Shareholders' Equity

9 Months Ended

Dec. 26, 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 and the provisions of the Second Amendment of the 2018 Credit Facility, which imposes incremental restrictions, including restrictions to pay dividends or make other distribution or repurchase or redeem capital stocks. During the nine months ended December 26, 2020, the Company did not purchase any shares through open market transactions under the current plan. As of December 26, 2020, the remaining availability under the Company’s share repurchase program was $400 million. During the nine months ended December 28, 2019, the Company repurchased 2,711,807 shares through open market transactions at a cost of $100 million under its $500 million share-repurchase program. 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 nine month periods ended December 26, 2020 and December 28, 2019, the Company withheld 48,147 shares and 63,958 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 Income (Loss)

The following table details changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, for the nine months ended December 26, 2020 and December 28, 2019, respectively (in millions):


	Foreign Currency Translation Gains (Losses) (1)		Net Gains (Losses) on Derivatives (2)		Other Comprehensive Income (Loss) Attributable to Capri
Balance at March 28, 2020	$	72	$	3	$	75
Other comprehensive income (loss) before reclassifications	26		(7)		19
Less: amounts reclassified from AOCI to earnings	—		3		3
Other comprehensive income (loss), net of tax	26		(10)		16
Balance at December 26, 2020	$	98	$	(7)	$	91

Balance at March 30, 2019	$	(73)	$	7	$	(66)
Other comprehensive income before reclassifications	40		4		44
Less: amounts reclassified from AOCI to earnings	—		7		7
Other comprehensive income (loss), net of tax	40		(3)		37
Balance at December 28, 2019	$	(33)	$	4	$	(29)

(1)Foreign currency translation gains and losses for the nine months ended December 26, 2020 include a net loss of $7 million on intra-entity transactions that are of a long-term investment nature, and a $198 million loss, net of taxes of $64 million, relating to the Company's net investment hedges, which was offset by a net $227 million translation gain. Foreign currency translation gains and losses for the nine months ended December 28, 2019 include net gains of $3 million on intra-entity transactions that are of a long-term investment nature, a $4 million translation loss relating to the Versace business and an $44 million gain, net of taxes of $9 million, relating to the Company’s net investment hedges.

(2)Reclassified amounts primarily 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 income. All tax effects were not material for the periods presented.