CAPRI HOLDINGS LTD, 10-Q filed on 11/7/2019
Quarterly Report
v3.19.3
Cover Page - shares
6 Months Ended
Sep. 28, 2019
Oct. 31, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Entity Registrant Name CAPRI HOLDINGS LTD  
Entity File Number 001-35368  
Entity Incorporation, State or Country Code D8  
Entity Address, Address Line One 33 Kingsway  
Entity Address, City or Town London  
Entity Address, Country GB  
Entity Address, Postal Zip Code WC2B 6UF  
Country Region 44  
City Area Code 207  
Local Phone Number 632 8600  
Title of 12(b) Security Ordinary Shares, no par value  
Trading Symbol CPRI  
Security Exchange Name NYSE  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   151,635,485
Amendment Flag false  
Document Period End Date Sep. 28, 2019  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001530721  
Current Fiscal Year End Date --03-28  
Entity Shell Company false  
Entity Interactive Data Current Yes  
v3.19.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Current assets    
Cash and cash equivalents $ 179 $ 172
Receivables, net 368 383
Inventories, net 1,073 953
Prepaid expenses and other current assets 275 221
Total current assets 1,895 1,729
Property and equipment, net 589 615
Operating lease right-of-use assets 1,671  
Intangible assets, net 2,171 2,293
Goodwill 1,598 1,659
Deferred tax assets 160 112
Other assets 309 242
Total assets 8,393 6,650
Current liabilities    
Accounts payable 390 371
Accrued payroll and payroll related expenses 97 133
Accrued income taxes 27 34
Current operating lease liabilities 403  
Short-term debt 603 630
Accrued expenses and other current liabilities 283 374
Total current liabilities 1,803 1,542
Long-term portion of operating lease liabilities 1,766  
Deferred rent   132
Deferred tax liabilities 440 438
Long-term debt 1,796 1,936
Other long-term liabilities 176 166
Total liabilities 5,981 4,214
Commitments and contingencies
Redeemable noncontrolling interest 4 4
Shareholders’ equity    
Ordinary shares, no par value; 650,000,000 shares authorized; 216,815,137 shares issued and 151,633,281 outstanding at September 28, 2019; 216,050,939 shares issued and 150,932,306 outstanding at March 30, 2019 0 0
Treasury shares, at cost (65,181,856 shares at September 28, 2019 and 65,118,633 shares at March 30, 2019) (3,225) (3,223)
Additional paid-in capital 1,060 1,011
Accumulated other comprehensive loss (103) (66)
Retained earnings 4,673 4,707
Total shareholders’ equity of Capri 2,405 2,429
Noncontrolling interest 3 3
Total shareholders’ equity 2,408 2,432
Total liabilities and shareholders’ equity $ 8,393 $ 6,650
v3.19.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 28, 2019
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) 216,815,137 216,050,939
Ordinary shares, shares outstanding (in shares) 151,633,281 150,932,306
Treasury shares (in shares) 65,181,856 65,118,633
v3.19.3
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Income Statement [Abstract]        
Total revenue $ 1,442 $ 1,253 $ 2,788 $ 2,456
Cost of goods sold 568 490 1,080 942
Gross profit 874 763 1,708 1,514
Selling, general and administrative expenses 623 494 1,221 959
Depreciation and amortization 65 53 125 109
Impairment of long-lived assets 104 7 201 11
Restructuring and other charges [1] 7 19 22 30
Total operating expenses 799 573 1,569 1,109
Income from operations 75 190 139 405
Other income, net (1) (1) (3) (2)
Interest expense, net 3 6 16 14
Foreign currency loss 4 33 6 36
Income before provision for income taxes 69 152 120 357
(Benefit from) provision for income taxes (4) 15 2 34
Net income 73 137 118 323
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 0 (1) 0 (1)
Net income attributable to Capri $ 73 $ 138 $ 118 $ 324
Weighted average ordinary shares outstanding:        
Weighted average ordinary shares outstanding, basic (in shares) 151,602,502 149,575,112 151,326,037 149,538,607
Weighted average ordinary shares outstanding, diluted (in shares) 152,576,283 151,705,685 152,455,218 152,052,671
Net income per ordinary share attributable to Capri:        
Net income per ordinary share, basic (in dollars per share) $ 0.48 $ 0.92 $ 0.78 $ 2.17
Net income per ordinary share, diluted (in dollars per share) $ 0.47 $ 0.91 $ 0.77 $ 2.13
Statements of Comprehensive Income:        
Net income $ 73 $ 137 $ 118 $ 323
Foreign currency translation adjustments (13) (25) (38) (128)
Net gain on derivatives 3 3 1 15
Comprehensive income 63 115 81 210
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 0 (1) 0 (1)
Comprehensive income attributable to Capri $ 63 $ 116 $ 81 $ 211
[1]
Restructuring and other charges includes store closure costs recorded in connection with the Retail Fleet Optimization Plan (as defined in Note 10) and other restructuring initiatives, and costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.
v3.19.3
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Ordinary Shares
Additional Paid-in Capital
Treasury Shares
Accumulated Other Comprehensive Loss
Retained Earnings
Total Equity of Capri
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Adoption of accounting standards $ 12         $ 12 $ 12  
Adjusted beginning balance 2,034 $ 0 $ 831 $ (3,016) $ 51 4,164 2,030 $ 4
Beginning balance (in shares) at Mar. 31, 2018   210,991,000            
Beginning balance, treasury (in shares) at Mar. 31, 2018       (61,293,000)        
Beginning balance at Mar. 31, 2018 2,022 $ 0 831 $ (3,016) 51 4,152 2,018 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 323         324 324 (1)
Other comprehensive loss (113)       (113)   (113) 0
Total comprehensive income (loss) 210           211 (1)
Vesting of restricted awards, net of forfeitures (in shares)   697,000            
Exercises of employee share options (in shares)   1,521,000            
Exercise of employee share options 20   20       20  
Equity compensation expense 26   26       26  
Purchase of treasury shares (in shares)       (1,766,000)        
Purchase of treasury shares (107)     $ (107)     (107)  
Increase in noncontrolling interest 1             1
Ending balance (in shares) at Sep. 29, 2018   213,209,000            
Ending balance, treasury (in shares) at Sep. 29, 2018       (63,059,000)        
Ending balance at Sep. 29, 2018 2,184 $ 0 877 $ (3,123) (62) 4,488 2,180 4
Beginning balance (in shares) at Jun. 30, 2018   212,210,000            
Beginning balance, treasury (in shares) at Jun. 30, 2018       (63,041,000)        
Beginning balance at Jun. 30, 2018 2,042 $ 0 850 $ (3,122) (40) 4,350 2,038 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 137         138 138 (1)
Other comprehensive loss (22)       (22)   (22) 0
Total comprehensive income (loss) 115           116 (1)
Vesting of restricted awards, net of forfeitures (in shares)   97,000            
Exercises of employee share options (in shares)   902,000            
Exercise of employee share options 14   14       14  
Equity compensation expense 13   13       13  
Purchase of treasury shares (in shares)       (18,000)        
Purchase of treasury shares (1)     $ (1)     (1)  
Increase in noncontrolling interest 1             1
Ending balance (in shares) at Sep. 29, 2018   213,209,000            
Ending balance, treasury (in shares) at Sep. 29, 2018       (63,059,000)        
Ending balance at Sep. 29, 2018 2,184 $ 0 877 $ (3,123) (62) 4,488 2,180 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Adoption of accounting standards (152)         (152) (152)  
Adjusted beginning balance $ 2,280 $ 0 1,011 $ (3,223) (66) 4,555 2,277 3
Beginning balance (in shares) at Mar. 30, 2019 216,050,939 216,051,000            
Beginning balance, treasury (in shares) at Mar. 30, 2019 (65,118,633)     (65,119,000)        
Beginning 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]                
Net income (loss) 118         118 118 0
Other comprehensive loss (37)       (37)   (37) 0
Total comprehensive income (loss) 81           81 0
Vesting of restricted awards, net of forfeitures (in shares)   764,000            
Equity compensation expense 49   49       49  
Purchase of treasury shares (in shares)       (63,000)        
Purchase of treasury shares $ (2)     $ (2)     (2)  
Ending balance (in shares) at Sep. 28, 2019 216,815,137 216,815,000            
Ending balance, treasury (in shares) at Sep. 28, 2019 (65,181,856)     (65,182,000)        
Ending balance at Sep. 28, 2019 $ 2,408 $ 0 1,060 $ (3,225) (103) 4,673 2,405 3
Beginning balance (in shares) at Jun. 29, 2019   216,742,000            
Beginning balance, treasury (in shares) at Jun. 29, 2019       (65,177,000)        
Beginning balance at Jun. 29, 2019 2,324 $ 0 1,039 $ (3,225) (93) 4,600 2,321 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 73         73 73 0
Other comprehensive loss (10)       (10)   (10) 0
Total comprehensive income (loss) 63           63 0
Vesting of restricted awards, net of forfeitures (in shares)   73,000            
Equity compensation expense 21   21       21  
Purchase of treasury shares (in shares)       (5,000)        
Purchase of treasury shares $ 0     $ 0        
Ending balance (in shares) at Sep. 28, 2019 216,815,137 216,815,000            
Ending balance, treasury (in shares) at Sep. 28, 2019 (65,181,856)     (65,182,000)        
Ending balance at Sep. 28, 2019 $ 2,408 $ 0 $ 1,060 $ (3,225) $ (103) $ 4,673 $ 2,405 $ 3
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Cash flows from operating activities    
Net income $ 118 $ 323
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 125 109
Equity compensation expense 49 26
Deferred income taxes (8) 13
Impairment of long-lived assets 201 11
Changes to lease related balances, net (26)  
Tax deficit (benefit) on exercise of share options 2 (23)
Amortization of deferred financing costs 3 2
Foreign currency losses 6 5
Other non-cash charges 0 3
Change in assets and liabilities:    
Receivables, net 8 (55)
Inventories, net (141) (126)
Prepaid expenses and other current assets (86) (68)
Accounts payable 32 10
Accrued expenses and other current liabilities (52) 12
Other long-term assets and liabilities 12 22
Net cash provided by operating activities 243 264
Cash flows from investing activities    
Capital expenditures (105) (90)
Purchase of intangible assets 0 (1)
Unrealized loss on hedge related to acquisitions 0 31
Cash paid for business acquisitions, net of cash acquired (1) (2)
Settlement of a net investment hedges 31 0
Net cash used in investing activities (75) (62)
Cash flows from financing activities    
Debt borrowings 1,325 810
Debt repayments (1,480) (925)
Repurchase of treasury shares (2) (107)
Exercise of employee share options 0 20
Net cash used in financing activities (157) (202)
Effect of exchange rate changes on cash and cash equivalents (4) (8)
Net increase (decrease) in cash and cash equivalents 7 (8)
Beginning of period 172 163
End of period 179 155
Supplemental disclosures of cash flow information    
Cash paid for interest 45 16
Cash paid for income taxes 62 98
Supplemental disclosure of non-cash investing and financing activities    
Accrued capital expenditures $ 27 $ 23
v3.19.3
Business and Basis of Presentation
6 Months Ended
Sep. 28, 2019
Accounting Policies [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 completed the acquisition of Gianni Versace S.r.l. (“Versace”) on December 31, 2018. As a result, the Company now operates in three reportable segments: Versace, Jimmy Choo and Michael Kors. See Note 18 for additional information.
The interim 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 interim consolidated financial statements as of September 28, 2019 and for the three and six months ended September 28, 2019 and September 29, 2018 are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 30, 2019, as filed with the Securities and Exchange Commission on May 29, 2019, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year.
The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three and six months ended September 28, 2019 and September 29, 2018, are based on 13-week and 26-week periods, respectively.
v3.19.3
Summary of Significant Accounting Policies
6 Months Ended
Sep. 28, 2019
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 gift card breakage, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the valuation of and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. 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, including the realignment of the Company’s segment reporting structure in the fourth quarter of Fiscal 2019, as further described in Note 18.
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.
Inventories, net
Inventories mainly consist of finished goods with the exception of raw materials inventory of $22 million and $25 million, respectively, recorded on the Company’s consolidated balance sheets as of September 28, 2019 and March 30, 2019.
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 in September 2018 with notional amounts totaling €1.680 billion (approximately $2.001 billion) to mitigate its foreign currency exchange risk through the closing date of the acquisition, which were settled on December 21, 2018. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments that are accounted for as cash flow hedges in the same category as the cash flows from the items being hedged. Accordingly, the Company classified the unrealized gains and losses relating to these derivative instruments within cash flows from investing activities.
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 income (loss) 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 income (loss) 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 (gain) loss 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 income (loss) 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 hedged net investment is sold, diluted, or liquidated.
Net Income per Share
The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income 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 income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Numerator:
 
 
 
 
 
 
 
Net income attributable to Capri
$
73

 
$
138

 
$
118

 
$
324

Denominator:
 
 
 
 
 
 
 
Basic weighted average shares
151,602,502

 
149,575,112

 
151,326,037

 
149,538,607

Weighted average dilutive share equivalents:
 
 
 
 
 
 
 
Share options and restricted shares/units, and performance restricted share units
973,781

 
2,130,573

 
1,129,181

 
2,514,064

Diluted weighted average shares
152,576,283

 
151,705,685

 
152,455,218

 
152,052,671

 
 
 
 
 
 
 
 
Basic net income per share (1)
$
0.48

 
$
0.92

 
$
0.78

 
$
2.17

Diluted net income per share (1)
$
0.47

 
$
0.91

 
$
0.77

 
$
2.13


 
 
 
 
 
(1) 
Basic and diluted net income per share are calculated using unrounded numbers.
During the three and six months ended September 28, 2019, share equivalents of 5,822,186 shares and 4,098,382 shares, respectively, have been excluded from the above calculations due to their anti-dilutive effect. Share equivalents of 680,869 shares and 664,633 shares, respectively, have been excluded from the above calculations during the three and six months ended September 29, 2018.
See Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 for a complete disclosure of the Company’s significant accounting policies.
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):
 
March 30, 2019
As Reported under ASC 840
 
ASC 842 Adjustments
 
March 31, 2019
As Reported Under ASC 842
Assets
 
 
 
 
 
Prepaid expenses and other current assets
$
221

 
$
(23
)
(1) 
$
198

Operating lease right-of-use assets

 
1,856

(2) 
1,856

Intangible assets, net
2,293

 
(20
)
(3) 
2,273

Deferred tax assets
112

 
38

(4) 
150

Liabilities
 
 
 
 
 
Current portion of operating lease liabilities

 
386

(5) 
386

Accrued expenses and other current liabilities
374

 
(72
)
(6) 
302

Long-term portion of operating lease liabilities

 
1,828

(5) 
1,828

Deferred Rent
132

 
(132
)
(7) 

Deferred tax liabilities
438

 
(7
)
(4) 
431

Shareholders’ Equity
 
 
 
 
 
Retained earnings
4,707

 
(152
)
(4) 
4,555

 
 
 
 
 
(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 favorable and unfavorable 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 favorable and unfavorable purchase accounting adjustments 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 equipments 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 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
We have considered all new accounting pronouncements and, other than the recent pronouncements discussed below, have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition or cash flows based on current information.
Intangibles
In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether or not the contract conveys a license to the hosted software. ASU 2018-15 is effective beginning with the Company’s Fiscal 2021, with early adoption permitted, and can either be presented prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2018-15 on its consolidated financial statements, but believes it is generally consistent with its current accounting for cloud computing arrangements and will not have a material impact on its consolidated financial statements.
v3.19.3
Revenue Recognition
6 Months Ended
Sep. 28, 2019
Revenue from Contract with Customer [Abstract]  
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.
Retail
The Company generates sales through directly operated stores and e-commerce throughout the Americas (U.S., Canada and Latin America, excluding Brazil), EMEA (Europe, Middle East, and Africa) and certain parts of Asia.
Gift Cards. The contract liability related to gift cards, net of estimated “breakage,” was $12 million and $13 million as of September 28, 2019 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 contract liability, net of an estimated “breakage,” of $3 million as of both September 28, 2019 and March 30, 2019 is recorded as a reduction to revenue in the consolidated statements of operations 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.
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 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. 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 September 28, 2019, contractually guaranteed minimum fees from our license agreements expected to be recognized as revenue during future periods were as follows (in millions):
 
 
Contractually Guaranteed Minimum Fees
 
 
Remainder of Fiscal 2020
$
14

 
Fiscal 2021
27

 
Fiscal 2022
27

 
Fiscal 2023
20

 
Fiscal 2024
10

 
Fiscal 2025 and thereafter
34

 
 Total
$
132


Sales Returns
The refund liability recorded as of September 28, 2019 and March 30, 2019 was $35 million in each period and the related asset for the right to recover returned product as of September 28, 2019 and March 30, 2019 was $12 million in each period.
Contract Balances
Total contract liabilities were $17 million and $31 million as of September 28, 2019 and March 30, 2019, respectively. For the three and six months ended September 28, 2019, the Company recognized $3 million and $17 million, respectively, in revenue which related to contract liabilities that existed at March 30, 2019. For the three and six months ended September 29, 2018, the Company recognized $3 million and $11 million, respectively, in revenue which related to contract liabilities that existed at April 1, 2018. There were no contract assets recorded as of September 28, 2019 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):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Versace revenue - the Americas
$
48

 
$

 
$
92

 
$

Versace revenue - EMEA
121

 

 
213

 

Versace revenue - Asia
59

 

 
130

 

 Total Versace
228

 

 
435

 

 
 
 
 
 
 
 
 
Jimmy Choo revenue - the Americas
21

 
20

 
51

 
46

Jimmy Choo revenue - EMEA
64

 
56

 
143

 
158

Jimmy Choo revenue - Asia
40

 
40

 
89

 
85

Total Jimmy Choo
125

 
116

 
283

 
289

 
 
 
 
 
 
 
 
Michael Kors revenue - the Americas
733

 
773

 
1,388

 
1,465

Michael Kors revenue - the EMEA
224

 
233

 
413

 
433

Michael Kors revenue - the Asia
132

 
131

 
269

 
269

 Total Michael Kors
1,089

 
1,137

 
2,070

 
2,167

 
 
 
 
 
 
 
 
Total revenue - the Americas
802

 
793

 
1,531

 
1,511

Total revenue - EMEA
409

 
289

 
769

 
591

Total revenue - Asia
231

 
171

 
488

 
354

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456

See Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 for a complete disclosure of the Company’s revenue recognition.
v3.19.3
Leases
6 Months Ended
Sep. 28, 2019
Leases [Abstract]  
Leases Leases
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 February 2024. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores under its Retail Fleet Optimization Plan, as defined in Note 10. 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 rate it would pay 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.
The following table presents the Company’s supplemental balance sheet information related to leases (in millions):
 
 
Balance Sheet Location
 
September 28,
2019
Assets
 
 
 
 
Operating leases
 
Operating lease right-of-use assets
 
$
1,671

 
 
 
 
 
Liabilities
 
 
 
 
Current:
 
 
 
 
Operating leases
 
Current portion of operating lease liabilities
 
$
403

Non-current:
 
 
 
 
Operating leases
 
Long-term portion of operating lease liabilities
 
$
1,766


The components of net lease costs for the three and six months ended September 28, 2019 were as follows (in millions):
 
 
 
 
September 28, 2019
 
 
Statement of Operations and
Comprehensive Income Location
 
Three Months Ended
 
Six Months Ended
Operating lease cost
 
Selling, general and administrative expenses
 
$
115

 
$
224

Short-term lease cost
 
Selling, general and administrative expenses
 
3

 
13

Variable lease cost
 
Selling, general and administrative expenses
 
39

 
79

Sublease income
 
Selling, general and administrative expenses
 
(2
)
 
(3
)
Total lease cost
 
 
 
$
155

 
$
313

The following table presents the Company’s supplemental cash flow information related to leases (in millions):
 
 
 
 
Six Months Ended
 
 
 
 
September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows used in operating leases
 
$
244

Non-cash transactions:
 
 
Lease assets obtained in exchange for new lease liabilities
 
$
168


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 September 28, 2019:
 
 
 
 
September 28,
2019
Operating leases:
 
 
Weighted average remaining lease term (years)
 
6.5

Weighted average discount rate
 
3.0
%

At September 28, 2019, the future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in millions):
 
 
 
 
September 28,
2019
Remainder of Fiscal 2020
 
 
 
$
243

Fiscal 2021
 
 
 
459

Fiscal 2022
 
 
 
404

Fiscal 2023
 
 
 
346

Fiscal 2024
 
 
 
292

Thereafter
 
 
 
668

Total lease payments
 
 
 
2,412

Less: interest
 
 
 
(243
)
Total lease liabilities
 
 
 
$
2,169

At September 28, 2019, the future minimum sublease income under the terms of these noncancelable operating lease agreements are as follows (in millions):
 
 
 
 
September 28,
2019
Remainder of Fiscal 2020
 
 
 
$
3

Fiscal 2021
 
 
 
6

Fiscal 2022
 
 
 
5

Fiscal 2023
 
 
 
5

Fiscal 2024
 
 
 
4

Thereafter
 
 
 
15

Total sublease income
 
 
 
$
38

Additionally, the Company had approximately $15 million of future payment obligations related to executed lease agreements for which the related lease has not yet commenced as of September 28, 2019.
v3.19.3
Acquisitions
6 Months Ended
Sep. 28, 2019
Business Combinations [Abstract]  
Acquisitions Acquisitions
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 of CPRI stock. 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 11 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 $228 million and $435 million, respectively, for the three and six months ended August 31, 2019 and net income from operations of $9 million and $6 million, respectively, after amortization of non-cash purchase accounting adjustments, for the three and six months ended August 31, 2019 (reflecting a one-month reporting lag).
As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. See Note 4 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 for additional disclosures relating to the Company’s acquisitions.
v3.19.3
Receivables, net
6 Months Ended
Sep. 28, 2019
Receivables [Abstract]  
Receivables, net Receivables, net
Receivables, net, consist of (in millions):
 
September 28,
2019
 
March 30,
2019
Trade receivables (1)
$
428

 
$
459

Receivables due from licensees
26

 
23

 
454

 
482

Less: allowances
(86
)
 
(99
)
 
$
368

 
$
383


 
 
 
 
 
(1) 
As of September 28, 2019 and March 30, 2019, $64 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 $15 million and $18 million, respectively, as of September 28, 2019 and March 30, 2019. The Company had bad debt expense of $4 million and $1 million, respectively, for the six months ended September 28, 2019 and September 29, 2018. All other periods presented were immaterial.
v3.19.3
Property and Equipment, net
6 Months Ended
Sep. 28, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment, net Property and Equipment, net
Property and equipment, net, consists of (in millions):
 
September 28,
2019
 
March 30,
2019
Leasehold improvements
$
656

 
$
639

Computer equipment and software
307

 
292

Furniture and fixtures
298

 
292

In-store shops
272

 
270

Equipment
124

 
123

Building
46

 
47

Land
17

 
15

 
1,720

 
1,678

Less: accumulated depreciation and amortization
(1,205
)
 
(1,115
)
 
515

 
563

Construction-in-progress
74

 
52

 
$
589

 
$
615


Depreciation and amortization of property and equipment for the three months ended September 28, 2019 and September 29, 2018 was $52 million and $45 million, respectively, and was $99 million and $92 million, respectively, for the six months ended September 28, 2019 and September 29, 2018. During the three months ended September 28, 2019, the Company recorded property and equipment impairment charges of $10 million, primarily related to Jimmy Choo and Versace store locations. During the six months ended September 28, 2019, the Company recorded property and equipment impairment charges of $23 million, $11 million of which related to determining asset groups for the Company’s premier store locations at an individual store level, $7 million of which related to Michael Kors and $4 million related to Jimmy Choo. In addition, during the six months ended September 28, 2019, the Company recorded property and equipment impairment charges of $12 million, primarily related to Jimmy Choo and Versace store locations (see Note 13 for additional information). During the three and six months ended September 29, 2018, the Company recorded property and equipment impairment charges of $6 million and $9 million, respectively, of which $4 million and $8 million, respectively, were related to underperforming Michael Kors full-price retail store locations, some of which related to the Retail Fleet Optimization Plan, as defined in Note 10.
v3.19.3
Current Assets and Current Liabilities
6 Months Ended
Sep. 28, 2019
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):
 
September 28,
2019
 
March 30,
2019
Prepaid taxes
$
187

 
$
125

Interest receivable related to net investment hedges
25

 
11

Unrealized gains on forward foreign currency exchange contracts
7

 
5

Prepaid property and equipment
6

 
7

Prepaid rent (1)

 
24

Other
50

 
49

 
$
275

 
$
221



Accrued expenses and other current liabilities consist of the following (in millions):
 
September 28,
2019
 
March 30,
2019
Other taxes payable
$
60

 
$
47

Return liabilities
35

 
35

Accrued capital expenditures
27

 
25

Accrued advertising and marketing
23

 
10

Accrued rent (2)
18

 
34

Gift cards and retail store credits
12

 
13

Professional services
10

 
12

Accrued litigation
10

 
11

Accrued interest
10

 
10

Restructuring liability (1)
7

 
64

Accrued purchases and samples
5

 
29

Other
66

 
84

 
$
283

 
$
374


 
 
 
 
 
(1) 
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 September 28, 2019. See Note 2 and Note 4 for additional information.
(2) 
The accrued rent balance relates to variable lease payments.
v3.19.3
Intangible Assets and Goodwill
6 Months Ended
Sep. 28, 2019
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 and goodwill (in millions):
 
September 28,
2019
 
March 30,
2019
Definite-lived intangible assets:
 
 
 
Reacquired Rights
$
400

 
$
400

Trademarks
23

 
23

Key Money (1)
68

 
96

Customer Relationships
398

(2) 
415

Total definite-lived intangible assets
889

 
934

Less: accumulated amortization
(164
)
 
(143
)
Net definite-lived intangible assets
725

 
791

 
 
 
 
Indefinite-lived intangible assets:
 
 
 
Jimmy Choo brand
539

(2) 
572

Versace brand
907

(2) 
930

 
1,446

 
1,502

 
 
 
 
Total intangible assets, excluding goodwill
$
2,171

 
$
2,293

 
 
 
 
Goodwill
$
1,598

(2) 
$
1,659


 
 
 
 
 
(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.
(2) 
The change in the carrying values since March 30, 2019 reflects currency translation.
Amortization expense for the Company’s definite-lived intangible assets for the three months ended September 28, 2019 and September 29, 2018 was $13 million and $8 million, respectively, and was $26 million and $17 million, respectively, for the six months ended September 28, 2019 and September 29, 2018. During the three and six months ended September 28, 2019, the Company recorded impairment charges of $1 million and $6 million, respectively, primarily related to intangible assets associated with its premier Michael Kors store locations (see Note 13 for further information). Impairment charges recorded during the three and six months ended September 29, 2018 were $1 million and $2 million, respectively. There were no goodwill or other indefinite-lived intangible asset impairment charges recorded during any of the periods presented.
v3.19.3
Restructuring and Other Charges
6 Months Ended
Sep. 28, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges Restructuring and Other Charges
Retail Fleet Optimization Plan
On May 31, 2017, the Company announced that it plans to close between 100 and 125 of its Michael Kors retail stores in order to improve the profitability of its retail store fleet (“Retail Fleet Optimization Plan”). The Company anticipates finalizing the remainder of the planned store closures under the Retail Fleet Optimization Plan by the end of Fiscal 2020. The Company expects to incur approximately $100 - $125 million of one-time costs associated with these store closures. Collectively, the Company anticipates lower depreciation and amortization expense as a result of the impairment charges recorded once these initiatives are completed.
During the six months ended September 28, 2019, the Company closed 23 of its Michael Kors retail stores under the Retail Fleet Optimization Plan, for a total of 123 stores closed at a cost of $95 million since plan inception. Restructuring charges recorded in connection with the Retail Fleet Optimization Plan during the six months ended September 28, 2019 were $1 million. The below table presents a rollforward of the Company’s remaining restructuring liability related to this plan (in millions):
 
Severance and benefit costs
 
Lease-related and other costs
 
Total
Balance at March 30, 2019
$
2

 
$
53

 
$
55

ASC 842 (Leases) Adjustment (1)

 
(46
)
 
(46
)
Balance at March 31, 2019
2

 
7


9

Additions charged to expense

 
1

 
1

Payments

 
(7
)
 
(7
)
Balance at September 28, 2019
$
2

 
$
1

 
$
3

 
 
 
 
 
(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 the three and six months ended September 29, 2018, the Company recorded restructuring charges of $2 million and $6 million, respectively, under the Retail Fleet Optimization Plan, which were comprised of lease-related charges.

Other Restructuring Charges
In addition to the restructuring charges related to the Retail Fleet Optimization Plan, the Company incurred charges of $1 million during the three and six months ended September 28, 2019 related to the Company’s intent to exit certain of its agreements in the EMEA region. During the six months ended September 28, 2019 the Company also incurred charges of $2 million relating to Jimmy Choo lease-related charges. The Company also incurred charges of $1 million relating to Jimmy Choo lease-related charges during the three and six months ended September 29, 2018.
Other Costs
During the three months ended September 28, 2019, the Company recorded costs of $6 million primarily in connection with the acquisition of Versace. During the six months ended September 28, 2019, the Company recorded costs of $18 million, which included $13 million in connection with the acquisition of Versace and $5 million in connection with the Jimmy Choo acquisition.
During the three and six months ended September 29, 2018, the Company recorded costs of $16 million and $23 million, respectively, which included $9 million in each period in connection with the acquisition of Versace, as well as $7 million and $14 million, respectively, in connection with the Jimmy Choo acquisition.
v3.19.3
Debt Obligations
6 Months Ended
Sep. 28, 2019
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
The following table presents the Company’s debt obligations (in millions):
 
September 28,
2019
 
March 30,
2019
Term Loan
$
1,435

 
$
1,580

Revolving Credit Facilities
523

 
550

4.000% Senior Notes due 2024
450

 
450

Other
3

 
1

Total debt
2,411

 
2,581

Less: Unamortized debt issuance costs
10

 
13

Less: Unamortized discount on long-term debt
2

 
2

Total carrying value of debt
2,399

 
2,566

Less: Short-term debt
603

 
630

Total long-term debt
$
1,796

 
$
1,936


Senior Unsecured Revolving Credit Facility
The 2018 Credit Facility requires 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 as the ratio of the sum of total indebtedness as of the date of the measurement plus six times the consolidated rent expense for the last four consecutive fiscal quarters, 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. As of September 28, 2019, the Company was in compliance with all covenants related to this agreement.
As of September 28, 2019 and March 30, 2019, the Company had borrowings of $513 million and $539 million, respectively, outstanding under the 2018 Revolving Credit Facility, which were recorded within short-term debt in its consolidated balance sheets. In addition, stand-by letters of credit of $16 million were outstanding as of September 28, 2019. At September 28, 2019, the amount available for future borrowings under the 2018 Revolving Credit Facility was $471 million. As of September 28, 2019 and March 30, 2019, the carrying value of borrowings outstanding under the 2018 Term Loan Facility was $1.428 billion and $1.570 billion, respectively, of which $80 million was recorded within short-term debt in each period and $1.348 billion and $1.490 billion, respectively, was recorded within long-term debt in its consolidated balance sheets.
See Note 11 to the Company’s Fiscal 2019 Annual Report on Form 10-K for additional information regarding the Company’s credit facilities and debt obligations.
v3.19.3
Commitments and Contingencies
6 Months Ended
Sep. 28, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, the Company’s management does not believe that the outcome of all pending legal proceedings in the aggregate will have a material adverse effect on its cash flow, results of operations or financial position.
Please refer to the Contractual Obligations and Commercial Commitments disclosure within the Liquidity section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 for a detailed disclosure of other commitments and contractual obligations as of March 30, 2019.
v3.19.3
Fair Value Measurements
6 Months Ended
Sep. 28, 2019
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 inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

At September 28, 2019 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 14.
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):
 
Fair value at September 28, 2019 using:
 
Fair value at March 30, 2019 using:
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant
other observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant
other observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
Forward foreign currency exchange contracts
$

 
$
6

 
$

 
$

 
$
5

 
$

Net investment hedges

 
109

 

 

 
37

 

Other undesignated derivative contracts

 
1

 

 

 

 

Total derivative assets
$

 
$
116

 
$

 
$

 
$
42

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
Other undesignated derivative contracts
$

 
$
4

 
$

 
$

 
$
5

 
$

Total derivative liabilities
$

 
$
4

 
$

 
$

 
$
5

 
$


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. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the short-term nature of such borrowings. See Note 11 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):
 
September 28, 2019
 
March 30, 2019
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
4.000% Senior Notes
$
445

 
$
459

 
$
445

 
$
438

Term Loan
$
1,428

 
$
1,438

 
$
1,570

 
$
1,574

Revolving Credit Facilities
$
523

 
$
523

 
$
550

 
$
550


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 during the fourth quarter of each fiscal year, 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 Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that carrying amounts of such assets may not be recoverable. This assessment is performed for each long-lived asset group that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The grouping of assets requires a significant amount of judgment. The Company historically grouped certain premier store locations, primarily Michael Kors premier stores, with other Michael Kors stores within the immediate geographic area surrounding the premier store as the Company believed the assets of the store group benefited from the Company’s investments in the premier store. Due to the Company’s recent significant expansion in luxury retail, as well as its continued growth in its global digital business, the Company reassessed its methodology for evaluating impairment of long-lived assets, including the determination of asset groupings. The Company’s luxury retail business generally operates only premier, more luxurious, retail store locations with consistent investments across its individual stores. As a result, during the six months ended September 28, 2019, the Company determined that asset groups at an individual store level represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. As a result of this determination, in the first quarter of Fiscal 2020, the Company identified impairment indicators at certain premier retail store locations and recorded operating lease right-of-use asset and property and equipment impairment charges of $68 million and $11 million, respectively, which are included in the impairment charges detailed in the table below (in millions):
 
Three Months Ended
September 28, 2019
 
Six Months Ended
September 28, 2019
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
Operating Lease Right-of-Use Assets
$
174

 
$
81

 
$
93

 
$
306

 
$
134

 
$
172

Property and Equipment
24

 
14

 
10

 
44

 
21

 
23

Key Money
2

 
1

 
1

 
10

 
4

 
6

Total
$
200

 
$
96

 
$
104

 
$
360

 
$
159

 
$
201


 
Three Months Ended
September 29, 2018
 
Six Months Ended
September 29, 2018
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
Property and Equipment
$
9

 
$
3

 
$
6

 
$
14

 
$
5

 
$
9

Lease Rights
2

 
1

 
1

 
4

 
2

 
2

Total
$
11

 
$
4

 
$
7

 
$
18

 
$
7

 
$
11


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.
v3.19.3
Derivative Financial Instruments
6 Months Ended
Sep. 28, 2019
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.
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 in September 2018 with notional amounts totaling €1.680 billion (approximately $2.001 billion) to mitigate its foreign currency exchange risk through the closing date of the acquisition, which were settled on December 21, 2018. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments that are accounted for as cash flow hedges in the same category as the cash flows from the items being hedged. Accordingly, the Company classified the unrealized gains and losses relating to these derivative instruments within cash flows from investing activities.
Net Investment Hedges
As of September 28, 2019, the Company had multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $3.190 billion to hedge its net investment in Euro-denominated subsidiaries and $44 million to hedge its net investment in Japanese Yen-denominated subsidiaries against future volatility in the exchange rates between U.S. Dollar and these currencies. Under the terms of these contracts, which have maturity dates between January 2022 and June 2026, the Company will exchange the semi-annual fixed rate payments on U.S. denominated debt for fixed rate payments of 0% to 1.674% in Euros and 0.89% in Japanese Yen. These contracts have been designated as net investment hedges.
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 $19 million and $34 million, respectively, during the three and six months ended September 28, 2019 and $3 million and $4 million, respectively, during the three and six months ended September 29, 2018.
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 September 28, 2019 and March 30, 2019 (in millions):
 
 
 
 
 
Fair Values
 
 
Notional Amounts
 
Assets
 
Liabilities
 
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
 
Designated forward foreign currency exchange contracts
$
150

 
$
166

 
$
6

(1) 
$
5

(1) 
$

 
$

 
Designated net investment hedge
3,234

 
2,234

 
109

(2) 
37

(2) 

 

 
Total designated hedges
3,384

 
2,400

 
115

 
42

 

 

 
Undesignated derivative contracts (4)
170

 
199

 
1

(1) 

 
4

(3) 
5

(3) 
Total
$
3,554

 
$
2,599

 
$
116

 
$
42

 
$
4

 
$
5

 
 
 
 
 
 
(1) 
Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2) 
Recorded within other assets in the Company’s consolidated balance sheets.
(3) 
Recorded within accrued expenses and other current liabilities in the Company’s 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 previous 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 September 28, 2019 and March 30, 2019 would be as follows (in millions):
 
Forward Currency Exchange Contracts
 
Net Investment
Hedges
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
Assets subject to master netting arrangements
$
7

 
$
5

 
$
109

 
$
37

Liabilities subject to master netting arrangements
$
4

 
$
5

 
$

 
$

Derivative assets, net
$
6

 
$
5

 
$
109

 
$
37

Derivative liabilities, net
$
3

 
$
5

 
$

 
$


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. 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 investment is sold or liquidated.
The following table summarizes the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28, 2019
 
September 29, 2018
 
September 28, 2019
 
September 29, 2018
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
Designated forward foreign currency exchange contracts
$
6

 
$
1

 
$
6

 
$
10

Designated net investment hedges
$
129

 
$

 
$
104

 
$
5

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 the three and six months ended September 28, 2019 and September 29, 2018 (in millions):
 
Three Months Ended
 
(Gain) Loss Reclassified from
Accumulated OCI
 
Location of (Gain) Loss recognized
 
Total Cost of goods sold
 
September 28, 2019
 
September 29, 2018
 
 
September 28, 2019
 
September 29, 2018
Designated forward foreign currency exchange contracts
$
(2
)
 
$
2

 
Cost of goods sold
 
$
568

 
$
490

 
Six Months Ended
 
(Gain) Loss Reclassified from
Accumulated OCI
 
Location of (Gain) Loss recognized
 
Total Cost of goods sold
 
September 28, 2019
 
September 29, 2018
 
 
September 28, 2019
 
September 29, 2018
Designated forward foreign currency exchange contracts
$
(5
)
 
$
7

 
Cost of goods sold
 
$
1,080

 
$
942


The Company expects that substantially all of the amounts currently 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 the three and six months ended September 28, 2019, the net impact of changes in the fair value of undesignated forward foreign currency exchange contracts recognized within foreign currency loss (gain) in the Company’s consolidated statement of operations and comprehensive income was not material.
During the three and six months ended September 29, 2018, the Company recognized a net loss of $30 million and $29 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 statement of operations and comprehensive income. These amounts were primarily comprised of a $30 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.
v3.19.3
Shareholders' Equity
6 Months Ended
Sep. 28, 2019
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Share Repurchase Program
During the six months ended September 29, 2018, the Company repurchased 1,659,941 shares at a cost of $100 million through open market transactions under its $1.0 billion share-repurchase program, which expired on May 25, 2019. On August 1, 2019, the Company’s Board of Directors authorized a new $500 million share repurchase program, which expires August 1, 2021. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time.
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 the six month periods ended September 28, 2019 and September 29, 2018, the Company withheld 63,223 shares and 106,002 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 the six months ended September 28, 2019 and September 29, 2018, respectively (in millions):
 
Foreign
Currency
Translation
Gains (Losses)
(1)
 
Net (Losses) Gains on
Derivatives
(2)
 
Other Comprehensive Income (Loss) Attributable to Capri
Balance at March 31, 2018
$
61

 
$
(10
)
 
$
51

Other comprehensive (loss) income before reclassifications
(128
)
 
9

 
(119
)
Less: amounts reclassified from AOCI to earnings 

 
(6
)
 
(6
)
Other comprehensive (loss) income, net of tax
(128
)
 
15

 
(113
)
Balance at September 29, 2018
$
(67
)
 
$
5

 
$
(62
)
 
 
 
 
 
 
Balance at March 30, 2019
$
(73
)
 
$
7

 
$
(66
)
Other comprehensive (loss) income before reclassifications
(38
)
 
5

 
(33
)
Less: amounts reclassified from AOCI to earnings

 
4

 
4

Other comprehensive (loss) income, net of tax
(38
)
 
1

 
(37
)
Balance at September 28, 2019
$
(111
)
 
$
8

 
$
(103
)
 
 
 
 
 
(1) 
Foreign currency translation gains and losses for the six months ended September 28, 2019 include net gains of $6 million on intra-entity transactions that are of a long-term investment nature, a $42 million translation loss relating to the inclusion of the Versace business and an $86 million gain, net of taxes of $18 million, relating to the Company’s net investment hedges. Foreign currency translation gains and losses for the six months ended September 29, 2018 include net gains of $8 million on intra-entity transactions that are of a long-term investment nature, a $105 million translation loss relating to the inclusion of the Jimmy Choo business and a $4 million gain, net of taxes of $1 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. All tax effects were not material for the periods presented.
v3.19.3
Share-Based Compensation
6 Months Ended
Sep. 28, 2019
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, one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and the 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 September 28, 2019, 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 September 28, 2019, there were 2,530,245 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.
The following table summarizes the Company’s share-based compensation activity during the six months ended September 28, 2019:
 
Options
 
Service-Based RSUs
 
Performance-Based RSUs
Outstanding/Unvested at March 30, 2019
2,131,259

 
3,839,862

 
737,074

Granted

 
1,869,918

 
169,817

Exercised/Vested

 
(711,173
)
 
(53,025
)
Decrease due to performance condition

 

 
(39,999
)
Canceled/forfeited
(6,452
)
 
(120,970
)
 

Outstanding/Unvested at September 28, 2019
2,124,807

 
4,877,637

 
813,867


The weighted average grant date fair value of service-based and performance-based RSUs granted during the six months ended September 28, 2019 was $33.90 and $33.86, respectively, and $67.39 and $67.52, respectively, during the six months ended September 29, 2018.
Share-Based Compensation Expense
The following table summarizes compensation expense attributable to share-based compensation for the three and six months ended September 28, 2019 and September 29, 2018 (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Share-based compensation expense
$
21

 
$
13

 
$
49

 
$
26

Tax benefit related to share-based compensation expense
$
4

 
$
3

 
$
9

 
$
5


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 September 28, 2019 is approximately $11 million.
See Note 17 in the Company’s Fiscal 2019 Annual Report on Form 10-K for additional information relating to the Company’s share-based compensation awards.
v3.19.3
Income Taxes
6 Months Ended
Sep. 28, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rates for the three and six months ended September 28, 2019 are (5.8)% and 1.7%, respectively. Such rates differ from the United Kingdom (“U.K.”) federal statutory rate of 19% primarily due to the favorable impact from the realization of previously unrecognized tax benefits associated with certain positions in Europe realized during the period and return to provision adjustments in the US and Europe, which resulted in a benefit to the Company’s effective income tax rate for the three and six months ended September 28, 2019. In addition, the Company had favorable effects related to global financing activities. The global financing activities are related to the Company’s 2014 move of its principal executive office from Hong Kong to the U.K. and decision to become a U.K. tax resident. In connection with this decision, the Company funded its international growth strategy through intercompany debt financing arrangements between certain of our U.S., U.K. and Switzerland subsidiaries in December 2015. Due to the difference in the statutory income tax rates between these jurisdictions, the Company realized a lower effective tax rate.
The Company’s effective tax rates for the three and six months ended September 29, 2018 were 9.9% and 9.5%, respectively. Such rates differed from the United Kingdom (“U.K.”) federal statutory rate of 19% primarily due to the favorable effects of global financing arrangements and tax benefits of share-based compensation.
v3.19.3
Segment Information
6 Months Ended
Sep. 28, 2019
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 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, 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 Michael Kors e-commerce business includes e-commerce sites in the U.S., Canada and certain parts of Europe and 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) and impairment costs. 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):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Total revenue:
 
 
 
 
 
 
 
Versace
$
228

 
$

 
$
435

 
$

Jimmy Choo
125

 
116

 
283

 
289

Michael Kors
1,089

 
1,137

 
2,070

 
2,167

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456

 
 
 
 
 
 
 
 
Income (loss) from operations:
 
 
 
 
 
 
 
Versace
$
9

 
$

 
$
6

 
$

Jimmy Choo
(10
)
 
(9
)
 
1

 
13

Michael Kors
222

 
248

 
423

 
478

Total segment income from operations
221

 
239

 
430

 
491

Less: Corporate expenses
(35
)
 
(23
)
 
(68
)
 
(45
)
Restructuring and other charges
(7
)
 
(19
)
 
(22
)
 
(30
)
Impairment of long-lived assets
(104
)
 
(7
)
 
(201
)
 
(11
)
Total income from operations
$
75

 
$
190

 
$
139

 
$
405


Depreciation and amortization expense for each segment are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Depreciation and amortization:
 
 
 
 
 
 
 
Versace
$
15

 
$

 
$
29

 
$

Jimmy Choo
9

 
9

 
17

 
17

Michael Kors
41

 
44

 
79

 
92

Total depreciation and amortization
$
65

 
$
53

 
$
125

 
$
109


Total revenue (based on country of origin) by geographic location are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Total revenue:
 
 
 
 
 
 
 
The Americas (1)
$
802

 
$
793

 
$
1,531

 
$
1,511

EMEA
409

 
289

 
769

 
591

Asia
231

 
171

 
488

 
354

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456


 
 
 
 
 
(1) 
Total revenue earned in the U.S. were $741 million and $1.422 billion, respectively, for the three and six months ended September 28, 2019 and $737 million and $1.405 billion, respectively, for the three and six months ended September 29, 2018.

As of September 28, 2019 and March 30, 2019, the Company's total assets were $8.393 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, which resulted in the Company recording operating lease right-of-use assets of $1.671 billion, of which $1.062 billion related to Michael Kors, $386 million related to Versace, and $223 million related to Jimmy Choo, as of September 28, 2019.
v3.19.3
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Sep. 28, 2019
Accounting Policies [Abstract]  
Consolidation, Policy
The interim 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 interim consolidated financial statements as of September 28, 2019 and for the three and six months ended September 28, 2019 and September 29, 2018 are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 30, 2019, as filed with the Securities and Exchange Commission on May 29, 2019, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year.
Fiscal Period, Policy
The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three and six months ended September 28, 2019 and September 29, 2018, are based on 13-week and 26-week periods, respectively.
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 gift card breakage, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the valuation of and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. 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, including the realignment of the Company’s segment reporting structure in the fourth quarter of Fiscal 2019, as further described in Note 18.
Seasonality The Company experiences certain effects of seasonality with respect to its business.
Inventories, net Inventories mainly consist of finished goods with the exception of raw materials inventory
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 in September 2018 with notional amounts totaling €1.680 billion (approximately $2.001 billion) to mitigate its foreign currency exchange risk through the closing date of the acquisition, which were settled on December 21, 2018. These derivative contracts were not designated as accounting hedges. Therefore, changes in fair value were recorded to foreign currency (gain) loss in the Company’s consolidated statements of operations and comprehensive income. The Company’s accounting policy is to classify cash flows from derivative instruments that are accounted for as cash flow hedges in the same category as the cash flows from the items being hedged. Accordingly, the Company classified the unrealized gains and losses relating to these derivative instruments within cash flows from investing activities.
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 income (loss) 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 income (loss) 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 (gain) loss 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 income (loss) 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 hedged net investment is sold, diluted, or liquidated.
Net Income per Share
The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income 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.
Recently Adopted and 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):
 
March 30, 2019
As Reported under ASC 840
 
ASC 842 Adjustments
 
March 31, 2019
As Reported Under ASC 842
Assets
 
 
 
 
 
Prepaid expenses and other current assets
$
221

 
$
(23
)
(1) 
$
198

Operating lease right-of-use assets

 
1,856

(2) 
1,856

Intangible assets, net
2,293

 
(20
)
(3) 
2,273

Deferred tax assets
112

 
38

(4) 
150

Liabilities
 
 
 
 
 
Current portion of operating lease liabilities

 
386

(5) 
386

Accrued expenses and other current liabilities
374

 
(72
)
(6) 
302

Long-term portion of operating lease liabilities

 
1,828

(5) 
1,828

Deferred Rent
132

 
(132
)
(7) 

Deferred tax liabilities
438

 
(7
)
(4) 
431

Shareholders’ Equity
 
 
 
 
 
Retained earnings
4,707

 
(152
)
(4) 
4,555

 
 
 
 
 
(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 favorable and unfavorable 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 favorable and unfavorable purchase accounting adjustments 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 equipments 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 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
We have considered all new accounting pronouncements and, other than the recent pronouncements discussed below, have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition or cash flows based on current information.
Intangibles
In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether or not the contract conveys a license to the hosted software. ASU 2018-15 is effective beginning with the Company’s Fiscal 2021, with early adoption permitted, and can either be presented prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2018-15 on its consolidated financial statements, but believes it is generally consistent with its current accounting for cloud computing arrangements and will not have a material impact on its consolidated financial statements.
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.
Retail
The Company generates sales through directly operated stores and e-commerce throughout the Americas (U.S., Canada and Latin America, excluding Brazil), EMEA (Europe, Middle East, and Africa) and certain parts of Asia.
Gift Cards. The contract liability related to gift cards, net of estimated “breakage,” was $12 million and $13 million as of September 28, 2019 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 contract liability, net of an estimated “breakage,” of $3 million as of both September 28, 2019 and March 30, 2019 is recorded as a reduction to revenue in the consolidated statements of operations 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.
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 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. 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 September 28, 2019, contractually guaranteed minimum fees from our license agreements expected to be recognized as revenue during future periods were as follows (in millions):
 
 
Contractually Guaranteed Minimum Fees
 
 
Remainder of Fiscal 2020
$
14

 
Fiscal 2021
27

 
Fiscal 2022
27

 
Fiscal 2023
20

 
Fiscal 2024
10

 
Fiscal 2025 and thereafter
34

 
 Total
$
132


Sales Returns
The refund liability recorded as of September 28, 2019 and March 30, 2019 was $35 million in each period and the related asset for the right to recover returned product as of September 28, 2019 and March 30, 2019 was $12 million in each period.
Leases ight-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 rate it would pay 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.
Receivables, net
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.
v3.19.3
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Sep. 28, 2019
Accounting Policies [Abstract]  
Schedule of 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 income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Numerator:
 
 
 
 
 
 
 
Net income attributable to Capri
$
73

 
$
138

 
$
118

 
$
324

Denominator:
 
 
 
 
 
 
 
Basic weighted average shares
151,602,502

 
149,575,112

 
151,326,037

 
149,538,607

Weighted average dilutive share equivalents:
 
 
 
 
 
 
 
Share options and restricted shares/units, and performance restricted share units
973,781

 
2,130,573

 
1,129,181

 
2,514,064

Diluted weighted average shares
152,576,283

 
151,705,685

 
152,455,218

 
152,052,671

 
 
 
 
 
 
 
 
Basic net income per share (1)
$
0.48

 
$
0.92

 
$
0.78

 
$
2.17

Diluted net income per share (1)
$
0.47

 
$
0.91

 
$
0.77

 
$
2.13


 
 
 
 
 
(1) 
Basic and diluted net income per share are calculated using unrounded numbers.
Schedule of Impact of Adoption of New Accounting Pronouncements
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):
 
March 30, 2019
As Reported under ASC 840
 
ASC 842 Adjustments
 
March 31, 2019
As Reported Under ASC 842
Assets
 
 
 
 
 
Prepaid expenses and other current assets
$
221

 
$
(23
)
(1) 
$
198

Operating lease right-of-use assets

 
1,856

(2) 
1,856

Intangible assets, net
2,293

 
(20
)
(3) 
2,273

Deferred tax assets
112

 
38

(4) 
150

Liabilities
 
 
 
 
 
Current portion of operating lease liabilities

 
386

(5) 
386

Accrued expenses and other current liabilities
374

 
(72
)
(6) 
302

Long-term portion of operating lease liabilities

 
1,828

(5) 
1,828

Deferred Rent
132

 
(132
)
(7) 

Deferred tax liabilities
438

 
(7
)
(4) 
431

Shareholders’ Equity
 
 
 
 
 
Retained earnings
4,707

 
(152
)
(4) 
4,555

 
 
 
 
 
(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 favorable and unfavorable 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 favorable and unfavorable purchase accounting adjustments 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 equipments 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 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.
v3.19.3
Revenue Recognition (Tables)
6 Months Ended
Sep. 28, 2019
Revenue from Contract with Customer [Abstract]  
Schedule of Contractually Guaranteed Minimum Fees As of September 28, 2019, contractually guaranteed minimum fees from our license agreements expected to be recognized as revenue during future periods were as follows (in millions):
 
 
Contractually Guaranteed Minimum Fees
 
 
Remainder of Fiscal 2020
$
14

 
Fiscal 2021
27

 
Fiscal 2022
27

 
Fiscal 2023
20

 
Fiscal 2024
10

 
Fiscal 2025 and thereafter
34

 
 Total
$
132


Schedule of Segment Revenues Disaggregated by Geographic Location
The following table presents the Company’s segment revenues disaggregated by geographic location (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Versace revenue - the Americas
$
48

 
$

 
$
92

 
$

Versace revenue - EMEA
121

 

 
213

 

Versace revenue - Asia
59

 

 
130

 

 Total Versace
228

 

 
435

 

 
 
 
 
 
 
 
 
Jimmy Choo revenue - the Americas
21

 
20

 
51

 
46

Jimmy Choo revenue - EMEA
64

 
56

 
143

 
158

Jimmy Choo revenue - Asia
40

 
40

 
89

 
85

Total Jimmy Choo
125

 
116

 
283

 
289

 
 
 
 
 
 
 
 
Michael Kors revenue - the Americas
733

 
773

 
1,388

 
1,465

Michael Kors revenue - the EMEA
224

 
233

 
413

 
433

Michael Kors revenue - the Asia
132

 
131

 
269

 
269

 Total Michael Kors
1,089

 
1,137

 
2,070

 
2,167

 
 
 
 
 
 
 
 
Total revenue - the Americas
802

 
793

 
1,531

 
1,511

Total revenue - EMEA
409

 
289

 
769

 
591

Total revenue - Asia
231

 
171

 
488

 
354

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456

See Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 for a complete disclosure of the Company’s revenue recognition.
v3.19.3
Leases (Tables)
6 Months Ended
Sep. 28, 2019
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):
 
 
Balance Sheet Location
 
September 28,
2019
Assets
 
 
 
 
Operating leases
 
Operating lease right-of-use assets
 
$
1,671

 
 
 
 
 
Liabilities
 
 
 
 
Current:
 
 
 
 
Operating leases
 
Current portion of operating lease liabilities
 
$
403

Non-current:
 
 
 
 
Operating leases
 
Long-term portion of operating lease liabilities
 
$
1,766


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 September 28, 2019:
 
 
 
 
September 28,
2019
Operating leases:
 
 
Weighted average remaining lease term (years)
 
6.5

Weighted average discount rate
 
3.0
%

Schedule of Net Lease Costs and Supplemental Cash Flow Information
The components of net lease costs for the three and six months ended September 28, 2019 were as follows (in millions):
 
 
 
 
September 28, 2019
 
 
Statement of Operations and
Comprehensive Income Location
 
Three Months Ended
 
Six Months Ended
Operating lease cost
 
Selling, general and administrative expenses
 
$
115

 
$
224

Short-term lease cost
 
Selling, general and administrative expenses
 
3

 
13

Variable lease cost
 
Selling, general and administrative expenses
 
39

 
79

Sublease income
 
Selling, general and administrative expenses
 
(2
)
 
(3
)
Total lease cost
 
 
 
$
155

 
$
313

The following table presents the Company’s supplemental cash flow information related to leases (in millions):
 
 
 
 
Six Months Ended
 
 
 
 
September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows used in operating leases
 
$
244

Non-cash transactions:
 
 
Lease assets obtained in exchange for new lease liabilities
 
$
168


Schedule of Contractually Guaranteed Minimum Fees
At September 28, 2019, the future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in millions):
 
 
 
 
September 28,
2019
Remainder of Fiscal 2020
 
 
 
$
243

Fiscal 2021
 
 
 
459

Fiscal 2022
 
 
 
404

Fiscal 2023
 
 
 
346

Fiscal 2024
 
 
 
292

Thereafter
 
 
 
668

Total lease payments
 
 
 
2,412

Less: interest
 
 
 
(243
)
Total lease liabilities
 
 
 
$
2,169

At September 28, 2019, the future minimum sublease income under the terms of these noncancelable operating lease agreements are as follows (in millions):
 
 
 
 
September 28,
2019
Remainder of Fiscal 2020
 
 
 
$
3

Fiscal 2021
 
 
 
6

Fiscal 2022
 
 
 
5

Fiscal 2023
 
 
 
5

Fiscal 2024
 
 
 
4

Thereafter
 
 
 
15

Total sublease income
 
 
 
$
38

Additionally, the Company had approximately $15 million of future payment obligations related to executed lease agreements for which the related lease has not yet commenced as of September 28, 2019.
v3.19.3
Receivables, net (Tables)
6 Months Ended
Sep. 28, 2019
Receivables [Abstract]  
Receivables, net
Receivables, net, consist of (in millions):
 
September 28,
2019
 
March 30,
2019
Trade receivables (1)
$
428

 
$
459

Receivables due from licensees
26

 
23

 
454

 
482

Less: allowances
(86
)
 
(99
)
 
$
368

 
$
383


 
 
 
 
 
(1) 
As of September 28, 2019 and March 30, 2019, $64 million and $317 million, respectively, of trade receivables were insured.
v3.19.3
Property and Equipment, net (Tables)
6 Months Ended
Sep. 28, 2019
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
Property and equipment, net, consists of (in millions):
 
September 28,
2019
 
March 30,
2019
Leasehold improvements
$
656

 
$
639

Computer equipment and software
307

 
292

Furniture and fixtures
298

 
292

In-store shops
272

 
270

Equipment
124

 
123

Building
46

 
47

Land
17

 
15

 
1,720

 
1,678

Less: accumulated depreciation and amortization
(1,205
)
 
(1,115
)
 
515

 
563

Construction-in-progress
74

 
52

 
$
589

 
$
615


v3.19.3
Current Assets and Current Liabilities (Tables)
6 Months Ended
Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in millions):
 
September 28,
2019
 
March 30,
2019
Prepaid taxes
$
187

 
$
125

Interest receivable related to net investment hedges
25

 
11

Unrealized gains on forward foreign currency exchange contracts
7

 
5

Prepaid property and equipment
6

 
7

Prepaid rent (1)

 
24

Other
50

 
49

 
$
275

 
$
221



Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following (in millions):
 
September 28,
2019
 
March 30,
2019
Other taxes payable
$
60

 
$
47

Return liabilities
35

 
35

Accrued capital expenditures
27

 
25

Accrued advertising and marketing
23

 
10

Accrued rent (2)
18

 
34

Gift cards and retail store credits
12

 
13

Professional services
10

 
12

Accrued litigation
10

 
11

Accrued interest
10

 
10

Restructuring liability (1)
7

 
64

Accrued purchases and samples
5

 
29

Other
66

 
84

 
$
283

 
$
374


 
 
 
 
 
(1) 
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 September 28, 2019. See Note 2 and Note 4 for additional information.
(2) 
The accrued rent balance relates to variable lease payments.
v3.19.3
Intangible Assets and Goodwill (Tables)
6 Months Ended
Sep. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
The following table details the carrying values of the Company’s intangible assets and goodwill (in millions):
 
September 28,
2019
 
March 30,
2019
Definite-lived intangible assets:
 
 
 
Reacquired Rights
$
400

 
$
400

Trademarks
23

 
23

Key Money (1)
68

 
96

Customer Relationships
398

(2) 
415

Total definite-lived intangible assets
889

 
934

Less: accumulated amortization
(164
)
 
(143
)
Net definite-lived intangible assets
725

 
791

 
 
 
 
Indefinite-lived intangible assets:
 
 
 
Jimmy Choo brand
539

(2) 
572

Versace brand
907

(2) 
930

 
1,446

 
1,502

 
 
 
 
Total intangible assets, excluding goodwill
$
2,171

 
$
2,293

 
 
 
 
Goodwill
$
1,598

(2) 
$
1,659


 
 
 
 
 
(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.
(2) 
The change in the carrying values since March 30, 2019 reflects currency translation.
Carrying Values of Intangible Assets
The following table details the carrying values of the Company’s intangible assets and goodwill (in millions):
 
September 28,
2019
 
March 30,
2019
Definite-lived intangible assets:
 
 
 
Reacquired Rights
$
400

 
$
400

Trademarks
23

 
23

Key Money (1)
68

 
96

Customer Relationships
398

(2) 
415

Total definite-lived intangible assets
889

 
934

Less: accumulated amortization
(164
)
 
(143
)
Net definite-lived intangible assets
725

 
791

 
 
 
 
Indefinite-lived intangible assets:
 
 
 
Jimmy Choo brand
539

(2) 
572

Versace brand
907

(2) 
930

 
1,446

 
1,502

 
 
 
 
Total intangible assets, excluding goodwill
$
2,171

 
$
2,293

 
 
 
 
Goodwill
$
1,598

(2) 
$
1,659


 
 
 
 
 
(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.
(2) 
The change in the carrying values since March 30, 2019 reflects currency translation.
v3.19.3
Restructuring and Other Charges (Tables)
6 Months Ended
Sep. 28, 2019
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs The below table presents a rollforward of the Company’s remaining restructuring liability related to this plan (in millions):
 
Severance and benefit costs
 
Lease-related and other costs
 
Total
Balance at March 30, 2019
$
2

 
$
53

 
$
55

ASC 842 (Leases) Adjustment (1)

 
(46
)
 
(46
)
Balance at March 31, 2019
2

 
7


9

Additions charged to expense

 
1

 
1

Payments

 
(7
)
 
(7
)
Balance at September 28, 2019
$
2

 
$
1

 
$
3

 
 
 
 
 
(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.
v3.19.3
Debt Obligations (Tables)
6 Months Ended
Sep. 28, 2019
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
The following table presents the Company’s debt obligations (in millions):
 
September 28,
2019
 
March 30,
2019
Term Loan
$
1,435

 
$
1,580

Revolving Credit Facilities
523

 
550

4.000% Senior Notes due 2024
450

 
450

Other
3

 
1

Total debt
2,411

 
2,581

Less: Unamortized debt issuance costs
10

 
13

Less: Unamortized discount on long-term debt
2

 
2

Total carrying value of debt
2,399

 
2,566

Less: Short-term debt
603

 
630

Total long-term debt
$
1,796

 
$
1,936


v3.19.3
Fair Value Measurements (Tables)
6 Months Ended
Sep. 28, 2019
Fair Value Disclosures [Abstract]  
Schedule of 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):
 
Fair value at September 28, 2019 using:
 
Fair value at March 30, 2019 using:
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant
other observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant
other observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
Forward foreign currency exchange contracts
$

 
$
6

 
$

 
$

 
$
5

 
$

Net investment hedges

 
109

 

 

 
37

 

Other undesignated derivative contracts

 
1

 

 

 

 

Total derivative assets
$

 
$
116

 
$

 
$

 
$
42

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
Other undesignated derivative contracts
$

 
$
4

 
$

 
$

 
$
5

 
$

Total derivative liabilities
$

 
$
4

 
$

 
$

 
$
5

 
$


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):
 
September 28, 2019
 
March 30, 2019
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
4.000% Senior Notes
$
445

 
$
459

 
$
445

 
$
438

Term Loan
$
1,428

 
$
1,438

 
$
1,570

 
$
1,574

Revolving Credit Facilities
$
523

 
$
523

 
$
550

 
$
550


Schedule of Long-lived Assets, Nonrecurring As a result of this determination, in the first quarter of Fiscal 2020, the Company identified impairment indicators at certain premier retail store locations and recorded operating lease right-of-use asset and property and equipment impairment charges of $68 million and $11 million, respectively, which are included in the impairment charges detailed in the table below (in millions):
 
Three Months Ended
September 28, 2019
 
Six Months Ended
September 28, 2019
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
Operating Lease Right-of-Use Assets
$
174

 
$
81

 
$
93

 
$
306

 
$
134

 
$
172

Property and Equipment
24

 
14

 
10

 
44

 
21

 
23

Key Money
2

 
1

 
1

 
10

 
4

 
6

Total
$
200

 
$
96

 
$
104

 
$
360

 
$
159

 
$
201


 
Three Months Ended
September 29, 2018
 
Six Months Ended
September 29, 2018
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
 
Carrying Value Prior to Impairment
 
Fair Value
 
Impairment Charge
Property and Equipment
$
9

 
$
3

 
$
6

 
$
14

 
$
5

 
$
9

Lease Rights
2

 
1

 
1

 
4

 
2

 
2

Total
$
11

 
$
4

 
$
7

 
$
18

 
$
7

 
$
11


v3.19.3
Derivative Financial Instruments (Tables)
6 Months Ended
Sep. 28, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of 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 September 28, 2019 and March 30, 2019 (in millions):
 
 
 
 
 
Fair Values
 
 
Notional Amounts
 
Assets
 
Liabilities
 
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
 
Designated forward foreign currency exchange contracts
$
150

 
$
166

 
$
6

(1) 
$
5

(1) 
$

 
$

 
Designated net investment hedge
3,234

 
2,234

 
109

(2) 
37

(2) 

 

 
Total designated hedges
3,384

 
2,400

 
115

 
42

 

 

 
Undesignated derivative contracts (4)
170

 
199

 
1

(1) 

 
4

(3) 
5

(3) 
Total
$
3,554

 
$
2,599

 
$
116

 
$
42

 
$
4

 
$
5

 
 
 
 
 
 
(1) 
Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2) 
Recorded within other assets in the Company’s consolidated balance sheets.
(3) 
Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets.
(4) 
Primarily includes undesignated hedges of foreign currency denominated intercompany balances and inventory purchases.
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 September 28, 2019 and March 30, 2019 would be as follows (in millions):
 
Forward Currency Exchange Contracts
 
Net Investment
Hedges
 
September 28,
2019
 
March 30,
2019
 
September 28,
2019
 
March 30,
2019
Assets subject to master netting arrangements
$
7

 
$
5

 
$
109

 
$
37

Liabilities subject to master netting arrangements
$
4

 
$
5

 
$

 
$

Derivative assets, net
$
6

 
$
5

 
$
109

 
$
37

Derivative liabilities, net
$
3

 
$
5

 
$

 
$


Reclassification out of Accumulated Other Comprehensive Income
The following table summarizes the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28, 2019
 
September 29, 2018
 
September 28, 2019
 
September 29, 2018
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
 
Gains
Recognized in OCI
Designated forward foreign currency exchange contracts
$
6

 
$
1

 
$
6

 
$
10

Designated net investment hedges
$
129

 
$

 
$
104

 
$
5

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 the three and six months ended September 28, 2019 and September 29, 2018 (in millions):
 
Three Months Ended
 
(Gain) Loss Reclassified from
Accumulated OCI
 
Location of (Gain) Loss recognized
 
Total Cost of goods sold
 
September 28, 2019
 
September 29, 2018
 
 
September 28, 2019
 
September 29, 2018
Designated forward foreign currency exchange contracts
$
(2
)
 
$
2

 
Cost of goods sold
 
$
568

 
$
490

 
Six Months Ended
 
(Gain) Loss Reclassified from
Accumulated OCI
 
Location of (Gain) Loss recognized
 
Total Cost of goods sold
 
September 28, 2019
 
September 29, 2018
 
 
September 28, 2019
 
September 29, 2018
Designated forward foreign currency exchange contracts
$
(5
)
 
$
7

 
Cost of goods sold
 
$
1,080

 
$
942


v3.19.3
Shareholders' Equity (Tables)
6 Months Ended
Sep. 28, 2019
Equity [Abstract]  
Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes
The following table details changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes for the six months ended September 28, 2019 and September 29, 2018, respectively (in millions):
 
Foreign
Currency
Translation
Gains (Losses)
(1)
 
Net (Losses) Gains on
Derivatives
(2)
 
Other Comprehensive Income (Loss) Attributable to Capri
Balance at March 31, 2018
$
61

 
$
(10
)
 
$
51

Other comprehensive (loss) income before reclassifications
(128
)
 
9

 
(119
)
Less: amounts reclassified from AOCI to earnings 

 
(6
)
 
(6
)
Other comprehensive (loss) income, net of tax
(128
)
 
15

 
(113
)
Balance at September 29, 2018
$
(67
)
 
$
5

 
$
(62
)
 
 
 
 
 
 
Balance at March 30, 2019
$
(73
)
 
$
7

 
$
(66
)
Other comprehensive (loss) income before reclassifications
(38
)
 
5

 
(33
)
Less: amounts reclassified from AOCI to earnings

 
4

 
4

Other comprehensive (loss) income, net of tax
(38
)
 
1

 
(37
)
Balance at September 28, 2019
$
(111
)
 
$
8

 
$
(103
)
 
 
 
 
 
(1) 
Foreign currency translation gains and losses for the six months ended September 28, 2019 include net gains of $6 million on intra-entity transactions that are of a long-term investment nature, a $42 million translation loss relating to the inclusion of the Versace business and an $86 million gain, net of taxes of $18 million, relating to the Company’s net investment hedges. Foreign currency translation gains and losses for the six months ended September 29, 2018 include net gains of $8 million on intra-entity transactions that are of a long-term investment nature, a $105 million translation loss relating to the inclusion of the Jimmy Choo business and a $4 million gain, net of taxes of $1 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. All tax effects were not material for the periods presented.
v3.19.3
Share-Based Compensation (Tables)
6 Months Ended
Sep. 28, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Activity
The following table summarizes the Company’s share-based compensation activity during the six months ended September 28, 2019:
 
Options
 
Service-Based RSUs
 
Performance-Based RSUs
Outstanding/Unvested at March 30, 2019
2,131,259

 
3,839,862

 
737,074

Granted

 
1,869,918

 
169,817

Exercised/Vested

 
(711,173
)
 
(53,025
)
Decrease due to performance condition

 

 
(39,999
)
Canceled/forfeited
(6,452
)
 
(120,970
)
 

Outstanding/Unvested at September 28, 2019
2,124,807

 
4,877,637

 
813,867


Summary of Compensation Expense Attributable to Share-Based Compensation
The following table summarizes compensation expense attributable to share-based compensation for the three and six months ended September 28, 2019 and September 29, 2018 (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Share-based compensation expense
$
21

 
$
13

 
$
49

 
$
26

Tax benefit related to share-based compensation expense
$
4

 
$
3

 
$
9

 
$
5


v3.19.3
Segment Information (Tables)
6 Months Ended
Sep. 28, 2019
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):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Total revenue:
 
 
 
 
 
 
 
Versace
$
228

 
$

 
$
435

 
$

Jimmy Choo
125

 
116

 
283

 
289

Michael Kors
1,089

 
1,137

 
2,070

 
2,167

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456

 
 
 
 
 
 
 
 
Income (loss) from operations:
 
 
 
 
 
 
 
Versace
$
9

 
$

 
$
6

 
$

Jimmy Choo
(10
)
 
(9
)
 
1

 
13

Michael Kors
222

 
248

 
423

 
478

Total segment income from operations
221

 
239

 
430

 
491

Less: Corporate expenses
(35
)
 
(23
)
 
(68
)
 
(45
)
Restructuring and other charges
(7
)
 
(19
)
 
(22
)
 
(30
)
Impairment of long-lived assets
(104
)
 
(7
)
 
(201
)
 
(11
)
Total income from operations
$
75

 
$
190

 
$
139

 
$
405


Depreciation and Amortization Expense for Each Segment
Depreciation and amortization expense for each segment are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Depreciation and amortization:
 
 
 
 
 
 
 
Versace
$
15

 
$

 
$
29

 
$

Jimmy Choo
9

 
9

 
17

 
17

Michael Kors
41

 
44

 
79

 
92

Total depreciation and amortization
$
65

 
$
53

 
$
125

 
$
109


Total Revenue (as Recognized Based on Country of Origin)
Total revenue (based on country of origin) by geographic location are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Total revenue:
 
 
 
 
 
 
 
The Americas (1)
$
802

 
$
793

 
$
1,531

 
$
1,511

EMEA
409

 
289

 
769

 
591

Asia
231

 
171

 
488

 
354

Total revenue
$
1,442

 
$
1,253

 
$
2,788

 
$
2,456


v3.19.3
Business and Basis of Presentation - Additional Information (Details)
6 Months Ended
Sep. 28, 2019
segment
Accounting Policies [Abstract]  
Number of reportable segments 3
v3.19.3
Summary of Significant Accounting Policies - Additional Information (Details)
€ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
USD ($)
shares
Sep. 29, 2018
USD ($)
shares
Sep. 28, 2019
USD ($)
shares
Sep. 29, 2018
USD ($)
shares
Mar. 30, 2019
USD ($)
Sep. 30, 2018
EUR (€)
Sep. 30, 2018
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Notional amounts $ 3,554,000,000   $ 3,554,000,000   $ 2,599,000,000    
Gift cards and retail store credits 17,000,000   17,000,000   31,000,000    
Raw materials inventory $ 22,000,000   $ 22,000,000   25,000,000    
Anti-dilutive securities excluded from calculation of basic and diluted net income per ordinary share (in shares) | shares 5,822,186 680,869 4,098,382 664,633      
Revenue recognized during period $ 3,000,000 $ 3,000,000 $ 17,000,000 $ 11,000,000      
Contract assets 0   $ 0   0    
Maximum              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Forward contracts term, maximum (no more than)     12 months        
Foreign Currency Gain (Loss)              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Notional amounts             $ 2,001,000,000.000
Forward foreign currency exchange contracts | Not Designated as Hedging Instrument              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Notional amounts $ 170,000,000   $ 170,000,000   $ 199,000,000    
Forward foreign currency exchange contracts | Foreign Currency Gain (Loss) | Not Designated as Hedging Instrument              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Notional amounts | €           € 1,680  
v3.19.3
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 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Numerator:        
Net income attributable to Capri $ 73 $ 138 $ 118 $ 324
Denominator:        
Basic weighted average shares (in shares) 151,602,502 149,575,112 151,326,037 149,538,607
Weighted average dilutive share equivalents:        
Share options and restricted shares/units, and performance restricted share units (in shares) 973,781 2,130,573 1,129,181 2,514,064
Diluted weighted average shares (in shares) 152,576,283 151,705,685 152,455,218 152,052,671
Basic net income per share (in dollars per share) $ 0.48 $ 0.92 $ 0.78 $ 2.17
Diluted net income per share (in dollars per share) $ 0.47 $ 0.91 $ 0.77 $ 2.13
v3.19.3
Summary of Significant Accounting Policies - Adjustments from the Adoption of ASC 842 (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 31, 2019
Mar. 30, 2019
Assets      
Prepaid expenses and other current assets $ 275 $ 198 $ 221
Operating lease right-of-use assets 1,671 1,856  
Intangible assets, net 2,171 2,273 2,293
Deferred tax assets 160 150 112
Liabilities      
Current portion of operating lease liabilities 403 386  
Accrued expenses and other current liabilities 283 302 374
Long-term portion of operating lease liabilities   1,828  
Deferred rent     132
Deferred tax liabilities 440 431 438
Shareholders’ Equity      
Retained earnings $ 4,673 4,555 4,707
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     1,856
Intangible assets, net     (20)
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)
Retail Fleet Optimization Plan      
Shareholders’ Equity      
Sublease liabilities   54  
Current deferred rent and tenant improvements   $ 18  
v3.19.3
Revenue Recognition - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Mar. 30, 2019
Contract With Customer, Asset And Liability [Line Items]          
Deferred loyalty program liabilities $ 17,000,000   $ 17,000,000   $ 31,000,000
Return liabilities 35,000,000   35,000,000   35,000,000
Right to recover returned product 12,000,000   12,000,000   12,000,000
Revenue recognized during period 3,000,000 $ 3,000,000 17,000,000 $ 11,000,000  
Contract assets 0   0   0
Gift Cards          
Contract With Customer, Asset And Liability [Line Items]          
Deferred loyalty program liabilities 12,000,000   12,000,000   13,000,000
Deferred loyalty program liabilities          
Contract With Customer, Asset And Liability [Line Items]          
Deferred loyalty program liabilities $ 3,000,000   $ 3,000,000   $ 3,000,000
v3.19.3
Revenue Recognition - Schedule of Contractually Guaranteed Minimum Fees (Details)
$ in Millions
Sep. 28, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Remainder of Fiscal 2020 $ 14
Fiscal 2021 27
Fiscal 2022 27
Fiscal 2023 20
Fiscal 2024 10
Fiscal 2025 and thereafter 34
Total $ 132
v3.19.3
Revenue Recognition - Schedule of Revenue Disaggregation (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Disaggregation of Revenue [Line Items]        
Total revenue $ 1,442 $ 1,253 $ 2,788 $ 2,456
The Americas        
Disaggregation of Revenue [Line Items]        
Total revenue 802 793 1,531 1,511
EMEA        
Disaggregation of Revenue [Line Items]        
Total revenue 409 289 769 591
Asia        
Disaggregation of Revenue [Line Items]        
Total revenue 231 171 488 354
Versace        
Disaggregation of Revenue [Line Items]        
Total revenue 228 0 435 0
Versace | The Americas        
Disaggregation of Revenue [Line Items]        
Total revenue 48 0 92 0
Versace | EMEA        
Disaggregation of Revenue [Line Items]        
Total revenue 121 0 213 0
Versace | Asia        
Disaggregation of Revenue [Line Items]        
Total revenue 59 0 130 0
Jimmy Choo        
Disaggregation of Revenue [Line Items]        
Total revenue 125 116 283 289
Jimmy Choo | The Americas        
Disaggregation of Revenue [Line Items]        
Total revenue 21 20 51 46
Jimmy Choo | EMEA        
Disaggregation of Revenue [Line Items]        
Total revenue 64 56 143 158
Jimmy Choo | Asia        
Disaggregation of Revenue [Line Items]        
Total revenue 40 40 89 85
Michael Kors        
Disaggregation of Revenue [Line Items]        
Total revenue 1,089 1,137 2,070 2,167
Michael Kors | The Americas        
Disaggregation of Revenue [Line Items]        
Total revenue 733 773 1,388 1,465
Michael Kors | EMEA        
Disaggregation of Revenue [Line Items]        
Total revenue 224 233 413 433
Michael Kors | Asia        
Disaggregation of Revenue [Line Items]        
Total revenue $ 132 $ 131 $ 269 $ 269
v3.19.3
Leases - Narrative (Details)
$ in Millions
Sep. 28, 2019
USD ($)
Changes to lease related balances, net  
Future payment obligations of lease agreements, not yet commenced $ 15
Maximum  
Changes to lease related balances, net  
Term of lease 10 years
v3.19.3
Leases - Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 31, 2019
Assets    
Operating lease right-of-use assets $ 1,671 $ 1,856
Liabilities    
Current operating lease liabilities 403 $ 386
Long-term portion of operating lease liabilities $ 1,766  
v3.19.3
Leases - Comprehensive Income Net Lease Costs (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 28, 2019
Leases [Abstract]    
Operating lease cost $ 115 $ 224
Short-term lease cost 3 13
Variable lease cost 39 79
Sublease income (2) (3)
Total lease cost $ 155 $ 313
v3.19.3
Leases - Supplemental Cash Flow Information Related to Leases (Details)
$ in Millions
6 Months Ended
Sep. 28, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows used in operating leases $ 244
Non-cash transactions:  
Lease assets obtained in exchange for new lease liabilities $ 168
v3.19.3
Leases - Operating Lease Information (Details)
Sep. 28, 2019
Operating leases:  
Weighted average remaining lease term (years) 6 years 6 months
Weighted average discount rate 3.00%
v3.19.3
Leases - Schedule of Contractually Guaranteed Minimum Fees (Details)
$ in Millions
Sep. 28, 2019
USD ($)
Leases [Abstract]  
Remainder of Fiscal 2020 $ 243
Fiscal 2021 459
Fiscal 2022 404
Fiscal 2023 346
Fiscal 2024 292
Thereafter 668
Total lease payments 2,412
Less: interest (243)
Total lease liabilities $ 2,169
v3.19.3
Leases - Future Minimum Sublease Income (Details)
$ in Millions
Sep. 28, 2019
USD ($)
Leases [Abstract]  
Remainder of Fiscal 2020 $ 3
Fiscal 2021 6
Fiscal 2022 5
Fiscal 2023 5
Fiscal 2024 4
Thereafter 15
Total sublease income $ 38
v3.19.3
Acquisitions - Additional Information (Details)
€ in Millions, $ in Millions
3 Months Ended 6 Months Ended
Dec. 31, 2018
EUR (€)
shares
Dec. 31, 2018
USD ($)
shares
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Business Acquisition [Line Items]            
Total revenue     $ 1,442 $ 1,253 $ 2,788 $ 2,456
Net income     73 $ 138 118 $ 324
Gianni Versace S.r.l.            
Business Acquisition [Line Items]            
Total transaction value in a business acquisition € 1,753 $ 2,005        
Shares acquired (in shares) | shares 2,400,000 2,400,000        
Total revenue     228   435  
Net income     $ 9   $ 6  
v3.19.3
Receivables, net - Schedule of Receivables (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 428 $ 459
Receivables due from licensees 26 23
Receivables, gross 454 482
Less: allowances (86) (99)
Receivables, net 368 383
Credit risk assumed by insured    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 64 $ 317
v3.19.3
Receivables, net - Additional Information (Details) - USD ($)
$ in Millions
6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Mar. 30, 2019
Receivables [Abstract]      
Allowance for doubtful accounts $ 15   $ 18
Bad debt expense $ 4 $ 1  
v3.19.3
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Property, Plant and Equipment [Abstract]    
Leasehold improvements $ 656 $ 639
Computer equipment and software 307 292
Furniture and fixtures 298 292
In-store shops 272 270
Equipment 124 123
Building 46 47
Land 17 15
Property and equipment, gross 1,720 1,678
Less: accumulated depreciation and amortization (1,205) (1,115)
Property and equipment, net (excluding construction-in-progress) 515 563
Construction-in-progress 74 52
Property and equipment, net $ 589 $ 615
v3.19.3
Property and Equipment, net - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Jun. 29, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Property, Plant and Equipment [Line Items]          
Depreciation and amortization of property and equipment $ 52   $ 45 $ 99 $ 92
Impairment of long-lived assets     6 23 9
Jimmy Choo And Gianni Versace S.r.l.          
Property, Plant and Equipment [Line Items]          
Impairment of long-lived assets $ 10     12  
Segment Total          
Property, Plant and Equipment [Line Items]          
Impairment of long-lived assets   $ 11   11  
Michael Kors          
Property, Plant and Equipment [Line Items]          
Impairment of long-lived assets       7  
Jimmy Choo          
Property, Plant and Equipment [Line Items]          
Impairment of long-lived assets       $ 4  
Michael Kors Retail          
Property, Plant and Equipment [Line Items]          
Impairment of long-lived assets     $ 4   $ 8
v3.19.3
Current Assets and Current Liabilities - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 31, 2019
Mar. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Prepaid taxes $ 187   $ 125
Interest receivable related to net investment hedges 25   11
Derivative Asset, Current 7   5
Prepaid property and equipment 6   7
Prepaid rent 0   24
Other 50   49
Prepaid expenses and other current assets $ 275 $ 198 $ 221
v3.19.3
Intangible Assets and Goodwill - Carrying Values of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 31, 2019
Mar. 30, 2019
Finite-Lived Intangible Assets [Line Items]      
Total definite-lived intangible assets $ 889   $ 934
Less: accumulated amortization (164)   (143)
Net definite-lived intangible assets 725   791
Indefinite-lived intangible assets 1,446   1,502
Total intangible assets, excluding goodwill 2,171 $ 2,273 2,293
Goodwill 1,598   1,659
Reacquired rights      
Finite-Lived Intangible Assets [Line Items]      
Total definite-lived intangible assets 400   400
Trademarks      
Finite-Lived Intangible Assets [Line Items]      
Total definite-lived intangible assets 23   23
Key Money      
Finite-Lived Intangible Assets [Line Items]      
Total definite-lived intangible assets 68   96
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Total definite-lived intangible assets 398   415
Jimmy Choo      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets 539   572
Gianni Versace S.r.l.      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets $ 907   $ 930
v3.19.3
Current Assets and Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 31, 2019
Mar. 30, 2019
Contract With Customer, Asset And Liability [Line Items]      
Other taxes payable $ 60   $ 47
Return liabilities 35   35
Accrued capital expenditures 27   25
Accrued advertising and marketing 23   10
Accrued rent 18   34
Gift cards and retail store credits 17   31
Professional services 10   12
Accrued litigation 10   11
Accrued interest 10   10
Restructuring liability 7   64
Accrued purchases and samples 5   29
Other 66   84
Accrued expenses and other current liabilities 283 $ 302 374
Gift cards and retail store credits      
Contract With Customer, Asset And Liability [Line Items]      
Gift cards and retail store credits $ 12   $ 13
v3.19.3
Intangible Assets and Goodwill - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Finite-Lived Intangible Assets [Line Items]        
Amortization of intangible assets $ 13,000,000 $ 8,000,000 $ 26,000,000 $ 17,000,000
Impairment of intangible assets   $ 1,000,000   2,000,000
Goodwill and intangible asset impairment charges     0 $ 0
Michael Kors Retail        
Finite-Lived Intangible Assets [Line Items]        
Impairment of intangible assets $ 1,000,000   $ 6,000,000  
v3.19.3
Restructuring and Other Charges - Narrative (Details)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Sep. 28, 2019
USD ($)
store
Sep. 29, 2018
USD ($)
May 31, 2017
USD ($)
store
Restructuring Cost and Reserve [Line Items]          
Transition costs   $ 16 $ 18 $ 23  
Gianni Versace S.r.l.          
Restructuring Cost and Reserve [Line Items]          
Transition costs $ 6 9 13 9  
Jimmy Choo          
Restructuring Cost and Reserve [Line Items]          
Transition costs   7 5 14  
Lease-related and other costs          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges and other charges $ 1   1    
Lease-related and other costs | Jimmy Choo          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges and other charges   1 $ 2 1  
Retail Fleet Optimization Plan          
Restructuring Cost and Reserve [Line Items]          
Number of store closed | store     123    
Restructuring charges and other charges   $ 2 $ 1 $ 6  
Closing costs     $ 95    
Retail Fleet Optimization Plan | Michael Kors Retail          
Restructuring Cost and Reserve [Line Items]          
Number of store closed | store     23    
Retail Fleet Optimization Plan | Severance and benefit costs          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges and other charges     $ 0    
Retail Fleet Optimization Plan | Lease-related and other costs          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges and other charges     $ 1    
Retail Fleet Optimization Plan | Minimum          
Restructuring Cost and Reserve [Line Items]          
Number of stores expected to close | store         100
Expected restructuring charges         $ 100
Retail Fleet Optimization Plan | Maximum          
Restructuring Cost and Reserve [Line Items]          
Number of stores expected to close | store         125
Expected restructuring charges         $ 125
v3.19.3
Restructuring and Other Charges - Schedule of Restructuring and Related Costs (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Mar. 31, 2019
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Restructuring Cost and Reserve [Line Items]          
Transition costs     $ 16 $ 18 $ 23
Restructuring Reserve [Roll Forward]          
Balance at March 30, 2019 $ 64     64  
Balance at September 28, 2019   $ 7   7  
Retail Fleet Optimization Plan          
Restructuring Reserve [Roll Forward]          
Balance at March 30, 2019 55     55  
ASC 842 (Leases) Adjustment (46)        
Additions charged to expense     2 1 6
Payments       (7)  
Balance at September 28, 2019 9 3   3  
Severance and benefit costs | Retail Fleet Optimization Plan          
Restructuring Reserve [Roll Forward]          
Balance at March 30, 2019 2     2  
ASC 842 (Leases) Adjustment 0        
Additions charged to expense       0  
Payments       0  
Balance at September 28, 2019 2 2   2  
Lease-related and other costs          
Restructuring Reserve [Roll Forward]          
Additions charged to expense   1   1  
Lease-related and other costs | Retail Fleet Optimization Plan          
Restructuring Reserve [Roll Forward]          
Balance at March 30, 2019 53     53  
ASC 842 (Leases) Adjustment (46)        
Additions charged to expense       1  
Payments       (7)  
Balance at September 28, 2019 $ 7 1   1  
Gianni Versace S.r.l.          
Restructuring Cost and Reserve [Line Items]          
Transition costs   $ 6 $ 9 $ 13 $ 9
v3.19.3
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Debt Instrument [Line Items]    
Total debt $ 2,411 $ 2,581
Less: Unamortized debt issuance costs 10 13
Less: Unamortized discount on long-term debt 2 2
Total carrying value of debt 2,399 2,566
Less: Short-term debt 603 630
Total long-term debt 1,796 1,936
Term Loan    
Debt Instrument [Line Items]    
Total debt 1,435 1,580
Credit Facility | 2018 Credit Facility | Revolving Credit Facilities    
Debt Instrument [Line Items]    
Total debt 523 550
Less: Short-term debt $ 513 539
4.000% Senior Notes    
Debt Instrument [Line Items]    
Stated interest rate percentage 4.00%  
4.000% Senior Notes | Revolving Credit Facilities    
Debt Instrument [Line Items]    
Total debt $ 450 450
Other    
Debt Instrument [Line Items]    
Total debt $ 3 $ 1
v3.19.3
Debt Obligations - Senior Unsecured Revolving Credit Facility (Details)
$ in Millions
6 Months Ended
Sep. 28, 2019
USD ($)
Mar. 30, 2019
USD ($)
Debt Instrument [Line Items]    
Short-term debt $ 603 $ 630
Long-term debt 2,399 2,566
Revolving Credit Facilities | Credit Facility    
Debt Instrument [Line Items]    
Letter of credit outstanding $ 16  
Revolving Credit Facilities | 2018 Credit Facility | Credit Facility    
Debt Instrument [Line Items]    
Leverage ratio on credit facility 3.75  
Short-term debt $ 513 539
Amount available for future borrowings 471  
2018 Term Loan Facility | Term Loan Facility | Credit Facility    
Debt Instrument [Line Items]    
Short-term debt 80  
Borrowings outstanding 1,428 1,570
Long-term debt $ 1,348 $ 1,490
v3.19.3
Fair Value Measurements - Schedule of Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets $ 116 $ 42
Derivative liabilities 4 5
Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Derivative liabilities 0 0
Fair value, measurements, recurring | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 116 42
Derivative liabilities 4 5
Fair value, measurements, recurring | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Derivative liabilities 0 0
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 6 5
Forward foreign currency exchange contracts | Fair value, measurements, recurring | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Net investment hedges | Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Net investment hedges | Fair value, measurements, recurring | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 109 37
Net investment hedges | Fair value, measurements, recurring | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Other undesignated derivative contracts | Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Derivative liabilities 0 0
Other undesignated derivative contracts | Fair value, measurements, recurring | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 1 0
Derivative liabilities 4 5
Other undesignated derivative contracts | Fair value, measurements, recurring | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Derivative liabilities $ 0 $ 0
v3.19.3
Fair Value Measurements - Schedule of Fair Value Measurement of Long-term Debt (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
4.000% Senior Notes | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure $ 445 $ 445
4.000% Senior Notes | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure 459 438
Term Loan | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure 1,428 1,570
Term Loan | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure 1,438 1,574
Revolving Credit Facilities | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure 523 550
Revolving Credit Facilities | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value disclosure $ 523 $ 550
v3.19.3
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 29, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Mar. 31, 2019
Mar. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Operating lease right-of-use assets impairment $ 68          
Impairment of long-lived assets   $ 6 $ 23 $ 9    
Cumulative effect of adoption as an adjustment     (4,673)   $ (4,555) $ (4,707)
Restatement Adjustment | ASU 2016-02            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Cumulative effect of adoption as an adjustment           $ 152
Segment Total            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Impairment of long-lived assets $ 11   $ 11      
v3.19.3
Fair Value Measurements - Schedule of Impaired Long-lived Assets Carrying Value and Fair Value (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Impairment Charge   $ 6 $ 23 $ 9
Significant unobservable inputs (Level 3) | Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Carrying Value Prior to Impairment $ 200 11 360 18
Fair Value 96 4 159 7
Impairment Charge 104 7 201 11
Operating Lease Right-of-Use Assets | Significant unobservable inputs (Level 3) | Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Carrying Value Prior to Impairment 174   306  
Fair Value 81   134  
Impairment Charge 93   172  
Property and Equipment | Significant unobservable inputs (Level 3) | Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Carrying Value Prior to Impairment 24 9 44 14
Fair Value 14 3 21 5
Impairment Charge 10 6 23 9
Key Money | Significant unobservable inputs (Level 3) | Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Carrying Value Prior to Impairment     10  
Fair Value     4  
Impairment Charge     $ 6  
Leasing rights | Key Money | Significant unobservable inputs (Level 3) | Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Carrying Value Prior to Impairment 2 2   4
Fair Value 1 1   2
Impairment Charge $ 1 $ 1   $ 2
v3.19.3
Derivative Financial Instruments - Additional Information (Details)
€ in Millions, $ in Millions
3 Months Ended 6 Months Ended
Sep. 25, 2018
USD ($)
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Mar. 30, 2019
USD ($)
Sep. 30, 2018
EUR (€)
Sep. 30, 2018
USD ($)
Derivative [Line Items]                
Notional amounts   $ 3,554   $ 3,554   $ 2,599    
Derivative gains (losses) $ 30              
Foreign Currency Gain (Loss)                
Derivative [Line Items]                
Notional amounts               $ 2,001
Designated as Hedging Instrument                
Derivative [Line Items]                
Notional amounts   3,384   3,384   2,400    
Forward Currency Exchange Contracts | Not Designated as Hedging Instrument                
Derivative [Line Items]                
Notional amounts   170   170   199    
Forward Currency Exchange Contracts | Not Designated as Hedging Instrument | Foreign Currency Gain (Loss)                
Derivative [Line Items]                
Notional amounts | €             € 1,680  
Gain (loss) on derivative recognized     $ 30   $ 29      
Net investment hedging | Net investment hedges | Designated as Hedging Instrument                
Derivative [Line Items]                
Notional amounts   3,234   3,234   $ 2,234    
Reduction in interest expense   19 $ 3 34 $ 4      
Net investment hedging | Euro | Net investment hedges | Designated as Hedging Instrument                
Derivative [Line Items]                
Notional amounts   $ 3,190   $ 3,190        
Derivative fixed interest rate   1.674%   1.674%        
Net investment hedging | Japan, Yen | Net investment hedges | Designated as Hedging Instrument                
Derivative [Line Items]                
Notional amounts   $ 44   $ 44        
Derivative fixed interest rate   0.89%   0.89%        
Net investment hedging | US Dollars | Net investment hedges | Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative fixed interest rate   0.00%   0.00%        
v3.19.3
Derivative Financial Instruments - Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Derivatives, Fair Value [Line Items]    
Notional Amounts $ 3,554 $ 2,599
Assets 116 42
Liabilities 4 5
Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional Amounts 3,384 2,400
Assets 115 42
Liabilities 0 0
Not Designated as Hedging Instrument | Forward Currency Exchange Contracts    
Derivatives, Fair Value [Line Items]    
Notional Amounts 170 199
Assets 1 0
Liabilities 4 5
Cash flow hedging | Designated as Hedging Instrument | Forward Currency Exchange Contracts    
Derivatives, Fair Value [Line Items]    
Notional Amounts 150 166
Assets 6 5
Liabilities 0 0
Net investment hedging | Designated as Hedging Instrument | Net investment hedges    
Derivatives, Fair Value [Line Items]    
Notional Amounts 3,234 2,234
Assets 109 37
Liabilities $ 0 $ 0
v3.19.3
Derivative Financial Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Sep. 28, 2019
Mar. 30, 2019
Cash flow hedging | Forward Currency Exchange Contracts    
Derivative [Line Items]    
Assets subject to master netting arrangements $ 7 $ 5
Liabilities subject to master netting arrangements 4 5
Derivative assets, net 6 5
Derivative liabilities, net 3 5
Net investment hedging | Net investment hedges    
Derivative [Line Items]    
Assets subject to master netting arrangements 109 37
Liabilities subject to master netting arrangements 0 0
Derivative assets, net 109 37
Derivative liabilities, net $ 0 $ 0
v3.19.3
Derivative Financial Instruments - Summary of Pre-tax Impact of Gains (Losses) on Derivative (Details) - Designated as Hedging Instrument - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Forward Currency Exchange Contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains Recognized in OCI $ 6 $ 1 $ 6 $ 10
Net investment hedges        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains Recognized in OCI $ 129 $ 0 $ 104 $ 5
v3.19.3
Derivative Financial Instruments - Summary of Pretax Impact of Gain (Loss) Reclassified from AOCI (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Derivative Instruments, Gain (Loss) [Line Items]        
Cost of goods sold $ 568 $ 490 $ 1,080 $ 942
Total Cost of goods sold        
Derivative Instruments, Gain (Loss) [Line Items]        
Cost of goods sold 568 490 1,080 942
Forward Currency Exchange Contracts | Designated as Hedging Instrument        
Derivative Instruments, Gain (Loss) [Line Items]        
Pre-Tax (Gain) Loss Reclassified from Accumulated OCI $ (2) $ 2 $ (5) $ 7
v3.19.3
Shareholders' Equity - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Aug. 01, 2019
Subsidiary or Equity Method Investee [Line Items]          
Ordinary shares, shares repurchased amount $ 0 $ 1,000,000 $ 2,000,000 $ 107,000,000  
Stock Repurchase Program          
Subsidiary or Equity Method Investee [Line Items]          
Ordinary shares, shares repurchased (in shares)       1,659,941  
Ordinary shares, shares repurchased amount       $ 100,000,000  
Ordinary shares repurchased, shares authorized (in shares)   $ 1,000,000,000.0   $ 1,000,000,000.0 $ 500,000,000
Withholding Taxes          
Subsidiary or Equity Method Investee [Line Items]          
Ordinary shares, shares repurchased (in shares)     63,223 106,002  
Ordinary shares, shares repurchased amount     $ 2,000,000 $ 7,000,000  
v3.19.3
Shareholders' Equity - Changes in Components of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance $ 2,324 $ 2,042 $ 2,432 $ 2,022
Other comprehensive (loss) income, net of tax (10) (22) (37) (113)
Ending balance 2,408 2,184 2,408 2,184
Foreign currency translation adjustments (13) (25) (38) (128)
Foreign Currency Translation Gains (Losses)        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance     (73) 61
Other comprehensive (loss) income before reclassifications     (38) (128)
Less: amounts reclassified from AOCI to earnings     0 0
Other comprehensive (loss) income, net of tax     (38) (128)
Ending balance (111) (67) (111) (67)
Net gain (loss) on long-term transactions     6 8
Gain (loss) related to net investment hedges 86 4 86 4
Taxes related to the gain on net investment hedges     18 1
Foreign Currency Translation Gains (Losses) | Gianni Versace S.r.l.        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Foreign currency translation adjustments     (42)  
Foreign Currency Translation Gains (Losses) | Jimmy Choo        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Foreign currency translation adjustments       (105)
Net Gains (Losses) on Derivatives        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance     7 (10)
Other comprehensive (loss) income before reclassifications     5 9
Less: amounts reclassified from AOCI to earnings     4 (6)
Other comprehensive (loss) income, net of tax     1 15
Ending balance 8 5 8 5
Other Comprehensive Income (Loss) Attributable to Capri        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance (93) (40) (66) 51
Other comprehensive (loss) income before reclassifications     (33) (119)
Less: amounts reclassified from AOCI to earnings     4 (6)
Other comprehensive (loss) income, net of tax (10) (22) (37) (113)
Ending balance $ (103) $ (62) $ (103) $ (62)
v3.19.3
Share-Based Compensation - Additional Information (Details)
$ / shares in Units, $ in Millions
6 Months Ended
Sep. 28, 2019
USD ($)
equity_plan
$ / shares
shares
Sep. 29, 2018
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of equity plans | equity_plan 2  
Estimated value of future forfeitures | $ $ 11  
Service-Based RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average grant date fair value of RSUs (in dollar per share) | $ / shares $ 33.90 $ 67.39
Performance-Based RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average grant date fair value of RSUs (in dollar per share) | $ / shares $ 33.86 $ 67.52
2008 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of equity plans adopted | equity_plan 1  
Shares authorized for issuance (up to) (in shares) 23,980,823  
Shares available for grant (in shares) 0  
Option expiration period (years) 10 years  
2012 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares authorized for issuance (up to) (in shares) 15,246,000  
Shares available for grant (in shares) 2,530,245  
Option expiration period (years) 7 years  
v3.19.3
Share-Based Compensation - Summary of Share-based Compensation Activity (Details)
6 Months Ended
Sep. 28, 2019
shares
Options  
Number of Options  
Outstanding at beginning of period (in shares) 2,131,259
Granted (in shares) 0
Exercised (in shares) 0
Canceled/forfeited (in shares) (6,452)
Outstanding at end of period (in shares) 2,124,807
Service-Based RSUs  
Number of Unvested Restricted Shares  
Unvested at beginning of period (in shares) 3,839,862
Granted (in shares) 1,869,918
Vested (in shares) (711,173)
Decrease due to performance condition (in shares) 0
Canceled/forfeited (in shares) (120,970)
Unvested at end of period (in shares) 4,877,637
Performance-Based RSUs  
Number of Unvested Restricted Shares  
Unvested at beginning of period (in shares) 737,074
Granted (in shares) 169,817
Vested (in shares) (53,025)
Decrease due to performance condition (in shares) (39,999)
Canceled/forfeited (in shares) 0
Unvested at end of period (in shares) 813,867
v3.19.3
Share-Based Compensation - Summary of Compensation Expense Attributable to Share-Based Compensation (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Share-based Payment Arrangement [Abstract]        
Share-based compensation expense $ 21 $ 13 $ 49 $ 26
Tax benefit related to share-based compensation expense $ 4 $ 3 $ 9 $ 5
v3.19.3
Income Taxes (Details)
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Operating Loss Carryforwards [Line Items]        
Effective tax rate (5.80%) 9.90% 1.70% 9.50%
United Kingdom | Foreign Tax Authority        
Operating Loss Carryforwards [Line Items]        
Provision for incomes taxes at the U.K. statutory tax rate     19.00% 19.00%
v3.19.3
Segment Information - Additional Information (Details)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Sep. 28, 2019
USD ($)
segment
Sep. 29, 2018
USD ($)
Mar. 31, 2019
USD ($)
Mar. 30, 2019
USD ($)
Segment Reporting Information [Line Items]            
Total revenue $ 1,442 $ 1,253 $ 2,788 $ 2,456    
Number of operating segments | segment     3      
Number of reportable segments | segment     3      
Assets 8,393   $ 8,393     $ 6,650
Operating lease right-of-use assets 1,671   1,671   $ 1,856  
Versace            
Segment Reporting Information [Line Items]            
Total revenue 228 0 435 0    
Operating lease right-of-use assets 386   386      
Jimmy Choo            
Segment Reporting Information [Line Items]            
Total revenue 125 116 283 289    
Operating lease right-of-use assets 223   223      
Michael Kors            
Segment Reporting Information [Line Items]            
Total revenue 1,089 $ 1,137 2,070 $ 2,167    
Operating lease right-of-use assets $ 1,062   $ 1,062      
v3.19.3
Segment Information - Key Performance Information of Reportable Segments (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Segment Reporting [Abstract]        
Total revenue $ 1,442 $ 1,253 $ 2,788 $ 2,456
Segment Reporting Information [Line Items]        
Less: Corporate expenses (35) (23) (68) (45)
Restructuring and other charges [1] (7) (19) (22) (30)
Impairment of long-lived assets (104) (7) (201) (11)
Total income from operations 75 190 139 405
Versace        
Segment Reporting [Abstract]        
Total revenue 228 0 435 0
Segment Reporting Information [Line Items]        
Total income from operations 9 0 6 0
Jimmy Choo        
Segment Reporting [Abstract]        
Total revenue 125 116 283 289
Segment Reporting Information [Line Items]        
Total income from operations (10) (9) 1 13
Michael Kors        
Segment Reporting [Abstract]        
Total revenue 1,089 1,137 2,070 2,167
Segment Reporting Information [Line Items]        
Total income from operations 222 248 423 478
Total segment income from operations        
Segment Reporting Information [Line Items]        
Total income from operations $ 221 $ 239 $ 430 $ 491
[1]
Restructuring and other charges includes store closure costs recorded in connection with the Retail Fleet Optimization Plan (as defined in Note 10) and other restructuring initiatives, and costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.
v3.19.3
Segment Information - Depreciation and Amortization Expense for Each Segment (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Segment Reporting Information [Line Items]        
Depreciation and amortization $ 65 $ 53 $ 125 $ 109
Versace        
Segment Reporting Information [Line Items]        
Depreciation and amortization 15 0 29 0
Jimmy Choo        
Segment Reporting Information [Line Items]        
Depreciation and amortization 9 9 17 17
Michael Kors        
Segment Reporting Information [Line Items]        
Depreciation and amortization $ 41 $ 44 $ 79 $ 92
v3.19.3
Segment Information - Total Revenue (as Recognized Based on Country of Origin) by Geographic Location (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 28, 2019
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 1,442 $ 1,253 $ 2,788 $ 2,456
The Americas        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 802 793 1,531 1,511
EMEA        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 409 289 769 591
Asia        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 231 171 488 354
U.S.        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 741 $ 737 $ 1,422 $ 1,405