false--03-28Q120200000103379V F CORP1913500019638000206710000.460.510.250.2512000000001200000000120000000039550913839682466239792212061900000P5YP7YP5Y111250000002500000025000000000P5Y6MP2YP4YP2YP4YP3Y0.270.240.0240.021P7Y7M6DP6Y2M12D00126800000P3Y0.1428571429 0000103379 2019-03-31 2019-06-29 0000103379 2019-07-27 0000103379 vfc:FixedRateZeroPointSixTwoFivePercentageNotesDueSeptemberTwoThousandTwentyThreeMember 2019-03-31 2019-06-29 0000103379 us-gaap:CommonStockMember 2019-03-31 2019-06-29 0000103379 2019-03-30 0000103379 2018-06-30 0000103379 2019-06-29 0000103379 2018-04-01 2018-06-30 0000103379 2018-03-31 0000103379 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000103379 us-gaap:RetainedEarningsMember 2019-06-29 0000103379 us-gaap:CommonStockMember 2018-06-30 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000103379 us-gaap:RetainedEarningsMember 2018-04-01 0000103379 us-gaap:CommonStockMember 2019-06-29 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000103379 us-gaap:AccountingStandardsUpdate201602Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000103379 us-gaap:CommonStockMember 2018-03-31 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-06-29 0000103379 us-gaap:RetainedEarningsMember 2019-03-31 2019-06-29 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-29 0000103379 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000103379 us-gaap:AdditionalPaidInCapitalMember 2019-06-29 0000103379 us-gaap:RetainedEarningsMember 2019-03-30 0000103379 us-gaap:AccountingStandardsUpdate201802Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000103379 us-gaap:CommonStockMember 2019-03-30 0000103379 us-gaap:AccountingStandardsUpdate201802Member 2019-03-31 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 0000103379 us-gaap:AccountingStandardsUpdate201802Member us-gaap:RetainedEarningsMember 2019-03-31 0000103379 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000103379 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-03-31 0000103379 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-06-29 0000103379 us-gaap:CommonStockMember 2019-03-31 2019-06-29 0000103379 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000103379 us-gaap:AccountingStandardsUpdate201602Member 2019-03-31 0000103379 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0000103379 us-gaap:RetainedEarningsMember 2018-06-30 0000103379 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000103379 us-gaap:RetainedEarningsMember 2018-03-31 0000103379 2018-04-01 0000103379 us-gaap:OperatingSegmentsMember vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember country:US 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelThroughIntermediaryMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:NonUsMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:RoyaltyMember 2018-04-01 2018-06-30 0000103379 us-gaap:SalesChannelDirectlyToConsumerMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:NonUsMember 2018-04-01 2018-06-30 0000103379 country:US 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:RoyaltyMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:SalesChannelThroughIntermediaryMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:ActiveMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:WorkMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:OutdoorMember 2018-04-01 2018-06-30 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelThroughIntermediaryMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:NonUsMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 country:US 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:RoyaltyMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 us-gaap:MaterialReconcilingItemsMember country:US 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember country:US vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:SalesChannelThroughIntermediaryMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:MaterialReconcilingItemsMember us-gaap:NonUsMember 2019-03-31 2019-06-29 0000103379 us-gaap:MaterialReconcilingItemsMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:RoyaltyMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember vfc:WorkMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember us-gaap:RoyaltyMember vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 us-gaap:SalesChannelDirectlyToConsumerMember 2019-03-31 2019-06-29 0000103379 2019-06-30 2019-06-29 0000103379 vfc:IcebreakerHoldingsLtdMember 2018-04-03 2018-04-03 0000103379 vfc:IcebreakerHoldingsLtdMember 2018-04-03 0000103379 vfc:IcebreakerHoldingsLtdMember us-gaap:CustomerRelationshipsMember 2018-04-03 2018-04-03 0000103379 vfc:IcebreakerHoldingsLtdMember 2018-04-01 2018-06-30 0000103379 vfc:IcebreakerHoldingsLtdMember us-gaap:CustomerRelationshipsMember 2018-04-03 0000103379 vfc:IcebreakerHoldingsLtdMember 2018-04-01 2019-03-30 0000103379 vfc:IcebreakerHoldingsLtdMember us-gaap:DistributionRightsMember 2018-04-03 0000103379 vfc:AltraMember us-gaap:DistributionRightsMember 2018-06-01 0000103379 vfc:AltraMember 2018-09-30 2018-12-29 0000103379 vfc:AltraMember 2018-04-01 2019-03-30 0000103379 vfc:IcebreakerHoldingsLtdMember us-gaap:TrademarksMember 2018-04-03 0000103379 vfc:AltraMember us-gaap:CustomerRelationshipsMember 2018-06-01 0000103379 vfc:AltraMember us-gaap:CustomerRelationshipsMember 2018-06-01 2018-06-01 0000103379 vfc:AltraMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-04-01 2018-06-30 0000103379 vfc:AltraMember 2018-06-01 0000103379 vfc:IcebreakerHoldingsLtdMember us-gaap:DistributionRightsMember 2018-04-03 2018-04-03 0000103379 vfc:AltraMember us-gaap:TrademarksMember 2018-06-01 0000103379 vfc:AltraMember 2018-06-01 2018-06-01 0000103379 vfc:AltraMember us-gaap:DistributionRightsMember 2018-06-01 2018-06-01 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:KontoorBrandsMember 2019-03-30 0000103379 us-gaap:SegmentDiscontinuedOperationsMember 2019-06-29 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:KontoorBrandsMember 2018-06-30 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:KontoorBrandsandNauticaMember 2018-04-01 2018-06-30 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:KontoorBrandsMember 2019-03-31 2019-06-29 0000103379 srt:MaximumMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember vfc:NauticaMember 2019-03-31 2019-06-29 0000103379 us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 2019-05-22 0000103379 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember vfc:NauticaMember 2018-04-01 2018-06-30 0000103379 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember vfc:ReefMember 2018-10-26 2018-10-26 0000103379 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember vfc:ReefMember 2019-03-31 2019-06-29 0000103379 us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-22 2019-05-22 0000103379 vfc:CreditAgreementMember us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 0000103379 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember vfc:VanMoerMember 2018-10-05 2018-10-05 0000103379 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember vfc:VanMoerMember 2018-04-01 2019-03-30 0000103379 us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 0000103379 us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-03-31 2019-06-29 0000103379 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember vfc:ReefMember 2018-04-01 2019-03-30 0000103379 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember vfc:NauticaMember 2018-04-30 2018-04-30 0000103379 vfc:TermloanMember vfc:TermLoanAFacilityMember us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:NauticaMember 2018-04-01 2018-06-30 0000103379 us-gaap:SegmentDiscontinuedOperationsMember vfc:KontoorBrandsMember 2018-04-01 2018-06-30 0000103379 vfc:TermloanMember vfc:TermLoanBFacilityMember us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 0000103379 vfc:TermloanMember vfc:TermLoanAFacilityMember us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 2019-05-22 0000103379 2019-05-22 2019-05-22 0000103379 vfc:TermloanMember vfc:TermLoanBFacilityMember us-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleSpinoffMember vfc:KontoorBrandsMember 2019-05-22 2019-05-22 0000103379 us-gaap:TrademarksMember 2019-06-29 0000103379 us-gaap:CustomerRelationshipsMember 2019-06-29 0000103379 us-gaap:LicensingAgreementsMember 2019-06-29 0000103379 us-gaap:LicensingAgreementsMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherIntangibleAssetsMember 2019-06-29 0000103379 us-gaap:CustomerRelationshipsMember 2019-03-30 0000103379 us-gaap:TrademarksMember 2019-03-30 0000103379 us-gaap:TrademarksMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherIntangibleAssetsMember 2019-03-30 0000103379 us-gaap:CustomerRelationshipsMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherIntangibleAssetsMember 2019-03-31 2019-06-29 0000103379 us-gaap:LicensingAgreementsMember 2019-03-30 0000103379 vfc:WorkMember 2019-06-29 0000103379 vfc:ActiveMember 2019-03-30 0000103379 vfc:OutdoorMember 2019-03-31 2019-06-29 0000103379 vfc:ActiveMember 2019-06-29 0000103379 vfc:ActiveMember 2019-03-31 2019-06-29 0000103379 vfc:WorkMember 2019-03-30 0000103379 vfc:OutdoorMember 2019-03-30 0000103379 vfc:WorkMember 2019-03-31 2019-06-29 0000103379 vfc:OutdoorMember 2019-06-29 0000103379 srt:MinimumMember 2019-06-29 0000103379 srt:MinimumMember us-gaap:EquipmentMember 2019-06-29 0000103379 srt:MaximumMember 2019-06-29 0000103379 srt:MaximumMember us-gaap:VehiclesMember 2019-06-29 0000103379 srt:MaximumMember us-gaap:EquipmentMember 2019-06-29 0000103379 srt:MinimumMember us-gaap:VehiclesMember 2019-06-29 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-29 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-30 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-30 0000103379 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-29 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-29 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-30 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-30 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2018-04-01 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-04-01 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-03-31 2019-06-29 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-04-01 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 2019-06-29 0000103379 us-gaap:InterestRateContractMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-04-01 2018-06-30 0000103379 us-gaap:InterestRateContractMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-04-01 2018-06-30 0000103379 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2019-03-31 2019-06-29 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 2019-06-29 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 2019-06-29 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-31 2019-06-29 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-29 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-31 0000103379 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-31 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-04-01 2018-06-30 0000103379 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-01 2018-06-30 0000103379 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-03-31 0000103379 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0000103379 vfc:KeyEmployeesInInternationalJurisdictionsMember vfc:NonPerformanceBasedRestrictedStockMember 2019-03-31 2019-06-29 0000103379 vfc:KeyEmployeesInInternationalJurisdictionsMember vfc:NonPerformanceBasedRestrictedStockMember 2019-06-29 0000103379 us-gaap:RestrictedStockMember us-gaap:SpinoffMember 2019-05-22 0000103379 us-gaap:SpinoffMember 2019-05-22 0000103379 vfc:EmployeesMember vfc:NonPerformanceBasedRestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-03-31 2019-06-29 0000103379 vfc:PerformanceBasedRestrictedStockUnitsMember 2019-03-31 2019-06-29 0000103379 srt:DirectorMember vfc:NonPerformanceBasedRestrictedStockMember 2019-03-31 2019-06-29 0000103379 vfc:EmployeesMember vfc:NonPerformanceBasedRestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-03-31 2019-06-29 0000103379 vfc:KeyEmployeesInInternationalJurisdictionsMember vfc:NonPerformanceBasedRestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-03-31 2019-06-29 0000103379 vfc:PerformanceBasedRestrictedStockUnitsMember us-gaap:SpinoffMember 2019-05-22 0000103379 vfc:EmployeesMember vfc:NonPerformanceBasedRestrictedStockMember 2019-06-29 0000103379 us-gaap:SpinoffMember 2019-03-31 2019-06-29 0000103379 srt:MaximumMember vfc:PerformanceBasedRestrictedStockUnitsMember 2019-06-29 0000103379 vfc:NonPerformanceBasedRestrictedStockMember us-gaap:SpinoffMember 2019-05-22 0000103379 vfc:KeyEmployeesInInternationalJurisdictionsMember vfc:NonPerformanceBasedRestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-03-31 2019-06-29 0000103379 us-gaap:RestrictedStockMember 2019-03-31 2019-06-29 0000103379 vfc:EmployeesMember vfc:NonPerformanceBasedRestrictedStockMember 2019-03-31 2019-06-29 0000103379 vfc:ShareholderReturnPerformanceStockAwardsMember 2019-03-31 2019-06-29 0000103379 srt:MinimumMember vfc:PerformanceBasedRestrictedStockUnitsMember 2019-06-29 0000103379 srt:MinimumMember 2019-03-31 2019-06-29 0000103379 srt:MaximumMember 2019-03-31 2019-06-29 0000103379 vfc:VFEuropeBVBAMember us-gaap:DomesticCountryMember us-gaap:AdministrationOfTheTreasuryBelgiumMember 2017-01-13 2017-01-13 0000103379 vfc:VFEuropeBVBAMember us-gaap:DomesticCountryMember us-gaap:AdministrationOfTheTreasuryBelgiumMember 2018-01-01 2018-01-31 0000103379 vfc:VFEuropeBVBAMember us-gaap:DomesticCountryMember us-gaap:AdministrationOfTheTreasuryBelgiumMember 2017-01-10 0000103379 us-gaap:SegmentContinuingOperationsMember 2018-04-01 2018-06-30 0000103379 us-gaap:OperatingSegmentsMember 2019-03-31 2019-06-29 0000103379 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0000103379 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0000103379 us-gaap:CorporateNonSegmentMember 2019-03-31 2019-06-29 0000103379 vfc:EmployeesAndNonEmployeesStockOptionMember 2019-03-31 2019-06-29 0000103379 vfc:PerformanceBasedRestrictedStockUnitsMember 2018-04-01 2018-06-30 0000103379 vfc:PerformanceBasedRestrictedStockUnitsMember 2019-03-31 2019-06-29 0000103379 vfc:EmployeesAndNonEmployeesStockOptionMember 2018-04-01 2018-06-30 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-29 0000103379 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-29 0000103379 us-gaap:SpinoffMember 2019-03-30 0000103379 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel3Member 2019-03-30 0000103379 us-gaap:FairValueInputsLevel1Member us-gaap:BankTimeDepositsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel1Member 2019-03-30 0000103379 us-gaap:FairValueInputsLevel2Member 2019-03-30 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:BankTimeDepositsMember 2019-06-29 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:BankTimeDepositsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel2Member 2019-06-29 0000103379 us-gaap:FairValueInputsLevel3Member us-gaap:BankTimeDepositsMember 2019-06-29 0000103379 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel3Member us-gaap:MoneyMarketFundsMember 2019-06-29 0000103379 us-gaap:MoneyMarketFundsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel3Member us-gaap:MoneyMarketFundsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember 2019-03-30 0000103379 us-gaap:FairValueInputsLevel1Member us-gaap:BankTimeDepositsMember 2019-06-29 0000103379 us-gaap:FairValueInputsLevel1Member 2019-06-29 0000103379 us-gaap:FairValueInputsLevel3Member 2019-06-29 0000103379 us-gaap:FairValueInputsLevel3Member us-gaap:BankTimeDepositsMember 2019-03-30 0000103379 us-gaap:MoneyMarketFundsMember 2019-06-29 0000103379 us-gaap:BankTimeDepositsMember 2019-06-29 0000103379 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember 2019-06-29 0000103379 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2019-06-29 0000103379 us-gaap:BankTimeDepositsMember 2019-03-30 0000103379 us-gaap:ForeignExchangeContractMember 2019-06-29 0000103379 us-gaap:NetInvestmentHedgingMember 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember 2019-03-30 0000103379 us-gaap:NetInvestmentHedgingMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember 2018-06-30 0000103379 us-gaap:NetInvestmentHedgingMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember 2018-04-01 2018-06-30 0000103379 us-gaap:NondesignatedMember 2019-03-30 0000103379 us-gaap:NondesignatedMember 2018-06-30 0000103379 us-gaap:NondesignatedMember 2019-06-29 0000103379 us-gaap:DesignatedAsHedgingInstrumentMember 2018-06-30 0000103379 us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0000103379 us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2018-04-01 2018-06-30 0000103379 us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-04-01 2018-06-30 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-03-31 2019-06-29 0000103379 us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2019-03-31 2019-06-29 0000103379 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2019-03-31 2019-06-29 0000103379 us-gaap:EmployeeSeveranceMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherRestructuringMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherRestructuringMember 2019-06-29 0000103379 us-gaap:EmployeeSeveranceMember 2019-06-29 0000103379 us-gaap:EmployeeSeveranceMember 2019-03-30 0000103379 us-gaap:OtherRestructuringMember 2019-03-30 0000103379 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-03-31 2019-06-29 0000103379 us-gaap:CostOfSalesMember 2019-03-31 2019-06-29 0000103379 us-gaap:OtherNoncurrentLiabilitiesMember 2019-06-29 0000103379 vfc:AccruedCurrentLiabilitiesMember 2019-06-29 0000103379 us-gaap:DividendDeclaredMember us-gaap:SubsequentEventMember 2019-09-20 xbrli:shares iso4217:USD xbrli:pure iso4217:USD xbrli:shares iso4217:EUR iso4217:NZD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 29, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number: 1-5256
vfcirclelogoa04.jpg
V. F. CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania
 
23-1180120
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. employer identification number)
8505 E. Orchard Road
Greenwood Village, Colorado 80111
(Address of principal executive offices)
(720) 778-4000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
(Title of each class)
(Trading Symbol(s))
(Name of each exchange on which registered)
Common Stock, without par value, stated capital, $0.25 per share
VFC
New York Stock Exchange
0.625% Senior Notes due 2023
VFC23
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
 
  
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated filer
 
 
  
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No   
On July 27, 2019, there were 398,176,515 shares of the registrant’s common stock outstanding.



VF CORPORATION
Table of Contents
 
Page
No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




PART I — FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED)
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
 
June 2019
 
 
March 2019
 
June 2018
ASSETS
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
Cash and equivalents
 
$
606,080

 
 
$
445,119

 
$
392,175

Accounts receivable, less allowance for doubtful accounts of:
June 2019 ‑ $20,671; March 2019 - $19,638; June 2018 - $19,135
 
1,306,270

 
 
1,465,855

 
1,222,938

Inventories
 
1,665,132

 
 
1,432,660

 
1,521,659

Other current assets
 
413,373

 
 
433,793

 
401,515

Current assets of discontinued operations
 

 
 
896,030

 
791,860

Total current assets
 
3,990,855

 
 
4,673,457

 
4,330,147

Property, plant and equipment, net
 
865,141

 
 
915,177

 
875,338

Intangible assets, net
 
1,980,921

 
 
1,972,364

 
2,129,013

Goodwill
 
1,544,132

 
 
1,541,314

 
1,594,986

Operating lease right-of-use assets
 
1,281,106

 
 

 

Other assets
 
739,809

 
 
772,755

 
774,613

Other assets of discontinued operations
 

 
 
481,718

 
487,657

TOTAL ASSETS
 
$
10,401,964

 
 
$
10,356,785

 
$
10,191,754

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
Short-term borrowings
 
$
67,658

 
 
$
659,060

 
$
1,311,861

Current portion of long-term debt
 
5,068

 
 
5,263

 
6,189

Accounts payable
 
588,417

 
 
580,867

 
565,943

Accrued liabilities
 
1,286,002

 
 
1,154,932

 
864,483

Current liabilities of discontinued operations
 

 
 
261,482

 
247,080

Total current liabilities
 
1,947,145

 
 
2,661,604

 
2,995,556

Long-term debt
 
2,126,835

 
 
2,115,884

 
2,156,627

Operating lease liabilities
 
1,043,664

 
 

 

Other liabilities
 
1,132,706

 
 
1,232,200

 
1,260,681

Other liabilities of discontinued operations
 

 
 
48,581

 
47,774

Commitments and contingencies
 

 
 

 

Total liabilities
 
6,250,350

 
 
6,058,269

 
6,460,638

Stockholders’ equity
 
 
 
 
 
 
 
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at June 2019, March 2019 or June 2018
 

 
 

 

Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at June 2019 – 397,922,120; March 2019 – 396,824,662; June 2018 – 395,509,138
 
99,481

 
 
99,206

 
98,877

Additional paid-in capital
 
3,988,385

 
 
3,921,784

 
3,688,529

Accumulated other comprehensive income (loss)
 
(867,386
)
 
 
(902,075
)
 
(882,078
)
Retained earnings
 
931,134

 
 
1,179,601

 
825,788

Total stockholders’ equity
 
4,151,614

 
 
4,298,516

 
3,731,116

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
10,401,964

 
 
$
10,356,785

 
$
10,191,754


See notes to consolidated financial statements.


3 VF Corporation Q1 FY20 Form 10-Q


VF CORPORATION
Consolidated Statements of Income
(Unaudited)
 
 
Three Months Ended June
 
 
 
 
 
 
(In thousands, except per share amounts)
 
2019
 
 
2018
Net revenues
 
$
2,271,479

 
 
$
2,137,135

Costs and operating expenses
 
 
 
 
 
Cost of goods sold
 
1,036,114

 
 
1,005,289

Selling, general and administrative expenses
 
1,102,073

 
 
1,018,747

Total costs and operating expenses
 
2,138,187

 
 
2,024,036

Operating income
 
133,292

 
 
113,099

Interest income
 
7,129

 
 
2,146

Interest expense
 
(22,127
)
 
 
(26,999
)
Other income (expense), net
 
5,598

 
 
(19,425
)
Income from continuing operations before income taxes
 
123,892

 
 
68,821

Income taxes
 
26,643

 
 
7,457

Income from continuing operations
 
97,249

 
 
61,364

Income (loss) from discontinued operations, net of tax
 
(48,028
)
 
 
98,994

Net income
 
$
49,221

 
 
$
160,358

Earnings (loss) per common share - basic
 
 
 
 
 
Continuing operations
 
$
0.25

 
 
$
0.16

Discontinued operations
 
(0.12
)
 
 
0.25

Total earnings per common share - basic
 
$
0.12

 
 
$
0.41

Earnings (loss) per common share - diluted
 
 
 
 
 
Continuing operations
 
$
0.24

 
 
$
0.15

Discontinued operations
 
(0.12
)
 
 
0.25

Total earnings per common share - diluted
 
$
0.12

 
 
$
0.40

Weighted average shares outstanding
 
 
 
 
 
Basic
 
396,727

 
 
394,165

Diluted
 
401,914

 
 
399,548











See notes to consolidated financial statements.


VF Corporation Q1 FY20 Form 10-Q 4



VF CORPORATION
Consolidated Statements of Comprehensive Income
(Unaudited)
 
 
Three Months Ended June
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
Net income
 
$
49,221

 
 
$
160,358

Other comprehensive income (loss)
 
 
 
 
 
Foreign currency translation and other
 
 
 
 
 
Gains (losses) arising during the period
 
12,829

 
 
(161,158
)
Income tax effect
 
2,943

 
 
(13,712
)
Defined benefit pension plans
 
 
 
 
 
Current period actuarial gains (losses)
 

 
 
53,940

Amortization of net deferred actuarial losses
 
4,019

 
 
8,822

Amortization of deferred prior service costs
 
13

 
 
669

Reclassification of net actuarial loss from settlement charge
 

 
 
6,842

Reclassification of deferred prior service cost due to curtailments
 

 
 
9,483

Income tax effect
 
(1,708
)
 
 
(20,655
)
Derivative financial instruments
 
 
 
 
 
Gains arising during the period
 
14,774

 
 
94,629

Income tax effect
 
(3,874
)
 
 
(11,358
)
Reclassification to net income for (gains) losses realized
 
(10,495
)
 
 
16,317

Income tax effect
 
2,756

 
 
(1,867
)
Other comprehensive income (loss)
 
21,257

 
 
(18,048
)
Comprehensive income
 
$
70,478

 
 
$
142,310
















See notes to consolidated financial statements.


5 VF Corporation Q1 FY20 Form 10-Q


VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 
 
Three Months Ended June
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
OPERATING ACTIVITIES
 
 
 
 
 
Net income
 
$
49,221

 
 
$
160,358

Income (loss) from discontinued operations, net of tax
 
(48,028
)
 
 
98,994

Income from continuing operations, net of tax
 
97,249

 
 
61,364

Adjustments to reconcile net income to cash (used) provided by operating activities:
 
 
 
 
 
Depreciation and amortization, including operating lease right-of-use assets
 
159,178

 
 
52,896

Stock-based compensation
 
33,469

 
 
24,960

Provision for doubtful accounts
 
2,161

 
 
2,448

Pension expense (less than) in excess of contributions
 
(2,837
)
 
 
2,537

Other, net
 
12,685

 
 
6,206

Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable
 
164,266

 
 
(27,309
)
Inventories
 
(228,120
)
 
 
(139,170
)
Accounts payable
 
7,148

 
 
79,518

Income taxes
 
7,867

 
 
(73,558
)
Accrued liabilities
 
(233,610
)
 
 
107,262

Operating lease right-of-use assets and liabilities
 
(102,586
)
 
 

Other assets and liabilities
 
3,738

 
 
2,183

Cash (used) provided by operating activities - continuing operations
 
(79,392
)
 
 
99,337

Cash provided by operating activities - discontinued operations
 
13,212

 
 
177,807

Cash (used) provided by operating activities
 
(66,180
)
 
 
277,144

INVESTING ACTIVITIES
 
 
 
 
 
Business acquisitions, net of cash received
 

 
 
(321,395
)
Proceeds from sale of businesses, net of cash sold
 

 
 
288,273

Capital expenditures
 
(46,270
)
 
 
(62,484
)
Software purchases
 
(14,512
)
 
 
(21,514
)
Other, net
 
62,478

 
 
5,373

Cash provided (used) by investing activities - continuing operations
 
1,696

 
 
(111,747
)
Cash used by investing activities - discontinued operations
 
(2,327
)
 
 
(17,483
)
Cash used by investing activities
 
(631
)
 
 
(129,230
)
FINANCING ACTIVITIES
 
 
 
 
 
Net decrease in short-term borrowings
 
(585,477
)
 
 
(214,383
)
Payments on long-term debt
 
(1,479
)
 
 
(1,557
)
Cash dividends paid
 
(202,538
)
 
 
(181,517
)
Cash received from Kontoor Brands, net of cash transferred of $126.8 million
 
906,148

 
 

Proceeds from issuance of Common Stock, net of shares withheld for taxes
 
7,199

 
 
53,500

Cash provided (used) by financing activities
 
123,853

 
 
(343,957
)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash
 
5,078

 
 
(19,998
)
Net change in cash, cash equivalents and restricted cash
 
62,120

 
 
(216,041
)
Cash, cash equivalents and restricted cash – beginning of year
 
556,587

 
 
689,190

Cash, cash equivalents and restricted cash – end of period
 
$
618,707

 
 
$
473,149


Continued on next page.

See notes to consolidated financial statements.



VF Corporation Q1 FY20 Form 10-Q 6



VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 
 
Three Months Ended June
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
Balances per Consolidated Balance Sheets:
 
 
 
 
 
Cash and cash equivalents
 
$
606,080

 
 
$
392,175

Other current assets
 
3,909

 
 
4,067

Current and other assets of discontinued operations
 

 
 
75,759

Other assets
 
8,718

 
 
1,148

Total cash, cash equivalents and restricted cash
 
$
618,707

 
 
$
473,149
















































See notes to consolidated financial statements.


7 VF Corporation Q1 FY20 Form 10-Q


VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
 
Three Months Ended June 2019
 
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, March 2019
396,824,662

 
$
99,206

 
$
3,921,784

 
$
(902,075
)
 
$
1,179,601

 
$
4,298,516

 
Adoption of new accounting standard, ASU 2016-02

 

 

 

 
(2,491
)
 
(2,491
)
 
Adoption of new accounting standard, ASU 2018-02

 

 

 
(61,861
)
 
61,861

 

 
Net income

 

 

 

 
49,221

 
49,221

 
Dividends on Common Stock ($0.51 per share)

 

 

 

 
(202,538
)
 
(202,538
)
 
Stock-based compensation, net
1,097,458

 
275

 
66,601

 

 
(24,312
)
 
42,564

 
Foreign currency translation and other

 

 

 
15,772

 

 
15,772

 
Defined benefit pension plans

 

 

 
2,324

 

 
2,324

 
Derivative financial instruments

 

 

 
3,161

 

 
3,161

 
Spin-off of Jeans Business

 

 

 
75,293

 
(130,208
)
 
(54,915
)
 
Balance, June 2019
397,922,120

 
$
99,481

 
$
3,988,385

 
$
(867,386
)
 
$
931,134

 
$
4,151,614

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 2018
 
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, March 2018
394,313,070

 
$
98,578

 
$
3,607,424

 
$
(864,030
)
 
$
846,124

 
$
3,688,096

 
Adoption of new accounting standard, ASU 2014-09

 

 

 

 
1,956

 
1,956

 
Net income

 

 

 

 
160,358

 
160,358

 
Dividends on Common Stock ($0.46 per share)

 

 

 

 
(181,517
)
 
(181,517
)
 
Stock-based compensation, net
1,196,068

 
299

 
81,105

 

 
(1,133
)
 
80,271

 
Foreign currency translation and other

 

 

 
(174,870
)
 

 
(174,870
)
 
Defined benefit pension plans

 

 

 
59,101

 

 
59,101

 
Derivative financial instruments

 

 

 
97,721

 

 
97,721

 
Balance, June 2018
395,509,138

 
$
98,877

 
$
3,688,529

 
$
(882,078
)
 
$
825,788

 
$
3,731,116

 







See notes to consolidated financial statements.


VF Corporation Q1 FY20 Form 10-Q 8



VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
NOTE 1 — BASIS OF PRESENTATION

VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company's current fiscal year runs from March 31, 2019 through March 28, 2020 ("Fiscal 2020"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2020. For presentation purposes herein, all references to periods ended June 2019 and June 2018 relate to the fiscal periods ended on June 29, 2019 and June 30, 2018, respectively. References to March 2019 relate to information as of March 30, 2019.
On May 22, 2019, VF completed the spin-off of its Jeans business, which included the Wrangler®, Lee® and Rock & Republic® brands, as well as the VF OutletTM business, into an independent, publicly traded company. As a result, VF reported the operating results for the Jeans business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date the spin-off was completed.
Additionally, the Nautica® brand business has been reported as discontinued operations in our Consolidated Statements of Income, and the related held-for-sale assets and liabilities have been presented as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented.
 
Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations.
Certain prior year amounts have been reclassified to conform to the Fiscal 2020 presentation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the March 2019 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three months ended June 2019 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2020. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended March 30, 2019 (“Fiscal 2019 Form 10-K”).
NOTE 2 — RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standards
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, “Leases (Topic 842)”, a new accounting standard on leasing. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Collectively, the guidance is referred to as FASB Accounting Standards Codification ("ASC") 842. This standard requires companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The Company adopted this standard on March 31, 2019, utilizing the modified retrospective method and has recognized the cumulative effect of initially applying the new standard in retained earnings. The effective date of the adoption has been used as the date of initial application, and thus comparative prior period financial information has not been restated and continues to be reported under accounting standards in effect for those periods.
The standard provides certain optional practical expedients for transition. The Company elected the transition relief package of practical expedients by applying previous accounting conclusions under ASC Topic 840, Leases ("ASC 840"), to all leases that existed prior to the transition date. As a result, VF did not reassess (i) whether existing or expired contracts contain leases, (ii) lease classification for any existing or expired leases, or (iii) whether lease origination costs qualified as initial direct costs. The
 
Company also elected the land easement practical expedient, which allows the Company to apply ASC 842 prospectively to land easements after the adoption date if they were not previously accounted for under ASC 840. Certain leases contain both lease and non-lease components. For leases associated with specific asset classes, including certain real estate, vehicles, manufacturing machinery and IT equipment, VF has elected the practical expedient which permits entities to account for separate lease and non-lease components as a single component. For all other lease contracts, the Company has elected to account for each lease component separately from the non-lease components of the contract. When applicable, VF will measure the consideration to be paid pursuant to the agreement and allocate this consideration to the lease and non-lease components based on relative stand-alone prices. Further, the Company made an accounting policy election to not recognize right-of-use assets and lease liabilities for leases with terms of 12 months or less.
The adoption of ASC 842 resulted in a net decrease of $2.5 million in the retained earnings line item of the Consolidated Balance Sheet as of March 31, 2019. The adoption of ASC 842 also resulted in the recognition of operating lease right-of-use assets and operating lease liabilities within the Consolidated Balance Sheet. Refer to Note 10 for additional lease disclosures.
In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", an update that amends and simplifies certain


9 VF Corporation Q1 FY20 Form 10-Q


aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. The FASB subsequently issued updates to the standard to provide additional guidance on specific topics. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements.
In February 2018, the FASB issued ASU No. 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", an update that addresses the effect of the change in the U.S. federal corporate income tax rate due to the enactment of the Tax Cuts and Jobs Act ("Tax Act") on items within accumulated other comprehensive income (loss). The guidance became effective for VF in the first quarter of Fiscal 2020. The Company elected to reclassify the income tax effects of the Tax Act on items within accumulated other comprehensive income (loss) of $61.9 million to retained earnings, which primarily related to deferred taxes previously recorded for pension benefits. The adoption of this guidance did not have an impact on VF's consolidated results of operations or cash flows.
In June 2018, the FASB issued ASU No. 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance became effective for VF in the first quarter of Fiscal 2020, but did not impact VF's consolidated financial statements.
In July 2018, the FASB issued ASU No. 2018-09, "Codification Improvements", an update that provides technical corrections, clarifications and other improvements across a variety of accounting topics. The transition and effective date guidance is based on the facts and circumstances of each update; however, many of them became effective for VF in the first quarter of Fiscal 2020. The guidance did not impact VF's consolidated financial statements.
Recently Issued Accounting Standards
In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a forward-looking approach based on expected losses to estimate
 
credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for VF in the first quarter of the year ended April 3, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures.
In August 2018, the FASB issued ASU No. 2018-14, "Compensation— Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans", an update that modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures.
In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements.


VF Corporation Q1 FY20 Form 10-Q 10



NOTE 3 — REVENUES
The following table provides information about accounts receivable, contract assets and contract liabilities:
(In thousands)
 
June 2019
 
 
March 2019
 
June 2018
Accounts receivable, net
 
$
1,306,270

 
 
$
1,465,855

 
$
1,222,938

Contract assets (a)
 
1,576

 
 
2,569

 
1,543

Contract liabilities (b)
 
44,364

 
 
30,181

 
27,105

(a) 
Included in the other current assets line item in the Consolidated Balance Sheets.
(b) 
Included in the accrued liabilities and other liabilities line items in the Consolidated Balance Sheets.

For the three months ended June 2019, the Company recognized $24.7 million of revenue that was included in the contract liability balance during the period. The change in the contract asset and contract liability balances primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment.
For the three months ended June 2019, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.
As of June 2019, the Company expects to recognize $85.0 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts
 
to be recognized over time through December 2024. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less.
As of June 2019, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and fixed consideration related to future minimum guarantees discussed above.
Disaggregation of Revenue
The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors. The wholesale channel includes fees generated from sourcing activities as the customers and point-in-time revenue recognition are similar to other wholesale arrangements.

Three Months Ended June 2019
 
(In thousands)
Outdoor
 
Active
 
Work
 
Other
 
Total
 
Channel revenues

 

 

 

 

 
Wholesale
$
341,756

 
$
660,142

 
$
377,548

 
$
2,808

 
$
1,382,254

 
Direct-to-consumer
266,342

 
565,887

 
40,852

 
3,454

 
876,535

 
Royalty
2,522

 
6,097

 
4,071

 

 
12,690

 
Total
$
610,620

 
$
1,232,126

 
$
422,471

 
$
6,262

 
$
2,271,479

 
 
 
 
 
 
 
 
 
 
 
 
Geographic revenues

 

 

 

 

 
United States
$
303,052

 
$
711,205

 
$
346,160

 
$

 
$
1,360,417

 
International
307,568

 
520,921

 
76,311

 
6,262

 
911,062

 
Total
$
610,620

 
$
1,232,126

 
$
422,471

 
$
6,262

 
$
2,271,479

 
 
Three Months Ended June 2018
(In thousands)
Outdoor
 
Active
 
Work
 
Other
 
Total
Channel revenues

 

 

 

 

Wholesale
$
309,776

 
$
654,848

 
$
381,364

 
$
8,305

 
$
1,354,293

Direct-to-consumer
255,964

 
475,536

 
36,838

 

 
768,338

Royalty
2,860

 
6,553

 
5,091

 

 
14,504

Total
$
568,600

 
$
1,136,937

 
$
423,293

 
$
8,305

 
$
2,137,135

 
 
 
 
 
 
 
 
 
 
Geographic revenues

 

 

 

 

United States
$
262,856

 
$
644,105

 
$
331,099

 
$
8,305

 
$
1,246,365

International
305,744

 
492,832

 
92,194

 

 
890,770

Total
$
568,600

 
$
1,136,937

 
$
423,293

 
$
8,305

 
$
2,137,135




11 VF Corporation Q1 FY20 Form 10-Q


NOTE 4 — ACQUISITIONS
Icebreaker

On April 3, 2018, VF acquired 100% of the stock of Icebreaker Holdings Limited ("Icebreaker") for NZ$274.4 million ($198.5 million) in cash, subject to working capital and other adjustments. The purchase price was primarily funded with short-term borrowings. The purchase price decreased NZ$1.4 million ($0.9 million) for the year ended March 2019, related to working capital adjustments, resulting in a revised purchase price of NZ$273.0 million ($197.6 million). The purchase price allocation was finalized during the three months ended March 2019.
 
Icebreaker was a privately held company based in Auckland, New Zealand. Icebreaker®, the primary brand, specializes in high-performance apparel based on natural fibers, including Merino wool, plant-based fibers and recycled fibers. It is an ideal complement to VF's Smartwool® brand, which also features Merino wool in its clothing and accessories. Together, the Smartwool® and Icebreaker® brands position VF as a global leader in the Merino wool and natural fiber categories.
The following table summarizes the estimated fair values of the Icebreaker assets acquired and liabilities assumed at the date of acquisition:
(In thousands)
 
April 3, 2018
Cash and equivalents
 
$
6,444

Accounts receivable
 
16,781

Inventories
 
31,728

Other current assets
 
3,931

Property, plant and equipment
 
3,858

Intangible assets
 
98,041

Other assets
 
4,758

Total assets acquired
 
165,541

 
 
 
Short-term borrowings
 
7,235

Accounts payable
 
2,075

Other current liabilities
 
21,262

Deferred income tax liabilities
 
26,870

Other noncurrent liabilities
 
433

Total liabilities assumed
 
57,875

 
 
 
Net assets acquired
 
107,666

Goodwill
 
89,943

Purchase price
 
$
197,609



The goodwill is attributable to the acquired workforce of Icebreaker and the significant synergies expected to arise as a result of the acquisition. All of the goodwill has been assigned to the Outdoor segment and none is expected to be deductible for tax purposes.
The Icebreaker® trademark, which management determined to have an indefinite life, has been valued at $70.1 million. Amortizable intangible assets have been assigned values of $27.8 million for customer relationships and $0.2 million for distribution agreements. Customer relationships are being amortized using an accelerated method over 11.5 years. Distribution agreements are being amortized on a straight-line basis over four years.
 
Total transaction expenses for the Icebreaker acquisition of $7.4 million were recognized in the selling, general and administrative expenses line item in the Consolidated Statements of Income, of which $4.1 million was recognized during the three months ended June 2018 and the remainder was recognized prior to Fiscal 2019. In addition, the Company recognized a $9.9 million gain on derivatives used to hedge the purchase price of Icebreaker in the other income (expense), net line item in the Consolidated Statements of Income, of which $0.3 million was recognized during the three months ended June 2018 and the remainder was recognized prior to Fiscal 2019.
Pro forma results of operations of the Company would not be materially different as a result of the Icebreaker acquisition and therefore are not presented.


VF Corporation Q1 FY20 Form 10-Q 12



Altra

On June 1, 2018, VF acquired 100% of the stock of Icon-Altra LLC, plus certain assets in Europe ("Altra"). The purchase price was $131.7 million in cash, subject to working capital and other adjustments and was primarily funded with short-term borrowings. The purchase price decreased $0.1 million during the year ended March 2019, related to working capital adjustments, resulting in a revised purchase price of $131.6 million. The allocation of the purchase price was finalized during the three months ended December 2018, resulting in a decrease of goodwill
 
by $1.5 million related to a final adjustment to working capital balances.
Altra®, the primary brand, is an athletic and performance-based lifestyle footwear brand. Altra provides VF with a unique and differentiated technical footwear brand and a capability that, when applied across VF's footwear platforms, will serve as a catalyst for growth.
The following table summarizes the estimated fair values of the Altra assets acquired and liabilities assumed at the date of acquisition:
(In thousands)
 
June 1, 2018
Accounts receivable
 
$
11,629

Inventories
 
9,310

Other current assets
 
575

Property, plant and equipment
 
1,107

Intangible assets
 
59,700

Total assets acquired
 
82,321

 
 
 
Accounts payable
 
5,068

Other current liabilities
 
7,415

Total liabilities assumed
 
12,483

 
 
 
Net assets acquired
 
69,838

Goodwill
 
61,719

Purchase price
 
$
131,557



The goodwill is attributable to the significant growth and synergies expected to arise as a result of the acquisition. All of the goodwill was assigned to the Outdoor segment and is expected to be deductible for tax purposes.
The Altra® trademark, which management determined to have an indefinite life, has been valued at $46.4 million. Amortizable intangible assets have been assigned values of $13.0 million for customer relationships and $0.3 million for distribution agreements. Customer relationships are being amortized using an accelerated method over 15 years. Distribution agreements are being amortized on a straight-line basis over four years.