Restructuring and Other Charges

3 Months Ended

Jun. 26, 2021

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 two fiscal years, which began during Fiscal 2021 and will continue into 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 three months ended June 26, 2021, the Company closed 10 of its retail stores which have been incorporated into the Capri Retail Store Optimization Program. Net restructuring charges (gains) recorded in connection with the Capri Retail Store Optimization Program during the three months ended June 26, 2021 and June 27, 2020 were $(3) million and $3 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 27, 2021	$	—	$	3	$	3
Additions charged to expense (1)	—		—		—
Payments	—		(1)		(1)

Balance at June 26, 2021	$	—	$	2	$	2

(1)Excludes a net credit of $3 million related to gains on certain lease terminations partially offset by store operating costs for previously closed stores during the three months ended June 26, 2021.

Other Restructuring Charges

In addition to the restructuring charges related to the Capri Retail Store Optimization Program, the Company incurred charges of $1 million during the three months ended June 26, 2021, primarily relating to closures of corporate locations. There were no charges for the three months ended June 27, 2020.

Other Costs

During the three months ended June 26, 2021 and June 27, 2020, the Company recorded costs of $5 million for both periods, primarily related to equity awards associated with the acquisition of Versace.