Restructuring and Other Charges

9 Months Ended

Dec. 26, 2020

Restructuring and Related Activities [Abstract]

Capri Retail Store Optimization Program

As previously announced, the Company intends to close approximately 170 of its retail stores over the next two fiscal years (Fiscal 2021 and Fiscal 2022) in connection with its Capri Retail Store Optimization Program in order to improve the profitability of its retail store fleet. In addition, the Company expects to incur approximately $75 million of one-time costs related to this program, including lease termination and other store closure costs, the majority of which are expected to result in future cash expenditures.

During the nine months ended December 26, 2020, the Company closed 66 of its retail stores which have been incorporated into the Capri Retail Store Optimization Program. Net restructuring charges recorded in connection with the Capri Retail Store Optimization Program during the three and nine months ended December 26, 2020 were $(4) million and $1 million, respectively. The below table presents a roll forward of the Company's restructuring liability related to its Capri Retail Store Optimization Program (in millions):


	Severance and benefit costs		Lease-related and other costs		Total
Balance at March 28, 2020	$	—	$	—	$	—
Additions charged to expense (1)	1		9		10
Payments	(1)		(10)		(11)
Other	—		3		3
Balance at December 26, 2020	$	—	$	2	$	2

(1)Excludes a net credit of $9 million related to lease termination gains of previously impaired operating lease right-of-use assets partially offset by additional impairments for the stores closing under the Company’s Capri Retail Store Optimization Program during the nine months ended December 26, 2020.

Michael Kors Retail Fleet Optimization Plan

During the three and nine months ended December 28, 2019, the Company incurred charges of $5 million and $6 million, respectively, relating to the Michael Kors Retail Fleet Optimization Plan, which was completed during the fourth quarter of Fiscal 2020.

Other Restructuring Charges

In addition to the restructuring charges related to the Capri Retail Store Optimization Program, the Company incurred charges of $2 million during the three and nine months ended December 26, 2020, respectively, primarily relating to closures of corporate locations.

The Company incurred $2 million and $5 million of restructuring charges related to the Michael Kors Retail Fleet Optimization Plan, during the three and nine months ended December 28, 2019, respectively, primarily consisting of lease-related costs.

Other Costs

During the three and nine months ended December 26, 2020, the Company recorded costs of $3 million and $15 million, respectively, primarily related to equity awards associated with the acquisition of Versace.

During the three months ended December 28, 2019, the Company recorded costs of $8 million, primarily related to equity awards associated with the acquisition of Versace. During the nine months ended December 28, 2019, the Company recorded costs of $26 million, which included $18 million, primarily related to equity awards associated with the acquisition of Versace, and $8 million, primarily related to equity awards associated with the acquisition of Jimmy Choo.