Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2022

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 December 31, 2022 using:						Fair value at April 2, 2022 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	$	—	$	—	$	—	$	—	$	4	$	—
Net investment hedges	—		—		—		—		44		—
Undesignated derivative contracts	—		—		—		—		4		—
Total derivative assets	$	—	$	—	$	—	$	—	$	52	$	—

Derivative liabilities:

Net investment hedges	$	—	$	41	$	—	$	—	$	37	$	—


Total derivative liabilities	$	—	$	41	$	—	$	—	$	37	$	—

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):


	December 31, 2022				April 2, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Revolving Credit Facilities	$	580	$	580	$	175	$	175
Versace Term Loan	$	481	$	481	$	—	$	—
Senior Notes due 2024	$	448	$	429	$	448	$	451
2018 Term Loan	—		—		$	495	$	490

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 nine months ended December 31, 2022 and the three and nine months ended December 25, 2021 (in millions):


	Three Months Ended December 31, 2022						Nine Months Ended December 31, 2022
	Carrying Value Prior to Impairment		Fair Value		Impairment Charge		Carrying Value Prior to Impairment		Fair Value		Impairment Charge
Operating Lease Right-of-Use Assets	$	2	$	1	$	1	$	27	$	17	$	10
Property and Equipment	—		—		—		3		1		2
Total	$	2	$	1	$	1	$	30	$	18	$	12


	Three Months Ended December 25, 2021						Nine Months Ended December 25, 2021
	Carrying Value Prior to Impairment		Fair Value		Impairment Charge(1)		Carrying Value Prior to Impairment		Fair Value		Impairment Charge(1)
Operating Lease Right-of-Use Assets	$	10	$	—	$	10	$	93	$	53	$	40
Property and Equipment	—		—		—		4		1		3
Total	$	10	$	—	$	10	$	97	$	54	$	43

(1) Includes $10 million of impairment charges that were recorded within restructuring and other charges related to the Capri Retail Store Optimization Program for both the three and nine months ended December 25, 2021.