View Filing Data

Print Document View Excel Document

Cover Page	12 Months Ended
Cover Page	Mar. 29, 2020 shares
Document Information [Line Items]
Entity Registrant Name	CANADA GOOSE HOLDINGS INC.
Entity Central Index Key	0001690511
Document Type	20-F
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Mar. 29, 2020
Current Fiscal Year End Date	--03-29
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Subordinate Voting Shares
Document Information [Line Items]
Entity Common Stock Outstanding (shares)	58,999,182
Multiple Voting Shares
Document Information [Line Items]
Entity Common Stock Outstanding (shares)	51,004,076

Consolidated Statements of Income and Comprehensive Income - CAD ($) $ in Millions	12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Mar. 31, 2018
Profit or loss [abstract]
Revenue	$ 958.1	$ 830.5	$ 591.2
Cost of sales	364.8	313.7	243.6
Gross profit	593.3	516.8	347.6
Selling, general and administrative expenses	350.5	302.1	200.1
Depreciation and amortization	50.7	18.0	9.4
Operating income	192.1	196.7	138.1
Net interest and other finance costs	28.4	14.2	12.9
Income before income taxes	163.7	182.5	125.2
Income tax expense	12.0	38.9	29.1
Net income	151.7	143.6	96.1
Items that will not be reclassified to earnings, net of tax:
Actuarial loss on post-employment obligation	(0.2)	(0.7)	(0.3)
Items that may be reclassified to earnings, net of tax:
Cumulative translation adjustment	9.4	(1.3)	3.2
Net (loss) gain on derivatives designated as cash flow hedges	(2.4)	(4.6)	0.1
Reclassification of net (gain) loss on cash flow hedges to income	(3.7)	3.8	(1.3)
Net (loss) gain on derivatives designated as a net investment hedge	(0.3)	3.5	(3.5)
Other comprehensive income (loss)	2.8	0.7	(1.8)
Comprehensive income	$ 154.5	$ 144.3	$ 94.3
Earnings per share
Basic (CAD per share)	$ 1.38	$ 1.31	$ 0.90
Diluted (CAD per share)	$ 1.36	$ 1.28	$ 0.86

Consolidated Statements of Financial Position - CAD ($) $ in Millions	Mar. 29, 2020	Mar. 31, 2019
Current assets
Cash	$ 31.7	$ 88.6
Trade receivables	32.3	20.4
Inventories	412.3	267.3
Income taxes receivable	12.0	4.0
Other current assets	35.9	32.9
Total current assets	524.2	413.2
Deferred income taxes	40.8	12.2
Property, plant and equipment	115.1	84.3
Intangible assets	161.7	155.6
Right-of-use assets	211.8	0.0
Other long-term assets	6.0	7.0
Goodwill	53.1	53.1
Total assets	1,112.7	725.4
Current liabilities
Accounts payable and accrued liabilities	136.8	110.4
Provisions	15.6	8.1
Income taxes payable	13.0	18.1
Short-term borrowings	0.0	0.0
Lease liabilities	35.9	0.0
Total current liabilities	201.3	136.6
Provisions	21.4	14.7
Deferred income taxes	15.1	16.7
Revolving facility	0.0	0.0
Term loan	158.1	145.2
Lease liabilities	192.0	0.0
Other long-term liabilities	4.6	13.1
Total liabilities	592.5	326.3
Shareholders' equity	520.2	399.1
Total liabilities and shareholders' equity	$ 1,112.7	$ 725.4

Consolidated Statements of Changes in Equity - CAD ($) $ in Millions	Total	Share capital	Share capital Multiple voting shares	Share capital Subordinate voting shares	Contributed Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Shareholders’ equity, opening balance at Mar. 31, 2017	$ 146.1	$ 103.3	$ 2.2	$ 101.1	$ 4.1	$ 40.0	$ (1.3)
Convert multiple voting shares to subordinate voting shares		0.0	(0.3)	0.3
Exercise of stock options	1.2	2.8	0.0	2.8	(1.6)
Net income	96.1					96.1
Other comprehensive income (loss)	(1.8)						(1.8)
Recognition of share-based payment	2.0				2.0
Shareholders’ equity, closing balance at Mar. 31, 2018	243.6	106.1	1.9	104.2	4.5	136.1	(3.1)
Issuance of subordinate voting shares in business combination	1.5	1.5	0.0	1.5
Convert multiple voting shares to subordinate voting shares		0.0	(0.5)	0.5
Exercise of stock options	3.1	5.0	0.0	5.0	(1.9)
Net income	143.6					143.6
Other comprehensive income (loss)	0.7						0.7
Recognition of share-based payment	6.6				6.6
Shareholders’ equity, closing balance at Mar. 31, 2019	399.1	112.6	1.4	111.2	9.2	279.7	(2.4)
IFRS 16 initial application	(4.9)					(4.9)
Normal course issuer bid purchase of subordinate voting shares	(38.7)	(1.6)		(1.6)		(37.1)
Exercise of stock options	2.4	3.7	0.0	3.7	(1.3)
Net income	151.7					151.7
Other comprehensive income (loss)	2.8						2.8
Recognition of share-based payment	7.8				7.8
Shareholders’ equity, closing balance at Mar. 29, 2020	$ 520.2	$ 114.7	$ 1.4	$ 113.3	$ 15.7	$ 389.4	$ 0.4

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2019-01-01
-Paragraph 18
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=7&code=ifrs-tx-2019-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2019-03-27

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 24
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2019-03-27

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2019-03-27

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 28
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2019-03-27

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
-Number 4
-IssueDate 2019-01-01
-Paragraph 39L
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=4&code=ifrs-tx-2019-en-b&anchor=para_39L_e&doctype=Standard
-URIDate 2019-03-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 23
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_23&doctype=Standard
-URIDate 2019-03-27

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2019-03-27

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2019-03-27

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2021-01-01
-Name IFRS
-Number 17
-IssueDate 2019-01-01
-Paragraph 113
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2019-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2019-03-27

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 81A
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2019-03-27

+ Details

Consolidated Statements of Changes in Equity (Parenthetical) - CAD ($) $ in Millions	12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Statement of changes in equity [abstract]
Tax recovery from share-based compensation	$ 0.0	$ 2.8

Consolidated Statements of Cash Flows - CAD ($) $ in Millions	12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net income	$ 151.7	$ 143.6	$ 96.1
Items not affecting cash:
Depreciation and amortization	63.1	22.7	14.2
Income tax expense	12.0	38.9	29.1
Interest expense	20.4	13.7	12.5
Foreign exchange (gain) loss	(0.7)	2.7	(8.6)
Acceleration of unamortized costs on debt extinguishment	7.0	0.0	0.0
Loss on disposal of assets	1.7	0.2	0.2
Share-based payment	8.5	3.8	2.0
Total items not affecting cash	263.7	225.6	145.5
Changes in non-cash operating items	(130.6)	(100.7)	(2.3)
Income taxes paid	(52.1)	(41.0)	(7.4)
Interest paid	(18.5)	(10.5)	(9.6)
Net cash from operating activities	62.5	73.4	126.2
Investing activities
Purchase of property, plant and equipment	(45.3)	(30.3)	(26.1)
Investment in intangible assets	(17.0)	(19.0)	(7.7)
Business combination	0.0	(33.6)	(0.6)
Net cash used in investing activities	(62.3)	(82.9)	(34.4)
Financing activities
Net repayments on debt facilities	0.0	0.0	(8.8)
Transaction costs on financing activities	(2.3)	0.0	(0.3)
Subordinate voting shares purchased for cancellation	(38.7)	0.0	0.0
Principal paid on lease liabilities	(24.7)	0.0	0.0
Settlement of term loan derivative contracts	4.6	0.0	0.0
Exercise of stock options	2.4	3.1	1.2
Net cash (used in) from financing activities	(58.7)	3.1	(7.9)
Effects of foreign currency exchange rate changes on cash	1.6	(0.3)	1.7
(Decrease) increase in cash	(56.9)	(6.7)	85.6
Cash, beginning of period	88.6	95.3	9.7
Cash, end of period	$ 31.7	$ 88.6	$ 95.3

The Company	12 Months Ended
The Company	Mar. 29, 2020
Corporate Information And Statement Of IFRS Compliance [Abstract]
The Company	The Company Organization Canada Goose Holdings Inc. and its subsidiaries (the “Company”) design, manufacture, and sell performance luxury apparel for men, women, youth, children, and babies. The Company’s apparel collections include various styles of parkas, lightweight down jackets, rainwear, windwear, knitwear, footwear, and accessories for fall, winter, and spring seasons. The Company’s head office is located at 250 Bowie Avenue, Toronto, Canada M6E 4Y2. The use of the terms “Canada Goose”, “we”, “us” and “our” throughout these notes to the consolidated financial statements refer to the Company. Canada Goose is a public company listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol “GOOS”. The principal shareholders of the Company are investment funds advised by Bain Capital LP and its affiliates (“Bain Capital”), and DTR LLC, DTR (CG) Limited Partnership, and DTR (CG) II Limited Partnership (collectively “DTR”), entities indirectly controlled by the President and Chief Executive Officer of the Company. The principal shareholders hold multiple voting shares representing 46.4% of the total shares outstanding as at March 29, 2020, or 89.6% of the combined voting power of the total voting shares outstanding. Subordinate voting shares that trade on public markets represent 53.6% of the total shares outstanding as at March 29, 2020, or 10.4% of the combined voting power of the total voting shares outstanding. Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements were authorized for issuance by the Company’s Board of Directors on June 2, 2020. Change in fiscal period Effective April 1, 2019, the Company changed its fiscal year from a calendar basis of twelve months ended March 31 to a 52 or 53-week reporting cycle with the fiscal year ending on the Sunday closest to March 31. Each fiscal quarter is 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. The Company's first 53-week fiscal year will occur in fiscal 2022. The 2020 fiscal year comprises four fiscal quarters ending on June 30, 2019, September 29, 2019, December 29, 2019, and March 29, 2020. The Company has not adjusted financial results for quarters prior to fiscal 2020. In these consolidated financial statements, the term "year ended March 29, 2020" refers to the 52-week period ended March 29, 2020 (364 days) and the term "year ended March 31, 2019" refers to the twelve months ended March 31, 2019 (365 days). Operating segments The Company classifies its business in three operating and reportable segments: Direct-to-Consumer, Wholesale, and Other. The Direct-to-Consumer segment comprises sales through country-specific e-commerce platforms and its Company-owned retail stores located in luxury shopping locations. The Wholesale segment comprises sales made to a mix of functional and fashionable retailers, including major luxury department stores, outdoor specialty stores, and individual shops, and to international distributors. In the fourth quarter of fiscal 2020, the Company revised the previous Unallocated segment to the Other segment. The Other segment comprises sales and costs not directly allocated to the Direct-to-Consumer or Wholesale channels, such as sales to employees and selling, general and administrative expenses not directly allocated to the Direct-to-Consumer or Wholesale segments. The Other segment includes the cost of marketing expenditures to build brand awareness across all segments, corporate costs in support of manufacturing operations, other corporate costs and foreign exchange gains and losses not specifically associated with Direct-to-Consumer or Wholesale segment operations. It also includes overhead costs resulting from the temporary closure of our manufacturing facilities in March 2020 due to COVID-19. Comparative information has been restated to conform with the presentation adopted in the current year. Seasonality Our business is seasonal, and we have historically realized a significant portion of our Wholesale revenue and operating income in the second and third quarters of the fiscal year and Direct-to-Consumer revenue and operating income in the third and fourth quarters of the fiscal year. Thus, lower-than-expected revenue in these periods could have an adverse impact on our annual operating results. Cash flows from operating activities are typically highest in the third and fourth quarters of the fiscal year due to revenue from the Direct-to-Consumer segment and the collection of trade receivables from Wholesale revenue earlier in the year. Working capital requirements typically increase as inventory builds. Borrowings have historically increased in the first and second quarters and been repaid in the third quarter of the fiscal year.

Significant accounting policies

12 Months Ended

Mar. 29, 2020

Corporate Information And Statement Of IFRS Compliance [Abstract]

Significant accounting policies


(a)	Basis of presentation

The consolidated financial statements are presented in Canadian dollars, the Company’s functional and presentation currency.

These consolidated financial statements have been prepared on the historical cost basis except for the following items, which are recorded at fair value:


•	financial instruments, including derivative financial instruments, at fair value in other comprehensive income and through profit or loss as described in note 21, and


•	initial recognition of assets acquired and liabilities assumed in a business combination as described in note 5.

The significant accounting policies set out below have been applied consistently in the preparation of the consolidated financial statements for all periods presented, with the exception of IFRS 16, Leases ("IFRS 16") effective April 1, 2019, as described in note 4. The Company elected the modified retrospective approach on adoption of the standard, and has not restated prior periods.


(b)	Principles of consolidation

The consolidated financial statements include the accounts of Canada Goose Holdings Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated.


(c)	Foreign currency translation and transactions

The functional currency of each of the Company’s subsidiaries is the currency of the primary economic environment in which each entity operates. The assets and liabilities of subsidiaries whose functional currency is not the Canadian dollar are translated into the functional currency of the Company using the exchange rate at the reporting date. Revenues and expenses are translated at exchange rates prevailing at the transaction date. The resulting foreign exchange translation differences are recorded as a currency translation adjustment in other comprehensive income.

Foreign currency transactions are translated into the functional currency of each of the Company’s subsidiaries using the exchange rates prevailing at the date of the transactions or valuation when items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the changes at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income in selling, general and administrative expenses, except when included in other comprehensive income for qualifying cash flow and net investment hedges.

Change in functional currency of subsidiary

Each entity within the Company determines its functional currency based on the primary economic environment in which the entity operates. Once an entity's functional currency is determined, it is not changed unless there is a change to the underlying transactions, events, and conditions that determine the entity's primary economic environment.

Through the year ending March 31, 2019, the functional currency of Canada Goose US, Inc., the operating subsidiary in the United States ("U.S."), was determined to be Canadian dollars because its wholesale operations were carried out as an extension of the business of the Canadian parent and were therefore integrated with the Canadian operations.

The U.S. subsidiary is responsible for all of the Company's direct-to-consumer and wholesale operations in the United States, which now include substantial retail operations, assets and related lease financing. The Company reassessed the functional currency of the U.S. subsidiary in light of the change in circumstances and determined it was no longer an integral foreign operation and that the primary economic environment in which it operates is the United States; as a result, the functional currency of the U.S. subsidiary was changed from Canadian dollars to U.S. dollars, effective April 1, 2019. The change was made on a prospective basis.


(d)	Revenue recognition

Revenue comprises of Direct-to-Consumer, Wholesale and Other segment revenues. Revenue is measured at the amount of consideration to which the Company expects to be entitled in exchange for the sale of goods in the ordinary course of the Company’s activities. Revenue is presented net of sales tax, estimated returns, sales allowances, and discounts. The Company recognizes revenue when the Company has agreed terms with its customers, the contractual rights and payment terms have been identified, the contract has commercial substance, it is probable that consideration will be collected by the Company, and when control of the goods is transferred to the customer have been met.

It is the Company’s policy to sell merchandise through the Direct-to-Consumer channel with a limited right to return, typically within 30 days. Accumulated experience is used to estimate and provide for such returns.


(e)	Business combinations

Acquisitions of businesses are accounted for using the acquisition method as of the acquisition date, which is the date when control is transferred to the Company. The consideration transferred in a business combination is measured at fair value, calculated as the sum of the acquisition date fair values of the assets transferred, liabilities incurred by the Company, and the equity interests issued by the Company in exchange for control of the acquiree. Transaction costs that the Company incurs in connection with a business combination are recognized in the statement of income as incurred.

Goodwill is measured as the excess of the sum of the fair value of the consideration transferred over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities assumed.

When the consideration transferred in a business combination includes contingent consideration, the contingent consideration is measured at its acquisition date fair value. Contingent consideration is remeasured at subsequent reporting dates at its fair value, and the resulting gain or loss recognized in the statement of income.


(f)	Earnings per share

Basic earnings per share is calculated by dividing net income attributable to ordinary equity holders by the weighted average number of multiple and subordinated voting shares outstanding during the year.

Diluted earnings per share is calculated by dividing net income attributable to ordinary equity holders of the Company by the weighted average number of multiple and subordinated voting shares outstanding during the year plus the weighted average number of subordinate shares that would be issued on the exercise of stock options and settlement of restricted share units (“RSUs”).


(g)	Income taxes

Current and deferred income taxes are recognized in the statement of income, except when it relates to a business combination, or items recognized in equity or in other comprehensive income.

Current income tax

Current income tax is the expected income tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to income tax payable in respect of previous years.

Deferred income tax

Deferred income tax is provided using the liability method for temporary differences at the reporting date between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax is measured using enacted or substantively enacted income tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A deferred tax asset is recognized for unused income tax losses and credits to the extent that it is probable that future taxable income will be available against which they can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable income will allow the deferred tax asset to be recovered.

Deferred income tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred tax relates to the same taxable entity and the same taxation authority.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.


(h)	Cash

Cash consists of cash and cash equivalents, including cash on hand, deposits in banks, and short-term deposits with maturities of less than three months. The Company uses the indirect method of reporting cash flows from operating activities.


(i)	Trade receivables

Trade receivables, including credit card receivables, consist of amounts owing on product sales where we have extended credit to customers, and are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less expected credit loss and sales allowances. The allowance for expected credit losses is recorded against trade receivables and is based on historical experience.


(j)	Inventories

Raw materials, work-in-process, and finished goods are valued at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of work-in-process and finished goods inventories include the cost of raw materials and an applicable share of the cost of labour and fixed and variable production overhead costs, including the depreciation of property, plant and equipment used in the production of finished goods and design costs, and other costs incurred to bring the inventories to their present location and condition.

The Company estimates net realizable value as the amount at which inventories are expected to be sold, taking into consideration fluctuations in selling prices due to seasonality, less estimated costs necessary to complete the sale.

Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining selling prices. Inventory is adjusted to reflect estimated loss (“shrinkage”) incurred since the last inventory count. Shrinkage is based on historical experience. When circumstances that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in realizable value, the amount of the write-down previously recorded is reversed.

Storage costs, indirect administrative overhead and certain selling costs related to inventories are expensed in the period that these costs are incurred.


(k)	Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and any accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset, including costs incurred to prepare the asset for its intended use and capitalized borrowing costs, when the recognition criteria are met. The commencement date for capitalization of costs occurs when the Company first incurs expenditures for the qualifying assets and undertakes the required activities to prepare the assets for their intended use.

Property, plant and equipment assets are depreciated on a straight-line basis over their estimated useful lives when the assets are available for use. When significant parts of a fixed asset have different useful lives, they are accounted for as separate components and depreciated separately. Depreciation methods and useful lives are reviewed annually and are adjusted for prospectively, if appropriate. Estimated useful lives are as follows:



Asset Category	Estimated Useful Life
Plant equipment	10 years
Computer hardware	5 years
Leasehold improvements	Lesser of the lease term or useful life of the asset
Show displays	5 years
Furniture and fixtures	5 to 15 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is included in the statement of income when the asset is derecognized.

The cost of repairs and maintenance of property, plant and equipment is expensed as incurred and recognized in the statement of income.

Property, plant and equipment are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset is then tested for impairment by comparing its recoverable amount to its carrying value. Any resulting impairment loss is recorded in the statement of income.


(l)	Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets with finite lives are carried at cost less any accumulated amortization and any accumulated impairment losses.

An internally generated intangible asset is recorded for product development costs which are included within intellectual property. Product development costs are incurred in the design, production and testing of new products where the technical feasibility of commercial manufacturing and sale of the product has been demonstrated.

The useful lives of intangible assets are assessed as either finite or indefinite.



Asset Category	Estimated Useful Life
Brand name	Indefinite
Domain name	Indefinite
ERP software	5 to 7 years
Computer software	5 years
Intellectual property	1 to 8 years

Intangible assets with indefinite useful lives comprise of the Canada Goose and Baffin brand names (note 5) and domain name, which were acquired as part of an acquisition and were recorded at their estimated fair value. The brand names and domain name are considered to have an indefinite life based on a history of revenue and cash flow performance, and the intent and ability of the Company to support the brand with spending to maintain its value for the foreseeable future. The brand names and domain name are tested at least annually for impairment, at the cash-generating unit (“CGU”) level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

Intangible assets with finite lives are amortized over the useful economic life on a straight-line basis. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income over the asset’s estimated useful life.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from its use. Gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are included in the statement of income when the asset is derecognized.

Intangible assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset is then tested for impairment by comparing its recoverable amount to its carrying value. Any resulting impairment loss is recorded in the statement of income.

Lease rights in connection with the opening of new Company-owned retail stores are recorded based on the amount paid. Lease rights have a definite useful life of the lease term and are amortized on a straight-line basis over the term. Upon the adoption of IFRS 16, lease rights were transferred from intangible assets and recognized as initial direct costs in the measurement of right-of-use assets (note 4).


(m)	Leases

The Company recognizes a right-of-use asset and a lease liability based on the present value of the future lease payments at the commencement date. The commencement date is when the lessor makes the leased asset available for use by the Company, typically the possession date. The discount rate used in the present value calculation for lease payments is the incremental borrowing rate for each leased asset or portfolio of leased assets with similar characteristics by reference to the Company’s creditworthiness, the security, term and value of the underlying leased asset, and the economic environment in which the leased asset operates. The lease term is determined as the non-cancellable periods of a lease, together with periods covered by a renewal option if the Company is reasonably certain to exercise that option and a termination option if the Company is reasonably certain not to exercise that option.

Leases of low-value assets and short-term leases are not included in the calculation of lease liabilities. These lease expenses are recognized in cost of sales or selling, general, and administrative expenses on a straight-line or other systematic basis.

Lease liabilities

Lease liabilities are measured at the present value of future lease payments, discounted using the Company’s incremental borrowing rates, and include the fixed payments, variable lease payments that depend on an index or a rate, less any lease incentives receivable. Subsequent to initial measurement, the Company measures lease liabilities at amortized cost using the effective interest rate method. Lease liabilities are remeasured when there are changes to the lease payments, lease term, assessment of an option to purchase the underlying asset, expected residual value guarantee, or future lease payments due to a change in the index or rate tied to the payment.

Right-of-use assets

Right-of-use assets are measured at the initial amount of the lease liabilities, lease payments made at or before the commencement date less any lease incentives received, initial direct costs, if any, and decommissioning costs to restore the site to the condition required by the terms and conditions of the lease. Subsequent to initial measurement, the Company applies the cost model to the right-of-use assets and measures the asset at cost less any accumulated depreciation, accumulated impairment losses in accordance with IAS 36, and any remeasurements of the lease liabilities. Assets are depreciated from the commencement date on a straight-line basis over the earlier of the end of the assets’ useful lives or the end of the lease terms.


(n)	Goodwill

Goodwill represents the difference between the purchase price of an acquired business and the Company’s share of the net identifiable assets acquired and liabilities assumed and any contingent liabilities assumed. It is initially recorded at cost and subsequently measured at cost less any accumulated impairment losses.

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to CGUs based on the lowest level within the entity in which the goodwill is monitored for internal management purposes. The allocation is made to the CGUs that are expected to benefit from the business combination in which the goodwill arose. Any potential impairment of goodwill is identified by comparing the recoverable amount of a CGU to its carrying value. An impairment loss is recognized if the carrying amount of CGU exceeds its recoverable amount. Any loss identified is first applied to reduce the carrying amount of goodwill allocated to the CGU, and then to reduce the carrying amounts of the remaining assets in the CGU on a pro-rata basis. The Company tests goodwill for impairment annually at the reporting date.

The recoverable amount of a CGU is the higher of the estimated fair value less costs of disposal or value-in-use of the CGU. In assessing value-in-use, the estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

The Company has determined that the goodwill contributes to the cash flows of seven CGUs (March 31, 2019 - seven CGUs).


(o)	Provisions

Provisions are recognized when the Company has a present obligation, legal or constructive, as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized in the statement of income.

The provision for warranty returns relates to the Company’s obligation for defective goods sold to customers that have yet to be returned for exchange or repair. Accruals for warranty returns are estimated on the basis of historical returns and are recorded so as to allocate them to the same period the corresponding revenue is recognized.


(p)	Employee future benefits

The Company sponsors a defined benefit pension plan membership, which is limited to certain employees of Canada Goose International AG and other subsidiaries who reside in Switzerland.

The measurement date for the defined benefit pension plan is March 29, 2020, the reporting date. The obligation associated with the Company’s defined benefit pension plan is actuarially valued using the projected unit credit method and management’s best estimate of the discount rate, future salary increases, mortality rates and retirement rates. Assets are measured at fair value. The obligation in excess of plan assets is recorded as a liability. All actuarial gains or losses, net of tax, are recognized immediately through other comprehensive income.


(q)	Fair values

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

•in the principal market for the asset or liability, or


•	in the absence of a principal market, in the most advantageous market for the asset or liability.

The Company uses valuation techniques that it believes are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

For the purpose of fair value disclosures, the Company determines classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

There was no change in the valuation techniques applied to financial instruments during all periods presented. The following table describes the valuation techniques used in the determination of the fair values of financial instruments:



Type	Valuation Approach
Cash, trade receivables, accounts payable and accrued liabilities	The carrying amount approximates fair value due to the short term maturity of these instruments.
Derivatives (included in other current assets, other long-term assets, accounts payable and accrued liabilities or other long-term liabilities)	Specific valuation techniques used to value derivative financial instruments include: - quoted market prices or dealer quotes for similar instruments; - observable market information as well as valuations determined by external valuators with experience in the financial markets.
Short-term borrowings, revolving facility, term loan and lease liabilities	The fair value is based on the present value of contractual cash flows, discounted at the Company’s current incremental borrowing rate for similar types of borrowing arrangements or, where applicable, market rates.


(r)	Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities classified at fair value through profit or loss) are added to, or deducted from, the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities classified at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets and financial liabilities are measured subsequently as described below.


i)	Non-derivative financial assets

Non-derivative financial assets include cash and trade receivables which are measured at amortized cost. The Company initially recognizes receivables and deposits on the date that they are originated. The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.


ii)	Non-derivative financial liabilities

Non-derivative financial liabilities include accounts payable, accrued liabilities, short-term borrowings, the revolving facility, and the term loan. The Company initially recognizes debt instruments on the date that they are originated. All other financial liabilities are recognized initially on the trade date on which the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire.


iii)	Derivative financial instruments

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The method of recognizing the resulting gain or loss depends on whether the derivative is designated and effective as a hedging instrument. When a derivative financial instrument, including an embedded derivative, is not designated and effective in a qualifying hedge relationship, all changes in its fair value are recognized immediately in the statement of income; attributable transaction costs are recognized in the statement of income as incurred. The Company does not use derivatives for trading or speculative purposes.

Embedded derivatives are separated from a host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related.


iv)	Hedge accounting

The Company is exposed to the risk of currency fluctuations and has entered into currency derivative contracts to hedge its exposure on the basis of planned transactions. Where hedge accounting is applied, the criteria are documented at the inception of the hedge and updated at each reporting date. The Company documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking the hedging transactions. The Company also documents its assessment, at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items.

The fair value of a hedging derivative is classified as a current asset or liability when the maturity of the hedged item is less than twelve months, and as a non-current asset or liability when the maturity of the hedged item is more than twelve months.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized, net of tax, in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the statement of income. Amounts accumulated in other comprehensive income are transferred to the statement of income in the periods when the hedged item affects net income. When a forecast transaction that is hedged results in the recognition of a non-financial asset or liability, such as inventory, the amounts are included in the measurement of the cost of the related asset or liability. The deferred amounts are ultimately recognized in the statement of income.

Hedges of net investments are accounted for similarly to cash flow hedges, with unrealized gains and losses recognized, net of tax, in other comprehensive income. Amounts included in other comprehensive income are transferred to the statement of income in the period when the foreign operation is disposed of or sold.


(s)	Share-based payments

Share-based payments are valued based on the grant date fair value of these awards and the Company records compensation expense over the corresponding service period. The fair value of the share-based payments is determined using acceptable valuation techniques.

The Company has issued stock options to purchase subordinate voting shares and RSUs under its equity incentive plans, prior to the public offering on March 21, 2017 (the “Legacy Plan”) and subsequently (the “Omnibus Plan”). Under the terms of the Legacy Plan, options were granted to certain employees of the Company with vesting contingent upon meeting the service, performance goals and exit event conditions of the Legacy Plan. There are two types of stock options: service-vested options are time based and generally vest over five years of service, and performance-based and exit event options vest upon attainment of performance conditions and the occurrence of an exit event. Under the terms of the Omnibus Plan, options are granted to certain executives of the Company with vesting, generally over four years, contingent upon meeting the service conditions of the Omnibus Plan. The compensation expense related to the options and RSUs is recognized ratably over the requisite service period, provided it is probable that the vesting conditions will be achieved and the occurrence of the exit event, if applicable, is probable.

Significant accounting judgments, estimates, and assumptions	12 Months Ended
	Mar. 29, 2020
Corporate Information And Statement Of IFRS Compliance [Abstract]
Significant accounting judgments, estimates, and assumptions	Significant accounting judgments, estimates, and assumptions The preparation of the consolidated financial statements requires management to make estimates and judgments in applying the Company’s accounting policies that affect the reported amounts and disclosures made in the consolidated financial statements and accompanying notes. Estimates and assumptions are used mainly in determining the measurement of balances recognized or disclosed in the consolidated financial statements and are based on a set of underlying data that may include management’s historical experience, knowledge of current events and conditions and other factors that are believed to be reasonable under the circumstances. Management continually evaluates the estimates and judgments it uses. These estimates and judgments have been applied in a manner consistent with prior periods and there are no known trends, commitments, events or uncertainties that we believe will materially affect the methodology or assumptions utilized in making these estimates and judgments in these financial statements. The following are the accounting policies subject to judgments and key sources of estimation uncertainty that the Company believes could have the most significant impact on the amounts recognized in the consolidated financial statements. Functional currency Judgments Made in Relation to Accounting Policies Applied: The Company assesses the relevant factors related to the primary economic environment in which its entities operate to determine the functional currency. Where the assessment of primary indicators is mixed, management assesses the secondary indicators, including the relationship between the foreign operations and reporting entity. Business combinations Key Sources of Estimation: In a business combination, the identifiable assets acquired and liabilities assumed will be recognized at their fair values. The Company makes judgments and estimates in determining the fair values. The excess of the purchase price over the fair values of identifiable assets acquired and liabilities assumed will be recognized as goodwill, if positive, and if negative, it is recognized in the statement of income. Income and other taxes Key Sources of Estimation: In determining the recoverable amount of deferred tax assets, the Company forecasts future taxable income by legal entity and the period in which the income occurs to ensure that sufficient taxable income exists to utilize the attributes. Inputs to those projections are Board-approved financial forecasts and statutory tax rates. Judgments Made in Relation to Accounting Policies Applied: The calculation of current and deferred income taxes requires management to make certain judgments regarding the tax rules in jurisdictions where the Company performs activities. Application of judgments is required regarding the classification of transactions and in assessing probable outcomes of claimed deductions including expectations about future operating results, the timing and reversal of temporary differences and possible audits of income tax and other tax filings by the tax authorities. Trade receivables Key Sources of Estimation: The Company has a significant number of customers which minimizes the concentration of credit risk. The Company does not have any customers which account for more than 10% of sales or accounts receivable. We make ongoing estimates relating to the ability to collect our accounts receivable and maintain an allowance for estimated credit losses resulting from the inability of our customers to make required payments. In determining the amount of expected credit losses, we consider our historical level of credit losses and make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Inventories Key Sources of Estimation: Inventories are carried at the lower of cost and net realizable value. In estimating net realizable value, the Company uses estimates related to fluctuations in inventory levels, planned production, customer behaviour, obsolescence, future selling prices, seasonality and costs necessary to sell the inventory. Inventory is adjusted to reflect shrinkage incurred since the last inventory count. Shrinkage is based on historical experience. Leases Judgments Made in Relation to Accounting Policies Applied: The Company exercises judgment when contracts are entered into that may give rise to a right-of-use asset that would be accounted for as a lease. Judgment is required in determining the appropriate lease term on a lease by lease basis. The Company considers all facts and circumstances that create an economic incentive to exercise a renewal option or to not exercise a termination option at inception and over the term of the lease, including investments in major leaseholds, operating performance, and changed circumstances. The periods covered by renewal or termination options are only included in the lease term if the Company is reasonably certain to exercise that option. Changes in the economic environment or changes in the retail industry may impact the assessment of the lease term and any changes in the estimate of lease terms may have a material impact on the Company’s statement of financial position. Key Sources of Estimation: The critical assumptions and estimates used in determining the present value of future lease payments require the Company to estimate the incremental borrowing rate specific to each leased asset or portfolio of leased assets. Management determines the incremental borrowing rate of each leased asset or portfolio of leased assets by incorporating the Company’s creditworthiness, the security, term, and value of the underlying leased asset, and the economic environment in which the leased asset operates. The incremental borrowing rates are subject to change mainly due to macroeconomic changes in the environment. Impairment of non-financial assets (goodwill, intangible assets, property, plant & equipment, and right-of-use assets) Judgments Made in Relation to Accounting Policies Applied: Management is required to use judgment in determining the grouping of assets to identify their CGUs for the purposes of testing non-financial assets for impairment. Judgment is further required to determine appropriate groupings of CGUs for the level at which goodwill and intangible assets are tested for impairment. For the purpose of goodwill and intangible assets impairment testing, CGUs are grouped at the lowest level at which goodwill and intangible assets are monitored for internal management purposes. Judgment is also applied in allocating the carrying amount of assets to CGUs. In addition, judgment is used to determine whether a triggering event has occurred requiring an impairment test to be completed. The Company has concluded that it has seven CGUs (March 31, 2019 - seven CGUs) and tests goodwill and these intangible assets for impairment on that basis. Key Sources of Estimation: In determining the recoverable amount of a CGU or a group of CGUs, various estimates are employed. The Company determines value-in-use by using estimates including projected future revenues, margins, costs, and capital investment consistent with strategic plans presented to the Board of Directors. Fair value less costs of disposal are estimated with reference to observable market transactions. Discount rates are consistent with external industry information reflecting the risk associated with the Company and its cash flows. Warranty Key Sources of Estimation: The critical assumptions and estimates used in determining the warranty provision at the statement of financial position date are: the number of jackets expected to require repair or replacement; the proportion to be repaired versus replaced; the period in which the warranty claim is expected to occur; the cost to repair a jacket; the cost to replace a jacket, and the risk-free rate used to discount the provision to present value. Financial instruments Key Sources of Estimation: The critical assumptions and estimates used in determining the fair value of financial instruments are: equity prices; future interest rates; the relative creditworthiness of the Company to its counterparties; estimated future cash flows; discount rates, and volatility utilized in option valuations. Share-based payments Key Sources of Estimation: Compensation expense for share-based compensation granted is measured at the fair value at the grant date using the Black Scholes option pricing model for the year ended March 29, 2020; prior to the public offering, the Company used the Monte Carlo valuation model to measure the fair value of options granted. The critical assumptions used under both of these option valuation models at the grant date are: stock price valuation; exercise price; risk-free interest rate; expected time to exercise in years; expected dividend yield, and volatility.

Changes in accounting policies

12 Months Ended

Mar. 29, 2020

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Changes in accounting policies

Standards issued and adopted

Leases

The Company adopted IFRS 16 on April 1, 2019 using the modified retrospective approach with the cumulative effects of initial application recorded in opening retained earnings and no restatement of prior period financial information. Under the modified retrospective approach, the Company measured the right-of-use asset at the carrying value as if the standard had been applied since the commencement date of the lease (typically the possession date), but using the discount rate at the date of initial application.

The Company determined the discount rate at the time of initial adoption to be its incremental borrowing rate for each leased asset or portfolio of leased assets with similar characteristics by reference to the Company’s creditworthiness, the security, term, and value of the underlying leased asset, and the economic environment in which the leased asset operates.

Substantially all of the Company’s leases are real estate leases for retail stores, manufacturing facilities, and corporate offices. The Company recognized right-of-use assets and lease liabilities for its leases except as permitted by recognition exemptions in the standard for short-term leases with terms of twelve months or less and leases of low-value assets. The depreciation expense on right-of-use assets and interest expense on lease liabilities replaced rent expense, which was previously recognized on a straight-line basis over the lease term under IAS 17.

In applying IFRS 16 for the first time, the Company has used the following practical expedients permitted by the standard:


•	the Company has applied a single discount rate to a portfolio of leases with reasonably similar underlying characteristics;


•	the Company has excluded initial direct costs in the measurement of the right-of-use asset on initial application except to the extent that costs, such as lease rights, were recognized under the previous standard;


•	the Company has accounted for leases with a remaining term of less than twelve months as at March 31, 2019 as short-term leases; and


•	the Company has used hindsight in determining the lease term where the lease contains options to extend or terminate the lease.

On the date of initial application, the impact of adopting IFRS 16 on the Company’s statement of financial position as at April 1, 2019 was as follows:



Condensed Financial Position Information
Increase (decrease)
	As previously reported, March 31, 2019	IFRS 16 initial application		Reclassification of initial direct costs		Income tax		Balance as at April 1, 2019 - IFRS 16
Assets	$	$		$		$		$
Current assets
Other current assets	32.9	(0.9	)	—		—		32.0

Deferred income taxes	12.2	—		—		1.2		13.4
Intangible assets	155.6	—		(5.5	)	—		150.1
Right-of-use assets	—	136.6		5.5		—		142.1

Liabilities
Current liabilities
Lease liabilities	—	19.2		—		—		19.2

Deferred income taxes	16.7	—		—		(0.5	)	16.2
Lease liabilities	—	131.6		—		—		131.6
Other long-term liabilities	13.1	(8.5	)	—		—		4.6

Shareholders' equity
Retained earnings	279.7	(6.6	)	—		1.7		274.8

The Company applied the requirements of IAS 36, Impairment of assets as at April 1, 2019 on the right-of-use assets and concluded there was no impairment.

The Company used its incremental borrowing rates as at April 1, 2019 to measure lease liabilities. The weighted average incremental borrowing rate was 4.28%. The weighted average lease term remaining as at April 1, 2019 was approximately 8 years.

The following table reconciles the lease liabilities recognized on April 1, 2019 and the operating lease commitments disclosed under IAS 17 as at March 31, 2019 discounted using the incremental borrowing rate as at the date of initial application:



	$
Operating lease commitment as at March 31, 2019	253.4
Operating leases	(3.1	)
Leases committed not yet commenced	(71.5	)
Undiscounted lease payments	178.8
Discount at incremental borrowing rate	(28.0	)
Lease liabilities recognized as at April 1, 2019	150.8

Current lease liabilities	19.2
Non-current lease liabilities	131.6
Total lease liabilities	150.8

The adoption of IFRS 16 does not impact the Company's ability to comply with its financial and non-financial covenants as the covenants are calculated as at and during the reporting period in accordance with existing lease guidance at the date of the agreement. As a result of adopting IFRS 16, the Company updated its accounting policies (note 2), and its judgments and key sources of estimation uncertainty (note 3).

Segment information

The adoption of IFRS 16 resulted in the Company adjusting its internal financial information used by the chief operating decision maker. Specifically, the change from rent expense, recorded on a straight-line basis in selling, general and administrative expense, to depreciation on right-of-use assets and interest expense on lease liabilities required a different measurement of segment operating income. As a result, expenses in the Company's operating segments now include depreciation and amortization on assets, including right-of-use assets in the current year, directly used in those segments. Prior to the first quarter of fiscal 2020 depreciation and amortization was not allocated to the Company's operating segments. Comparative segment information has been restated to include depreciation and amortization to conform with the presentation adopted in the current year.

Lease term and useful life of leasehold improvements

In December 2019, the IFRS Interpretations Committee ("IFRIC") issued a final agenda decision in regards to the determination of the lease term for cancellable or renewable leases under IFRS 16 and whether the useful life of any non-removable leasehold improvements is limited to the lease term of the related lease. The Company assessed the impact of this interpretation on leases recognized under IFRS 16 and concluded the agenda decisions did not have an impact on the existing treatment.

Business combination

12 Months Ended

Mar. 29, 2020

Business Combinations [Abstract]

Business combination

On November 1, 2018, an incorporated subsidiary of the Company, Baffin Limited (“Baffin”), acquired the business of Baffin Inc. (the “Baffin Vendor”), a Canadian designer and manufacturer of performance outdoor and industrial footwear for total purchase consideration of $35.1.

Management determined that the assets and processes comprised a business and therefore accounted for the transaction as a business combination using the acquisition method of accounting. The aggregate purchase consideration for the acquired assets, net of the assumed liabilities was as follows:



	$
Cash	33.6
Issuance of 16,946 subordinate voting shares	1.5
Total purchase consideration	35.1

In connection with the business combination, a further amount of $3.0 is payable on November 1, 2020 to the Baffin Vendor and is charged to expense over two years.

The Company incurred acquisition-related costs of $1.3 as at March 31, 2019 which were recorded in selling, general and administrative expenses.

Assets acquired and liabilities assumed have been recorded at their fair values at the date of acquisition are as follows:



	$
Trade receivables	12.2
Inventories	15.9
Other current assets	0.3
Property, plant and equipment	2.5
Intangible assets
Brand	2.5
Technology	2.2
Goodwill	7.8
Accounts payable and accrued liabilities	(8.3	)
Total assets acquired, net of liabilities assumed	35.1

The fair values of working capital balances, other than inventories, have been measured at their book values at the date of acquisition, which approximate their fair values. The fair value of inventories has been measured at net realizable value, less costs to sell.

The fair value of property, plant and equipment was based on management’s assessment of the acquired assets’ condition, as well as an evaluation of the current market value for such assets. In addition, the Company also considered the length of time over which the economic benefit of these assets is expected to be realized and estimated the useful life of such assets as of the acquisition date.

Identifiable intangible assets acquired consist of brand and technology. The fair value of the brand was $2.5, measured using the relief-from-royalty approach. The fair value of technology was $2.2, measured using the replacement cost method. Under this method, the technology was valued based upon the costs the Company would incur to develop a similar asset. The Company considered the length of time over which the economic benefits of these assets is expected to be realized and estimated the useful life of such assets accordingly as at the acquisition date. Specifically, the brand was considered to have an indefinite life; accordingly, impairment is assessed annually or earlier if there are indicators of impairment. Technology was considered to have a useful life of 5 years and amortized on a straight-line basis. The excess of the purchase consideration over the fair value of the identifiable assets acquired has been accounted for as goodwill. Goodwill was mainly attributable to the expected future growth potential of the footwear business and is deductible for tax purposes.

The results of operations have been consolidated with those of the Company from the date of acquisition including the results from the wholesale business in the Wholesale segment and e-commerce business in the Direct-to-Consumer segment. Pro forma disclosures as if Baffin was acquired at the beginning of the fiscal year have not been presented as they are not considered material to these financial statements.

The controlling shareholder of the Baffin Vendor is employed as a member of key management subsequent to the acquisition. Transactions with the Baffin Vendor and other affiliates in connection with the acquisition and subsequently (including lease of premises and other operating costs) are related party transactions (note 20).

Segment information

12 Months Ended

Mar. 29, 2020

Operating Segments [Abstract]

Segment information

The Company has three reportable operating segments: Direct-to-Consumer, Wholesale, and Other. The Company measures each reportable operating segment’s performance based on revenue and segment operating income, which is the profit metric utilized by the Company’s chief operating decision maker, the President and Chief Executive Officer, for assessing the performance of operating segments. None of the reportable operating segments are reliant on any single external customer.

The Company does not report total assets or total liabilities based on its reportable operating segments.



	Year ended March 29, 2020
	Direct-to-Consumer	Wholesale	Other		Total
	$	$	$		$
Revenue	525.0	424.0	9.1		958.1
Cost of sales	130.0	226.2	8.6		364.8
Gross profit	395.0	197.8	0.5		593.3
Selling, general and administrative expenses	107.4	49.9	193.2		350.5
Depreciation and amortization	38.6	2.8	9.3		50.7
Operating income	249.0	145.1	(202.0	)	192.1
Net interest and other finance costs					28.4
Income before income taxes					163.7



	Year ended March 31, 2019
	Direct-to-Consumer	Wholesale	Other		Total
	$	$	$		$
Revenue	431.3	394.7	4.5		830.5
Cost of sales	106.7	202.2	4.8		313.7
Gross profit	324.6	192.5	(0.3	)	516.8
Selling, general and administrative expenses	93.9	39.1	169.1		302.1
Depreciation and amortization	7.4	2.3	8.3		18.0
Operating income	223.3	151.1	(177.7	)	196.7
Net interest and other finance costs					14.2
Income before income taxes					182.5



	Year ended March 31, 2018
	Direct-to-Consumer	Wholesale	Other		Total
	$	$	$		$
Revenue	255.0	334.6	1.6		591.2
Cost of sales	65.2	177.1	1.3		243.6
Gross profit	189.8	157.5	0.3		347.6
Selling, general and administrative expenses	58.0	34.4	107.7		200.1
Depreciation and amortization	3.6	2.0	3.8		9.4
Operating income	128.2	121.1	(111.2	)	138.1
Net interest and other finance costs					12.9
Income before income taxes					125.2

Effective April 1, 2019, the Company changed its measure of segment operating income to include depreciation and amortization on assets, including right-of-use assets in the current period, directly used in those segments. Prior to the first quarter of fiscal 2020, depreciation and amortization were not allocated to the Company's operating segments. In addition, certain selling, general and administrative expenses have been allocated to better align with the operating segment to which they relate. Prior period operating income by segment has been restated to include depreciation and amortization and to conform with the presentation adopted in the current year.

In the fourth quarter of fiscal 2020, the Company also revised the previous Unallocated segment to the Other segment and included sales and costs not directly allocated to the Direct-to-Consumer or Wholesale channels, such as sales to employees. Comparative information has been restated to conform with the presentation adopted in the current year.

Geographic information

The Company determines the geographic location of revenue based on the location of its customers.



	Year ended
	March 29, 2020	March 31, 2019	March 31, 2018
	$	$	$
Canada	293.1	293.3	228.8
United States	279.0	251.1	184.2
Asia	199.9	112.1	36.1
Europe and Rest of World	186.1	174.0	142.1
Revenue	958.1	830.5	591.2

Income taxes

12 Months Ended

Mar. 29, 2020

Income Taxes [Abstract]

Income taxes

The components of the provision for income tax are as follows:



	Year ended
	March 29, 2020		March 31, 2019		March 31, 2018
	$		$		$
Current income tax expense
Current period	39.2		45.1		24.4
Adjustment in respect of prior periods	(0.3	)	—		0.2
	38.9		45.1		24.6
Deferred income tax (recovery) expense
Origination and reversal of temporary differences	(29.4	)	(5.7	)	4.3
Effect of change in income tax rates	2.5		(0.4	)	0.4
Adjustment in respect of prior periods	—		(0.1	)	(0.2	)
	(26.9	)	(6.2	)	4.5
Income tax expense	12.0		38.9		29.1

The effective income tax rates differ from the weighted average basic Canadian federal and provincial statutory income tax rates for the following reasons:



	Year ended
	March 29, 2020		March 31, 2019		March 31, 2018
	$		$		$
Income before income taxes	163.7		182.5		125.2
	25.47	%	25.43	%	25.38	%
Income tax at expected statutory rate	41.7		46.4		31.8
Non-deductible (taxable) items	0.4		0.2		(0.3	)
Non-deductible stock option expense	1.8		0.9		0.4
Effect of foreign tax rates	(11.8	)	(9.4	)	(2.9	)
Non-deductible (taxable) foreign exchange loss (gain)	0.9		0.7		(0.1	)
Change in tax law related to Swiss tax reform	(23.1	)	—		—
Change in tax rates	2.5		—		—
Other items	(0.4	)	0.1		0.2
Income tax expense	12.0		38.9		29.1

The change in the year in the components of deferred tax assets and liabilities are as follows:



			Change in the year affecting
	March 31, 2019		Net income		Other comprehensive income	March 29, 2020
	$		$		$	$
Losses carried forward	3.0		0.6		—	3.6
Employee future benefits	0.2		—		0.1	0.3
Other liabilities	9.2		26.0		—	35.2
Unrealized profit in inventory	8.3		8.7		—	17.0
Provisions	3.2		1.8		—	5.0
Unrealized foreign exchange	(0.3	)	1.1		1.6	2.4
Total deferred tax asset	23.6		38.2		1.7	63.5
Intangible assets	(4.3	)	(1.9	)	—	(6.2	)
Property, plant and equipment	(23.8	)	(7.8	)	—	(31.6	)
Total deferred tax liabilities	(28.1	)	(9.7	)	—	(37.8	)
Net deferred tax liabilities	(4.5	)	28.5		1.7	25.7

The change in deferred tax assets and liabilities as presented in the statement of financial position are as follows:



			Change in the year affecting
	March 31, 2019		Net income		Other comprehensive income		March 29, 2020
	$		$		$		$
Deferred tax assets	12.2		28.7		(0.1	)	40.8
Deferred tax liabilities	(16.7	)	(0.2	)	1.8		(15.1	)
	(4.5	)	28.5		1.7		25.7

Available deferred income tax assets in the amount of $22.0 was not recognized as it is not probable that future taxable income will be available to the Company to utilize the benefits.

The corporate entities within Canada Goose have the following tax-loss carry-forwards that are expected to expire in the following years, if not utilized.



	$
2038	2.0
2039	4.6
2040	2.7
2041 and thereafter	4.5
	13.8

The Company does not recognize tax on unremitted earnings from foreign subsidiaries as it is management’s intent to reinvest these earnings indefinitely. Unremitted earnings from foreign subsidiaries were $222.1 as at March 29, 2020 (March 31, 2019 - $119.1, March 31, 2018 - $48.4).

As at March 29, 2020, in addition to the amount charged to profit or loss and other comprehensive income, a tax recovery of less than $0.1 (March 31, 2019 - $2.8) was recognized directly in equity related to excess tax deductions on share-based payments for stock options exercised.

Earnings per share

12 Months Ended

Mar. 29, 2020

Earnings per share [abstract]

Earnings per share

The following table presents details for the calculation of basic and diluted earnings per share:



	Year ended
	March 29, 2020		March 31, 2019		March 31, 2018
	$		$		$
Net income	151.7		143.6		96.1
Weighted average number of multiple and subordinate voting shares outstanding	109,892,031		109,422,574		107,250,039
Weighted average number of shares on exercise of stock options and RSUs	1,276,757		2,345,010		4,269,199
Diluted weighted average number of multiple and subordinate voting shares outstanding	111,168,788		111,767,584		111,519,238
Earnings per share
Basic	$	1.38	$	1.31	$	0.90
Diluted	$	1.36	$	1.28	$	0.86

Leases

12 Months Ended

Mar. 29, 2020

Leases 1 [Abstract]

Leases

Right-of-use assets

The following table presents changes in the cost and the accumulated depreciation of the Company’s right-of-use assets:



	Retail stores	Manufacturing facilities	Other	Total
Cost	$	$	$	$
March 31, 2019	—	—	—	—
Initial application of IFRS 16 (note 4)	97.0	27.2	12.4	136.6
Reclassification of initial direct costs (note 4 and 13)	5.5	—	—	5.5
Additions	82.8	6.7	5.2	94.7
Lease extensions and others	1.1	2.7	—	3.8
Impact of foreign currency translation	5.1	—	0.4	5.5
March 29, 2020	191.5	36.6	18.0	246.1



	Retail stores	Manufacturing facilities	Other	Total
Accumulated depreciation	$	$	$	$
March 31, 2019	—	—	—	—
Depreciation	25.7	4.8	2.6	33.1
Impact of foreign currency translation	1.1	—	0.1	1.2
March 29, 2020	26.8	4.8	2.7	34.3

Net book value
March 31, 2019	—	—	—	—
March 29, 2020	164.7	31.8	15.3	211.8

Lease liabilities

The following table presents the changes in the Company's lease liabilities:



	Retail stores		Manufacturing facilities		Other		Total
	$		$		$		$
March 31, 2019	—		—		—		—
Initial application of IFRS 16 (note 4)	107.8		29.4		13.6		150.8
Additions	81.5		6.7		5.2		93.4
Lease extensions and others	0.9		2.7		—		3.6
Principal payments	(18.4	)	(4.1	)	(2.2	)	(24.7	)
Impact of foreign currency translation	4.5		—		0.3		4.8
March 29, 2020	176.3		34.7		16.9		227.9

Current lease liabilities	27.5		5.0		3.4		35.9
Non-current lease liabilities	148.8		29.7		13.5		192.0
March 29, 2020	176.3		34.7		16.9		227.9



	Year ended
	March 29, 2020	March 31, 2019	March 31, 2018
	$	$	$
Variable rent	15.0	8.4	2.9
Operating leases	2.5	23.8	17.0
	17.5	32.2	19.9

Trade receivables

12 Months Ended

Mar. 29, 2020

Subclassifications of assets, liabilities and equities [abstract]

Trade receivables



	March 29, 2020		March 31, 2019
	$		$
Trade accounts receivable	32.0		19.7
Credit card receivables	2.1		1.6
	34.1		21.3
Less: expected credit loss and sales allowances	(1.8	)	(0.9	)
Trade receivables, net	32.3		20.4

The following are the continuities of the Company’s expected credit loss and sales allowances deducted from trade receivables:



	March 29, 2020						March 31, 2019
	Expected credit loss		Sales allowances		Total		Expected credit loss		Sales allowances		Total
	$		$		$		$		$		$
Balance at the beginning of the year	(0.4	)	(0.5	)	(0.9	)	(0.4	)	(0.4	)	(0.8	)
Losses recognized	(0.2	)	(2.8	)	(3.0	)	(0.3	)	(0.6	)	(0.9	)
Amounts settled or written off during the year	0.1		2.0		2.1		0.3		0.5		0.8
Balance at the end of the year	(0.5	)	(1.3	)	(1.8	)	(0.4	)	(0.5	)	(0.9	)

Trade accounts receivable factoring program

On December 23, 2019, a subsidiary of the Company in Europe entered into an agreement to factor, on a limited recourse basis, certain of its trade accounts receivable up to a limit of €20.0 in exchange for advanced funding equal to 100% of the principal value of the invoice. Accepted currencies include euros, British pounds sterling, and Swiss francs. The Company is charged a fee of the applicable EURIBOR or LIBOR reference rate plus 1.15% per annum, based on the number of days between the purchase date and the invoice due date, which is lower than the Company’s average borrowing rate under its revolving facility. The program is utilized to provide sufficient liquidity to support its international operating cash needs. Upon transfer of the receivables, the Company receives cash proceeds and continues to service the receivables on behalf of the third-party financial institution. The program meets the derecognition requirements in accordance with IFRS 9, Financial Instruments as the Company transfers substantially all the risks and rewards of ownership upon the sale of a receivable. These proceeds are classified as cash flows from operating activities in the statement of cash flows.

For the year ended March 29, 2020, the Company received cash proceeds from the sale of trade accounts receivable with carrying values of $7.8 which were derecognized from the Company’s statement of financial position. Fees of less than $0.1 were incurred during the year ended March 29, 2020 and included in net interest and other financing costs in the statement of income. At March 29, 2020, the outstanding amount of trade accounts receivable derecognized from the Company’s statement of financial position, but which the Company continued to service, was $2.4.

Inventories

12 Months Ended

Mar. 29, 2020

Inventories [Abstract]

Inventories



	March 29, 2020	March 31, 2019
	$	$
Raw materials	61.5	45.7
Work in progress	19.4	19.0
Finished goods	331.4	202.6
Total inventories at the lower of cost and net realizable value	412.3	267.3

Included in inventory as at March 29, 2020 are provisions for obsolescence and inventory shrinkage in the amount of $17.1 (March 31, 2019 - $16.5).

Amounts charged to cost of sales comprise the following:



	Year ended
	March 29, 2020	March 31, 2019	March 31, 2018
	$	$	$
Cost of goods manufactured	352.4	309.0	238.7
Depreciation and amortization	12.4	4.7	4.9
	364.8	313.7	243.6

Property, plant and equipment

12 Months Ended

Mar. 29, 2020

Property, plant and equipment [abstract]

Property, plant and equipment

The following table presents changes in the cost and the accumulated depreciation on the Company’s property, plant and equipment:



	Plant equipment		Computer equipment		Leasehold improvements		Show displays		Furniture and fixtures		In progress		Total
Cost	$		$		$		$		$		$		$
March 31, 2018	12.3		4.9		41.3		5.6		11.3		0.4		75.8
Additions	6.9		0.8		9.4		1.9		7.0		9.6		35.6
Business combination (note 5)	2.1		—		0.4		—		—		—		2.5
Disposals	—		(0.3	)	(2.5	)	—		—		—		(2.8	)
Transfers	1.0		—		6.2		0.1		2.0		(9.3	)	—
March 31, 2019	22.3		5.4		54.8		7.6		20.3		0.7		111.1
Additions	4.4		1.7		17.2		2.4		3.9		23.9		53.5
Disposals	(1.6	)	(0.1	)	(0.2	)	(0.1	)	(0.3	)	—		(2.3	)
Transfers	1.5		1.7		10.6		0.3		1.6		(15.7	)	—
March 29, 2020	26.6		8.7		82.4		10.2		25.5		8.9		162.3



	Plant equipment		Computer equipment		Leasehold improvements		Show displays		Furniture and fixtures		In progress	Total
Accumulated depreciation	$		$		$		$		$		$	$
March 31, 2018	2.4		2.2		7.2		2.5		1.3		—	15.6
Depreciation	1.7		1.0		6.4		1.5		3.1		—	13.7
Disposals	—		(0.2	)	(2.3	)	—		—		—	(2.5	)
March 31, 2019	4.1		3.0		11.3		4.0		4.4		—	26.8
Depreciation	2.4		1.3		10.6		2.1		4.5		—	20.9
Disposals	(0.2	)	—		(0.1	)	(0.1	)	(0.1	)	—	(0.5	)
March 29, 2020	6.3		4.3		21.8		6.0		8.8		—	47.2

Net book value
March 31, 2019	18.2		2.4		43.5		3.6		15.9		0.7	84.3
March 29, 2020	20.3		4.4		60.6		4.2		16.7		8.9	115.1

Intangible assets

12 Months Ended

Mar. 29, 2020

Intangible Assets [Abstract]

Intangible assets

Intangible assets comprise the following:



	March 29, 2020	March 31, 2019
	$	$
Intangible assets with finite lives	45.9	39.8
Intangible assets with indefinite lives:
Brand name	115.5	115.5
Domain name	0.3	0.3
	161.7	155.6

The following table presents the changes in cost and accumulated amortization of the Company’s intangible assets with finite lives:



	Intangible assets with finite lives
	ERP software	Computer software		Lease rights		Intellectual property	In progress		Total
Cost	$	$		$		$	$		$
March 31, 2018	4.3	11.8		6.2		3.9	5.8		32.0
Additions	3.2	1.1		0.5		—	18.6		23.4
Business combination (note 5)	—	—		—		2.2	—		2.2
Transfers	5.3	1.0		—		2.9	(9.2	)	—
March 31, 2019	12.8	13.9		6.7		9.0	15.2		57.6
Additions	0.3	1.6		—		0.2	19.6		21.7
IFRS 16 initial direct costs (notes 4 and 9)	—	—		(6.7	)	—	—		(6.7	)
Disposal	—	(0.1	)	—		—	—		(0.1	)
Transfers	11.3	6.0		—		4.9	(22.2	)	—
March 29, 2020	24.4	21.4		—		14.1	12.6		72.5

ERP software

Computer software

Lease rights

Intellectual property

In progress

Total

Accumulated amortization