Fair Value Measurements (Tables)

6 Months Ended

Sep. 26, 2020

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 26, 2020 using:						Fair value at March 28, 2020 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	$	—	$	2	$	—	$	—	$	1	$	—
Net investment hedges	—		3		—		—		3		—

Total derivative assets	$	—	$	5	$	—	$	—	$	4	$	—

Derivative liabilities:
Forward foreign currency exchange contracts	$	—	$	3	$	—	$	—	$	—	$	—
Net investment hedges	—		42		—		—		—		—
Interest rate swaps	—		1		—		—		—		—

Total derivative liabilities	$	—	$	46	$	—	$	—	$	—	$	—

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 26, 2020				March 28, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
4.000% Senior Notes	$	447	$	437	$	446	$	443
Term Loan	$	985	$	985	$	1,010	$	957
Revolving Credit Facilities	$	346	$	346	$	720	$	720

Schedule of Long-lived Assets, Nonrecurring

The following table details the carrying values and fair values of the Company’s assets that have been impaired during the three and six months ended September 26, 2020 and three and six months ended September 28, 2019 (in millions):


	Three and Six Months Ended September 26, 2020
	Carrying Value Prior to Impairment		Fair Value		Impairment Charge (1)
Operating Lease Right-of-Use Assets	46		26		20
Property and Equipment	5		3		2
Total	$	51	$	29	$	22

(1)Includes $2 million of impairment charges that were recorded within restructuring and other charges related to the Capri Retail Store Optimization Program.


	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	$	176	$	82	$	94	$	316	$	138	$	178
Property and Equipment	24		14		10		44		21		23
Total	$	200	$	96	$	104	$	360	$	159	$	201