Restructuring and Other Charges

12 Months Ended

Mar. 28, 2020

Restructuring and Related Activities [Abstract]

Michael Kors Retail Fleet Optimization Plan

During Fiscal 2020, the Company completed its plan to close between 100 and 150 of its Michael Kors retail stores in order to improve the profitability of its retail store fleet (“Michael Kors Retail Fleet Optimization Plan”). The Company expected approximately $100 - $125 million of one-time costs associated with these store closures, with total costs in line with its original expectations. Collectively, the Company continues to anticipate ongoing savings as a result of the store closures and lower depreciation expense associated with the impairment charges being recorded.

During Fiscal 2020, the Company closed 43 of its Michael Kors retail stores under the Michael Kors Retail Fleet Optimization Plan, for a total of 143 stores closed at a cost of $99 million since plan inception. Restructuring charges recorded in connection with the Michael Kors Retail Fleet Optimization Plan during Fiscal 2020 was $5 million. The below table presents a rollforward of the Company’s remaining restructuring liability related to this plan (in millions):


	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	—		5		5

Payments	(1)		(8)		(9)
Balance at March 28, 2020	$	1	$	4	$	5

⁽¹⁾Consists of the reclassification of sublease liabilities to an offset of the related operating lease right-of-use asset due to the adoption of ASC 842. See Note 2 and Note 4 for further information.

During Fiscal 2019, the Company recorded restructuring charges of $41 million under the Michael Kors Retail Fleet Optimization Plan, which were comprised of lease-related charges of $38 million and severance and benefit costs of $3 million. During Fiscal 2018, the Company recorded restructuring charges of $53 million under the Michael Kors Retail Fleet Optimization Plan, which were comprised of lease-related charges of $52 million and severance and benefit costs of $1 million.

Other Restructuring Charges

In addition to the restructuring charges related to the Michael Kors Retail Fleet Optimization Plan, the Company incurred charges of $3 million primarily consisting of lease-related costs during Fiscal 2020. The Company also incurred charges of $4 million relating to Jimmy Choo lease-related charges during Fiscal 2019.

Other Costs

During Fiscal 2020, the Company recorded costs of $34 million, which included $24 million in connection with the Versace acquisition and $9 million in connection with the acquisition of Jimmy Choo, and $1 million in connection with the acquisition of Gozzi.

During Fiscal 2019, the Company recorded costs of $79 million, which included $52 million in connection with the Versace acquisition and $27 million in connection with the Jimmy Choo acquisition. During Fiscal 2018, the Company recorded costs of $49 million in connection with the Jimmy Choo acquisition. See Note 5 for additional information relating to these acquisitions.