VF Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

REVENUES

REVENUES

12 Months Ended

Mar. 30, 2019

Revenue from Contract with Customer [Abstract]

Performance Obligations

Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. VF has elected the practical expedients to not disclose the transaction price allocated to remaining performance obligations for (i) variable consideration related to sales-based royalty arrangements, and (ii) contracts with an original expected duration of one year or less.

As of March 2019, there are no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and fixed consideration related to future minimum guarantees discussed in Note 1.

For the year ended March 2019, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.

Contract Balances

Accounts receivable represent the Company's unconditional right to receive consideration from a customer and are recorded at net

invoiced amounts, less an estimated allowance for doubtful accounts.

Contract assets are rights to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. Once the Company has an unconditional right to consideration under a contract, amounts are invoiced and contract assets are reclassified to accounts receivable. The Company's primary contract assets relate to sales-based royalty arrangements, which are discussed in more detail within Note 1.

Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's primary contract liabilities relate to gift cards, loyalty programs and sales-based royalty arrangements, which are discussed in more detail within Note 1.

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



(In thousands)	March 2019		At Adoption - April 1, 2018 ^(a)
Accounts receivable, net	$	1,708,796	$	1,408,587
Contract assets ^(b)	4,499		2,600
Contract liabilities ^(c)	32,175		28,252


^(a)	The Company adopted ASC 606 on April 1, 2018. Refer to Note 1 for additional information.


^(b)	Included in the other current assets line item in the Consolidated Balance Sheets.


^(c)	Included in the accrued liabilities and other liabilities line items in the Consolidated Balance Sheets.

For the year ended March 2019, the Company recognized $65.3 million of revenue that was included in the contract liability balance during the year. 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.

Disaggregation of Revenue

The following table shows disaggregation of 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. The wholesale channel includes fees generated from sourcing activities as the customers and point-in-time revenue recognition are similar to other wholesale arrangements. As discussed in Note 1, we adopted the guidance in ASC 606 effective April 1, 2018 using the modified retrospective method of adoption. As a result, revenue reported for the three months ended March 2018 and years ended December 2017 and 2016 have not been presented.



	Year ended March 2019
(In thousands)	Outdoor		Active		Work		Jeans		Other		Total
Channel revenues
Wholesale	$	2,865,630	$	2,460,692	$	1,678,473	$	2,169,088	$	22,343	$	9,196,226
Direct-to-consumer	1,770,580		2,234,053		160,970		289,196		101,715		4,556,514
Royalty	12,814		27,047		22,574		33,485		—		95,920
Total	$	4,649,024	$	4,721,792	$	1,862,017	$	2,491,769	$	124,058	$	13,848,660

Geographic revenues
United States	$	2,246,706	$	2,499,393	$	1,492,548	$	1,763,575	$	124,058	$	8,126,280
International	2,402,318		2,222,399		369,469		728,194		—		5,722,380
Total	$	4,649,024	$	4,721,792	$	1,862,017	$	2,491,769	$	124,058	$	13,848,660