XML 59 R42.htm IDEA: XBRL DOCUMENT v3.22.1

Taxes (Tables)

12 Months Ended

Apr. 02, 2022

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income (loss) before provision for income taxes consisted of the following (in millions):

			Fiscal Years Ended
			April 2, 2022						March 27, 2021						March 28, 2020
United States			$	247					$	(56)					$	(28)
Non-United States			668						59						(187)
Total income (loss) before provision for income taxes			$	915					$	3					$	(215)

Provision for Income Taxes

The provision for income taxes was as follows (in millions):

			Fiscal Years Ended
			April 2, 2022						March 27, 2021						March 28, 2020
Current
United States - Federal			$	36					$	35					$	4		(1)
United States - State			16						20						19
Non-United States			98						81						60
Total current			150						136						83
Deferred
United States - Federal			24			(2)			(37)						(22)
United States - State			7						(4)						(3)
Non-United States			(89)			(3)			(29)						(48)
Total deferred			(58)						(70)						(73)
Total provision for income taxes			$	92					$	66					$	10

(1)Includes a $35 million current tax benefit due to a release of income tax reserves in the United States.

(2)Impact of United States tax accounting method change filed during Fiscal 2022 with respect to cost capitalization.

(3)Includes an Italian valuation allowance reversal during Fiscal 2022.

Significant Differences Between the Statutory Tax Rates and Company's Effective Tax Rate

The Company’s provision for income taxes for the years ended April 2, 2022, March 27, 2021 and March 28, 2020 was different from the amount computed by applying the statutory U.K. income tax rates to the underlying income (loss) before provision for income taxes as a result of the following (amounts in millions):

			Fiscal Years Ended
			April 2, 2022												March 27, 2021												March 28, 2020
			Amount						% (1)						Amount						% (1)						Amount						% (1)
Provision for income taxes at the U.K. statutory tax rate			$	174					19.0		%				$	1					19.0		%				(41)						19.0		%
Effect of changes in valuation allowances on deferred tax assets			(67)						(7.3)		%				24						955.7		%				67						(30.9)		%	(2)
Effects of global financing arrangements			(56)						(6.1)		%				(24)						(953.4)		%				(41)						21.7		%	(3)
Brand tax basis step-up			(46)						(5.0)		%				—						—		%				—						—		%
CARES Act tax loss carryback			(43)						(4.6)		%				—						—		%				—						—		%
Liability for uncertain tax positions			91						9.9		%				11						414.2		%				(12)						5.7		%
Tax rate change impact on deferred items			21						2.1		%				9						351.3		%				—						—		%
State and local income taxes, net of federal benefit			12						1.3		%				5						201.5		%				4						(1.9)		%
Differences in tax effects on foreign income			10						1.1		%				13						522.4		%				(7)						1.2		%
Withholding tax			5						0.6		%				4						165.0		%				3						(1.6)		%
Share based compensation			3						0.4		%				6						247.7		%				9						(4.2)		%
Non-deductible goodwill impairment			—						—		%				18						700.2		%	(4)			32						(15.1)		%	(4)
Other			(12)						(1.3)		%				(1)						(33.1)		%	(5)			(4)						1.4		%
Effective tax rate			$	92					10.1		%				$	66					2,590.5		%				$	10					(4.7)		%

(1)Tax rates are calculated using unrounded numbers.

(2)Mainly attributable to valuation allowances established on a portion of non-United States deferred tax assets.

(3)Mainly attributable to pre-tax loss position in Fiscal 2020.

(4)Attributable to goodwill impairment charges related to Jimmy Choo reporting units in Fiscal 2021 and Fiscal 2020.

(5)Primarily relates to individually immaterial United States and foreign permanent adjustments.

Significant Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):

			Fiscal Years Ended
			April 2, 2022						March 27, 2021
Deferred tax assets
Operating lease liabilities			$	465					$	501
Net operating loss carryforwards			108						139
Depreciation			53						54
Sales allowances			34						50
Inventories			26						25
Accrued interest			20						44
Stock compensation			7						12
Payroll related accruals			3						3
Derivative financial instruments			—						32
Other			46						42
Total deferred tax assets			762						902
Valuation allowance			(92)			(1)			(159)
Net deferred tax assets			670						743
Deferred tax liabilities
Goodwill and intangibles			(449)			(2)			(495)
Operating lease right-of-use-assets			(340)						(367)
Derivative financial instruments			(73)						—
Total deferred tax liabilities			(862)						(862)
Net deferred tax liabilities			$	(192)					$	(119)

(1)Includes an Italian valuation allowance reversal during Fiscal 2022.

(2)Includes a reversal of a Italian brand intangible deferred tax liability.

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2022, Fiscal 2021 and Fiscal 2020, are presented below (in millions):

			Fiscal Years Ended
			April 2, 2022						March 27, 2021						March 28, 2020
Unrecognized tax benefits beginning balance			$	107					$	99					$	192
Additions related to prior period tax positions			105			(1)			12						29
Additions related to current period tax positions			29			(2)			9						4
Decreases related to audit settlements			(13)			(3)			(6)						(24)			(3)
Decreases in prior period positions due to lapses in statute of limitations			(3)						(4)						(3)
Decreases related to prior period tax positions			(4)						(3)						(99)			(4)
Unrecognized tax benefits ending balance			$	221					$	107					$	99

(1)Primarily relates to incremental reserves in North America and Europe.

(2)Primarily relates to European tax reserves established in Fiscal 2022.

(3)Primarily relates to the effective settlement of a United States audit.

(4)Primarily relates to releases of North American and European tax reserves.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration