Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Apr. 02, 2022
Segment Reporting [Abstract]  
The chief operating decision maker allocates resources and assesses performance based on a global brand view which represents VF's operating segments. The operating segments have been evaluated and combined into reportable segments because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. Based on this assessment, the Company's reportable segments have been identified as: Outdoor, Active and Work.
Below is a description of VF's reportable segments and the brands included within each:
Outdoor - Outdoor apparel, footwear and equipment
The North Face®
Active - Active apparel, footwear and accessories
Work - Work and work-inspired lifestyle apparel and footwear
Timberland PRO®
Other - included in the tables below for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other includes results primarily related to the sale of non-VF products and sourcing activities related to transition services.

The results of Supreme have been included in the Active segment since the December 28, 2020 acquisition date.
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. In doing so, it evaluates whether changes may need to be made to our internal reporting structure to better support and assess the operations of our business going forward. If changes are made, we will assess the resulting effect on our reportable segments, operating segments and reporting units, if any.
The primary financial measures used by management to evaluate the financial results of VF's reportable segments are segment revenues and segment profit. Segment profit comprises the operating income and other income (expense), net line items of each segment.
Accounting policies used for internal management reporting at the individual segments are consistent with those in Note 1,
except as stated below. Corporate costs (other than common costs allocated to the segments), goodwill and indefinite-lived intangible asset impairment charges, net interest expense and loss on debt extinguishment are not controlled by segment management and therefore are excluded from the measurement of segment profit. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the segments based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the segments consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs), costs of corporate programs or corporate-managed decisions, and other expenses which include a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of VF’s trademarks and miscellaneous consolidated costs. Defined benefit pension plans in the U.S. are centrally managed. The current year service cost
component of pension cost is allocated to the segments, while the remaining pension cost components are reported in corporate and other expenses.
Segment assets, for internal management purposes, are those used directly in or resulting from the operations of each business, which are accounts receivable and inventories. Segment assets included in the Other category represent
balances primarily related to corporate activities, and are provided for purposes of reconciliation as the Other category is not considered a reportable segment. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the chief operating decision maker at the segment level.
Financial information for VF’s reportable segments is as follows:
Year Ended March
(In thousands) 2022 2021 2020
Segment revenues:
Outdoor $ 5,327,568  $ 4,127,601  $ 4,643,956 
Active 5,380,338  4,160,856  4,919,427 
Work 1,133,149  945,680  886,419 
Other 785  4,693  38,754 
Total segment revenues $ 11,841,840  $ 9,238,830  $ 10,488,556 
Segment profit (loss):
Outdoor $ 795,523  $ 342,212  $ 516,089 
Active 979,746  648,467  1,136,821 
Work 193,492  27,141  50,383 
Other (586) (5,410) (6,485)
Total segment profit 1,968,175  1,012,410  1,696,808 
Impairment of goodwill and indefinite-lived intangible assets (a)
—  (12,400) (323,223)
Corporate and other expenses (b)
(309,817) (417,038) (514,430)
Interest expense, net (131,463) (126,500) (72,175)
Loss on debt extinguishment (3,645) —  (59,772)
Income from continuing operations before income taxes $ 1,523,250  $ 456,472  $ 727,208 

(a)Excludes $8.0 million of impairment charges related to definite-lived intangible assets in the year ended March 2021, which are primarily recorded in the Work segment.
(b)Certain corporate overhead and other costs of $25.2 million during the year ended March 2020, previously allocated to the Work segment for segment reporting purposes, have been reallocated to continuing operations as discussed in Note 4.
(In thousands) March 2022 March 2021
Segment assets:
Outdoor $ 1,307,244  $ 1,019,244 
Active 1,110,691  1,025,327 
Work 436,765  300,927 
Other 31,815  14,361 
Total segment assets 2,886,515  2,359,859 
Cash and equivalents 1,275,943  815,750 
Short-term investments —  598,806 
Property, plant and equipment, net 1,041,777  975,876 
Intangible assets and goodwill 5,394,158  5,454,972 
Operating lease right-of-use assets 1,247,056  1,474,434 
Other assets 1,496,759  1,486,754 
Assets of discontinued operations —  587,578 
Consolidated assets $ 13,342,208  $ 13,754,029 
Year Ended March
(In thousands) 2022 2021 2020
Depreciation and amortization expense:
Outdoor $ 95,860  $ 94,841  $ 91,657 
Active 87,235  80,245  80,562 
Work 14,439  20,785  14,856 
Other 69,401  73,210  80,544 
$ 266,935  $ 269,081  $ 267,619 
Supplemental information (with revenues by geographic area primarily based on the origin of the shipment) is as follows:
Year Ended March
(In thousands) 2022 2021 2020
Total revenues:
U.S. $ 6,178,300  $ 4,635,704  $ 5,520,317 
Foreign 5,663,540  4,603,126  4,968,239 
$ 11,841,840  $ 9,238,830  $ 10,488,556 
Property, plant and equipment:
U.S. $ 716,952  $ 621,777 
Foreign 324,825  354,099 
$ 1,041,777  $ 975,876 
No single customer accounted for 10% or more of the Company’s total revenues in the years ended March 2022, 2021 and 2020.