Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 26, 2020 | Oct. 24, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 26, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5256 | |
Entity Registrant Name | V. F. CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1180120 | |
Entity Address, Address Line One | 1551 Wewatta Street | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 720 | |
Local Phone Number | 778-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 390,004,212 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000103379 | |
Current Fiscal Year End Date | --04-03 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value, stated capital, $0.25 per share | |
Trading Symbol | VFC | |
Security Exchange Name | NYSE | |
0.625% Senior Notes due 2023 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2023 | |
Trading Symbol | VFC23 | |
Security Exchange Name | NYSE | |
0.250% Senior Notes due 2028 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.250% Senior Notes due 2028 | |
Trading Symbol | VFC28 | |
Security Exchange Name | NYSE | |
0.625% Senior Notes due 2032 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2032 | |
Trading Symbol | VFC32 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Current assets | |||
Cash and equivalents | $ 1,877,398 | $ 1,369,028 | $ 469,912 |
Accounts receivable, less allowance for doubtful accounts of: September 2020 - $36,121; March 2020 - $37,099; September 2019 - $19,930 | 1,606,479 | 1,308,051 | 1,881,374 |
Inventories | 1,434,843 | 1,293,912 | 1,590,027 |
Short-term investments | 800,000 | 0 | 0 |
Other current assets | 408,809 | 444,886 | 391,678 |
Current assets of discontinued operations | 552,677 | 611,139 | 442,216 |
Total current assets | 6,680,206 | 5,027,016 | 4,775,207 |
Property, plant and equipment, net | 933,990 | 954,406 | 832,237 |
Intangible assets, net | 1,851,093 | 1,854,545 | 1,857,868 |
Goodwill | 1,173,514 | 1,156,019 | 1,479,755 |
Operating lease right-of-use assets | 1,385,121 | 1,273,514 | 1,231,638 |
Other assets | 917,342 | 867,751 | 905,993 |
Other assets of discontinued operations | 0 | 0 | 187,657 |
TOTAL ASSETS | 12,941,266 | 11,133,251 | 11,270,355 |
Current liabilities | |||
Short-term borrowings | 13,237 | 1,228,812 | 484,321 |
Current portion of long-term debt | 1,127 | 1,018 | 4,986 |
Accounts payable | 450,109 | 407,021 | 483,207 |
Accrued liabilities | 1,505,703 | 1,260,252 | 1,331,495 |
Current liabilities of discontinued operations | 114,356 | 126,781 | 100,329 |
Total current liabilities | 2,084,532 | 3,023,884 | 2,404,338 |
Long-term debt | 5,679,440 | 2,608,269 | 2,090,922 |
Operating lease liabilities | 1,129,840 | 1,020,651 | 997,456 |
Other liabilities | 1,102,216 | 1,123,113 | 1,106,791 |
Other liabilities of discontinued operations | 0 | 0 | 23,229 |
Total liabilities | 9,996,028 | 7,775,917 | 6,622,736 |
Commitments and contingencies | |||
Stockholders’ equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2020, March 2020 or September 2019 | 0 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2020 - 389,964,718; March 2020 - 388,812,158; September 2019 - 398,865,790 | 97,491 | 97,203 | 99,716 |
Additional paid-in capital | 3,852,358 | 4,183,780 | 4,072,640 |
Accumulated other comprehensive income (loss) | (959,658) | (930,958) | (930,725) |
Retained earnings (accumulated deficit) | (44,953) | 7,309 | 1,405,988 |
Total stockholders’ equity | 2,945,238 | 3,357,334 | 4,647,619 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,941,266 | $ 11,133,251 | $ 11,270,355 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Statement of Financial Position [Abstract] | |||
Allowance for credit loss | $ 36,121 | $ 37,099 | $ 19,930 |
Preferred Stock (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common Stock (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common stock, authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common stock, outstanding (in shares) | 389,964,718 | 388,812,158 | 398,865,790 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 2,608,324 | $ 3,179,758 | $ 3,684,617 | $ 5,230,412 |
Costs and operating expenses | ||||
Cost of goods sold | 1,282,406 | 1,456,317 | 1,789,357 | 2,352,601 |
Selling, general and administrative expenses | 1,005,970 | 1,174,879 | 1,822,121 | 2,233,284 |
Total costs and operating expenses | 2,288,376 | 2,631,196 | 3,611,478 | 4,585,885 |
Operating income | 319,948 | 548,562 | 73,139 | 644,527 |
Interest income | 3,176 | 4,424 | 4,489 | 10,968 |
Interest expense | (34,107) | (20,810) | (63,369) | (42,937) |
Other income (expense), net | 4,644 | (1,771) | (33,543) | 3,783 |
Income (loss) from continuing operations before income taxes | 293,661 | 530,405 | (19,284) | 616,341 |
Income tax expense (benefit) | 50,415 | (94,972) | 15,212 | (74,309) |
Income (loss) from continuing operations | 243,246 | 625,377 | (34,496) | 690,650 |
Income from discontinued operations, net of tax | 13,476 | 23,624 | 5,605 | 7,572 |
Net income (loss) | $ 256,722 | $ 649,001 | $ (28,891) | $ 698,222 |
Earnings (loss) per common share - basic | ||||
Continuing operations (in USD per share) | $ 0.62 | $ 1.57 | $ (0.09) | $ 1.74 |
Discontinued operations (in USD per share) | 0.03 | 0.06 | 0.01 | 0.02 |
Total earnings (loss) per common share - basic (in USD per share) | 0.66 | 1.63 | (0.07) | 1.76 |
Earnings (loss) per common share - diluted | ||||
Continuing operations (in USD per share) | 0.62 | 1.55 | (0.09) | 1.72 |
Discontinued operations (in USD per share) | 0.03 | 0.06 | 0.01 | 0.02 |
Total earnings (loss) per common share - diluted (in USD per share) | $ 0.66 | $ 1.61 | $ (0.07) | $ 1.74 |
Weighted average shares outstanding | ||||
Basic (in shares) | 389,219,000 | 397,751,000 | 388,957,000 | 397,239,000 |
Diluted (in shares) | 391,180,000 | 402,261,000 | 390,986,000 | 402,088,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 256,722 | $ 649,001 | $ (28,891) | $ 698,222 |
Foreign currency translation and other | ||||
Losses arising during the period | (33,483) | (70,473) | (29,629) | (57,644) |
Reclassification of foreign currency translation losses | 0 | 0 | 42,364 | 0 |
Income tax effect | 18,582 | (8,912) | 24,837 | (5,969) |
Defined benefit pension plans | ||||
Current period actuarial losses | (8,853) | (14,610) | (8,853) | (14,610) |
Amortization of net deferred actuarial losses | 2,898 | 4,014 | 5,761 | 8,033 |
Amortization of deferred prior service costs (credits) | (17) | 12 | (34) | 25 |
Reclassification of deferred prior service cost due to curtailments | 572 | 519 | 572 | 519 |
Income tax effect | 386 | 2,207 | 722 | 499 |
Derivative financial instruments | ||||
Gains (losses) arising during the period | (39,731) | 51,396 | (47,326) | 66,170 |
Income tax effect | 7,197 | (7,048) | 8,727 | (10,922) |
Reclassification of net gains realized | (11,379) | (23,688) | (31,659) | (34,183) |
Income tax effect | 1,711 | 3,244 | 5,818 | 6,000 |
Other comprehensive income (loss) | (62,117) | (63,339) | (28,700) | (42,082) |
Comprehensive income (loss) | $ 194,605 | $ 585,662 | $ (57,591) | $ 656,140 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (28,891) | $ 698,222 |
Income from discontinued operations, net of tax | 5,605 | 7,572 |
Income (loss) from continuing operations, net of tax | (34,496) | 690,650 |
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||
Depreciation and amortization | 138,853 | 125,159 |
Reduction in the carrying amount of right-of-use assets | 205,635 | 186,327 |
Stock-based compensation | 26,113 | 70,146 |
Provision for doubtful accounts | 15,727 | 5,767 |
Pension expense less than contributions | (7,953) | (6,125) |
Other, net | 15,852 | (99,823) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (275,436) | (542,150) |
Inventories | (115,515) | (433,360) |
Accounts payable | 36,019 | (169) |
Income taxes | (40,770) | (47,964) |
Accrued liabilities | 161,785 | (123,369) |
Operating lease right-of-use assets and liabilities | (150,170) | (224,750) |
Other assets and liabilities | 63,866 | 26,915 |
Cash provided (used) by operating activities - continuing operations | 39,510 | (372,746) |
Cash provided by operating activities - discontinued operations | 43,298 | 7,268 |
Cash provided (used) by operating activities | 82,808 | (365,478) |
INVESTING ACTIVITIES | ||
Purchases of short-term investments | (800,000) | 0 |
Capital expenditures | (112,501) | (104,988) |
Software purchases | (38,345) | (24,712) |
Other, net | (3,839) | 59,558 |
Cash used by investing activities - continuing operations | (954,685) | (70,142) |
Cash used by investing activities - discontinued operations | (2,693) | (7,270) |
Cash used by investing activities | (957,378) | (77,412) |
FINANCING ACTIVITIES | ||
Net decrease in short-term borrowings | (1,215,575) | (168,421) |
Payments on long-term debt | (768) | (2,868) |
Payment of debt issuance costs | (21,430) | 0 |
Proceeds from long-term debt | 2,996,090 | 0 |
Cash dividends paid | (373,638) | (373,604) |
Cash received from Kontoor Brands, net of cash transferred of $126.8 million | 0 | 906,148 |
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings | (7,221) | 50,659 |
Cash provided by financing activities | 1,377,458 | 411,914 |
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (8,082) | (5,385) |
Net change in cash, cash equivalents and restricted cash | 494,806 | (36,361) |
Cash, cash equivalents and restricted cash – beginning of year | 1,411,322 | 556,587 |
Cash, cash equivalents and restricted cash – end of period | $ 1,906,128 | 520,226 |
Cash Transferred | $ 126,800 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 28, 2019 | Sep. 26, 2020 | |
Statement of Cash Flows [Abstract] | ||
Cash Transferred | $ 126,800 | |
Balances per Consolidated Balance Sheets: | ||
Cash and equivalents | 469,912 | $ 1,877,398 |
Other current assets | 2,748 | 1,301 |
Current assets of discontinued operations | 37,693 | 26,846 |
Other assets | 9,873 | 583 |
Total cash, cash equivalents and restricted cash | $ 520,226 | $ 1,906,128 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment |
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) | $ (61,861) | $ 1,179,601 | ||
Balance (Adoption of new accounting standard, ASU 2016-02) at Mar. 30, 2019 | $ (2,491) | $ (2,491) | ||||||
Balance (Adoption of new accounting standard, ASU 2018-02) at Mar. 30, 2019 | $ 0 | $ (61,861) | $ 61,861 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 698,222 | 698,222 | ||||||
Dividends on Common Stock | (373,604) | (373,604) | ||||||
Stock-based compensation, net (in shares) | 2,041,128 | |||||||
Stock-based compensation, net | 123,973 | $ 510 | 150,856 | (27,393) | ||||
Foreign currency translation and other | (63,613) | (63,613) | ||||||
Defined benefit pension plans | (5,534) | (5,534) | ||||||
Derivative financial instruments | 27,065 | 27,065 | ||||||
Spin-off of Jeans Business | (54,915) | 75,293 | (130,208) | |||||
Balance (in shares) at Sep. 28, 2019 | 398,865,790 | |||||||
Balance at Sep. 28, 2019 | 4,647,619 | $ 99,716 | 4,072,640 | (930,725) | 1,405,988 | |||
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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 649,001 | 649,001 | ||||||
Dividends on Common Stock | (171,066) | (171,066) | ||||||
Stock-based compensation, net (in shares) | 943,670 | |||||||
Stock-based compensation, net | 81,409 | $ 235 | 84,255 | (3,081) | ||||
Foreign currency translation and other | (79,385) | (79,385) | ||||||
Defined benefit pension plans | (7,858) | (7,858) | ||||||
Derivative financial instruments | 23,904 | 23,904 | ||||||
Balance (in shares) at Sep. 28, 2019 | 398,865,790 | |||||||
Balance at Sep. 28, 2019 | 4,647,619 | $ 99,716 | 4,072,640 | (930,725) | 1,405,988 | |||
Balance (in shares) at Mar. 28, 2020 | 388,812,158 | |||||||
Balance at Mar. 28, 2020 | 3,357,334 | $ 97,203 | 4,183,780 | (930,958) | 7,309 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (28,891) | (28,891) | ||||||
Dividends on Common Stock | (373,638) | (373,638) | 0 | |||||
Stock-based compensation, net (in shares) | 1,152,560 | |||||||
Stock-based compensation, net | 19,133 | $ 288 | 42,216 | (23,371) | ||||
Foreign currency translation and other | 37,572 | 37,572 | ||||||
Defined benefit pension plans | (1,832) | (1,832) | ||||||
Derivative financial instruments | (64,440) | (64,440) | ||||||
Balance (in shares) at Sep. 26, 2020 | 389,964,718 | |||||||
Balance at Sep. 26, 2020 | 2,945,238 | $ 97,491 | 3,852,358 | (959,658) | (44,953) | |||
Balance (in shares) at Jun. 27, 2020 | 389,641,245 | |||||||
Balance at Jun. 27, 2020 | 2,912,598 | $ 97,410 | 4,010,817 | (897,541) | (298,088) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 256,722 | 256,722 | ||||||
Dividends on Common Stock | (186,892) | (186,892) | ||||||
Stock-based compensation, net (in shares) | 323,473 | |||||||
Stock-based compensation, net | 24,927 | $ 81 | 28,433 | (3,587) | ||||
Foreign currency translation and other | (14,901) | (14,901) | ||||||
Defined benefit pension plans | (5,014) | (5,014) | ||||||
Derivative financial instruments | (42,202) | (42,202) | ||||||
Balance (in shares) at Sep. 26, 2020 | 389,964,718 | |||||||
Balance at Sep. 26, 2020 | $ 2,945,238 | $ 97,491 | $ 3,852,358 | $ (959,658) | $ (44,953) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201802Member | |||
Dividends on Common Stock (in usd per share) | $ 0.48 | $ 0.43 | $ 0.96 | $ 0.94 |
Dividends, Common Stock | $ (186,892) | $ (171,066) | $ (373,638) | $ (373,604) |
Adoption of new accounting standard, ASU 2016-02 | ||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201602Member | |||
Adoption of new accounting standard, ASU 2018-02 | ||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201802Member |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Sep. 26, 2020 | |
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 29, 2020 through April 3, 2021 ("Fiscal 2021"). Accordingly, this Form 10-Q presents our second quarter of Fiscal 2021. For presentation purposes herein, all references to periods ended September 2020 and September 2019 relate to the fiscal periods ended on September 26, 2020 and September 28, 2019, respectively. References to March 2020 relate to information as of March 28, 2020. On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also includes certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. During the three months ended March 2020, the Company determined that the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria and expects to divest this business during Fiscal 2021. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets. These changes have been applied to all periods presented. 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 results for the Jeans business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. These changes have been applied to all periods presented. Certain prior year amounts have been reclassified to conform to the Fiscal 2021 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 2020 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 and six months ended September 2020 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2021. 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 28, 2020 (“Fiscal 2020 Form 10-K”). In preparing the condensed consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. The duration and severity of the novel coronavirus ("COVID-19") pandemic, which is subject to uncertainty, is having a significant impact on VF's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates. |
RECENTLY ADOPTED AND ISSUED ACC
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Sep. 26, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. The guidance became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact on VF's consolidated financial statements. As a result of the adoption of this guidance, the following significant accounting policy from the Company’s Fiscal 2020 Form 10-K has been updated: Accounts Receivable Trade accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms, sales incentive programs and discounts. Royalty receivables are recorded at amounts earned based on the licensees' sales of licensed products, subject in some cases to contractual minimum royalties due from individual licensees. VF maintains an allowance for doubtful accounts for estimated losses that will result from the inability of customers and licensees to make required payments. The allowance is determined based on review of specific customer accounts where collection is doubtful, as well as an assessment of the collectability of total receivables, which are grouped based on similar risk characteristics, considering historical trends, adjusted for current economic conditions and reasonable and supportable forecasts when appropriate. The allowance represents the current estimate of lifetime expected credit losses for all outstanding accounts receivable and reflects the Company's ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses and future expectations. Receivables are written off against the allowance when it is determined that the amounts will not be recovered. 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 became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact 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 became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact on VF's consolidated financial statements. Recently Issued Accounting Standards 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 annual disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021, but the Company does not expect the adoption of this guidance to have a material impact on VF's disclosures. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" , an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance will be effective for VF in the first quarter of the year ending April 2, 2022 ("Fiscal 2022") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" , an update that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on VF's consolidated financial statements. |
REVENUES
REVENUES | 6 Months Ended |
Sep. 26, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following table provides information about accounts receivable, contract assets and contract liabilities: (In thousands) September 2020 March 2020 September 2019 Accounts receivable, net $ 1,606,479 $ 1,308,051 $ 1,881,374 Contract assets (a) 2,573 1,181 2,433 Contract liabilities (b) 44,010 37,498 39,346 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities line item in the Consolidated Balance Sheets. For the three and six months ended September 2020, the Company recognized $85.1 million and $120.7 million, respectively, of revenue that was included in the contract liability balance during the periods, including amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. The change in the contract asset and contract liability balances primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment. For the three and six months ended September 2020, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material. As of September 2020, the Company expects to recognize $55.5 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts to be recognized over time based on the contractual terms, including $9.1 million during the remainder of Fiscal 2021. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less. As of September 2020, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and the fixed consideration related to future minimum guarantees discussed above. 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 were 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 September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 823,954 $ 664,868 $ 208,902 $ — $ 1,697,724 Direct-to-consumer 329,661 530,231 40,028 164 900,084 Royalty 792 5,103 4,621 — 10,516 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Geographic revenues United States $ 522,676 $ 586,377 $ 161,458 $ — $ 1,270,511 International 631,731 613,825 92,093 164 1,337,813 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Three Months Ended September 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,175,422 $ 709,770 $ 186,482 $ 15,172 $ 2,086,846 Direct-to-consumer 347,684 697,627 30,453 2,898 1,078,662 Royalty 2,831 6,237 5,182 — 14,250 Total $ 1,525,937 $ 1,413,634 $ 222,117 $ 18,070 $ 3,179,758 Geographic revenues United States $ 737,255 $ 711,541 $ 149,523 $ — $ 1,598,319 International 788,682 702,093 72,594 18,070 1,581,439 Total $ 1,525,937 $ 1,413,634 $ 222,117 $ 18,070 $ 3,179,758 Six Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 982,460 $ 906,032 $ 326,506 $ 1,275 $ 2,216,273 Direct-to-consumer 509,675 854,432 80,643 208 1,444,958 Royalty 3,500 11,054 8,832 — 23,386 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Geographic revenues United States $ 675,153 $ 851,884 $ 276,090 $ — $ 1,803,127 International 820,482 919,634 139,891 1,483 1,881,490 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Six Months Ended September 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,517,178 $ 1,369,912 $ 350,762 $ 17,980 $ 3,255,832 Direct-to-consumer 614,026 1,263,514 63,972 6,352 1,947,864 Royalty 5,353 12,334 9,029 — 26,716 Total $ 2,136,557 $ 2,645,760 $ 423,763 $ 24,332 $ 5,230,412 Geographic revenues United States $ 1,040,307 $ 1,422,746 $ 292,154 $ — $ 2,755,207 International 1,096,250 1,223,014 131,609 24,332 2,475,205 Total $ 2,136,557 $ 2,645,760 $ 423,763 $ 24,332 $ 5,230,412 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Sep. 26, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The Company continuously assesses the composition of its portfolio to ensure it is aligned with its strategic objectives and positioned to maximize growth and return to shareholders. Occupational Workwear Business On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also includes certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. During the three months ended March 2020, the Company determined the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria and expects to divest this business during Fiscal 2021. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets. The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations were income of $13.5 million and $5.6 million for the three and six months ended September 2020, respectively, and $23.6 million and $55.6 million for the three and six months ended September 2019, respectively. Certain corporate overhead costs and segment costs previously allocated to the Occupational Workwear business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing 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 and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. 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 seven five 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 from discontinued operations, net of tax line item in the Consolidated Statement of Operations were a loss of $48.0 million for the six months ended September 2019, including $59.5 million of separation and related expenses. 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 24 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 14, based on the function providing the service. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the Occupational Workwear business and the Jeans business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Net revenues $ 162,310 $ 213,510 $ 287,643 $ 769,538 Cost of goods sold 113,147 140,990 214,617 483,944 Selling, general and administrative expenses 34,911 42,017 68,167 238,483 Interest income, net 180 559 473 592 Other income (expense), net 79 (41) 79 (664) Income from discontinued operations before income taxes 14,511 31,021 5,411 47,039 Income tax expense (benefit) (a) 1,035 7,397 (194) 39,467 Income from discontinued operations, net of tax $ 13,476 $ 23,624 $ 5,605 $ 7,572 (a) Income tax expense for the six months ended September 2019 includes additional tax expense on nondeductible transaction costs and uncertain tax positions related to the Jeans business. 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) September 2020 March 2020 September 2019 Cash and equivalents $ 26,846 $ 39,752 $ 37,693 Accounts receivable, net 82,520 83,650 94,780 Inventories 241,519 294,000 300,689 Other current assets 7,773 6,701 9,054 Property, plant and equipment, net 47,964 44,863 39,364 Intangible assets, net 54,471 54,471 61,902 Goodwill 43,530 43,530 49,630 Operating lease right-of-use assets 42,445 38,941 32,265 Other assets 5,609 5,231 4,496 Total assets of discontinued operations $ 552,677 $ 611,139 $ 629,873 Accounts payable $ 46,493 $ 63,380 $ 67,493 Accrued liabilities 32,322 29,699 32,836 Operating lease liabilities 34,688 35,867 30,907 Other liabilities 5,177 2,270 2,572 Deferred income tax liabilities (a) (4,324) (4,435) (10,250) Total liabilities of discontinued operations $ 114,356 $ 126,781 $ 123,558 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (In thousands) September 2020 March 2020 September 2019 Finished products $ 1,358,593 $ 1,201,562 $ 1,500,803 Work-in-process 59,855 67,603 64,585 Raw materials 16,395 24,747 24,639 Total inventories $ 1,434,843 $ 1,293,912 $ 1,590,027 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS September 2020 March 2020 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 266,350 $ 142,442 $ 123,908 $ 137,017 License agreements 19 years Accelerated 7,766 5,216 2,550 2,548 Other 8 years Straight-line 8,296 5,936 2,360 2,909 Amortizable intangible assets, net 128,818 142,474 Indefinite-lived intangible assets: Trademarks and trade names 1,722,275 1,712,071 Intangible assets, net $ 1,851,093 $ 1,854,545 Amortization expense for the three and six months ended September 2020 was $4.5 million and $8.9 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2021 is $16.8 million, $15.2 million, $14.1 million, $13.6 million and $13.1 million, respectively. |
GOODWILL
GOODWILL | 6 Months Ended |
Sep. 26, 2020 | |
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 2020 $ 653,433 $ 389,848 $ 112,738 $ 1,156,019 Currency translation 7,000 9,917 578 17,495 Balance, September 2020 $ 660,433 $ 399,765 $ 113,316 $ 1,173,514 |
LEASES
LEASES | 6 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost, impairment and gain recognized from sale-leaseback transactions. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Operating lease cost $ 106,679 $ 107,023 $ 215,531 $ 206,611 Other lease costs 19,572 31,202 34,570 49,106 Total lease cost $ 126,251 $ 138,225 $ 250,101 $ 255,717 During the six months ended September 2020 and 2019, the Company paid $176.1 million and $209.5 million of cash for operating leases, respectively. The decrease was primarily driven by the timing of payments and lease concessions related to the effects of COVID-19. During the six months ended September 2020 and 2019, the Company obtained $326.3 million and $225.3 million of right-of-use assets in exchange for lease liabilities, respectively. |
LEASES | LEASES The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost, impairment and gain recognized from sale-leaseback transactions. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Operating lease cost $ 106,679 $ 107,023 $ 215,531 $ 206,611 Other lease costs 19,572 31,202 34,570 49,106 Total lease cost $ 126,251 $ 138,225 $ 250,101 $ 255,717 During the six months ended September 2020 and 2019, the Company paid $176.1 million and $209.5 million of cash for operating leases, respectively. The decrease was primarily driven by the timing of payments and lease concessions related to the effects of COVID-19. During the six months ended September 2020 and 2019, the Company obtained $326.3 million and $225.3 million of right-of-use assets in exchange for lease liabilities, respectively. |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT Revolving Credit Facility In April 2020, VF entered into Amendment No. 1 to its $2.25 billion senior unsecured revolving line of credit (the "Global Credit Facility") (the “Amendment”). The Amendment provides for (i) an increase in VF’s consolidated indebtedness to consolidated capitalization ratio financial covenant to 0.70 to 1.00 (from 0.60 to 1.00) through the last day of the fiscal quarter ending March 31, 2022, (ii) calculation of consolidated indebtedness (and, thereby consolidated capitalization) net of unrestricted cash of VF and its subsidiaries and (iii) testing of such financial covenant solely as of the last day of each fiscal quarter during such period. In addition, the Amendment requires VF and its subsidiaries to maintain minimum liquidity in the form of unrestricted cash and unused financing commitments of not less than $750.0 million at all times during such period. As of September 2020 , VF was in compliance with all covenants. Senior Notes Issuance In April 2020, VF issued senior unsecured notes, as outlined in the table below: (Dollars in thousands) Scheduled Maturity Aggregate Principal Effective Annual Interest Rate Interest Payments 2.050% notes, due 2022 $ 1,000,000 2.277 % Semiannually 2.400% notes, due 2025 750,000 2.603 % Semiannually 2.800% notes, due 2027 500,000 2.953 % Semiannually 2.950% notes, due 2030 750,000 3.071 % Semiannually Total Issuance $ 3,000,000 VF used a portion of the net proceeds from this offering to repay borrowings under its Global Credit Facility. The aggregate outstanding balance of these notes was $2.98 billion at September 2020, which was net of unamortized original issue discount and debt issuance costs. |
PENSION PLANS
PENSION PLANS | 6 Months Ended |
Sep. 26, 2020 | |
Retirement Benefits [Abstract] | |
PENSION PLANS | PENSION PLANS The components of pension cost (income) for VF’s defined benefit plans were as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Service cost – benefits earned during the period $ 3,783 $ 3,410 $ 7,415 $ 6,791 Interest cost on projected benefit obligations 11,981 14,743 23,929 29,504 Expected return on plan assets (20,571) (23,151) (41,110) (46,329) Settlement charges 572 519 572 519 Amortization of deferred amounts: Net deferred actuarial losses 2,898 4,014 5,761 8,033 Deferred prior service costs (credits) (17) 12 (34) 25 Net periodic pension cost (income) $ (1,354) $ (453) $ (3,467) $ (1,457) The amounts reported in these disclosures have not been segregated between continuing and discontinued operations. VF has reported the service cost component of net periodic pension cost (income) in operating income and the other components, which include interest cost, expected return on plan assets, settlement charges and amortization of deferred actuarial losses and prior service costs (credits), in the other income (expense), net line item in the Consolidated Statements of Operations. VF contributed $4.5 million to its defined benefit plans during the six months ended September 2020, and intends to make approximately $13.9 million of contributions during the remainder of Fiscal 2021. |
CAPITAL AND ACCUMULATED OTHER C
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Common Stock During the six months ended September 2020, the Company did not purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased. Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of September 2020, March 2020 or September 2019. The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and specified components of other comprehensive income (“OCI”), which relates to changes in assets and liabilities that are not included in net income (loss) under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income (loss) is presented in the Consolidated Statements of Comprehensive Income (Loss). The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: (In thousands) September 2020 March 2020 September 2019 Foreign currency translation and other $ (700,137) $ (737,709) $ (715,286) Defined benefit pension plans (264,304) (262,472) (298,326) Derivative financial instruments 4,783 69,223 82,887 Accumulated other comprehensive income (loss) $ (959,658) $ (930,958) $ (930,725) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2020 $ (685,236) $ (259,290) $ 46,985 $ (897,541) Other comprehensive income (loss) before reclassifications (14,901) (7,629) (32,534) (55,064) Amounts reclassified from accumulated other comprehensive income (loss) — 2,615 (9,668) (7,053) Net other comprehensive income (loss) (14,901) (5,014) (42,202) (62,117) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Three Months Ended September 2019 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2019 $ (635,901) $ (290,468) $ 58,983 $ (867,386) Other comprehensive income (loss) before reclassifications (79,385) (10,896) 44,348 (45,933) Amounts reclassified from accumulated other comprehensive income (loss) — 3,038 (20,444) (17,406) Net other comprehensive income (loss) (79,385) (7,858) 23,904 (63,339) Balance, September 2019 $ (715,286) $ (298,326) $ 82,887 $ (930,725) Six Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2020 $ (737,709) $ (262,472) $ 69,223 $ (930,958) Other comprehensive income (loss) before reclassifications (4,792) (6,642) (38,599) (50,033) Amounts reclassified from accumulated other comprehensive income (loss) 42,364 4,810 (25,841) 21,333 Net other comprehensive income (loss) 37,572 (1,832) (64,440) (28,700) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Six Months Ended September 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 (63,613) (11,719) 55,248 (20,084) Amounts reclassified from accumulated other comprehensive income (loss) — 6,185 (28,183) (21,998) Spin-off of Jeans Business 83,094 794 (8,595) 75,293 Net other comprehensive income (loss) 10,393 (55,142) 16,099 (28,650) Balance, September 2019 $ (715,286) $ (298,326) $ 82,887 $ (930,725) Reclassifications out of accumulated OCI were as follows: (In thousands) Three Months Ended September Six Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 2020 2019 Losses on foreign currency translation and other: Liquidation of foreign entities Other income (expense), net $ — $ — $ (42,364) $ — Total before tax — — (42,364) — Tax (expense) benefit — — — — Net of tax — — (42,364) — Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net (2,898) (4,014) (5,761) (8,033) Deferred prior service (costs) credits Other income (expense), net 17 (12) 34 (25) Pension settlement charges Other income (expense), net (572) (519) (572) (519) Total before tax (3,453) (4,545) (6,299) (8,577) Tax benefit 838 1,507 1,489 2,392 Net of tax (2,615) (3,038) (4,810) (6,185) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net revenues 2,135 (2,814) 2,306 (5,719) Foreign exchange contracts Cost of goods sold 8,443 22,727 25,148 33,832 Foreign exchange contracts Selling, general and administrative expenses 741 1,382 2,348 2,098 Foreign exchange contracts Other income (expense), net 33 3,696 1,803 6,568 Interest rate contracts Interest expense 27 (1,303) 54 (2,596) Total before tax 11,379 23,688 31,659 34,183 Tax expense (1,711) (3,244) (5,818) (6,000) Net of tax 9,668 20,444 25,841 28,183 Total reclassifications for the period, net of tax $ 7,053 $ 17,406 $ (21,333) $ 21,998 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Incentive Equity Awards Granted During the six months ended September 2020, VF granted stock options to employees and nonemployee members of VF's Board of Directors to purchase 1,683,840 shares of its Common Stock at a weighted average exercise price of $55.75 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest in equal annual installments over three years. Stock options granted to nonemployee members of VF's Board of Directors vest upon grant and become exercisable one year from the date of grant. All options have ten The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows: Six Months Ended September 2020 Expected volatility 28% to 48% Weighted average expected volatility 37% Expected term (in years) 6.2 to 8.0 Weighted average dividend yield 2.4% Risk-free interest rate 0.1% to 0.7% Weighted average fair value at date of grant $15.78 During the three months ended September 2020, VF granted 397,782 performance-based restricted stock units ("RSUs") to employees that enable them to receive shares of VF Common Stock at the end of a three-year performance cycle. 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 weighted average fair market value of VF Common Stock at the dates the units were granted was $60.11 per share. The financial targets include 50% weighting based on VF's revenue growth over the three-year period compared to a group of industry peers and 50% weighting based on VF's total shareholder return ("TSR") over the three-year period compared to the TSR for companies included in the Standard & Poor's 500 Consumer Discretionary Index. The grant date fair value of the TSR portion of the performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $81.60 per share. Additionally, t he actual number of performance-based RSUs earned may be adjusted upward or downward by 25% of the target award, based on VF's gross margin performance over the three-year period. Also during the six months ended September 2020, VF granted 16,775 nonperformance-based RSUs to nonemployee members of the Board of Directors. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The fair market value of VF Common Stock at the date the units were granted was $55.74 per share. VF granted 27,000 nonperformance-based RSUs to certain key employees in international jurisdictions during the six months ended September 2020. These units vest over periods of up to four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the dates the units were granted was $58.11 per share. In addition, VF granted 267,642 nonperformance-based RSUs to employees during the six months ended September 2020. These awards vest 50% over a two four VF granted 80,742 restricted shares of VF Common Stock to certain members of management during the six months ended September 2020. These shares vest over periods of up to four years from the date of grant. The weighted average fair market value of VF Common Stock at the dates the shares were granted was $57.17 per share. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate for the six months ended September 2020 was (78.9)% compared to (12.1)% in the 2019 period. The six months ended September 2020 included a net discrete tax expense of $3.9 million, which included a $2.0 million net tax expense related to unrecognized tax benefits and interest and a $1.8 million tax expense related to withholding taxes on prior foreign earnings. Excluding the $3.9 million net discrete tax expense in the 2020 period, the effective income tax rate would have been (58.9)%. The six months ended September 2019 included a net discrete tax benefit of $177.4 million, which included a $6.4 million tax benefit related to stock compensation, a $6.9 million net tax benefit related to unrecognized tax benefits and interest and a $164.4 million tax benefit related to the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Act"). Excluding the $177.4 million net discrete tax benefit in the 2019 period, the effective income tax rate would have been 16.7%. Without discrete items, the effective income tax rate for the six months ended September 2020 decreased by 75.6% compared with the 2019 period primarily due to losses generated in the current year. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service ("IRS") examinations for tax years through 2015 have been effectively settled. The examination of Timberland’s 2011 tax return is ongoing. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years and has concluded that VF’s provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. 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 in 2017 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. Additionally, the EU has initiated proceedings related to individual rulings granted by Belgium, including the ruling granted to VF. If this matter is adversely resolved, these amounts will not be collected by VF. During the six months ended September 2020, the amount of net unrecognized tax benefits and associated interest increased by $3.7 million to $168.8 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 $16.2 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $8.8 million would reduce income tax expense. |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION | 6 Months Ended |
Sep. 26, 2020 | |
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 (loss), but it is not considered a reportable segment. Other includes results primarily related to the sale of non-VF products. Financial information for VF's reportable segments was as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Segment revenues: Outdoor $ 1,154,407 $ 1,525,937 $ 1,495,635 $ 2,136,557 Active 1,200,202 1,413,634 1,771,518 2,645,760 Work 253,551 222,117 415,981 423,763 Other 164 18,070 1,483 24,332 Total segment revenues $ 2,608,324 $ 3,179,758 $ 3,684,617 $ 5,230,412 Segment profit (loss): Outdoor $ 132,475 $ 256,382 $ (28,236) $ 176,112 Active 259,123 388,200 266,259 695,766 Work 8,173 14,547 (3,228) 30,018 Other (2,526) 2,381 (4,887) 765 Total segment profit 397,245 661,510 229,908 902,661 Corporate and other expenses (a) (72,653) (114,719) (190,312) (254,351) Interest expense, net (30,931) (16,386) (58,880) (31,969) Income (loss) from continuing operations before income taxes $ 293,661 $ 530,405 $ (19,284) $ 616,341 (a) Certain corporate overhead and other costs of $6.2 million and $12.3 million for the three and six-month period ended September 2019, respectively, previously allocated to the Work segment have been reallocated to continuing operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended September Six Months Ended September (In thousands, except per share amounts) 2020 2019 2020 2019 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 243,246 $ 625,377 $ (34,496) $ 690,650 Weighted average common shares outstanding 389,219 397,751 388,957 397,239 Earnings (loss) per share from continuing operations $ 0.62 $ 1.57 $ (0.09) $ 1.74 Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 243,246 $ 625,377 $ (34,496) $ 690,650 Weighted average common shares outstanding 389,219 397,751 388,957 397,239 Incremental shares from stock options and other dilutive securities 1,961 4,510 2,029 4,849 Adjusted weighted average common shares outstanding 391,180 402,261 390,986 402,088 Earnings (loss) per share from continuing operations $ 0.62 $ 1.55 $ (0.09) $ 1.72 In addition, 0.8 million and 0.6 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2020, respectively, and 0.8 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for both the three and six-month periods ended September 2019, because these units were not considered to be contingent outstanding shares in those periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 September 2020 Financial assets: Cash equivalents: Money market funds $ 948,543 $ 948,543 $ — $ — Time deposits 11,872 11,872 — — Short-term investments: Managed income fund 600,000 600,000 — — Time deposits 200,000 200,000 — — Derivative financial instruments 33,176 — 33,176 — Deferred compensation 122,956 122,956 — — Financial liabilities: Derivative financial instruments 32,318 — 32,318 — Deferred compensation 132,094 — 132,094 — Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2020 Financial assets: Cash equivalents: Money market funds $ 1,211,887 $ 1,211,887 $ — $ — Time deposits 1,932 1,932 — — Derivative financial instruments 91,834 — 91,834 — Deferred compensation 105,706 105,706 — — Financial liabilities: Derivative financial instruments 14,531 — 14,531 — Deferred compensation 113,289 — 113,289 — (a) There were no transfers among the levels within the fair value hierarchy during the six months ended September 2020 or the year ended March 2020. 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 September 2020 and March 2020, their carrying values approximated fair value. Additionally, at September 2020 and March 2020, the carrying values of VF’s long-term debt, including the current portion, were $5,680.6 million and $2,609.3 million, respectively, compared with fair values of $6,092.7 million and $2,672.9 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Sep. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Summary of Derivative Financial Instruments All of VF’s outstanding derivative financial instruments are foreign exchange forward contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. The notional amounts of all outstanding derivative contracts were $2.5 billion at September 2020 , $2.6 billion at March 2020 and $2.8 billion at September 2019, consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, South Korean won, Swedish krona, Japanese yen, Polish zloty and New Zealand dollar. Derivative contracts have maturities up to 20 months. The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives (In thousands) September 2020 March 2020 September 2019 September 2020 March 2020 September 2019 Foreign currency exchange contracts designated as hedging instruments $ 28,676 $ 78,298 $ 82,756 $ (31,157) $ (12,682) $ (10,944) Foreign currency exchange contracts not designated as hedging instruments 4,500 13,536 7,706 (1,161) (1,849) (1,408) Total derivatives $ 33,176 $ 91,834 $ 90,462 $ (32,318) $ (14,531) $ (12,352) VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2020 March 2020 September 2019 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 33,176 $ (32,318) $ 91,834 $ (14,531) $ 90,462 $ (12,352) Gross amounts not offset in the Consolidated Balance Sheets (23,491) 23,491 (14,393) 14,393 (12,283) 12,283 Net amounts $ 9,685 $ (8,827) $ 77,441 $ (138) $ 78,179 $ (69) Derivatives are classified as current or noncurrent based on maturity dates, as follows: (In thousands) September 2020 March 2020 September 2019 Other current assets $ 27,615 $ 71,784 $ 81,279 Accrued liabilities (22,946) (11,378) (10,106) Other assets 5,561 20,050 9,183 Other liabilities (9,372) (3,153) (2,246) Cash Flow Hedges VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production costs, operating costs and intercompany royalties. The effects of cash flow hedging included in VF’s Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended September Gain (Loss) on Derivatives Recognized in OCI Six Months Ended September Cash Flow Hedging Relationships 2020 2019 2020 2019 Foreign currency exchange $ (39,731) $ 51,396 $ (47,326) $ 66,170 (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Six Months Ended September Location of Gain (Loss) 2020 2019 2020 2019 Net revenues $ 2,135 $ (2,814) $ 2,306 $ (5,719) Cost of goods sold 8,443 22,727 25,148 33,832 Selling, general and administrative expenses 741 1,382 2,348 2,098 Other income (expense), net 33 3,696 1,803 6,568 Interest expense 27 (1,303) 54 (2,596) Total $ 11,379 $ 23,688 $ 31,659 $ 34,183 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. Certain derivative contracts were de-designated as the hedged forecasted transactions were no longer deemed probable of occurring primarily as a result of the COVID-19 pandemic and actions expected to be taken by the Company. Accordingly, the Company reclassified amounts from accumulated OCI and recognized a $1.3 million net loss and a $3.7 million net gain during the three and six months ended September 2020, respectively, which were primarily recorded in cost of goods sold. 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 Operations were not material for the three and six months ended September 2020 and September 2019. Other Derivative Information At September 2020, accumulated OCI included $8.0 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. Net Investment Hedge The Company has designated its €1.850 billion 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 and six-month periods ended September 2020, the Company recognized an after-tax loss of $53.5 million and $71.6 million, respectively, in OCI related to the net investment hedge transaction, and an after-tax gain of $26.3 million and $17.6 million for the three and six-month periods ended September 2019, respectively. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Sep. 26, 2020 | |
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 and six months ended September 2020, VF recognized $23.4 million and $45.8 million of restructuring charges, respectively, related to approved initiatives. Of the restructuring charges recognized in the three and six months ended September 2020, $20.2 million and $28.7 million were reflected in selling, general and administrative expenses, respectively, and $3.2 million and $17.1 million in cost of goods sold, respectively. The Company has not recognized any significant incremental costs related to accruals for the year ended March 2020 or prior periods. Of the $47.3 million total restructuring accrual at September 2020, $45.0 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $2.3 million will be paid out beyond the next 12 months and thus is classified within other liabilities. The components of the restructuring charges are as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Severance and employee-related benefits $ 9,883 $ 1,033 $ 28,392 $ 3,257 Asset impairments 10,557 — 10,557 — Accelerated depreciation 2,857 — 6,664 — Contract termination and other 76 — 217 2,121 Total restructuring charges $ 23,373 $ 1,033 $ 45,830 $ 5,378 Restructuring costs by business segment are as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Outdoor $ 1,845 $ 515 $ 6,595 $ 4,730 Active 293 447 663 467 Work 18,378 71 18,807 181 Corporate and other 2,857 — 19,765 — Total $ 23,373 $ 1,033 $ 45,830 $ 5,378 The activity in the restructuring accrual for the six-month period ended September 2020 was as follows: (In thousands) Severance Other Total Accrual at March 2020 $ 38,052 $ 2,888 $ 40,940 Charges 28,392 217 28,609 Cash payments (20,490) (1,368) (21,858) Adjustments to accruals (50) 189 139 Impact of foreign currency (561) 76 (485) Accrual at September 2020 $ 45,343 $ 2,002 $ 47,345 |
CONTINCENCIES
CONTINCENCIES | 6 Months Ended |
Sep. 26, 2020 | |
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 $170 million. Further, this timing matter is impacted by the Tax Cuts and Jobs Act that reduced the U.S. corporate income tax rate from 35% to 21%. If the IRS is successful, this rate differential would increase tax expense by approximately $136 million. The Company is currently involved in other legal proceedings that are ordinary, routine litigation incidental to the business. The resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company's financial position, results of operations or cash flows. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Sep. 26, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTS On October 13, 2020, VF’s Board of Directors declared a quarterly cash dividend of $0.49 per share, payable on December 21, 2020 to stockholders of record on December 10, 2020. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Sep. 26, 2020 | |
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 29, 2020 through April 3, 2021 ("Fiscal 2021"). Accordingly, this Form 10-Q presents our second quarter of Fiscal 2021. For presentation purposes herein, all references to periods ended September 2020 and September 2019 relate to the fiscal periods ended on September 26, 2020 and September 28, 2019, respectively. References to March 2020 relate to information as of March 28, 2020. On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap ® , VF Solutions ® , Bulwark ® , Workrite ® , Walls ® , Terra ® , Kodiak ® , Work Authority ® and Horace Small ® . The business also includes certain Dickies ® occupational workwear products that have historically been sold through the business-to-business channel. During the three months ended March 2020, the Company determined that the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria and expects to divest this business during Fiscal 2021. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets. These changes have been applied to all periods presented. 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 results for the Jeans business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. These changes have been applied to all periods presented. Certain prior year amounts have been reclassified to conform to the Fiscal 2021 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 2020 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 and six months ended September 2020 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2021. 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 28, 2020 (“Fiscal 2020 Form 10-K”). In preparing the condensed consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. The duration and severity of the novel coronavirus ("COVID-19") pandemic, which is subject to uncertainty, is having a significant impact on VF's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted 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. The guidance became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact on VF's consolidated financial statements. As a result of the adoption of this guidance, the following significant accounting policy from the Company’s Fiscal 2020 Form 10-K has been updated: Accounts Receivable Trade accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms, sales incentive programs and discounts. Royalty receivables are recorded at amounts earned based on the licensees' sales of licensed products, subject in some cases to contractual minimum royalties due from individual licensees. VF maintains an allowance for doubtful accounts for estimated losses that will result from the inability of customers and licensees to make required payments. The allowance is determined based on review of specific customer accounts where collection is doubtful, as well as an assessment of the collectability of total receivables, which are grouped based on similar risk characteristics, considering historical trends, adjusted for current economic conditions and reasonable and supportable forecasts when appropriate. The allowance represents the current estimate of lifetime expected credit losses for all outstanding accounts receivable and reflects the Company's ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses and future expectations. Receivables are written off against the allowance when it is determined that the amounts will not be recovered. 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 became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact 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 became effective for VF in the first quarter of Fiscal 2021, but did not have a material impact on VF's consolidated financial statements. Recently Issued Accounting Standards 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 annual disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021, but the Company does not expect the adoption of this guidance to have a material impact on VF's disclosures. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" , an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance will be effective for VF in the first quarter of the year ending April 2, 2022 ("Fiscal 2022") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" , an update that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on VF's consolidated financial statements. |
Fair Value Measurement | Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
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) September 2020 March 2020 September 2019 Accounts receivable, net $ 1,606,479 $ 1,308,051 $ 1,881,374 Contract assets (a) 2,573 1,181 2,433 Contract liabilities (b) 44,010 37,498 39,346 (a) Included in the other current assets line item in the Consolidated Balance Sheets. (b) Included in the accrued liabilities line item in the Consolidated Balance Sheets. |
Disaggregation of Revenue | The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues were 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 September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 823,954 $ 664,868 $ 208,902 $ — $ 1,697,724 Direct-to-consumer 329,661 530,231 40,028 164 900,084 Royalty 792 5,103 4,621 — 10,516 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Geographic revenues United States $ 522,676 $ 586,377 $ 161,458 $ — $ 1,270,511 International 631,731 613,825 92,093 164 1,337,813 Total $ 1,154,407 $ 1,200,202 $ 253,551 $ 164 $ 2,608,324 Three Months Ended September 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,175,422 $ 709,770 $ 186,482 $ 15,172 $ 2,086,846 Direct-to-consumer 347,684 697,627 30,453 2,898 1,078,662 Royalty 2,831 6,237 5,182 — 14,250 Total $ 1,525,937 $ 1,413,634 $ 222,117 $ 18,070 $ 3,179,758 Geographic revenues United States $ 737,255 $ 711,541 $ 149,523 $ — $ 1,598,319 International 788,682 702,093 72,594 18,070 1,581,439 Total $ 1,525,937 $ 1,413,634 $ 222,117 $ 18,070 $ 3,179,758 Six Months Ended September 2020 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 982,460 $ 906,032 $ 326,506 $ 1,275 $ 2,216,273 Direct-to-consumer 509,675 854,432 80,643 208 1,444,958 Royalty 3,500 11,054 8,832 — 23,386 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Geographic revenues United States $ 675,153 $ 851,884 $ 276,090 $ — $ 1,803,127 International 820,482 919,634 139,891 1,483 1,881,490 Total $ 1,495,635 $ 1,771,518 $ 415,981 $ 1,483 $ 3,684,617 Six Months Ended September 2019 (In thousands) Outdoor Active Work Other Total Channel revenues Wholesale $ 1,517,178 $ 1,369,912 $ 350,762 $ 17,980 $ 3,255,832 Direct-to-consumer 614,026 1,263,514 63,972 6,352 1,947,864 Royalty 5,353 12,334 9,029 — 26,716 Total $ 2,136,557 $ 2,645,760 $ 423,763 $ 24,332 $ 5,230,412 Geographic revenues United States $ 1,040,307 $ 1,422,746 $ 292,154 $ — $ 2,755,207 International 1,096,250 1,223,014 131,609 24,332 2,475,205 Total $ 2,136,557 $ 2,645,760 $ 423,763 $ 24,332 $ 5,230,412 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table summarizes the major line items for the Occupational Workwear business and the Jeans business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Net revenues $ 162,310 $ 213,510 $ 287,643 $ 769,538 Cost of goods sold 113,147 140,990 214,617 483,944 Selling, general and administrative expenses 34,911 42,017 68,167 238,483 Interest income, net 180 559 473 592 Other income (expense), net 79 (41) 79 (664) Income from discontinued operations before income taxes 14,511 31,021 5,411 47,039 Income tax expense (benefit) (a) 1,035 7,397 (194) 39,467 Income from discontinued operations, net of tax $ 13,476 $ 23,624 $ 5,605 $ 7,572 (a) Income tax expense for the six months ended September 2019 includes additional tax expense on nondeductible transaction costs and uncertain tax positions related to the Jeans business. 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) September 2020 March 2020 September 2019 Cash and equivalents $ 26,846 $ 39,752 $ 37,693 Accounts receivable, net 82,520 83,650 94,780 Inventories 241,519 294,000 300,689 Other current assets 7,773 6,701 9,054 Property, plant and equipment, net 47,964 44,863 39,364 Intangible assets, net 54,471 54,471 61,902 Goodwill 43,530 43,530 49,630 Operating lease right-of-use assets 42,445 38,941 32,265 Other assets 5,609 5,231 4,496 Total assets of discontinued operations $ 552,677 $ 611,139 $ 629,873 Accounts payable $ 46,493 $ 63,380 $ 67,493 Accrued liabilities 32,322 29,699 32,836 Operating lease liabilities 34,688 35,867 30,907 Other liabilities 5,177 2,270 2,572 Deferred income tax liabilities (a) (4,324) (4,435) (10,250) Total liabilities of discontinued operations $ 114,356 $ 126,781 $ 123,558 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) September 2020 March 2020 September 2019 Finished products $ 1,358,593 $ 1,201,562 $ 1,500,803 Work-in-process 59,855 67,603 64,585 Raw materials 16,395 24,747 24,639 Total inventories $ 1,434,843 $ 1,293,912 $ 1,590,027 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | September 2020 March 2020 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 266,350 $ 142,442 $ 123,908 $ 137,017 License agreements 19 years Accelerated 7,766 5,216 2,550 2,548 Other 8 years Straight-line 8,296 5,936 2,360 2,909 Amortizable intangible assets, net 128,818 142,474 Indefinite-lived intangible assets: Trademarks and trade names 1,722,275 1,712,071 Intangible assets, net $ 1,851,093 $ 1,854,545 |
Indefinite Lived Intangible Assets | September 2020 March 2020 (In thousands) Weighted Amortization Cost Accumulated Net Net Amortizable intangible assets: Customer relationships 19 years Accelerated $ 266,350 $ 142,442 $ 123,908 $ 137,017 License agreements 19 years Accelerated 7,766 5,216 2,550 2,548 Other 8 years Straight-line 8,296 5,936 2,360 2,909 Amortizable intangible assets, net 128,818 142,474 Indefinite-lived intangible assets: Trademarks and trade names 1,722,275 1,712,071 Intangible assets, net $ 1,851,093 $ 1,854,545 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
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 2020 $ 653,433 $ 389,848 $ 112,738 $ 1,156,019 Currency translation 7,000 9,917 578 17,495 Balance, September 2020 $ 660,433 $ 399,765 $ 113,316 $ 1,173,514 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost, impairment and gain recognized from sale-leaseback transactions. Components of lease cost were as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Operating lease cost $ 106,679 $ 107,023 $ 215,531 $ 206,611 Other lease costs 19,572 31,202 34,570 49,106 Total lease cost $ 126,251 $ 138,225 $ 250,101 $ 255,717 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | In April 2020, VF issued senior unsecured notes, as outlined in the table below: (Dollars in thousands) Scheduled Maturity Aggregate Principal Effective Annual Interest Rate Interest Payments 2.050% notes, due 2022 $ 1,000,000 2.277 % Semiannually 2.400% notes, due 2025 750,000 2.603 % Semiannually 2.800% notes, due 2027 500,000 2.953 % Semiannually 2.950% notes, due 2030 750,000 3.071 % Semiannually Total Issuance $ 3,000,000 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Retirement Benefits [Abstract] | |
Components of Pension Cost | The components of pension cost (income) for VF’s defined benefit plans were as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Service cost – benefits earned during the period $ 3,783 $ 3,410 $ 7,415 $ 6,791 Interest cost on projected benefit obligations 11,981 14,743 23,929 29,504 Expected return on plan assets (20,571) (23,151) (41,110) (46,329) Settlement charges 572 519 572 519 Amortization of deferred amounts: Net deferred actuarial losses 2,898 4,014 5,761 8,033 Deferred prior service costs (credits) (17) 12 (34) 25 Net periodic pension cost (income) $ (1,354) $ (453) $ (3,467) $ (1,457) The amounts reported in these disclosures have not been segregated between continuing and discontinued operations. |
CAPITAL AND ACCUMULATED OTHER_2
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in Accumulated OCI | The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: (In thousands) September 2020 March 2020 September 2019 Foreign currency translation and other $ (700,137) $ (737,709) $ (715,286) Defined benefit pension plans (264,304) (262,472) (298,326) Derivative financial instruments 4,783 69,223 82,887 Accumulated other comprehensive income (loss) $ (959,658) $ (930,958) $ (930,725) The changes in accumulated OCI, net of related taxes, were as follows: Three Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2020 $ (685,236) $ (259,290) $ 46,985 $ (897,541) Other comprehensive income (loss) before reclassifications (14,901) (7,629) (32,534) (55,064) Amounts reclassified from accumulated other comprehensive income (loss) — 2,615 (9,668) (7,053) Net other comprehensive income (loss) (14,901) (5,014) (42,202) (62,117) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Three Months Ended September 2019 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2019 $ (635,901) $ (290,468) $ 58,983 $ (867,386) Other comprehensive income (loss) before reclassifications (79,385) (10,896) 44,348 (45,933) Amounts reclassified from accumulated other comprehensive income (loss) — 3,038 (20,444) (17,406) Net other comprehensive income (loss) (79,385) (7,858) 23,904 (63,339) Balance, September 2019 $ (715,286) $ (298,326) $ 82,887 $ (930,725) Six Months Ended September 2020 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2020 $ (737,709) $ (262,472) $ 69,223 $ (930,958) Other comprehensive income (loss) before reclassifications (4,792) (6,642) (38,599) (50,033) Amounts reclassified from accumulated other comprehensive income (loss) 42,364 4,810 (25,841) 21,333 Net other comprehensive income (loss) 37,572 (1,832) (64,440) (28,700) Balance, September 2020 $ (700,137) $ (264,304) $ 4,783 $ (959,658) Six Months Ended September 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 (63,613) (11,719) 55,248 (20,084) Amounts reclassified from accumulated other comprehensive income (loss) — 6,185 (28,183) (21,998) Spin-off of Jeans Business 83,094 794 (8,595) 75,293 Net other comprehensive income (loss) 10,393 (55,142) 16,099 (28,650) Balance, September 2019 $ (715,286) $ (298,326) $ 82,887 $ (930,725) Reclassifications out of accumulated OCI were as follows: |
Reclassifications Out of Accumulated OCI | (In thousands) Three Months Ended September Six Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 2020 2019 Losses on foreign currency translation and other: Liquidation of foreign entities Other income (expense), net $ — $ — $ (42,364) $ — Total before tax — — (42,364) — Tax (expense) benefit — — — — Net of tax — — (42,364) — Amortization of defined benefit pension plans: Net deferred actuarial losses Other income (expense), net (2,898) (4,014) (5,761) (8,033) Deferred prior service (costs) credits Other income (expense), net 17 (12) 34 (25) Pension settlement charges Other income (expense), net (572) (519) (572) (519) Total before tax (3,453) (4,545) (6,299) (8,577) Tax benefit 838 1,507 1,489 2,392 Net of tax (2,615) (3,038) (4,810) (6,185) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net revenues 2,135 (2,814) 2,306 (5,719) Foreign exchange contracts Cost of goods sold 8,443 22,727 25,148 33,832 Foreign exchange contracts Selling, general and administrative expenses 741 1,382 2,348 2,098 Foreign exchange contracts Other income (expense), net 33 3,696 1,803 6,568 Interest rate contracts Interest expense 27 (1,303) 54 (2,596) Total before tax 11,379 23,688 31,659 34,183 Tax expense (1,711) (3,244) (5,818) (6,000) Net of tax 9,668 20,444 25,841 28,183 Total reclassifications for the period, net of tax $ 7,053 $ 17,406 $ (21,333) $ 21,998 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted | The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows: Six Months Ended September 2020 Expected volatility 28% to 48% Weighted average expected volatility 37% Expected term (in years) 6.2 to 8.0 Weighted average dividend yield 2.4% Risk-free interest rate 0.1% to 0.7% Weighted average fair value at date of grant $15.78 |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF's reportable segments was as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Segment revenues: Outdoor $ 1,154,407 $ 1,525,937 $ 1,495,635 $ 2,136,557 Active 1,200,202 1,413,634 1,771,518 2,645,760 Work 253,551 222,117 415,981 423,763 Other 164 18,070 1,483 24,332 Total segment revenues $ 2,608,324 $ 3,179,758 $ 3,684,617 $ 5,230,412 Segment profit (loss): Outdoor $ 132,475 $ 256,382 $ (28,236) $ 176,112 Active 259,123 388,200 266,259 695,766 Work 8,173 14,547 (3,228) 30,018 Other (2,526) 2,381 (4,887) 765 Total segment profit 397,245 661,510 229,908 902,661 Corporate and other expenses (a) (72,653) (114,719) (190,312) (254,351) Interest expense, net (30,931) (16,386) (58,880) (31,969) Income (loss) from continuing operations before income taxes $ 293,661 $ 530,405 $ (19,284) $ 616,341 (a) Certain corporate overhead and other costs of $6.2 million and $12.3 million for the three and six-month period ended September 2019, respectively, previously allocated to the Work segment have been reallocated to continuing operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended September Six Months Ended September (In thousands, except per share amounts) 2020 2019 2020 2019 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 243,246 $ 625,377 $ (34,496) $ 690,650 Weighted average common shares outstanding 389,219 397,751 388,957 397,239 Earnings (loss) per share from continuing operations $ 0.62 $ 1.57 $ (0.09) $ 1.74 Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 243,246 $ 625,377 $ (34,496) $ 690,650 Weighted average common shares outstanding 389,219 397,751 388,957 397,239 Incremental shares from stock options and other dilutive securities 1,961 4,510 2,029 4,849 Adjusted weighted average common shares outstanding 391,180 402,261 390,986 402,088 Earnings (loss) per share from continuing operations $ 0.62 $ 1.55 $ (0.09) $ 1.72 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 September 2020 Financial assets: Cash equivalents: Money market funds $ 948,543 $ 948,543 $ — $ — Time deposits 11,872 11,872 — — Short-term investments: Managed income fund 600,000 600,000 — — Time deposits 200,000 200,000 — — Derivative financial instruments 33,176 — 33,176 — Deferred compensation 122,956 122,956 — — Financial liabilities: Derivative financial instruments 32,318 — 32,318 — Deferred compensation 132,094 — 132,094 — Total Fair Value Fair Value Measurement Using (a) (In thousands) Level 1 Level 2 Level 3 March 2020 Financial assets: Cash equivalents: Money market funds $ 1,211,887 $ 1,211,887 $ — $ — Time deposits 1,932 1,932 — — Derivative financial instruments 91,834 — 91,834 — Deferred compensation 105,706 105,706 — — Financial liabilities: Derivative financial instruments 14,531 — 14,531 — Deferred compensation 113,289 — 113,289 — (a) There were no transfers among the levels within the fair value hierarchy during the six months ended September 2020 or the year ended March 2020. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Derivatives on Individual Contract Basis | The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives (In thousands) September 2020 March 2020 September 2019 September 2020 March 2020 September 2019 Foreign currency exchange contracts designated as hedging instruments $ 28,676 $ 78,298 $ 82,756 $ (31,157) $ (12,682) $ (10,944) Foreign currency exchange contracts not designated as hedging instruments 4,500 13,536 7,706 (1,161) (1,849) (1,408) Total derivatives $ 33,176 $ 91,834 $ 90,462 $ (32,318) $ (14,531) $ (12,352) |
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: September 2020 March 2020 September 2019 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 33,176 $ (32,318) $ 91,834 $ (14,531) $ 90,462 $ (12,352) Gross amounts not offset in the Consolidated Balance Sheets (23,491) 23,491 (14,393) 14,393 (12,283) 12,283 Net amounts $ 9,685 $ (8,827) $ 77,441 $ (138) $ 78,179 $ (69) |
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: September 2020 March 2020 September 2019 (In thousands) Derivative Derivative Derivative Derivative Derivative Derivative Gross amounts presented in the Consolidated Balance Sheets $ 33,176 $ (32,318) $ 91,834 $ (14,531) $ 90,462 $ (12,352) Gross amounts not offset in the Consolidated Balance Sheets (23,491) 23,491 (14,393) 14,393 (12,283) 12,283 Net amounts $ 9,685 $ (8,827) $ 77,441 $ (138) $ 78,179 $ (69) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows: (In thousands) September 2020 March 2020 September 2019 Other current assets $ 27,615 $ 71,784 $ 81,279 Accrued liabilities (22,946) (11,378) (10,106) Other assets 5,561 20,050 9,183 Other liabilities (9,372) (3,153) (2,246) |
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The effects of cash flow hedging included in VF’s Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) are summarized as follows: (In thousands) Gain (Loss) on Derivatives Recognized in OCI Three Months Ended September Gain (Loss) on Derivatives Recognized in OCI Six Months Ended September Cash Flow Hedging Relationships 2020 2019 2020 2019 Foreign currency exchange $ (39,731) $ 51,396 $ (47,326) $ 66,170 (In thousands) Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income (Loss) Six Months Ended September Location of Gain (Loss) 2020 2019 2020 2019 Net revenues $ 2,135 $ (2,814) $ 2,306 $ (5,719) Cost of goods sold 8,443 22,727 25,148 33,832 Selling, general and administrative expenses 741 1,382 2,348 2,098 Other income (expense), net 33 3,696 1,803 6,568 Interest expense 27 (1,303) 54 (2,596) Total $ 11,379 $ 23,688 $ 31,659 $ 34,183 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Sep. 26, 2020 | |
Restructuring and Related Activities [Abstract] | |
Activity in Restructuring | The components of the restructuring charges are as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Severance and employee-related benefits $ 9,883 $ 1,033 $ 28,392 $ 3,257 Asset impairments 10,557 — 10,557 — Accelerated depreciation 2,857 — 6,664 — Contract termination and other 76 — 217 2,121 Total restructuring charges $ 23,373 $ 1,033 $ 45,830 $ 5,378 Restructuring costs by business segment are as follows: Three Months Ended September Six Months Ended September (In thousands) 2020 2019 2020 2019 Outdoor $ 1,845 $ 515 $ 6,595 $ 4,730 Active 293 447 663 467 Work 18,378 71 18,807 181 Corporate and other 2,857 — 19,765 — Total $ 23,373 $ 1,033 $ 45,830 $ 5,378 The activity in the restructuring accrual for the six-month period ended September 2020 was as follows: (In thousands) Severance Other Total Accrual at March 2020 $ 38,052 $ 2,888 $ 40,940 Charges 28,392 217 28,609 Cash payments (20,490) (1,368) (21,858) Adjustments to accruals (50) 189 139 Impact of foreign currency (561) 76 (485) Accrual at September 2020 $ 45,343 $ 2,002 $ 47,345 |
REVENUES - Contract Assets and
REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 1,606,479 | $ 1,308,051 | $ 1,881,374 |
Contract assets | 2,573 | 1,181 | 2,433 |
Contract liabilities | $ 44,010 | $ 37,498 | $ 39,346 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 26, 2020 | Sep. 26, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability, revenue recognized | $ 85.1 | $ 120.7 |
REVENUES - Additional Informa_2
REVENUES - Additional Information, Remaining Performance Obligation (Details) $ in Millions | Sep. 26, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 55.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 9.1 |
Expected timing of satisfaction | 6 months |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 2,608,324 | $ 3,179,758 | $ 3,684,617 | $ 5,230,412 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,270,511 | 1,598,319 | 1,803,127 | 2,755,207 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,337,813 | 1,581,439 | 1,881,490 | 2,475,205 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,697,724 | 2,086,846 | 2,216,273 | 3,255,832 |
Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 900,084 | 1,078,662 | 1,444,958 | 1,947,864 |
Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 10,516 | 14,250 | 23,386 | 26,716 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,608,324 | 3,179,758 | 3,684,617 | 5,230,412 |
Operating Segments | Outdoor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,154,407 | 1,525,937 | 1,495,635 | 2,136,557 |
Operating Segments | Outdoor | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 522,676 | 737,255 | 675,153 | 1,040,307 |
Operating Segments | Outdoor | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 631,731 | 788,682 | 820,482 | 1,096,250 |
Operating Segments | Outdoor | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 823,954 | 1,175,422 | 982,460 | 1,517,178 |
Operating Segments | Outdoor | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 329,661 | 347,684 | 509,675 | 614,026 |
Operating Segments | Outdoor | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 792 | 2,831 | 3,500 | 5,353 |
Operating Segments | Active | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,200,202 | 1,413,634 | 1,771,518 | 2,645,760 |
Operating Segments | Active | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 586,377 | 711,541 | 851,884 | 1,422,746 |
Operating Segments | Active | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 613,825 | 702,093 | 919,634 | 1,223,014 |
Operating Segments | Active | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 664,868 | 709,770 | 906,032 | 1,369,912 |
Operating Segments | Active | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 530,231 | 697,627 | 854,432 | 1,263,514 |
Operating Segments | Active | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 5,103 | 6,237 | 11,054 | 12,334 |
Operating Segments | Work | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 253,551 | 222,117 | 415,981 | 423,763 |
Operating Segments | Work | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 161,458 | 149,523 | 276,090 | 292,154 |
Operating Segments | Work | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 92,093 | 72,594 | 139,891 | 131,609 |
Operating Segments | Work | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 208,902 | 186,482 | 326,506 | 350,762 |
Operating Segments | Work | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40,028 | 30,453 | 80,643 | 63,972 |
Operating Segments | Work | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 4,621 | 5,182 | 8,832 | 9,029 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 164 | 18,070 | 1,483 | 24,332 |
Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Other | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 164 | 18,070 | 1,483 | 24,332 |
Other | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 15,172 | 1,275 | 17,980 |
Other | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 164 | 2,898 | 208 | 6,352 |
Other | Royalty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 0 | $ 0 | $ 0 | $ 0 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) | May 22, 2019USD ($) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Apr. 30, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income (loss) from discontinued operations, net of tax | $ 13,476,000 | $ 23,624,000 | $ 5,605,000 | $ 7,572,000 | ||
Stock ratio | 0.1428571429 | |||||
Credit facility amount outstanding | $ 2,250,000,000 | |||||
Cash Transferred | 126,800,000 | |||||
Spin-off of Jeans Business | 54,915,000 | |||||
Restructuring expense | 28,609,000 | |||||
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] | ||||||
Income (loss) from discontinued operations, net of tax | (48,000,000) | |||||
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 | Occupational Workwear Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income (loss) from discontinued operations, net of tax | $ 13,476,000 | $ 23,624,000 | $ 5,605,000 | 55,600,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Kontoor Brands | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Support services period (up to) | 24 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 - Summa
DISCONTINUED OPERATIONS - Summary of Major Line Items included in Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 13,476 | $ 23,624 | $ 5,605 | $ 7,572 |
Kontoor Brands and Occupational Workwear | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 769,538 | |||
Cost of goods sold | 483,944 | |||
Selling, general and administrative expenses | 238,483 | |||
Interest income, net | 592 | |||
Other income (expense), net | (664) | |||
Income from discontinued operations before income taxes | 47,039 | |||
Income tax expense (benefit) | 39,467 | |||
Income from discontinued operations, net of tax | 7,572 | |||
Occupational Workwear Business | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 162,310 | 213,510 | 287,643 | |
Cost of goods sold | 113,147 | 140,990 | 214,617 | |
Selling, general and administrative expenses | 34,911 | 42,017 | 68,167 | |
Interest income, net | 180 | 559 | 473 | |
Other income (expense), net | 79 | (41) | 79 | |
Income from discontinued operations before income taxes | 14,511 | 31,021 | 5,411 | |
Income tax expense (benefit) | 1,035 | 7,397 | (194) | |
Income from discontinued operations, net of tax | $ 13,476 | $ 23,624 | $ 5,605 | $ 55,600 |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summary of Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other assets | $ 0 | $ 0 | $ 187,657 |
Occupational Workwear Business | Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and equivalents | 26,846 | 39,752 | 37,693 |
Accounts receivable, net | 82,520 | 83,650 | 94,780 |
Inventories | 241,519 | 294,000 | 300,689 |
Other current assets | 7,773 | 6,701 | 9,054 |
Property, plant and equipment, net | 47,964 | 44,863 | 39,364 |
Intangible assets, net | 54,471 | 54,471 | 61,902 |
Goodwill | 43,530 | 43,530 | 49,630 |
Operating lease right-of-use assets | 42,445 | 38,941 | 32,265 |
Other assets | 5,609 | 5,231 | 4,496 |
Total assets of discontinued operations | 552,677 | 611,139 | 629,873 |
Accounts payable | 46,493 | 63,380 | 67,493 |
Accrued liabilities | 32,322 | 29,699 | 32,836 |
Operating lease liabilities | 34,688 | 35,867 | 30,907 |
Other liabilities | 5,177 | 2,270 | 2,572 |
Deferred income tax liabilities | (4,324) | (4,435) | (10,250) |
Total liabilities of discontinued operations | $ 114,356 | $ 126,781 | $ 123,558 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 1,358,593 | $ 1,201,562 | $ 1,500,803 |
Work-in-process | 59,855 | 67,603 | 64,585 |
Raw materials | 16,395 | 24,747 | 24,639 |
Total inventories | $ 1,434,843 | $ 1,293,912 | $ 1,590,027 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | |
Amortizable intangible assets: | |||
Net Carrying Amount | $ 128,818 | $ 142,474 | |
Indefinite-lived intangible assets: | |||
Trademarks and trade names | 1,722,275 | 1,712,071 | |
Intangible assets, net | $ 1,851,093 | 1,854,545 | $ 1,857,868 |
Customer relationships | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 19 years | ||
Cost | $ 266,350 | ||
Accumulated Amortization | 142,442 | ||
Net Carrying Amount | $ 123,908 | 137,017 | |
License agreements | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 19 years | ||
Cost | $ 7,766 | ||
Accumulated Amortization | 5,216 | ||
Net Carrying Amount | $ 2,550 | 2,548 | |
Other | |||
Amortizable intangible assets: | |||
Weighted Average Amortization Period | 8 years | ||
Cost | $ 8,296 | ||
Accumulated Amortization | 5,936 | ||
Net Carrying Amount | $ 2,360 | $ 2,909 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 26, 2020USD ($) | Sep. 26, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 4.5 | $ 8.9 |
Estimated amortization expense, 2021 | 16.8 | 16.8 |
Estimated amortization expense, 2022 | 15.2 | 15.2 |
Estimated amortization expense, 2023 | 14.1 | 14.1 |
Estimated amortization expense, 2024 | 13.6 | 13.6 |
Estimated amortization expense, 2025 | $ 13.1 | $ 13.1 |
GOODWILL - Changes in Goodwill
GOODWILL - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Sep. 26, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,156,019 |
Currency translation | 17,495 |
Goodwill, ending balance | 1,173,514 |
Outdoor | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 653,433 |
Currency translation | 7,000 |
Goodwill, ending balance | 660,433 |
Active | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 389,848 |
Currency translation | 9,917 |
Goodwill, ending balance | 399,765 |
Work | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 112,738 |
Currency translation | 578 |
Goodwill, ending balance | $ 113,316 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - USD ($) | 6 Months Ended | |
Sep. 26, 2020 | Mar. 28, 2020 | |
Goodwill [Line Items] | ||
Impairment charge | $ 0 | |
Outdoor | ||
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 323,200,000 | $ 323,200,000 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 106,679 | $ 107,023 | $ 215,531 | $ 206,611 |
Other lease costs | 19,572 | 31,202 | 34,570 | 49,106 |
Total lease cost | $ 126,251 | $ 138,225 | $ 250,101 | $ 255,717 |
LEASES - Cash Flow Information
LEASES - Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows – operating leases | $ 176,100 | $ 209,500 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 326,300 | $ 225,300 |
SHORT-TERM BORROWINGS AND LON_3
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Additional Information (Detail) - USD ($) | Apr. 01, 2020 | Mar. 31, 2020 | Sep. 26, 2020 | Apr. 30, 2020 |
Line of Credit Facility [Line Items] | ||||
Credit facility amount outstanding | $ 2,250,000,000 | |||
Ratio of consolidated indebtedness to consolidated capitalization maximum | 70.00% | 60.00% | ||
Covenant liquidity threshold | $ 750,000,000 | |||
Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 2,980,000,000 |
SHORT-TERM BORROWINGS AND LON_4
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Senior Notes Issuance (Details) - Senior Notes | Apr. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Aggregate Principal | $ 3,000,000,000 |
notes, due 2022 | |
Line of Credit Facility [Line Items] | |
Interest Rate | 2.05% |
Aggregate Principal | $ 1,000,000,000 |
Effective Annual Interest Rate | 2.277% |
notes, due 2025 | |
Line of Credit Facility [Line Items] | |
Interest Rate | 2.40% |
Aggregate Principal | $ 750,000,000 |
Effective Annual Interest Rate | 2.603% |
notes, due 2027 | |
Line of Credit Facility [Line Items] | |
Interest Rate | 2.80% |
Aggregate Principal | $ 500,000,000 |
Effective Annual Interest Rate | 2.953% |
notes, due 2030 | |
Line of Credit Facility [Line Items] | |
Interest Rate | 2.95% |
Aggregate Principal | $ 750,000,000 |
Effective Annual Interest Rate | 3.071% |
PENSION PLANS - Components of P
PENSION PLANS - Components of Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Retirement Benefits [Abstract] | ||||
Service cost – benefits earned during the period | $ 3,783 | $ 3,410 | $ 7,415 | $ 6,791 |
Interest cost on projected benefit obligations | 11,981 | 14,743 | 23,929 | 29,504 |
Expected return on plan assets | (20,571) | (23,151) | (41,110) | (46,329) |
Settlement charges | 572 | 519 | 572 | 519 |
Amortization of deferred amounts: | ||||
Net deferred actuarial losses | 2,898 | 4,014 | 5,761 | 8,033 |
Deferred prior service costs (credits) | (17) | 12 | (34) | 25 |
Net periodic pension cost (income) | $ (1,354) | $ (453) | $ (3,467) | $ (1,457) |
PENSION PLANS - Additional Info
PENSION PLANS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Retirement Benefits [Abstract] | ||||
Defined benefit pension plan contributed | $ 4,500 | |||
Defined benefit pension plan additional contributions to make next fiscal year | $ 13,900 | 13,900 | ||
Settlement charges | $ 572 | $ 519 | $ 572 | $ 519 |
Discount rate | 2.87% |
CAPITAL AND ACCUMULATED OTHER_3
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | |
Equity [Abstract] | ||||
Purchases of treasury stock (in shares) | 0 | |||
Treasury shares (in shares) | 0 | 0 | 0 | 0 |
Common Stock (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
Amortization of intangible assets | $ 4.5 | $ 8.9 |
CAPITAL AND ACCUMULATED OTHER_4
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | $ 2,945,238 | $ 2,912,598 | $ 3,357,334 | $ 4,647,619 | $ 4,151,614 | $ 4,298,516 |
Foreign Currency Translation and Other | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | (700,137) | (685,236) | (737,709) | (715,286) | (635,901) | (725,679) |
Defined Benefit Pension Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | (264,304) | (259,290) | (262,472) | (298,326) | (290,468) | (243,184) |
Derivative financial instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | 4,783 | 46,985 | 69,223 | 82,887 | 58,983 | 66,788 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total stockholders’ equity | $ (959,658) | $ (897,541) | $ (930,958) | $ (930,725) | $ (867,386) | $ (902,075) |
CAPITAL AND ACCUMULATED OTHER_5
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated OCI, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 2,912,598 | $ 4,151,614 | $ 3,357,334 | $ 4,298,516 |
Other comprehensive income (loss) before reclassifications | (55,064) | (45,933) | (50,033) | (20,084) |
Amounts reclassified from accumulated other comprehensive income (loss) | (7,053) | (17,406) | 21,333 | (21,998) |
Spin-off of Jeans Business | (54,915) | |||
Other comprehensive income (loss) | (62,117) | (63,339) | (28,700) | (42,082) |
Balance | 2,945,238 | 4,647,619 | $ 2,945,238 | 4,647,619 |
Adoption of new accounting standard, ASU 2018-02 | us-gaap:AccountingStandardsUpdate201802Member | |||
Foreign Currency Translation and Other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (685,236) | (635,901) | $ (737,709) | (725,679) |
Other comprehensive income (loss) before reclassifications | (14,901) | (79,385) | (4,792) | (63,613) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 42,364 | 0 |
Spin-off of Jeans Business | 83,094 | |||
Other comprehensive income (loss) | (14,901) | (79,385) | 37,572 | 10,393 |
Balance | (700,137) | (715,286) | (700,137) | (715,286) |
Foreign Currency Translation and Other | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (9,088) | |||
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (259,290) | (290,468) | (262,472) | (243,184) |
Other comprehensive income (loss) before reclassifications | (7,629) | (10,896) | (6,642) | (11,719) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,615 | 3,038 | 4,810 | 6,185 |
Spin-off of Jeans Business | 794 | |||
Other comprehensive income (loss) | (5,014) | (7,858) | (1,832) | (55,142) |
Balance | (264,304) | (298,326) | (264,304) | (298,326) |
Defined Benefit Pension Plans | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (50,402) | |||
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 46,985 | 58,983 | 69,223 | 66,788 |
Other comprehensive income (loss) before reclassifications | (32,534) | 44,348 | (38,599) | 55,248 |
Amounts reclassified from accumulated other comprehensive income (loss) | (9,668) | (20,444) | (25,841) | (28,183) |
Spin-off of Jeans Business | (8,595) | |||
Other comprehensive income (loss) | (42,202) | 23,904 | (64,440) | 16,099 |
Balance | 4,783 | 82,887 | 4,783 | 82,887 |
Derivative Financial Instruments | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (2,371) | |||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (897,541) | (867,386) | (930,958) | (902,075) |
Spin-off of Jeans Business | 75,293 | |||
Other comprehensive income (loss) | (62,117) | (63,339) | (28,700) | (28,650) |
Balance | $ (959,658) | $ (930,725) | $ (959,658) | (930,725) |
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ (61,861) |
CAPITAL AND ACCUMULATED OTHER_6
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification Out of Accumulated OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | $ 4,644 | $ (1,771) | $ (33,543) | $ 3,783 |
Total before tax | 293,661 | 530,405 | (19,284) | 616,341 |
Tax expense | (50,415) | 94,972 | (15,212) | 74,309 |
Income (loss) from continuing operations | 243,246 | 625,377 | (34,496) | 690,650 |
Net revenues | 2,608,324 | 3,179,758 | 3,684,617 | 5,230,412 |
Cost of goods sold | (1,282,406) | (1,456,317) | (1,789,357) | (2,352,601) |
Selling, general and administrative expenses | (1,005,970) | (1,174,879) | (1,822,121) | (2,233,284) |
Interest expense | (34,107) | (20,810) | (63,369) | (42,937) |
Total reclassifications for the period, net of tax | 7,053 | 17,406 | (21,333) | 21,998 |
Foreign Currency Translation and Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | 0 | 0 | (42,364) | 0 |
Total before tax | 0 | 0 | (42,364) | 0 |
Tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 0 | 0 | (42,364) | 0 |
Total reclassifications for the period, net of tax | 0 | 0 | (42,364) | 0 |
Defined Benefit Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (2,615) | (3,038) | (4,810) | (6,185) |
Gains (losses) on derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 9,668 | 20,444 | 25,841 | 28,183 |
Reclassification out of Accumulated Other Comprehensive Income | Net deferred actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (2,898) | (4,014) | (5,761) | (8,033) |
Reclassification out of Accumulated Other Comprehensive Income | Deferred prior service (costs) credits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | 17 | (12) | 34 | (25) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (572) | (519) | (572) | (519) |
Total before tax | (3,453) | (4,545) | (6,299) | (8,577) |
Tax expense | 838 | 1,507 | 1,489 | 2,392 |
Income (loss) from continuing operations | (2,615) | (3,038) | (4,810) | (6,185) |
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 | 11,379 | 23,688 | 31,659 | 34,183 |
Tax expense | (1,711) | (3,244) | (5,818) | (6,000) |
Income (loss) from continuing operations | 9,668 | 20,444 | 25,841 | 28,183 |
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 | 33 | 3,696 | 1,803 | 6,568 |
Net revenues | 2,135 | (2,814) | 2,306 | (5,719) |
Cost of goods sold | 8,443 | 22,727 | 25,148 | 33,832 |
Selling, general and administrative expenses | 741 | 1,382 | 2,348 | 2,098 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on derivative financial instruments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 27 | $ (1,303) | $ 54 | $ (2,596) |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Sep. 26, 2020$ / sharesshares | Sep. 26, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted in period (in shares) | 1,683,840 | |
Exercise price of options granted (in USD per share) | $ / shares | $ 55.75 | |
Share based compensation vesting period | 3 years | |
Period of time options become exercisable | 1 year | |
Expiration period | 10 years | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted in period (in shares) | 397,782 | |
Performance period | 3 years | |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 60.11 | |
Percentage, revenue growth | 50.00% | |
Percentage, TSR | 50.00% | |
Percentage adjustments in period | 25.00% | |
Performance-Based Restricted Stock Units | Valuation Technique, Option Pricing Model | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 81.60 | |
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 | 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 | 2 |
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) | 80,742 | |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 57.17 | |
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) | 16,775 | |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 55.74 | |
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 | |
Restricted stock units granted in period (in shares) | 27,000 | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | 1 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 58.11 | |
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) | 267,642 | |
Ratio of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | 1 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 55.76 | |
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 (percent) | 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 (percent) | 50.00% |
STOCK-BASED COMPENSATION - Assu
STOCK-BASED COMPENSATION - Assumptions Used and Resulting Weighted Average Fair Value of Stock Option Granted (Details) | 6 Months Ended |
Sep. 26, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 28.00% |
Expected volatility, maximum | 48.00% |
Weighted average expected volatility | 37.00% |
Weighted average dividend yield | 2.40% |
Risk-free interest rate, minimum | 0.10% |
Risk-free interest rate, maximum | 0.70% |
Weighted average fair value at date of grant (in USD per share) | $ 15.78 |
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) | 8 years |
INCOME TAXES (Details)
INCOME TAXES (Details) € in Millions, $ in Millions | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Jan. 10, 2017EUR (€) |
Income Tax Contingency [Line Items] | |||||||
Effective income tax rate | (78.90%) | (12.10%) | |||||
Net discrete tax expense (benefit) | $ 3.9 | $ 177.4 | |||||
Realization of unrecognized net tax benefit (expense) | 2 | $ 6.9 | |||||
Foreign earnings expense | $ 1.8 | ||||||
Effective tax rate, excluding discrete items | (58.90%) | 16.70% | |||||
Effective tax rate, excluding discrete items, Increase (decrease) from prior period | (75.60%) | ||||||
Tax benefit from share-based compensation | $ 6.4 | ||||||
Benefit from tax reform | $ 164.4 | ||||||
Decrease in unrecognized tax benefits and associated interest | 3.7 | ||||||
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 168.8 | ||||||
Decrease in unrecognized income tax benefits | 16.2 | ||||||
Increase (decrease) in income tax expenses | $ 8.8 | ||||||
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 | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total segment revenues | $ 2,608,324 | $ 3,179,758 | $ 3,684,617 | $ 5,230,412 |
Operating income | 319,948 | 548,562 | 73,139 | 644,527 |
Income (loss) from continuing operations before income taxes | 293,661 | 530,405 | (19,284) | 616,341 |
Certain corporate overhead costs allocated to selling, general, and administrative expense | 6,200 | 12,300 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 2,608,324 | 3,179,758 | 3,684,617 | 5,230,412 |
Operating income | 397,245 | 661,510 | 229,908 | 902,661 |
Operating Segments | Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 1,154,407 | 1,525,937 | 1,495,635 | 2,136,557 |
Operating income | 132,475 | 256,382 | (28,236) | 176,112 |
Operating Segments | Active | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 1,200,202 | 1,413,634 | 1,771,518 | 2,645,760 |
Operating income | 259,123 | 388,200 | 266,259 | 695,766 |
Operating Segments | Work | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 253,551 | 222,117 | 415,981 | 423,763 |
Operating income | 8,173 | 14,547 | (3,228) | 30,018 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 164 | 18,070 | 1,483 | 24,332 |
Operating income | (2,526) | 2,381 | (4,887) | 765 |
Interest expense, net | (30,931) | (16,386) | (58,880) | (31,969) |
Corporate and other expenses | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and other expenses | $ (72,653) | $ (114,719) | $ (190,312) | $ (254,351) |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Earnings (loss) per share – basic: | ||||
Income (loss) from continuing operations | $ 243,246 | $ 625,377 | $ (34,496) | $ 690,650 |
Weighted average common shares outstanding | 389,219,000 | 397,751,000 | 388,957,000 | 397,239,000 |
Earnings per share from continuing operations (in USD per share) | $ 0.62 | $ 1.57 | $ (0.09) | $ 1.74 |
Earnings (loss) per share – diluted: | ||||
Income (loss) from continuing operations | $ 243,246 | $ 625,377 | $ (34,496) | $ 690,650 |
Weighted average common shares outstanding | 389,219,000 | 397,751,000 | 388,957,000 | 397,239,000 |
Incremental shares from stock options and other dilutive securities | 1,961,000 | 4,510,000 | 2,029,000 | 4,849,000 |
Adjusted weighted average common shares outstanding | 391,180,000 | 402,261,000 | 390,986,000 | 402,088,000 |
Earnings per share from continuing operations (in USD per share) | $ 0.62 | $ 1.55 | $ (0.09) | $ 1.72 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
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 | 5.4 | 1.5 | 5.4 | 1.5 |
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 | 0.8 | 0.6 | 0.8 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Financial assets: | |||
Derivative financial instruments | $ 33,176 | $ 91,834 | $ 90,462 |
Deferred compensation | 122,956 | 105,706 | |
Financial liabilities: | |||
Derivative financial instruments | 32,318 | 14,531 | $ 12,352 |
Deferred compensation | 132,094 | 113,289 | |
Level 1 | |||
Financial assets: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 122,956 | 105,706 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Derivative financial instruments | 33,176 | 91,834 | |
Deferred compensation | 0 | 0 | |
Financial liabilities: | |||
Derivative financial instruments | 32,318 | 14,531 | |
Deferred compensation | 132,094 | 113,289 | |
Level 3 | |||
Financial assets: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Financial liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Deferred compensation | 0 | 0 | |
Money market funds | |||
Financial assets: | |||
Cash equivalents | 948,543 | 1,211,887 | |
Money market funds | Level 1 | |||
Financial assets: | |||
Cash equivalents | 948,543 | 1,211,887 | |
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 | 11,872 | 1,932 | |
Short-term investments: | 200,000 | ||
Time deposits | Level 1 | |||
Financial assets: | |||
Cash equivalents | 11,872 | 1,932 | |
Short-term investments: | 200,000 | ||
Time deposits | Level 2 | |||
Financial assets: | |||
Cash equivalents | 0 | 0 | |
Short-term investments: | 0 | ||
Time deposits | Level 3 | |||
Financial assets: | |||
Cash equivalents | 0 | $ 0 | |
Short-term investments: | 0 | ||
Managed income fund | |||
Financial assets: | |||
Short-term investments: | 600,000 | ||
Managed income fund | Level 1 | |||
Financial assets: | |||
Short-term investments: | 600,000 | ||
Managed income fund | Level 2 | |||
Financial assets: | |||
Short-term investments: | 0 | ||
Managed income fund | Level 3 | |||
Financial assets: | |||
Short-term investments: | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | $ 5,680.6 | $ 2,609.3 | |
Fair Value | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 6,092.7 | 2,672.9 | |
Foreign currency exchange | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | $ 2,500 | $ 2,600 | $ 2,800 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020EUR (€) | Mar. 28, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative contract maturity (up to) | 20 months | |||||
Gain (loss) on derivative contracts not designated as hedges | $ (1.3) | $ 3.7 | ||||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | 8 | 8 | ||||
Foreign currency exchange | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 2,500 | $ 2,800 | 2,500 | $ 2,800 | $ 2,600 | |
Net Investment Hedge | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | € | € 1,850,000,000 | |||||
Gain (loss) on derivative used in net investment hedge | $ 53.5 | $ 26.3 | $ 71.6 | $ 17.6 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | $ 33,176 | $ 91,834 | $ 90,462 |
Fair Value of Derivatives with Unrealized Losses | (32,318) | (14,531) | (12,352) |
Foreign currency exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 28,676 | 78,298 | 82,756 |
Fair Value of Derivatives with Unrealized Losses | (31,157) | (12,682) | (10,944) |
Foreign currency exchange contracts not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 4,500 | 13,536 | 7,706 |
Fair Value of Derivatives with Unrealized Losses | $ (1,161) | $ (1,849) | $ (1,408) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Derivative Asset | |||
Gross amounts presented in the Consolidated Balance Sheets | $ 33,176 | $ 91,834 | $ 90,462 |
Gross amounts not offset in the Consolidated Balance Sheets | (23,491) | (14,393) | (12,283) |
Net amounts | 9,685 | 77,441 | 78,179 |
Derivative Liability | |||
Gross amounts presented in the Consolidated Balance Sheets | (32,318) | (14,531) | (12,352) |
Gross amounts not offset in the Consolidated Balance Sheets | 23,491 | 14,393 | 12,283 |
Net amounts | $ (8,827) | $ (138) | $ (69) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other current assets | $ 27,615 | $ 71,784 | $ 81,279 |
Accrued liabilities | (22,946) | (11,378) | (10,106) |
Other assets | 5,561 | 20,050 | 9,183 |
Other liabilities | $ (9,372) | $ (3,153) | $ (2,246) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains arising during the period | $ (39,731) | $ 51,396 | $ (47,326) | $ 66,170 |
Reclassification of net (gains) losses realized | 11,379 | 23,688 | 31,659 | 34,183 |
Foreign currency exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains arising during the period | (39,731) | 51,396 | (47,326) | 66,170 |
Foreign currency exchange | Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net (gains) losses realized | 2,135 | (2,814) | 2,306 | (5,719) |
Foreign currency exchange | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net (gains) losses realized | 8,443 | 22,727 | 25,148 | 33,832 |
Foreign currency exchange | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net (gains) losses realized | 741 | 1,382 | 2,348 | 2,098 |
Foreign currency exchange | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net (gains) losses realized | 33 | 3,696 | 1,803 | 6,568 |
Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification of net (gains) losses realized | $ 27 | $ (1,303) | $ 54 | $ (2,596) |
RESTRUCTURING - Additional Info
RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Mar. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 23,373 | $ 1,033 | $ 45,830 | $ 5,378 | |
Restructuring reserve | 47,345 | 47,345 | $ 40,940 | ||
Accrued Current Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 45,000 | 45,000 | |||
Other Noncurrent Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 2,300 | 2,300 | |||
Selling, General and Administrative Expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 20,200 | 28,700 | |||
Cost of goods sold | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 3,200 | $ 17,100 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and employee-related benefits | $ 9,883 | $ 1,033 | $ 28,392 | $ 3,257 |
Asset impairments | 10,557 | 0 | 10,557 | 0 |
Accelerated depreciation | 2,857 | 0 | 6,664 | 0 |
Contract termination and other | 76 | 0 | 217 | 2,121 |
Restructuring charges | $ 23,373 | $ 1,033 | $ 45,830 | $ 5,378 |
RESTRUCTURING - Restructuring_2
RESTRUCTURING - Restructuring costs by business segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 23,373 | $ 1,033 | $ 45,830 | $ 5,378 |
Operating Segments | Outdoor | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,845 | 515 | 6,595 | 4,730 |
Operating Segments | Active | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 293 | 447 | 663 | 467 |
Operating Segments | Work | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 18,378 | 71 | 18,807 | 181 |
Corporate and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,857 | $ 0 | $ 19,765 | $ 0 |
RESTRUCTURING - Activity in Res
RESTRUCTURING - Activity in Restructuring Accrual (Details) $ in Thousands | 6 Months Ended |
Sep. 26, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | $ 40,940 |
Charges | 28,609 |
Cash payments | (21,858) |
Adjustments to accruals | 139 |
Impact of foreign currency | (485) |
Amounts recorded in accrued liabilities. ending | 47,345 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 38,052 |
Charges | 28,392 |
Cash payments | (20,490) |
Adjustments to accruals | (50) |
Impact of foreign currency | (561) |
Amounts recorded in accrued liabilities. ending | 45,343 |
Other | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 2,888 |
Charges | 217 |
Cash payments | (1,368) |
Adjustments to accruals | 189 |
Impact of foreign currency | 76 |
Amounts recorded in accrued liabilities. ending | $ 2,002 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Sep. 26, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of possible loss interest payments | $ 170 |
Estimate of possible loss | $ 136 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Oct. 13, 2020$ / shares |
Subsequent Event | Dividend Declared | |
Subsequent Event [Line Items] | |
Cash dividend (in USD per share) | $ 0.49 |