Leases

12 Months Ended

Apr. 01, 2023

Leases [Abstract]

Leases

Leases

The following table presents the Company’s supplemental balance sheets information related to leases (in millions):

	Balance Sheet Location	April 1, 2023		April 2, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	1,330	$	1,358
Liabilities
Current:
Operating leases	Short-term portion of operating lease liabilities	$	429	$	414
Non-current:
Operating leases	Long-term portion of operating lease liabilities	$	1,348	$	1,467

The components of net lease costs for the fiscal year ended April 1, 2023 and April 2, 2022 were as follows (in millions):

	Consolidated Statement of Operations and Comprehensive Income (Loss) Location	April 1, 2023		April 2, 2022
Operating lease cost	Selling, general and administrative expenses	$	405	$	410
Variable lease cost (1)	Selling, general and administrative expenses	170		135
Short-term lease cost	Selling, general and administrative expenses	8		16
Sublease income	Selling, general and administrative expenses	(9)		(3)
Sublease income (2)	Restructuring and other charges	—		(5)
Total lease cost, net		$	574	$	553

(1)The Company elected to account for rent concessions negotiated in connection with COVID-19 as if it were contemplated as part of the existing contract and these concessions are recorded as variable lease expense. As of the fiscal year ended April 1, 2023 and April 2, 2022, rent concessions due to COVID-19 were $14 million and $15 million, respectively.

(2)The Company recorded sublease income related to certain leases in connection with the Capri Retail Store Optimization plan.

The following table presents the Company’s supplemental cash flow information related to leases (in millions):

	April 1, 2023		April 2, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases	$	501	$	543
Non-cash transactions:
Lease assets obtained in exchange for new lease liabilities	344		332
Rent concessions due to COVID-19	14		15

The following tables summarizes the weighted average remaining lease term and weighted average discount rate related to the Company’s operating lease right-of-use assets and lease liabilities recorded on the balance sheets as of April 1, 2023 and April 2, 2022:

	April 1, 2023		April 2, 2022
Operating leases:
Weighted average remaining lease term (years)	5.9		6.0
Weighted average discount rate	3.3	%	3.1	%

At April 1, 2023, the future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in millions):

	April 1, 2023
Fiscal 2024	$	473
Fiscal 2025	384
Fiscal 2026	297
Fiscal 2027	212
Fiscal 2028	169
Thereafter	427
Total lease payments	1,962
Less: interest	(185)
Total lease liabilities	$	1,777

At April 1, 2023, the future minimum sublease income under the terms of these noncancelable operating lease agreements are as follows (in millions):

	April 1, 2023
Fiscal 2024	$	8
Fiscal 2025	7
Fiscal 2026	5
Fiscal 2027	4
Fiscal 2028	4
Thereafter	8
Total sublease income	$	36

Additionally, the Company had approximately $139 million and $49 million of future payment obligations related to executed lease agreements for which the related lease has not yet commenced as of April 1, 2023 and April 2, 2022, respectively.

See Note 2 for additional information on the Company’s accounting policies related to leases.