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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 July 3, 2021
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
vfc-20210703_g1.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)
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 shareVFCNew York Stock Exchange
0.625% Senior Notes due 2023VFC23New York Stock Exchange
0.250% Senior Notes due 2028VFC28New York Stock Exchange
0.625% Senior Notes due 2032VFC32New 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 filerAccelerated 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 31, 2021, there were 392,638,627 shares of the registrant’s common stock outstanding.




VF CORPORATION
Table of Contents
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Table of Contents
PART I — FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED).
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)June 2021March 2021June 2020
ASSETS
Current assets
Cash and equivalents
$1,274,926 $815,750 $2,145,111 
Accounts receivable, less allowance for doubtful accounts of: June 2021  - $33,666; March 2021 - $33,654; June 2020 - $38,179
1,138,811 1,298,020 934,984 
Inventories
1,216,818 1,061,839 1,402,858 
Short-term investments
598,806 598,806 700,000 
Other current assets
334,777 423,877 513,049 
Current assets of discontinued operations
 587,578 565,135 
Total current assets4,564,138 4,785,870 6,261,137 
Property, plant and equipment, net
1,016,465 975,876 957,309 
Intangible assets, net
3,027,886 3,029,545 1,855,764 
Goodwill
2,427,324 2,425,427 1,162,606 
Operating lease right-of-use assets
1,426,706 1,474,434 1,354,308 
Other assets
1,087,832 1,062,877 887,921 
TOTAL ASSETS$13,550,351 $13,754,029 $12,479,045 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term borrowings
$8,091 $11,061 $19,256 
Current portion of long-term debt
1,001,030 1,023 1,025 
Accounts payable
534,803 463,208 348,932 
Accrued liabilities
1,527,522 1,609,928 1,254,967 
Current liabilities of discontinued operations
 125,257 91,283 
Total current liabilities3,071,446 2,210,477 1,715,463 
Long-term debt
4,726,234 5,709,149 5,609,792 
Operating lease liabilities
1,192,792 1,236,461 1,104,500 
Other liabilities
1,285,849 1,541,778 1,136,692 
Total liabilities10,276,321 10,697,865 9,566,447 
Commitments and contingencies
Stockholders’ equity
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at June 2021, March 2021 or June 2020
   
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at June 2021 - 392,621,561; March 2021 - 391,941,477; June 2020 - 389,641,245
98,155 97,985 97,410 
Additional paid-in capital
3,824,656 3,777,645 4,010,817 
Accumulated other comprehensive income (loss)
(965,886)(1,009,000)(897,541)
Retained earnings (accumulated deficit)
317,105 189,534 (298,088)
Total stockholders’ equity3,274,030 3,056,164 2,912,598 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,550,351 $13,754,029 $12,479,045 

See notes to consolidated financial statements.

3 VF Corporation Q1 FY22 Form 10-Q

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VF CORPORATION
Consolidated Statements of Operations
(Unaudited)
 Three Months Ended June
(In thousands, except per share amounts)20212020
Net revenues
$2,194,557 $1,076,293 
Costs and operating expenses
Cost of goods sold
955,551 506,951 
Selling, general and administrative expenses
1,036,122 816,151 
Total costs and operating expenses
1,991,673 1,323,102 
Operating income (loss)
202,884 (246,809)
Interest income
2,142 1,313 
Interest expense
(34,917)(29,262)
Other income (expense), net
9,041 (38,187)
Income (loss) from continuing operations before income taxes
179,150 (312,945)
Income tax expense (benefit)
25,178 (35,203)
Income (loss) from continuing operations
153,972 (277,742)
Income (loss) from discontinued operations, net of tax
170,273 (7,871)
Net income (loss)
$324,245 $(285,613)
Earnings (loss) per common share - basic
Continuing operations
$0.39 $(0.71)
Discontinued operations
0.44 (0.02)
Total earnings (loss) per common share - basic
$0.83 $(0.73)
Earnings (loss) per common share - diluted
Continuing operations
$0.39 $(0.71)
Discontinued operations
0.43 (0.02)
Total earnings (loss) per common share - diluted
$0.82 $(0.73)
Weighted average shares outstanding
Basic
391,351 388,695 
Diluted
394,128 390,791 










See notes to consolidated financial statements.
VF Corporation Q1 FY22 Form 10-Q 4

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VF CORPORATION
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
 Three Months Ended June
(In thousands)20212020
Net income (loss)
$324,245 $(285,613)
Other comprehensive income (loss)
Foreign currency translation and other
Gains arising during the period
33,171 3,854 
Reclassification of foreign currency translation losses
 42,364 
Income tax effect
3,882 6,255 
Defined benefit pension plans
Current period actuarial losses
(4,013) 
Amortization of net deferred actuarial losses
2,840 2,863 
Amortization of deferred prior service credits
(118)(17)
Reclassification of net actuarial loss from settlement charge
948  
Income tax effect
659 336 
Derivative financial instruments
Gains (losses) arising during the period
(4,563)(7,595)
Income tax effect
192 1,530 
Reclassification of net (gains) losses realized
10,559 (20,280)
Income tax effect
(443)4,107 
Other comprehensive income (loss)
43,114 33,417 
Comprehensive income (loss)
$367,359 $(252,196)














See notes to consolidated financial statements.
5 VF Corporation Q1 FY22 Form 10-Q

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VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended June
(In thousands)20212020
OPERATING ACTIVITIES
Net income (loss)
$324,245 $(285,613)
Income (loss) from discontinued operations, net of tax
170,273 (7,871)
Income (loss) from continuing operations, net of tax
153,972 (277,742)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation and amortization
68,050 63,026 
Reduction in the carrying amount of right-of-use assets
104,930 101,772 
Stock-based compensation
21,701 9,686 
Provision for doubtful accounts
1,850 8,145 
Pension expense less than contributions
(6,759)(3,802)
Other, net
(176,493)32,858 
Changes in operating assets and liabilities:
Accounts receivable
167,798 372,754 
Inventories
(150,966)(100,129)
Accounts payable
70,197 (59,768)
Income taxes
134,115 (65,128)
Accrued liabilities
(71,905)(26,917)
Operating lease right-of-use assets and liabilities
(113,465)(51,579)
Other assets and liabilities
(128,107)(13,630)
Cash provided (used) by operating activities - continuing operations
74,918 (10,454)
Cash provided by operating activities - discontinued operations
6,090 7,266 
Cash provided (used) by operating activities
81,008 (3,188)
INVESTING ACTIVITIES
Proceeds from sale of businesses, net of cash sold
616,529  
Purchases of short-term investments
 (700,000)
Capital expenditures
(93,218)(69,191)
Software purchases
(21,006)(13,477)
Other, net
7,048 (573)
Cash provided (used) by investing activities - continuing operations
509,353 (783,241)
Cash used by investing activities - discontinued operations
(525)(1,914)
Cash provided (used) by investing activities
508,828 (785,155)
FINANCING ACTIVITIES
Net decrease in short-term borrowings
(2,973)(1,209,556)
Payments on long-term debt
(253)(222)
Payment of debt issuance costs
 (21,271)
Proceeds from long-term debt
 2,996,090 
Cash dividends paid
(192,131)(186,746)
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings
20,910 (15,634)
Cash provided (used) by financing activities
(174,447)1,562,661 
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash
10,003 4,126 
Net change in cash, cash equivalents and restricted cash
425,392 778,444 
Cash, cash equivalents and restricted cash – beginning of year
851,205 1,411,322 
Cash, cash equivalents and restricted cash – end of period
$1,276,597 $2,189,766 

Continued on next page.

See notes to consolidated financial statements.
VF Corporation Q1 FY22 Form 10-Q 6

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VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended June
(In thousands)20212020
Balances per Consolidated Balance Sheets:
Cash and cash equivalents$1,274,926 $2,145,111 
Other current assets1,643 1,216 
Current assets of discontinued operations 42,986 
Other assets28 453 
Total cash, cash equivalents and restricted cash$1,276,597 $2,189,766 















































See notes to consolidated financial statements.
7 VF Corporation Q1 FY22 Form 10-Q

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VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
Three Months Ended June 2021
Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)
 Common Stock
 (In thousands, except share amounts)SharesAmountsTotal
Balance, March 2021391,941,477 $97,985 $3,777,645 $(1,009,000)$189,534 $3,056,164 
Net income (loss)
— — — — 324,245 324,245 
Dividends on Common Stock ($0.49 per share)
— — (2,597)— (189,534)(192,131)
Stock-based compensation, net
680,084 170 49,608 — (7,140)42,638 
Foreign currency translation and other
— — — 37,053 — 37,053 
Defined benefit pension plans
— — — 316 — 316 
Derivative financial instruments
— — — 5,745 — 5,745 
Balance, June 2021392,621,561 $98,155 $3,824,656 $(965,886)$317,105 $3,274,030 
Three Months Ended June 2020
Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)
Common Stock
 (In thousands, except share amounts)SharesAmountsTotal
Balance, March 2020388,812,158 $97,203 $4,183,780 $(930,958)$7,309 $3,357,334 
Net income (loss)
— — — — (285,613)(285,613)
Dividends on Common Stock ($0.48 per share)
— — (186,746)— — (186,746)
Stock-based compensation, net
829,087 207 13,783 — (19,784)(5,794)
Foreign currency translation and other
— — — 52,473 — 52,473 
Defined benefit pension plans
— — — 3,182 — 3,182 
Derivative financial instruments
— — — (22,238)— (22,238)
Balance, June 2020389,641,245 $97,410 $4,010,817 $(897,541)$(298,088)$2,912,598 




















See notes to consolidated financial statements.
VF Corporation Q1 FY22 Form 10-Q 8

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VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSPAGE NUMBER
NOTE 1
NOTE 2
NOTE 3
NOTE 4
NOTE 5
NOTE 6
NOTE 7
NOTE 8
NOTE 9
NOTE 10
NOTE 11
NOTE 12
NOTE 13
NOTE 14
NOTE 15
NOTE 16
NOTE 17
NOTE 18
NOTE 19
NOTE 20
9 VF Corporation Q1 FY22 Form 10-Q

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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 April 4, 2021 through April 2, 2022 ("Fiscal 2022"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2022. For presentation purposes herein, all references to periods ended June 2021 and June 2020 relate to the fiscal periods ended on July 3, 2021 and June 27, 2020, respectively. References to March 2021 relate to information as of April 3, 2021.
On June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also included the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. The results of the Occupational Workwear business and the related cash flows have been reported as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented.
Unless otherwise noted, discussion within these notes to the condensed consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations.
Certain prior year amounts have been reclassified to conform to the Fiscal 2022 presentation.
The accompanying unaudited 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 2021 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 2021 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2022. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended April 3, 2021 (“Fiscal 2021 Form 10-K”).
In preparing the 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, continues to impact VF's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates.
NOTE 2 — RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standards
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance became effective for VF in the first quarter of Fiscal 2022, but did not have a material impact on VF's consolidated financial statements.
Recently Issued Accounting Standards
In March 2020 and January 2021, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and ASU No. 2021-01, "Reference Rate Reform (Topic 848): Scope", respectively. This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on VF's consolidated financial statements.
NOTE 3 — REVENUES
Contract Balances
The following table provides information about contract assets and contract liabilities:
(In thousands)June 2021March 2021June 2020
Contract assets (a)
$1,135 $880 $2,487 
Contract liabilities (b)
68,921 49,869 45,622 
(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.

VF Corporation Q1 FY22 Form 10-Q 10

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For the three months ended June 2021, the Company recognized $91.0 million of revenue that was included in the contract liability balance during the period, including amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. The change in the contract asset and contract liability balances primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment.
Performance Obligations
As of June 2021, the Company expects to recognize $63.8 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts to be recognized over time based on the contractual terms, with the majority of the revenue recognized by Fiscal
2025. 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 2021, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and the fixed consideration related to future minimum guarantees discussed above.
For the three months ended June 2021, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.
Disaggregation of Revenue
The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors.
Three Months Ended June 2021
(In thousands)OutdoorActiveWorkOtherTotal
Channel revenues
Wholesale$334,875 $546,025 $226,871 $ $1,107,771 
Direct-to-consumer279,658 751,235 42,812  1,073,705 
Royalty3,221 4,808 5,052  13,081 
Total$617,754 $1,302,068 $274,735 $ $2,194,557 
Geographic revenues
United States$283,158 $695,835 $217,526 $ $1,196,519 
International:
Europe218,555 307,216 14,196  539,967 
Asia-Pacific88,060 238,473 26,139  352,672 
Americas (non-U.S.)27,981 60,544 16,874  105,399 
Total$617,754 $1,302,068 $274,735 $ $2,194,557 
Three Months Ended June 2020
(In thousands)OutdoorActiveWorkOtherTotal
Channel revenues
Wholesale$158,506 $241,164 $117,604 $1,275 $518,549 
Direct-to-consumer180,014 324,201 40,615 44 544,874 
Royalty2,708 5,951 4,211  12,870 
Total$341,228 $571,316 $162,430 $1,319 $1,076,293 
Geographic revenues
United States$152,477 $265,507 $114,632 $ $532,616 
International:
Europe99,024 125,526 13,301 1,319 239,170 
Asia-Pacific79,267 162,414 24,509  266,190 
Americas (non-U.S.)10,460 17,869 9,988  38,317 
Total$341,228 $571,316 $162,430 $1,319 $1,076,293 
11 VF Corporation Q1 FY22 Form 10-Q

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NOTE 4ACQUISITION
On December 28, 2020, VF acquired 100% of the outstanding shares of Supreme Holdings, Inc. ("Supreme") for $2.2 billion in cash, which is subject to working capital and other adjustments. The transaction also included $0.2 billion of cash acquired by VF. The preliminary purchase price was primarily funded with cash on hand.
The acquisition of Supreme includes a contingent arrangement that may require additional cash consideration to be paid to the selling shareholders of Supreme ranging from zero to $300.0 million, subject to the achievement of certain financial targets over the one-year earn-out period ending January 31, 2022. The initial estimated fair value of the contingent consideration of $207.0 million is included in the preliminary purchase price and was reported in the other liabilities line item in the Consolidated Balance Sheet at March 2021. The estimated fair value of the contingent consideration was determined based on the probability-weighted present value of various future cash payment outcomes. In subsequent reporting periods, the contingent consideration liability is remeasured at fair value with changes recognized in the selling, general and administrative expenses line item in the Consolidated Statements of Operations. Refer to Note 16 for additional information on fair value measurements.
Supreme was a privately-held company based in New York, New York and is a global streetwear leader that sells apparel, accessories and footwear under its namesake brand, Supreme®, through direct-to-consumer channels, including digital. The acquisition of Supreme accelerates VF's long-term growth
strategy and builds on a long-standing relationship between Supreme and VF, with the Supreme® brand being a regular collaborator with VF's Vans®, The North Face® and Timberland® brands. The acquisition also provides VF with deeper access to attractive consumer segments and the ability to leverage VF's enterprise platforms and capabilities to enable sustainable long-term growth.
In connection with the acquisition, VF deposited in escrow 605,050 shares of VF Common Stock. The common shares are subject to certain future service requirements and vest over periods of up to four years. For accounting purposes, VF will recognize the stock-based compensation cost for the fair value of these awards of $51.7 million over the vesting periods.
For the three months ended June 2021, Supreme contributed revenues of $145.7 million and net income of $26.3 million. The results of Supreme have been reported in the Active segment since the date of acquisition. Total transaction expenses for the Supreme acquisition were $8.7 million, all of which were recognized in the year ended March 2021 in the selling, general and administrative expenses line item in the Consolidated Statement of Operations.
The allocation of the purchase price is preliminary and subject to change, primarily for certain income tax matters and final adjustments for net working capital. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date.
The following table summarizes the preliminary estimated fair values of the Supreme assets acquired and liabilities assumed at the date of acquisition:
(In thousands)December 28, 2020
Cash and equivalents$218,104 
Accounts receivable19,698 
Inventories44,937 
Other current assets35,091 
Property, plant and equipment18,914 
Intangible asset1,201,000 
Operating lease right-of-use assets55,668 
Other assets58,479 
Total assets acquired1,651,891 
Accounts payable25,717 
Other current liabilities78,205 
Operating lease liabilities53,062 
Deferred income tax liabilities275,718 
Other liabilities35,245 
Total liabilities assumed467,947 
Net assets acquired1,183,944 
Goodwill1,250,311 
Purchase price$2,434,255 
VF Corporation Q1 FY22 Form 10-Q 12

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The preliminary purchase price consisted of the following components:
(In thousands)December 28, 2020
Cash consideration$2,227,255 
Contingent consideration207,000 
Purchase price$2,434,255 
The goodwill is attributable to our ability to expand the Supreme® brand into new markets, the acquired workforce and future collaboration opportunities for the Supreme® brand. All of the goodwill was assigned to the Active segment and will not be deductible for tax purposes.
The Supreme® trademark, which management believes to have an indefinite life, has been valued at $1.2 billion using the relief-from-royalty method, which is an income valuation approach. The relief-from-royalty method requires the use of significant estimates and assumptions, including but not limited to, future revenues, growth rates, royalty rate, tax rates and discount rate.
The following unaudited pro forma summary presents consolidated information of VF as if the acquisition of Supreme had occurred on March 31, 2019:
(In thousands, except per share amounts)
Three Months Ended
June 2020
(unaudited)
Total revenues$1,190,285 
Income (loss) from continuing operations(264,463)
Earnings (loss) per common share from continuing operations
Basic$(0.68)
Diluted(0.68)
These pro forma amounts have been calculated after applying VF’s accounting policies and adjusting the results of Supreme to reflect the fair value adjustments to intangible assets, property, plant and equipment and inventory. The results of Supreme have also been adjusted for historical interest expense as the acquired business was debt-free on the acquisition date. These changes have been applied from March 31, 2019, with related tax effects.
Pro forma financial information is not necessarily indicative of VF’s operating results if the acquisition had been effected at the date indicated, nor is it necessarily indicative of future operating results. Amounts do not include any marketing leverage, or operating efficiencies that VF believes are achievable.
NOTE 5 — 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 the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. As of March 28, 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale.
On June 28, 2021, VF completed the sale of the Occupational Workwear business. The Company received proceeds of $616.5 million, net of cash sold, resulting in an estimated after-tax gain on sale of $145.6 million, which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the three months ended June 2021, and is subject to working capital and other adjustments.
The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations were income of $170.3 million (including an estimated after-tax gain on sale of $145.6 million) and a loss of $7.9 million for the three months ended June 2021 and June 2020, respectively.
Under the terms of a transition services agreement, the Company will provide certain support services for periods generally up to 12 months from the closing date of the transaction.
13 VF Corporation Q1 FY22 Form 10-Q

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Summarized Discontinued Operations Financial Information
The following table summarizes the major line items for the Occupational Workwear business that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations:
 Three Months Ended June
(In thousands)20212020
Net revenues
$181,424 $125,333 
Cost of goods sold
117,193 101,470 
Selling, general and administrative expenses
38,735 33,256 
Interest income, net
194 293 
Other income (expense), net
6  
Income (loss) from discontinued operations before income taxes
25,696 (9,100)
Gain on the sale of discontinued operations before income taxes
133,571  
Total income (loss) from discontinued operations before income taxes
159,267 (9,100)
Income tax benefit (a)
(11,006)(1,229)
Income (loss) from discontinued operations, net of tax
$170,273 $(7,871)
(a)Income tax benefit for the three months ended June 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business.
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:
(In thousands)June 2021March 2021June 2020
Cash and equivalents
$ $34,132 $42,986 
Accounts receivable, net
 103,835 64,065 
Inventories
 245,227 258,632 
Other current assets
 8,208 10,027 
Property, plant and equipment, net
 49,394 46,697 
Intangible assets, net
 54,471 54,471 
Goodwill
 43,530 43,530 
Operating lease right-of-use assets
 43,220 39,452 
Other assets
 5,561 5,275 
Total assets of discontinued operations
$ $587,578 $565,135 
Accounts payable
$ $59,965 $27,810 
Accrued liabilities
 38,956 31,134 
Operating lease liabilities
 31,301 34,462 
Other liabilities