vfc-20201226

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 December 26, 2020

☐ 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

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)

1551 Wewatta Street

Denver, Colorado 80202

(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
0.250% Senior Notes due 2028	VFC28	New York Stock Exchange
0.625% Senior Notes due 2032	VFC32	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 January 23, 2021, there were 391,713,717 shares of the registrant’s common stock outstanding.

VF CORPORATION

Table of Contents


			PAGE NUMBER
Part I — Financial Information			3
Item 1 — Financial Statements (Unaudited)			3
Consolidated Balance Sheets: Consolidated Balance Sheets: Dec ember 2020, March 2020 and Dec ember 2019			3
Consolidated Statements of Operations: Three and nine months ended Dec ember 2020 and Dec ember 2019			4
Consolidated Statements of Comprehensive Income : Three and nine months ended Dec ember 2020 and Dec ember 2019			5
Consolidated Statements of Cash Flows: Nine months ended Dec ember 2020 and Dec ember 2019			6
Consolidated Statements of Stockholders’ Equity: Three and nine months ended Dec ember 2020 and Dec ember 2019			8
Notes to Consolidated Financial Statements			10
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations			29
Item 3 — Quantitative and Qualitative Disclosures about Market Risk			41
Item 4 — Controls and Procedures			41
Part II — Other Information			42
Item 1 — Legal Proceedings			42
Item 1A — Risk Factors			42
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds			43
Item 6 — Exhibits			44
Signatures			45

Table of Contents

PART I — FINANCIAL INFORMATION


ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED).

VF CORPORATION

Consolidated Balance Sheets

(Unaudited)


(In thousands, except share amounts)	December 2020		March 2020		December 2019
ASSETS
Current assets
Cash and equivalents	$	3,254,236	$	1,369,028	$	540,029
Accounts receivable, less allowance for doubtful accounts of: December 2020 - $39,622; March 2020 - $37,099; December 2019 - $20,374	1,411,565		1,308,051		1,539,923
Inventories	1,075,983		1,293,912		1,254,460
Short-term investments	599,403		—		—
Other current assets	383,384		444,886		356,882

Current assets of discontinued operations	560,648		611,139		464,404
Total current assets	7,285,219		5,027,016		4,155,698
Property, plant and equipment, net	955,845		954,406		867,205
Intangible assets, net	1,862,042		1,854,545		1,887,789
Goodwill	1,194,212		1,156,019		1,489,949
Operating lease right-of-use assets	1,476,503		1,273,514		1,259,066
Other assets	970,520		867,751		958,253
Other assets of discontinued operations	—		—		196,302
TOTAL ASSETS	$	13,744,341	$	11,133,251	$	10,814,262
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	299,748	$	1,228,812	$	56,001
Current portion of long-term debt	1,006		1,018		4,677
Accounts payable	412,324		407,021		389,749
Accrued liabilities	1,664,760		1,260,252		1,410,609

Current liabilities of discontinued operations	120,185		126,781		101,056
Total current liabilities	2,498,023		3,023,884		1,962,092
Long-term debt	5,786,552		2,608,269		2,110,488
Operating lease liabilities	1,211,655		1,020,651		1,014,544
Other liabilities	1,109,937		1,123,113		1,128,834
Other liabilities of discontinued operations	—		—		30,714
Total liabilities	10,606,167		7,775,917		6,246,672
Commitments and contingencies
Stockholders’ equity
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at December 2020, March 2020 or December 2019	—		—		—
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at December 2020 - 390,985,837; March 2020 - 388,812,158; December 2019 - 394,528,067	97,746		97,203		98,632
Additional paid-in capital	3,735,896		4,183,780		4,182,102
Accumulated other comprehensive income (loss)	(995,963)		(930,958)		(895,372)
Retained earnings	300,495		7,309		1,182,228
Total stockholders’ equity	3,138,174		3,357,334		4,567,590
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	13,744,341	$	11,133,251	$	10,814,262

See notes to consolidated financial statements.

3 VF Corporation Q3 FY21 Form 10-Q

Table of Contents

VF CORPORATION

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended December				Nine Months Ended December

(In thousands, except per share amounts)	2020		2019		2020		2019
Net revenues	$	2,971,541	$	3,155,723	$	6,656,158	$	8,386,135
Costs and operating expenses
Cost of goods sold	1,345,024		1,351,653		3,134,381		3,704,254
Selling, general and administrative expenses	1,214,518		1,264,031		3,036,639		3,497,315

Total costs and operating expenses	2,559,542		2,615,684		6,171,020		7,201,569
Operating income	411,999		540,039		485,138		1,184,566
Interest income	2,539		4,966		7,028		15,934
Interest expense	(34,315)		(22,303)		(97,684)		(65,240)
Other income (expense), net	6,484		(22,144)		(27,059)		(18,361)
Income from continuing operations before income taxes	386,707		500,558		367,423		1,116,899
Income tax expense	59,048		78,976		74,260		4,667
Income from continuing operations	327,659		421,582		293,163		1,112,232
Income from discontinued operations, net of tax	19,581		43,421		25,186		50,993
Net income	$	347,240	$	465,003	$	318,349	$	1,163,225
Earnings per common share - basic
Continuing operations	$	0.84	$	1.06	$	0.75	$	2.80
Discontinued operations	0.05		0.11		0.06		0.13
Total earnings per common share - basic	$	0.89	$	1.17	$	0.82	$	2.93
Earnings per common share - diluted
Continuing operations	$	0.83	$	1.05	$	0.75	$	2.77
Discontinued operations	0.05		0.11		0.06		0.13
Total earnings per common share - diluted	$	0.88	$	1.16	$	0.81	$	2.90
Weighted average shares outstanding
Basic	389,872		395,940		389,262		396,806
Diluted	392,851		400,322		391,607		401,499

See notes to consolidated financial statements.

VF Corporation Q3 FY21 Form 10-Q 4

Table of Contents

VF CORPORATION

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended December				Nine Months Ended December

(In thousands)	2020		2019		2020		2019
Net income	$	347,240	$	465,003	$	318,349	$	1,163,225
Other comprehensive income (loss)
Foreign currency translation and other
Gains (losses) arising during the period	9,495		46,813		(20,134)		(10,831)
Reclassification of foreign currency translation losses	—		—		42,364		—
Income tax effect	26,779		5,154		51,616		(815)
Defined benefit pension plans
Current period actuarial gains (losses)	(4,636)		35,971		(13,489)		21,361
Amortization of net deferred actuarial losses	3,020		4,203		8,781		12,236
Amortization of deferred prior service costs (credits)	(19)		13		(53)		38
Reclassification of net actuarial loss from settlement charge	544		24,943		1,116		25,462


Income tax effect	429		(16,334)		1,151		(15,835)
Derivative financial instruments
Gains (losses) arising during the period	(82,491)		(56,699)		(129,817)		9,471
Income tax effect	14,118		10,163		22,845		(759)
Reclassification of net gains realized	(4,271)		(22,563)		(35,930)		(56,746)
Income tax effect	727		3,689		6,545		9,689
Other comprehensive income (loss)	(36,305)		35,353		(65,005)		(6,729)
Comprehensive income	$	310,935	$	500,356	$	253,344	$	1,156,496

See notes to consolidated financial statements.

5 VF Corporation Q3 FY21 Form 10-Q

Table of Contents

VF CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended December

(In thousands)	2020		2019
OPERATING ACTIVITIES
Net income	$	318,349	$	1,163,225
Income from discontinued operations, net of tax	25,186		50,993
Income from continuing operations, net of tax	293,163		1,112,232
Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization	204,580		194,647
Reduction in the carrying amount of right-of-use assets	309,579		282,531
Stock-based compensation	46,109		93,460
Provision for doubtful accounts	22,494		8,999
Pension expense in excess of (less than) contributions	(12,111)		9,428


Other, net	(83)		(124,122)
Changes in operating assets and liabilities:
Accounts receivable	(46,835)		(176,524)
Inventories	266,713		(82,698)
Accounts payable	(6,696)		(97,379)
Income taxes	(18,235)		(45,529)
Accrued liabilities	248,679		(80,357)
Operating lease right-of-use assets and liabilities	(254,544)		(314,465)
Other assets and liabilities	31,464		33,754
Cash provided by operating activities - continuing operations	1,084,277		813,977
Cash provided by operating activities - discontinued operations	57,779		27,649
Cash provided by operating activities	1,142,056		841,626
INVESTING ACTIVITIES


Purchases of short-term investments	(800,000)		—
Proceeds from maturities of short-term investments	200,000		—
Capital expenditures	(152,446)		(179,195)
Software purchases	(51,964)		(36,104)
Other, net	(9,116)		52,728
Cash used by investing activities - continuing operations	(813,526)		(162,571)
Cash used by investing activities - discontinued operations	(3,171)		(11,385)
Cash used by investing activities	(816,697)		(173,956)
FINANCING ACTIVITIES
Net decrease in short-term borrowings	(929,074)		(596,559)
Payments on long-term debt	(1,152)		(4,496)
Payment of debt issuance costs	(21,438)		—
Proceeds from long-term debt	2,996,090		—
Share repurchases	—		(500,003)
Cash dividends paid	(564,904)		(562,298)
Cash received from Kontoor Brands, net of cash transferred of $126.8 million	—		906,148
Proceeds from issuance of Common Stock, net of payments for tax withholdings	45,867		135,086

Cash provided (used) by financing activities	1,525,389		(622,122)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash	12,513		(4,927)
Net change in cash, cash equivalents and restricted cash	1,863,261		40,621
Cash, cash equivalents and restricted cash – beginning of year	1,411,322		556,587
Cash, cash equivalents and restricted cash – end of period	$	3,274,583	$	597,208

Continued on next page.

See notes to consolidated financial statements.

VF Corporation Q3 FY21 Form 10-Q 6

Table of Contents

VF CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended December

(In thousands)	2020		2019
Balances per Consolidated Balance Sheets:
Cash and cash equivalents	$	3,254,236	$	540,029
Other current assets	1,104		3,448

Current assets of discontinued operations	18,771		43,922
Other assets	472		9,809
Total cash, cash equivalents and restricted cash	$	3,274,583	$	597,208

See notes to consolidated financial statements.

7 VF Corporation Q3 FY21 Form 10-Q

Table of Contents

VF CORPORATION

Consolidated Statements of Stockholders’ Equity

(Unaudited)


	Three Months Ended December 2020
				Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)
	Common Stock
(In thousands, except share amounts)	Shares	Amounts								Total
Balance, September 2020	389,964,718	$	97,491	$	3,852,358	$	(959,658)	$	(44,953)	$	2,945,238


Net income	—	—		—		—		347,240		347,240
Dividends on Common Stock ($0.49 per share)	—	—		(191,266)		—		—		(191,266)

Stock-based compensation, net	1,021,119	255		74,804		—		(1,792)		73,267
Foreign currency translation and other	—	—		—		36,274		—		36,274
Defined benefit pension plans	—	—		—		(662)		—		(662)
Derivative financial instruments	—	—		—		(71,917)		—		(71,917)

Balance, December 2020	390,985,837	$	97,746	$	3,735,896	$	(995,963)	$	300,495	$	3,138,174

	Three Months Ended December 2019
				Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
	Common Stock
(In thousands, except share amounts)	Shares	Amounts								Total
Balance, September 2019	398,865,790	$	99,716	$	4,072,640	$	(930,725)	$	1,405,988	$	4,647,619


Net income	—	—		—		—		465,003		465,003
Dividends on Common Stock ($0.48 per share)	—	—		—		—		(188,694)		(188,694)
Share repurchases	(5,840,550)	(1,460)		—		—		(498,543)		(500,003)
Stock-based compensation, net	1,502,827	376		109,462		—		(1,526)		108,312
Foreign currency translation and other	—	—		—		51,967		—		51,967
Defined benefit pension plans	—	—		—		48,796		—		48,796
Derivative financial instruments	—	—		—		(65,410)		—		(65,410)

Balance, December 2019	394,528,067	$	98,632	$	4,182,102	$	(895,372)	$	1,182,228	$	4,567,590

Continued on next page.

See notes to consolidated financial statements.

VF Corporation Q3 FY21 Form 10-Q 8

Table of Contents

VF CORPORATION

Consolidated Statements of Stockholders’ Equity

(Unaudited)


	Nine Months Ended December 2020
				Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
	Common Stock
(In thousands, except share amounts)	Shares	Amounts								Total
Balance, March 2020	388,812,158	$	97,203	$	4,183,780	$	(930,958)	$	7,309	$	3,357,334


Net income	—	—		—		—		318,349		318,349
Dividends on Common Stock ($1.45 per share)	—	—		(564,904)		—		—		(564,904)

Stock-based compensation, net	2,173,679	543		117,020		—		(25,163)		92,400
Foreign currency translation and other	—	—		—		73,846		—		73,846
Defined benefit pension plans	—	—		—		(2,494)		—		(2,494)
Derivative financial instruments	—	—		—		(136,357)		—		(136,357)

Balance, December 2020	390,985,837	$	97,746	$	3,735,896	$	(995,963)	$	300,495	$	3,138,174

	Nine Months Ended December 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	—	—		—		—		1,163,225		1,163,225
Dividends on Common Stock ($1.42 per share)	—	—		—		—		(562,298)		(562,298)
Share repurchases	(5,840,550)	(1,460)		—		—		(498,543)		(500,003)
Stock-based compensation, net	3,543,955	886		260,318		—		(28,919)		232,285
Foreign currency translation and other	—	—		—		(11,646)		—		(11,646)
Defined benefit pension plans	—	—		—		43,262		—		43,262
Derivative financial instruments	—	—		—		(38,345)		—		(38,345)
Spin-off of Jeans Business	—	—		—		75,293		(130,208)		(54,915)
Balance, December 2019	394,528,067	$	98,632	$	4,182,102	$	(895,372)	$	1,182,228	$	4,567,590

See notes to consolidated financial statements.

9 VF Corporation Q3 FY21 Form 10-Q

Table of Contents

VF CORPORATION

Notes to Consolidated Financial Statements

(Unaudited)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS		PAGE NUMBER

NOTE 1	Basis of Presentation	11
NOTE 2	Recently Adopted and Issued Accounting Standards	11
NOTE 3	Revenues	12
NOTE 4	Acquisition	14
NOTE 5	Discontinued Operations	14
NOTE 6	Inventories	16
NOTE 7	Intangible Assets	16
NOTE 8	Goodwill	17
NOTE 9	Leases	17
NOTE 10	Short-term Borrowings and Long-term Debt	18
NOTE 11	Pension Plans	18
NOTE 12	Capital and Accumulated Other Comprehensive Income (Loss)	19
NOTE 13	Stock-based Compensation	22
NOTE 14	Income Taxes	22
NOTE 15	Reportable Segment Information	23
NOTE 16	Earnings Per Share	24
NOTE 17	Fair Value Measurements	24
NOTE 18	Derivative Financial Instruments and Hedging Activities	25
NOTE 19	Restructuring	27
NOTE 20	Contingencies	28
NOTE 21	Subsequent Events	28

VF Corporation Q3 FY21 Form 10-Q 10

Table of Contents

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 29, 2020 through April 3, 2021 ("Fiscal 2021"). Accordingly, this Form 10-Q presents our third quarter of Fiscal 2021. For presentation purposes herein, all references to periods ended December 2020 and December 2019 relate to the fiscal periods ended on December 26, 2020 and December 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. 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 OutletTM 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 nine months ended December 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.

NOTE 2 — 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

11 VF Corporation Q3 FY21 Form 10-Q

Table of Contents

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 is 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 annual 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 does not expect the adoption of this guidance to have a material impact 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.

NOTE 3 — REVENUES

The following table provides information about accounts receivable, contract assets and contract liabilities:

(In thousands)

December 2020