Shareholders' Equity

3 Months Ended

Jun. 27, 2020

Shareholders’ Equity

Share Repurchase Program

During the first quarter of Fiscal 2021, the Company suspended its $500 million share-repurchase program in response to the continued impact of the COVID-19 pandemic. During the three months ended June 27, 2020, the Company did not purchase any shares through open market transactions under the current plan. As of June 27, 2020, the remaining availability under the Company’s share repurchase program was $400 million. During the three months ended June 29, 2019, the Company did not purchase any shares through open market transactions under its previous $1.0 billion share-repurchase program, which expired on May 25, 2019. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading transactions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time.

The 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 three month periods ended June 27, 2020 and June 29, 2019, the Company withheld 38,119 shares and 58,304 shares, respectively, with a fair value of $1 million and $2 million, respectively, in satisfaction of minimum tax withholding obligations relating to the vesting of restricted share awards.

Accumulated Other Comprehensive (Loss) Income

The following table details changes in the components of accumulated other comprehensive (loss) income (“AOCI”), net of taxes for the three months ended June 27, 2020 and June 29, 2019, respectively (in millions):


	Foreign Currency Translation (Losses) Gains ⁽¹⁾		Net Gains (Losses) on Derivatives ⁽²⁾		Other Comprehensive (Loss) Income Attributable to Capri
Balance at March 30, 2019	$	(73)	$	7	$	(66)
Other comprehensive (loss) income before reclassifications	(25)		—		(25)
Less: amounts reclassified from AOCI to earnings	—		2		2
Other comprehensive (loss) income, net of tax	(25)		(2)		(27)
Balance at June 29, 2019	$	(98)	$	5	$	(93)

Balance at March 28, 2020	$	72	$	3	$	75
Other comprehensive (loss) income before reclassifications	(3)		—		(3)
Less: amounts reclassified from AOCI to earnings	—		1		1
Other comprehensive (loss) income, net of tax	(3)		(1)		(4)
Balance at June 27, 2020	$	69	$	2	$	71

⁽¹⁾Foreign currency translation gains and losses for the three months ended June 27, 2020 include net gains of $1 million on intra-entity transactions that are of a long-term investment nature. Foreign currency translation gains and losses for the three months ended June 29, 2019 include net gains of $3 million on intra-entity transactions that are of a long-term investment nature, a $28 million translation gain relating to the Versace business and a $21 million loss, net of taxes of $4 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 (loss) income. All tax effects were not material for the periods presented.