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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Schedule of Sales Reserves

The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 28, 2020, March 30, 2019, and March 31, 2018 (in millions):

			Balance Beginning of Year						Amounts Charged to Revenue						Write-offs Against Reserves						Balance at Year End
Retail
Return Reserves:
Fiscal Year Ended March 28, 2020			$	15					$	231					$	(234)					$	12
Fiscal Year Ended March 30, 2019			12						226						(223)						15
Fiscal Year Ended March 31, 2018			7						161						(156)						12

			Balance Beginning of Year						Amounts Charged to Revenue						Write-offs Against Reserves						Balance at Year End
Wholesale
Total Sales Reserves:
Fiscal Year Ended March 28, 2020			$	112					$	266					$	(224)					$	154
Fiscal Year Ended March 30, 2019			109						262						(259)						112
Fiscal Year Ended March 31, 2018			97						258						(246)						109

Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share

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

			Fiscal Years Ended
			March 28, 2020						March 30, 2019						March 31, 2018
Numerator:
Net (loss) income attributable to Capri			$	(223)					$	543					$	592
Denominator:
Basic weighted average shares			150,714,598						149,765,468						152,283,586
Weighted average dilutive share equivalents:
Share options and restricted shares/units, and performance restricted share units			—						1,848,882						2,819,299
Diluted weighted average shares			150,714,598						151,614,350						155,102,885
Basic net (loss) income per share (1)			$	(1.48)					$	3.62					$	3.89
Diluted net (loss) income per share (1)			$	(1.48)					$	3.58					$	3.82

⁽¹⁾Basic and diluted net (loss) income per share are calculated using unrounded numbers.

Schedule of Components of the Cumulative Adjustment for ASC 606

The below table details the balance sheet adjustments recorded on March 31, 2019 in connection with the Company’s adoption of ASU 2016-02 (in millions):

			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			—						1,876			(2)			1,876
Intangible assets, net			2,293						(40)			(3)			2,253
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 lease rights. This balance also reflects the initial impairments of the operating lease right-of-use assets recorded through retained earnings, as described below.

⁽³⁾Represents the reclassifications of lease rights for leases recorded in conjunction with the Company’s acquisitions to operating lease right-of-use assets.

⁽⁴⁾Represents the initial impairment recognized through retained earnings for certain underperforming retail store locations for which property and equipment were previously impaired, net of associated deferred taxes.

⁽⁵⁾Represents the recognition of current and non-current lease liabilities for fixed payments associated with the Company’s operating leases.

⁽⁶⁾Represents the reclassification of $54 million in sublease liabilities, primarily related to Michael Kors retail stores closed under the Michael Kors Retail Fleet Optimization Plan as defined in Note 10, as well as the reclassification of $18 million of deferred rent and tenant allowances to operating lease right-of-use assets.

⁽⁷⁾Represents the reclassification of noncurrent deferred rent and tenant improvement allowances to operating lease right-of-use assets.

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