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

LEASES

v3.26.1
LEASES
 12 Months Ended
Mar. 28, 2026
Leases [Abstract]  
LEASES LEASES
The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. All of these leases are operating leases. VF previously had one finance lease for a distribution center that was sold in Fiscal 2026 as part of the Dickies divestiture.
The assets and liabilities related to operating and finance leases were as follows:
(In thousands) Location in Consolidated Balance Sheet March 2026 March 2025
Assets:
Operating lease assets Operating lease right-of-use assets $ 1,320,733  $ 1,262,319 
Finance lease assets Property, plant and equipment, net —  10,584 
Total lease assets $ 1,320,733  $ 1,272,903 
Liabilities:
Current
Operating lease liabilities Current portion of operating lease liabilities $ 333,469  $ 308,741 
Finance lease liabilities Current portion of long-term debt —  1,011 
Noncurrent
Operating lease liabilities Long-term portion of operating lease liabilities 1,119,876  1,079,182 
Finance lease liabilities Long-term debt —  14,039 
Total lease liabilities $ 1,453,345  $ 1,402,973 
The components of lease costs were as follows:
Year Ended March
(In thousands) 2026 2025 2024
Operating lease cost $ 411,339  $ 403,734  $ 410,427 
Finance lease cost – amortization of right-of-use assets 370  917  917 
Finance lease cost – interest on lease liabilities 233  428  457 
Short-term lease cost 21,868  19,014  25,227 
Variable lease cost 127,077  135,721  132,453 
Impairment 5,095  —  12,958 
Gain recognized from sale-leaseback transaction —  (17,434) — 
Total lease cost $ 565,982  $ 542,380  $ 582,439 
Supplemental cash flow information related to leases was as follows:

 Year Ended March
(In thousands) 2026 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases $ 420,411  $ 420,156  $ 424,646 
Operating cash flows – finance leases 233  428  457 
Financing cash flows – finance leases 663  1,109  1,079 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases 393,824  374,707  337,980 
Lease terms and discount rates were as follows:
March 2026 March 2025 March 2024
Weighted average remaining lease term:
Operating leases 6.25 years 6.01 years 6.20 years
Finance leases N/A 11.51 years 12.51 years
Weighted average discount rate:
Operating leases 4.22  % 3.72  % 3.34  %
Finance leases N/A 2.71  % 2.71  %
Maturities of operating lease liabilities for the next five fiscal years and thereafter as of March 2026 were as follows:
(In thousands) Operating Leases
2027 $ 385,808 
2028 317,664 
2029 229,933 
2030 178,417 
2031 136,392 
Thereafter 407,194 
Total lease payments 1,655,408 
Less: present value adjustment 202,063 
Present value of lease liabilities $ 1,453,345 
The Company excluded approximately $103.4 million of leases (undiscounted basis) that have not yet commenced. These leases will commence primarily in Fiscal 2027 with lease terms of 2 to 12 years.
LEASES LEASES
The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. All of these leases are operating leases. VF previously had one finance lease for a distribution center that was sold in Fiscal 2026 as part of the Dickies divestiture.
The assets and liabilities related to operating and finance leases were as follows:
(In thousands) Location in Consolidated Balance Sheet March 2026 March 2025
Assets:
Operating lease assets Operating lease right-of-use assets $ 1,320,733  $ 1,262,319 
Finance lease assets Property, plant and equipment, net —  10,584 
Total lease assets $ 1,320,733  $ 1,272,903 
Liabilities:
Current
Operating lease liabilities Current portion of operating lease liabilities $ 333,469  $ 308,741 
Finance lease liabilities Current portion of long-term debt —  1,011 
Noncurrent
Operating lease liabilities Long-term portion of operating lease liabilities 1,119,876  1,079,182 
Finance lease liabilities Long-term debt —  14,039 
Total lease liabilities $ 1,453,345  $ 1,402,973 
The components of lease costs were as follows:
Year Ended March
(In thousands) 2026 2025 2024
Operating lease cost $ 411,339  $ 403,734  $ 410,427 
Finance lease cost – amortization of right-of-use assets 370  917  917 
Finance lease cost – interest on lease liabilities 233  428  457 
Short-term lease cost 21,868  19,014  25,227 
Variable lease cost 127,077  135,721  132,453 
Impairment 5,095  —  12,958 
Gain recognized from sale-leaseback transaction —  (17,434) — 
Total lease cost $ 565,982  $ 542,380  $ 582,439 
Supplemental cash flow information related to leases was as follows:

 Year Ended March
(In thousands) 2026 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases $ 420,411  $ 420,156  $ 424,646 
Operating cash flows – finance leases 233  428  457 
Financing cash flows – finance leases 663  1,109  1,079 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases 393,824  374,707  337,980 
Lease terms and discount rates were as follows:
March 2026 March 2025 March 2024
Weighted average remaining lease term:
Operating leases 6.25 years 6.01 years 6.20 years
Finance leases N/A 11.51 years 12.51 years
Weighted average discount rate:
Operating leases 4.22  % 3.72  % 3.34  %
Finance leases N/A 2.71  % 2.71  %
Maturities of operating lease liabilities for the next five fiscal years and thereafter as of March 2026 were as follows:
(In thousands) Operating Leases
2027 $ 385,808 
2028 317,664 
2029 229,933 
2030 178,417 
2031 136,392 
Thereafter 407,194 
Total lease payments 1,655,408 
Less: present value adjustment 202,063 
Present value of lease liabilities $ 1,453,345 
The Company excluded approximately $103.4 million of leases (undiscounted basis) that have not yet commenced. These leases will commence primarily in Fiscal 2027 with lease terms of 2 to 12 years.