Cover Page
Cover Page - shares | 6 Months Ended | |
Oct. 02, 2021 | Oct. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-5256 | |
Entity Registrant Name | V. F. CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1180120 | |
Entity Address, Address Line One | 1551 Wewatta Street | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 720 | |
Local Phone Number | 778-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 392,782,274 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000103379 | |
Current Fiscal Year End Date | --04-02 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value, stated capital, $0.25 per share | |
Trading Symbol | VFC | |
Security Exchange Name | NYSE | |
0.625% Senior Notes due 2023 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2023 | |
Trading Symbol | VFC23 | |
Security Exchange Name | NYSE | |
0.250% Senior Notes due 2028 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.250% Senior Notes due 2028 | |
Trading Symbol | VFC28 | |
Security Exchange Name | NYSE | |
0.625% Senior Notes due 2032 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2032 | |
Trading Symbol | VFC32 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Current assets | |||
Cash and equivalents | $ 1,360,138 | $ 815,750 | $ 1,877,398 |
Accounts receivable, less allowance for doubtful accounts of: September 2021 - $33,822; March 2021 - $33,654; September 2020 - $36,121 | 1,787,331 | 1,298,020 | 1,606,479 |
Inventories | 1,464,714 | 1,061,839 | 1,434,843 |
Short-term investments | 0 | 598,806 | 800,000 |
Other current assets | 357,687 | 423,877 | 408,809 |
Current assets of discontinued operations | 0 | 587,578 | 552,677 |
Total current assets | 4,969,870 | 4,785,870 | 6,680,206 |
Property, plant and equipment, net | 1,011,415 | 975,876 | 933,990 |
Intangible assets, net | 3,018,242 | 3,029,545 | 1,851,093 |
Goodwill | 2,415,767 | 2,425,427 | 1,173,514 |
Operating lease right-of-use assets | 1,380,106 | 1,474,434 | 1,385,121 |
Other assets | 1,093,687 | 1,062,877 | 917,342 |
TOTAL ASSETS | 13,889,087 | 13,754,029 | 12,941,266 |
Current liabilities | |||
Short-term borrowings | 10,173 | 11,061 | 13,237 |
Current portion of long-term debt | 1,001,037 | 1,023 | 1,127 |
Accounts payable | 534,365 | 463,208 | 450,109 |
Accrued liabilities | 1,838,790 | 1,609,928 | 1,505,703 |
Current liabilities of discontinued operations | 0 | 125,257 | 114,356 |
Total current liabilities | 3,384,365 | 2,210,477 | 2,084,532 |
Long-term debt | 4,682,751 | 5,709,149 | 5,679,440 |
Operating lease liabilities | 1,146,944 | 1,236,461 | 1,129,840 |
Other liabilities | 1,076,546 | 1,541,778 | 1,102,216 |
Total liabilities | 10,290,606 | 10,697,865 | 9,996,028 |
Commitments and contingencies | |||
Stockholders’ equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2021, March 2021 or September 2020 | 0 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2021 - 392,758,016; March 2021 - 391,941,477; September 2020 - 389,964,718 | 98,190 | 97,985 | 97,491 |
Additional paid-in capital | 3,854,687 | 3,777,645 | 3,852,358 |
Accumulated other comprehensive income (loss) | (940,834) | (1,009,000) | (959,658) |
Retained earnings (accumulated deficit) | 586,438 | 189,534 | (44,953) |
Total stockholders’ equity | 3,598,481 | 3,056,164 | 2,945,238 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 13,889,087 | $ 13,754,029 | $ 12,941,266 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Statement of Financial Position [Abstract] | |||
Allowance for credit loss | $ 33,822 | $ 33,654 | $ 36,121 |
Preferred stock (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common stock (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common stock, authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common stock, outstanding (in shares) | 392,758,016 | 391,941,477 | 389,964,718 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Statement [Abstract] | ||||
Net revenues | $ 3,198,235 | $ 2,608,324 | $ 5,392,792 | $ 3,684,617 |
Costs and operating expenses | ||||
Cost of goods sold | 1,479,446 | 1,282,406 | 2,434,997 | 1,789,357 |
Selling, general and administrative expenses | 1,160,303 | 1,005,970 | 2,196,425 | 1,822,121 |
Total costs and operating expenses | 2,639,749 | 2,288,376 | 4,631,422 | 3,611,478 |
Operating income | 558,486 | 319,948 | 761,370 | 73,139 |
Interest income | 1,518 | 3,176 | 3,660 | 4,489 |
Interest expense | (35,888) | (34,107) | (70,805) | (63,369) |
Other income (expense), net | 7,549 | 4,644 | 16,590 | (33,543) |
Income (loss) from continuing operations before income taxes | 531,665 | 293,661 | 710,815 | (19,284) |
Income tax expense | 67,612 | 50,415 | 92,790 | 15,212 |
Income (loss) from continuing operations | 464,053 | 243,246 | 618,025 | (34,496) |
Income from discontinued operations, net of tax | 0 | 13,476 | 170,273 | 5,605 |
Net income (loss) | $ 464,053 | $ 256,722 | $ 788,298 | $ (28,891) |
Earnings (loss) per common share - basic | ||||
Continuing operations (in USD per share) | $ 1.18 | $ 0.62 | $ 1.58 | $ (0.09) |
Discontinued operations (in USD per share) | 0 | 0.03 | 0.43 | 0.01 |
Total earnings (loss) per common share - basic (in USD per share) | 1.18 | 0.66 | 2.01 | (0.07) |
Earnings (loss) per common share - diluted | ||||
Continuing operations (in USD per share) | 1.18 | 0.62 | 1.57 | (0.09) |
Discontinued operations (in USD per share) | 0 | 0.03 | 0.43 | 0.01 |
Total earnings (loss) per common share - diluted (in USD per share) | $ 1.18 | $ 0.66 | $ 2 | $ (0.07) |
Weighted average shares outstanding | ||||
Basic (in shares) | 391,779 | 389,219 | 391,565 | 388,957 |
Diluted (in shares) | 394,017 | 391,180 | 394,072 | 390,986 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 464,053 | $ 256,722 | $ 788,298 | $ (28,891) |
Foreign currency translation and other | ||||
Gains (losses) arising during the period | (12,314) | (33,483) | 20,857 | (29,629) |
Reclassification of foreign currency translation losses | 0 | 0 | 0 | 42,364 |
Income tax effect | (11,686) | 18,582 | (7,804) | 24,837 |
Defined benefit pension plans | ||||
Current period actuarial losses | (439) | (8,853) | (4,452) | (8,853) |
Amortization of net deferred actuarial losses | 2,871 | 2,898 | 5,711 | 5,761 |
Amortization of deferred prior service credits | (117) | (17) | (235) | (34) |
Reclassification of net actuarial loss from settlement charge | 76 | 572 | 1,024 | 572 |
Income tax effect | (595) | 386 | 64 | 722 |
Derivative financial instruments | ||||
Gains (losses) arising during the period | 34,361 | (39,731) | 29,798 | (47,326) |
Income tax effect | (5,978) | 7,197 | (5,786) | 8,727 |
Reclassification of net (gains) losses realized | 22,986 | (11,379) | 33,545 | (31,659) |
Income tax effect | (4,113) | 1,711 | (4,556) | 5,818 |
Other comprehensive income (loss) | 25,052 | (62,117) | 68,166 | (28,700) |
Comprehensive income (loss) | $ 489,105 | $ 194,605 | $ 856,464 | $ (57,591) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 788,298 | $ (28,891) |
Income from discontinued operations, net of tax | 170,273 | 5,605 |
Income (loss) from continuing operations, net of tax | 618,025 | (34,496) |
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||
Depreciation and amortization | 134,553 | 138,853 |
Reduction in the carrying amount of right-of-use assets | 208,687 | 205,635 |
Stock-based compensation | 44,283 | 26,113 |
Provision for doubtful accounts | 3,345 | 15,727 |
Pension expense less than contributions | (12,312) | (7,953) |
Other, net | (191,547) | 15,852 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (502,675) | (275,436) |
Inventories | (412,058) | (115,515) |
Accounts payable | 72,757 | 36,019 |
Income taxes | 112,331 | (40,770) |
Accrued liabilities | 233,369 | 161,785 |
Operating lease right-of-use assets and liabilities | (228,969) | (150,170) |
Other assets and liabilities | (257,016) | 63,866 |
Cash provided (used) by operating activities - continuing operations | (177,227) | 39,510 |
Cash provided by operating activities - discontinued operations | 6,090 | 43,298 |
Cash provided (used) by operating activities | (171,137) | 82,808 |
INVESTING ACTIVITIES | ||
Business acquisitions, net of cash received | 3,760 | 0 |
Proceeds from sale of businesses, net of cash sold | 616,529 | 0 |
Purchases of short-term investments | 0 | (800,000) |
Proceeds from sale of short-term investments | 598,806 | 0 |
Capital expenditures | (144,582) | (112,501) |
Software purchases | (42,119) | (38,345) |
Other, net | 20,491 | (3,839) |
Cash provided (used) by investing activities - continuing operations | 1,052,885 | (954,685) |
Cash used by investing activities - discontinued operations | (525) | (2,693) |
Cash provided (used) by investing activities | 1,052,360 | (957,378) |
FINANCING ACTIVITIES | ||
Net decrease in short-term borrowings | (889) | (1,215,575) |
Payments on long-term debt | (508) | (768) |
Payment of debt issuance costs | 0 | (21,430) |
Proceeds from long-term debt | 0 | 2,996,090 |
Cash dividends paid | (384,427) | (373,638) |
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings | 25,971 | (7,221) |
Cash provided (used) by financing activities | (359,853) | 1,377,458 |
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (10,958) | (8,082) |
Net change in cash, cash equivalents and restricted cash | 510,412 | 494,806 |
Cash, cash equivalents and restricted cash – beginning of year | 851,205 | 1,411,322 |
Cash, cash equivalents and restricted cash – end of period | $ 1,361,617 | $ 1,906,128 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2021 | Sep. 26, 2020 |
Balances per Consolidated Balance Sheets: | ||
Cash and cash equivalents | $ 1,360,138 | $ 1,877,398 |
Other current assets | 1,421 | 1,301 |
Current assets of discontinued operations | 0 | 26,846 |
Other assets | 58 | 583 |
Total cash, cash equivalents and restricted cash | $ 1,361,617 | $ 1,906,128 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Mar. 28, 2020 | 388,812,158 | ||||
Beginning balance at Mar. 28, 2020 | $ 3,357,334 | $ 97,203 | $ 4,183,780 | $ (930,958) | $ 7,309 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (28,891) | (28,891) | |||
Dividends on Common Stock | (373,638) | (373,638) | |||
Stock-based compensation, net (in shares) | 1,152,560 | ||||
Stock-based compensation, net | 19,133 | $ 288 | 42,216 | (23,371) | |
Foreign currency translation and other | 37,572 | 37,572 | |||
Defined benefit pension plans | (1,832) | (1,832) | |||
Derivative financial instruments | (64,440) | (64,440) | |||
Ending balance (in shares) at Sep. 26, 2020 | 389,964,718 | ||||
Ending balance at Sep. 26, 2020 | 2,945,238 | $ 97,491 | 3,852,358 | (959,658) | (44,953) |
Beginning balance (in shares) at Jun. 27, 2020 | 389,641,245 | ||||
Beginning balance at Jun. 27, 2020 | 2,912,598 | $ 97,410 | 4,010,817 | (897,541) | (298,088) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 256,722 | 256,722 | |||
Dividends on Common Stock | (186,892) | (186,892) | |||
Stock-based compensation, net (in shares) | 323,473 | ||||
Stock-based compensation, net | 24,927 | $ 81 | 28,433 | (3,587) | |
Foreign currency translation and other | (14,901) | (14,901) | |||
Defined benefit pension plans | (5,014) | (5,014) | |||
Derivative financial instruments | (42,202) | (42,202) | |||
Ending balance (in shares) at Sep. 26, 2020 | 389,964,718 | ||||
Ending balance at Sep. 26, 2020 | 2,945,238 | $ 97,491 | 3,852,358 | (959,658) | (44,953) |
Beginning balance (in shares) at Apr. 03, 2021 | 391,941,477 | ||||
Beginning balance at Apr. 03, 2021 | 3,056,164 | $ 97,985 | 3,777,645 | (1,009,000) | 189,534 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 788,298 | 788,298 | |||
Dividends on Common Stock | (384,427) | (2,597) | (381,830) | ||
Stock-based compensation, net (in shares) | 816,539 | ||||
Stock-based compensation, net | 70,280 | $ 205 | 79,639 | (9,564) | |
Foreign currency translation and other | 13,053 | 13,053 | |||
Defined benefit pension plans | 2,112 | 2,112 | |||
Derivative financial instruments | 53,001 | 53,001 | |||
Ending balance (in shares) at Oct. 02, 2021 | 392,758,016 | ||||
Ending balance at Oct. 02, 2021 | 3,598,481 | $ 98,190 | 3,854,687 | (940,834) | 586,438 |
Beginning balance (in shares) at Jul. 03, 2021 | 392,621,561 | ||||
Beginning balance at Jul. 03, 2021 | 3,274,030 | $ 98,155 | 3,824,656 | (965,886) | 317,105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 464,053 | 464,053 | |||
Dividends on Common Stock | (192,296) | (192,296) | |||
Stock-based compensation, net (in shares) | 136,455 | ||||
Stock-based compensation, net | 27,642 | $ 35 | 30,031 | (2,424) | |
Foreign currency translation and other | (24,000) | (24,000) | |||
Defined benefit pension plans | 1,796 | 1,796 | |||
Derivative financial instruments | 47,256 | 47,256 | |||
Ending balance (in shares) at Oct. 02, 2021 | 392,758,016 | ||||
Ending balance at Oct. 02, 2021 | $ 3,598,481 | $ 98,190 | $ 3,854,687 | $ (940,834) | $ 586,438 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on Common Stock (in usd per share) | $ 0.49 | $ 0.48 | $ 0.98 | $ 0.96 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company's current fiscal year runs from April 4, 2021 through April 2, 2022 ("Fiscal 2022"). Accordingly, this Form 10-Q presents our second quarter of Fiscal 2022. For presentation purposes herein, all references to periods ended September 2021 and September 2020 relate to the fiscal periods ended on October 2, 2021 and September 26, 2020, respectively. References to March 2021 relate to information as of April 3, 2021. On June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also included the license of certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. The results of the Occupational Workwear business and the related cash flows have been reported as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented. Unless otherwise noted, discussion within these notes to the interim consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations. Certain prior year amounts have been reclassified to conform to the Fiscal 2022 presentation. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the March 2021 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and six months ended September 2021 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2022. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended April 3, 2021 (“Fiscal 2021 Form 10-K”). In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. The duration and severity of the novel coronavirus ("COVID-19") pandemic, which is subject to uncertainty, continues to impact VF's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates. |
RECENTLY ADOPTED AND ISSUED ACC
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Oct. 02, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" , an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance became effective for VF in the first quarter of Fiscal 2022, but did not have a material impact on VF's consolidated financial statements. Recently Issued Accounting Standards In March 2020 and January 2021, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and ASU No. 2021-01 , "Reference Rate Reform (Topic 848): Scope" , respectively. This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on VF's consolidated financial statements. |
REVENUES
REVENUES | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Contract Balances The following table provides information about contract assets and contract liabilities: (In thousands) September 2021 March 2021 September 2020 Contract assets (a) $ 1,773 $ 880 $ 2,573 Contract liabilities (b) 58,841 49,869 44,010 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities line item in the Consolidated Balance Sheets. For the three and six months ended September 2021, the Company recognized $71.0 million and $162.0 million, respectively, of revenue that was included in the contract liability balance during the periods, including amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. The change in the contract asset and contract liability balances primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment. Performance Obligations As of September 2021, the Company expects to recognize $80.8 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts to be recognized over time based on the con tract ual terms through March 2031. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less. As of September 2021, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and the fixed consideration related to future minimum guarantees discussed above. For the three and six months ended September 2021, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material. Disaggregation of Revenue The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors. Three Months Ended September 2021 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,132,068 $ 605,523 $ 252,016 $ 278 $ 1,989,885 Direct-to-consumer 371,109 780,826 40,140 — 1,192,075 Royalty 3,444 5,824 7,007 — 16,275 Total $ 1,506,621 $ 1,392,173 $ 299,163 $ 278 $ 3,198,235 Geographic revenues United States $ 691,538 $ 714,085 $ 209,370 $ 278 $ 1,615,271 International: Europe 536,522 410,670 25,420 — 972,612 Asia-Pacific 182,302 188,178 48,061 — 418,541 Americas (non-U.S.) 96,259 79,240 16,312 — 191,811 Total $ 1,506,621 $ 1,392,173 $ 299,163 $ 278 $ 3,198,235 Three Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 823,954 $ 664,868 $ 208,902 $ — $ 1,697,724 Direct-to-consumer 329,661 530,231 40,028 164 900,084 Royalty 792 5,103 4,621 — 10,516 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Geographic revenues United States $ 522,676 $ 586,377 $ 161,458 $ — $ 1,270,511 International: Europe 414,054 372,012 31,104 164 817,334 Asia-Pacific 155,696 172,004 43,758 — 371,458 Americas (non-U.S.) 61,981 69,809 17,231 — 149,021 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Six Months Ended September 2021 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,466,943 $ 1,151,548 $ 478,887 $ 278 $ 3,097,656 Direct-to-consumer 650,767 1,532,061 82,952 — 2,265,780 Royalty 6,665 10,632 12,059 — 29,356 Total $ 2,124,375 $ 2,694,241 $ 573,898 $ 278 $ 5,392,792 Geographic revenues United States $ 974,696 $ 1,409,920 $ 426,896 $ 278 $ 2,811,790 International: Europe 755,077 717,886 39,616 — 1,512,579 Asia-Pacific 270,362 426,651 74,200 — 771,213 Americas (non-U.S.) 124,240 139,784 33,186 — 297,210 Total $ 2,124,375 $ 2,694,241 $ 573,898 $ 278 $ 5,392,792 Six Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 982,460 $ 906,032 $ 326,506 $ 1,275 $ 2,216,273 Direct-to-consumer 509,675 854,432 80,643 208 1,444,958 Royalty 3,500 11,054 8,832 — 23,386 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Geographic revenues United States $ 675,153 $ 851,884 $ 276,090 $ — $ 1,803,127 International: Europe 513,078 497,538 44,405 1,483 1,056,504 Asia-Pacific 234,963 334,418 68,267 — 637,648 Americas (non-U.S.) 72,441 87,678 27,219 — 187,338 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 |
ACQUISITION
ACQUISITION | 6 Months Ended |
Oct. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On December 28, 2020, VF acquired 100% of the outstanding shares of Supreme Holdings, Inc. ("Supreme") for $2.2 billion in cash, subject to working capital and other adjustments. The transaction also included $0.2 billion of cash acquired by VF. The purchase price was primarily funded with cash on hand. During the three months ended September 2021, the purchase consideration was reduced by $3.8 million associated with the final working capital adjustment. The acquisition of Supreme includes a contingent arrangement that may require additional cash consideration to be paid to the selling shareholders of Supreme ranging from zero to $300.0 million, subject to the achievement of certain financial targets over the one-year earn-out period ending January 31, 2022. The initial estimated fair value of the contingent consideration of $207.0 million is included in the purchase price and was reported in the other liabilities line item in the Consolidated Balance Sheet at March 2021. The estimated fair value of the contingent consideration was determined based on the probability-weighted present value of various future cash payment outcomes. In subsequent reporting periods, the contingent consideration liability is remeasured at fair value with changes recognized in the selling, general and administrative expenses line item in the Consolidated Statements of Operations. Refer to Note 16 for additional information on fair value measurements. Supreme was a privately-held company based in New York, New York and is a global streetwear leader that sells apparel, accessories and footwear under its namesake brand , Supreme ® , through direct-to-consumer channels, including digital. The acquisition of Supreme accelerates VF's long-term growth strategy and builds on a long-standing relationship between Supreme and VF, with the Supreme ® brand being a regular collaborator with VF's Vans ® , The North Face ® and Timberland ® brands. The acquisition also provides VF with deeper access to attractive consumer segments and the ability to leverage VF's enterprise platforms and capabilities to enable sustainable long-term growth. In connection with the acquisition, VF deposited in escrow 605,050 shares of VF Common Stock. The common shares are subject to certain future service requirements and vest over periods of up to four years. For accounting purposes, VF will recognize the stock-based compensation cost for the fair value of these awards of $51.7 million over the vesting periods. For the three and six months ended September 2021, Supreme contributed revenues of $99.6 million and $245.3 million, respectively, and net income of $6.1 million and $32.4 million, respectively. The results of Supreme have been reported in the Active segment since the date of acquisition. Total transaction expenses for the Supreme acquisition were $8.7 million, all of which were recognized in the year ended March 2021 in the selling, general and administrative expenses line item in the Consolidated Statement of Operations. The allocation of the purchase price is preliminary and subject to change, primarily for certain income tax matters. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date. Goodwill decreased by $4.3 million during the three months ended September 2021, primarily related to the final working capital adjustment. The following table summarizes the preliminary estimated fair values of the Supreme assets acquired and liabilities assumed at the date of acquisition: (In thousands) December 28, 2020 Cash and equivalents $ 218,104 Accounts receivable 19,698 Inventories 44,937 Other current assets 35,091 Property, plant and equipment 18,914 Intangible asset 1,201,000 Operating lease right-of-use assets 55,668 Other assets 58,479 Total assets acquired 1,651,891 Accounts payable 25,717 Other current liabilities 77,640 Operating lease liabilities 53,062 Deferred income tax liabilities 275,718 Other liabilities 35,245 Total liabilities assumed 467,382 Net assets acquired 1,184,509 Goodwill 1,245,986 Purchase price $ 2,430,495 The purchase price consisted of the following components: (In thousands) December 28, 2020 Cash consideration $ 2,223,495 Contingent consideration 207,000 Purchase price $ 2,430,495 The goodwill is attributable to our ability to expand the Supreme ® brand into new markets, the acquired workforce and future collaboration opportunities for the Supreme ® brand. All of the goodwill was assigned to the Active segment and will not be deductible for tax purposes. The Supreme ® trademark, which management believes to have an indefinite life, has been valued at $1.2 billion using the relief-from-royalty method, which is an income valuation approach. The relief-from-royalty method requires the use of significant estimates and assumptions, including but not limited to, future revenues, growth rates, royalty rate, tax rates and discount rate. The following unaudited pro forma summary presents consolidated information of VF as if the acquisition of Supreme had occurred on March 31, 2019: (In thousands, except per share amounts) Three Months Ended September 2020 (unaudited) Six Months Ended September 2020 (unaudited) Total revenues $ 2,743,359 $ 3,933,644 Income from continuing operations 274,425 9,962 Earnings per common share from continuing operations Basic $ 0.71 $ 0.03 Diluted 0.70 0.03 These pro forma amounts have been calculated after applying VF’s accounting policies and adjusting the results of Supreme to reflect the fair value adjustments to intangible assets, property, plant and equipment and inventory. The results of Supreme have also been adjusted for historical interest expense as the acquired business was debt-free on the acquisition date . These changes have been applied from March 31, 20 19, with related tax effects. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Oct. 02, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The Company continuously assesses the composition of its portfolio to ensure it is aligned with its strategic objectives and positioned to maximize growth and return to shareholders. Occupational Workwear Business On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also included the license of certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. As of March 28, 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and l iabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. On June 28, 2021, VF completed the sale of the Occupational Workwear business. The Company received proceeds of $616.5 million, net of cash sold, resulting in an estimated after-tax gain on sale of $145.6 million, which is included in the income from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the six months ended September 2021, and is subject to working capital and other adjustments. The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations were income of $170.3 million (including an estimated after-tax gain on sale of $145.6 million) for the six months ended September 2021, and income of $13.5 million and $5.6 million for the three and six months ended September 2020, respectively. Under the terms of a transition services agreement, the Company will provide certain support services for periods generally up to 12 months from the closing date of the transaction. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the Occupational Workwear business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Net revenues $ — $ 162,310 $ 181,424 $ 287,643 Cost of goods sold — 113,147 117,193 214,617 Selling, general and administrative expenses — 34,911 38,735 68,167 Interest income, net — 180 194 473 Other income (expense), net — 79 6 79 Income from discontinued operations before income taxes — 14,511 25,696 5,411 Gain on the sale of discontinued operations before income taxes — — 133,571 — Total income from discontinued operations before income taxes — 14,511 159,267 5,411 Income tax expense (benefit) (a) — 1,035 (11,006) (194) Income from discontinued operations, net of tax $ — $ 13,476 $ 170,273 $ 5,605 (a) Income tax benefit for the six months ended September 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations as of March 2021 and September 2020. (In thousands) March 2021 September 2020 Cash and equivalents $ 34,132 $ 26,846 Accounts receivable, net 103,835 82,520 Inventories 245,227 241,519 Other current assets 8,208 7,773 Property, plant and equipment, net 49,394 47,964 Intangible assets, net 54,471 54,471 Goodwill 43,530 43,530 Operating lease right-of-use assets 43,220 42,445 Other assets 5,561 5,609 Total assets of discontinued operations $ 587,578 $ 552,677 Accounts payable $ 59,965 $ 46,493 Accrued liabilities 38,956 32,322 Operating lease liabilities 31,301 34,688 Other liabilities 3,863 5,177 Deferred income tax liabilities (a) (8,828) (4,324) Total liabilities of discontinued operations $ 125,257 $ 114,356 (a) Deferred income tax balances reflect VF's consolidated netting by jurisdiction. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (In thousands) September 2021 March 2021 September 2020 Finished products $ 1,397,988 $ 983,472 $ 1,358,593 Work-in-process 50,473 54,386 59,855 Raw materials 16,253 23,981 16,395 Total inventories $ 1,464,714 $ 1,061,839 $ 1,434,843 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS September 2021 March 2021 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 262,079 $ 153,139 $ 108,940 $ 117,207 License agreements 20 years Accelerated 6,652 4,322 2,330 2,448 Other 9 years Straight-line 5,861 4,292 1,569 1,986 Amortizable intangible assets, net 112,839 121,641 Indefinite-lived intangible assets: Trademarks and trade names 2,905,403 2,907,904 Intangible assets, net $ 3,018,242 $ 3,029,545 Amortization expense for the three and six months ended September 2021 was $4.0 million and $8.1 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2022 is $15.5 million, $14.5 million, $14.0 million, $13.5 million and $12.5 million, respectively. |
GOODWILL
GOODWILL | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Changes in goodwill are summarized by reportable segment as follows: (In thousands) Outdoor Active Work Total Balance, March 2021 $ 665,278 $ 1,645,769 $ 114,380 $ 2,425,427 Measurement period adjustment to Supreme acquisition (Note 4) — (4,325) — (4,325) Currency translation (1,508) (3,841) 14 (5,335) Balance, September 2021 $ 663,770 $ 1,637,603 $ 114,394 $ 2,415,767 Accum ulated impairm |
LEASES
LEASES | 6 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost and impairment. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Operating lease cost $ 110,160 $ 106,679 $ 223,660 $ 215,531 Other lease costs 22,491 19,572 50,430 34,570 Total lease cost $ 132,651 $ 126,251 $ 274,090 $ 250,101 During the six months ended September 2021 and 2020, the Company paid $241.8 million and $176.1 million of cash for operating leases, respectively. The increase was primarily driven by the timing of payments and lease concessions related to the effects of COVID-19 in the six months ended September 2020. During the six months ended September 2021 and 2020, the Company obtained $123.1 million and $326.3 million of right-of-use assets in exchange for lease liabilities, respectively. The decrease was primarily driven by the commencement of a new distribution center lease during the six months ended September 2020. |
LEASES | LEASES The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost and impairment. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Operating lease cost $ 110,160 $ 106,679 $ 223,660 $ 215,531 Other lease costs 22,491 19,572 50,430 34,570 Total lease cost $ 132,651 $ 126,251 $ 274,090 $ 250,101 During the six months ended September 2021 and 2020, the Company paid $241.8 million and $176.1 million of cash for operating leases, respectively. The increase was primarily driven by the timing of payments and lease concessions related to the effects of COVID-19 in the six months ended September 2020. During the six months ended September 2021 and 2020, the Company obtained $123.1 million and $326.3 million of right-of-use assets in exchange for lease liabilities, respectively. The decrease was primarily driven by the commencement of a new distribution center lease during the six months ended September 2020. |
PENSION PLANS
PENSION PLANS | 6 Months Ended |
Oct. 02, 2021 | |
Retirement Benefits [Abstract] | |
PENSION PLANS | PENSION PLANS The components of pension cost (income) for VF’s defined benefit plans were as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Service cost – benefits earned during the period $ 3,577 $ 3,783 $ 7,190 $ 7,415 Interest cost on projected benefit obligations 9,367 11,981 18,842 23,929 Expected return on plan assets (19,368) (20,571) (38,753) (41,110) Settlement charges 76 572 1,024 572 Amortization of deferred amounts: Net deferred actuarial losses 2,871 2,898 5,711 5,761 Deferred prior service credits (117) (17) (235) (34) Net periodic pension cost (income) $ (3,594) $ (1,354) $ (6,221) $ (3,467) The amounts reported in these disclosures have not been segregated between continuing and discontinued operations. VF has reported the service cost component of net periodic pension cost (income) in operating income and the other components, which include interest cost, expected return on plan assets, settlement charges and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations. VF contributed $6.1 million to its defined benefit plans during the six months ended September 2021, and intends to make approximately $26.8 million of contributions during the remainder of Fiscal 2022. |
CAPITAL AND ACCUMULATED OTHER C
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Common Stock During the six months ended September 2021, the Company did not purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased. Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of September 2021, March 2021 or September 2020. The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and specified components of other comprehensive income (“OCI”), which relate to changes in assets and liabilities that are not included in net income (loss) under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income (loss) is presented in the Consolidated Statements of Comprehensive Income (Loss). The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: (In thousands) September 2021 March 2021 September 2020 Foreign currency translation and other $ (687,120) $ (700,173) $ (700,137) Defined benefit pension plans (255,635) (257,747) (264,304) Derivative financial instruments 1,921 (51,080) 4,783 Accumulated other comprehensive income (loss) $ (940,834) $ (1,009,000) $ (959,658) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended September 2021 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2021 $ (663,120) $ (257,431) $ (45,335) $ (965,886) Other comprehensive income (loss) before reclassifications (24,000) (327) 28,383 4,056 Amounts reclassified from accumulated other comprehensive income (loss) — 2,123 18,873 20,996 Net other comprehensive income (loss) (24,000) 1,796 47,256 25,052 Balance, September 2021 $ (687,120) $ (255,635) $ 1,921 $ (940,834) Three Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2020 $ (685,236) $ (259,290) $ 46,985 $ (897,541) Other comprehensive income (loss) before reclassifications (14,901) (7,629) (32,534) (55,064) Amounts reclassified from accumulated other comprehensive income (loss) — 2,615 (9,668) (7,053) Net other comprehensive income (loss) (14,901) (5,014) (42,202) (62,117) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Six Months Ended September 2021 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2021 $ (700,173) $ (257,747) $ (51,080) $ (1,009,000) Other comprehensive income (loss) before reclassifications 13,053 (2,738) 24,012 34,327 Amounts reclassified from accumulated other comprehensive income (loss) — 4,850 28,989 33,839 Net other comprehensive income (loss) 13,053 2,112 53,001 68,166 Balance, September 2021 $ (687,120) $ (255,635) $ 1,921 $ (940,834) Six Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2020 $ (737,709) $ (262,472) $ 69,223 $ (930,958) Other comprehensive income (loss) before reclassifications (4,792) (6,642) (38,599) (50,033) Amounts reclassified from accumulated other comprehensive income (loss) 42,364 4,810 (25,841) 21,333 Net other comprehensive income (loss) 37,572 (1,832) (64,440) (28,700) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Reclassifications out of accumulated OCI were as follows: (In thousands) Three Months Ended September Six Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Operations 2021 2020 2021 2020 Losses on foreign currency translation and other: Liquidation of foreign entities Other income (expense), net $ — $ — $ — $ (42,364) Total before tax — — — (42,364) Tax (expense) benefit — — — — Net of tax — — — (42,364) Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net (2,871) (2,898) (5,711) (5,761) Deferred prior service credits Other income (expense), net 117 17 235 34 Pension settlement charges Other income (expense), net (76) (572) (1,024) (572) Total before tax (2,830) (3,453) (6,500) (6,299) Tax benefit 707 838 1,650 1,489 Net of tax (2,123) (2,615) (4,850) (4,810) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net revenues (4,963) 2,135 (6,761) 2,306 Foreign exchange contracts Cost of goods sold (16,501) 8,443 (22,670) 25,148 Foreign exchange contracts Selling, general and administrative expenses (189) 741 (1,106) 2,348 Foreign exchange contracts Other income (expense), net (1,360) 33 (3,062) 1,803 Interest rate contracts Interest expense 27 27 54 54 Total before tax (22,986) 11,379 (33,545) 31,659 Tax (expense) benefit 4,113 (1,711) 4,556 (5,818) Net of tax (18,873) 9,668 (28,989) 25,841 Total reclassifications for the period, net of tax $ (20,996) $ 7,053 $ (33,839) $ (21,333) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Incentive Equity Awards Granted During the six months ended September 2021, VF granted stock options to employees and nonemployee members of VF's Board of Directors to purchase 1,495,961 shares of its Common Stock at a weighted average exercise price of $77.79 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest in equal annual installments over three years. Stock options granted to nonemployee members of VF's Board of Directors vest upon grant and become exercisable one year from the date of grant. All options have ten-year terms. The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows: Six Months Ended September 2021 Expected volatility 28% to 41% Weighted average expected volatility 36% Expected term (in years) 6.2 to 7.9 Weighted average dividend yield 2.6% Risk-free interest rate 0.04% to 1.56% Weighted average fair value at date of grant $20.20 During the six months ended September 2021, VF granted 323,718 performance-based restricted stock units ("RSUs") to employees that enable them to receive shares of VF Common Stock at the end of a three-year performance cycle. The fair market value of VF Common Stock at the date the units were granted was $77.78 per share. Each performance-based RSU has a potential final payout ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is based on achievement of three-year financial targets set by the Tal ent and Compensation Committee of the Board of Directors. Shares will be issued to participants in the year following the conclusion of the three-year performance period. The financial targets include 50% weighting based on VF's revenue growth over the three-year period compared to a group of industry peers and 50% weighting based on VF's total shareholder return ("TSR") over the three-year period compared to the TSR for companies included in the Standard & Poor's 500 Consumer Discretionary Index. The grant date fair value of the TSR portion of the performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $101.56 per share. Additionally, the actual number of performance-based RSUs earned may be adjusted upward or downward by 25% of the target award, based on VF's gross margin performance over the three-year period. During the six months ended September 2021, VF granted 12,023 nonperformance-based RSUs to nonemployee members of the Board of Directors. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The fair market value of VF Common Stock at the date the units were granted was $77.78 per share. In addition, VF granted 345,599 nonperformance-based RSUs to employees during the six months ended September 2021. These units generally vest over periods of up to four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the dates the units were granted was $78.55 per share. VF also granted 31,214 restricted shares of VF Common Stock to certain members of management during the six months ended September 2021. These shares vest over periods of up to four years from the date of grant. The fair market value of VF Common Stock at the date the shares were granted was $77.78 per share. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate for the six months ended September 2021 was 13.1% compared to (78.9)% in the 2020 period. The six months ended September 2021 included a net discrete tax benefit of $0.2 million, which included a $3.4 million net tax expense related to unrecognized tax benefits and interest, a $1.4 million tax benefit related to stock compensation, and a $2.4 million net tax benefit related to tax rate change on deferred tax items. The $0.2 million net discrete tax benefit in the 2021 period had an insignificant impact on the effective income tax rate. The six months ended September 2020 included a net discrete tax expense of $3.9 million, which included a $2.0 million net tax expense related to unrecognized tax benefits and interest and a $1.8 million tax expense related to withholding taxes on prior foreign earnings. Excluding the $3.9 million net discrete tax expense in the 2020 period, the effective income tax rate would have been (58.9)%. Without discrete items, the effective income tax rate for the six months ended September 2021 increased by 72.0% compared with the 2020 period primarily due to losses generated in the prior year. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service ("IRS") examinations for tax years throug h 2015 have been effectively settled. The examination of Timberland’s 2011 tax return is ongoing. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years and has concluded that VF’s provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. During 2015, the European Union Commission (“EU”) investigated and announced its decision that these rulings were illegal and ordered the tax benefits to be collected from affected companies, including VF. Requests for annulment were filed by Belgium and VF Europe BVBA individually. During 2017 and 2018, VF Europe BVBA was assessed and paid €35.0 million tax and interest, which was recorded as an income tax receivable based on the expected success of the requests for annulment. During 2019, the General Court annulled the EU decision and the EU subsequently appealed the General Court’s annulment. In September 2021, the General Court's judgment was set aside by the Court of Justice of the EU and the case was sent back to the General Court to determine whether the excess profit tax regime amounted to illegal State aid. The case remains open and unresolved. If this matter is adversely resolved, these amounts will not be collected by VF. During the six months ended September 2021, the amount of net unrecognized tax benefits and associated interest increased by $8.9 million to $199.1 million. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $34.5 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $10.4 million would reduce income tax expense. |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION | 6 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENT INFORMATION | REPORTABLE SEGMENT INFORMATION The chief operating decision maker allocates resources and assesses performance based on a global brand view which represents VF's operating segments. The operating segments have been evaluated and combined into reportable segments because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. The Company's reportable segments have been identified as: Outdoor, Active and Work. We have included an Other category in the table below for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other includes results primarily related to the sale of non-VF products and sourcing activities related to transition services. Financial information for VF's reportable segments is as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Segment revenues: Outdoor $ 1,506,621 $ 1,154,407 $ 2,124,375 $ 1,495,635 Active 1,392,173 1,200,202 2,694,241 1,771,518 Work 299,163 253,551 573,898 415,981 Other 278 164 278 1,483 Total segment revenues $ 3,198,235 $ 2,608,324 $ 5,392,792 $ 3,684,617 Segment profit (loss): Outdoor $ 284,076 $ 132,475 $ 212,329 $ (28,236) Active 284,349 259,123 555,211 266,259 Work 61,973 8,173 102,977 (3,228) Other (370) (2,526) (652) (4,887) Total segment profit 630,028 397,245 869,865 229,908 Corporate and other expenses (63,993) (72,653) (91,905) (190,312) Interest expense, net (34,370) (30,931) (67,145) (58,880) Income (loss) from continuing operations before income taxes $ 531,665 $ 293,661 $ 710,815 $ (19,284) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended September Six Months Ended September (In thousands, except per share amounts) 2021 2020 2021 2020 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 464,053 $ 243,246 $ 618,025 $ (34,496) Weighted average common shares outstanding 391,779 389,219 391,565 388,957 Earnings (loss) per share from continuing operations $ 1.18 $ 0.62 $ 1.58 $ (0.09) Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 464,053 $ 243,246 $ 618,025 $ (34,496) Weighted average common shares outstanding 391,779 389,219 391,565 388,957 Incremental shares from stock options and other dilutive securities 2,238 1,961 2,507 2,029 Adjusted weighted average common shares outstanding 394,017 391,180 394,072 390,986 Earnings (loss) per share from continuing operations $ 1.18 $ 0.62 $ 1.57 $ (0.09) Outstanding options to purchase approximately 2.8 million shares were excluded from the calculations of diluted earnings per share for both the three and six-month periods ended September 2021, and outstanding options to purchase approximately 5.4 million shares were excluded from the calculations of diluted earnings per share for both the three and six-month periods ended September 2020, because the effect of their inclusion would have been anti-dilutive. In addition, 0.6 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for both the three and six-month periods ended September 2021, and 0.8 million and 0.6 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2020, respectively, because these units were not considered to be contingent outstanding shares in those periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 September 2021 Financial assets: Cash equivalents: Money market funds $ 224,728 $ 224,728 $ — $ — Time deposits 2,626 2,626 — — Derivative financial instruments 35,828 — 35,828 — Deferred compensation 132,985 132,985 — — Financial liabilities: Derivative financial instruments 33,723 — 33,723 — Deferred compensation 140,711 — 140,711 — Contingent consideration 99,000 — — 99,000 Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2021 Financial assets: Cash equivalents: Money market funds $ 216,591 $ 216,591 $ — $ — Time deposits 102,914 102,914 — — Short-term investments 598,806 598,806 — — Derivative financial instruments 13,257 — 13,257 — Deferred compensation 141,072 141,072 — — Financial liabilities: Derivative financial instruments 74,255 — 74,255 — Deferred compensation 150,713 — 150,713 — Contingent consideration 207,000 — — 207,000 (a) There were no transfers among the levels within the fair value hierarchy during the six months ended September 2021 or the year ended March 2021. The following table presents the changes in fair value of the contingent consideration liability designated as Level 3: (In thousands) Three Months Ended September 2021 Six Months Ended September 2021 Beginning Balance $ 134,000 $ 207,000 Change in fair value (35,000) (108,000) Ending Balance $ 99,000 $ 99,000 VF’s cash equivalents include money market funds and time deposits with maturities within three months of their purchase dates, that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign exchange forward contracts, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. VF’s deferred compensation assets primarily represent investments held within plan trusts as an economic hedge of the related deferred compensation liabilities. These investments primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets. Liabilities related to VF’s deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments. VF's short-term investments at March 2021 included excess cash invested in a managed income fund that approximated fair value based on Level 1 measurements. The contingent consideration liability represents the estimated amount of additional cash consideration to be paid to the selling shareholders of Supreme, which is dependent upon the achievement of certain financial targets over the one-year earn-out period ending January 31, 2022. The estimated fair value of the contingent consideration liability, which could range from zero to $300.0 million, was $207.0 million as of March 2021. The contingent consideration liability is remeasured at fair value with changes recognized in the selling, general and administrative expenses line item in the Consolidated Statements of Operations. As of September 2021, the fair value of the contingent consideration liability was remeasured to an estimated fair value of $99.0 million based on the probability-weighted present value of various future cash payment outcomes resulting from the estimated achievement levels of the financial targets. Refer to Note 4 for additional information on the acquisition of Supreme. All other financial assets and financial liabilities are recorded in the consolidated financial statements at cost, except life insurance contracts which are recorded at cash surrender value. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable and accrued liabilities. At September 2021 and March 2021, their carrying values approximated fair value. Additionally, at September 2021 and March 2021, the carrying values of VF’s long-term debt, including the current portion, were $5,683.8 million and $5,710.2 million, respectively, compared with fair values of $5,996.9 million and $6,017.3 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Summary of Derivative Financial Instruments All of VF’s outstanding derivative financial instruments are foreign exchange forward contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. The notional amounts of all outstanding derivative contracts were $2.5 billion at September 2021 , March 2021 and September 2020, consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, Swedish krona, South Korean won, Polish zloty, Japanese yen and New Zealand dollar. Derivative contracts have maturities up to 20 months. The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives (In thousands) September 2021 March 2021 September 2020 September 2021 March 2021 September 2020 Foreign currency exchange contracts designated as hedging instruments $ 35,674 $ 12,301 $ 28,676 $ (32,853) $ (73,087) $ (31,157) Foreign currency exchange contracts not designated as hedging instruments 154 956 4,500 (870) (1,168) (1,161) Total derivatives $ 35,828 $ 13,257 $ 33,176 $ (33,723) $ (74,255) $ (32,318) VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2021 March 2021 September 2020 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 35,828 $ (33,723) $ 13,257 $ (74,255) $ 33,176 $ (32,318) Gross amounts not offset in the Consolidated Balance Sheets (17,201) 17,201 (13,246) 13,246 (23,491) 23,491 Net amounts $ 18,627 $ (16,522) $ 11 $ (61,009) $ 9,685 $ (8,827) Derivatives are classified as current or noncurrent based on maturity dates, as follows: (In thousands) September 2021 March 2021 September 2020 Other current assets $ 27,903 $ 7,440 $ 27,615 Accrued liabilities (31,609) (66,351) (22,946) Other assets 7,925 5,817 5,561 Other liabilities (2,114) (7,904) (9,372) Cash Flow Hedges VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production costs, operating costs and intercompany royalties. The effects of cash flow hedging included in VF’s Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended September Gain (Loss) on Derivatives Recognized in OCI Six Months Ended September Cash Flow Hedging Relationships 2021 2020 2021 2020 Foreign currency exchange $ 34,361 $ (39,731) $ 29,798 $ (47,326) (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Six Months Ended September Location of Gain (Loss) 2021 2020 2021 2020 Net revenues $ (4,963) $ 2,135 $ (6,761) $ 2,306 Cost of goods sold (16,501) 8,443 (22,670) 25,148 Selling, general and administrative expenses (189) 741 (1,106) 2,348 Other income (expense), net (1,360) 33 (3,062) 1,803 Interest expense 27 27 54 54 Total $ (22,986) $ 11,379 $ (33,545) $ 31,659 Derivative Contracts Not Designated as Hedges VF uses derivative contracts to manage foreign currency exchange risk on third-party accounts receivable and payable, as well as intercompany borrowings. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net transaction losses or gains on the related assets and liabilities. In the case of derivative contracts executed on foreign currency exposures that are no longer probable of occurring, VF de-designates these hedges and the fair value changes of these instruments are also recognized directly in earnings. The impact of de-designated derivative contracts and changes in the fair value of derivative contracts not designated as hedges, recognized as gains or losses in VF's Consolidated Statements of Operations were not material for the three and six months ended September 2021 and September 2020. Other Derivative Information At September 2021, accumulated OCI included $20.9 million of pre-tax net deferred losses for foreign currency exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. Net Investment Hedge The Company has designated its euro-denominated fixed-rate notes, which represent €1.850 billion in aggregate principal, as a net investment hedge of VF’s investment in certain foreign operations. Because this debt qualified as a nonderivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCI as an offset to the foreign currency translation adjustments on the hedged investments. During the three and six-month periods ended September 2021, the Company recognized an after-tax gain of $34.1 million and $22.6 million, respectively, in OCI related to the net investment hedge transaction, and an after-tax loss of $53.5 million and $71.6 million for the three and six -month periods ended September 2020 , respectively. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities, primarily related to severance and employee-related benefits. During the three and six months ended September 2021, VF recognized $3.5 million and $7.8 million, respectively, of restructuring charges, related to approved initiatives. Of the restructuring charges recognized in the three and six months ended September 2021, $3.4 million and $6.3 million were reflected in selling, general and administrative expenses, respectively, and $0.1 million and $1.5 million in cost of goods sold, respectively. The Company has not recognized any significant incremental costs related to accruals for the year ended March 2021 or prior periods. Of the $43.3 million total restructuring accrual at September 2021, $43.0 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $0.3 million will be paid out beyond the next 12 months and thus is classified within other liabilities. The components of the restructuring charges are as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Severance and employee-related benefits $ 1,422 $ 9,883 $ 4,296 $ 28,392 Asset impairments — 10,557 — 10,557 Accelerated depreciation 2,036 2,857 3,467 6,664 Contract termination and other — 76 — 217 Total restructuring charges $ 3,458 $ 23,373 $ 7,763 $ 45,830 Restructuring costs by business segment are as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Outdoor $ 454 $ 1,845 $ 2,677 $ 6,595 Active 276 293 1,008 663 Work 788 18,378 788 18,807 Other 1,940 2,857 3,290 19,765 Total $ 3,458 $ 23,373 $ 7,763 $ 45,830 The activity in the restructuring accrual for the six-month period ended September 2021 was as follows: (In thousands) Severance Other Total Accrual at March 2021 $ 59,810 $ 6,944 $ 66,754 Charges 4,296 — 4,296 Cash payments and settlements (23,961) (3,666) (27,627) Adjustments to accruals 2 (40) (38) Impact of foreign currency (66) (50) (116) Accrual at September 2021 $ 40,081 $ 3,188 $ 43,269 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company petitioned the U.S. Tax Court to resolve an IRS dispute regarding the timing of income inclusion associated with the 2011 Timberland acquisition. The Company remains confident in our timing and treatment of the income inclusion, and therefore this matter is not reflected in our consolidated financial statements. We are vigorously defending our position, and do not expect the resolution to have a material adverse impact on the Company's financial position, results of operations or cash flows. While the IRS argues immediate income inclusion, the Company's position is to include the income over a period of years. As the matter relates to 2011, nearly half of the timing at dispute has passed with the Company including the income, and paying the related tax, on our income tax returns. The Company notes that should the IRS prevail in this timing matter, the net interest expense would be up to $191.4 million. Further, this timing matter is impacted by the Tax Cuts and Jobs Act that reduced the U.S. corporate income tax rate from 35% to 21%. If the IRS is successful, this rate differential would increase tax expense by approximately $136.3 million. The Company is currently involved in other legal proceedings that are ordinary, routine litigation incidental to the business. The resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company's financial position, results of operations or cash flows. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Oct. 02, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 19, 2021, VF’s Board of Directors declared a quarterly cash dividend of $0.50 per share, payable on December 20, 2021 to stockholders of record on December 10, 2021. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company's current fiscal year runs from April 4, 2021 through April 2, 2022 ("Fiscal 2022"). Accordingly, this Form 10-Q presents our second quarter of Fiscal 2022. For presentation purposes herein, all references to periods ended September 2021 and September 2020 relate to the fiscal periods ended on October 2, 2021 and September 26, 2020, respectively. References to March 2021 relate to information as of April 3, 2021. On June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also included the license of certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. The results of the Occupational Workwear business and the related cash flows have been reported as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented. Unless otherwise noted, discussion within these notes to the interim consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations. Certain prior year amounts have been reclassified to conform to the Fiscal 2022 presentation. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the March 2021 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and six months ended September 2021 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2022. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended April 3, 2021 (“Fiscal 2021 Form 10-K”). In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. The duration and severity of the novel coronavirus ("COVID-19") pandemic, which is subject to uncertainty, continues to impact VF's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" , an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance became effective for VF in the first quarter of Fiscal 2022, but did not have a material impact on VF's consolidated financial statements. Recently Issued Accounting Standards In March 2020 and January 2021, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and ASU No. 2021-01 , "Reference Rate Reform (Topic 848): Scope" , respectively. This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on VF's consolidated financial statements. |
Fair Value Measurement | Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | The following table provides information about contract assets and contract liabilities: (In thousands) September 2021 March 2021 September 2020 Contract assets (a) $ 1,773 $ 880 $ 2,573 Contract liabilities (b) 58,841 49,869 44,010 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities line item in the Consolidated Balance Sheets. |
Disaggregation of Revenue | The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors. Three Months Ended September 2021 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,132,068 $ 605,523 $ 252,016 $ 278 $ 1,989,885 Direct-to-consumer 371,109 780,826 40,140 — 1,192,075 Royalty 3,444 5,824 7,007 — 16,275 Total $ 1,506,621 $ 1,392,173 $ 299,163 $ 278 $ 3,198,235 Geographic revenues United States $ 691,538 $ 714,085 $ 209,370 $ 278 $ 1,615,271 International: Europe 536,522 410,670 25,420 — 972,612 Asia-Pacific 182,302 188,178 48,061 — 418,541 Americas (non-U.S.) 96,259 79,240 16,312 — 191,811 Total $ 1,506,621 $ 1,392,173 $ 299,163 $ 278 $ 3,198,235 Three Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 823,954 $ 664,868 $ 208,902 $ — $ 1,697,724 Direct-to-consumer 329,661 530,231 40,028 164 900,084 Royalty 792 5,103 4,621 — 10,516 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Geographic revenues United States $ 522,676 $ 586,377 $ 161,458 $ — $ 1,270,511 International: Europe 414,054 372,012 31,104 164 817,334 Asia-Pacific 155,696 172,004 43,758 — 371,458 Americas (non-U.S.) 61,981 69,809 17,231 — 149,021 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Six Months Ended September 2021 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,466,943 $ 1,151,548 $ 478,887 $ 278 $ 3,097,656 Direct-to-consumer 650,767 1,532,061 82,952 — 2,265,780 Royalty 6,665 10,632 12,059 — 29,356 Total $ 2,124,375 $ 2,694,241 $ 573,898 $ 278 $ 5,392,792 Geographic revenues United States $ 974,696 $ 1,409,920 $ 426,896 $ 278 $ 2,811,790 International: Europe 755,077 717,886 39,616 — 1,512,579 Asia-Pacific 270,362 426,651 74,200 — 771,213 Americas (non-U.S.) 124,240 139,784 33,186 — 297,210 Total $ 2,124,375 $ 2,694,241 $ 573,898 $ 278 $ 5,392,792 Six Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 982,460 $ 906,032 $ 326,506 $ 1,275 $ 2,216,273 Direct-to-consumer 509,675 854,432 80,643 208 1,444,958 Royalty 3,500 11,054 8,832 — 23,386 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Geographic revenues United States $ 675,153 $ 851,884 $ 276,090 $ — $ 1,803,127 International: Europe 513,078 497,538 44,405 1,483 1,056,504 Asia-Pacific 234,963 334,418 68,267 — 637,648 Americas (non-U.S.) 72,441 87,678 27,219 — 187,338 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the Supreme assets acquired and liabilities assumed at the date of acquisition: (In thousands) December 28, 2020 Cash and equivalents $ 218,104 Accounts receivable 19,698 Inventories 44,937 Other current assets 35,091 Property, plant and equipment 18,914 Intangible asset 1,201,000 Operating lease right-of-use assets 55,668 Other assets 58,479 Total assets acquired 1,651,891 Accounts payable 25,717 Other current liabilities 77,640 Operating lease liabilities 53,062 Deferred income tax liabilities 275,718 Other liabilities 35,245 Total liabilities assumed 467,382 Net assets acquired 1,184,509 Goodwill 1,245,986 Purchase price $ 2,430,495 |
Preliminary Purchase Price | The purchase price consisted of the following components: (In thousands) December 28, 2020 Cash consideration $ 2,223,495 Contingent consideration 207,000 Purchase price $ 2,430,495 |
Unaudited Pro Forma Summary | The following unaudited pro forma summary presents consolidated information of VF as if the acquisition of Supreme had occurred on March 31, 2019: (In thousands, except per share amounts) Three Months Ended September 2020 (unaudited) Six Months Ended September 2020 (unaudited) Total revenues $ 2,743,359 $ 3,933,644 Income from continuing operations 274,425 9,962 Earnings per common share from continuing operations Basic $ 0.71 $ 0.03 Diluted 0.70 0.03 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table summarizes the major line items for the Occupational Workwear business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Net revenues $ — $ 162,310 $ 181,424 $ 287,643 Cost of goods sold — 113,147 117,193 214,617 Selling, general and administrative expenses — 34,911 38,735 68,167 Interest income, net — 180 194 473 Other income (expense), net — 79 6 79 Income from discontinued operations before income taxes — 14,511 25,696 5,411 Gain on the sale of discontinued operations before income taxes — — 133,571 — Total income from discontinued operations before income taxes — 14,511 159,267 5,411 Income tax expense (benefit) (a) — 1,035 (11,006) (194) Income from discontinued operations, net of tax $ — $ 13,476 $ 170,273 $ 5,605 (a) Income tax benefit for the six months ended September 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations as of March 2021 and September 2020. (In thousands) March 2021 September 2020 Cash and equivalents $ 34,132 $ 26,846 Accounts receivable, net 103,835 82,520 Inventories 245,227 241,519 Other current assets 8,208 7,773 Property, plant and equipment, net 49,394 47,964 Intangible assets, net 54,471 54,471 Goodwill 43,530 43,530 Operating lease right-of-use assets 43,220 42,445 Other assets 5,561 5,609 Total assets of discontinued operations $ 587,578 $ 552,677 Accounts payable $ 59,965 $ 46,493 Accrued liabilities 38,956 32,322 Operating lease liabilities 31,301 34,688 Other liabilities 3,863 5,177 Deferred income tax liabilities (a) (8,828) (4,324) Total liabilities of discontinued operations $ 125,257 $ 114,356 (a) Deferred income tax balances reflect VF's consolidated netting by jurisdiction. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) September 2021 March 2021 September 2020 Finished products $ 1,397,988 $ 983,472 $ 1,358,593 Work-in-process 50,473 54,386 59,855 Raw materials 16,253 23,981 16,395 Total inventories $ 1,464,714 $ 1,061,839 $ 1,434,843 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | September 2021 March 2021 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 262,079 $ 153,139 $ 108,940 $ 117,207 License agreements 20 years Accelerated 6,652 4,322 2,330 2,448 Other 9 years Straight-line 5,861 4,292 1,569 1,986 Amortizable intangible assets, net 112,839 121,641 Indefinite-lived intangible assets: Trademarks and trade names 2,905,403 2,907,904 Intangible assets, net $ 3,018,242 $ 3,029,545 |
Indefinite Lived Intangible Assets | September 2021 March 2021 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 262,079 $ 153,139 $ 108,940 $ 117,207 License agreements 20 years Accelerated 6,652 4,322 2,330 2,448 Other 9 years Straight-line 5,861 4,292 1,569 1,986 Amortizable intangible assets, net 112,839 121,641 Indefinite-lived intangible assets: Trademarks and trade names 2,905,403 2,907,904 Intangible assets, net $ 3,018,242 $ 3,029,545 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill are summarized by reportable segment as follows: (In thousands) Outdoor Active Work Total Balance, March 2021 $ 665,278 $ 1,645,769 $ 114,380 $ 2,425,427 Measurement period adjustment to Supreme acquisition (Note 4) — (4,325) — (4,325) Currency translation (1,508) (3,841) 14 (5,335) Balance, September 2021 $ 663,770 $ 1,637,603 $ 114,394 $ 2,415,767 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost and impairment. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Operating lease cost $ 110,160 $ 106,679 $ 223,660 $ 215,531 Other lease costs 22,491 19,572 50,430 34,570 Total lease cost $ 132,651 $ 126,251 $ 274,090 $ 250,101 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Retirement Benefits [Abstract] | |
Components of Pension Cost | The components of pension cost (income) for VF’s defined benefit plans were as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Service cost – benefits earned during the period $ 3,577 $ 3,783 $ 7,190 $ 7,415 Interest cost on projected benefit obligations 9,367 11,981 18,842 23,929 Expected return on plan assets (19,368) (20,571) (38,753) (41,110) Settlement charges 76 572 1,024 572 Amortization of deferred amounts: Net deferred actuarial losses 2,871 2,898 5,711 5,761 Deferred prior service credits (117) (17) (235) (34) Net periodic pension cost (income) $ (3,594) $ (1,354) $ (6,221) $ (3,467) The amounts reported in these disclosures have not been segregated between continuing and discontinued operations. |
CAPITAL AND ACCUMULATED OTHER_2
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in Accumulated OCI | The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: (In thousands) September 2021 March 2021 September 2020 Foreign currency translation and other $ (687,120) $ (700,173) $ (700,137) Defined benefit pension plans (255,635) (257,747) (264,304) Derivative financial instruments 1,921 (51,080) 4,783 Accumulated other comprehensive income (loss) $ (940,834) $ (1,009,000) $ (959,658) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended September 2021 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2021 $ (663,120) $ (257,431) $ (45,335) $ (965,886) Other comprehensive income (loss) before reclassifications (24,000) (327) 28,383 4,056 Amounts reclassified from accumulated other comprehensive income (loss) — 2,123 18,873 20,996 Net other comprehensive income (loss) (24,000) 1,796 47,256 25,052 Balance, September 2021 $ (687,120) $ (255,635) $ 1,921 $ (940,834) Three Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2020 $ (685,236) $ (259,290) $ 46,985 $ (897,541) Other comprehensive income (loss) before reclassifications (14,901) (7,629) (32,534) (55,064) Amounts reclassified from accumulated other comprehensive income (loss) — 2,615 (9,668) (7,053) Net other comprehensive income (loss) (14,901) (5,014) (42,202) (62,117) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Six Months Ended September 2021 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2021 $ (700,173) $ (257,747) $ (51,080) $ (1,009,000) Other comprehensive income (loss) before reclassifications 13,053 (2,738) 24,012 34,327 Amounts reclassified from accumulated other comprehensive income (loss) — 4,850 28,989 33,839 Net other comprehensive income (loss) 13,053 2,112 53,001 68,166 Balance, September 2021 $ (687,120) $ (255,635) $ 1,921 $ (940,834) Six Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2020 $ (737,709) $ (262,472) $ 69,223 $ (930,958) Other comprehensive income (loss) before reclassifications (4,792) (6,642) (38,599) (50,033) Amounts reclassified from accumulated other comprehensive income (loss) 42,364 4,810 (25,841) 21,333 Net other comprehensive income (loss) 37,572 (1,832) (64,440) (28,700) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) |
Reclassifications Out of Accumulated OCI | Reclassifications out of accumulated OCI were as follows: (In thousands) Three Months Ended September Six Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Operations 2021 2020 2021 2020 Losses on foreign currency translation and other: Liquidation of foreign entities Other income (expense), net $ — $ — $ — $ (42,364) Total before tax — — — (42,364) Tax (expense) benefit — — — — Net of tax — — — (42,364) Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net (2,871) (2,898) (5,711) (5,761) Deferred prior service credits Other income (expense), net 117 17 235 34 Pension settlement charges Other income (expense), net (76) (572) (1,024) (572) Total before tax (2,830) (3,453) (6,500) (6,299) Tax benefit 707 838 1,650 1,489 Net of tax (2,123) (2,615) (4,850) (4,810) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net revenues (4,963) 2,135 (6,761) 2,306 Foreign exchange contracts Cost of goods sold (16,501) 8,443 (22,670) 25,148 Foreign exchange contracts Selling, general and administrative expenses (189) 741 (1,106) 2,348 Foreign exchange contracts Other income (expense), net (1,360) 33 (3,062) 1,803 Interest rate contracts Interest expense 27 27 54 54 Total before tax (22,986) 11,379 (33,545) 31,659 Tax (expense) benefit 4,113 (1,711) 4,556 (5,818) Net of tax (18,873) 9,668 (28,989) 25,841 Total reclassifications for the period, net of tax $ (20,996) $ 7,053 $ (33,839) $ (21,333) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted | The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows: Six Months Ended September 2021 Expected volatility 28% to 41% Weighted average expected volatility 36% Expected term (in years) 6.2 to 7.9 Weighted average dividend yield 2.6% Risk-free interest rate 0.04% to 1.56% Weighted average fair value at date of grant $20.20 |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF's reportable segments is as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Segment revenues: Outdoor $ 1,506,621 $ 1,154,407 $ 2,124,375 $ 1,495,635 Active 1,392,173 1,200,202 2,694,241 1,771,518 Work 299,163 253,551 573,898 415,981 Other 278 164 278 1,483 Total segment revenues $ 3,198,235 $ 2,608,324 $ 5,392,792 $ 3,684,617 Segment profit (loss): Outdoor $ 284,076 $ 132,475 $ 212,329 $ (28,236) Active 284,349 259,123 555,211 266,259 Work 61,973 8,173 102,977 (3,228) Other (370) (2,526) (652) (4,887) Total segment profit 630,028 397,245 869,865 229,908 Corporate and other expenses (63,993) (72,653) (91,905) (190,312) Interest expense, net (34,370) (30,931) (67,145) (58,880) Income (loss) from continuing operations before income taxes $ 531,665 $ 293,661 $ 710,815 $ (19,284) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended September Six Months Ended September (In thousands, except per share amounts) 2021 2020 2021 2020 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 464,053 $ 243,246 $ 618,025 $ (34,496) Weighted average common shares outstanding 391,779 389,219 391,565 388,957 Earnings (loss) per share from continuing operations $ 1.18 $ 0.62 $ 1.58 $ (0.09) Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 464,053 $ 243,246 $ 618,025 $ (34,496) Weighted average common shares outstanding 391,779 389,219 391,565 388,957 Incremental shares from stock options and other dilutive securities 2,238 1,961 2,507 2,029 Adjusted weighted average common shares outstanding 394,017 391,180 394,072 390,986 Earnings (loss) per share from continuing operations $ 1.18 $ 0.62 $ 1.57 $ (0.09) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 September 2021 Financial assets: Cash equivalents: Money market funds $ 224,728 $ 224,728 $ — $ — Time deposits 2,626 2,626 — — Derivative financial instruments 35,828 — 35,828 — Deferred compensation 132,985 132,985 — — Financial liabilities: Derivative financial instruments 33,723 — 33,723 — Deferred compensation 140,711 — 140,711 — Contingent consideration 99,000 — — 99,000 Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2021 Financial assets: Cash equivalents: Money market funds $ 216,591 $ 216,591 $ — $ — Time deposits 102,914 102,914 — — Short-term investments 598,806 598,806 — — Derivative financial instruments 13,257 — 13,257 — Deferred compensation 141,072 141,072 — — Financial liabilities: Derivative financial instruments 74,255 — 74,255 — Deferred compensation 150,713 — 150,713 — Contingent consideration 207,000 — — 207,000 (a) There were no transfers among the levels within the fair value hierarchy during the six months ended September 2021 or the year ended March 2021. |
Schedule of Contingent Consideration Liability Designated as Level 3 | The following table presents the changes in fair value of the contingent consideration liability designated as Level 3: (In thousands) Three Months Ended September 2021 Six Months Ended September 2021 Beginning Balance $ 134,000 $ 207,000 Change in fair value (35,000) (108,000) Ending Balance $ 99,000 $ 99,000 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Derivatives on Individual Contract Basis | The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives (In thousands) September 2021 March 2021 September 2020 September 2021 March 2021 September 2020 Foreign currency exchange contracts designated as hedging instruments $ 35,674 $ 12,301 $ 28,676 $ (32,853) $ (73,087) $ (31,157) Foreign currency exchange contracts not designated as hedging instruments 154 956 4,500 (870) (1,168) (1,161) Total derivatives $ 35,828 $ 13,257 $ 33,176 $ (33,723) $ (74,255) $ (32,318) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2021 March 2021 September 2020 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 35,828 $ (33,723) $ 13,257 $ (74,255) $ 33,176 $ (32,318) Gross amounts not offset in the Consolidated Balance Sheets (17,201) 17,201 (13,246) 13,246 (23,491) 23,491 Net amounts $ 18,627 $ (16,522) $ 11 $ (61,009) $ 9,685 $ (8,827) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2021 March 2021 September 2020 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 35,828 $ (33,723) $ 13,257 $ (74,255) $ 33,176 $ (32,318) Gross amounts not offset in the Consolidated Balance Sheets (17,201) 17,201 (13,246) 13,246 (23,491) 23,491 Net amounts $ 18,627 $ (16,522) $ 11 $ (61,009) $ 9,685 $ (8,827) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows: (In thousands) September 2021 March 2021 September 2020 Other current assets $ 27,903 $ 7,440 $ 27,615 Accrued liabilities (31,609) (66,351) (22,946) Other assets 7,925 5,817 5,561 Other liabilities (2,114) (7,904) (9,372) |
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The effects of cash flow hedging included in VF’s Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended September Gain (Loss) on Derivatives Recognized in OCI Six Months Ended September Cash Flow Hedging Relationships 2021 2020 2021 2020 Foreign currency exchange $ 34,361 $ (39,731) $ 29,798 $ (47,326) (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Six Months Ended September Location of Gain (Loss) 2021 2020 2021 2020 Net revenues $ (4,963) $ 2,135 $ (6,761) $ 2,306 Cost of goods sold (16,501) 8,443 (22,670) 25,148 Selling, general and administrative expenses (189) 741 (1,106) 2,348 Other income (expense), net (1,360) 33 (3,062) 1,803 Interest expense 27 27 54 54 Total $ (22,986) $ 11,379 $ (33,545) $ 31,659 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Activity in Restructuring | The components of the restructuring charges are as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Severance and employee-related benefits $ 1,422 $ 9,883 $ 4,296 $ 28,392 Asset impairments — 10,557 — 10,557 Accelerated depreciation 2,036 2,857 3,467 6,664 Contract termination and other — 76 — 217 Total restructuring charges $ 3,458 $ 23,373 $ 7,763 $ 45,830 Restructuring costs by business segment are as follows: Three Months Ended September Six Months Ended September (In thousands) 2021 2020 2021 2020 Outdoor $ 454 $ 1,845 $ 2,677 $ 6,595 Active 276 293 1,008 663 Work 788 18,378 788 18,807 Other 1,940 2,857 3,290 19,765 Total $ 3,458 $ 23,373 $ 7,763 $ 45,830 The activity in the restructuring accrual for the six-month period ended September 2021 was as follows: (In thousands) Severance Other Total Accrual at March 2021 $ 59,810 $ 6,944 $ 66,754 Charges 4,296 — 4,296 Cash payments and settlements (23,961) (3,666) (27,627) Adjustments to accruals 2 (40) (38) Impact of foreign currency (66) (50) (116) Accrual at September 2021 $ 40,081 $ 3,188 $ 43,269 |
REVENUES - Contract Assets and
REVENUES - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 1,773 | $ 880 | $ 2,573 |
Contract liabilities | $ 58,841 | $ 49,869 | $ 44,010 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Oct. 02, 2021 | Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts with customer, liability, revenue recognized | $ 71 | $ 162 |
REVENUES - Additional Informa_2
REVENUES - Additional Information, Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-03 $ in Millions | Oct. 02, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 80.8 |
Expected timing of satisfaction | 9 years 6 months |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 3,198,235 | $ 2,608,324 | $ 5,392,792 | $ 3,684,617 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,615,271 | 1,270,511 | 2,811,790 | 1,803,127 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 972,612 | 817,334 | 1,512,579 | 1,056,504 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 418,541 | 371,458 | 771,213 | 637,648 |
Americas (non-U.S.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 191,811 | 149,021 | 297,210 | 187,338 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,989,885 | 1,697,724 | 3,097,656 | 2,216,273 |
Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,192,075 | 900,084 | 2,265,780 | 1,444,958 |
Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 16,275 | 10,516 | 29,356 | 23,386 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,198,235 | 2,608,324 | 5,392,792 | 3,684,617 |
Operating Segments | Outdoor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,506,621 | 1,154,407 | 2,124,375 | 1,495,635 |
Operating Segments | Outdoor | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 691,538 | 522,676 | 974,696 | 675,153 |
Operating Segments | Outdoor | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 536,522 | 414,054 | 755,077 | 513,078 |
Operating Segments | Outdoor | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 182,302 | 155,696 | 270,362 | 234,963 |
Operating Segments | Outdoor | Americas (non-U.S.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 96,259 | 61,981 | 124,240 | 72,441 |
Operating Segments | Outdoor | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,132,068 | 823,954 | 1,466,943 | 982,460 |
Operating Segments | Outdoor | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 371,109 | 329,661 | 650,767 | 509,675 |
Operating Segments | Outdoor | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,444 | 792 | 6,665 | 3,500 |
Operating Segments | Active | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,392,173 | 1,200,202 | 2,694,241 | 1,771,518 |
Operating Segments | Active | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 714,085 | 586,377 | 1,409,920 | 851,884 |
Operating Segments | Active | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 410,670 | 372,012 | 717,886 | 497,538 |
Operating Segments | Active | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 188,178 | 172,004 | 426,651 | 334,418 |
Operating Segments | Active | Americas (non-U.S.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 79,240 | 69,809 | 139,784 | 87,678 |
Operating Segments | Active | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 605,523 | 664,868 | 1,151,548 | 906,032 |
Operating Segments | Active | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 780,826 | 530,231 | 1,532,061 | 854,432 |
Operating Segments | Active | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 5,824 | 5,103 | 10,632 | 11,054 |
Operating Segments | Work | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 299,163 | 253,551 | 573,898 | 415,981 |
Operating Segments | Work | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 209,370 | 161,458 | 426,896 | 276,090 |
Operating Segments | Work | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 25,420 | 31,104 | 39,616 | 44,405 |
Operating Segments | Work | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 48,061 | 43,758 | 74,200 | 68,267 |
Operating Segments | Work | Americas (non-U.S.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 16,312 | 17,231 | 33,186 | 27,219 |
Operating Segments | Work | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 252,016 | 208,902 | 478,887 | 326,506 |
Operating Segments | Work | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40,140 | 40,028 | 82,952 | 80,643 |
Operating Segments | Work | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 7,007 | 4,621 | 12,059 | 8,832 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 278 | 164 | 278 | 1,483 |
Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 278 | 0 | 278 | 0 |
Other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 164 | 0 | 1,483 |
Other | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Other | Americas (non-U.S.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Other | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 278 | 0 | 278 | 1,275 |
Other | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 164 | 0 | 208 |
Other | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 0 | $ 0 | $ 0 | $ 0 |
ACQUISITION - Additional Inform
ACQUISITION - Additional Information (Details) - USD ($) | Dec. 28, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Apr. 03, 2021 |
Business Acquisition [Line Items] | ||||||
Share based compensation vesting period | 3 years | |||||
Net revenues | $ 3,198,235,000 | $ 2,608,324,000 | $ 5,392,792,000 | $ 3,684,617,000 | ||
Net income (loss) | 464,053,000 | $ 256,722,000 | 788,298,000 | $ (28,891,000) | ||
Goodwill, working capital adjustment | $ 4,325,000 | |||||
Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Restricted stock units granted in period (in shares) | 31,214 | |||||
Share based compensation vesting period | 4 years | |||||
Supreme | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, percentage acquired | 100.00% | |||||
Cash consideration | $ 2,223,495,000 | |||||
Cash acquired from acquisition | 200,000,000 | |||||
Working capital adjustments | 3,800,000 | |||||
Contingent consideration arrangements, low value | 0 | |||||
Contingent consideration arrangements, high value | $ 300,000,000 | |||||
Contingent consideration, earn out period | 1 year | |||||
Contingent consideration | $ 207,000,000 | |||||
Net revenues | 99,600,000 | $ 245,300,000 | ||||
Net income (loss) | 6,100,000 | $ 32,400,000 | ||||
Goodwill, working capital adjustment | $ 4,300,000 | |||||
Intangible asset | $ 1,201,000,000 | |||||
Supreme | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset | $ 1,200,000,000 | |||||
Supreme | Selling, general and administrative expenses | ||||||
Business Acquisition [Line Items] | ||||||
Transaction and deal-related expenses | 8,700,000 | |||||
Supreme | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Restricted stock units granted in period (in shares) | 605,050 | |||||
Share based compensation vesting period | 4 years | |||||
Share-based compensation cost | $ 51,700,000 | |||||
Supreme | Other liabilities | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration | $ 207,000,000 |
ACQUISITION - Schedule of Asset
ACQUISITION - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Dec. 28, 2020 | Sep. 26, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,415,767 | $ 2,425,427 | $ 1,173,514 | |
Supreme | ||||
Business Acquisition [Line Items] | ||||
Cash and equivalents | $ 218,104 | |||
Accounts receivable | 19,698 | |||
Inventories | 44,937 | |||
Other current assets | 35,091 | |||
Property, plant and equipment | 18,914 | |||
Intangible asset | 1,201,000 | |||
Operating lease right-of-use assets | 55,668 | |||
Other assets | 58,479 | |||
Total assets acquired | 1,651,891 | |||
Accounts payable | 25,717 | |||
Other current liabilities | 77,640 | |||
Operating lease liabilities | 53,062 | |||
Deferred income tax liabilities | 275,718 | |||
Other liabilities | 35,245 | |||
Total liabilities assumed | 467,382 | |||
Net assets acquired | 1,184,509 | |||
Goodwill | 1,245,986 | |||
Purchase price | $ 2,430,495 |
ACQUISITION - Preliminary Purch
ACQUISITION - Preliminary Purchase Price (Details) - Supreme $ in Thousands | Dec. 28, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 2,223,495 |
Contingent consideration | 207,000 |
Purchase price | $ 2,430,495 |
ACQUISITION - Unaudited Pro For
ACQUISITION - Unaudited Pro Forma Summary (Details) - Supreme - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 26, 2020 | Sep. 26, 2020 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 2,743,359 | $ 3,933,644 |
Income from continuing operations | $ 274,425 | $ 9,962 |
Earnings per common share from continuing operations | ||
Basic (in USD per share) | $ 0.71 | $ 0.03 |
Diluted (in USD per share) | $ 0.70 | $ 0.03 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 28, 2021 | Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income from discontinued operations, net of tax | $ 0 | $ 13,476 | $ 170,273 | $ 5,605 | |
Discontinued operations, disposed of by sale | Occupational Workwear Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | $ 616,500 | ||||
After-tax gain on sale | $ 145,600 | 145,600 | |||
Income from discontinued operations, net of tax | $ 0 | $ 13,500 | $ 170,273 | $ 5,600 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Major Line Items included in Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 0 | $ 13,476 | $ 170,273 | $ 5,605 |
Occupational Workwear Business | Discontinued operations, disposed of by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 0 | 181,424 | ||
Cost of goods sold | 0 | 117,193 | ||
Selling, general and administrative expenses | 0 | 38,735 | ||
Interest income, net | 0 | 194 | ||
Other income (expense), net | 0 | 6 | ||
Income from discontinued operations before income taxes | 0 | 25,696 | ||
Gain on the sale of discontinued operations before income taxes | 0 | 133,571 | ||
Total income from discontinued operations before income taxes | 0 | 159,267 | ||
Income tax expense (benefit) | 0 | (11,006) | ||
Income from discontinued operations, net of tax | $ 0 | 13,500 | 170,273 | 5,600 |
Deferred tax benefit | $ 12,000 | |||
Kontoor Brands and Occupational Workwear | Discontinued operations, disposed of by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 162,310 | 287,643 | ||
Cost of goods sold | 113,147 | 214,617 | ||
Selling, general and administrative expenses | 34,911 | 68,167 | ||
Interest income, net | 180 | 473 | ||
Other income (expense), net | 79 | 79 | ||
Income from discontinued operations before income taxes | 14,511 | 5,411 | ||
Gain on the sale of discontinued operations before income taxes | 0 | 0 | ||
Total income from discontinued operations before income taxes | 14,511 | 5,411 | ||
Income tax expense (benefit) | 1,035 | (194) | ||
Income from discontinued operations, net of tax | $ 13,476 | $ 5,605 |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summary of Carrying Amounts of Assets and Liabilities (Details) - Discontinued Operations - USD ($) $ in Thousands | Apr. 03, 2021 | Sep. 26, 2020 |
Occupational Workwear Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and equivalents | $ 34,132 | |
Accounts receivable, net | 103,835 | |
Inventories | 245,227 | |
Other current assets | 8,208 | |
Property, plant and equipment, net | 49,394 | |
Intangible assets, net | 54,471 | |
Goodwill | 43,530 | |
Operating lease right-of-use assets | 43,220 | |
Other assets | 5,561 | |
Total assets of discontinued operations | 587,578 | |
Accounts payable | 59,965 | |
Accrued liabilities | 38,956 | |
Operating lease liabilities | 31,301 | |
Other liabilities | 3,863 | |
Deferred income tax liabilities | (8,828) | |
Total liabilities of discontinued operations | $ 125,257 | |
Kontoor Brands and Occupational Workwear | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and equivalents | $ 26,846 | |
Accounts receivable, net | 82,520 | |
Inventories | 241,519 | |
Other current assets | 7,773 | |
Property, plant and equipment, net | 47,964 | |
Intangible assets, net | 54,471 | |
Goodwill | 43,530 | |
Operating lease right-of-use assets | 42,445 | |
Other assets | 5,609 | |
Total assets of discontinued operations | 552,677 | |
Accounts payable | 46,493 | |
Accrued liabilities | 32,322 | |
Operating lease liabilities | 34,688 | |
Other liabilities | 5,177 | |
Deferred income tax liabilities | (4,324) | |
Total liabilities of discontinued operations | $ 114,356 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 1,397,988 | $ 983,472 | $ 1,358,593 |
Work-in-process | 50,473 | 54,386 | 59,855 |
Raw materials | 16,253 | 23,981 | 16,395 |
Total inventories | $ 1,464,714 | $ 1,061,839 | $ 1,434,843 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | |
Amortizable intangible assets: | |||
Net Carrying Amount | $ 112,839 | $ 121,641 | |
Indefinite-lived intangible assets: | |||
Trademarks and trade names | 2,905,403 | 2,907,904 | |
Intangible assets, net | $ 3,018,242 | 3,029,545 | $ 1,851,093 |
Customer relationships | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 19 years | ||
Cost | $ 262,079 | ||
Accumulated Amortization | 153,139 | ||
Net Carrying Amount | $ 108,940 | 117,207 | |
License agreements | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 20 years | ||
Cost | $ 6,652 | ||
Accumulated Amortization | 4,322 | ||
Net Carrying Amount | $ 2,330 | 2,448 | |
Other | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 9 years | ||
Cost | $ 5,861 | ||
Accumulated Amortization | 4,292 | ||
Net Carrying Amount | $ 1,569 | $ 1,986 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Oct. 02, 2021USD ($) | Oct. 02, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 4 | $ 8.1 |
Estimated amortization expense, 2022 | 15.5 | 15.5 |
Estimated amortization expense, 2023 | 14.5 | 14.5 |
Estimated amortization expense, 2024 | 14 | 14 |
Estimated amortization expense, 2025 | 13.5 | 13.5 |
Estimated amortization expense, 2026 | $ 12.5 | $ 12.5 |
GOODWILL - Changes in Goodwill
GOODWILL - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Oct. 02, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,425,427 |
Measurement period adjustment to Supreme acquisition (Note 4) | (4,325) |
Currency translation | (5,335) |
Goodwill, ending balance | 2,415,767 |
Outdoor | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 665,278 |
Measurement period adjustment to Supreme acquisition (Note 4) | 0 |
Currency translation | (1,508) |
Goodwill, ending balance | 663,770 |
Active | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,645,769 |
Measurement period adjustment to Supreme acquisition (Note 4) | (4,325) |
Currency translation | (3,841) |
Goodwill, ending balance | 1,637,603 |
Work | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 114,380 |
Measurement period adjustment to Supreme acquisition (Note 4) | 0 |
Currency translation | 14 |
Goodwill, ending balance | $ 114,394 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - USD ($) | 6 Months Ended | |
Oct. 02, 2021 | Apr. 03, 2021 | |
Goodwill [Line Items] | ||
Impairment charge | $ 0 | |
Outdoor | ||
Goodwill [Line Items] | ||
Accumulated impairment charges | $ 323,200,000 | $ 323,200,000 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 110,160 | $ 106,679 | $ 223,660 | $ 215,531 |
Other lease costs | 22,491 | 19,572 | 50,430 | 34,570 |
Total lease cost | $ 132,651 | $ 126,251 | $ 274,090 | $ 250,101 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Leases [Abstract] | ||
Cash paid for operating leases | $ 241.8 | $ 176.1 |
Right-of-use asset obtained in exchange for operating lease liability | $ 123.1 | $ 326.3 |
PENSION PLANS - Components of P
PENSION PLANS - Components of Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost – benefits earned during the period | $ 3,577 | $ 3,783 | $ 7,190 | $ 7,415 |
Interest cost on projected benefit obligations | 9,367 | 11,981 | 18,842 | 23,929 |
Expected return on plan assets | (19,368) | (20,571) | (38,753) | (41,110) |
Settlement charges | 76 | 572 | 1,024 | 572 |
Amortization of deferred amounts: | ||||
Net deferred actuarial losses | 2,871 | 2,898 | 5,711 | 5,761 |
Deferred prior service credits | (117) | (17) | (235) | (34) |
Net periodic pension cost (income) | $ (3,594) | $ (1,354) | $ (6,221) | $ (3,467) |
PENSION PLANS - Additional Info
PENSION PLANS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 02, 2021 | Jul. 03, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plan contributed | $ 6,100 | ||||
Defined benefit pension plan additional contributions to make next fiscal year | $ 26,800 | 26,800 | |||
Settlement charges | $ 76 | $ 572 | $ 1,024 | $ 572 | |
Supplemental defined benefit pension plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 2.90% | 2.91% |
CAPITAL AND ACCUMULATED OTHER_3
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Details) - $ / shares | 6 Months Ended | ||
Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | |
Equity [Abstract] | |||
Purchases of treasury stock (in shares) | 0 | ||
Treasury shares (in shares) | 0 | 0 | 0 |
Common stock (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
CAPITAL AND ACCUMULATED OTHER_4
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | $ 3,598,481 | $ 3,274,030 | $ 3,056,164 | $ 2,945,238 | $ 2,912,598 | $ 3,357,334 |
Foreign currency translation and other | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | (687,120) | (663,120) | (700,173) | (700,137) | (685,236) | (737,709) |
Defined benefit pension plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | (255,635) | (257,431) | (257,747) | (264,304) | (259,290) | (262,472) |
Derivative financial instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | 1,921 | (45,335) | (51,080) | 4,783 | 46,985 | 69,223 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | $ (940,834) | $ (965,886) | $ (1,009,000) | $ (959,658) | $ (897,541) | $ (930,958) |
CAPITAL AND ACCUMULATED OTHER_5
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated OCI, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,274,030 | $ 2,912,598 | $ 3,056,164 | $ 3,357,334 |
Other comprehensive income (loss) before reclassifications | 34,327 | (50,033) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 33,839 | 21,333 | ||
Other comprehensive income (loss) | 25,052 | (62,117) | 68,166 | (28,700) |
Ending balance | 3,598,481 | 2,945,238 | 3,598,481 | 2,945,238 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (965,886) | (897,541) | (1,009,000) | (930,958) |
Other comprehensive income (loss) before reclassifications | 4,056 | (55,064) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 20,996 | (7,053) | ||
Other comprehensive income (loss) | 25,052 | (62,117) | 68,166 | (28,700) |
Ending balance | (940,834) | (959,658) | (940,834) | (959,658) |
Foreign currency translation and other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (663,120) | (685,236) | (700,173) | (737,709) |
Other comprehensive income (loss) before reclassifications | (24,000) | (14,901) | 13,053 | (4,792) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 42,364 |
Other comprehensive income (loss) | (24,000) | (14,901) | 13,053 | 37,572 |
Ending balance | (687,120) | (700,137) | (687,120) | (700,137) |
Defined benefit pension plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (257,431) | (259,290) | (257,747) | (262,472) |
Other comprehensive income (loss) before reclassifications | (327) | (7,629) | (2,738) | (6,642) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,123 | 2,615 | 4,850 | 4,810 |
Other comprehensive income (loss) | 1,796 | (5,014) | 2,112 | (1,832) |
Ending balance | (255,635) | (264,304) | (255,635) | (264,304) |
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (45,335) | 46,985 | (51,080) | 69,223 |
Other comprehensive income (loss) before reclassifications | 28,383 | (32,534) | 24,012 | (38,599) |
Amounts reclassified from accumulated other comprehensive income (loss) | 18,873 | (9,668) | 28,989 | (25,841) |
Other comprehensive income (loss) | 47,256 | (42,202) | 53,001 | (64,440) |
Ending balance | $ 1,921 | $ 4,783 | $ 1,921 | $ 4,783 |
CAPITAL AND ACCUMULATED OTHER_6
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification Out of Accumulated OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | $ 7,549 | $ 4,644 | $ 16,590 | $ (33,543) |
Net revenues | 3,198,235 | 2,608,324 | 5,392,792 | 3,684,617 |
Cost of goods sold | (1,479,446) | (1,282,406) | (2,434,997) | (1,789,357) |
Selling, general and administrative expenses | (1,160,303) | (1,005,970) | (2,196,425) | (1,822,121) |
Interest expense | (35,888) | (34,107) | (70,805) | (63,369) |
Total before tax | 531,665 | 293,661 | 710,815 | (19,284) |
Tax (expense) benefit | (67,612) | (50,415) | (92,790) | (15,212) |
Income (loss) from continuing operations | 464,053 | 243,246 | 618,025 | (34,496) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations | (20,996) | 7,053 | (33,839) | (21,333) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation and other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | 0 | 0 | 0 | (42,364) |
Total before tax | 0 | 0 | 0 | (42,364) |
Tax (expense) benefit | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 0 | 0 | 0 | (42,364) |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (76) | (572) | (1,024) | (572) |
Total before tax | (2,830) | (3,453) | (6,500) | (6,299) |
Tax (expense) benefit | 707 | 838 | 1,650 | 1,489 |
Income (loss) from continuing operations | (2,123) | (2,615) | (4,850) | (4,810) |
Reclassification out of Accumulated Other Comprehensive Income | Net deferred actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (2,871) | (2,898) | (5,711) | (5,761) |
Reclassification out of Accumulated Other Comprehensive Income | Deferred prior service credits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | 117 | 17 | 235 | 34 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on derivative financial instruments: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (22,986) | 11,379 | (33,545) | 31,659 |
Tax (expense) benefit | 4,113 | (1,711) | 4,556 | (5,818) |
Income (loss) from continuing operations | (18,873) | 9,668 | (28,989) | 25,841 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on derivative financial instruments: | Foreign currency exchange | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (1,360) | 33 | (3,062) | 1,803 |
Net revenues | (4,963) | 2,135 | (6,761) | 2,306 |
Cost of goods sold | (16,501) | 8,443 | (22,670) | 25,148 |
Selling, general and administrative expenses | (189) | 741 | (1,106) | 2,348 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on derivative financial instruments: | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 27 | $ 27 | $ 54 | $ 54 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) | 6 Months Ended |
Oct. 02, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted in period (in shares) | 1,495,961 |
Exercise price of options granted (in USD per share) | $ / shares | $ 77.79 |
Share based compensation vesting period | 3 years |
Period of time options become exercisable | 1 year |
Expiration period | 10 years |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted in period (in shares) | 323,718 |
Performance period | 3 years |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 77.78 |
Percentage, revenue growth | 50.00% |
Percentage, TSR | 50.00% |
Percentage adjustments in period | 25.00% |
Performance-Based Restricted Stock Units | Valuation Technique, Option Pricing Model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 101.56 |
Nonperformance-Based Restricted Stock Units | Board of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 1 year |
Restricted stock units granted in period (in shares) | 12,023 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 77.78 |
Nonperformance-Based Restricted Stock Units | Key Employees In International Jurisdictions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 4 years |
Restricted stock units granted in period (in shares) | 345,599 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 78.55 |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 4 years |
Restricted stock units granted in period (in shares) | 31,214 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 77.78 |
Minimum | Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 0 |
Maximum | Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 2 |
STOCK-BASED COMPENSATION - Assu
STOCK-BASED COMPENSATION - Assumptions Used and Resulting Weighted Average Fair Value of Stock Option Granted (Details) | 6 Months Ended |
Oct. 02, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 28.00% |
Expected volatility, maximum | 41.00% |
Weighted average expected volatility | 36.00% |
Weighted average dividend yield | 2.60% |
Risk-free interest rate, minimum | 0.04% |
Risk-free interest rate, maximum | 1.56% |
Weighted average fair value at date of grant (in USD per share) | $ 20.20 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 2 months 12 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 7 years 10 months 24 days |
INCOME TAXES (Details)
INCOME TAXES (Details) € in Millions, $ in Millions | 6 Months Ended | |||
Oct. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Dec. 31, 2018EUR (€) | Dec. 30, 2017EUR (€) | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 13.10% | (78.90%) | ||
Net discrete tax expense (benefit) | $ (0.2) | $ 3.9 | ||
Net tax expense related to unrecognized tax benefits and interest | 3.4 | 2 | ||
Tax benefit from share-based compensation | 1.4 | |||
Tax benefit from accrual adjustments | $ 2.4 | |||
Foreign earnings expense | $ 1.8 | |||
Effective tax rate, excluding discrete items | (58.90%) | |||
Effective tax rate, excluding discrete items, increase (decrease) from prior period | 72.00% | |||
Increase in unrecognized tax benefits and associated interest | $ 8.9 | |||
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 199.1 | |||
Decrease in unrecognized income tax benefits | 34.5 | |||
Reduction in income tax expenses | $ 10.4 | |||
VF Europe BVBA | Domestic Tax Authority | Administration of the Treasury, Belgium | ||||
Income Tax Contingency [Line Items] | ||||
Tax and interest from settlement | € | € 35 | € 35 |
REPORTABLE SEGMENT INFORMATIO_2
REPORTABLE SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total segment revenues | $ 3,198,235 | $ 2,608,324 | $ 5,392,792 | $ 3,684,617 |
Segment profit (loss) | 558,486 | 319,948 | 761,370 | 73,139 |
Income (loss) from continuing operations before income taxes | 531,665 | 293,661 | 710,815 | (19,284) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 3,198,235 | 2,608,324 | 5,392,792 | 3,684,617 |
Segment profit (loss) | 630,028 | 397,245 | 869,865 | 229,908 |
Operating Segments | Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 1,506,621 | 1,154,407 | 2,124,375 | 1,495,635 |
Segment profit (loss) | 284,076 | 132,475 | 212,329 | (28,236) |
Operating Segments | Active | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 1,392,173 | 1,200,202 | 2,694,241 | 1,771,518 |
Segment profit (loss) | 284,349 | 259,123 | 555,211 | 266,259 |
Operating Segments | Work | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 299,163 | 253,551 | 573,898 | 415,981 |
Segment profit (loss) | 61,973 | 8,173 | 102,977 | (3,228) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 278 | 164 | 278 | 1,483 |
Segment profit (loss) | (370) | (2,526) | (652) | (4,887) |
Interest expense, net | (34,370) | (30,931) | (67,145) | (58,880) |
Corporate and other expenses | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and other expenses | $ (63,993) | $ (72,653) | $ (91,905) | $ (190,312) |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Earnings (loss) per share – basic: | ||||
Income (loss) from continuing operations | $ 464,053 | $ 243,246 | $ 618,025 | $ (34,496) |
Weighted average common shares outstanding (in shares) | 391,779 | 389,219 | 391,565 | 388,957 |
Earnings per share from continuing operations (in USD per share) | $ 1.18 | $ 0.62 | $ 1.58 | $ (0.09) |
Earnings (loss) per share – diluted: | ||||
Income (loss) from continuing operations | $ 464,053 | $ 243,246 | $ 618,025 | $ (34,496) |
Weighted average common shares outstanding (in shares) | 391,779 | 389,219 | 391,565 | 388,957 |
Incremental shares from stock options and other dilutive securities (in shares) | 2,238 | 1,961 | 2,507 | 2,029 |
Adjusted weighted average common shares outstanding (in shares) | 394,017 | 391,180 | 394,072 | 390,986 |
Earnings per share from continuing operations (in USD per share) | $ 1.18 | $ 0.62 | $ 1.57 | $ (0.09) |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Employees And Non Employees Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share (in shares) | 2.8 | 5.4 | 2.8 | 5.4 |
Performance-Based Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share (in shares) | 0.6 | 0.8 | 0.6 | 0.6 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Financial assets: | |||
Short-term investments | $ 598,806 | ||
Derivative financial instruments | $ 35,828 | 13,257 | $ 33,176 |
Deferred compensation | 132,985 | 141,072 | |
Financial liabilities: | |||
Derivative financial instruments | 33,723 | 74,255 | $ 32,318 |
Deferred compensation | 140,711 | 150,713 | |
Contingent consideration | 99,000 | 207,000 | |
Level 1 | |||
Financial assets: | |||
Short-term investments | 598,806 | ||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 132,985 | 141,072 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Short-term investments | 0 | ||
Derivative financial instruments | 35,828 | 13,257 | |
Deferred compensation | 0 | 0 | |
Financial liabilities: | |||
Derivative financial instruments | 33,723 | 74,255 | |
Deferred compensation | 140,711 | 150,713 | |
Contingent consideration | 0 | 0 | |
Level 3 | |||
Financial assets: | |||
Short-term investments | 0 | ||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Contingent consideration | 99,000 | 207,000 | |
Money market funds | |||
Financial assets: | |||
Cash equivalents: | 224,728 | 216,591 | |
Money market funds | Level 1 | |||
Financial assets: | |||
Cash equivalents: | 224,728 | 216,591 | |
Money market funds | Level 2 | |||
Financial assets: | |||
Cash equivalents: | 0 | 0 | |
Money market funds | Level 3 | |||
Financial assets: | |||
Cash equivalents: | 0 | 0 | |
Time deposits | |||
Financial assets: | |||
Cash equivalents: | 2,626 | 102,914 | |
Time deposits | Level 1 | |||
Financial assets: | |||
Cash equivalents: | 2,626 | 102,914 | |
Time deposits | Level 2 | |||
Financial assets: | |||
Cash equivalents: | 0 | 0 | |
Time deposits | Level 3 | |||
Financial assets: | |||
Cash equivalents: | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Conti
FAIR VALUE MEASUREMENTS - Contingent Consideration Schedule (Details) - Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Oct. 02, 2021 | Oct. 02, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration, beginning balance | $ 134,000 | $ 207,000 |
Change in fair value | (35,000) | (108,000) |
Contingent consideration, ending balance | $ 99,000 | $ 99,000 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | Dec. 28, 2020 | Oct. 02, 2021 | Apr. 03, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | $ 99,000,000 | $ 207,000,000 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | 0 | 0 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 5,683,800,000 | 5,710,200,000 | |
Fair Value | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 5,996,900,000 | 6,017,300,000 | |
Supreme | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration, earn out period | 1 year | ||
Contingent consideration arrangements, low value | $ 0 | ||
Contingent consideration arrangements, high value | $ 300,000,000 | ||
Contingent consideration | $ 99,000,000 | $ 207,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Oct. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Oct. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Oct. 02, 2021EUR (€) | Apr. 03, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative contract maturity (up to) | 20 months | |||||
Net pretax deferred losses for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | $ 20.9 | $ 20.9 | ||||
Net Investment Hedge | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | € | € 1,850,000,000 | |||||
Gain (loss) on derivative used in net investment hedge | 34.1 | $ (53.5) | 22.6 | $ (71.6) | ||
Foreign currency exchange | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | $ 2,500 | $ 2,500 | $ 2,500 | $ 2,500 | $ 2,500 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | $ 35,828 | $ 13,257 | $ 33,176 |
Fair Value of Derivatives with Unrealized Losses | (33,723) | (74,255) | (32,318) |
Foreign currency exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 35,674 | 12,301 | 28,676 |
Fair Value of Derivatives with Unrealized Losses | (32,853) | (73,087) | (31,157) |
Foreign currency exchange contracts not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 154 | 956 | 4,500 |
Fair Value of Derivatives with Unrealized Losses | $ (870) | $ (1,168) | $ (1,161) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Derivative Asset | |||
Gross amounts presented in the Consolidated Balance Sheets | $ 35,828 | $ 13,257 | $ 33,176 |
Gross amounts not offset in the Consolidated Balance Sheets | (17,201) | (13,246) | (23,491) |
Net amounts | 18,627 | 11 | 9,685 |
Derivative Liability | |||
Gross amounts presented in the Consolidated Balance Sheets | (33,723) | (74,255) | (32,318) |
Gross amounts not offset in the Consolidated Balance Sheets | 17,201 | 13,246 | 23,491 |
Net amounts | $ (16,522) | $ (61,009) | $ (8,827) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other current assets | $ 27,903 | $ 7,440 | $ 27,615 |
Accrued liabilities | (31,609) | (66,351) | (22,946) |
Other assets | 7,925 | 5,817 | 5,561 |
Other liabilities | $ (2,114) | $ (7,904) | $ (9,372) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) arising during the period | $ 34,361 | $ (39,731) | $ 29,798 | $ (47,326) |
Reclassification of net gains (losses) realized | (22,986) | 11,379 | (33,545) | 31,659 |
Foreign currency exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) arising during the period | 34,361 | (39,731) | 29,798 | (47,326) |
Foreign currency exchange | Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net gains (losses) realized | (4,963) | 2,135 | (6,761) | 2,306 |
Foreign currency exchange | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net gains (losses) realized | (16,501) | 8,443 | (22,670) | 25,148 |
Foreign currency exchange | Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net gains (losses) realized | (189) | 741 | (1,106) | 2,348 |
Foreign currency exchange | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net gains (losses) realized | (1,360) | 33 | (3,062) | 1,803 |
Interest expense | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net gains (losses) realized | $ 27 | $ 27 | $ 54 | $ 54 |
RESTRUCTURING - Additional Info
RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Apr. 03, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 3,458 | $ 23,373 | $ 7,763 | $ 45,830 | |
Restructuring reserve | 43,269 | 43,269 | $ 66,754 | ||
Accrued Current Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 43,000 | 43,000 | |||
Other Noncurrent Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 300 | 300 | |||
Selling, general and administrative expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 3,400 | 6,300 | |||
Cost of goods sold | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 100 | $ 1,500 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and employee-related benefits | $ 1,422 | $ 9,883 | $ 4,296 | $ 28,392 |
Asset impairments | 0 | 10,557 | 0 | 10,557 |
Accelerated depreciation | 2,036 | 2,857 | 3,467 | 6,664 |
Contract termination and other | 0 | 76 | 0 | 217 |
Total restructuring charges | $ 3,458 | $ 23,373 | $ 7,763 | $ 45,830 |
RESTRUCTURING - Restructuring_2
RESTRUCTURING - Restructuring costs by business segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3,458 | $ 23,373 | $ 7,763 | $ 45,830 |
Operating Segments | Outdoor | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 454 | 1,845 | 2,677 | 6,595 |
Operating Segments | Active | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 276 | 293 | 1,008 | 663 |
Operating Segments | Work | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 788 | 18,378 | 788 | 18,807 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,940 | $ 2,857 | $ 3,290 | $ 19,765 |
RESTRUCTURING - Activity in Res
RESTRUCTURING - Activity in Restructuring Accrual (Details) $ in Thousands | 6 Months Ended |
Oct. 02, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | $ 66,754 |
Charges | 4,296 |
Cash payments and settlements | (27,627) |
Adjustments to accruals | (38) |
Impact of foreign currency | (116) |
Amounts recorded in accrued liabilities. ending | 43,269 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 59,810 |
Charges | 4,296 |
Cash payments and settlements | (23,961) |
Adjustments to accruals | 2 |
Impact of foreign currency | (66) |
Amounts recorded in accrued liabilities. ending | 40,081 |
Other | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 6,944 |
Charges | 0 |
Cash payments and settlements | (3,666) |
Adjustments to accruals | (40) |
Impact of foreign currency | (50) |
Amounts recorded in accrued liabilities. ending | $ 3,188 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Oct. 02, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of possible loss interest payments | $ 191.4 |
Estimate of possible loss | $ 136.3 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Oct. 19, 2021$ / shares |
Subsequent Event | Dividend Declared | |
Subsequent Event [Line Items] | |
Cash dividend (in USD per share) | $ 0.50 |