Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 29, 2019 | Jul. 27, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-5256 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1180120 | |
Entity Address, Address Line One | 8505 E. Orchard Road | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
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 | 398,176,515 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | V F CORP | |
Entity Central Index Key | 0000103379 | |
Current Fiscal Year End Date | --03-28 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value, stated capital, $0.25 per share | |
Trading Symbol | VFC | |
Security Exchange Name | NYSE | |
0.625% fixed rate notes maturing in September 2023 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2023 | |
Trading Symbol | VFC23 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Current assets | |||
Cash and equivalents | $ 606,080 | $ 445,119 | $ 392,175 |
Accounts receivable, less allowance for doubtful accounts of: June 2019 ‑ $20,671; March 2019 - $19,638; June 2018 - $19,135 | 1,306,270 | 1,465,855 | 1,222,938 |
Inventories | 1,665,132 | 1,432,660 | 1,521,659 |
Other current assets | 413,373 | 433,793 | 401,515 |
Current assets of discontinued operations | 0 | 896,030 | 791,860 |
Total current assets | 3,990,855 | 4,673,457 | 4,330,147 |
Property, plant and equipment, net | 865,141 | 915,177 | 875,338 |
Intangible assets, net | 1,980,921 | 1,972,364 | 2,129,013 |
Goodwill | 1,544,132 | 1,541,314 | 1,594,986 |
Operating lease right-of-use assets | 1,281,106 | 0 | 0 |
Other assets | 739,809 | 772,755 | 774,613 |
Other assets of discontinued operations | 0 | 481,718 | 487,657 |
TOTAL ASSETS | 10,401,964 | 10,356,785 | 10,191,754 |
Current liabilities | |||
Short-term borrowings | 67,658 | 659,060 | 1,311,861 |
Current portion of long-term debt | 5,068 | 5,263 | 6,189 |
Accounts payable | 588,417 | 580,867 | 565,943 |
Accrued liabilities | 1,286,002 | 1,154,932 | 864,483 |
Current liabilities of discontinued operations | 0 | 261,482 | 247,080 |
Total current liabilities | 1,947,145 | 2,661,604 | 2,995,556 |
Long-term debt | 2,126,835 | 2,115,884 | 2,156,627 |
Operating lease liabilities | 1,043,664 | 0 | 0 |
Other liabilities | 1,132,706 | 1,232,200 | 1,260,681 |
Other liabilities of discontinued operations | 0 | 48,581 | 47,774 |
Commitments and contingencies | |||
Total liabilities | 6,250,350 | 6,058,269 | 6,460,638 |
Stockholders’ equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at June 2019, March 2019 or June 2018 | 0 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at June 2019 – 397,922,120; March 2019 – 396,824,662; June 2018 – 395,509,138 | 99,481 | 99,206 | 98,877 |
Additional paid-in capital | 3,988,385 | 3,921,784 | 3,688,529 |
Accumulated other comprehensive income (loss) | (867,386) | (902,075) | (882,078) |
Retained earnings | 931,134 | 1,179,601 | 825,788 |
Total stockholders’ equity | 4,151,614 | 4,298,516 | 3,731,116 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,401,964 | $ 10,356,785 | $ 10,191,754 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowance for doubtful accounts | $ 20,671 | $ 19,638 | $ 19,135 |
Preferred Stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common Stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common Stock, shares outstanding (in shares) | 397,922,120 | 396,824,662 | 395,509,138 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||
Net revenues | $ 2,271,479 | $ 2,137,135 |
Costs and operating expenses | ||
Cost of goods sold | 1,036,114 | 1,005,289 |
Selling, general and administrative expenses | 1,102,073 | 1,018,747 |
Total costs and operating expenses | 2,138,187 | 2,024,036 |
Operating income | 133,292 | 113,099 |
Interest income | 7,129 | 2,146 |
Interest expense | (22,127) | (26,999) |
Other income (expense), net | 5,598 | (19,425) |
Income from continuing operations before income taxes | 123,892 | 68,821 |
Income taxes | 26,643 | 7,457 |
Income from continuing operations | 97,249 | 61,364 |
Income (loss) from discontinued operations, net of tax | (48,028) | 98,994 |
Net income | $ 49,221 | $ 160,358 |
Earnings (loss) per common share - basic | ||
Continuing operations (in USD per share) | $ 0.25 | $ 0.16 |
Discontinued operations (in USD per share) | (0.12) | 0.25 |
Total earnings per common share - basic (in USD per share) | 0.12 | 0.41 |
Earnings (loss) per common share - diluted | ||
Continuing operations (in USD per share) | 0.24 | 0.15 |
Discontinued operations (in USD per share) | (0.12) | 0.25 |
Total earnings per common share - diluted (in USD per share) | $ 0.12 | $ 0.40 |
Weighted average shares outstanding | ||
Basic (in shares) | 396,727 | 394,165 |
Diluted (in shares) | 401,914 | 399,548 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 49,221 | $ 160,358 |
Foreign currency translation and other | ||
Gains (losses) arising during the period | 12,829 | (161,158) |
Income tax effect | 2,943 | (13,712) |
Defined benefit pension plans | ||
Current period actuarial gains (losses) | 0 | 53,940 |
Amortization of net deferred actuarial losses | 4,019 | 8,822 |
Amortization of deferred prior service costs | 13 | 669 |
Reclassification of deferred prior service cost due to curtailments | 0 | 6,842 |
Reclassification of deferred prior service cost due to curtailments | 0 | 9,483 |
Income tax effect | (1,708) | (20,655) |
Derivative financial instruments | ||
Gains arising during the period | 14,774 | |
Gains arising during the period | 94,629 | |
Income tax effect | 3,874 | |
Income tax effect | (11,358) | |
Reclassification to net income for (gains) losses realized | (10,495) | |
Reclassification to net income for (gains) losses realized | 16,317 | |
Income tax effect | 2,756 | |
Income tax effect | (1,867) | |
Other comprehensive income (loss) | 21,257 | (18,048) |
Comprehensive income | $ 70,478 | $ 142,310 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 49,221 | $ 160,358 |
Income (loss) from discontinued operations, net of tax | (48,028) | 98,994 |
Income from continuing operations, net of tax | 97,249 | 61,364 |
Adjustments to reconcile net income to cash (used) provided by operating activities: | ||
Depreciation and amortization, including operating lease right-of-use assets | 159,178 | 52,896 |
Stock-based compensation | 33,469 | 24,960 |
Provision for doubtful accounts | 2,161 | 2,448 |
Pension expense (less than) in excess of contributions | (2,837) | 2,537 |
Other, net | 12,685 | 6,206 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 164,266 | (27,309) |
Inventories | (228,120) | (139,170) |
Accounts payable | 7,148 | 79,518 |
Income taxes | 7,867 | (73,558) |
Accrued liabilities | (233,610) | 107,262 |
Operating lease right-of-use assets and liabilities | (102,586) | 0 |
Other assets and liabilities | 3,738 | 2,183 |
Cash (used) provided by operating activities - continuing operations | (79,392) | 99,337 |
Cash provided by operating activities - discontinued operations | 13,212 | 177,807 |
Cash (used) provided by operating activities | (66,180) | 277,144 |
INVESTING ACTIVITIES | ||
Business acquisitions, net of cash received | 0 | (321,395) |
Proceeds from sale of businesses, net of cash sold | 0 | 288,273 |
Capital expenditures | (46,270) | (62,484) |
Software purchases | (14,512) | (21,514) |
Other, net | 62,478 | 5,373 |
Cash provided (used) by investing activities - continuing operations | 1,696 | (111,747) |
Cash used by investing activities - discontinued operations | (2,327) | (17,483) |
Cash used by investing activities | (631) | (129,230) |
FINANCING ACTIVITIES | ||
Net decrease in short-term borrowings | (585,477) | (214,383) |
Payments on long-term debt | (1,479) | (1,557) |
Cash dividends paid | (202,538) | (181,517) |
Cash received from Kontoor Brands, net of cash transferred of $126.8 million | 906,148 | 0 |
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 7,199 | 53,500 |
Cash provided (used) by financing activities | 123,853 | (343,957) |
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 5,078 | (19,998) |
Net change in cash, cash equivalents and restricted cash | 62,120 | (216,041) |
Cash, cash equivalents and restricted cash – beginning of year | 556,587 | 689,190 |
Cash, cash equivalents and restricted cash – end of period | $ 618,707 | $ 473,149 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Cash transferred | $ 126,800 | |
Balances per Consolidated Balance Sheets: | ||
Cash and equivalents | 606,080 | $ 392,175 |
Other current assets | 3,909 | 4,067 |
Current and other assets of discontinued operations | 0 | 75,759 |
Other assets | 8,718 | 1,148 |
Total cash, cash equivalents and restricted cash | $ 618,707 | $ 473,149 |
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 |
Balance (in shares) at Mar. 31, 2018 | 394,313,070 | ||||
Balance at Mar. 31, 2018 | $ 3,688,096 | $ 98,578 | $ 3,607,424 | $ (864,030) | $ 846,124 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 160,358 | 160,358 | |||
Dividends on Common Stock | (181,517) | (181,517) | |||
Stock-based compensation, net (in shares) | 1,196,068 | ||||
Stock-based compensation, net | 80,271 | $ 299 | 81,105 | (1,133) | |
Foreign currency translation and other | (174,870) | (174,870) | |||
Defined benefit pension plans | 59,101 | 59,101 | |||
Derivative financial instruments | 97,721 | 97,721 | |||
Balance (in shares) at Jun. 30, 2018 | 395,509,138 | ||||
Balance at Jun. 30, 2018 | 3,731,116 | $ 98,877 | 3,688,529 | (882,078) | 825,788 |
Balance (in shares) at Mar. 30, 2019 | 396,824,662 | ||||
Balance at Mar. 30, 2019 | 4,298,516 | $ 99,206 | 3,921,784 | (902,075) | 1,179,601 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 49,221 | 49,221 | |||
Dividends on Common Stock | (202,538) | (202,538) | |||
Stock-based compensation, net (in shares) | 1,097,458 | ||||
Stock-based compensation, net | 42,564 | $ 275 | 66,601 | (24,312) | |
Foreign currency translation and other | 15,772 | 15,772 | |||
Defined benefit pension plans | 2,324 | 2,324 | |||
Derivative financial instruments | 3,161 | 3,161 | |||
Spin-off of Jeans Business | (54,915) | 75,293 | (130,208) | ||
Balance (in shares) at Jun. 29, 2019 | 397,922,120 | ||||
Balance at Jun. 29, 2019 | $ 4,151,614 | $ 99,481 | $ 3,988,385 | $ (867,386) | $ 931,134 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on Common Stock (in usd per share) | $ 0.51 | $ 0.46 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 29, 2019 | |
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 March 31, 2019 through March 28, 2020 ("Fiscal 2020"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2020 . For presentation purposes herein, all references to periods ended June 2019 and June 2018 relate to the fiscal periods ended on June 29, 2019 and June 30, 2018 , respectively. References to March 2019 relate to information as of March 30, 2019 . On May 22, 2019, VF completed the spin-off of its Jeans business, which included the Wrangler ® , Lee ® and Rock & Republic ® brands, as well as the VF Outlet TM business, into an independent, publicly traded company. As a result, VF reported the operating results for the Jeans business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date the spin-off was completed. Additionally, the Nautica ® brand business has been reported as discontinued operations in our Consolidated Statements of Income, and the related held-for-sale assets and liabilities have been presented 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 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 2020 presentation. The accompanying unaudited condensed 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 2019 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed 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 months ended June 2019 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2020 . 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 March 30, 2019 (“Fiscal 2019 Form 10-K”). |
RECENTLY ADOPTED AND ISSUED ACC
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 3 Months Ended |
Jun. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, “Leases (Topic 842)” , a new accounting standard on leasing. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Collectively, the guidance is referred to as FASB Accounting Standards Codification ("ASC") 842. This standard requires companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The Company adopted this standard on March 31, 2019, utilizing the modified retrospective method and has recognized the cumulative effect of initially applying the new standard in retained earnings. The effective date of the adoption has been used as the date of initial application, and thus comparative prior period financial information has not been restated and continues to be reported under accounting standards in effect for those periods. The standard provides certain optional practical expedients for transition. The Company elected the transition relief package of practical expedients by applying previous accounting conclusions under ASC Topic 840, Leases ("ASC 840"), to all leases that existed prior to the transition date. As a result, VF did not reassess (i) whether existing or expired contracts contain leases, (ii) lease classification for any existing or expired leases, or (iii) whether lease origination costs qualified as initial direct costs. The Company also elected the land easement practical expedient, which allows the Company to apply ASC 842 prospectively to land easements after the adoption date if they were not previously accounted for under ASC 840. Certain leases contain both lease and non-lease components. For leases associated with specific asset classes, including certain real estate, vehicles, manufacturing machinery and IT equipment, VF has elected the practical expedient which permits entities to account for separate lease and non-lease components as a single component. For all other lease contracts, the Company has elected to account for each lease component separately from the non-lease components of the contract. When applicable, VF will measure the consideration to be paid pursuant to the agreement and allocate this consideration to the lease and non-lease components based on relative stand-alone prices. Further, the Company made an accounting policy election to not recognize right-of-use assets and lease liabilities for leases with terms of 12 months or less. The adoption of ASC 842 resulted in a net decrease of $2.5 million in the retained earnings line item of the Consolidated Balance Sheet as of March 31, 2019. The adoption of ASC 842 also resulted in the recognition of operating lease right-of-use assets and operating lease liabilities within the Consolidated Balance Sheet. Refer to Note 10 for additional lease disclosures. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" , an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. The FASB subsequently issued updates to the standard to provide additional guidance on specific topics. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02 , "Income Statement-Reporting Comprehensive Income (Topic 220) : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", an update that addresses the effect of the change in the U.S. federal corporate income tax rate due to the enactment of the Tax Cuts and Jobs Act ("Tax Act") on items within accumulated other comprehensive income (loss). The guidance became effective for VF in the first quarter of Fiscal 2020. The Company elected to reclassify the income tax effects of the Tax Act on items within accumulated other comprehensive income (loss) of $61.9 million to retained earnings, which primarily related to deferred taxes previously recorded for pension benefits. The adoption of this guidance did not have an impact on VF's consolidated results of operations or cash flows. In June 2018, the FASB issued ASU No. 2018-07, " Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" , an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, "Codification Improvements" , an update that provides technical corrections, clarifications and other improvements across a variety of accounting topics. The transition and effective date guidance is based on the facts and circumstances of each update; however, many of them became effective for VF in the first quarter of Fiscal 2020. The guidance did not impact VF's consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for VF in the first quarter of the year ended April 3, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement" , an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation— Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans" , an update that modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" , an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements. |
REVENUES
REVENUES | 3 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following table provides information about accounts receivable, contract assets and contract liabilities: (In thousands) June 2019 March 2019 June 2018 Accounts receivable, net $ 1,306,270 $ 1,465,855 $ 1,222,938 Contract assets (a) 1,576 2,569 1,543 Contract liabilities (b) 44,364 30,181 27,105 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities and other liabilities line items in the Consolidated Balance Sheets. For the three months ended June 2019 , the Company recognized $24.7 million of revenue that was included in the contract liability balance during the period. 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. For the three months ended June 2019 , revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material. As of June 2019 , the Company expects to recognize $85.0 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 through December 2024. 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 June 2019 , 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 fixed consideration related to future minimum guarantees discussed above. 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. The wholesale channel includes fees generated from sourcing activities as the customers and point-in-time revenue recognition are similar to other wholesale arrangements. Three Months Ended June 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 341,756 $ 660,142 $ 377,548 $ 2,808 $ 1,382,254 Direct-to-consumer 266,342 565,887 40,852 3,454 876,535 Royalty 2,522 6,097 4,071 — 12,690 Total $ 610,620 $ 1,232,126 $ 422,471 $ 6,262 $ 2,271,479 Geographic revenues United States $ 303,052 $ 711,205 $ 346,160 $ — $ 1,360,417 International 307,568 520,921 76,311 6,262 911,062 Total $ 610,620 $ 1,232,126 $ 422,471 $ 6,262 $ 2,271,479 Three Months Ended June 2018 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 309,776 $ 654,848 $ 381,364 $ 8,305 $ 1,354,293 Direct-to-consumer 255,964 475,536 36,838 — 768,338 Royalty 2,860 6,553 5,091 — 14,504 Total $ 568,600 $ 1,136,937 $ 423,293 $ 8,305 $ 2,137,135 Geographic revenues United States $ 262,856 $ 644,105 $ 331,099 $ 8,305 $ 1,246,365 International 305,744 492,832 92,194 — 890,770 Total $ 568,600 $ 1,136,937 $ 423,293 $ 8,305 $ 2,137,135 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Icebreaker On April 3, 2018, VF acquired 100% of the stock of Icebreaker Holdings Limited ("Icebreaker") for NZ $274.4 million ( $198.5 million ) in cash, subject to working capital and other adjustments. The purchase price was primarily funded with short-term borrowings. The purchase price decreased NZ $1.4 million ( $0.9 million ) for the year ended March 2019, related to working capital adjustments, resulting in a revised purchase price of NZ $273.0 million ( $197.6 million ). The purchase price allocation was finalized during the three months ended March 2019. Icebreaker was a privately held company based in Auckland, New Zealand. Icebreaker ® , the primary brand, specializes in high-performance apparel based on natural fibers, including Merino wool, plant-based fibers and recycled fibers. It is an ideal complement to VF's Smartwool ® brand, which also features Merino wool in its clothing and accessories. Together, the Smartwool ® and Icebreaker ® brands position VF as a global leader in the Merino wool and natural fiber categories. The following table summarizes the estimated fair values of the Icebreaker assets acquired and liabilities assumed at the date of acquisition: (In thousands) April 3, 2018 Cash and equivalents $ 6,444 Accounts receivable 16,781 Inventories 31,728 Other current assets 3,931 Property, plant and equipment 3,858 Intangible assets 98,041 Other assets 4,758 Total assets acquired 165,541 Short-term borrowings 7,235 Accounts payable 2,075 Other current liabilities 21,262 Deferred income tax liabilities 26,870 Other noncurrent liabilities 433 Total liabilities assumed 57,875 Net assets acquired 107,666 Goodwill 89,943 Purchase price $ 197,609 The goodwill is attributable to the acquired workforce of Icebreaker and the significant synergies expected to arise as a result of the acquisition. All of the goodwill has been assigned to the Outdoor segment and none is expected to be deductible for tax purposes. The Icebreaker ® trademark, which management determined to have an indefinite life, has been valued at $70.1 million . Amortizable intangible assets have been assigned values of $27.8 million for customer relationships and $0.2 million for distribution agreements. Customer relationships are being amortized using an accelerated method over 11.5 years. Distribution agreements are being amortized on a straight-line basis over four years . Total transaction expenses for the Icebreaker acquisition of $7.4 million were recognized in the selling, general and administrative expenses line item in the Consolidated Statements of Income, of which $4.1 million was recognized during the three months ended June 2018 and the remainder was recognized prior to Fiscal 2019. In addition, the Company recognized a $9.9 million gain on derivatives used to hedge the purchase price of Icebreaker in the other income (expense), net line item in the Consolidated Statements of Income, of which $0.3 million was recognized during the three months ended June 2018 and the remainder was recognized prior to Fiscal 2019. Pro forma results of operations of the Company would not be materially different as a result of the Icebreaker acquisition and therefore are not presented. Altra On June 1, 2018, VF acquired 100% of the stock of Icon-Altra LLC, plus certain assets in Europe ("Altra"). The purchase price was $131.7 million in cash, subject to working capital and other adjustments and was primarily funded with short-term borrowings. The purchase price decreased $0.1 million during the year ended March 2019, related to working capital adjustments, resulting in a revised purchase price of $131.6 million . The allocation of the purchase price was finalized during the three months ended December 2018, resulting in a decrease of goodwill by $1.5 million related to a final adjustment to working capital balances. Altra ® , the primary brand, is an athletic and performance-based lifestyle footwear brand. Altra provides VF with a unique and differentiated technical footwear brand and a capability that, when applied across VF's footwear platforms, will serve as a catalyst for growth. The following table summarizes the estimated fair values of the Altra assets acquired and liabilities assumed at the date of acquisition: (In thousands) June 1, 2018 Accounts receivable $ 11,629 Inventories 9,310 Other current assets 575 Property, plant and equipment 1,107 Intangible assets 59,700 Total assets acquired 82,321 Accounts payable 5,068 Other current liabilities 7,415 Total liabilities assumed 12,483 Net assets acquired 69,838 Goodwill 61,719 Purchase price $ 131,557 The goodwill is attributable to the significant growth and synergies expected to arise as a result of the acquisition. All of the goodwill was assigned to the Outdoor segment and is expected to be deductible for tax purposes. The Altra ® trademark, which management determined to have an indefinite life, has been valued at $46.4 million . Amortizable intangible assets have been assigned values of $13.0 million for customer relationships and $0.3 million for distribution agreements. Customer relationships are being amortized using an accelerated method over 15 years. Distribution agreements are being amortized on a straight-line basis over four years . Total transaction expenses for the Altra acquisition were $2.3 million , all of which were recognized in the selling, general and administrative expenses line item in the Consolidated Statement of Income during the three months ended June 2018. Pro forma results of operations of the Company would not be materially different as a result of the Altra acquisition and therefore are not presented. |
DISCONTINUED OPERATIONS AND OTH
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | 3 Months Ended |
Jun. 29, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | DISCONTINUED OPERATIONS AND OTHER DIVESTITURES 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. Discontinued Operations Jeans Business On May 22, 2019, VF completed the spin-off its Jeans business, which included the Wrangler ® , Lee ® and Rock & Republic ® brands, as well as the VF Outlet TM business, into an independent, publicly traded company now operating under the name Kontoor Brands, Inc. ("Kontoor Brands") and trading under the symbol "KTB" on the New York Stock Exchange. The spin-off was effected through a distribution to VF shareholders of one share of Kontoor Brands common stock for every seven shares of VF common stock held on the record date of May 10, 2019. Accordingly, the Company has reported the results of the Jeans business as discontinued operations in the Consolidated Statements of Income and presented the related assets and liabilities as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date the spin-off was completed. In connection with the spin-off, Kontoor Brands entered into a credit agreement with respect to $1.55 billion in senior secured credit facilities consisting of a senior secured five -year $750.0 million term loan A facility, a senior secured seven -year $300.0 million term loan B facility and a five -year $500.0 million senior secured revolving credit facility (collectively, the "Kontoor Credit Facilities"). Prior to the effective date of the spin-off, Kontoor Brands incurred $1.05 billion of indebtedness under the Kontoor Credit Facilities, which was primarily used to fund a transfer of $906.1 million to VF and its subsidiaries, net of $126.8 million of cash received from VF. As a result of the spin-off, VF divested net assets of $54.9 million , including the indebtedness under the Kontoor Credit Facilities. Also included in the net assets divested was $75.3 million of net accumulated other comprehensive losses attributable to the Jeans business, primarily related to foreign currency translation. The results of the Wrangler ® , Lee ® and Rock & Republic ® brands were previously reported in the Jeans segment, the results of the Wrangler ® RIGGS brand were previously reported in the Work segment, and the results of the non-VF products sold in VF Outlet TM stores were previously reported in the Other category included in the reconciliation of segment revenues and segment profit. The results of the Jeans business recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income were a loss of $48.0 million and income of $98.6 million for the three months ended June 2019 and June 2018, respectively. Certain corporate overhead costs and segment costs previously allocated to the Jeans business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations. The results of the Jeans business reported as discontinued operations include $59.5 million of separation and related expenses during the three months ended June 2019. In connection with the spin-off of the Jeans business, the Company entered into several agreements with Kontoor Brands that govern the relationship of the parties following the spin-off including the Separation and Distribution Agreement, the Tax Matters Agreement, the Transition Services Agreement, the VF Intellectual Property License Agreement and the Employee Matters Agreement. Under the terms of the Transition Services Agreement, the Company and Kontoor Brands agreed to provide each other certain transitional services including information technology, information management, human resources, employee benefits administration, supply chain, facilities, and other limited finance and accounting related services for periods up to 18 months. Payments and operating expense reimbursements for transition services are recorded within the reportable segments or within the corporate and other expenses line item, in the reconciliation of segment profit in Note 15, based on the function providing the service. Nautica ® Brand Business During the three months ended December 30, 2017, the Company reached the strategic decision to exit the Nautica ® brand business, and determined that it met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Nautica ® brand business as discontinued operations in the Consolidated Statements of Income and presented the related held-for-sale assets and liabilities as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. On April 30, 2018, VF completed the sale of the Nautica ® brand business. The Company received proceeds of $285.8 million , net of cash sold, resulting in a final after-tax loss on sale of $38.2 million , including a $5.0 million decrease in the estimated loss on sale that was recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income for the three months ended June 2018 . The results of the Nautica ® brand business recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income were income of $0.4 million (including a $5.0 million decrease in the estimated loss on sale) for the three months ended June 2018 . Under the terms of the transition services agreement, the Company provided certain support services for periods up to 12 months from the closing date of the transaction. Revenue and related expense items associated with the transition services were recorded in the Other category, and operating expense reimbursements were recorded within the corporate and other expenses line item, in the reconciliation of segment revenues and segment profit in Note 15. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the Jeans business and Nautica ® brand business that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income: Three Months Ended June (In thousands) 2019 2018 Net revenues $ 335,203 $ 672,924 Cost of goods sold 203,124 394,394 Selling, general and administrative expenses 152,798 165,931 Interest, net (552 ) 969 Other income (expense), net (667 ) (969 ) Income (loss) from discontinued operations before income taxes (21,938 ) 112,599 Gain on the sale of discontinued operations before income taxes — 4,206 Total income (loss) from discontinued operations before income taxes (21,938 ) 116,805 Income tax expense (a) (26,090 ) (17,811 ) Income (loss) from discontinued operations, net of tax $ (48,028 ) $ 98,994 (a) Income tax expense for the three months ended June 2019 includes additional tax expense on nondeductible transaction costs and uncertain tax positions. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented: (In thousands) June 2019 March 2019 June 2018 Cash and equivalents $ — $ 97,892 $ 75,742 Accounts receivable, net — 242,941 205,596 Inventories — 510,370 472,166 Other current assets — 44,827 38,356 Property, plant and equipment, net — 142,091 142,826 Intangible assets — 51,913 55,263 Goodwill — 213,570 221,176 Other assets — 74,144 68,392 Total assets of discontinued operations $ — $ 1,377,748 $ 1,279,517 Short-term borrowings $ — $ 5,995 $ 5,062 Accounts payable — 113,866 109,638 Accrued liabilities — 141,621 132,380 Other liabilities — 48,581 47,774 Total liabilities of discontinued operations $ — $ 310,063 $ 294,854 The following table presents information regarding certain components of cash flows from discontinued operations: Three Months Ended June (In thousands) 2019 2018 Cash provided by operating activities $ 13,212 $ 177,807 Cash used by investing activities (2,327 ) (17,483 ) Non-cash items: Depreciation and amortization $ 4,829 $ 18,234 Capital expenditures 2,651 6,435 Other Divestitures Reef ® Brand Business During the three months ended September 29, 2018, the Company reached the decision to sell the Reef ® brand business, which was included in the Active segment. VF signed a definitive agreement for the sale of the Reef ® brand business on October 2, 2018, and completed the transaction on October 26, 2018. VF received cash proceeds of $139.4 million , and recorded a $14.4 million final loss on sale, which was included in the other income (expense), net line item in the Consolidated Statement of Income for the year ended March 2019. Under the terms of the transition services agreement, the Company is providing certain support services for periods up to 21 months from the closing date of the transaction. Revenue and related expense items associated with the transition services and operating expense reimbursements are recorded in the Other category in the reconciliation of segment revenues and segment profit in Note 15. Van Moer Business During the three months ended September 29, 2018, the Company reached the decision to sell the Van Moer business, which was acquired in connection with the Williamson-Dickie business and included in the Work segment. VF completed the sale of the Van Moer business on October 5, 2018, and received cash proceeds of €7.0 million ( $8.1 million ). VF recorded a $22.4 million final loss on sale, which was included in the other income (expense), net line item in the Consolidated Statement of Income for the year ended March 2019. |
SALE OF ACCOUNTS RECEIVABLE
SALE OF ACCOUNTS RECEIVABLE | 3 Months Ended |
Jun. 29, 2019 | |
Receivables [Abstract] | |
SALE OF ACCOUNTS RECEIVABLE | SALE OF ACCOUNTS RECEIVABLE In connection with the spin-off of its Jeans business, VF terminated its agreement with the financial institution to sell trade accounts receivable on a recurring, non-recourse basis. As of June 2019 , the Company had no |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (In thousands) June 2019 March 2019 June 2018 Finished products $ 1,511,217 $ 1,284,293 $ 1,373,591 Work-in-process 77,921 73,968 75,871 Raw materials 75,994 74,399 72,197 Total inventories $ 1,665,132 $ 1,432,660 $ 1,521,659 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS June 2019 March 2019 (In thousands) Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 17 years Accelerated $ 332,746 $ 141,015 $ 191,731 $ 197,129 License agreements 19 years Accelerated 7,616 4,835 2,781 2,807 Trademark 3 years Straight-line 800 458 342 399 Other 8 years Straight-line 8,264 4,443 3,821 4,032 Amortizable intangible assets, net 198,675 204,367 Indefinite-lived intangible assets: Trademarks and trade names 1,782,246 1,767,997 Intangible assets, net $ 1,980,921 $ 1,972,364 Intangible assets increased during the three months ended June 2019 due to the impact of foreign currency fluctuations. Amortization expense for the three months ended June 2019 was $6.3 million . Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2020 is $25.7 million , $24.3 million , $22.7 million , $21.3 million and $20.5 million , respectively. |
GOODWILL
GOODWILL | 3 Months Ended |
Jun. 29, 2019 | |
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 2019 $ 983,889 $ 393,956 $ 163,469 $ 1,541,314 Currency translation 349 2,675 (206 ) 2,818 Balance, June 2019 $ 984,238 $ 396,631 $ 163,263 $ 1,544,132 No impairment charges were recorded during the three months ended June 2019 |
LEASES
LEASES | 3 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
LEASES | LEASES VF determines if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. While the substantial majority of these leases are operating leases, certain distribution centers and office spaces are finance leases. Leases for real estate typically have initial terms ranging from 3 to 15 years, generally with renewal options. Leases for equipment typically have initial terms ranging from 2 to 5 years and vehicle leases typically have initial terms ranging from 1 to 8 years. In determining the lease term used in the lease right-of-use asset and lease liability calculations, the Company considers various factors such as market conditions and the terms of any renewal or termination options that may exist. When deemed reasonably certain, the renewal and termination options are included in the determination of the lease term and calculation of the lease right-of-use asset and lease liability. Most leases have fixed rental payments. Many of the real estate leases also require additional variable payments for occupancy-related costs, real estate taxes and insurance, as well as other payments (e.g., contingent rent) owed when sales at individual retail store locations exceed a stated base amount. Variable lease payments are excluded from the measurement of the lease liability and are recognized in profit and loss in the period in which the event or conditions that triggers those payments occur. VF estimates the amount it expects to pay to the lessor under a residual value guarantee and includes it in lease payments used to measure the lease liability only for amounts probable of being owed by VF at the commencement date. VF calculates lease right-of-use assets and lease liabilities as the present value of lease payments over the lease term at commencement date. When readily determinable, the Company uses the implicit rate to determine the present value of lease payments, which generally does not happen in practice. As the rate implicit in the majority of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, including the lease term, currency, country specific risk premium and adjustments for collateralized debt. Operating lease expense is recorded as a single lease cost on a straight-line basis over the lease term. For finance leases, right-of-use asset amortization and interest on lease liabilities are presented separately in the Consolidated Statement of Income. The Company assesses whether a sale leaseback transaction qualifies as a sale when the transaction occurs. For transactions qualifying as a sale, VF derecognizes the underlying asset and recognizes the entire gain or loss at the time of the sale. The corresponding lease entered into with the buyer-lessor is accounted for as an operating lease. During the three months ended June 2019, the Company entered into a sale leaseback transaction for certain office real estate and related assets. The transaction qualified as a sale, and thus the Company recognized a gain of $11.3 million resulting from the transaction during the three months ended June 2019. As of June 2019, the Company has signed certain distribution center leases that have not yet commenced but will create significant rights and obligations. The leases will commence in Fiscal 2020 and Fiscal 2021 and have lease terms of 15 years. Other leases signed that have not yet commenced are not individually significant. The Company does not have material subleases. The assets and liabilities related to operating and finance leases were as follows: (In thousands) Location in Consolidated Balance Sheet June 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 1,281,106 Finance lease assets Property, plant and equipment 24,437 Total lease assets $ 1,305,543 Liabilities: Current Operating lease liabilities Accrued liabilities $ 326,874 Finance lease liabilities Current portion of long-term debt 5,068 Noncurrent Operating lease liabilities Operating lease liabilities 1,043,664 Finance lease liabilities Long-term debt 27,586 Total lease liabilities $ 1,403,192 The components of lease costs were as follows: (In thousands) Three Months Ended June 2019 Operating lease cost (a) $ 101,459 Finance lease cost – amortization of right-of-use asset 969 Finance lease cost – interest on lease liability 284 Short-term lease cost 569 Variable lease cost 1,690 Gain recognized from sale-leaseback transactions (11,329 ) Total lease cost $ 93,642 (a) Includes sublease income, which is not material. Supplemental cash flow information related to leases was as follows: (In thousands) Three Months Ended June 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 104,539 Operating cash flows – finance leases 284 Financing cash flows – finance leases 1,223 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases (a) 1,374,872 Finance leases — (a) Includes amounts recorded upon adoption of ASC 842. Lease terms and discount rates were as follows: June 2019 Weighted average remaining lease term: Operating leases 5.58 years Finance leases 13.41 years Weighted average discount rate: Operating leases 2.50 % Finance leases 3.22 % Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of June 2019 were as follows: (In thousands) Operating Leases Finance Leases Total Remainder of 2020 $ 269,262 $ 4,522 $ 273,784 2021 366,243 6,532 372,775 2022 254,351 1,911 256,262 2023 186,670 1,626 188,296 2024 118,016 1,550 119,566 Thereafter 281,021 23,495 304,516 Total lease payments 1,475,563 39,636 1,515,199 Less: present value adjustment 105,025 6,982 112,007 Present value of lease liabilities $ 1,370,538 $ 32,654 $ 1,403,192 The Company excluded approximately $286.5 million of leases (undiscounted basis) that have not yet commenced. These leases will commence in Fiscal 2020 with lease terms of 2 to 15 years. Future minimum lease payments under operating leases with noncancelable lease terms in excess of one year from continuing operations as of March 2019, prior to the adoption of ASC 842, were as follows: (In thousands) Operating Leases 2020 $ 320,224 2021 287,829 2022 212,918 2023 154,920 2024 100,789 Thereafter 251,228 Total lease payments $ 1,327,908 |
LEASES | LEASES VF determines if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. While the substantial majority of these leases are operating leases, certain distribution centers and office spaces are finance leases. Leases for real estate typically have initial terms ranging from 3 to 15 years, generally with renewal options. Leases for equipment typically have initial terms ranging from 2 to 5 years and vehicle leases typically have initial terms ranging from 1 to 8 years. In determining the lease term used in the lease right-of-use asset and lease liability calculations, the Company considers various factors such as market conditions and the terms of any renewal or termination options that may exist. When deemed reasonably certain, the renewal and termination options are included in the determination of the lease term and calculation of the lease right-of-use asset and lease liability. Most leases have fixed rental payments. Many of the real estate leases also require additional variable payments for occupancy-related costs, real estate taxes and insurance, as well as other payments (e.g., contingent rent) owed when sales at individual retail store locations exceed a stated base amount. Variable lease payments are excluded from the measurement of the lease liability and are recognized in profit and loss in the period in which the event or conditions that triggers those payments occur. VF estimates the amount it expects to pay to the lessor under a residual value guarantee and includes it in lease payments used to measure the lease liability only for amounts probable of being owed by VF at the commencement date. VF calculates lease right-of-use assets and lease liabilities as the present value of lease payments over the lease term at commencement date. When readily determinable, the Company uses the implicit rate to determine the present value of lease payments, which generally does not happen in practice. As the rate implicit in the majority of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, including the lease term, currency, country specific risk premium and adjustments for collateralized debt. Operating lease expense is recorded as a single lease cost on a straight-line basis over the lease term. For finance leases, right-of-use asset amortization and interest on lease liabilities are presented separately in the Consolidated Statement of Income. The Company assesses whether a sale leaseback transaction qualifies as a sale when the transaction occurs. For transactions qualifying as a sale, VF derecognizes the underlying asset and recognizes the entire gain or loss at the time of the sale. The corresponding lease entered into with the buyer-lessor is accounted for as an operating lease. During the three months ended June 2019, the Company entered into a sale leaseback transaction for certain office real estate and related assets. The transaction qualified as a sale, and thus the Company recognized a gain of $11.3 million resulting from the transaction during the three months ended June 2019. As of June 2019, the Company has signed certain distribution center leases that have not yet commenced but will create significant rights and obligations. The leases will commence in Fiscal 2020 and Fiscal 2021 and have lease terms of 15 years. Other leases signed that have not yet commenced are not individually significant. The Company does not have material subleases. The assets and liabilities related to operating and finance leases were as follows: (In thousands) Location in Consolidated Balance Sheet June 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 1,281,106 Finance lease assets Property, plant and equipment 24,437 Total lease assets $ 1,305,543 Liabilities: Current Operating lease liabilities Accrued liabilities $ 326,874 Finance lease liabilities Current portion of long-term debt 5,068 Noncurrent Operating lease liabilities Operating lease liabilities 1,043,664 Finance lease liabilities Long-term debt 27,586 Total lease liabilities $ 1,403,192 The components of lease costs were as follows: (In thousands) Three Months Ended June 2019 Operating lease cost (a) $ 101,459 Finance lease cost – amortization of right-of-use asset 969 Finance lease cost – interest on lease liability 284 Short-term lease cost 569 Variable lease cost 1,690 Gain recognized from sale-leaseback transactions (11,329 ) Total lease cost $ 93,642 (a) Includes sublease income, which is not material. Supplemental cash flow information related to leases was as follows: (In thousands) Three Months Ended June 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 104,539 Operating cash flows – finance leases 284 Financing cash flows – finance leases 1,223 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases (a) 1,374,872 Finance leases — (a) Includes amounts recorded upon adoption of ASC 842. Lease terms and discount rates were as follows: June 2019 Weighted average remaining lease term: Operating leases 5.58 years Finance leases 13.41 years Weighted average discount rate: Operating leases 2.50 % Finance leases 3.22 % Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of June 2019 were as follows: (In thousands) Operating Leases Finance Leases Total Remainder of 2020 $ 269,262 $ 4,522 $ 273,784 2021 366,243 6,532 372,775 2022 254,351 1,911 256,262 2023 186,670 1,626 188,296 2024 118,016 1,550 119,566 Thereafter 281,021 23,495 304,516 Total lease payments 1,475,563 39,636 1,515,199 Less: present value adjustment 105,025 6,982 112,007 Present value of lease liabilities $ 1,370,538 $ 32,654 $ 1,403,192 The Company excluded approximately $286.5 million of leases (undiscounted basis) that have not yet commenced. These leases will commence in Fiscal 2020 with lease terms of 2 to 15 years. Future minimum lease payments under operating leases with noncancelable lease terms in excess of one year from continuing operations as of March 2019, prior to the adoption of ASC 842, were as follows: (In thousands) Operating Leases 2020 $ 320,224 2021 287,829 2022 212,918 2023 154,920 2024 100,789 Thereafter 251,228 Total lease payments $ 1,327,908 |
PENSION PLANS
PENSION PLANS | 3 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
PENSION PLANS | PENSION PLANS The components of pension (income) cost for VF’s defined benefit plans were as follows: Three Months Ended June (In thousands) 2019 2018 Service cost – benefits earned during the period $ 3,381 $ 6,224 Interest cost on projected benefit obligations 14,761 16,013 Expected return on plan assets (23,178 ) (23,834 ) Settlement charges — 6,842 Curtailments — 9,483 Amortization of deferred amounts: Net deferred actuarial losses 4,019 8,822 Deferred prior service costs 13 669 Net periodic pension (income) cost $ (1,004 ) $ 24,219 The amounts reported in these disclosures for prior periods have not been segregated between continuing and discontinued operations. VF has reported the service cost component of net periodic pension (income) cost in operating income and the other components (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and actuarial gains and losses) in the other income (expense), net line item in the Consolidated Statements of Income. VF contributed $1.8 million to its defined benefit plans during the three months ended June 2019 , and intends to make approximately $22.6 million of contributions during the remainder of Fiscal 2020 . In the first quarter of Fiscal 2019, VF approved a freeze of all future benefit accruals under the U.S. qualified defined benefit pension plan and the supplemental defined benefit pension plan, effective December 31, 2018. Accordingly, the Company recognized a $9.5 million pension curtailment loss in the other income (expense), net line item in the Consolidated Statement of Income for the three months ended June 2018. Additionally, VF reported $6.8 million |
CAPITAL AND ACCUMULATED OTHER C
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Common Stock During the three months ended June 2019 , 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 June 2019 , March 2019 or June 2018 . 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. Prior to March 2019, VF Common Stock was also held by the Company’s deferred compensation plans and was treated as treasury shares for financial reporting purposes. As of June 2019 , there were no shares held in the Company's deferred compensation plans. Balances related to shares held for deferred compensation plans were as follows: (In thousands, except share amounts) June 2019 March 2019 June 2018 Shares held for deferred compensation plans — — 210,124 Cost of shares held for deferred compensation plans $ — $ — $ 2,663 Accumulated Other Comprehensive Income (Loss) Comprehensive income consists of net income and specified components of other comprehensive income (“OCI”), which relates to changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income is presented in the Consolidated Statements of Comprehensive Income. The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: (In thousands) June 2019 March 2019 June 2018 Foreign currency translation and other $ (635,901 ) $ (725,679 ) $ (651,739 ) Defined benefit pension plans (290,468 ) (243,184 ) (230,517 ) Derivative financial instruments 58,983 66,788 178 Accumulated other comprehensive income (loss) $ (867,386 ) $ (902,075 ) $ (882,078 ) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended June 2019 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2019 $ (725,679 ) $ (243,184 ) $ 66,788 $ (902,075 ) Adoption of new accounting standard, ASU 2018-02 (9,088 ) (50,402 ) (2,371 ) (61,861 ) Other comprehensive income (loss) before reclassifications 15,772 (823 ) 10,900 25,849 Amounts reclassified from accumulated other comprehensive income (loss) — 3,147 (7,739 ) (4,592 ) Spin-off of Jeans Business 83,094 794 (8,595 ) 75,293 Net other comprehensive income (loss) 89,778 (47,284 ) (7,805 ) 34,689 Balance, June 2019 $ (635,901 ) $ (290,468 ) $ 58,983 $ (867,386 ) Three Months Ended June 2018 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2018 $ (476,869 ) $ (289,618 ) $ (97,543 ) $ (864,030 ) Other comprehensive income (loss) before reclassifications (174,870 ) 40,228 83,271 (51,371 ) Amounts reclassified from accumulated other comprehensive income (loss) — 18,873 14,450 33,323 Net other comprehensive income (loss) (174,870 ) 59,101 97,721 (18,048 ) Balance, June 2018 $ (651,739 ) $ (230,517 ) $ 178 $ (882,078 ) Reclassifications out of accumulated OCI were as follows: (In thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income Three Months Ended June 2019 2018 Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net $ (4,019 ) $ (8,822 ) Deferred prior service costs Other income (expense), net (13 ) (669 ) Pension curtailment losses and settlement charges Other income (expense), net — (16,325 ) Total before tax (4,032 ) (25,816 ) Tax benefit 885 6,943 Net of tax (3,147 ) (18,873 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales (2,905 ) 945 Foreign exchange contracts Cost of goods sold 11,105 (11,938 ) Foreign exchange contracts Selling, general and administrative expenses 716 (2,698 ) Foreign exchange contracts Other income (expense), net 2,872 (1,393 ) Interest rate contracts Interest expense (1,293 ) (1,233 ) Total before tax 10,495 (16,317 ) Tax (expense) benefit (2,756 ) 1,867 Net of tax 7,739 (14,450 ) Total reclassifications for the period, net of tax $ 4,592 $ (33,323 ) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Spin-Off of Jeans Business In connection with the spin-off of the Jeans business on May 22, 2019, the Company adjusted its outstanding equity awards in accordance with the terms of the Employee Matters Agreement between the Company and Kontoor Brands. Adjustments to the underlying shares and terms of outstanding stock options, restricted stock units ("RSUs") and restricted stock were made to preserve the intrinsic value of the awards immediately before the separation. The adjustment of the underlying shares and exercise prices, as applicable, was determined using a ratio based on the relative values of the VF pre-distribution stock value and the VF post-distribution stock value as determined by the Company. The outstanding awards continue to vest over their original vesting periods. The Company will recognize $13.0 million of total incremental compensation cost related to the adjustment of the VF equity awards, of which $12.0 million was recognized during the three months ended June 2019. In connection with the spin-off, stock options to purchase 756,709 shares of VF Common Stock, 52,018 performance-based RSUs, 79,187 nonperformance-based RSUs and 112,763 restricted shares of VF Common Stock were converted into Kontoor Brands equity awards. Incentive Equity Awards Granted During the three months ended June 2019 , VF granted stock options to employees and nonemployee members of VF's Board of Directors to purchase 1,452,414 shares of its Common Stock at an exercise price of $84.23 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. 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: Three Months Ended June 2019 Expected volatility 24% to 27% Weighted average expected volatility 25% Expected term (in years) 6.2 to 7.6 Weighted average dividend yield 2.5% Risk-free interest rate 2.1% to 2.4% Weighted average fair value at date of grant $17.20 Also during the three months ended June 2019 , VF granted 268,449 performance-based RSUs to employees that enable them to receive shares of VF Common Stock at the end of a three -year performance cycle. 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 Talent 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 fair market value of VF Common Stock at the date the units were granted was $84.23 per share. The actual number of performance-based RSUs earned may also be adjusted upward or downward by 25% of the target award, based on how VF’s total shareholder return (“TSR”) over the three -year period compares to the TSR for companies included in the Standard & Poor’s 500 Consumer Discretionary Index. The grant date fair value of the TSR-based adjustment related to the performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $7.11 per share. VF granted 10,780 nonperformance-based RSUs to nonemployee members of the Board of Directors during the three months ended June 2019. 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 $84.23 per share. VF granted 7,500 nonperformance-based RSUs to certain key employees in international jurisdictions during the three months ended June 2019 . These units vest 50% over a two -year period and 50% over a four -year period from the date of grant and each unit entitles the holder to one share of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $84.23 per share. In addition, VF granted 158,215 nonperformance-based RSUs to employees during the three months ended June 2019 . These awards vest 50% over a two -year period and 50% over a four -year period from the date of grant and entitle the holder to one share of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $84.23 per share. VF granted 40,205 restricted shares of VF Common Stock to certain members of management during the three months ended June 2019 . 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 $84.23 per share. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate for the three months ended June 2019 was 21.5% compared to 10.8% in the 2018 period. The three months ended June 2019 included a discrete tax benefit of $2.2 million related to stock compensation and a discrete tax expense of $2.2 million related to unrecognized tax benefits and interest. The 2018 period included a net discrete tax benefit of $6.4 million , which included a $5.7 million tax benefit related to stock compensation, $0.6 million of net tax expense related to unrecognized tax benefits and interest, a $2.9 million net tax benefit related to adjustments to provisional amounts recorded in 2017 under the Tax Act, and $1.6 million of tax expense related to adjustments to previously recognized state income tax credits. The $6.4 million net discrete tax benefit in the 2018 period reduced the effective income tax rate by 9.3% . Without discrete items, the effective income tax rate for the three months ended June 2019 increased by 1.4% compared with the 2018 period primarily due to a lower percentage of income in lower tax rate jurisdictions. 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 through 2014 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. In February 2015, the European Union Commission (“EU”) opened a state aid investigation into Belgium’s rulings. On January 11, 2016, the EU announced its decision that these rulings were illegal and ordered that tax benefits granted under these rulings should be collected from the affected companies, including VF. On March 22, 2016, the Belgium government filed an appeal seeking annulment of the EU decision. Additionally, on June 21, 2016, VF Europe BVBA filed its own application for annulment of the EU decision. On December 22, 2016, Belgium adopted a law which entitled the Belgium tax authorities to issue tax assessments, and demand timely payments from companies which benefited from the excess profits regime. On January 10, 2017, VF Europe BVBA received an assessment for €31.9 million tax and interest related to excess profits benefits received in prior years. VF Europe BVBA remitted €31.9 million ( $33.9 million ) on January 13, 2017, which was recorded as an income tax receivable based on the expected success of the aforementioned requests for annulment. An additional assessment of €3.1 million ( $3.8 million ) was received and paid in January 2018. On February 14, 2019 the General Court annulled the EU decision and on April 26, 2019 the EU appealed the General Court’s annulment. Both listed requests for annulment remain open and unresolved. If this matter is adversely resolved, these amounts will not be collected by VF. During the three months ended June 2019 , the amount of net unrecognized tax benefits and associated interest increased by $6.3 million to $180.2 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 $24.9 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $23.8 million would reduce income tax expense. On May 19, 2019, Switzerland voted to approve the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Act"). Due to various factors, the Swiss Tax Act was not considered enacted for GAAP purposes during the three months ended June 2019. The Company is currently evaluating the Swiss Tax Act and the associated tax effects will be reflected in the period the Swiss Tax Act is considered enacted. We believe the Swiss Tax Act will have a material impact to the Company's tax expense. |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION | 3 Months Ended |
Jun. 29, 2019 | |
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 from transition services related to the sales of the Reef ® and Nautica ® brand businesses, as well as sales of non-VF products. Financial information for VF's reportable segments was as follows: Three Months Ended June (In thousands) 2019 2018 Segment revenues: Outdoor $ 610,620 $ 568,600 Active 1,232,126 1,136,937 Work 422,471 423,293 Other 6,262 8,305 Total segment revenues $ 2,271,479 $ 2,137,135 Segment profit (loss): Outdoor $ (80,270 ) $ (83,495 ) Active 307,566 269,197 Work 47,025 48,927 Other (1,616 ) 2,233 Total segment profit 272,705 236,862 Corporate and other expenses (a) (133,815 ) (143,188 ) Interest expense, net (14,998 ) (24,853 ) Income from continuing operations before income taxes $ 123,892 $ 68,821 (a) Certain corporate overhead and other costs of $24.6 million for the three -month period ended June 2018 , previously allocated to the former Jeans segment and Other category for segment reporting purposes, have been reallocated to continuing operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended June (In thousands, except per share amounts) 2019 2018 Earnings per share – basic: Income from continuing operations $ 97,249 $ 61,364 Weighted average common shares outstanding 396,727 394,165 Earnings per share from continuing operations $ 0.25 $ 0.16 Earnings per share – diluted: Income from continuing operations $ 97,249 $ 61,364 Weighted average common shares outstanding 396,727 394,165 Incremental shares from stock options and other dilutive securities 5,187 5,383 Adjusted weighted average common shares outstanding 401,914 399,548 Earnings per share from continuing operations $ 0.24 $ 0.15 Outstanding options to purchase approximately 1.5 million and 1.8 million shares were excluded from the calculations of diluted earnings per share for the three -month periods ended June 2019 and June 2018 , respectively, because the effect of their inclusion would have been anti-dilutive. In addition, 0.8 million and 0.9 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three -month periods ended June 2019 and June 2018 , respectively, because these units were not considered to be contingent outstanding shares in those periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 29, 2019 | |
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 June 2019 Financial assets: Cash equivalents: Money market funds $ 344,357 $ 344,357 $ — $ — Time deposits 3,726 3,726 — — Derivative financial instruments 80,351 — 80,351 — Investment securities 131,989 124,627 7,362 — Financial liabilities: Derivative financial instruments 11,374 — 11,374 — Deferred compensation 144,131 — 144,131 — Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2019 Financial assets: Cash equivalents: Money market funds $ 248,560 $ 248,560 $ — $ — Time deposits 8,257 8,257 — — Derivative financial instruments 92,771 — 92,771 — Investment securities 186,698 176,209 10,489 — Financial liabilities: Derivative financial instruments 22,337 — 22,337 — Deferred compensation 199,336 — 199,336 — The amounts reported in the table above for prior periods have not been segregated between continuing and discontinued operations. The March 2019 balances include $50.8 million of deferred compensation liabilities and associated assets related to the Jeans business, which were transferred in connection with the spin-off. (a) There were no transfers among the levels within the fair value hierarchy during the three months ended June 2019 or the year ended March 2019 . VF’s cash equivalents include money market funds and short-term time deposits 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. Investment securities are held in VF’s deferred compensation plans 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 and a separately managed fixed-income fund (Level 2) with underlying investments that are valued based on quoted prices for similar assets in active markets or quoted prices in inactive markets for identical assets. 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. 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 June 2019 and March 2019 , their carrying values approximated fair value. Additionally, at June 2019 and March 2019 , the carrying values of VF’s long-term debt, including the current portion, were $2,131.9 million and $2,121.1 million , respectively, compared with fair values of $2,392.5 million and $2,318.6 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 | 3 Months Ended |
Jun. 29, 2019 | |
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 $3.1 billion at June 2019 , $2.8 billion at March 2019 and $2.9 billion at June 2018 , consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Mexican peso, Swiss franc, Swedish krona, South Korean won, New Zealand dollar, Polish zloty and Japanese yen. Derivative contracts have maturities up to 20 months . The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses (In thousands) June 2019 March 2019 June 2018 June 2019 March 2019 June 2018 Foreign currency exchange contracts designated as hedging instruments $ 67,979 $ 92,356 $ 53,417 $ (9,359 ) $ (21,798 ) $ (33,984 ) Foreign currency exchange contracts not designated as hedging instruments 12,372 415 — (2,015 ) (539 ) (205 ) Total derivatives $ 80,351 $ 92,771 $ 53,417 $ (11,374 ) $ (22,337 ) $ (34,189 ) 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: June 2019 March 2019 June 2018 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 80,351 $ (11,374 ) $ 92,771 $ (22,337 ) $ 53,417 $ (34,189 ) Gross amounts not offset in the Consolidated Balance Sheets (11,301 ) 11,301 (22,274 ) 22,274 (30,304 ) 30,304 Net amounts $ 69,050 $ (73 ) $ 70,497 $ (63 ) $ 23,113 $ (3,885 ) Derivatives are classified as current or non-current based on maturity dates, as follows: (In thousands) June 2019 March 2019 June 2018 Other current assets $ 72,132 $ 83,582 $ 32,144 Accrued liabilities (8,143 ) (18,590 ) (32,508 ) Other assets 8,219 9,189 21,273 Other liabilities (3,231 ) (3,747 ) (1,681 ) 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 Income and Consolidated Statements of Comprehensive Income are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended June Cash Flow Hedging Relationships 2019 2018 Foreign currency exchange $ 14,774 $ 94,629 (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June Location of Gain (Loss) 2019 2018 Net sales $ (2,905 ) $ 945 Cost of goods sold 11,105 (11,938 ) Selling, general and administrative expenses 716 (2,698 ) Other income (expense), net 2,872 (1,393 ) Interest expense (1,293 ) (1,233 ) Total $ 10,495 $ (16,317 ) 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. Foreign currency exchange contracts not designated as hedges as of June 2019 also include contracts still owned by VF that are related to the former Jeans business. In connection with the spin-off, VF transferred the value of the unrecognized gain on these contracts to Kontoor Brands. The changes in fair value of derivative contracts not designated as hedges that have been recognized as gains or losses in VF's Consolidated Statements of Income were not material for the three months ended June 2019 and June 2018. Other Derivative Information At June 2019 , accumulated OCI included $66.5 million of pre-tax net deferred gains 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. VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033 , respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in accumulated OCI. The remaining pre-tax net deferred loss in accumulated OCI was $10.4 million at June 2019 , which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. VF reclassified $1.3 million and $1.2 million of net deferred losses from accumulated OCI into interest expense for the three -month periods ended June 2019 and June 2018 , respectively. VF expects to reclassify $5.3 million to interest expense during the next 12 months . Net Investment Hedge The Company has designated its €850.0 million of euro-denominated fixed-rate notes 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 -month periods ended June 2019 and June 2018 , the Company recognized an after-tax loss of $8.7 million and an after-tax gain of $41.0 million , respectively. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING The Company typically incurs restructuring charges related to strategic initiatives and cost optimization of business activities, primarily related to severance and employee-related benefits. During the three months ended June 2019 , VF leadership approved $4.8 million of restructuring charges, of which $3.4 million was recognized in selling, general and administrative expenses and $1.4 million in cost of goods sold. The Company has not recognized significant incremental costs related to the actions for the year ended March 2019 or prior periods . Of the $57.9 million total restructuring accrual at June 2019 , $55.3 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $2.6 million will be paid out beyond the next 12 months and thus is classified within other liabilities. The activity in the restructuring accrual for the three -month period ended June 2019 was as follows: (In thousands) Severance Other Total Accrual at March 2019 $ 58,106 $ 11,035 $ 69,141 Charges 2,224 2,564 4,788 Cash payments (8,887 ) (8,335 ) (17,222 ) Adjustments to accruals 1,303 — 1,303 Currency translation 11 (97 ) (86 ) Accrual at June 2019 $ 52,757 $ 5,167 $ 57,924 Restructuring charges were incurred as follows: (In thousands) Three Months Ended June 2019 Three Months Ended June 2018 Outdoor $ 4,215 $ 2,898 Active 20 2,559 Work 553 2,828 Corporate and other — 1,506 Total $ 4,788 $ 9,791 |
CONTINCENCIES
CONTINCENCIES | 3 Months Ended |
Jun. 29, 2019 | |
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 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 $137 million . Further, this timing matter is impacted by the Tax 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 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 | 3 Months Ended |
Jun. 29, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On July 15, 2019 , VF’s Board of Directors declared a quarterly cash dividend of $0.43 per share, payable on September 20, 2019 to stockholders of record on September 10, 2019 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jun. 29, 2019 | |
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 March 31, 2019 through March 28, 2020 ("Fiscal 2020"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2020 . For presentation purposes herein, all references to periods ended June 2019 and June 2018 relate to the fiscal periods ended on June 29, 2019 and June 30, 2018 , respectively. References to March 2019 relate to information as of March 30, 2019 . On May 22, 2019, VF completed the spin-off of its Jeans business, which included the Wrangler ® , Lee ® and Rock & Republic ® brands, as well as the VF Outlet TM business, into an independent, publicly traded company. As a result, VF reported the operating results for the Jeans business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date the spin-off was completed. Additionally, the Nautica ® brand business has been reported as discontinued operations in our Consolidated Statements of Income, and the related held-for-sale assets and liabilities have been presented 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 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 2020 presentation. The accompanying unaudited condensed 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 2019 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed 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 months ended June 2019 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2020 . 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 March 30, 2019 (“Fiscal 2019 Form 10-K”). |
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. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, “Leases (Topic 842)” , a new accounting standard on leasing. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Collectively, the guidance is referred to as FASB Accounting Standards Codification ("ASC") 842. This standard requires companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The Company adopted this standard on March 31, 2019, utilizing the modified retrospective method and has recognized the cumulative effect of initially applying the new standard in retained earnings. The effective date of the adoption has been used as the date of initial application, and thus comparative prior period financial information has not been restated and continues to be reported under accounting standards in effect for those periods. The standard provides certain optional practical expedients for transition. The Company elected the transition relief package of practical expedients by applying previous accounting conclusions under ASC Topic 840, Leases ("ASC 840"), to all leases that existed prior to the transition date. As a result, VF did not reassess (i) whether existing or expired contracts contain leases, (ii) lease classification for any existing or expired leases, or (iii) whether lease origination costs qualified as initial direct costs. The Company also elected the land easement practical expedient, which allows the Company to apply ASC 842 prospectively to land easements after the adoption date if they were not previously accounted for under ASC 840. Certain leases contain both lease and non-lease components. For leases associated with specific asset classes, including certain real estate, vehicles, manufacturing machinery and IT equipment, VF has elected the practical expedient which permits entities to account for separate lease and non-lease components as a single component. For all other lease contracts, the Company has elected to account for each lease component separately from the non-lease components of the contract. When applicable, VF will measure the consideration to be paid pursuant to the agreement and allocate this consideration to the lease and non-lease components based on relative stand-alone prices. Further, the Company made an accounting policy election to not recognize right-of-use assets and lease liabilities for leases with terms of 12 months or less. The adoption of ASC 842 resulted in a net decrease of $2.5 million in the retained earnings line item of the Consolidated Balance Sheet as of March 31, 2019. The adoption of ASC 842 also resulted in the recognition of operating lease right-of-use assets and operating lease liabilities within the Consolidated Balance Sheet. Refer to Note 10 for additional lease disclosures. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" , an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. The FASB subsequently issued updates to the standard to provide additional guidance on specific topics. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02 , "Income Statement-Reporting Comprehensive Income (Topic 220) : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", an update that addresses the effect of the change in the U.S. federal corporate income tax rate due to the enactment of the Tax Cuts and Jobs Act ("Tax Act") on items within accumulated other comprehensive income (loss). The guidance became effective for VF in the first quarter of Fiscal 2020. The Company elected to reclassify the income tax effects of the Tax Act on items within accumulated other comprehensive income (loss) of $61.9 million to retained earnings, which primarily related to deferred taxes previously recorded for pension benefits. The adoption of this guidance did not have an impact on VF's consolidated results of operations or cash flows. In June 2018, the FASB issued ASU No. 2018-07, " Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" , an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, "Codification Improvements" , an update that provides technical corrections, clarifications and other improvements across a variety of accounting topics. The transition and effective date guidance is based on the facts and circumstances of each update; however, many of them became effective for VF in the first quarter of Fiscal 2020. The guidance did not impact VF's consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for VF in the first quarter of the year ended April 3, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement" , an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation— Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans" , an update that modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" , an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides information about accounts receivable, contract assets and contract liabilities: (In thousands) June 2019 March 2019 June 2018 Accounts receivable, net $ 1,306,270 $ 1,465,855 $ 1,222,938 Contract assets (a) 1,576 2,569 1,543 Contract liabilities (b) 44,364 30,181 27,105 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities and other liabilities line items 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. The wholesale channel includes fees generated from sourcing activities as the customers and point-in-time revenue recognition are similar to other wholesale arrangements. Three Months Ended June 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 341,756 $ 660,142 $ 377,548 $ 2,808 $ 1,382,254 Direct-to-consumer 266,342 565,887 40,852 3,454 876,535 Royalty 2,522 6,097 4,071 — 12,690 Total $ 610,620 $ 1,232,126 $ 422,471 $ 6,262 $ 2,271,479 Geographic revenues United States $ 303,052 $ 711,205 $ 346,160 $ — $ 1,360,417 International 307,568 520,921 76,311 6,262 911,062 Total $ 610,620 $ 1,232,126 $ 422,471 $ 6,262 $ 2,271,479 Three Months Ended June 2018 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 309,776 $ 654,848 $ 381,364 $ 8,305 $ 1,354,293 Direct-to-consumer 255,964 475,536 36,838 — 768,338 Royalty 2,860 6,553 5,091 — 14,504 Total $ 568,600 $ 1,136,937 $ 423,293 $ 8,305 $ 2,137,135 Geographic revenues United States $ 262,856 $ 644,105 $ 331,099 $ 8,305 $ 1,246,365 International 305,744 492,832 92,194 — 890,770 Total $ 568,600 $ 1,136,937 $ 423,293 $ 8,305 $ 2,137,135 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
Assets and Liabilities Acquired | The following table summarizes the estimated fair values of the Altra assets acquired and liabilities assumed at the date of acquisition: (In thousands) June 1, 2018 Accounts receivable $ 11,629 Inventories 9,310 Other current assets 575 Property, plant and equipment 1,107 Intangible assets 59,700 Total assets acquired 82,321 Accounts payable 5,068 Other current liabilities 7,415 Total liabilities assumed 12,483 Net assets acquired 69,838 Goodwill 61,719 Purchase price $ 131,557 The following table summarizes the estimated fair values of the Icebreaker assets acquired and liabilities assumed at the date of acquisition: (In thousands) April 3, 2018 Cash and equivalents $ 6,444 Accounts receivable 16,781 Inventories 31,728 Other current assets 3,931 Property, plant and equipment 3,858 Intangible assets 98,041 Other assets 4,758 Total assets acquired 165,541 Short-term borrowings 7,235 Accounts payable 2,075 Other current liabilities 21,262 Deferred income tax liabilities 26,870 Other noncurrent liabilities 433 Total liabilities assumed 57,875 Net assets acquired 107,666 Goodwill 89,943 Purchase price $ 197,609 |
DISCONTINUED OPERATIONS AND O_2
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table presents information regarding certain components of cash flows from discontinued operations: Three Months Ended June (In thousands) 2019 2018 Cash provided by operating activities $ 13,212 $ 177,807 Cash used by investing activities (2,327 ) (17,483 ) Non-cash items: Depreciation and amortization $ 4,829 $ 18,234 Capital expenditures 2,651 6,435 The following table summarizes the major line items for the Jeans business and Nautica ® brand business that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income: Three Months Ended June (In thousands) 2019 2018 Net revenues $ 335,203 $ 672,924 Cost of goods sold 203,124 394,394 Selling, general and administrative expenses 152,798 165,931 Interest, net (552 ) 969 Other income (expense), net (667 ) (969 ) Income (loss) from discontinued operations before income taxes (21,938 ) 112,599 Gain on the sale of discontinued operations before income taxes — 4,206 Total income (loss) from discontinued operations before income taxes (21,938 ) 116,805 Income tax expense (a) (26,090 ) (17,811 ) Income (loss) from discontinued operations, net of tax $ (48,028 ) $ 98,994 (a) Income tax expense for the three months ended June 2019 includes additional tax expense on nondeductible transaction costs and uncertain tax positions. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented: (In thousands) June 2019 March 2019 June 2018 Cash and equivalents $ — $ 97,892 $ 75,742 Accounts receivable, net — 242,941 205,596 Inventories — 510,370 472,166 Other current assets — 44,827 38,356 Property, plant and equipment, net — 142,091 142,826 Intangible assets — 51,913 55,263 Goodwill — 213,570 221,176 Other assets — 74,144 68,392 Total assets of discontinued operations $ — $ 1,377,748 $ 1,279,517 Short-term borrowings $ — $ 5,995 $ 5,062 Accounts payable — 113,866 109,638 Accrued liabilities — 141,621 132,380 Other liabilities — 48,581 47,774 Total liabilities of discontinued operations $ — $ 310,063 $ 294,854 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) June 2019 March 2019 June 2018 Finished products $ 1,511,217 $ 1,284,293 $ 1,373,591 Work-in-process 77,921 73,968 75,871 Raw materials 75,994 74,399 72,197 Total inventories $ 1,665,132 $ 1,432,660 $ 1,521,659 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | June 2019 March 2019 (In thousands) Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 17 years Accelerated $ 332,746 $ 141,015 $ 191,731 $ 197,129 License agreements 19 years Accelerated 7,616 4,835 2,781 2,807 Trademark 3 years Straight-line 800 458 342 399 Other 8 years Straight-line 8,264 4,443 3,821 4,032 Amortizable intangible assets, net 198,675 204,367 Indefinite-lived intangible assets: Trademarks and trade names 1,782,246 1,767,997 Intangible assets, net $ 1,980,921 $ 1,972,364 |
Indefinite Lived Intangible Assets | June 2019 March 2019 (In thousands) Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 17 years Accelerated $ 332,746 $ 141,015 $ 191,731 $ 197,129 License agreements 19 years Accelerated 7,616 4,835 2,781 2,807 Trademark 3 years Straight-line 800 458 342 399 Other 8 years Straight-line 8,264 4,443 3,821 4,032 Amortizable intangible assets, net 198,675 204,367 Indefinite-lived intangible assets: Trademarks and trade names 1,782,246 1,767,997 Intangible assets, net $ 1,980,921 $ 1,972,364 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
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 2019 $ 983,889 $ 393,956 $ 163,469 $ 1,541,314 Currency translation 349 2,675 (206 ) 2,818 Balance, June 2019 $ 984,238 $ 396,631 $ 163,263 $ 1,544,132 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Assets And Liabilities | he assets and liabilities related to operating and finance leases were as follows: (In thousands) Location in Consolidated Balance Sheet June 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 1,281,106 Finance lease assets Property, plant and equipment 24,437 Total lease assets $ 1,305,543 Liabilities: Current Operating lease liabilities Accrued liabilities $ 326,874 Finance lease liabilities Current portion of long-term debt 5,068 Noncurrent Operating lease liabilities Operating lease liabilities 1,043,664 Finance lease liabilities Long-term debt 27,586 Total lease liabilities $ 1,403,192 |
Components of Lease Expense | The components of lease costs were as follows: (In thousands) Three Months Ended June 2019 Operating lease cost (a) $ 101,459 Finance lease cost – amortization of right-of-use asset 969 Finance lease cost – interest on lease liability 284 Short-term lease cost 569 Variable lease cost 1,690 Gain recognized from sale-leaseback transactions (11,329 ) Total lease cost $ 93,642 (a) Includes sublease income, which is not material. Supplemental cash flow information related to leases was as follows: (In thousands) Three Months Ended June 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 104,539 Operating cash flows – finance leases 284 Financing cash flows – finance leases 1,223 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases (a) 1,374,872 Finance leases — (a) Includes amounts recorded upon adoption of ASC 842. Lease terms and discount rates were as follows: June 2019 Weighted average remaining lease term: Operating leases 5.58 years Finance leases 13.41 years Weighted average discount rate: Operating leases 2.50 % Finance leases 3.22 % |
Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of June 2019 were as follows: (In thousands) Operating Leases Finance Leases Total Remainder of 2020 $ 269,262 $ 4,522 $ 273,784 2021 366,243 6,532 372,775 2022 254,351 1,911 256,262 2023 186,670 1,626 188,296 2024 118,016 1,550 119,566 Thereafter 281,021 23,495 304,516 Total lease payments 1,475,563 39,636 1,515,199 Less: present value adjustment 105,025 6,982 112,007 Present value of lease liabilities $ 1,370,538 $ 32,654 $ 1,403,192 The Company excluded approximately $286.5 million of leases (undiscounted basis) that have not yet commenced. These leases will commence in Fiscal 2020 with lease terms of 2 to 15 years. |
Maturities of Financing Lease Liabilities | Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of June 2019 were as follows: (In thousands) Operating Leases Finance Leases Total Remainder of 2020 $ 269,262 $ 4,522 $ 273,784 2021 366,243 6,532 372,775 2022 254,351 1,911 256,262 2023 186,670 1,626 188,296 2024 118,016 1,550 119,566 Thereafter 281,021 23,495 304,516 Total lease payments 1,475,563 39,636 1,515,199 Less: present value adjustment 105,025 6,982 112,007 Present value of lease liabilities $ 1,370,538 $ 32,654 $ 1,403,192 |
Schedule of Future Minimum, Operating Leases | Future minimum lease payments under operating leases with noncancelable lease terms in excess of one year from continuing operations as of March 2019, prior to the adoption of ASC 842, were as follows: (In thousands) Operating Leases 2020 $ 320,224 2021 287,829 2022 212,918 2023 154,920 2024 100,789 Thereafter 251,228 Total lease payments $ 1,327,908 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
Components of Pension Cost | The components of pension (income) cost for VF’s defined benefit plans were as follows: Three Months Ended June (In thousands) 2019 2018 Service cost – benefits earned during the period $ 3,381 $ 6,224 Interest cost on projected benefit obligations 14,761 16,013 Expected return on plan assets (23,178 ) (23,834 ) Settlement charges — 6,842 Curtailments — 9,483 Amortization of deferred amounts: Net deferred actuarial losses 4,019 8,822 Deferred prior service costs 13 669 Net periodic pension (income) cost $ (1,004 ) $ 24,219 The amounts reported in these disclosures for prior periods have not been segregated between continuing and discontinued operations. |
CAPITAL AND ACCUMULATED OTHER_2
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Shares Held for Deferred Compensation Plans | Balances related to shares held for deferred compensation plans were as follows: (In thousands, except share amounts) June 2019 March 2019 June 2018 Shares held for deferred compensation plans — — 210,124 Cost of shares held for deferred compensation plans $ — $ — $ 2,663 |
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) June 2019 March 2019 June 2018 Foreign currency translation and other $ (635,901 ) $ (725,679 ) $ (651,739 ) Defined benefit pension plans (290,468 ) (243,184 ) (230,517 ) Derivative financial instruments 58,983 66,788 178 Accumulated other comprehensive income (loss) $ (867,386 ) $ (902,075 ) $ (882,078 ) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended June 2019 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2019 $ (725,679 ) $ (243,184 ) $ 66,788 $ (902,075 ) Adoption of new accounting standard, ASU 2018-02 (9,088 ) (50,402 ) (2,371 ) (61,861 ) Other comprehensive income (loss) before reclassifications 15,772 (823 ) 10,900 25,849 Amounts reclassified from accumulated other comprehensive income (loss) — 3,147 (7,739 ) (4,592 ) Spin-off of Jeans Business 83,094 794 (8,595 ) 75,293 Net other comprehensive income (loss) 89,778 (47,284 ) (7,805 ) 34,689 Balance, June 2019 $ (635,901 ) $ (290,468 ) $ 58,983 $ (867,386 ) Three Months Ended June 2018 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2018 $ (476,869 ) $ (289,618 ) $ (97,543 ) $ (864,030 ) Other comprehensive income (loss) before reclassifications (174,870 ) 40,228 83,271 (51,371 ) Amounts reclassified from accumulated other comprehensive income (loss) — 18,873 14,450 33,323 Net other comprehensive income (loss) (174,870 ) 59,101 97,721 (18,048 ) Balance, June 2018 $ (651,739 ) $ (230,517 ) $ 178 $ (882,078 ) |
Reclassifications Out of Accumulated OCI | Reclassifications out of accumulated OCI were as follows: (In thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income Three Months Ended June 2019 2018 Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net $ (4,019 ) $ (8,822 ) Deferred prior service costs Other income (expense), net (13 ) (669 ) Pension curtailment losses and settlement charges Other income (expense), net — (16,325 ) Total before tax (4,032 ) (25,816 ) Tax benefit 885 6,943 Net of tax (3,147 ) (18,873 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales (2,905 ) 945 Foreign exchange contracts Cost of goods sold 11,105 (11,938 ) Foreign exchange contracts Selling, general and administrative expenses 716 (2,698 ) Foreign exchange contracts Other income (expense), net 2,872 (1,393 ) Interest rate contracts Interest expense (1,293 ) (1,233 ) Total before tax 10,495 (16,317 ) Tax (expense) benefit (2,756 ) 1,867 Net of tax 7,739 (14,450 ) Total reclassifications for the period, net of tax $ 4,592 $ (33,323 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
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: Three Months Ended June 2019 Expected volatility 24% to 27% Weighted average expected volatility 25% Expected term (in years) 6.2 to 7.6 Weighted average dividend yield 2.5% Risk-free interest rate 2.1% to 2.4% Weighted average fair value at date of grant $17.20 |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF's reportable segments was as follows: Three Months Ended June (In thousands) 2019 2018 Segment revenues: Outdoor $ 610,620 $ 568,600 Active 1,232,126 1,136,937 Work 422,471 423,293 Other 6,262 8,305 Total segment revenues $ 2,271,479 $ 2,137,135 Segment profit (loss): Outdoor $ (80,270 ) $ (83,495 ) Active 307,566 269,197 Work 47,025 48,927 Other (1,616 ) 2,233 Total segment profit 272,705 236,862 Corporate and other expenses (a) (133,815 ) (143,188 ) Interest expense, net (14,998 ) (24,853 ) Income from continuing operations before income taxes $ 123,892 $ 68,821 (a) Certain corporate overhead and other costs of $24.6 million for the three -month period ended June 2018 , previously allocated to the former Jeans segment and Other category for segment reporting purposes, have been reallocated to continuing operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended June (In thousands, except per share amounts) 2019 2018 Earnings per share – basic: Income from continuing operations $ 97,249 $ 61,364 Weighted average common shares outstanding 396,727 394,165 Earnings per share from continuing operations $ 0.25 $ 0.16 Earnings per share – diluted: Income from continuing operations $ 97,249 $ 61,364 Weighted average common shares outstanding 396,727 394,165 Incremental shares from stock options and other dilutive securities 5,187 5,383 Adjusted weighted average common shares outstanding 401,914 399,548 Earnings per share from continuing operations $ 0.24 $ 0.15 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
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 June 2019 Financial assets: Cash equivalents: Money market funds $ 344,357 $ 344,357 $ — $ — Time deposits 3,726 3,726 — — Derivative financial instruments 80,351 — 80,351 — Investment securities 131,989 124,627 7,362 — Financial liabilities: Derivative financial instruments 11,374 — 11,374 — Deferred compensation 144,131 — 144,131 — Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2019 Financial assets: Cash equivalents: Money market funds $ 248,560 $ 248,560 $ — $ — Time deposits 8,257 8,257 — — Derivative financial instruments 92,771 — 92,771 — Investment securities 186,698 176,209 10,489 — Financial liabilities: Derivative financial instruments 22,337 — 22,337 — Deferred compensation 199,336 — 199,336 — The amounts reported in the table above for prior periods have not been segregated between continuing and discontinued operations. The March 2019 balances include $50.8 million of deferred compensation liabilities and associated assets related to the Jeans business, which were transferred in connection with the spin-off. (a) There were no transfers among the levels within the fair value hierarchy during the three months ended June 2019 or the year ended March 2019 . |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
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 with Unrealized Gains Fair Value of Derivatives with Unrealized Losses (In thousands) June 2019 March 2019 June 2018 June 2019 March 2019 June 2018 Foreign currency exchange contracts designated as hedging instruments $ 67,979 $ 92,356 $ 53,417 $ (9,359 ) $ (21,798 ) $ (33,984 ) Foreign currency exchange contracts not designated as hedging instruments 12,372 415 — (2,015 ) (539 ) (205 ) Total derivatives $ 80,351 $ 92,771 $ 53,417 $ (11,374 ) $ (22,337 ) $ (34,189 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | 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: June 2019 March 2019 June 2018 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 80,351 $ (11,374 ) $ 92,771 $ (22,337 ) $ 53,417 $ (34,189 ) Gross amounts not offset in the Consolidated Balance Sheets (11,301 ) 11,301 (22,274 ) 22,274 (30,304 ) 30,304 Net amounts $ 69,050 $ (73 ) $ 70,497 $ (63 ) $ 23,113 $ (3,885 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | 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: June 2019 March 2019 June 2018 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 80,351 $ (11,374 ) $ 92,771 $ (22,337 ) $ 53,417 $ (34,189 ) Gross amounts not offset in the Consolidated Balance Sheets (11,301 ) 11,301 (22,274 ) 22,274 (30,304 ) 30,304 Net amounts $ 69,050 $ (73 ) $ 70,497 $ (63 ) $ 23,113 $ (3,885 ) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or non-current based on maturity dates, as follows: (In thousands) June 2019 March 2019 June 2018 Other current assets $ 72,132 $ 83,582 $ 32,144 Accrued liabilities (8,143 ) (18,590 ) (32,508 ) Other assets 8,219 9,189 21,273 Other liabilities (3,231 ) (3,747 ) (1,681 ) |
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 Income and Consolidated Statements of Comprehensive Income are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended June Cash Flow Hedging Relationships 2019 2018 Foreign currency exchange $ 14,774 $ 94,629 (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June Location of Gain (Loss) 2019 2018 Net sales $ (2,905 ) $ 945 Cost of goods sold 11,105 (11,938 ) Selling, general and administrative expenses 716 (2,698 ) Other income (expense), net 2,872 (1,393 ) Interest expense (1,293 ) (1,233 ) Total $ 10,495 $ (16,317 ) |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Activity in Restructuring | The activity in the restructuring accrual for the three -month period ended June 2019 was as follows: (In thousands) Severance Other Total Accrual at March 2019 $ 58,106 $ 11,035 $ 69,141 Charges 2,224 2,564 4,788 Cash payments (8,887 ) (8,335 ) (17,222 ) Adjustments to accruals 1,303 — 1,303 Currency translation 11 (97 ) (86 ) Accrual at June 2019 $ 52,757 $ 5,167 $ 57,924 Restructuring charges were incurred as follows: (In thousands) Three Months Ended June 2019 Three Months Ended June 2018 Outdoor $ 4,215 $ 2,898 Active 20 2,559 Work 553 2,828 Corporate and other — 1,506 Total $ 4,788 $ 9,791 |
RECENTLY ADOPTED AND ISSUED A_2
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 |
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | $ (1,956) | |
Adoption of new accounting standard, ASU 2016-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | $ 2,491 | |
Adoption of new accounting standard, ASU 2018-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | 0 | |
Accumulated Other Comprehensive Income (Loss) | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | 61,861 | 0 |
Accumulated Other Comprehensive Income (Loss) | Adoption of new accounting standard, ASU 2016-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | 0 | |
Accumulated Other Comprehensive Income (Loss) | Adoption of new accounting standard, ASU 2018-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | 61,861 | |
Retained Earnings | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | $ (1,956) | |
Retained Earnings | Adoption of new accounting standard, ASU 2016-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | 2,491 | |
Retained Earnings | Adoption of new accounting standard, ASU 2018-02 | ||
Prior Period Adjustments Restatement [Line Items] | ||
Adoption of new accounting standard | $ (61,861) |
REVENUES - Contract Assets and
REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 1,306,270 | $ 1,465,855 | $ 1,222,938 |
Contract assets | 1,576 | 2,569 | 1,543 |
Contract liabilities | $ 44,364 | $ 30,181 | $ 27,105 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with customer, liability, revenue recognized | $ 24.7 |
REVENUES - Additional informa_2
REVENUES - Additional information, Remaning Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 $ in Millions | Jun. 29, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 85 |
Remaining performance obligation, expected timing of satisfaction | 5 years 6 months |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 2,271,479 | $ 2,137,135 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 1,360,417 | 1,246,365 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 911,062 | 890,770 |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 1,382,254 | 1,354,293 |
Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 876,535 | 768,338 |
Royalty | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 12,690 | 14,504 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,271,479 | 2,137,135 |
Operating Segments | Outdoor | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 610,620 | 568,600 |
Operating Segments | Outdoor | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 303,052 | 262,856 |
Operating Segments | Outdoor | International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 307,568 | 305,744 |
Operating Segments | Outdoor | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 341,756 | 309,776 |
Operating Segments | Outdoor | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 266,342 | 255,964 |
Operating Segments | Outdoor | Royalty | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,522 | 2,860 |
Operating Segments | Active | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 1,232,126 | 1,136,937 |
Operating Segments | Active | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 711,205 | 644,105 |
Operating Segments | Active | International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 520,921 | 492,832 |
Operating Segments | Active | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 660,142 | 654,848 |
Operating Segments | Active | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 565,887 | 475,536 |
Operating Segments | Active | Royalty | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 6,097 | 6,553 |
Operating Segments | Work | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 422,471 | 423,293 |
Operating Segments | Work | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 346,160 | 331,099 |
Operating Segments | Work | International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 76,311 | 92,194 |
Operating Segments | Work | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 377,548 | 381,364 |
Operating Segments | Work | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 40,852 | 36,838 |
Operating Segments | Work | Royalty | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 4,071 | 5,091 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 6,262 | 8,305 |
Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 0 | 8,305 |
Other | International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 6,262 | 0 |
Other | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,808 | 8,305 |
Other | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 3,454 | 0 |
Other | Royalty | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 0 | $ 0 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) $ in Thousands, $ in Millions | Jun. 01, 2018USD ($) | Apr. 03, 2018USD ($) | Apr. 03, 2018NZD ($) | Jun. 29, 2019 | Dec. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 30, 2019USD ($) | Mar. 30, 2019NZD ($) |
Icebreaker Holdings, Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage acquired | 100.00% | |||||||
Payments to acquire businesses | $ 198,500 | $ 274.4 | ||||||
Adjustment, consideration transferred | $ 900 | $ 1.4 | ||||||
Purchase price | 197,609 | 197,600 | 273 | |||||
Business acquisition, transaction costs recognized during period | 7,400 | $ 4,100 | ||||||
Gain on derivative | 9,900 | 300 | ||||||
Altra | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage acquired | 100.00% | |||||||
Payments to acquire businesses | $ 131,700 | |||||||
Adjustment, consideration transferred | $ 100 | |||||||
Purchase price | 131,557 | $ 131.6 | ||||||
Purchase accounting adjustment, goodwill | $ 1,500 | |||||||
Trademark | Icebreaker Holdings, Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 70,100 | |||||||
Trademark | Altra | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 46,400 | |||||||
Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets, useful life | 17 years | |||||||
Customer relationships | Icebreaker Holdings, Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 27,800 | |||||||
Intangible assets, useful life | 11 years 6 months | 11 years 6 months | ||||||
Customer relationships | Altra | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 13,000 | |||||||
Intangible assets, useful life | 15 years | |||||||
Distribution Rights | Icebreaker Holdings, Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 200 | |||||||
Intangible assets, useful life | 4 years | 4 years | ||||||
Distribution Rights | Altra | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 300 | |||||||
Intangible assets, useful life | 4 years | |||||||
Trademark | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets, useful life | 3 years | |||||||
Selling, general and administrative expenses | Altra | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, transaction costs recognized during period | $ 2,300 |
ACQUISITIONS - Purchase Price (
ACQUISITIONS - Purchase Price (Details) $ in Thousands, $ in Millions | Jun. 01, 2018USD ($) | Apr. 03, 2018USD ($) | Mar. 30, 2019USD ($) | Mar. 30, 2019NZD ($) | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,541,314 | $ 1,544,132 | $ 1,594,986 | |||
Icebreaker Holdings, Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Cash and equivalents | $ 6,444 | |||||
Accounts receivable | 16,781 | |||||
Inventories | 31,728 | |||||
Other current assets | 3,931 | |||||
Property, plant and equipment | 3,858 | |||||
Intangible assets | 98,041 | |||||
Other assets | 4,758 | |||||
Total assets acquired | 165,541 | |||||
Short-term borrowings | 7,235 | |||||
Accounts payable | 2,075 | |||||
Other current liabilities | 21,262 | |||||
Deferred income tax liabilities | 26,870 | |||||
Other noncurrent liabilities | 433 | |||||
Total liabilities assumed | 57,875 | |||||
Net assets acquired | 107,666 | |||||
Goodwill | 89,943 | |||||
Purchase price | $ 197,609 | $ 197,600 | $ 273 | |||
Altra | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 11,629 | |||||
Inventories | 9,310 | |||||
Other current assets | 575 | |||||
Property, plant and equipment | 1,107 | |||||
Intangible assets | 59,700 | |||||
Total assets acquired | 82,321 | |||||
Accounts payable | 5,068 | |||||
Other current liabilities | 7,415 | |||||
Total liabilities assumed | 12,483 | |||||
Net assets acquired | 69,838 | |||||
Goodwill | 61,719 | |||||
Purchase price | $ 131,557 | $ 131.6 |
DISCONTINUED OPERATIONS AND O_3
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Additional Information (Details) € in Millions | May 22, 2019USD ($) | Oct. 26, 2018USD ($) | Oct. 05, 2018USD ($) | Oct. 05, 2018EUR (€) | Apr. 30, 2018USD ($) | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 30, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Spinoff transaction conversion ratio | 0.1428571429 | |||||||
Cash transferred | $ 126,800,000 | |||||||
Spin-off of Jeans Business | (54,915,000) | |||||||
Income (loss) from discontinued operations, net of tax | (48,028,000) | $ 98,994,000 | ||||||
Restructuring expense | 4,788,000 | |||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Credit facility amount outstanding | $ 500,000,000 | |||||||
Debt instrument, term | 5 years | |||||||
Long-term line of credit | $ 1,050,000,000 | |||||||
Cash received from Kontoor Brands, net of cash transferred of $126.8 million | 906,100,000 | |||||||
Cash transferred | 126,800,000 | |||||||
Spin-off of Jeans Business | 54,900,000 | |||||||
Restructuring expense | 59,500,000 | |||||||
Discontinued Operations, Disposed of by Sale | Nautica | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | $ 285,800,000 | |||||||
After-tax loss on sale | $ (38,200,000) | |||||||
Decrease in income (loss) from discontinued operation during phase-out period | 5,000,000 | |||||||
Discontinued Operations | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (loss) from discontinued operations, net of tax | $ (48,028,000) | 98,600,000 | ||||||
Discontinued Operations | Nautica | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (loss) from discontinued operations, net of tax | $ 400,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Reef | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | $ 139,400,000 | |||||||
After-tax loss on sale | $ (14,400,000) | |||||||
Support services period (up to) | 21 months | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Van Moer | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | $ 8,100,000 | € 7 | ||||||
After-tax loss on sale | $ (22,400,000) | |||||||
Maximum | Discontinued Operations, Disposed of by Sale | Nautica | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Support services period (up to) | 12 months | |||||||
Credit Agreement | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Credit facility amount outstanding | 1,550,000,000 | |||||||
Term loan | Term Loan A Facility | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Credit facility amount outstanding | $ 750,000,000 | |||||||
Debt instrument, term | 5 years | |||||||
Term loan | Term Loan B Facility | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Credit facility amount outstanding | $ 300,000,000 | |||||||
Debt instrument, term | 7 years | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Spin-off of Jeans Business | $ 75,293,000 | |||||||
Accumulated Other Comprehensive Income (Loss) | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Kontoor Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Spin-off of Jeans Business | $ (75,300,000) |
DISCONTINUED OPERATIONS AND O_4
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Summary of Major Line Items included in Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of tax | $ (48,028) | $ 98,994 |
Kontoor Brands | Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 335,203 | |
Cost of goods sold | 203,124 | |
Selling, general and administrative expenses | 152,798 | |
Interest, net | (552) | |
Other income (expense), net | (667) | |
Income (loss) from discontinued operations before income taxes | (21,938) | |
Gain on the sale of discontinued operations before income taxes | 0 | |
Total income (loss) from discontinued operations before income taxes | (21,938) | |
Income tax expense (a) | (26,090) | |
Income (loss) from discontinued operations, net of tax | $ (48,028) | 98,600 |
Kontoor Brands and Nautica | Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 672,924 | |
Cost of goods sold | 394,394 | |
Selling, general and administrative expenses | 165,931 | |
Interest, net | 969 | |
Other income (expense), net | (969) | |
Income (loss) from discontinued operations before income taxes | 112,599 | |
Gain on the sale of discontinued operations before income taxes | 4,206 | |
Total income (loss) from discontinued operations before income taxes | 116,805 | |
Income tax expense (a) | (17,811) | |
Income (loss) from discontinued operations, net of tax | 98,994 | |
Nautica | Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of tax | $ 400 |
DISCONTINUED OPERATIONS AND O_5
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Summary of Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other assets | $ 0 | $ 481,718 | $ 487,657 |
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and equivalents | 0 | ||
Accounts receivable, net | 0 | ||
Inventories | 0 | ||
Other current assets | 0 | ||
Property, plant and equipment, net | 0 | ||
Intangible assets | 0 | ||
Goodwill | 0 | ||
Other assets | 0 | ||
Total assets of discontinued operations | 0 | ||
Short-term borrowings | 0 | ||
Accounts payable | 0 | ||
Accrued liabilities | 0 | ||
Other liabilities | 0 | ||
Total liabilities of discontinued operations | $ 0 | ||
Kontoor Brands | Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and equivalents | 97,892 | 75,742 | |
Accounts receivable, net | 242,941 | 205,596 | |
Inventories | 510,370 | 472,166 | |
Other current assets | 44,827 | 38,356 | |
Property, plant and equipment, net | 142,091 | 142,826 | |
Intangible assets | 51,913 | 55,263 | |
Goodwill | 213,570 | 221,176 | |
Other assets | 74,144 | 68,392 | |
Total assets of discontinued operations | 1,377,748 | 1,279,517 | |
Short-term borrowings | 5,995 | 5,062 | |
Accounts payable | 113,866 | 109,638 | |
Accrued liabilities | 141,621 | 132,380 | |
Other liabilities | 48,581 | 47,774 | |
Total liabilities of discontinued operations | $ 310,063 | $ 294,854 |
DISCONTINUED OPERATIONS AND O_6
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Summary of Cash Flows Line Items for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash provided by operating activities - discontinued operations | $ 13,212 | $ 177,807 |
Cash used by investing activities - discontinued operations | (2,327) | (17,483) |
Discontinued Operations | Kontoor Brands | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash provided by operating activities - discontinued operations | 13,212 | |
Cash used by investing activities - discontinued operations | (2,327) | |
Non-cash items: | ||
Depreciation and amortization | 4,829 | |
Capital expenditures | $ 2,651 | |
Discontinued Operations | Kontoor Brands and Nautica | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash provided by operating activities - discontinued operations | 177,807 | |
Cash used by investing activities - discontinued operations | (17,483) | |
Non-cash items: | ||
Depreciation and amortization | 18,234 | |
Capital expenditures | $ 6,435 |
SALE OF ACCOUNTS RECEIVABLE (De
SALE OF ACCOUNTS RECEIVABLE (Details) | Jun. 29, 2019USD ($) |
Receivables [Abstract] | |
Accounts receivable removed related to sale of accounts receivable | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 1,511,217 | $ 1,284,293 | $ 1,373,591 |
Work-in-process | 77,921 | 73,968 | 75,871 |
Raw materials | 75,994 | 74,399 | 72,197 |
Total inventories | $ 1,665,132 | $ 1,432,660 | $ 1,521,659 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | |
Amortizable intangible assets: | |||
Net Carrying Amount | $ 198,675 | $ 204,367 | |
Indefinite-lived intangible assets: | |||
Trademarks and trade names | 1,782,246 | 1,767,997 | |
Intangible assets, net | $ 1,980,921 | 1,972,364 | $ 2,129,013 |
Customer relationships | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 17 years | ||
Cost | $ 332,746 | ||
Accumulated Amortization | 141,015 | ||
Net Carrying Amount | $ 191,731 | 197,129 | |
License agreements | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 19 years | ||
Cost | $ 7,616 | ||
Accumulated Amortization | 4,835 | ||
Net Carrying Amount | $ 2,781 | 2,807 | |
Trademark | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 3 years | ||
Cost | $ 800 | ||
Accumulated Amortization | 458 | ||
Net Carrying Amount | $ 342 | 399 | |
Other | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 8 years | ||
Cost | $ 8,264 | ||
Accumulated Amortization | 4,443 | ||
Net Carrying Amount | $ 3,821 | $ 4,032 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Mar. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 6,300 | |
Estimated amortization expense, 2020 | 25,700 | |
Estimated amortization expense, 2021 | 24,300 | |
Estimated amortization expense, 2022 | 22,700 | |
Estimated amortization expense, 2023 | 21,300 | |
Estimated amortization expense, 2024 | 20,500 | |
Amortizable intangible assets | 198,675 | $ 204,367 |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets | $ 342 | $ 399 |
GOODWILL - Changes in Goodwill
GOODWILL - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,541,314 |
Currency translation | 2,818 |
Goodwill, ending balance | 1,544,132 |
Outdoor | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 983,889 |
Currency translation | 349 |
Goodwill, ending balance | 984,238 |
Active | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 393,956 |
Currency translation | 2,675 |
Goodwill, ending balance | 396,631 |
Work | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 163,469 |
Currency translation | (206) |
Goodwill, ending balance | $ 163,263 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment charge | $ 0 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Gain (loss) recognized from sale-leaseback transactions | $ 11,329 |
Lease not yet commenced, term | 15 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 3 years |
Lease not yet commenced, term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 15 years |
Lease not yet commenced, term | 15 years |
Equipment | Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 2 years |
Equipment | Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 5 years |
Vehicles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 1 year |
Vehicles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases | 8 years |
LEASES - Carrying Values of Lea
LEASES - Carrying Values of Leases (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Assets: | |||
Operating lease right-of-use assets | $ 1,281,106 | $ 0 | $ 0 |
Finance lease assets | 24,437 | ||
Total lease assets | 1,305,543 | ||
Current | |||
Operating lease liabilities | 326,874 | ||
Finance lease liabilities | 5,068 | ||
Noncurrent | |||
Operating lease liabilities | 1,043,664 | $ 0 | $ 0 |
Finance lease liabilities | 27,586 | ||
Total lease liabilities | $ 1,403,192 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 101,459 |
Finance lease cost – amortization of right-of-use asset | 969 |
Finance lease cost – interest on lease liability | 284 |
Short-term lease cost | 569 |
Variable lease cost | 1,690 |
Gain recognized from sale-leaseback transactions | (11,329) |
Total lease cost | $ 93,642 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands | Jun. 29, 2019USD ($) |
Operating Leases | |
Remainder of 2020 | $ 269,262 |
2021 | 366,243 |
2022 | 254,351 |
2023 | 186,670 |
2024 | 118,016 |
Thereafter | 281,021 |
Total lease payments | 1,475,563 |
Less: present value adjustment | 105,025 |
Present value of lease liabilities | 1,370,538 |
Finance Leases | |
Remainder of 2020 | 4,522 |
2021 | 6,532 |
2022 | 1,911 |
2023 | 1,626 |
2024 | 1,550 |
Thereafter | 23,495 |
Total lease payments | 39,636 |
Less: present value adjustment | 6,982 |
Present value of lease liabilities | 32,654 |
Total | |
Remainder of 2020 | 273,784 |
2021 | 372,775 |
2022 | 256,262 |
2023 | 188,296 |
2024 | 119,566 |
Thereafter | 304,516 |
Total lease payments | 1,515,199 |
Less: present value adjustment | 112,007 |
Total lease liabilities | 1,403,192 |
Lease not yet commenced | $ 286,500 |
Lease not yet commenced, term | 15 years |
Minimum | |
Total | |
Lease not yet commenced, term | 2 years |
Maximum | |
Total | |
Lease not yet commenced, term | 15 years |
LEASES - Cash Flow Information
LEASES - Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows – operating leases | $ 104,539 |
Operating cash flows – finance leases | 284 |
Financing cash flows – finance leases | 1,223 |
Right-of-use assets obtained in exchange for new lease liabilities: | |
Operating leases | 1,374,872 |
Finance leases | $ 0 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Jun. 29, 2019 |
Weighted average remaining lease term: | |
Operating leases | 5 years 6 months 29 days |
Finance leases | 13 years 4 months 28 days |
Weighted average discount rate: | |
Operating leases | 2.50% |
Finance leases | 3.22% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 320,224 |
2021 | 287,829 |
2022 | 212,918 |
2023 | 154,920 |
2024 | 100,789 |
Thereafter | 251,228 |
Total lease payments | $ 1,327,908 |
PENSION PLANS - Components of P
PENSION PLANS - Components of Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost – benefits earned during the period | $ 3,381 | $ 6,224 |
Interest cost on projected benefit obligations | 14,761 | 16,013 |
Expected return on plan assets | (23,178) | (23,834) |
Settlement charges | 0 | 6,842 |
Curtailments | 0 | 9,483 |
Amortization of deferred amounts: | ||
Net deferred actuarial losses | 4,019 | 8,822 |
Deferred prior service costs | 13 | 669 |
Net periodic pension (income) cost | $ (1,004) | $ 24,219 |
PENSION PLANS - Additional Info
PENSION PLANS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit pension plan contributed | $ 1,800 | |
Defined benefit pension plan additional contributions to make next fiscal year | 22,600 | |
Pension curtailment losses | 0 | $ 9,483 |
Settlement charges | $ 0 | $ 6,842 |
CAPITAL AND ACCUMULATED OTHER_3
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Details) - $ / shares | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Equity [Abstract] | |||
Treasury shares (in shares) | 0 | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Shares held for deferred compensation plans (in shares) | 0 | 0 | 210,124 |
CAPITAL AND ACCUMULATED OTHER_4
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Shares Held for Deferred Compensation Plans (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Equity [Abstract] | |||
Shares held for deferred compensation plans (in shares) | 0 | 0 | 210,124 |
Cost of shares held for deferred compensation plans | $ 0 | $ 0 | $ 2,663 |
CAPITAL AND ACCUMULATED OTHER_5
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 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | $ 4,151,614 | $ 4,298,516 | $ 3,731,116 | $ 3,688,096 |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | (635,901) | (725,679) | (651,739) | (476,869) |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | (290,468) | (243,184) | (230,517) | (289,618) |
Derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | 58,983 | |||
Derivative Financial Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | 58,983 | 66,788 | 178 | (97,543) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders’ equity | $ (867,386) | $ (902,075) | $ (882,078) | $ (864,030) |
CAPITAL AND ACCUMULATED OTHER_6
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated OCI, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Apr. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting standard | $ 1,956 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 4,298,516 | $ 3,688,096 | ||
Other comprehensive income (loss) before reclassifications | 25,849 | (51,371) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,592) | 33,323 | ||
Spin-off of Jeans Business | (54,915) | |||
Other comprehensive income (loss) | 21,257 | (18,048) | ||
Balance | 4,151,614 | 3,731,116 | ||
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting standard | $ (9,088) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (725,679) | (476,869) | ||
Other comprehensive income (loss) before reclassifications | 15,772 | (174,870) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Spin-off of Jeans Business | 83,094 | |||
Other comprehensive income (loss) | 89,778 | (174,870) | ||
Balance | (635,901) | (651,739) | ||
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting standard | (50,402) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (243,184) | (289,618) | ||
Other comprehensive income (loss) before reclassifications | (823) | 40,228 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 3,147 | 18,873 | ||
Spin-off of Jeans Business | 794 | |||
Other comprehensive income (loss) | (47,284) | 59,101 | ||
Balance | (290,468) | (230,517) | ||
Derivative Financial Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting standard | (2,371) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 66,788 | (97,543) | ||
Other comprehensive income (loss) before reclassifications | 10,900 | 83,271 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (7,739) | 14,450 | ||
Spin-off of Jeans Business | (8,595) | |||
Other comprehensive income (loss) | (7,805) | 97,721 | ||
Balance | 58,983 | 178 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting standard | $ (61,861) | $ 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (902,075) | (864,030) | ||
Spin-off of Jeans Business | 75,293 | |||
Other comprehensive income (loss) | 34,689 | |||
Balance | $ (867,386) | $ (882,078) |
CAPITAL AND ACCUMULATED OTHER_7
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification Out of Accumulated OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | $ 5,598 | $ (19,425) |
Net revenues | 2,271,479 | 2,137,135 |
Cost of goods sold | (1,036,114) | (1,005,289) |
Selling, general and administrative expenses | (1,102,073) | (1,018,747) |
Interest expense | (22,127) | (26,999) |
Total before tax | 123,892 | 68,821 |
Tax (expense) benefit | (26,643) | (7,457) |
Income from continuing operations | 97,249 | 61,364 |
Total reclassifications for the period, net of tax | 4,592 | (33,323) |
Defined Benefit Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | (3,147) | (18,873) |
Gains (losses) on derivative financial instruments: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 7,739 | (14,450) |
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 | (4,019) | (8,822) |
Reclassification out of Accumulated Other Comprehensive Income | Deferred prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | (13) | (669) |
Reclassification out of Accumulated Other Comprehensive Income | Pension curtailment losses and settlement charges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | 0 | (16,325) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | (4,032) | (25,816) |
Tax (expense) benefit | 885 | 6,943 |
Income from continuing operations | (3,147) | (18,873) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 10,495 | |
Tax (expense) benefit | (2,756) | |
Income from continuing operations | 7,739 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign currency exchange | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | 2,872 | |
Net revenues | (2,905) | |
Cost of goods sold | 11,105 | |
Selling, general and administrative expenses | 716 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (1,293) | |
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 | (16,317) | |
Tax (expense) benefit | 1,867 | |
Income from continuing operations | (14,450) | |
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 | (1,393) | |
Net revenues | 945 | |
Cost of goods sold | (11,938) | |
Selling, general and administrative expenses | (2,698) | |
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 | $ (1,233) |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jun. 29, 2019 | May 22, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted in period (in shares) | 1,452,414 | |
Exercise price of options granted (in USD per share) | $ 84.23 | |
Share based compensation vesting period | 3 years | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 3 years | |
Restricted stock units granted in period (in shares) | 268,449 | |
Performance period | 3 years | |
Grant date fair value of each restricted units granted (in USD per share) | $ 84.23 | |
Percentage of targets award adjusted to actual number of shares earned | 25.00% | |
Performance-Based Restricted Stock Units | Minimum | ||
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 | |
Performance-Based Restricted Stock Units | Maximum | ||
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 | |
TSR Adjustment Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value of each restricted units granted (in USD per share) | $ 7.11 | |
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) | 40,205 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 84.23 | |
Key Employees In International Jurisdictions | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted in period (in shares) | 7,500 | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 84.23 | |
Board of Directors | Nonperformance-Based Restricted Stock Units | ||
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) | 10,780 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 84.23 | |
Employees | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted in period (in shares) | 158,215,000 | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 84.23 | |
Tranche One | Key Employees In International Jurisdictions | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 2 years | |
Award vesting rights | 50.00% | |
Tranche One | Employees | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 2 years | |
Award vesting rights | 50.00% | |
Tranche Two | Key Employees In International Jurisdictions | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 4 years | |
Award vesting rights | 50.00% | |
Tranche Two | Employees | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 4 years | |
Award vesting rights | 50.00% | |
Spinoff | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cost not yet recognized | $ 13 | |
Share-based payment arrangement, expense | $ 12 | |
Options, outstanding (in shares) | 756,709 | |
Spinoff | Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, nonvested (in shares) | 52,018 | |
Spinoff | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, nonvested (in shares) | 79,187 | |
Spinoff | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, nonvested (in shares) | 112,763 |
STOCK-BASED COMPENSATION - Assu
STOCK-BASED COMPENSATION - Assumptions Used and Resulting Weighted Average Fair Value of Stock Option Granted (Details) | 3 Months Ended |
Jun. 29, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 24.00% |
Expected volatility, maximum | 27.00% |
Weighted average expected volatility | 25.00% |
Weighted average dividend yield | 2.50% |
Risk-free interest rate, minimum | 2.10% |
Risk-free interest rate, maximum | 2.40% |
Weighted average fair value at date of grant (in USD per share) | $ 17.20 |
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 7 months 6 days |
INCOME TAXES (Details)
INCOME TAXES (Details) € in Millions, $ in Millions | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jan. 10, 2017EUR (€) |
Income Tax Contingency [Line Items] | |||||||
Effective income tax rate | 21.50% | 10.80% | |||||
Tax benefit related stock compensation | $ 2.2 | $ 5.7 | |||||
Realization of unrecognized net tax benefit (expense) | $ (2.2) | 0.6 | |||||
Tax cuts and jobs act, income tax expense benefit | 2.9 | ||||||
Adjustments, state income tax | 1.6 | ||||||
Net discrete tax benefits | $ 6.4 | ||||||
Tax reduction due to discrete items | 9.30% | ||||||
Change in effective income tax rate without discrete items | 1.40% | ||||||
Decrease in unrecognized tax benefits and associated interest | $ 6.3 | ||||||
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 180.2 | ||||||
Possible decrease in unrecognized income tax benefits | 24.9 | ||||||
Reduction in income tax expenses | $ 23.8 | ||||||
VF Europe BVBA | Domestic Tax Authority | Administration of the Treasury, Belgium | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax and interest from settlement | € | € 31.9 | ||||||
Tax remitted | $ 33.9 | € 31.9 | $ 3.8 | € 3.1 |
REPORTABLE SEGMENT INFORMATIO_2
REPORTABLE SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Total segment revenues | $ 2,271,479 | $ 2,137,135 |
Operating income | 133,292 | 113,099 |
Income from continuing operations before income taxes | 123,892 | 68,821 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment revenues | 2,271,479 | 2,137,135 |
Operating income | 272,705 | 236,862 |
Operating Segments | Outdoor | ||
Segment Reporting Information [Line Items] | ||
Total segment revenues | 610,620 | 568,600 |
Operating income | (80,270) | (83,495) |
Operating Segments | Active | ||
Segment Reporting Information [Line Items] | ||
Total segment revenues | 1,232,126 | 1,136,937 |
Operating income | 307,566 | 269,197 |
Operating Segments | Work | ||
Segment Reporting Information [Line Items] | ||
Total segment revenues | 422,471 | 423,293 |
Operating income | 47,025 | 48,927 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total segment revenues | 6,262 | 8,305 |
Operating income | (1,616) | 2,233 |
Interest expense, net | (14,998) | (24,853) |
Corporate and other expenses | ||
Segment Reporting Information [Line Items] | ||
Corporate and other expenses | $ (133,815) | (143,188) |
Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Certain corporate overhead costs allocated to selling, general, and administrative expense | $ 24,600 |
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 | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Earnings per share – basic: | ||
Income from continuing operations | $ 97,249 | $ 61,364 |
Weighted average common shares outstanding (in shares) | 396,727 | 394,165 |
Earnings per share from continuing operations (in USD per share) | $ 0.25 | $ 0.16 |
Earnings per share – diluted: | ||
Income from continuing operations | $ 97,249 | $ 61,364 |
Weighted average common shares outstanding (in shares) | 396,727 | 394,165 |
Incremental shares from stock options and other dilutive securities (in shares) | 5,187 | 5,383 |
Adjusted weighted average common shares outstanding (in shares) | 401,914 | 399,548 |
Earnings per share from continuing operations (in USD per share) | $ 0.24 | $ 0.15 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
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 | 1.5 | 1.8 |
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 | 0.8 | 0.9 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Financial assets: | |||
Derivative financial instruments | $ 80,351 | $ 92,771 | $ 53,417 |
Investment securities | 131,989 | 186,698 | |
Financial liabilities: | |||
Derivative financial instruments | 11,374 | 22,337 | $ 34,189 |
Deferred compensation | 144,131 | 199,336 | |
Level 1 | |||
Financial assets: | |||
Derivative financial instruments | 0 | 0 | |
Investment securities | 124,627 | 176,209 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Derivative financial instruments | 80,351 | 92,771 | |
Investment securities | 7,362 | 10,489 | |
Financial liabilities: | |||
Derivative financial instruments | 11,374 | 22,337 | |
Deferred compensation | 144,131 | 199,336 | |
Level 3 | |||
Financial assets: | |||
Derivative financial instruments | 0 | 0 | |
Investment securities | 0 | 0 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Money market funds | |||
Financial assets: | |||
Cash equivalents | 344,357 | 248,560 | |
Money market funds | Level 1 | |||
Financial assets: | |||
Cash equivalents | 344,357 | 248,560 | |
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 | 3,726 | 8,257 | |
Time deposits | Level 1 | |||
Financial assets: | |||
Cash equivalents | 3,726 | 8,257 | |
Time deposits | Level 2 | |||
Financial assets: | |||
Cash equivalents | 0 | 0 | |
Time deposits | Level 3 | |||
Financial assets: | |||
Cash equivalents | $ 0 | 0 | |
Spinoff | |||
Financial liabilities: | |||
Deferred compensation | $ 50,800 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Mar. 30, 2019 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 2,131.9 | $ 2,121.1 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 2,392.5 | $ 2,318.6 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 29, 2019EUR (€) | Mar. 30, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative contract maturity (up to) | 20 months | |||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | $ 66.5 | |||
Remaining pretax deferred net loss in Accumulated OCI | 10.4 | |||
Interest rate cash flow hedge loss reclassified to earnings, net | 1.3 | $ 1.2 | ||
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | 5.3 | |||
Foreign currency exchange | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | 3,100 | 2,900 | $ 2,800 | |
Net Investment Hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | € | € 850 | |||
Gain (loss) on derivative used in net investment hedge | $ (8.7) | $ 41 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | $ 80,351 | $ 92,771 | $ 53,417 |
Fair Value of Derivatives with Unrealized Losses | (11,374) | (22,337) | (34,189) |
Foreign currency exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 67,979 | 92,356 | 53,417 |
Fair Value of Derivatives with Unrealized Losses | (9,359) | (21,798) | (33,984) |
Foreign currency exchange contracts not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 12,372 | 415 | 0 |
Fair Value of Derivatives with Unrealized Losses | $ (2,015) | $ (539) | $ (205) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Derivative Asset | |||
Gross amounts presented in the Consolidated Balance Sheets | $ 80,351 | $ 92,771 | $ 53,417 |
Gross amounts not offset in the Consolidated Balance Sheets | (11,301) | (22,274) | (30,304) |
Net amounts | 69,050 | 70,497 | 23,113 |
Derivative Liability | |||
Gross amounts presented in the Consolidated Balance Sheets | (11,374) | (22,337) | (34,189) |
Gross amounts not offset in the Consolidated Balance Sheets | 11,301 | 22,274 | 30,304 |
Net amounts | $ (73) | $ (63) | $ (3,885) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other current assets | $ 72,132 | $ 83,582 | $ 32,144 |
Accrued liabilities | (8,143) | (18,590) | (32,508) |
Other assets | 8,219 | 9,189 | 21,273 |
Other liabilities | $ (3,231) | $ (3,747) | $ (1,681) |
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 | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains arising during the period | $ 14,774 | |
Gains arising during the period | $ 94,629 | |
Gain (Loss) Reclassified from Accumulated OCI into Income | (16,317) | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | 10,495 | |
Foreign currency exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains arising during the period | 14,774 | |
Gains arising during the period | 94,629 | |
Foreign currency exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 945 | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | (2,905) | |
Foreign currency exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | (11,938) | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | 11,105 | |
Foreign currency exchange | Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | (2,698) | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | 716 | |
Foreign currency exchange | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | (1,393) | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | 2,872 | |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ (1,233) | |
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June | $ (1,293) |
RESTRUCTURING - Additional Info
RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Mar. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4,788 | $ 9,791 | |
Restructuring reserve | 57,924 | $ 69,141 | |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,400 | ||
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,400 | ||
Accrued Current Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 55,300 | ||
Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | $ 2,600 |
RESTRUCTURING - Activity in Res
RESTRUCTURING - Activity in Restructuring Accrual (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | $ 69,141 |
Charges | 4,788 |
Cash payments | (17,222) |
Adjustments to accruals | 1,303 |
Currency translation | (86) |
Amounts recorded in accrued liabilities. ending | 57,924 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 58,106 |
Charges | 2,224 |
Cash payments | (8,887) |
Adjustments to accruals | 1,303 |
Currency translation | 11 |
Amounts recorded in accrued liabilities. ending | 52,757 |
Other | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 11,035 |
Charges | 2,564 |
Cash payments | (8,335) |
Adjustments to accruals | 0 |
Currency translation | (97) |
Amounts recorded in accrued liabilities. ending | $ 5,167 |
RESTRUCTURING - Restructuring c
RESTRUCTURING - Restructuring costs by business segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 4,788 | $ 9,791 |
Operating Segments | Outdoor | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4,215 | 2,898 |
Operating Segments | Active | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 20 | 2,559 |
Operating Segments | Work | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 553 | 2,828 |
Corporate and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 1,506 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of possible loss interest payments | $ 137 |
Estimate of possible loss | $ 136 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Sep. 20, 2019$ / shares |
Subsequent Event | Dividend Declared | |
Subsequent Event [Line Items] | |
Cash dividend (in USD per share) | $ 0.43 |