VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

LEASES (Tables)

9 Months Ended

Dec. 28, 2019

The assets and liabilities related to operating and finance leases were as follows:



(In thousands)	Location in Consolidated Balance Sheet	December 2019
Assets:
Operating lease assets	Operating lease right-of-use assets	$	1,298,631
Finance lease assets	Property, plant and equipment	22,499
Total lease assets		$	1,321,130

Liabilities:
Current
Operating lease liabilities	Accrued liabilities	$	312,704
Finance lease liabilities	Current portion of long-term debt	4,677
Noncurrent
Operating lease liabilities	Operating lease liabilities	1,052,854
Finance lease liabilities	Long-term debt	24,959
Total lease liabilities		$	1,395,194

Components of Lease Expense

The components of lease costs were as follows:



(In thousands)	Three Months Ended December 2019		Nine Months Ended December 2019
Operating lease cost	$	105,510	$	315,938
Finance lease cost – amortization of right-of-use assets	970		3,002
Finance lease cost – interest on lease liabilities	253		807
Short-term lease cost	672		1,937
Variable lease cost	31,707		89,693
Impairment	3,035		3,035
Gain recognized from sale-leaseback transactions	—		(11,329		)
Total lease cost	$	142,147	$	403,083

Supplemental cash flow information related to leases was as follows:



(In thousands)	Nine Months Ended December 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	320,589
Operating cash flows – finance leases	807
Financing cash flows – finance leases	3,967
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases ^(a)	358,159
Finance leases	—


^(a)	Excludes amounts recorded upon adoption of ASC 842.

Lease terms and discount rates were as follows:



	December 2019
Weighted average remaining lease term:
Operating leases	5.54 years
Finance leases	13.64 years

Weighted average discount rate:
Operating leases	2.43	%
Finance leases	3.12	%

Maturities of Operating Lease Liabilities

Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of December 2019 were as follows:



(In thousands)	Operating Leases		Finance Leases		Total
Remainder of 2020	$	42,116	$	1,006	$	43,122
2021	417,892		6,532		424,424
2022	300,452		1,910		302,362
2023	223,579		1,626		225,205
2024	146,783		1,550		148,333
Thereafter	334,070		23,495		357,565
Total lease payments	1,464,892		36,119		1,501,011
Less: present value adjustment	99,334		6,483		105,817
Present value of lease liabilities	$	1,365,558	$	29,636	$	1,395,194

The Company excluded approximately $295.0 million of leases (undiscounted basis) that have not yet commenced. These leases will commence beginning in Fiscal 2020 with lease terms of 2 to 15 years.

Maturities of Financing Lease Liabilities

Maturities of operating and finance lease liabilities for the next five fiscal years (including the remainder of Fiscal 2020) and thereafter as of December 2019 were as follows:



(In thousands)	Operating Leases		Finance Leases		Total
Remainder of 2020	$	42,116	$	1,006	$	43,122
2021	417,892		6,532		424,424
2022	300,452		1,910		302,362
2023	223,579		1,626		225,205
2024	146,783		1,550		148,333
Thereafter	334,070		23,495		357,565
Total lease payments	1,464,892		36,119		1,501,011
Less: present value adjustment	99,334		6,483		105,817
Present value of lease liabilities	$	1,365,558	$	29,636	$	1,395,194

Schedule of Future Minimum, Operating Leases

Future minimum lease payments under operating leases with noncancelable lease terms in excess of one year from continuing operations as of March 2019, prior to the adoption of ASC 842, were as follows:



(In thousands)	Operating Leases
2020	$	320,224
2021	287,829
2022	212,918
2023	154,920
2024	100,789
Thereafter	251,228
Total lease payments	$	1,327,908