Annual report pursuant to Section 13 and 15(d)

REPORTABLE SEGMENT INFORMATION

v3.21.1
REPORTABLE SEGMENT INFORMATION
 12 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]  
REPORTABLE SEGMENT INFORMATION REPORTABLE SEGMENT INFORMATION
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:
REPORTABLE SEGMENT BRANDS
Outdoor - Outdoor apparel, footwear and equipment
The North Face®
Timberland®
Smartwool®
 Icebreaker®
Altra®
Active - Active apparel, footwear and accessories
Vans®
Supreme®
Kipling®
Napapijri®
Eastpak®
JanSport®
Eagle Creek®
Work - Work and work-inspired lifestyle apparel and footwear
Dickies®
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.

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 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) 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) 2021 2020 2019
Segment revenues:
Outdoor $ 4,127,601  $ 4,643,956  $ 4,649,024 
Active 4,160,856  4,919,427  4,721,792 
Work 945,680  886,419  885,748 
Other 4,693  38,754  10,323 
Total segment revenues $ 9,238,830  $ 10,488,556  $ 10,266,887 
Segment profit:
Outdoor $ 342,212  $ 516,089  $ 544,425 
Active 648,467  1,136,821  1,125,709 
Work 27,141  50,383  67,379 
Other (5,410) (6,485) 3,244 
Total segment profit 1,012,410  1,696,808  1,740,757 
Impairment of goodwill and indefinite-lived intangible assets (a)
(12,400) (323,223) — 
Corporate and other expenses (b)
(417,038) (514,430) (609,714)
Interest expense, net (126,500) (72,175) (92,730)
Loss on debt extinguishment —  (59,772) — 
Income from continuing operations before income taxes $ 456,472  $ 727,208  $ 1,038,313 

(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 and $105.7 million during the years ended March 2020 and 2019, respectively, previously allocated to the Work segment and the former Jeans segment for segment reporting purposes, have been reallocated to continuing operations as discussed in Note 4.
(In thousands) March 2021 March 2020
Segment assets:
Outdoor $ 1,019,244  $ 1,182,148 
Active 1,025,327  1,013,154 
Work 300,927  375,653 
Other 14,361  31,008 
Total segment assets 2,359,859  2,601,963 
Cash and equivalents 815,750  1,369,028 
Short-term investments 598,806  — 
Property, plant and equipment, net 975,876  954,406 
Intangible assets and goodwill 5,454,972  3,010,564 
Operating lease right-of-use assets 1,474,434  1,273,514 
Other assets 1,486,754  1,312,637 
Assets of discontinued operations 587,578  611,139 
Consolidated assets $ 13,754,029  $ 11,133,251 
Year Ended March
(In thousands) 2021 2020 2019
Depreciation and amortization expense:
Outdoor $ 94,841  $ 91,657  $ 82,259 
Active 80,245  80,562  73,395 
Work 20,785  14,856  21,492 
Other 73,210  80,544  78,583 
$ 269,081  $ 267,619  $ 255,729 
Supplemental information (with revenues by geographic area based on the origin of the shipment) is as follows:
Year Ended March
(In thousands) 2021 2020 2019
Total revenues:
U.S. $ 4,635,704  $ 5,520,317  $ 5,346,225 
Foreign, primarily Europe 4,603,126  4,968,239  4,920,662 
$ 9,238,830  $ 10,488,556  $ 10,266,887 
Property, plant and equipment:
U.S. $ 621,777  $ 608,058 
Foreign, primarily Europe 354,099  346,348 
$ 975,876  $ 954,406 
No single customer accounted for 10% or more of the Company’s total revenues in the years ended March 2021, 2020 and 2019.