also permits certain working capital facilities between the Company or any of its subsidiaries with a lender or an affiliate of a lender under the Credit Facility to be guaranteed under the Credit Facility guarantees and certain supply chain financings with, and up to $50 million outstanding principal amount of bilateral letters of credit and bilateral bank guarantees issued by, a lender or an affiliate of a lender to be guaranteed and secured under the Credit Facility guarantees and collateral documents. Capri Retail Store Optimization Program In addition, the Company recently approved a plan to close approximately 170 of its retail stores over the next fiscal years in order to improve the profitability of its retail store fleet. Over this time period, the Company expects to incur approximately $75 million of costs associated with these store closures. See Item 9B - Other Information for additional information. Revolving Credit Facilities During Fiscal 2021, the Company made net payments of approximately $328 million to lower the outstanding balance of its Revolving Credit Facilities.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Period | The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the fiscal years ending on March 28, 2020, March 30, 2019, and March 31, 2018 (“Fiscal 2020”, “Fiscal 2019” and “Fiscal 2018”, respectively) contain 52 weeks. Timing of Filing of Annual Report on Form 10-K As a result of the impacts of the COVID-19 pandemic on the business and employees of the Company, the Company has relied on the Securities and Exchange Commission’s Order under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies dated March 25, 2020, to delay the filing of its Annual Report on Form 10-K for Fiscal 2020 by up to 45 days from May 27, 2020, which is the original filing due date. The Company’s operations and business have experienced significant disruption due to the unprecedented conditions surrounding the COVID-19 global pandemic. The Company has been following the recommendations of local government and health authorities to minimize exposure risk for its employees. As a result, most of the Company’s corporate offices globally have been temporarily closed due to the pandemic and corporate employees involved in the Company’s annual financial statement closing process and finalizing the audit of the Company’s financial statements for Fiscal 2020 are working remotely. In addition, the Company required additional time to prepare analyses related to the impact of COVID-19 on its business and complete related required disclosures. This has resulted in delays in finalizing the Annual Report on Form 10-K for Fiscal 2020 and accompanying audited financial statements.
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Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP 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 net realizable value, the valuation of share-based compensation, the valuation of deferred taxes and the valuation of goodwill, intangible assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates.
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Reclassifications | Reclassifications Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation.
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Seasonality | Seasonality The Company experiences certain effects of seasonality with respect to its business. The Company generally experiences greater sales during its third fiscal quarter, primarily driven by holiday season sales, and the lowest sales during its first fiscal quarter.
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Revenue Recognition | Revenue Recognition The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company recognizes retail store revenues when control of the product is transferred at the point of sale at Company owned stores, including concessions, net of estimated returns. Revenue from sales through the Company’s e-commerce sites is recognized at the time of delivery to the customer, reduced by an estimate of returns. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, after merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for retail revenue, gross sales are reduced by actual customer returns as well as by a provision for estimated future customer returns, which is based on management’s review of historical and future customer return expectations. Sales taxes collected from retail customers are presented on a net basis and, as such, are excluded from revenue. To arrive at net sales for wholesale revenue, gross sales are reduced by provisions for estimated future returns, based on current expectations, as well as trade discounts, markdowns, allowances, operational chargebacks, and certain cooperative selling expenses. These estimates are based on such factors as historical trends, actual and forecasted performance and current market conditions, which are reviewed by management on a quarterly basis. Royalty revenue generated from product licenses, which includes contributions for advertising, is based on reported sales of licensed products bearing the Company’s trademarks at rates specified in the license agreements. These agreements are also subject to contractual minimum levels. Royalty revenue generated by geographic licensing agreements is recognized as it is earned under the licensing agreements based on reported sales of licensees applicable to specified periods, as outlined in the agreements. These agreements allow for the use of the Company’s tradenames to sell its branded products in specific geographic regions. The adverse impact from the COVID-19 pandemic which includes, but is not limited to, temporary retail store closures, wholesale customer store closures, a reduction in retail store traffic, a decline in international tourism and a decrease in consumer consumption is reflected in the Company's Fiscal 2020 total revenue. Loyalty Program The Company has a Michael Kors customer loyalty program in the United States, which allows customers to earn points on qualifying purchases toward monetary and non-monetary rewards that may be redeemed for purchases at the Company’s retail stores and e-commerce site. The Company allocates a portion of the initial sales transaction based on the estimated relative fair value of the benefits using statistical formulas based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheets.The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s brands. The Company has chosen to apply the practical expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations that have an expected duration of 12 months or less. Retail The Company generates sales through directly operated stores and e-commerce throughout the Americas (U.S., Canada and Latin America), EMEA (Europe, Middle East and Africa) and certain parts of Asia. Retail revenue is recognized when control of the product is transferred at the point of sale at Company owned stores, including concessions. For e-commerce transactions, control is transferred and revenue is recognized when products are delivered to the customer, net of estimated returns. To arrive at net sales for retail, gross sales are reduced by actual customer returns, as well as by a provision for estimated future customer returns. Sales tax collected from retail customers are presented on a net basis and, as such, are excluded from revenue. Shipping and handling costs that are billed to customers are included in net sales, with the related costs recorded in cost of goods sold. Shipping and handling costs that are not billed to customers are accounted for as fulfillment costs. Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The Company anticipates that substantially all of its outstanding gift cards will be redeemed within the next 12 months. The contract liability related to gift cards, net of estimated “breakage”, was $11 million and $13 million as of March 28, 2020 and March 30, 2019, respectively, and is included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program. The Company offers a loyalty program, which allows its Michael Kors U.S. customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. The contract liability, net of an estimated “breakage,” of $2 million and $3 million as of March 28, 2020 and March 30, 2019, respectively, is recorded as a reduction to revenue in the consolidated statements of income and comprehensive income and within accrued expenses and other current liabilities in the Company’s consolidated balance sheet and is expected to be recognized within the next 12 months. Wholesale The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America. Wholesale revenue is recognized net of estimates for sales returns, discounts, markdowns and allowances, when merchandise is shipped and control of the underlying product is transferred to the Company’s wholesale customers. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, as well as trade discounts, markdowns, allowances, operational chargebacks and certain cooperative selling expenses. These estimates are developed based on historical trends, actual and forecasted performance and market conditions, and are reviewed by management on a quarterly basis. Unfulfilled, non-cancelable purchase orders for products from wholesale customers (including the Company’s geographic licensees) are expected to be fulfilled within the next 12 months. Licensing The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under product licensing arrangements, the Company allows third parties to manufacture and sell luxury goods, including watches and jewelry, fragrances, sunglasses and eyewear, using the Company’s trademarks. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa, certain parts of Asia and Australia. The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Advertising contributions are received to support the Company’s branded advertising and marketing campaigns and are viewed as part of a single performance obligation with the right to access the Company’s trademarks. Royalty revenue generated from licenses, which includes contributions for advertising, may be subject to contractual minimum levels, as defined in the contract. Such minimums are generally fixed annually, based on the previous year’s sales. Licensing revenue is based on reported current period sales of licensed products at rates that are specified in the license agreements for contracts that are expected to exceed the related guaranteed minimums. If the Company expects the minimum guaranteed amounts to exceed amounts calculated based on actual sales, the guaranteed minimums are recognized ratably over the contractual year to which they relate.
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Advertising and Marketing Costs | Advertising and Marketing Costs Advertising and marketing costs are expensed over the period of benefit and are recorded in selling, general and administrative expenses. Advertising and marketing expense was $201 million, $158 million and $167 million in Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively. Cooperative advertising expense, which represents the Company’s participation in advertising expenses of its wholesale customers, is reflected as a reduction of net sales.
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Shipping and Handling | Shipping and HandlingFreight-in expenses are recorded as part of cost of goods sold, along with product costs and other costs to acquire inventory. The costs of preparing products for sale, including warehousing expenses, are included in selling, general and administrative expenses. Selling, general and administrative expenses also include the costs of shipping products to the Company’s e-commerce customers. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash EquivalentsAll highly liquid investments with original maturities of three months or less are considered to be cash equivalents. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories mainly consist of finished goods with the exception of raw materials and work in process inventory. The combined total of raw materials and work in process inventory recorded on the Company's consolidated balance sheets as of March 28, 2020 and March 30, 2019 were $27 million and $25 million, respectively. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted-average cost method. Costs include amounts paid to independent manufacturers, plus duties and freight to bring the goods to the Company’s warehouses, as well as shipments to stores. The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. In addition, reserves for inventory losses are estimated based on historical experience and physical inventory counts. The Company’s inventory reserves are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from expectations. Our historical estimates of these adjustments have not differed materially from actual results. The net realizable value of the Company's inventory as of March 28, 2020 includes the adverse impacts connected to the COVID-19 pandemic. This includes the impact from temporary retail store closures, wholesale customer store closures, reductions in retail store traffic, a decline in international tourism and a decrease in consumer consumption.
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Store Pre-opening Costs | Store Pre-opening Costs Costs associated with the opening of new retail stores and start up activities, are expensed as incurred.
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Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization (carrying value). Depreciation is recorded on a straight-line basis over the expected remaining useful lives of the related assets. Equipment, furniture and fixtures, are depreciated over to seven years, computer hardware and software are depreciated over to five years. The Company’s share of the cost of constructing in-store shop displays within its wholesale customers’ floor-space (“shop-in-shops”), which is paid directly to third-party suppliers, is capitalized as property and equipment and is generally amortized over a useful life of to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated remaining useful lives of the related assets or the remaining lease term, including highly probable renewal periods. The Company includes all depreciation and amortization expense as a component of total operating expenses, as the underlying long-lived assets are not directly or indirectly related to bringing the Company’s products to their existing location and condition. Maintenance and repairs are charged to expense in the year incurred. The Company capitalizes, in property and equipment, direct costs incurred during the application development stage and the implementation stage for developing, purchasing or otherwise acquiring software for its internal use. These costs are amortized over the estimated useful lives of the software, generally five years. All costs incurred during the preliminary project stage, including project scoping and identification and testing of alternatives, are expensed as incurred.
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Definite-Lived Intangible Assets | Definite-Lived Intangible AssetsThe Company’s definite-lived intangible assets consist of trademarks and customer relationships which are stated at cost less accumulated amortization. The Company’s customer relationships are amortized over | to eighteen years. Reacquired rights recorded in connection with the acquisition of MKHKL are amortized through March 31, 2041, the original expiration date of the Michael Kors license agreement in the Greater China region.||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates its long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company’s impairment testing is based on its best estimate of its future operating cash flows. To the extent the sum of the estimated undiscounted future cash flows associated with the asset is less than the carrying value, the Company typically recognizes an impairment loss measured by the amount in which the carrying value exceeds the fair value of the asset, taking into consideration other market assumptions. The fair values determined by management require significant judgment and include certain assumptions regarding future sales and expense growth rates, discount rates and estimates of current real estate market values. As such, these estimates may differ from actual results and are affected by future market and economic conditions.
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Goodwill | Goodwill and Other Indefinite-lived Intangible Assets The Company records indefinite-lived intangible assets based on fair value on the date of acquisition. Goodwill is recorded for the difference between the fair value of the purchase consideration over the fair value of the net identifiable tangible and intangible assets acquired. The brand intangible assets recorded in connection with the acquisitions of Versace and Jimmy Choo were determined to be indefinite-lived intangible assets, which are not subject to amortization. The Company performs an impairment assessment of goodwill, as well as the Versace and Jimmy Choo brand intangible assets on an annual basis, or whenever impairment indicators exist. In the absence of any impairment indicators, goodwill, the Versace brand and the Jimmy Choo brand are assessed for impairment during the fourth quarter of each fiscal year. Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business. The Company may assess its goodwill and its brand indefinite-lived intangible assets for impairment initially using a qualitative approach to determine whether it is more likely than not that the fair value of these assets is greater than their carrying value. When performing a qualitative test, the Company assesses various factors including industry and market conditions, macroeconomic conditions and performance of the Company’s businesses. If the results of the qualitative assessment indicate that it is more likely than not that the Company’s goodwill and other indefinite-lived intangible assets are impaired, a quantitative impairment analysis would be performed to determine if impairment is required. The Company may also elect to perform a quantitative analysis of goodwill and its indefinite-lived intangible assets initially rather than using a qualitative approach. The impairment testing for goodwill is performed at the reporting unit level. The valuation methods used in the quantitative fair value assessment included a discounted cash flow analysis which requires the Company’s management to make certain assumptions and estimates regarding industry trends and future profitability of the Company’s reporting units. If the fair value of a reporting unit exceeds the related carrying value, the reporting unit’s goodwill is considered not to be impaired and no further testing is performed. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. This valuation is affected by certain estimates including the Company’s future revenue growth rates, margins and discount rates. Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired. When performing a quantitative impairment assessment of the Company’s brand indefinite-lived intangible assets, the fair value of the Versace and the Jimmy Choo brands is estimated using a discounted cash flow analysis based on the "relief from royalty" method, assuming that a third party would be willing to pay a royalty in lieu of ownership for this intangible asset. This approach is dependent on many factors, including estimates of future growth, royalty rates, and discount rates. Actual future results may differ from these estimates. Impairment loss is recognized when the estimated fair value of the indefinite-lived brand intangible assets is less than its carrying amount.
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Other Indefinite-lived Intangible Assets | Goodwill and Other Indefinite-lived Intangible Assets The Company records indefinite-lived intangible assets based on fair value on the date of acquisition. Goodwill is recorded for the difference between the fair value of the purchase consideration over the fair value of the net identifiable tangible and intangible assets acquired. The brand intangible assets recorded in connection with the acquisitions of Versace and Jimmy Choo were determined to be indefinite-lived intangible assets, which are not subject to amortization. The Company performs an impairment assessment of goodwill, as well as the Versace and Jimmy Choo brand intangible assets on an annual basis, or whenever impairment indicators exist. In the absence of any impairment indicators, goodwill, the Versace brand and the Jimmy Choo brand are assessed for impairment during the fourth quarter of each fiscal year. Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business. The Company may assess its goodwill and its brand indefinite-lived intangible assets for impairment initially using a qualitative approach to determine whether it is more likely than not that the fair value of these assets is greater than their carrying value. When performing a qualitative test, the Company assesses various factors including industry and market conditions, macroeconomic conditions and performance of the Company’s businesses. If the results of the qualitative assessment indicate that it is more likely than not that the Company’s goodwill and other indefinite-lived intangible assets are impaired, a quantitative impairment analysis would be performed to determine if impairment is required. The Company may also elect to perform a quantitative analysis of goodwill and its indefinite-lived intangible assets initially rather than using a qualitative approach. The impairment testing for goodwill is performed at the reporting unit level. The valuation methods used in the quantitative fair value assessment included a discounted cash flow analysis which requires the Company’s management to make certain assumptions and estimates regarding industry trends and future profitability of the Company’s reporting units. If the fair value of a reporting unit exceeds the related carrying value, the reporting unit’s goodwill is considered not to be impaired and no further testing is performed. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. This valuation is affected by certain estimates including the Company’s future revenue growth rates, margins and discount rates. Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired. When performing a quantitative impairment assessment of the Company’s brand indefinite-lived intangible assets, the fair value of the Versace and the Jimmy Choo brands is estimated using a discounted cash flow analysis based on the "relief from royalty" method, assuming that a third party would be willing to pay a royalty in lieu of ownership for this intangible asset. This approach is dependent on many factors, including estimates of future growth, royalty rates, and discount rates. Actual future results may differ from these estimates. Impairment loss is recognized when the estimated fair value of the indefinite-lived brand intangible assets is less than its carrying amount.
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Insurance | Insurance The Company uses a combination of insurance and self-insurance for losses related to a number of risks, including workers’ compensation and employee-related health care benefits. The Company also maintains stop-loss coverage with third-party insurers to limit its exposure arising from claims. Self-insurance claims filed and claims incurred but not reported are accrued based upon management’s estimates of the discounted cost for self-insured claims incurred using actuarial assumptions, historical loss experience, actual payroll and other data. Although the Company believes that it can reasonably estimate losses related to these claims, actual results could differ from these estimates. The Company also maintains other types of customary business insurance policies, including business interruption insurance. Insurance recoveries represent gain contingencies and are recorded upon actual settlement with the insurance carrier.
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Share-based Compensation | Share-based Compensation The Company grants share-based awards to certain employees and directors of the Company. The grant date fair value of share options is calculated using the Black-Scholes option pricing model. The Company uses its own historical experience in determining the expected holding period and volatility of its time-based share option awards. The risk-free interest rate is derived from the zero-coupon United States (“U.S.”) Treasury Strips yield curve based on the grant’s estimated holding period. Determining the grant date fair value of share-based awards requires considerable judgment, including estimating expected volatility, expected term and risk-free rate. If factors change and the Company employs different assumptions, the fair value of future awards and the resulting share-based compensation expense may differ significantly from what the Company has estimated in the past. The closing market price of the Company’s shares on the date of grant is used to determine the grant date fair value of restricted shares, time-based restricted shares units (“RSU”s) and performance-based RSUs. These fair values are recognized as expense over the requisite service period, net of estimated forfeitures, based on expected attainment of pre-established performance goals for performance grants, or the passage of time for those grants which have only time-based vesting requirements.
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Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial statements of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. The Company’s functional currency is the United States Dollar (“USD”) for Capri and its United States based subsidiaries. Assets and liabilities are translated using period-end exchange rates, while revenues and expenses are translated using average exchange rates over the reporting period. The resulting translation adjustments are recorded separately in shareholders’ equity as a component of accumulated other comprehensive (loss) income. Foreign currency income and losses resulting from the re-measuring of transactions denominated in a currency other than the functional currency of a particular entity are included in foreign currency loss (gain) on the Company’s consolidated statements of operations and comprehensive income.
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Derivative Financial Instruments and Net Investment Hedges | Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain 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. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive (loss) income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive (loss) income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only 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. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between its U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12 and has designated these contracts as net investment hedges. The net gain or (loss) on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive (loss) income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest expense in the Company’s statement of operations and comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated.
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Income Taxes | Income Taxes Deferred income tax assets and liabilities have been provided for temporary differences between the tax bases and financial reporting bases of the Company’s assets and liabilities using the tax rates and laws in effect for the periods in which the differences are expected to reverse. The Company periodically assesses the realizability of deferred tax assets and the adequacy of deferred tax liabilities, based on the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. Realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction. The Company periodically reviews the recoverability of its deferred tax assets and provides valuation allowances, as deemed necessary, to reduce deferred tax assets to amounts that more-likely-than-not will be realized. The Company’s management considers many factors when assessing the likelihood of future realization of deferred tax assets, including recent earnings results within various taxing jurisdictions, expectations of future taxable income, the carryforward periods remaining and other factors. Changes in the required valuation allowance are recorded in income in the period such determination is made. Deferred tax assets could be reduced in the future if the Company’s estimates of taxable income during the carryforward period are significantly reduced or alternative tax strategies are no longer viable. The Company recognizes the impact of an uncertain income tax position taken on its income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will be recognized if it has less than a 50% likelihood of being sustained. The tax positions are analyzed periodically (at least quarterly) and adjustments are made as events occur that warrant adjustments for those positions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense.
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Rent Expense, Deferred Rent and Landlord Construction Allowances | Leases On March 31, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet for all leases, except certain short-term leases. The Company adopted the new standard recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods. The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through May 2024. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores under its Michael Kors Retail Fleet Optimization Plan, as defined in Note 11. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease. The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options, generally for the same period as the initial term of the lease. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term. The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on location sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants.
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Debt Issuance Costs and Unamortized Discounts | Debt Issuance Costs and Unamortized DiscountsThe Company defers debt issuance costs directly associated with acquiring third party financing. These debt issuance costs and any discounts on issued debt are amortized on a straight-line basis, which approximates the effective interest method, as interest expense over the term of the related indebtedness. Deferred financing fees associated with the Company’s revolving credit facilities are recorded within prepaid expenses and other current assets. Deferred financing fees and unamortized discounts associated with the Company’s other borrowings are recorded as an offset to long-term debt in the Company’s consolidated balance sheets. See Note 12 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Share | Net (Loss) Income per Share The Company’s basic net (loss) income per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Diluted net loss per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units ("RSUs"), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included in diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method.
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Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Lease Accounting On March 31, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet for all leases, except certain short-term leases. In evaluating the impact of ASU 2016-02, the Company considered guidance provided by several additional ASUs issued by the FASB, including ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842” in January 2018, ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” both issued in July 2018, and ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors” issued in December 2018. In connection with its implementation of ASU 2016-02, the Company adopted the package of three practical expedients, allowing it to carry forward its previous lease classification and embedded lease evaluations and not to reassess initial direct costs as of the date of adoption. The Company also adopted the practical expedient allowing it to combine lease and non-lease components for its real estate leases. Lastly, the Company adopted the practical expedient provided by ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” allowing it to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating the comparative prior year periods. The Company’s existing lease obligations, which relate to stores, corporate locations, warehouses, and equipment, are subject to the new standard and resulted in recording of lease liabilities and right-of-use assets for operating leases on the Company’s consolidated balance sheet. The below table details the balance sheet adjustments recorded on March 31, 2019 in connection with the Company’s adoption of ASU 2016-02 (in millions):
(1)Represents the reclassification of rent paid in advance to current operating lease liabilities. (2)Represents the recognition of operating lease right-of-use assets, reflecting the reclassifications of deferred rent, sublease liabilities, tenant allowances, and lease rights. This balance also reflects the initial impairments of the operating lease right-of-use assets recorded through retained earnings, as described below. (3)Represents the reclassifications of lease rights for leases recorded in conjunction with the Company’s acquisitions to operating lease right-of-use assets. (4)Represents the initial impairment recognized through retained earnings for certain underperforming retail store locations for which property and equipment were previously impaired, net of associated deferred taxes. (5)Represents the recognition of current and non-current lease liabilities for fixed payments associated with the Company’s operating leases. (6)Represents the reclassification of $54 million in sublease liabilities, primarily related to Michael Kors retail stores closed under the Michael Kors Retail Fleet Optimization Plan as defined in Note 10, as well as the reclassification of $18 million of deferred rent and tenant allowances to operating lease right-of-use assets. (7)Represents the reclassification of noncurrent deferred rent and tenant improvement allowances to operating lease right-of-use assets. See Note 4 for additional disclosures related to the Company’s lease accounting policy. Recently Issued Accounting Pronouncements The Company has considered all new accounting pronouncements and have concluded that there are no new pronouncements that are expected to have a material impact on our results of operations, financial condition or cash flows based on current information. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which amends the guidance on measuring credit losses for certain financial assets measured at amortized cost, including trade receivables. The FASB has subsequently issued several updates to the standard, providing additional guidance on certain topics covered by the standard. This update requires entities to recognize an allowance for credit losses using a forward-looking expected loss impairment model, taking into consideration historical experience, current conditions, and supportable forecasts that impact collectibility. ASU No. 2016-13 is effective for the Company beginning in its Fiscal 2021. The adoption of this update is not expected to have a material impact on the Company's consolidated financial statements.
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Receivables | Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ 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 revenues.The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition 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. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Sales Reserves | The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 28, 2020, March 30, 2019, and March 31, 2018 (in millions):
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Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share | The components of the calculation of basic net (loss) income per ordinary share and diluted net loss per ordinary share are as follows (in millions, except share and per share data):
(1)Basic and diluted net (loss) income per share are calculated using unrounded numbers.
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Schedule of Components of the Cumulative Adjustment for ASC 606 | The below table details the balance sheet adjustments recorded on March 31, 2019 in connection with the Company’s adoption of ASU 2016-02 (in millions):
(1)Represents the reclassification of rent paid in advance to current operating lease liabilities. (2)Represents the recognition of operating lease right-of-use assets, reflecting the reclassifications of deferred rent, sublease liabilities, tenant allowances, and lease rights. This balance also reflects the initial impairments of the operating lease right-of-use assets recorded through retained earnings, as described below. (3)Represents the reclassifications of lease rights for leases recorded in conjunction with the Company’s acquisitions to operating lease right-of-use assets. (4)Represents the initial impairment recognized through retained earnings for certain underperforming retail store locations for which property and equipment were previously impaired, net of associated deferred taxes. (5)Represents the recognition of current and non-current lease liabilities for fixed payments associated with the Company’s operating leases. (6)Represents the reclassification of $54 million in sublease liabilities, primarily related to Michael Kors retail stores closed under the Michael Kors Retail Fleet Optimization Plan as defined in Note 10, as well as the reclassification of $18 million of deferred rent and tenant allowances to operating lease right-of-use assets. (7)Represents the reclassification of noncurrent deferred rent and tenant improvement allowances to operating lease right-of-use assets.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Segment Revenues | As of March 28, 2020, contractually guaranteed minimum fees from our license agreements expected to be recognized as revenue during future periods were as follows (in millions):
The following table presents the Company’s segment revenues disaggregated by geographic location (in millions):
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Leases (Tables) |
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Balance Sheet Information Related to Leases | The following table presents the Company’s supplemental balance sheet information related to leases (in millions):
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Schedule of Net Lease Costs and Supplemental Cash Flow Information | The components of net lease costs for the fiscal year ended March 28, 2020 were as follows (in millions):
(1)The Company elected to account for rent concessions negotiated in connection with COVID-19 as if it were contemplated as part of the existing contract and these concessions are recorded as variable lease expense. There is an immaterial impact from these concession for the fiscal year ended March 28, 2020. The following table presents the Company’s supplemental cash flow information related to leases (in millions):
The following tables summarizes the weighted average remaining lease term and weighted average discount rate related to the Company’s operating lease right-of-use assets and lease liabilities recorded on the balance sheet as of March 28, 2020:
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Schedule of Contractually Guaranteed Minimum Fees | At March 28, 2020, the future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in millions):
At March 28, 2020, the future minimum sublease income under the terms of these noncancelable operating lease agreements are as follows (in millions):
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro-Forma Results of Operations | The following table summarizes the unaudited pro-forma consolidated results of operations for the fiscal years ended March 30, 2019 and March 31, 2018 as if the acquisition had occurred on April 2, 2017, the beginning of Fiscal 2018 (in millions):
The following table summarizes the unaudited pro-forma consolidated results of operations for the fiscal years ended March 31, 2018 and April 1, 2017 as if the acquisition had occurred on April 3, 2016, the beginning of Fiscal 2017 (in millions):
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Receivables, net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables, net consist of (in millions):
(1)As of March 28, 2020 and March 30, 2019, $80 million and $317 million, respectively, of trade receivables were insured.
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Property and Equipment, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and equipment, net, consists of (in millions):
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Intangible Assets and Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values of Finite-Lived Intangible Assets | The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
________________________________ (1)The March 30, 2019 balance includes certain lease rights that were reclassified to the operating lease right-of-use asset as part of the adoption of ASU 2016-02 in Fiscal 2020. Includes $2 million and $5 million, respectively, of impairment charges recorded during Fiscal 2019 and Fiscal 2018, primarily in connection with underperforming full-price Michael Kors retail stores. See Note 14 for additional information. (2)The year-over-year change in carrying value reflects an impairment charge of $180 million and foreign currency translation of $25 million. The Company did not incur any impairment charges in prior periods. (3)The year-over-year change in carrying value relates to foreign currency translation.
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Carrying Values of Indefinite-Lived Intangible Assets | The following table details the carrying values of the Company’s intangible assets other than goodwill (in millions):
________________________________ (1)The March 30, 2019 balance includes certain lease rights that were reclassified to the operating lease right-of-use asset as part of the adoption of ASU 2016-02 in Fiscal 2020. Includes $2 million and $5 million, respectively, of impairment charges recorded during Fiscal 2019 and Fiscal 2018, primarily in connection with underperforming full-price Michael Kors retail stores. See Note 14 for additional information. (2)The year-over-year change in carrying value reflects an impairment charge of $180 million and foreign currency translation of $25 million. The Company did not incur any impairment charges in prior periods. (3)The year-over-year change in carrying value relates to foreign currency translation.
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Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows (in millions):
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Changes in Goodwill for Reportable Segments | The following table details the changes in goodwill for each of the Company’s reportable segments (in millions):
(1)See Note 5 for additional information. (2)The Company recorded impairment charges of $171 million related to the Jimmy Choo retail and licensing reporting units. The Company did not incur any goodwill impairment charges in prior periods.
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Current Assets and Current Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in millions):
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Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions):
(1)The accrued rent balance relates to variable lease payments. (2)In connection with the adoption of ASU 2016-02, certain lease related assets and liabilities were reflected within operating lease right-of-use assets and liabilities as of March 28, 2020. See Note 2 and Note 4 for additional information.
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Restructuring and Other Charges (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The below table presents a rollforward of the Company’s remaining restructuring liability related to this plan (in millions):
(1)Consists of the reclassification of sublease liabilities to an offset of the related operating lease right-of-use asset due to the adoption of ASC 842. See Note 2 and Note 4 for further information.
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Debt Obligations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligations | The following table presents the Company’s debt obligations (in millions):
(1)During Fiscal 2019, the Company repaid the remaining $59 million of borrowings outstanding under the previous Term Loan Facility entered into in connection with the Jimmy Choo acquisition.
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy | All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions):
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Fair Value Measurement of Long-term Debt | The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions):
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Carrying Value and Fair Values of Impaired Long-Lived Assets | The following table details the carrying values and fair values of the Company’s assets that have been impaired (in millions):
Please refer to Note 8 and Note 9 for additional information.
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Derivative Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets | The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of March 28, 2020 and March 30, 2019 (in millions):
(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. (3)Recorded within other assets in the Company’s audited consolidated balance sheets. (4)Primarily includes undesignated hedges of foreign currency denominated intercompany balances and inventory purchases.
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Schedule of Derivative Instruments on The Balance Sheets, Net Basis | However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of March 28, 2020 and March 30, 2019 would be as follows (in millions):
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Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the pre-tax impact of the gains and losses on the Company's designated forward foreign currency exchange contracts and net investment hedges (in millions):
The following tables summarize the impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for Fiscal 2020 and Fiscal 2019 (in millions):
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Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Components of Accumulated Other Comprehensive Loss, Net of Taxes | The following table details changes in the components of accumulated other comprehensive income (loss) ("AOCI"), net of taxes for Fiscal 2020, Fiscal 2019 and Fiscal 2018 (in millions):
(1)Foreign currency translation gains and losses include net gains of $6 million for both Fiscal 2020 and Fiscal 2019, on intra-entity transactions that are of a long-term investment nature. Foreign currency translation losses for Fiscal 2020 include a $60 million translation loss relating to the Jimmy Choo business, a $10 million translation loss relating to the Versace business and a $219 million gain, net of taxes of $45 million relating to the Company’s net investment hedges. Foreign currency translation losses for Fiscal 2019 includes an $105 million translation loss relating to the Jimmy Choo business, a $33 million translation loss relating to the Versace business and a $39 million gain, net of taxes of $8 million relating to the Company's net investment hedges. (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. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2020 was immaterial. Other comprehensive income (loss) before reclassifications related to derivative instruments for Fiscal 2019 and Fiscal 2018 is net of a tax benefits of $2 million and $3 million, respectively. All tax effects were not material for the periods presented.
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option Activity and Information about Options Outstanding | The following table summarizes the share options activity during Fiscal 2020, and information about options outstanding at March 28, 2020:
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Assumptions Used to Estimate Fair Value of Options | The following table represents assumptions used to estimate the fair value of options:
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Restricted Share Unit Activity | The following table summarizes the RSU activity during Fiscal 2020:
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes compensation expense attributable to share-based compensation for Fiscal 2020, Fiscal 2019 and Fiscal 2018 (in millions):
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Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Provision for Income Taxes | (Loss) income before provision for income taxes consisted of the following (in millions):
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Provision for Income Taxes | The provision for income taxes was as follows (in millions):
(1)Includes an $18 million provision related to the U.S. Tax Act one time revaluation of deferred tax assets. (2)Includes a $25 million current tax provision and equal deferred tax benefit related to the U.S. Tax Act impact to business interest disallowance provisions. (3)Includes a $35 million current tax benefit due to a release of income tax reserves in the U.S.
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Significant Differences Between the Statutory Tax Rates and Company's Effective Tax Rate | The Company’s provision for income taxes for the years ended March 28, 2020, March 30, 2019 and March 31, 2018 was different from the amount computed by applying the statutory U.K. income tax rate to the underlying (loss) income from operations before income taxes as a result of the following:
(1)Includes an $18 million expense related to the re-measurement of certain net deferred tax assets in connection with U.S. Tax Act. (2)Mainly attributable to the United States statutory federal income tax rate change from a blended rate for Fiscal 2018 of 31.54% to 21% in Fiscal 2019. (3)Includes an $11 million provision related to a United Kingdom capital loss. (4)Mainly attributable to pre-tax loss position in Fiscal 2020 (5)Mainly attributable to valuation allowances established on a portion of Non-US deferred tax assets (6)Attributable to the Jimmy Choo brand intangible that was impaired in Fiscal 2020
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Significant Components of Deferred Tax Assets (Liabilities) | Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):
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Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2020, Fiscal 2019 and Fiscal 2018, are presented below (in millions):
(1)Primarily relates to the Versace acquisition. (2)Primarily relates to releases of North American and European tax reserves (3)Primarily relates to US audit effective settlement
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Segment Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Performance Information of Reportable Segments | The following table presents the key performance information of the Company’s reportable segments (in millions):
(1)Impairment of assets during Fiscal 2020 includes $434 million, $187 million and $87 million of impairment charges related to the Jimmy Choo, Michael Kors and Versace reportable segments, respectively. The impairment charges during Fiscal 2019 and Fiscal 2018 were primarily related to the Michael Kors reportable segment. (2)COVID-19 related charges primarily include additional inventory reserves and bad debt expense of $92 million and $25 million, respectively, recorded within costs of goods sold and selling, general and administrative expenses in the consolidated statements of operations.
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Depreciation and Amortization Expense for Each Segment | Depreciation and amortization expense for each segment are as follows (in millions):
(1)Excluded from the above table are impairment charges, which are detailed in the below table and in Note 8, Note 9 and Note 14.
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Total Revenue (as Recognized Based on Country of Origin) | Total revenue (based on country of origin) and long-lived assets by geographic location are as follows (in millions):
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Long-Lived Assets by Geographic Location |
(1)Long-lived assets as of March 28, 2020 reflect operating lease right-of-use assets resulting from the Company’s adoption of ASU 2016-02. See Note 2 for additional information. (2)Net revenues earned in the U.S. during Fiscal 2020, Fiscal 2019, and Fiscal 2018 were $2.898 billion, $2.972 billion and $2.818 billion, respectively. Long-lived assets located in the U.S. as of March 28, 2020 and March 30, 2019 were $1.060 billion and $296 million, respectively.
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Net Revenues by Major Product Category | Total revenue by major product category are as follows (in millions):
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Selected Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Quarterly Results | The following table summarizes the Fiscal 2020 and Fiscal 2019 quarterly results (dollars in millions):
(1)All fiscal quarters presented contain 13 weeks. (2)Fiscal quarter ended June 29, 2019 includes impairment charges of $97 million, other costs related to acquisitions of $12 million and restructuring charges of $1 million. (3)Fiscal quarter ended September 28, 2019 includes impairment charges of $104 million and other costs related to acquisitions of $6 million. (4)Fiscal quarter ended December 28, 2019 includes impairment charges of $19 million, other costs related to acquisitions of $8 million and restructuring charges of $5 million. (5)Fiscal quarter ended March 28, 2020 includes impairment charges of $488 million and other costs related to acquisitions of $8 million. (6)Fiscal quarter ended June 30, 2018 includes impairment charges of $4 million, other costs related to acquisitions of $7 million and restructuring charges of $4 million. (7)Fiscal quarter ended September 29, 2018 includes impairment charges of $7 million, other costs related to acquisitions of $16 million and restructuring charges of $2 million. (8)Fiscal quarter ended December 29, 2018 includes impairment charges of $6 million, other costs related to acquisitions of $12 million and restructuring charges of $8 million. (9)Fiscal quarter ended March 30, 2019 includes impairment charges of $4 million, other costs related to acquisitions of $44 million and restructuring charges of $31 million.
|
Business and Basis of Presentation (Details) - segment |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 28, 2020 |
Mar. 28, 2020 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 3 | 3 |
Summary of Significant Accounting Policies - Activity and Balances of Sales Reserves (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Amounts Charged to Revenue | $ 29 | $ 4 | $ 8 |
Retail | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance Beginning of Year | 15 | 12 | 7 |
Amounts Charged to Revenue | 231 | 226 | 161 |
Write-offs Against Reserves | (234) | (223) | (156) |
Balance at Year End | 12 | 15 | 12 |
Wholesale | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance Beginning of Year | 112 | 109 | 97 |
Amounts Charged to Revenue | 266 | 262 | 258 |
Write-offs Against Reserves | (224) | (259) | (246) |
Balance at Year End | $ 154 | $ 112 | $ 109 |
Summary of Significant Accounting Policies - Additional Information (Details) € in Millions, £ in Millions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 28, 2020
USD ($)
|
Mar. 28, 2020
USD ($)
shares
|
Mar. 30, 2019
USD ($)
shares
|
Mar. 31, 2018
USD ($)
shares
|
Sep. 24, 2018
USD ($)
|
Sep. 24, 2018
EUR (€)
|
Jul. 25, 2017
USD ($)
|
Jul. 25, 2017
GBP (£)
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Advertising and marketing expense | $ 201,000,000 | $ 158,000,000 | $ 167,000,000 | |||||
Cooperative advertising expenses | 7,000,000 | 8,000,000 | 6,000,000 | |||||
Cost of goods sold | 2,280,000,000 | 2,058,000,000 | 1,860,000,000 | |||||
Credit card receivables | $ 4,000,000 | 4,000,000 | 24,000,000 | |||||
Raw materials inventory | 27,000,000 | 27,000,000 | 25,000,000 | |||||
Impairment charges | 171,000,000 | |||||||
Notional Amounts | 205,000,000 | 205,000,000 | 2,599,000,000 | |||||
Derivative gains (losses) | (77,000,000) | 5,000,000 | ||||||
Settlement of a net investment hedge | $ 296,000,000 | $ 298,000,000 | $ 11,000,000 | $ 0 | ||||
Anti-dilutive securities excluded from computation of earning per share (in shares) | shares | 3,752,560 | 1,409,415 | 1,662,889 | |||||
Jimmy Choo | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Impairment charges | $ 171,000,000 | $ 0 | $ 0 | |||||
Intangible asset impairment | $ 180,000,000 | 0 | 0 | |||||
MK (Panama) Holdings, S.A. | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership interest | 75.00% | 75.00% | ||||||
Jimmy Choo EMEA Joint Ventures, JC Industry S.r.L. | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership interest | 33.00% | 33.00% | ||||||
JC Gulf Trading LLC | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership interest | 49.00% | 49.00% | ||||||
J. Choo Russia J.V. Limited | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership interest | 50.00% | 50.00% | ||||||
Versace Australia PTY Limited | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership interest | 70.00% | 70.00% | ||||||
Not Designated as Hedging Instrument | Forward foreign currency exchange contracts | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Notional Amounts | $ 0 | $ 0 | 199,000,000 | |||||
Not Designated as Hedging Instrument | Gianni Versace S.r.l. | Forward foreign currency exchange contracts | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Notional Amounts | $ 2,001,000,000.000 | € 1,680 | ||||||
Not Designated as Hedging Instrument | Jimmy Choo | Forward foreign currency exchange contracts | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Notional Amounts | $ 1,469,000,000 | £ 1,115 | ||||||
Trademarks | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Amortization period | 20 years | |||||||
Software development | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Minimum | Customer relationships | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Amortization period | 5 years | |||||||
Minimum | Equipment, furniture and fixtures | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Minimum | Computer hardware and software | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Minimum | In-store shops | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Forward contracts term, maximum | 12 months | |||||||
Lessee, operating lease, term of contract | 10 years | 10 years | ||||||
Maximum | Customer relationships | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Amortization period | 18 years | |||||||
Maximum | Equipment, furniture and fixtures | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 7 years | |||||||
Maximum | Computer hardware and software | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Maximum | In-store shops | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Shipping and handling | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cost of goods sold | $ 157,000,000 | $ 132,000,000 | $ 129,000,000 |
Summary of Significant Accounting Policies - Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Numerator: | |||||||||||
Net (loss) income attributable to Capri | $ (551) | $ 210 | $ 73 | $ 45 | $ 19 | $ 200 | $ 138 | $ 186 | $ (223) | $ 543 | $ 592 |
Denominator: | |||||||||||
Basic weighted average shares (in shares) | 149,380,121 | 150,826,196 | 151,602,502 | 151,049,572 | 150,801,608 | 149,183,049 | 149,575,112 | 149,502,101 | 150,714,598 | 149,765,468 | 152,283,586 |
Weighted average dilutive share equivalents: | |||||||||||
Share options and restricted shares/units, and performance restricted share units (in shares) | 0 | 1,848,882 | 2,819,299 | ||||||||
Diluted weighted average shares (in shares) | 149,380,121 | 152,154,372 | 152,576,283 | 152,334,153 | 152,083,632 | 150,268,424 | 151,705,685 | 152,399,655 | 150,714,598 | 151,614,350 | 155,102,885 |
Basic net (loss) income per share (in dollars per share) | $ (1.48) | $ 3.62 | $ 3.89 | ||||||||
Diluted net (loss) income per share (in dollars per share) | $ (1.48) | $ 3.58 | $ 3.82 |
Summary of Significant Accounting Policies - Adjustments from the Adoption of ASC 842 (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 31, 2019 |
Mar. 30, 2019 |
---|---|---|---|
Assets | |||
Prepaid expenses and other current assets | $ 167 | $ 198 | $ 221 |
Operating lease right-of-use assets | 1,625 | 1,876 | |
Intangible assets, net | 1,986 | 2,253 | 2,293 |
Deferred tax assets | 225 | 150 | 112 |
Liabilities | |||
Current portion of operating lease liabilities | 430 | 386 | |
Accrued expenses and other current liabilities | 241 | 302 | 374 |
Long-term portion of operating lease liabilities | 1,828 | ||
Deferred Rent | 132 | ||
Deferred tax liabilities | 465 | 431 | 438 |
Shareholders’ Equity | |||
Retained earnings | $ 4,332 | 4,555 | 4,707 |
Retail Fleet Optimization Plan | |||
Shareholders’ Equity | |||
Sublease liabilities | 54 | ||
Current deferred rent and tenant improvements | 18 | ||
Previously Reported | |||
Assets | |||
Prepaid expenses and other current assets | 221 | ||
Intangible assets, net | 2,293 | ||
Deferred tax assets | 112 | ||
Liabilities | |||
Accrued expenses and other current liabilities | 374 | ||
Deferred Rent | 132 | ||
Deferred tax liabilities | 438 | ||
Shareholders’ Equity | |||
Retained earnings | 4,707 | ||
Restatement Adjustment | ASU 2016-02 | |||
Assets | |||
Prepaid expenses and other current assets | (23) | ||
Operating lease right-of-use assets | 1,876 | ||
Intangible assets, net | (40) | ||
Deferred tax assets | 38 | ||
Liabilities | |||
Current portion of operating lease liabilities | 386 | ||
Accrued expenses and other current liabilities | (72) | ||
Long-term portion of operating lease liabilities | 1,828 | ||
Deferred Rent | (132) | ||
Deferred tax liabilities | (7) | ||
Shareholders’ Equity | |||
Retained earnings | $ 152 | $ (152) |
Revenue Recognition - Retail Narrative (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Contract With Customer, Asset And Liability [Line Items] | ||
Contract with customer liability | $ 11 | $ 13 |
Return liabilities | 37 | 35 |
Gift Cards | ||
Contract With Customer, Asset And Liability [Line Items] | ||
Contract with customer liability | 11 | 13 |
Deferred loyalty program liabilities | ||
Contract With Customer, Asset And Liability [Line Items] | ||
Contract with customer liability | $ 2 | $ 3 |
Revenue Recognition - Contractually Guaranteed Minimum Fees from License Agreements (Details) $ in Millions |
Mar. 28, 2020
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Fiscal 2021 | $ 27 |
Fiscal 2022 | 26 |
Fiscal 2023 | 20 |
Fiscal 2024 | 10 |
Fiscal 2025 | 6 |
Fiscal 2026 and thereafter | 29 |
Total | $ 118 |
Revenue Recognition - Sales Returns Narrative (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Return liabilities | $ 37 | $ 35 |
Right to recover returned product | $ 14 | $ 12 |
Revenue Recognition - Contract Balances Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
|
Business Acquisition [Line Items] | |||
Contract with customer liability | $ 22,000,000 | $ 31,000,000 | |
Gift card breakage recognized to revenue | $ 5,000,000 | ||
Revenue recognized during period | 20,000,000 | 16,000,000 | |
Contract assets | $ 0 | $ 0 |
Revenue Recognition - Schedule of Revenue Disaggregation (Details) - USD ($) $ in Millions |
3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | $ 1,192 | $ 1,571 | $ 1,442 | $ 1,346 | $ 1,344 | $ 1,438 | $ 1,253 | $ 1,203 | $ 5,551 | $ 5,238 | $ 4,719 | |
The Americas | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 3,115 | 3,182 | 3,033 | |||||||||
EMEA | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 1,523 | 1,279 | 1,093 | |||||||||
Asia | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 913 | 777 | 593 | |||||||||
Gianni Versace S.r.l. | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 843 | 137 | 0 | |||||||||
Gianni Versace S.r.l. | The Americas | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 186 | 22 | 0 | |||||||||
Gianni Versace S.r.l. | EMEA | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 420 | 66 | 0 | |||||||||
Gianni Versace S.r.l. | Asia | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 237 | 49 | 0 | |||||||||
Jimmy Choo | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | $ 223 | 555 | 590 | 223 | ||||||||
Jimmy Choo | The Americas | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 107 | 96 | 37 | |||||||||
Jimmy Choo | EMEA | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 282 | 321 | 123 | |||||||||
Jimmy Choo | Asia | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 166 | 173 | 63 | |||||||||
Michael Kors | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 4,153 | 4,511 | 4,496 | |||||||||
Michael Kors | The Americas | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 2,822 | 3,064 | 2,996 | |||||||||
Michael Kors | EMEA | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | 821 | 892 | 970 | |||||||||
Michael Kors | Asia | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue | $ 510 | $ 555 | $ 530 |
Leases - Narrative (Details) $ in Millions |
Mar. 28, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
Future payment obligations of lease agreements, not yet commenced | $ 13 |
Leases - Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 31, 2019 |
---|---|---|
Assets | ||
Operating lease right-of-use assets | $ 1,625 | $ 1,876 |
Liabilities | ||
Short-term operating lease liabilities | 430 | $ 386 |
Long-term operating lease liabilities | $ 1,758 |
Leases - Comprehensive Income Net Lease Costs (Details) $ in Millions |
12 Months Ended |
---|---|
Mar. 28, 2020
USD ($)
| |
Leases [Abstract] | |
Operating lease cost | $ 449 |
Short-term lease cost | 18 |
Variable lease cost (1) | 155 |
Sublease income | (6) |
Total lease cost | $ 616 |
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Millions |
12 Months Ended |
---|---|
Mar. 28, 2020
USD ($)
| |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used in operating leases | $ 495 |
Non-cash transactions: | |
Lease assets obtained in exchange for new lease liabilities | $ 428 |
Leases - Operating Lease Information (Details) |
Mar. 28, 2020 |
---|---|
Operating leases: | |
Weighted average remaining lease term (years) | 6 years 7 months 6 days |
Weighted average discount rate | 2.90% |
Leases - Schedule of Contractually Guaranteed Minimum Fees (Details) $ in Millions |
Mar. 28, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
Fiscal 2021 | $ 489 |
Fiscal 2022 | 432 |
Fiscal 2023 | 369 |
Fiscal 2024 | 312 |
Fiscal 2025 | 239 |
Thereafter | 566 |
Total lease payments | 2,407 |
Less: interest | (219) |
Total lease liabilities | $ 2,188 |
Leases - Future Minimum Sublease Income (Details) $ in Millions |
Mar. 28, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
Fiscal 2021 | $ 6 |
Fiscal 2022 | 5 |
Fiscal 2023 | 5 |
Fiscal 2024 | 4 |
Fiscal 2025 | 4 |
Thereafter | 12 |
Total sublease income | $ 36 |
Acquisitions - Additional Information (Details) € in Millions, shares in Millions |
2 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
shares
|
Dec. 31, 2018
EUR (€)
shares
|
Nov. 01, 2017
USD ($)
|
Feb. 28, 2019
USD ($)
|
Mar. 28, 2020
USD ($)
|
Dec. 28, 2019
USD ($)
|
Sep. 28, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
|
Mar. 30, 2019
USD ($)
|
Dec. 29, 2018
USD ($)
|
Sep. 29, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 28, 2020
USD ($)
|
Mar. 30, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 21, 2018
USD ($)
|
Nov. 01, 2017
£ / shares
|
Nov. 01, 2017
USD ($)
|
|
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | $ 1,488,000,000 | $ 1,659,000,000 | $ 848,000,000 | $ 1,488,000,000 | $ 1,659,000,000 | $ 848,000,000 | |||||||||||||
Total revenue | 1,192,000,000 | $ 1,571,000,000 | $ 1,442,000,000 | $ 1,346,000,000 | 1,344,000,000 | $ 1,438,000,000 | $ 1,253,000,000 | $ 1,203,000,000 | 5,551,000,000 | 5,238,000,000 | 4,719,000,000 | ||||||||
Measurement period adjustment | 26,000,000 | ||||||||||||||||||
Net (loss) income attributable to Capri | (551,000,000) | $ 210,000,000 | 73,000,000 | 45,000,000 | 19,000,000 | $ 200,000,000 | $ 138,000,000 | $ 186,000,000 | (223,000,000) | 543,000,000 | 592,000,000 | ||||||||
Acquisition-related costs | $ 6,000,000 | $ 12,000,000 | |||||||||||||||||
Acquisitions | 11,000,000 | 878,000,000 | |||||||||||||||||
Term Loan Facility | Unsecured Debt | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Aggregate principal amount | $ 1,600,000,000 | $ 1,000,000,000.0 | |||||||||||||||||
Gianni Versace S.r.l. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total transaction value in a business acquisition | $ 2,005,000,000.000 | € 1,753 | |||||||||||||||||
Number of shares from acquisition (in shares) | shares | 2.4 | 2.4 | |||||||||||||||||
Total revenue | $ 137,000,000 | ||||||||||||||||||
Measurement period adjustment | 26,000,000 | ||||||||||||||||||
Net (loss) income attributable to Capri | $ 12,000,000 | ||||||||||||||||||
Cash paid for pre-existing debt | € | € 90 | ||||||||||||||||||
Acquisition-related costs | 41,000,000 | ||||||||||||||||||
Jimmy Choo | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquisition-related costs | 41,000,000 | ||||||||||||||||||
Jimmy Choo | Subsidiaries | Michael Kors Bidco | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total transaction value in a business acquisition | $ 1,447,000,000 | ||||||||||||||||||
Purchase price per share (in gbp per share) | £ / shares | £ 2.30 | ||||||||||||||||||
Jimmy Choo | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | 487,000,000 | $ 678,000,000 | 728,000,000 | 487,000,000 | 678,000,000 | 728,000,000 | |||||||||||||
Total revenue | 223,000,000 | 555,000,000 | 590,000,000 | $ 223,000,000 | |||||||||||||||
Measurement period adjustment | 0 | ||||||||||||||||||
Net (loss) income attributable to Capri | $ (15,000,000) | ||||||||||||||||||
Acquisitions | 11,000,000 | $ 0 | |||||||||||||||||
Jimmy Choo | Alberto Gozzi S.r.L. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | $ 11,000,000 | $ 11,000,000 |
Acquisitions - Pro-Forma Consolidated Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Apr. 01, 2017 |
|
Gianni Versace S.r.l. | |||
Business Acquisition [Line Items] | |||
Pro-forma total revenue | $ 5,983 | $ 5,473 | |
Pro-forma net income | $ 579 | $ 526 | |
Pro-forma net income per ordinary share attributable to Capri: | |||
Basic (in dollars per share) | $ 3.82 | $ 3.40 | |
Diluted (in dollars per share) | $ 3.78 | $ 3.34 | |
Jimmy Choo | |||
Business Acquisition [Line Items] | |||
Pro-forma total revenue | $ 5,012 | $ 4,985 | |
Pro-forma net income | $ 623 | $ 554 | |
Pro-forma net income per ordinary share attributable to Capri: | |||
Basic (in dollars per share) | $ 4.09 | $ 3.34 | |
Diluted (in dollars per share) | $ 4.02 | $ 3.29 |
Receivables, net - Schedule of Receivables (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 432 | $ 459 |
Receivables due from licensees | 14 | 23 |
Receivables, gross | 446 | 482 |
Less: allowances | (138) | (99) |
Receivables, net | 308 | 383 |
Credit risk assumed by insured | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 80 | $ 317 |
Receivables, net - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Business Acquisition [Line Items] | |||
Allowance for doubtful accounts | $ 39 | $ 18 | |
Provisions for bad debt | 29 | $ 4 | $ 8 |
Gianni Versace S.r.l. | |||
Business Acquisition [Line Items] | |||
Allowance for doubtful accounts | $ 11 |
Concentration of Credit Risk, Major Customers and Suppliers (Details) - Finished goods - Supplier Concentration Risk |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Contractor | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 20.00% | 21.00% | 26.00% |
Agent | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 26.00% | 24.00% | 24.00% |
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 704 | $ 639 |
In-store shops | 236 | 270 |
Furniture and fixtures | 329 | 292 |
Computer equipment and software | 329 | 292 |
Equipment | 136 | 123 |
Building | 49 | 47 |
Land | 19 | 15 |
Property, plant and equipment, gross | 1,802 | 1,678 |
Less: accumulated depreciation and amortization | (1,310) | (1,115) |
Subtotal | 492 | 563 |
Construction-in-progress | 69 | 52 |
Property and equipment, net | $ 561 | $ 615 |
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization of property and equipment | $ 200 | $ 188 | $ 182 |
Impairment charges | 77 | $ 19 | $ 28 |
Retail Stores | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 11 | ||
Premier Retail Stores | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 66 |
Intangible Assets and Goodwill - Carrying Values of Intangible Assets (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 827,000,000 | $ 934,000,000 | ||
Accumulated Amortization | 132,000,000 | 143,000,000 | ||
Net | 695,000,000 | 791,000,000 | ||
Indefinite-lived intangible assets, Gross Carrying Amount | 1,471,000,000 | |||
Indefinite-lived intangible assets, Accumulated Amortization | 180,000,000 | |||
Indefinite-lived intangible assets, Net | 1,291,000,000 | 1,502,000,000 | ||
Total intangible assets, excluding goodwill, gross carrying amount | 2,298,000,000 | 2,436,000,000 | ||
Total intangible assets, excluding goodwill, Accumulated Amortization | 312,000,000 | |||
Intangible assets, net | 1,986,000,000 | 2,293,000,000 | $ 2,253,000,000 | |
Jimmy Choo | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets, Gross Carrying Amount | 547,000,000 | |||
Indefinite-lived intangible assets, Accumulated Amortization | 180,000,000 | |||
Indefinite-lived intangible assets, Net | 367,000,000 | 572,000,000 | ||
Intangible asset impairment, Accumulated Amortization | 180,000,000 | 0 | $ 0 | |
Foreign currency translation | 25,000,000 | |||
Gianni Versace S.r.l. | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets, Net | 924,000,000 | 930,000,000 | ||
Michael Kors | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset impairment, Accumulated Amortization | 2,000,000 | $ 5,000,000 | ||
Reacquired rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 400,000,000 | 400,000,000 | ||
Accumulated Amortization | 61,000,000 | 45,000,000 | ||
Net | 339,000,000 | 355,000,000 | ||
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 23,000,000 | 23,000,000 | ||
Accumulated Amortization | 20,000,000 | 19,000,000 | ||
Net | 3,000,000 | 4,000,000 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 404,000,000 | 415,000,000 | ||
Accumulated Amortization | 51,000,000 | 23,000,000 | ||
Net | 353,000,000 | 392,000,000 | ||
Lease rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 0 | 96,000,000 | ||
Accumulated Amortization | 0 | 56,000,000 | ||
Net | $ 0 | $ 40,000,000 |
Intangible Assets and Goodwill - Additional Information (Details) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 28, 2020
segment
|
Mar. 28, 2020
USD ($)
segment
|
Mar. 30, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Intangible Assets And Goodwill [Line Items] | ||||
Amortization expense | $ 49,000,000 | $ 37,000,000 | $ 26,000,000 | |
Number of reportable segments | segment | 3 | 3 | ||
Impairment charges | $ 171,000,000 | |||
Jimmy Choo | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Impairment charges | 171,000,000 | 0 | 0 | |
Intangible asset impairment | $ 180,000,000 | $ 0 | $ 0 | |
Trademarks | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Intangible asset, useful life | 20 years | |||
Weighted average useful life | 3 years | |||
Customer relationships | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Weighted average useful life | 13 years | |||
Customer relationships | Minimum | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Intangible asset, useful life | 5 years | |||
Customer relationships | Maximum | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Intangible asset, useful life | 18 years | |||
Reacquired rights | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Weighted average useful life | 21 years |
Intangible Assets and Goodwill - Estimated Amortization Expense (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2021 | $ 46 | |
Fiscal 2022 | 46 | |
Fiscal 2023 | 46 | |
Fiscal 2024 | 45 | |
Fiscal 2025 | 45 | |
Fiscal 2026 and thereafter | 467 | |
Net | $ 695 | $ 791 |
Intangible Assets and Goodwill - Changes in Goodwill for Reportable Segments (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,659,000,000 | $ 848,000,000 | |
Acquisition | 11,000,000 | 878,000,000 | |
Measurement period adjustment | 26,000,000 | ||
Impairment charges | (171,000,000) | ||
Foreign currency translation | (37,000,000) | (67,000,000) | |
Ending balance | 1,488,000,000 | 1,659,000,000 | $ 848,000,000 |
Impairment charges | 171,000,000 | ||
Gianni Versace S.r.l. | |||
Goodwill [Roll Forward] | |||
Beginning balance | 861,000,000 | 0 | |
Acquisition | 0 | 878,000,000 | |
Measurement period adjustment | 26,000,000 | ||
Impairment charges | 0 | ||
Foreign currency translation | (6,000,000) | (17,000,000) | |
Ending balance | 881,000,000 | 861,000,000 | 0 |
Impairment charges | 0 | ||
Jimmy Choo | |||
Goodwill [Roll Forward] | |||
Beginning balance | 678,000,000 | 728,000,000 | |
Acquisition | 11,000,000 | 0 | |
Measurement period adjustment | 0 | ||
Impairment charges | (171,000,000) | 0 | 0 |
Foreign currency translation | (31,000,000) | (50,000,000) | |
Ending balance | 487,000,000 | 678,000,000 | 728,000,000 |
Impairment charges | 171,000,000 | 0 | 0 |
Michael Kors | |||
Goodwill [Roll Forward] | |||
Beginning balance | 120,000,000 | 120,000,000 | |
Acquisition | 0 | 0 | |
Measurement period adjustment | 0 | ||
Impairment charges | 0 | ||
Foreign currency translation | 0 | 0 | |
Ending balance | 120,000,000 | $ 120,000,000 | $ 120,000,000 |
Impairment charges | $ 0 |
Current Assets and Current Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 31, 2019 |
Mar. 30, 2019 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Prepaid taxes | $ 116 | $ 125 | |
Prepaid contracts | 17 | 15 | |
Other accounts receivables | 10 | 10 | |
Interest receivable related to net investment hedges | 1 | 11 | |
Prepaid rent | 0 | 24 | |
Other | 23 | 36 | |
Prepaid expenses and other current assets | $ 167 | $ 198 | $ 221 |
Current Assets and Current Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 31, 2019 |
Mar. 30, 2019 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other taxes payable | $ 38 | $ 47 | |
Return liabilities | 37 | 35 | |
Accrued capital expenditures | 31 | 25 | |
Gift cards and retail store credits | 11 | 13 | |
Accrued rent | 10 | 34 | |
Professional services | 10 | 12 | |
Accrued litigation | 10 | 11 | |
Restructuring liability | 9 | 64 | |
Accrued advertising and marketing | 9 | 10 | |
Accrued interest | 8 | 10 | |
Accrued purchases and samples | 3 | 29 | |
Other | 65 | 84 | |
Accrued expenses and other current liabilities | $ 241 | $ 302 | $ 374 |
Restructuring and Other Charges - Additional Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 28, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
|
Mar. 30, 2019
USD ($)
|
Dec. 29, 2018
USD ($)
|
Sep. 29, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 28, 2020
USD ($)
store
|
Mar. 30, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 5 | $ 1 | $ 31 | $ 8 | $ 2 | $ 7 | |||
Other costs | $ 34 | $ 79 | |||||||
Gianni Versace S.r.l. | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Other costs | 24 | 52 | |||||||
Jimmy Choo | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Other costs | 9 | 27 | $ 49 | ||||||
Alberto Gozzi S.r.L. | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Other costs | 1 | ||||||||
Lease-related and other costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 3 | ||||||||
Jimmy Choo | Lease-related and other costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 4 | ||||||||
Retail Fleet Optimization Plan | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of stores closed | store | 143 | ||||||||
Closing costs | $ 99 | ||||||||
Restructuring and other charges | 5 | 41 | 53 | ||||||
Retail Fleet Optimization Plan | Lease-related and other costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 5 | 38 | 52 | ||||||
Retail Fleet Optimization Plan | Severance and benefit costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 0 | $ 3 | $ 1 | ||||||
Retail Fleet Optimization Plan | Michael Kors | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of stores closed | store | 43 | ||||||||
Retail Fleet Optimization Plan | Minimum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of stores expected to close | store | 100 | ||||||||
Restructuring charges | $ 100 | ||||||||
Retail Fleet Optimization Plan | Maximum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of stores expected to close | store | 150 | ||||||||
Restructuring charges | $ 125 |
Restructuring and Other Charges - Schedule of Restructuring Liability (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Dec. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring liability, beginning balance | $ 64 | $ 64 | $ 64 | |||||||
Additions charged to expense | $ 5 | 1 | $ 31 | $ 8 | $ 2 | $ 7 | ||||
Restructuring liability, ending balance | 64 | 9 | $ 64 | |||||||
Lease-related and other costs | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Additions charged to expense | 3 | |||||||||
Retail Fleet Optimization Plan | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring liability, beginning balance | 55 | 55 | 55 | |||||||
ASC 864 (Leases) Adjustment | (46) | |||||||||
Additions charged to expense | 5 | 41 | $ 53 | |||||||
Payments | (9) | |||||||||
Restructuring liability, ending balance | 9 | 55 | 5 | 55 | ||||||
Retail Fleet Optimization Plan | Severance and benefit costs | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring liability, beginning balance | 2 | 2 | 2 | |||||||
ASC 864 (Leases) Adjustment | 0 | |||||||||
Additions charged to expense | 0 | 3 | 1 | |||||||
Payments | (1) | |||||||||
Restructuring liability, ending balance | 2 | 2 | 1 | 2 | ||||||
Retail Fleet Optimization Plan | Lease-related and other costs | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring liability, beginning balance | 53 | $ 53 | 53 | |||||||
ASC 864 (Leases) Adjustment | (46) | |||||||||
Additions charged to expense | 5 | 38 | $ 52 | |||||||
Payments | (8) | |||||||||
Restructuring liability, ending balance | $ 7 | $ 53 | $ 4 | $ 53 |
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Mar. 30, 2019 |
Mar. 28, 2020 |
Oct. 20, 2017 |
|
Debt Instrument [Line Items] | |||
Total debt | $ 2,581,000,000 | $ 2,188,000,000 | |
Less: Unamortized debt issuance costs | 13,000,000 | 8,000,000 | |
Less: Unamortized discount on long-term debt | 2,000,000 | 1,000,000 | |
Total carrying value of debt | 2,566,000,000 | 2,179,000,000 | |
Less: Short-term debt | 630,000,000 | 167,000,000 | |
Total long-term debt | 1,936,000,000 | 2,012,000,000 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | 1,580,000,000 | 1,015,000,000 | |
Repayments of borrowings outstanding | 59,000,000 | ||
4.000% Senior Notes due 2024 | 4.00% Senior Notes, Maturity 2024 | |||
Debt Instrument [Line Items] | |||
Total carrying value of debt | 445,000,000 | $ 446,000,000 | |
Stated interest rate | 4.00% | 4.00% | |
4.000% Senior Notes due 2024 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 450,000,000 | $ 450,000,000 | |
Revolving Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total debt | 550,000,000 | 720,000,000 | |
Other | |||
Debt Instrument [Line Items] | |||
Total debt | $ 1,000,000 | $ 3,000,000 |
Debt Obligations - Senior Unsecured Revolving Credit Facility (Details) |
Mar. 28, 2020
USD ($)
|
Mar. 20, 2020
USD ($)
|
Dec. 21, 2018
USD ($)
|
Nov. 15, 2018
USD ($)
tranch
|
Mar. 30, 2019
USD ($)
|
Nov. 01, 2017
USD ($)
|
---|---|---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||||
Borrowings outstanding | $ 2,188,000,000 | $ 2,581,000,000 | ||||
Stand by letter of credit issued | 24,000,000 | |||||
Short-term debt | 167,000,000 | 630,000,000 | ||||
Long-term debt | 2,179,000,000 | 2,566,000,000 | ||||
Gianni Versace S.r.l. | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term debt | 128,000,000 | |||||
Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings outstanding | 720,000,000 | 550,000,000 | ||||
Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings outstanding | 1,015,000,000 | 1,580,000,000 | ||||
Senior Unsecured Revolving Credit Facility | Federal Funds Effective Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Senior Unsecured Revolving Credit Facility | Adjusted LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||
Senior Unsecured Revolving Credit Facility | One-Month CDOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||
Senior Unsecured Revolving Credit Facility | CDOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||
Senior Unsecured Revolving Credit Facility | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Stand by letter of credit issued | 18,000,000 | |||||
Term Loans Due On Second Anniversary | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Exchange amount of line of credit facility | $ 267,000,000 | |||||
Borrowings outstanding | $ 315,000,000 | |||||
Term Loans Due Third Quarter 2021 | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings outstanding | 48,000,000 | |||||
2018 Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Stand by letter of credit issued | $ 18,000,000 | |||||
2018 Credit Facility | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio of indebtedness to EBITDAR | 3.75 | |||||
2018 Credit Facility | Senior Unsecured Revolving Credit Facility | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings outstanding | $ 681,000,000 | $ 539,000,000 | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000.0 | $ 1,000,000,000.0 | ||||
Additional borrowing capacity | $ 500,000,000 | |||||
Proceeds from lines of credit | 350,000,000 | |||||
Line of credit facility, available for future borrowings | 301,000,000 | |||||
2018 Credit Facility | Senior Unsecured Revolving Credit Facility | Revolving Credit Facilities | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.10% | |||||
2018 Credit Facility | Senior Unsecured Revolving Credit Facility | Revolving Credit Facilities | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
2018 Credit Facility | Letter of Credit | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | |||||
2018 Credit Facility | Bridge Loan | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 75,000,000 | |||||
2018 Credit Facility | 2018 Term Loan Facility | Revolving Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,600,000,000 | |||||
Number of loan tranches | tranch | 2 | |||||
Periodic payment percentage of the principal amount | 2.50% | |||||
Carrying value of borrowings outstanding | 1,010,000,000.000 | |||||
Debt issuance costs | 5,000,000 | |||||
2018 Credit Facility | 2018 Term Loan Facility | Revolving Credit Facilities | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.10% | |||||
2018 Credit Facility | 2018 Term Loan Facility | Revolving Credit Facilities | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
Term Loan Facility | Unsecured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 1,600,000,000 | $ 1,000,000,000.0 | ||||
Long-term debt | $ 882,000,000 |
Debt Obligations - Senior Notes (Details) - USD ($) |
Oct. 20, 2017 |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,179,000,000 | $ 2,566,000,000 | |
4.000% Senior Notes due 2024 | 4.00% Senior Notes, Maturity 2024 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 450,000,000 | ||
Stated interest rate | 4.00% | 4.00% | |
Debt issuance price as percentage of principal amount | 99.508% | ||
Long-term debt | $ 446,000,000 | $ 445,000,000 | |
4.000% Senior Notes due 2024 | 4.00% Senior Notes, Maturity 2024 | Anytime | |||
Debt Instrument [Line Items] | |||
Debt redemption price as a percentage | 100.00% | ||
4.000% Senior Notes due 2024 | 4.00% Senior Notes, Maturity 2024 | Anytime | Treasury Rate | |||
Debt Instrument [Line Items] | |||
Make whole redemption, basis spread on variable rate | 3000.00% | ||
4.000% Senior Notes due 2024 | 4.00% Senior Notes, Maturity 2024 | Change of control event | |||
Debt Instrument [Line Items] | |||
Debt redemption price as a percentage | 101.00% |
Debt Obligations - Japan and Hong Kong Credit Facility (Details) - Revolving Credit Facilities - Revolving Credit Facility |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
|
Nov. 30, 2017
USD ($)
|
Mar. 28, 2020
USD ($)
|
Mar. 28, 2020
HKD ($)
|
Mar. 31, 2019
HKD ($)
|
Mar. 30, 2019
USD ($)
|
Nov. 30, 2017
JPY (¥)
|
|
Japan Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 9,000,000 | ¥ 1,000,000,000.0 | |||||
Line of credit, current obligations | $ 0 | $ 0 | |||||
Japan Credit Facility | Bank Rate Two Days Prior | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.30% | ||||||
HK Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 14,000,000 | $ 100,000,000 | |||||
Line of credit, current obligations | 0 | $ 0 | |||||
Minimum commitment, amount | $ 5,000,000 | ||||||
Line of credit facility, available for future borrowings | 13,000,000 | $ 96,000,000 | |||||
HK Credit Facility | HIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||
HK Credit Facility, Bank Guarantees | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank guarantees supported by facility | $ 1,000,000 | $ 4,000,000 |
Debt Obligations - China Credit Facility (Details) - Revolving Credit Facilities - China Credit Facility |
Mar. 28, 2020
USD ($)
|
Jan. 31, 2019
USD ($)
|
Jan. 31, 2019
HKD ($)
|
---|---|---|---|
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 70,000,000 | |
Stated interest rate | 105.00% | 105.00% | |
Line of credit, current obligations | $ 0 | ||
Overdraft Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000 | $ 10,000,000 | |
Non-Financial Bank Guarantee Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | $ 20,000,000 |
Debt Obligations - Versace Credit Facilities (Details) - Revolving Credit Facilities $ in Millions |
Mar. 28, 2020
USD ($)
|
Mar. 28, 2020
EUR (€)
|
Jun. 30, 2019
USD ($)
creditFacility
|
Jun. 30, 2019
EUR (€)
creditFacility
|
Jan. 31, 2018
USD ($)
|
Jan. 31, 2018
EUR (€)
|
---|---|---|---|---|---|---|
Versace Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of credit facilities | 2 | 2 | ||||
Versace Credit Facilities | Bridge Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 36 | € 32,000,000 | ||||
Borrowings outstanding | $ 28 | € 25,000,000 | ||||
Versace Credit Facility | Bridge Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 22 | € 20,000,000 | ||||
Line of credit, current obligations | $ 11 | € 10,000,000 |
Commitments and Contingencies - Additional Information (Details) $ in Millions |
12 Months Ended |
---|---|
Mar. 28, 2020
USD ($)
| |
Commitments and Letters of Credit [Line Items] | |
Stand by letter of credit issued | $ 24 |
Other contractual commitments | 2,830 |
Long term employment commitment amount | 1 |
Inventory purchase commitments | |
Commitments and Letters of Credit [Line Items] | |
Other contractual commitments | 570 |
Debt obligations | |
Commitments and Letters of Credit [Line Items] | |
Other contractual commitments | 2,179 |
Other contractual obligation | |
Commitments and Letters of Credit [Line Items] | |
Other contractual commitments | 81 |
2018 Credit Facility | |
Commitments and Letters of Credit [Line Items] | |
Stand by letter of credit issued | $ 18 |
Fair Value Measurements - Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 4 | $ 42 |
Derivative liabilities | 0 | 5 |
Quoted prices in active markets for identical assets (Level 1) | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Forward foreign currency exchange contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Net investment hedges | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Other undesignated derivative contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Significant other observable inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4 | 42 |
Significant other observable inputs (Level 2) | Forward foreign currency exchange contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 5 |
Significant other observable inputs (Level 2) | Net investment hedges | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 3 | 37 |
Significant other observable inputs (Level 2) | Other undesignated derivative contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 5 |
Significant unobservable inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Forward foreign currency exchange contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Net investment hedges | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Other undesignated derivative contracts | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Fair Value Measurement of Long-term Debt (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
Oct. 20, 2017 |
---|---|---|---|
4.000% Senior Notes | 4.00% Senior Notes, Maturity 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.00% | 4.00% | |
4.000% Senior Notes | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | $ 446 | $ 445 | |
4.000% Senior Notes | Fair Value, Inputs, Level 2 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | 443 | 438 | |
Term Loan | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | 1,010 | 1,570 | |
Term Loan | Fair Value, Inputs, Level 2 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | 957 | 1,574 | |
Revolving Credit Facilities | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | 720 | 550 | |
Revolving Credit Facilities | Fair Value, Inputs, Level 2 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value disclosure | $ 720 | $ 550 |
Fair Value Measurements - Non-Financial Assets and Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment Charge | $ 77 | $ 19 | $ 28 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 1,843 | 29 | 37 |
Fair Value | 1,135 | 8 | 4 |
Impairment Charge | 708 | 21 | 33 |
Fair Value, Measurements, Nonrecurring | Operating Lease Right-of-Use Assets | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 717 | ||
Fair Value | 437 | ||
Impairment Charge | 280 | ||
Fair Value, Measurements, Nonrecurring | Finite-Lived Intangible Assets | Significant unobservable inputs (Level 3) | Trade Name | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 547 | ||
Fair Value | 367 | ||
Impairment Charge | 180 | ||
Fair Value, Measurements, Nonrecurring | Finite-Lived Intangible Assets | Significant unobservable inputs (Level 3) | Lease Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 3 | 5 | |
Fair Value | 1 | 1 | |
Impairment Charge | 2 | 4 | |
Fair Value, Measurements, Nonrecurring | Finite-Lived Intangible Assets | Significant unobservable inputs (Level 3) | Customer relationships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 1 | ||
Fair Value | 0 | ||
Impairment Charge | 1 | ||
Fair Value, Measurements, Nonrecurring | Goodwill | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 474 | ||
Fair Value | 303 | ||
Impairment Charge | 171 | ||
Fair Value, Measurements, Nonrecurring | Property and Equipment | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Prior to Impairment | 105 | 26 | 31 |
Fair Value | 28 | 7 | 3 |
Impairment Charge | $ 77 | $ 19 | $ 28 |
Fair Value Measurements - Narrative (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 28, 2020 |
Mar. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Retained earnings | $ 4,707,000,000 | $ 4,332,000,000 | $ 4,555,000,000 | |
Goodwill and intangible asset impairment | 0 | $ 0 | ||
ASU 2016-02 | Restatement Adjustment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Retained earnings | $ (152,000,000) | $ 152,000,000 |
Derivative Financial Instruments - Narrative (Details) € in Millions, £ in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 28, 2020
USD ($)
instrument
|
Mar. 28, 2020
USD ($)
instrument
|
Mar. 30, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Sep. 24, 2018
USD ($)
|
Sep. 24, 2018
EUR (€)
|
Jul. 25, 2017
USD ($)
|
Jul. 25, 2017
GBP (£)
|
|
Derivative [Line Items] | ||||||||
Notional amounts | $ 205 | $ 205 | $ 2,599 | |||||
Settlement of a net investment hedge | 296 | 298 | 11 | $ 0 | ||||
Derivative gains (losses) | (77) | 5 | ||||||
Total designated hedges | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | 205 | 205 | 2,400 | |||||
Forward foreign currency exchange contracts | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | 0 | 0 | 199 | |||||
Forward foreign currency exchange contracts | Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative recognized | 78 | 3 | ||||||
Forward foreign currency exchange contracts | Not Designated as Hedging Instrument | Gianni Versace S.r.l. | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | $ 2,001 | € 1,680 | ||||||
Forward foreign currency exchange contracts | Not Designated as Hedging Instrument | Jimmy Choo | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | $ 1,469 | £ 1,115 | ||||||
Forward foreign currency exchange contracts | Total designated hedges | ||||||||
Derivative [Line Items] | ||||||||
Pre-tax gain being recognized in OCI | 6 | 16 | (22) | |||||
Net investment hedges | Total designated hedges | ||||||||
Derivative [Line Items] | ||||||||
Pre-tax gain being recognized in OCI | 264 | 47 | $ 0 | |||||
Net investment hedges | Total designated hedges | Yen | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | $ 44 | $ 44 | ||||||
Number of swap agreements | instrument | 1 | 1 | ||||||
Net investment hedges | Total designated hedges | Net investment hedging | ||||||||
Derivative [Line Items] | ||||||||
Notional amounts | $ 44 | $ 44 | 2,234 | |||||
Reduction in interest expense | $ 71 | $ 17 | ||||||
Net investment hedges | Total designated hedges | Net investment hedging | Yen | ||||||||
Derivative [Line Items] | ||||||||
Fixed interest rate on derivative | 0.89% | 0.89% | ||||||
Net investment hedges | Total designated hedges | Net investment hedging | Euro | ||||||||
Derivative [Line Items] | ||||||||
Pre-tax gain being recognized in OCI | $ 211 |
Derivative Financial Instruments - Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Derivative [Line Items] | ||
Notional Amounts | $ 205 | $ 2,599 |
Assets | 4 | 42 |
Liabilities | 0 | 5 |
Total designated hedges | ||
Derivative [Line Items] | ||
Notional Amounts | 205 | 2,400 |
Assets | 4 | 42 |
Liabilities | 0 | 0 |
Forward foreign currency exchange contracts | Undesignated derivative contracts | ||
Derivative [Line Items] | ||
Notional Amounts | 0 | 199 |
Assets | 0 | 0 |
Liabilities | 0 | 5 |
Designated forward foreign currency exchange contracts | Forward foreign currency exchange contracts | Total designated hedges | ||
Derivative [Line Items] | ||
Notional Amounts | 161 | 166 |
Assets | 1 | 5 |
Liabilities | 0 | 0 |
Designated net investment hedge | Net investment hedges | Total designated hedges | ||
Derivative [Line Items] | ||
Notional Amounts | 44 | 2,234 |
Assets | 3 | 37 |
Liabilities | $ 0 | $ 0 |
Derivative Financial Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Net investment hedging | Net investment hedges | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | $ 3 | $ 37 |
Liabilities subject to master netting arrangements | 0 | 0 |
Derivative assets, net | 3 | 37 |
Derivative liabilities, net | 0 | 0 |
Cash flow hedging | Forward foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | 1 | 5 |
Liabilities subject to master netting arrangements | 0 | 5 |
Derivative assets, net | 1 | 5 |
Derivative liabilities, net | $ 0 | $ 5 |
Derivative Financial Instruments - Impact of Effective Portion of Gains and Losses of Forward Contracts Designated as Hedges (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Cost of Sales | $ 2,280 | $ 2,058 | $ 1,860 |
Forward foreign currency exchange contracts | Designated forward foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Gain (Loss) Recognized in OCI (Effective Portion) | 6 | 16 | (22) |
Forward foreign currency exchange contracts | Designated forward foreign currency exchange contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Losses (Gains) Reclassified from Accumulated OCI | (10) | 4 | 4 |
Net investment hedges | Designated forward foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Gain (Loss) Recognized in OCI (Effective Portion) | $ 264 | $ 47 | $ 0 |
Shareholders' Equity - Additional Information (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
Aug. 01, 2019 |
|
Equity [Line Items] | ||||
Ordinary shares, shares repurchased amount | $ 102,000,000 | $ 207,000,000 | $ 361,000,000 | |
Share Repurchase Program | ||||
Equity [Line Items] | ||||
Ordinary shares, shares repurchased (in shares) | 2,711,807 | 3,718,237 | ||
Ordinary shares, shares repurchased amount | $ 100,000,000 | $ 200,000,000 | ||
Ordinary shares repurchased, shares authorized | $ 1,000,000,000.0 | $ 500,000,000 | ||
Remaining authorized repurchase amount | $ 400,000,000 | |||
Withholding Taxes | ||||
Equity [Line Items] | ||||
Ordinary shares, shares repurchased (in shares) | 63,958 | 107,712 | ||
Ordinary shares, shares repurchased amount | $ 2,000,000 | $ 7,000,000 |
Shareholders' Equity - Changes in Components of Accumulated Other Comprehensive Loss, Net of Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,432 | $ 2,022 | $ 1,595 |
Other comprehensive income (loss), net of tax | 141 | (117) | 132 |
Ending balance | 2,168 | 2,432 | 2,022 |
Foreign currency translation adjustments | 145 | (134) | 148 |
Foreign Currency Translation (Losses) Gains | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (73) | 61 | (87) |
Other comprehensive income before reclassifications | 145 | (134) | 148 |
Less: amounts reclassified from AOCI to earnings | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 145 | (134) | 148 |
Ending balance | 72 | (73) | 61 |
Net gains (losses) on long-term transactions | 6 | 6 | |
Gain related to net investment hedges | 219 | 39 | |
Taxes related to the gain on net investment hedges | 45 | 8 | |
Foreign Currency Translation (Losses) Gains | Gianni Versace S.r.l. | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Foreign currency translation adjustments | (10) | 33 | |
Foreign Currency Translation (Losses) Gains | Jimmy Choo | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Foreign currency translation adjustments | (60) | 105 | |
Net (Losses) Gains on Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 7 | (10) | 6 |
Other comprehensive income before reclassifications | 5 | 14 | (19) |
Less: amounts reclassified from AOCI to earnings | 9 | (3) | (3) |
Other comprehensive income (loss), net of tax | (4) | 17 | (16) |
Ending balance | 3 | 7 | (10) |
Other comprehensive income (loss) before reclassifications related to derivative instruments, tax provision (benefit) | (2) | (3) | |
Other Comprehensive (Loss)/Gain Attributable to Capri | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (66) | 51 | (81) |
Other comprehensive income before reclassifications | 150 | (120) | 129 |
Less: amounts reclassified from AOCI to earnings | 9 | (3) | (3) |
Other comprehensive income (loss), net of tax | 141 | (117) | 132 |
Ending balance | $ 75 | $ (66) | $ 51 |
Share-Based Compensation - Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020
USD ($)
type_of_restricted_share_unit
equityPlan
shares
|
Mar. 30, 2019
USD ($)
$ / shares
|
Mar. 31, 2018
USD ($)
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity plans (in plans) | equityPlan | 2 | ||
Outstanding options unvested (in shares) | shares | 286,020 | ||
Outstanding options vested (in shares) | shares | 1,785,076 | ||
Intrinsic value of options exercised | $ 94,000,000 | ||
Exercise of employee share options | $ 0 | $ 29,000,000 | $ 14,000,000 |
Weighted average grant date fair value of option (in dollars per share) | $ / shares | $ 24.49 | $ 11.62 | |
Estimated value of future forfeitures | $ 22,000,000 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 4 years | ||
Exercise of employee share options | $ 29,000,000 | ||
Unrecognized stock based compensation expense | $ 2,000,000 | ||
Weighted average period of recognition | 1 year 9 months 18 days | ||
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock based compensation expense | $ 111,000,000 | ||
Weighted average period of recognition | 3 years 3 days | ||
Types of equity instruments other than options | type_of_restricted_share_unit | 2 | ||
Fair value of restricted shares vested during a period | $ 56,000,000 | 47,000,000 | $ 18,000,000 |
Restricted Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 4 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock based compensation expense | $ 7,000,000 | ||
Weighted average period of recognition | 1 year 5 months 12 days | ||
Fair value of restricted shares vested during a period | $ 3,000,000 | 7,000,000 | 4,000,000 |
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential number of shares that may be earned (as a percent) | 150.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential number of shares that may be earned (as a percent) | 0.00% | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted shares vested during a period | $ 0 | $ 4,000,000 | $ 4,000,000 |
Stock Option Plan 2008 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans adopted (in plans) | equityPlan | 1 | ||
Shares authorized for issuance (up to) (in shares) | shares | 23,980,823 | ||
Shares available for grant (in shares) | shares | 0 | ||
Expiration period | 10 years | ||
Omnibus Incentive Plan 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (up to) (in shares) | shares | 15,246,000 | ||
Shares available for grant (in shares) | shares | 2,686,919 | ||
Expiration period | 7 years |
Share-Based Compensation - Option Activity and Information about Options Outstanding (Details) $ / shares in Units, $ in Millions |
12 Months Ended |
---|---|
Mar. 28, 2020
USD ($)
$ / shares
shares
| |
Number of Options | |
Outstanding at beginning of period (in shares) | shares | 2,131,259 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (6,682) |
Canceled/forfeited (in shares) | shares | (53,481) |
Outstanding at end of period (in shares) | shares | 2,071,096 |
Vested or expected to vest at end of period (in shares) | shares | 2,071,096 |
Vested and exercisable at end of period (in shares) | shares | 1,785,076 |
Weighted Average Exercise price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 50.67 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 27.01 |
Canceled/forfeited (in dollars per share) | $ / shares | 53.79 |
Outstanding at end of period (in dollars per share) | $ / shares | 50.66 |
Vested or expected to vest at end of period (in dollars per share) | $ / shares | 50.66 |
Vested and exercisable at end of period (in dollars per share) | $ / shares | $ 49.90 |
Weighted Average Remaining Contractual Life (years) | |
Outstanding at end of period (in years) | 1 year 10 months 9 days |
Vested or expected to vest at end of period (in years) | 1 year 10 months 9 days |
Vested and exercisable at end of period (in years) | 1 year 4 months 28 days |
Aggregate Intrinsic Value (in millions) | |
Outstanding at end of period | $ | $ 3 |
Vested and exercisable at end of period | $ | $ 3 |
Share-Based Compensation - Assumptions Used to Estimate Fair Value of Options (Details) - Stock options |
12 Months Ended | |
---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Volatility factor | 36.90% | 36.30% |
Weighted average risk-free interest rate | 2.80% | 1.80% |
Expected life of option | 4 years 10 months 6 days | 4 years 8 months 8 days |
Share-Based Compensation - Restricted Shares and Restricted Share Units (Details) |
12 Months Ended |
---|---|
Mar. 28, 2020
$ / shares
shares
| |
Service-based RSU's | |
Number of Restricted Share Units | |
Unvested at beginning of period (in shares) | shares | 3,839,862 |
Granted (in shares) | shares | 1,987,450 |
Decrease due to performance condition (in shares) | shares | 0 |
Vested (in shares) | shares | (1,209,177) |
Canceled/forfeited (in shares) | shares | (306,452) |
Unvested at end of period (in shares) | shares | 4,311,683 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 46.11 |
Granted (in dollars per share) | $ / shares | 33.92 |
Decrease due to performance condition (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 46.62 |
Canceled/forfeited (in dollars per share) | $ / shares | 45.70 |
Unvested at end of period (in dollars per share) | $ / shares | $ 40.34 |
Performance-based RSU's | |
Number of Restricted Share Units | |
Unvested at beginning of period (in shares) | shares | 737,074 |
Granted (in shares) | shares | 169,817 |
Decrease due to performance condition (in shares) | shares | (39,999) |
Vested (in shares) | shares | (53,025) |
Canceled/forfeited (in shares) | shares | (41,695) |
Unvested at end of period (in shares) | shares | 772,172 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 52.34 |
Granted (in dollars per share) | $ / shares | 33.86 |
Decrease due to performance condition (in dollars per share) | $ / shares | 49.88 |
Vested (in dollars per share) | $ / shares | 49.88 |
Canceled/forfeited (in dollars per share) | $ / shares | 41.97 |
Unvested at end of period (in dollars per share) | $ / shares | $ 49.13 |
Share-Based Compensation - Compensation Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation expense | $ 70 | $ 60 | $ 50 |
Tax benefits related to share-based compensation expense | $ 7 | $ 11 | $ 10 |
Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
U.S. | $ (28) | $ 191 | $ 124 |
Non-U.S. | (187) | 430 | 618 |
(Loss) income before provision for income taxes | $ (215) | $ 621 | $ 742 |
Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Current | |||
U.S. Federal | $ 4 | $ 82 | $ 48 |
U.S. State | 19 | 24 | 16 |
Non-U.S. | 60 | 44 | 77 |
Total current | 83 | 150 | 141 |
Deferred | |||
U.S. Federal | (22) | (34) | 24 |
U.S. State | (3) | (4) | 1 |
Non-U.S. | (48) | (33) | (16) |
Total deferred | (73) | (71) | 9 |
Total provision for income taxes | 10 | 79 | 150 |
Provision related to U.S. Tax Legislation one time revaluation of deferred tax assets | $ 18 | ||
Deferred tax benefit related to the U.S. Tax Legislation impact | $ 25 | ||
Domestic | |||
Deferred | |||
Current tax benefit due to a release of income tax reserves in the U.S. | $ 35 |
Taxes - Significant Differences Between United States Federal Statutory Tax Rate and Company's Effective Tax Rate (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Tax Credit Carryforward [Line Items] | |||
Provision for income taxes at the U.K. statutory tax rate | 19.00% | 19.00% | 19.00% |
State and local income taxes, net of federal benefit | (1.90%) | 0.90% | 0.50% |
Effects of global financing arrangements | 21.70% | (8.10%) | (15.60%) |
U.S. tax reform | 0 | 0 | 0.020 |
Differences in tax effects on foreign income | 1.20% | (1.80%) | 6.70% |
Liability for uncertain tax positions | 5.70% | 1.30% | 6.60% |
Effect of changes in valuation allowances on deferred tax assets | (30.90%) | 2.80% | 0.30% |
Excess tax benefits related to stock-based compensation | (4.20%) | (2.60%) | (0.80%) |
Transaction costs | 0.00% | 1.50% | 0.90% |
Withholding tax | (1.60%) | 0.60% | 1.20% |
Nondeductible goodwill impairment | (15.10%) | 0.00% | 0.00% |
Other | 1.40% | (0.90%) | (0.60%) |
Effective tax rate | (4.70%) | 12.70% | 20.20% |
Income tax expense from re-measurement of deferred tax assets | $ 18 | ||
Capital loss | $ 11 | ||
Foreign | |||
Tax Credit Carryforward [Line Items] | |||
Provision for income taxes at the U.K. statutory tax rate | 21.00% | 31.54% |
Taxes - Significant Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Mar. 30, 2019 |
---|---|---|
Deferred tax assets | ||
Operating lease liabilities | $ 521 | |
Net operating loss carryforwards | 109 | $ 61 |
Accrued Interest | 40 | 41 |
Sales allowances | 37 | 26 |
Inventories | 34 | 22 |
Deferred Tax Assets, Property, Plant and Equipment | 33 | 18 |
Stock compensation | 13 | 13 |
Payroll related accruals | 3 | 2 |
Deferred rent | 0 | 34 |
Other | 0 | 31 |
Total deferred tax assets, gross | 790 | 248 |
Valuation allowance | (134) | (40) |
Total deferred tax assets | 656 | 208 |
Deferred tax liabilities | ||
Goodwill and intangibles | (481) | (534) |
Operating lease right-of-use-assets | (401) | |
Other | (14) | 0 |
Total deferred tax liabilities | (896) | (534) |
Net deferred tax liabilities | $ (240) | $ (326) |
Taxes - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Income Tax [Line Items] | |||
Increase (decrease) in deferred tax valuation allowance | $ 94 | $ 29 | $ 8 |
Net operating loss carryforwards | $ 570 | ||
Operating loss carry forward expiration year | 2020 | ||
Accrued liability for uncertain tax positions | $ 109 | 203 | |
Unrecognized tax benefits | 82 | 112 | 101 |
Interest on unrecognized tax benefits | 11 | 11 | 7 |
Decrease in unrecognized tax benefits reasonably possible | 8 | ||
Remeasurement of Deferred Tax Assets | |||
Income Tax [Line Items] | |||
Increase (decrease) in deferred tax valuation allowance | (19) | $ (3) | $ (1) |
North America, Europe and Asia | |||
Income Tax [Line Items] | |||
Increase (decrease) in deferred tax valuation allowance | 110 | ||
Certain Jurisdictions | |||
Income Tax [Line Items] | |||
Increase (decrease) in deferred tax valuation allowance | $ 3 |
Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits beginning balance | $ 192 | $ 101 | $ 27 |
Additions related to prior period tax positions | 29 | 81 | 30 |
Additions related to current period tax positions | 4 | 21 | 45 |
Decreases in prior period positions due to lapses in statute of limitations | (3) | (1) | (1) |
Decreases related to prior period tax positions | (99) | (3) | 0 |
Decreases related to audit settlements | (24) | (7) | 0 |
Unrecognized tax benefits ending balance | $ 99 | $ 192 | $ 101 |
Retirement Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Retirement Benefits [Abstract] | |||
Defined contribution plan, service period for eligibility | 3 months | ||
Expenses recognized for defined contribution plans | $ 12 | $ 14 | $ 12 |
Segment Information - Additional Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 28, 2020
USD ($)
segment
|
Mar. 28, 2020
USD ($)
segment
|
Mar. 31, 2019
USD ($)
|
Mar. 30, 2019
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 3 | |||
Number of reportable segments | segment | 3 | 3 | ||
Assets | $ 7,946 | $ 7,946 | $ 6,650 | |
Operating lease right-of-use assets | 1,625 | 1,625 | $ 1,876 | |
Michael Kors | ||||
Segment Reporting Information [Line Items] | ||||
Operating lease right-of-use assets | 968 | 968 | ||
Gianni Versace S.r.l. | ||||
Segment Reporting Information [Line Items] | ||||
Operating lease right-of-use assets | 457 | 457 | ||
Jimmy Choo | ||||
Segment Reporting Information [Line Items] | ||||
Operating lease right-of-use assets | $ 200 | $ 200 |
Segment Information - Key Performance Information of Reportable Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|||
Segment Reporting Information [Line Items] | ||||||||||||||
Total revenue | $ 1,192 | $ 1,571 | $ 1,442 | $ 1,346 | $ 1,344 | $ 1,438 | $ 1,253 | $ 1,203 | $ 5,551 | $ 5,238 | $ 4,719 | |||
(Loss) Income from operations | (536) | 205 | 75 | 64 | 40 | 290 | 190 | 215 | (192) | 735 | 749 | |||
Corporate expenses | (152) | (93) | (87) | |||||||||||
Restructuring and other charges | [1] | (42) | (124) | (102) | ||||||||||
Impairment of assets | (488) | (19) | (104) | (97) | (4) | (6) | (7) | (4) | (708) | (21) | (33) | |||
Impairment of assets | 488 | $ 19 | $ 104 | $ 97 | $ 4 | $ 6 | $ 7 | $ 4 | 708 | 21 | 33 | |||
Bad debt expense | 29 | 4 | 8 | |||||||||||
Operating segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
(Loss) Income from operations | 829 | 973 | 971 | |||||||||||
COVID-19 | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
COVID-19 related charges | (119) | 0 | 0 | |||||||||||
Inventory reserves | $ 92 | 92 | ||||||||||||
Bad debt expense | 25 | |||||||||||||
Versace | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total revenue | 843 | 137 | 0 | |||||||||||
Impairment of assets | (87) | |||||||||||||
Impairment of assets | 87 | |||||||||||||
Versace | Operating segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
(Loss) Income from operations | (8) | (11) | 0 | |||||||||||
Jimmy Choo | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total revenue | $ 223 | 555 | 590 | 223 | ||||||||||
Impairment of assets | (434) | |||||||||||||
Impairment of assets | 434 | |||||||||||||
Jimmy Choo | Operating segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
(Loss) Income from operations | (13) | 20 | (4) | |||||||||||
Michael Kors | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total revenue | 4,153 | 4,511 | 4,496 | |||||||||||
Impairment of assets | (187) | |||||||||||||
Impairment of assets | 187 | |||||||||||||
Michael Kors | Operating segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
(Loss) Income from operations | $ 850 | $ 964 | $ 975 | |||||||||||
|
Segment Information - Depreciation and Amortization Expense for Each Segment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 249 | $ 225 | $ 208 |
Versace | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 61 | 9 | 0 |
Jimmy Choo | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 33 | 34 | 13 |
Michael Kors | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 155 | $ 182 | $ 195 |
Segment Information - Total Revenue (as Recognized Based on Country of Origin), and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 1,192 | $ 1,571 | $ 1,442 | $ 1,346 | $ 1,344 | $ 1,438 | $ 1,253 | $ 1,203 | $ 5,551 | $ 5,238 | $ 4,719 |
Long-lived assets | 4,172 | 2,908 | 4,172 | 2,908 | 1,819 | ||||||
The Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 3,115 | 3,182 | 3,033 | ||||||||
Long-lived assets | 1,132 | 319 | 1,132 | 319 | 328 | ||||||
EMEA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 1,523 | 1,279 | 1,093 | ||||||||
Long-lived assets | 2,432 | 2,123 | 2,432 | 2,123 | 1,050 | ||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 913 | 777 | 593 | ||||||||
Long-lived assets | 608 | 466 | 608 | 466 | 441 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 2,898 | 2,972 | $ 2,818 | ||||||||
Long-lived assets | $ 1,060 | $ 296 | $ 1,060 | $ 296 |
Segment Information - Net Revenues by Major Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 1,192 | $ 1,571 | $ 1,442 | $ 1,346 | $ 1,344 | $ 1,438 | $ 1,253 | $ 1,203 | $ 5,551 | $ 5,238 | $ 4,719 |
Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 5,551 | 5,238 | 4,719 | ||||||||
Accessories | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 2,933 | $ 3,139 | $ 3,057 | ||||||||
% of Total | 52.80% | 59.90% | 64.80% | ||||||||
Footwear | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 1,100 | $ 1,023 | $ 657 | ||||||||
% of Total | 19.80% | 19.50% | 13.90% | ||||||||
Apparel | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 1,069 | $ 698 | $ 605 | ||||||||
% of Total | 19.30% | 13.30% | 12.80% | ||||||||
Licensed product | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 222 | $ 218 | $ 250 | ||||||||
% of Total | 4.00% | 4.20% | 5.30% | ||||||||
Licensing revenue | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 201 | $ 156 | $ 150 | ||||||||
% of Total | 3.60% | 3.00% | 3.20% | ||||||||
Other | Product Concentration Risk | Total Revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 26 | $ 4 | $ 0 | ||||||||
% of Total | 0.50% | 0.10% | 0.00% |
Selected Quarterly Financial Information (Unaudited) - Summary of Quarterly Results (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 28, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 28, 2020 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 1,192 | $ 1,571 | $ 1,442 | $ 1,346 | $ 1,344 | $ 1,438 | $ 1,253 | $ 1,203 | $ 5,551 | $ 5,238 | $ 4,719 |
Gross profit | 631 | 932 | 874 | 834 | 793 | 873 | 763 | 751 | 3,271 | 3,180 | 2,859 |
Income (loss) from operations | (536) | 205 | 75 | 64 | 40 | 290 | 190 | 215 | (192) | 735 | 749 |
Net (loss) income | (552) | 209 | 73 | 45 | 19 | 200 | 137 | 186 | (225) | 542 | 592 |
Net (loss) income attributable to Capri | $ (551) | $ 210 | $ 73 | $ 45 | $ 19 | $ 200 | $ 138 | $ 186 | $ (223) | $ 543 | $ 592 |
Weighted average ordinary shares outstanding: | |||||||||||
Basic (in shares) | 149,380,121 | 150,826,196 | 151,602,502 | 151,049,572 | 150,801,608 | 149,183,049 | 149,575,112 | 149,502,101 | 150,714,598 | 149,765,468 | 152,283,586 |
Diluted (in shares) | 149,380,121 | 152,154,372 | 152,576,283 | 152,334,153 | 152,083,632 | 150,268,424 | 151,705,685 | 152,399,655 | 150,714,598 | 151,614,350 | 155,102,885 |
Impairment of assets | $ 488 | $ 19 | $ 104 | $ 97 | $ 4 | $ 6 | $ 7 | $ 4 | $ 708 | $ 21 | $ 33 |
Acquisition-related costs | $ 6 | 12 | |||||||||
Restructuring and other charges | 5 | $ 1 | 31 | 8 | 2 | 7 | |||||
Transaction and transition costs | $ 8 | $ 8 | $ 44 | $ 12 | $ 16 | $ 4 |
Non-cash Investing Activities (Details) - Gianni Versace S.r.l. shares in Millions, $ in Millions |
Dec. 31, 2018
USD ($)
shares
|
---|---|
Noncash or Part Noncash Acquisitions [Line Items] | |
Number of shares from acquisition (in shares) | shares | 2.4 |
Capri share consideration | $ | $ 91 |
Subsequent Events (Details) |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 26, 2021
USD ($)
|
Jun. 25, 2020
USD ($)
|
Mar. 28, 2020 |
Nov. 15, 2018 |
Jun. 28, 2020
USD ($)
store
|
Dec. 01, 2020
USD ($)
|
Oct. 01, 2020
USD ($)
|
|
Revolving Credit Facility | Adjusted LIBOR | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
Line of Credit | 2018 Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Leverage ratio of indebtedness to EBITDAR | 3.75 | ||||||
Minimum | Line of Credit | 2018 Credit Facility | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Commitment fee percentage | 0.10% | ||||||
Maximum | Line of Credit | 2018 Credit Facility | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Commitment fee percentage | 0.25% | ||||||
Subsequent event | Capri Retail Optimization Plan | |||||||
Subsequent Event [Line Items] | |||||||
Restructuring period | 2 years | ||||||
Subsequent event | 364 Day Facility | Revolving Credit Facility | Line of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 230,000,000 | ||||||
Debt term | 364 days | ||||||
Commitment fee percentage | 0.35% | ||||||
Subsequent event | 364 Day Facility | Revolving Credit Facility | Adjusted LIBOR | Line of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.25% | ||||||
Subsequent event | 364 Day Facility | Revolving Credit Facility | Base Rate | Line of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||
Subsequent event | Line of Credit | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Payment to lower outstanding revolving debt | $ 328,000,000 | ||||||
Subsequent event | Line of Credit | 2018 Credit Facility | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Net cash proceeds in the aggregate | $ 100,000,000 | ||||||
Covenant, cash and cash equivalents threshold | $ 500,000,000 | $ 400,000,000 | |||||
Outstanding principal amount of bilateral letters of credit and bilateral bank guarantees | 50,000,000 | ||||||
Subsequent event | Minimum | Capri Retail Optimization Plan | |||||||
Subsequent Event [Line Items] | |||||||
Number of stores expected to close | store | 170 | ||||||
Subsequent event | Minimum | 364 Day Facility | Revolving Credit Facility | Line of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Covenant, cash and cash equivalents threshold | 200,000,000 | ||||||
Subsequent event | Minimum | Line of Credit | 2018 Credit Facility | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Covenant, cash and cash equivalents threshold | $ 100,000,000 | $ 300,000,000 | |||||
Subsequent event | Maximum | Capri Retail Optimization Plan | |||||||
Subsequent Event [Line Items] | |||||||
Restructuring charges | $ 75,000,000 | ||||||
Subsequent event | Maximum | Line of Credit | 2018 Credit Facility | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Leverage ratio of indebtedness to EBITDAR | 3.75 | 4.00 | |||||
Supply chain financing | $ 150,000,000 |