Annual report [Section 13 and 15(d), not S-K Item 405]

REPORTABLE SEGMENT INFORMATION

v3.25.1
REPORTABLE SEGMENT INFORMATION
 12 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENT INFORMATION REPORTABLE SEGMENT INFORMATION
VF's President and Chief Executive Officer is the Company's CODM. The Company's individual global brands have been determined to be 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:
REPORTABLE SEGMENT BRANDS
Outdoor - Outdoor apparel, footwear and equipment
The North Face®
Timberland®
Altra®
Smartwool®
Icebreaker®
Active - Active apparel, footwear and accessories
Vans®
Kipling®
Napapijri®
Eastpak®
JanSport®
Work - Performance and lifestyle workwear apparel and footwear
Dickies®
Timberland PRO®
Other - included in the table below for purposes of reconciliation of revenues and profit for the year ended March 2023, but it is not considered a reportable segment. Other primarily includes sourcing activities related to transition services.

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, if any, on our reportable segments, operating segments and reporting units.
The primary financial measures used by the CODM to assess performance and allocate resources to VF's segments are segment revenues and segment profit. Segment profit comprises the operating income and other income (expense), net line items of each segment. Segment revenues and segment profit are regularly reviewed by the CODM and compared against historical results, forecast and budget information in order to make decisions about how to allocate capital and other resources to each segment.
Accounting policies used for internal management reporting at the individual segments are consistent with those in Note 1. Corporate costs (other than common costs allocated to the segments), goodwill and indefinite-lived intangible asset impairment charges and net interest expense 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 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 receivable 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 CODM at the segment level.
Financial information for VF’s reportable segments is as follows:
Year Ended March 2025
(In thousands) Outdoor Active Work Total
Revenues $ 5,576,301  $ 3,095,292  $ 833,098  $ 9,504,691 
Less:
Cost of goods sold
 2,627,678  1,312,186  479,116 
SG&A expenses
 2,238,974  1,631,356  301,753 
Other segment items (a)
14,748  1,092  918 
Segment profit 724,397  152,842  53,147  930,386 
Impairment of goodwill and indefinite-lived intangible assets (89,242)
Corporate and other expenses (546,740)
Interest expense, net (b)
(149,243)
Income from continuing operations before income taxes $ 145,161 
(a)For each reportable segment, 'Other segment items' includes insurance recoveries, certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
(b)Interest expense and the related interest rate swap impact for the DDTL, which totaled $31.1 million for the year ended March 2025, were allocated to discontinued operations due to the requirement within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.
Year Ended March 2024
(In thousands) Outdoor
Active
 Work Total
Revenues $ 5,501,399  $ 3,522,740  $ 891,539  $ 9,915,678 
Less:
Cost of goods sold 2,725,279  1,526,110  549,459 
SG&A expenses 2,174,041  1,788,074  324,488 
Other segment items (a)
629  28,973  55 
Segment profit 602,708  237,529  17,647  857,884 
Impairment of goodwill (507,566)
Corporate and other expenses (469,560)
Interest expense, net (b)
(165,679)
Loss from continuing operations before income taxes $ (284,921)
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses. For the Active reportable segment, 'Other segment items' also includes legal settlement gains of $29.1 million. These are all reported in the other income (expense), net line item in the Consolidated Statement of Operations.
(b)Interest expense and the related interest rate swap impact for the DDTL, which totaled $59.1 million for the year ended March 2024, were allocated to discontinued operations due to the requirement within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.
Year Ended March 2023
(In thousands) Outdoor Active Work Total
Segment revenues $ 5,647,526  $ 4,381,506  $ 1,060,179  $ 11,089,211 
Other revenues 148 
Total revenues 11,089,359 
Less:
Cost of goods sold 2,832,821  1,850,371  601,148 
SG&A expenses 2,024,617  1,954,213  337,596 
Other segment items (a)
(4,657) (1,376) (278)
Segment profit 785,431  575,546  121,157  1,482,134 
Other profit (loss) (536)
Corporate and other expenses (600,148)
Interest expense, net (b)
(143,660)
Income from continuing operations before income taxes $ 737,790 
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
(b)Interest expense and the related interest rate swap impact for the DDTL, which totaled $21.9 million for the year ended March 2023, were allocated to discontinued operations due to the requirement within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.
(In thousands) March 2025 March 2024 March 2023
Segment assets:
Outdoor $ 1,592,896  $ 1,544,364  $ 1,936,090 
Active 934,768  955,535  1,271,590 
Work 392,595  452,384  610,798 
Other 28,429  8,869  15,055 
Total segment assets 2,948,688  2,961,152  3,833,533 
Cash and cash equivalents 429,382  656,376  799,441 
Property, plant and equipment, net 720,879  788,992  910,938 
Goodwill and intangible assets, net 2,314,093  2,421,838  2,946,391 
Operating lease right-of-use assets 1,262,319  1,255,074  1,306,199 
Other assets 1,702,175  1,703,664  2,288,643 
Assets of discontinued operations —  1,825,867  1,905,343 
Consolidated assets $ 9,377,536  $ 11,612,963  $ 13,990,488 
Year Ended March
(In thousands) 2025 2024 2023
Depreciation, amortization and other asset write-downs:
Outdoor $ 106,732  $ 103,586  $ 94,448 
Active 62,074  81,911  70,708 
Work 14,736  13,620  12,524 
Other 76,074  108,411  74,246 
$ 259,616  $ 307,528  $ 251,926 
Supplemental information (with revenues by geographic area primarily based on the origin of the shipment) is as follows:
Year Ended March
(In thousands) 2025 2024 2023
Total revenues:
U.S. $ 4,257,971  $ 4,550,988  $ 5,733,168 
Foreign 5,246,720  5,364,690  5,356,191 
$ 9,504,691  $ 9,915,678  $ 11,089,359 
Property, plant and equipment:
U.S. $ 513,627  $ 574,637 
Foreign 207,252  214,355 
$ 720,879  $ 788,992 
No single customer accounted for 10% or more of the Company’s total revenues in the years ended March 2025, 2024 and 2023.