VFC filing — read by section

Item 1. Financial Statements

ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED). 

 
 VF CORPORATION 
 Consolidated Balance Sheets 
 (Unaudited) 
 
 (In thousands, except share amounts) December 2024 March 2024 December 2023 
 ASSETS 
 Current assets 
 Cash and equivalents 
 $ 1,369,376 $ 656,376 $ 975,937 
 Accounts receivable, less allowance for doubtful accounts of: December 2024 - $ 34,678 ; March 2024 - $ 26,369 ; December 2023 - $ 29,971 
 1,343,286 1,263,329 1,305,963 
 Inventories 
 1,794,517 1,697,823 2,094,222 
 
 Other current assets 
 514,301 493,194 462,456 
 
 Current assets of discontinued operations 
 — 116,225 97,348 
 Total current assets 5,021,480 4,226,947 4,935,926 
 Property, plant and equipment, net 
 718,481 788,992 881,401 
 Intangible assets, net 
 1,706,741 1,776,482 1,784,745 
 Goodwill 
 634,360 645,356 903,986 
 Operating lease right-of-use assets 
 1,268,425 1,255,074 1,242,898 
 Other assets 
 1,204,735 1,210,470 1,161,464 
 Other assets of discontinued operations 
 — 1,709,642 1,706,054 
 TOTAL ASSETS $ 10,554,222 $ 11,612,963 $ 12,616,474 
 LIABILITIES AND STOCKHOLDERS’ EQUITY 
 Current liabilities 
 Short-term borrowings 
 $ 12,807 $ 263,938 $ 452,286 
 Current portion of long-term debt 
 750,504 1,000,721 1,000,596 
 Accounts payable 
 1,007,814 788,477 950,469 
 Accrued liabilities 
 1,455,786 1,323,982 1,514,281 
 
 Current liabilities of discontinued operations 
 — 79,861 79,651 
 Total current liabilities 3,226,911 3,456,979 3,997,283 
 Long-term debt 
 3,884,564 4,702,284 4,755,252 
 Operating lease liabilities 
 1,103,594 1,087,304 1,068,101 
 Other liabilities 
 658,923 636,090 618,464 
 Other liabilities of discontinued operations 
 — 71,941 68,181 
 Total liabilities 8,873,992 9,954,598 10,507,281 
 Commitments and contingencies 
 
 Stockholders’ equity 
 Preferred Stock, par value $ 1 ; shares authorized, 25,000,000 ; no shares outstanding at December 2024, March 2024 or December 2023 
 — — — 
 Common Stock, stated value $ 0.25 ; shares authorized, 1,200,000,000 ; shares outstanding at December 2024 - 389,541,568 ; March 2024 - 388,836,219 ; December 2023 - 388,819,204 
 97,385 97,209 97,205 
 Additional paid-in capital 
 3,554,724 3,600,071 3,619,654 
 Accumulated other comprehensive loss 
 ( 951,485 ) ( 1,064,331 ) ( 1,051,373 ) 
 Accumulated deficit 
 ( 1,020,394 ) ( 974,584 ) ( 556,293 ) 
 Total stockholders’ equity 1,680,230 1,658,365 2,109,193 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,554,222 $ 11,612,963 $ 12,616,474 

 
 
 See notes to consolidated financial statements. 
 3 VF Corporation Q3 FY25 Form 10-Q 

 
 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Operations 
 (Unaudited) 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands, except per share amounts) 2024 2023 2024 2023 
 Net revenues 
 $ 2,833,912 $ 2,780,194 $ 7,360,920 $ 7,668,380 
 Costs and operating expenses 
 
 Cost of goods sold 
 1,238,738 1,261,188 3,419,511 3,631,016 
 Selling, general and administrative expenses 
 1,318,397 1,353,152 3,513,749 3,550,820 
 Impairment of goodwill and intangible assets 
 51,000 257,096 51,000 257,096 
 Total costs and operating expenses 
 2,608,135 2,871,436 6,984,260 7,438,932 
 Operating income (loss) 
 225,777 ( 91,242 ) 376,660 229,448 
 Interest income 
 6,826 3,565 13,899 13,230 
 Interest expense 
 ( 43,342 ) ( 52,661 ) ( 134,050 ) ( 139,013 ) 
 
 Other income (expense), net 
 7,408 29,004 5,262 23,178 
 Income (loss) from continuing operations before income taxes 
 196,669 ( 111,334 ) 261,771 126,843 
 Income tax expense (benefit) 
 27,560 ( 19,598 ) 42,180 733,196 
 Income (loss) from continuing operations 
 169,109 ( 91,736 ) 219,591 ( 606,353 ) 
 Income (loss) from discontinued operations, net of tax 
 ( 1,329 ) 49,284 ( 258,519 ) 55,779 
 Net income (loss) $ 167,780 $ ( 42,452 ) $ ( 38,928 ) $ ( 550,574 ) 
 Earnings (loss) per common share - basic 
 
 Continuing operations 
 $ 0.43 $ ( 0.24 ) $ 0.56 $ ( 1.56 ) 
 Discontinued operations 
 — 0.13 ( 0.66 ) 0.14 
 Total earnings (loss) per common share - basic $ 0.43 $ ( 0.11 ) $ ( 0.10 ) $ ( 1.42 ) 
 Earnings (loss) per common share - diluted 
 Continuing operations 
 $ 0.43 $ ( 0.24 ) $ 0.56 $ ( 1.56 ) 
 Discontinued operations 
 — 0.13 ( 0.66 ) 0.14 
 Total earnings (loss) per common share - diluted 
 $ 0.43 $ ( 0.11 ) $ ( 0.10 ) $ ( 1.42 ) 
 Weighted average shares outstanding 
 
 Basic 
 389,218 388,383 389,001 388,294 
 Diluted 
 393,908 388,383 391,435 388,294 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See notes to consolidated financial statements. 
 VF Corporation Q3 FY25 Form 10-Q 4 

 
 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Comprehensive Income (Loss) 
 (Unaudited) 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Net income (loss) 
 $ 167,780 $ ( 42,452 ) $ ( 38,928 ) $ ( 550,574 ) 
 Other comprehensive income (loss) 
 
 Foreign currency translation and other 
 
 Gains (losses) arising during the period 
 ( 14,877 ) ( 4,373 ) ( 35,169 ) ( 3,809 ) 
 Reclassification of foreign currency translation losses 
 75,293 — 75,293 — 
 Income tax effect 
 ( 36,996 ) 25,609 ( 18,259 ) 6,607 
 Defined benefit pension plans 
 
 Current period actuarial gains (losses) — ( 4,046 ) — 697 
 Amortization of net deferred actuarial losses 
 5,049 4,106 15,146 12,508 
 Amortization of deferred prior service credits 
 ( 148 ) ( 136 ) ( 442 ) ( 408 ) 
 Reclassification of net actuarial loss from settlement charges 
 — 131 — 3,430 
 Reclassification of deferred prior service cost due to curtailments 
 ( 638 ) — ( 638 ) — 
 Income tax effect 
 ( 1,169 ) ( 118 ) ( 3,726 ) ( 4,236 ) 
 Derivative financial instruments 
 
 Gains (losses) arising during the period 
 104,729 ( 73,375 ) 70,315 ( 36,220 ) 
 Income tax effect 
 ( 16,661 ) 11,790 ( 14,300 ) 6,076 
 Reclassification of net (gains) losses realized 
 5,372 912 29,786 ( 20,006 ) 
 Income tax effect 
 ( 859 ) ( 168 ) ( 5,160 ) 3,506 
 Other comprehensive income (loss) 
 119,095 ( 39,668 ) 112,846 ( 31,855 ) 
 Comprehensive income (loss) 
 $ 286,875 $ ( 82,120 ) $ 73,918 $ ( 582,429 ) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See notes to consolidated financial statements. 
 5 VF Corporation Q3 FY25 Form 10-Q 

 
 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Cash Flows 
 (Unaudited) 
 
 Nine Months Ended December 
 
 (In thousands) 2024 2023 
 OPERATING ACTIVITIES 
 Net loss 
 $ ( 38,928 ) $ ( 550,574 ) 
 Income (loss) from discontinued operations, net of tax 
 ( 258,519 ) 55,779 
 Income (loss) from continuing operations, net of tax 
 219,591 ( 606,353 ) 
 Adjustments to reconcile net loss to cash provided by operating activities: 
 
 Impairment of goodwill and intangible assets 
 51,000 257,096 
 Depreciation and amortization 
 186,468 222,746 
 Reduction in the carrying amount of right-of-use assets 
 266,823 272,145 
 Stock-based compensation 
 52,619 43,576 
 Provision for doubtful accounts 
 14,178 7,157 
 Pension expense in excess of (less than) contributions 
 4,276 ( 10,691 ) 
 Deferred income taxes 
 ( 15,014 ) ( 258,284 ) 
 Write-off of income tax receivables and interest 
 — 921,409 
 
 Other, net 
 ( 15,993 ) ( 10,280 ) 
 Changes in operating assets and liabilities: 
 
 Accounts receivable 
 ( 126,720 ) 301,500 
 Inventories 
 ( 135,156 ) 145,836 
 Accounts payable 
 228,241 40,120 
 Income taxes 
 ( 66,172 ) ( 203,261 ) 
 Accrued liabilities 
 177,794 177,632 
 Operating lease right-of-use assets and liabilities 
 ( 262,746 ) ( 269,819 ) 
 Other assets and liabilities 
 30,356 ( 55,358 ) 
 Cash provided by operating activities - continuing operations 
 609,545 975,171 
 Cash provided by operating activities - discontinued operations 
 26,747 130,576 
 Cash provided by operating activities 
 636,292 1,105,747 
 INVESTING ACTIVITIES 
 
 Proceeds from sale of business, net of cash sold 
 1,485,951 — 
 Proceeds from sale of assets 
 88,062 381 
 
 
 Capital expenditures 
 ( 64,299 ) ( 114,539 ) 
 Software purchases 
 ( 29,202 ) ( 50,478 ) 
 Other, net 
 ( 30,026 ) ( 19,862 ) 
 Cash provided (used) by investing activities - continuing operations 
 1,450,486 ( 184,498 ) 
 Cash used by investing activities - discontinued operations 
 ( 4,413 ) ( 7,496 ) 
 Cash provided (used) by investing activities 
 1,446,073 ( 191,994 ) 
 FINANCING ACTIVITIES 
 
 Net increase (decrease) in short-term borrowings 
 ( 251,131 ) 443,494 
 Payments on long-term debt 
 ( 1,000,829 ) ( 907,926 ) 
 Payment of debt issuance costs 
 — ( 576 ) 
 
 
 Cash dividends paid 
 ( 105,094 ) ( 268,155 ) 
 Proceeds from issuance of Common Stock, net of payments for tax withholdings 
 ( 2,628 ) ( 2,603 ) 
 
 Cash used by financing activities 
 ( 1,359,682 ) ( 735,766 ) 
 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 
 ( 28,331 ) ( 4,984 ) 
 Net change in cash, cash equivalents and restricted cash 
 694,352 173,003 
 Cash, cash equivalents and restricted cash – beginning of year 
 676,957 816,319 
 Cash, cash equivalents and restricted cash – end of period 
 $ 1,371,309 $ 989,322 

 Continued on next page. 
 See notes to consolidated financial statements. 
 VF Corporation Q3 FY25 Form 10-Q 6 

 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Cash Flows 
 (Unaudited) 
 
 Nine Months Ended December 
 
 (In thousands) 2024 2023 
 Balances per Consolidated Balance Sheets: 
 Cash and cash equivalents $ 1,369,376 $ 975,937 
 Other current assets 1,933 1,186 
 Current and other assets of discontinued operations — 12,190 
 Other assets — 9 
 Total cash, cash equivalents and restricted cash $ 1,371,309 $ 989,322 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See notes to consolidated financial statements. 
 7 VF Corporation Q3 FY25 Form 10-Q 

 
 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Stockholders’ Equity 
 (Unaudited) 
 
 Three Months Ended December 2024 
 Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit 
 Common Stock 
 (In thousands, except share amounts) Shares Amounts Total 
 Balance, September 2024 389,283,419 $ 97,321 $ 3,565,198 $ ( 1,070,580 ) $ ( 1,185,572 ) $ 1,406,367 
 Net income (loss) 
 — — — — 167,780 167,780 
 Dividends on Common Stock ($ 0.09 per share) 
 — — ( 35,046 ) — — ( 35,046 ) 
 
 Stock-based compensation, net 
 258,149 64 24,572 — ( 2,602 ) 22,034 
 Foreign currency translation and other 
 — — — 23,420 — 23,420 
 Defined benefit pension plans 
 — — — 3,094 — 3,094 
 Derivative financial instruments 
 — — — 92,581 — 92,581 
 Balance, December 2024 389,541,568 $ 97,385 $ 3,554,724 $ ( 951,485 ) $ ( 1,020,394 ) $ 1,680,230 
 
 Three Months Ended December 2023 
 Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit 
 Common Stock 
 (In thousands, except share amounts) Shares Amounts Total 
 Balance, September 2023 388,883,825 $ 97,221 $ 3,638,029 $ ( 1,011,705 ) $ ( 513,500 ) $ 2,210,045 
 Net income (loss) 
 — — — — ( 42,452 ) ( 42,452 ) 
 Dividends on Common Stock ($ 0.09 per share) 
 — — ( 34,983 ) — — ( 34,983 ) 
 
 Stock-based compensation, net 
 ( 64,621 ) ( 16 ) 16,608 — ( 341 ) 16,251 
 Foreign currency translation and other 
 — — — 21,236 — 21,236 
 Defined benefit pension plans 
 — — — ( 63 ) — ( 63 ) 
 Derivative financial instruments 
 — — — ( 60,841 ) — ( 60,841 ) 
 Balance, December 2023 388,819,204 $ 97,205 $ 3,619,654 $ ( 1,051,373 ) $ ( 556,293 ) $ 2,109,193 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Continued on next page. 
 
 
 See notes to consolidated financial statements. 
 
 
 VF Corporation Q3 FY25 Form 10-Q 8 

 Table of Contents 

 VF CORPORATION 
 Consolidated Statements of Stockholders’ Equity 
 (Unaudited) 
 
 
 
 Nine Months Ended December 2024 
 Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit 
 Common Stock 
 (In thousands, except share amounts) Shares Amounts Total 
 Balance, March 2024 388,836,219 $ 97,209 $ 3,600,071 $ ( 1,064,331 ) $ ( 974,584 ) $ 1,658,365 
 Net income (loss) 
 — — — — ( 38,928 ) ( 38,928 ) 
 Dividends on Common Stock ($ 0.27 per share) 
 — — ( 105,094 ) — — ( 105,094 ) 
 
 Stock-based compensation, net 
 705,349 176 59,747 — ( 6,882 ) 53,041 
 Foreign currency translation and other 
 — — — 21,865 — 21,865 
 Defined benefit pension plans 
 — — — 10,340 — 10,340 
 Derivative financial instruments 
 — — — 80,641 — 80,641 
 Balance, December 2024 389,541,568 $ 97,385 $ 3,554,724 $ ( 951,485 ) $ ( 1,020,394 ) $ 1,680,230 
 
 Nine Months Ended December 2023 
 Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit 
 Common Stock 
 (In thousands, except share amounts) Shares Amounts Total 
 Balance, March 2023 388,665,531 $ 97,166 $ 3,775,979 $ ( 1,019,518 ) $ 57,086 $ 2,910,713 
 Net income (loss) 
 — — — — ( 550,574 ) ( 550,574 ) 
 Dividends on Common Stock ($ 0.69 per share) 
 — — ( 211,069 ) — ( 57,086 ) ( 268,155 ) 
 
 Stock-based compensation, net 
 153,673 39 54,744 — ( 5,719 ) 49,064 
 Foreign currency translation and other 
 — — — 2,798 — 2,798 
 Defined benefit pension plans 
 — — — 11,991 — 11,991 
 Derivative financial instruments 
 — — — ( 46,644 ) — ( 46,644 ) 
 Balance, December 2023 388,819,204 $ 97,205 $ 3,619,654 $ ( 1,051,373 ) $ ( 556,293 ) $ 2,109,193 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See notes to consolidated financial statements. 
 9 VF Corporation Q3 FY25 Form 10-Q 

 
 Table of Contents 

 VF CORPORATION 
 Notes to Consolidated Financial Statements 
 (Unaudited) 
 
 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS PAGE NUMBER 
 
 NOTE 1 Basis of Presentation 
 11 
 
 NOTE 2 Recently Adopted and Issued Accounting Standards 
 11 
 
 NOTE 3 Revenues 
 12 
 
 NOTE 4 Discontinued Operations 
 14 
 
 NOTE 5 Inventories 
 15 
 
 NOTE 6 Intangible Assets 
 16 
 
 NOTE 7 Goodwill 
 16 
 
 NOTE 8 Leases 
 16 
 
 NOTE 9 Supply Chain Financing Program 
 17 
 
 NOTE 10 Pension Plans 
 17 
 
 NOTE 11 Capital and Accumulated Other Comprehensive Loss 
 17 
 
 NOTE 12 Stock-based Compensation 
 20 
 
 NOTE 13 Income Taxes 
 20 
 
 NOTE 14 Reportable Segment Information 
 21 
 
 NOTE 15 Earnings (Loss) Per Share 
 22 
 
 NOTE 16 Fair Value Measurements 
 22 
 
 NOTE 17 Derivative Financial Instruments and Hedging Activities 
 24 
 
 NOTE 18 Restructuring 
 26 
 
 NOTE 19 Subsequent Event 
 28 
 

 VF Corporation Q3 FY25 Form 10-Q 10 

 
 Table of Contents 

 NOTE 1 — BASIS OF PRESENTATION 
 
 
 Fiscal Year 
 VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company's current fiscal year runs from March 31, 2024 through March 29, 2025 (“Fiscal 2025”). Accordingly, this Form 10-Q presents our third quarter of Fiscal 2025. For presentation purposes herein, all references to periods ended December 2024 and December 2023 relate to the fiscal periods ended on December 28, 2024 and December 30, 2023, respectively. References to March 2024 relate to information as of March 30, 2024. 
 Basis of Presentation 
 On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement (the "Purchase Agreement") with EssilorLuxottica S.A. to sell the Supreme ® brand business ("Supreme"). On October 1, 2024, VF completed the sale of Supreme. During the second quarter of Fiscal 2025, the Company determined that Supreme met the held-for-sale and discontinued operations accounting criteria. Accordingly, VF has reported the results of Supreme and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented. 
 Unless otherwise noted, discussion within these notes to the interim consolidated financial statements relates to continuing operations. Refer to Note 4 for additional information on discontinued operations. 
 
 
 Certain prior year amounts have been reclassified to conform to 
 the Fiscal 2025 presentation. 
 The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the March 2024 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and nine months ended December 2024 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2025. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended March 30, 2024 (“Fiscal 2024 Form 10-K”). 
 Use of Estimates 
 In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. Actual results may differ from those estimates. 
 

 NOTE 2 — RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS 
 
 Recently Adopted Accounting Standards 
 In September 2022, the Financial Accounting Standards Board (" FASB") issued A ccounting Standards Update ("ASU") No. 2022-04, " Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ". This guidance requires companies with supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of the financial statements to understand the nature of, activity in, and potential magnitude of the program. The guidance became effective for VF in the first quarter of Fiscal 2024, except for the rollforward information that will be effective for annual periods beginning in Fiscal 2025 on a prospective basis. The Company adopted the required guidance in the first quarter of Fiscal 2024 and will disclose the rollforward information in our Annual Report on Form 10-K for Fiscal 2025. Refer to Note 9 for disclosures related to the Company's supply chain financing program. 
 Recently Issued Accounting Standards 
 In November 2023, the FASB issued ASU No. 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are regularly provided to the individual or group identified as the chief operating decision maker ("CODM"). The guidance also requires disclosure of the 

 
 title and position of the CODM and how reported measures of segment profit or loss are used to assess performance and allocate resources. The guidance will be effective for annual disclosures beginning in Fiscal 2025, and has expanded requirements to include all disclosures about a reportable segment's profit or loss and assets in subsequent interim periods. Early adoption is permitted. The guidance requires retrospective application to all prior periods presented in the financial statements. The Company will include the additional disclosures in our Form 10-K for Fiscal 2025. 
 In December 2023, the FASB issued ASU No. 2023-09, " Income Taxes (Topic 740): Improvements to Income Tax Disclosures" , which is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The rate reconciliation disclosures will require specific categories and additional information for reconciling items that meet a quantitative threshold. The income taxes paid disclosures will require disaggregation by individual jurisdictions that are greater than 5% of total income taxes paid. The guidance will be effective for annual disclosures beginning in Fiscal 2026. Early adoption is permitted. The amendments are required to be applied on a prospective basis; however, retrospective application is permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. 

 11 VF Corporation Q3 FY25 Form 10-Q 

 Table of Contents 

 In November 2024, the FASB issued ASU No. 2024-03, " Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" , which is intended to enhance expense disclosures by requiring additional disaggregation of certain costs and expenses, on an interim and annual basis, 

 
 within the footnotes to the financial statements. The guidance will be effective for annual disclosures beginning in Fiscal 2028 and subsequent interim periods. Early adoption is permitted and the amendments may be applied either prospectively or retrospectively. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures. 
 

 NOTE 3 — REVENUES 
 Contract Balances 
 The following table provides information about contract assets and contract liabilities: 
 
 (In thousands) December 2024 March 2024 December 2023 
 Contract assets (a) 
 $ 1,757 $ 2,393 $ 1,877 
 Contract liabilities (b) 
 68,820 66,130 66,903 

 (a) Included in the other current assets line item in the Consolidated Balance Sheets. 
 (b) Included in the accrued liabilities line item in the Consolidated Balance Sheets. 
 
 
 For the three and nine months ended December 2024, the Company recognized $ 61.9 million and $ 159.3 million, respectively, of revenue, which, for the nine months ended December 2024 included the majority of the contract liability balance at the beginning of the year, and, for both periods, included amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. The change in the contract asset and contract liability balances primarily results from timing differences between the Company's satisfaction of performance obligations and the customer's payment. 
 Performance Obligations 
 As of December 2024, the Company expects to recognize $ 61.0 million of fixed consideration related to the future minimum 

 
 guarantees in effect under its licensing agreements and expects such amounts to be recognized over time based on the contractual terms through March 2031. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less. 
 As of December 2024, there were no arrang ements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and the fixed consideration related to future minimum guarantees discussed above. 

 Disaggregation of Revenues 
 The following tables disaggregate 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. 
 
 Three Months Ended December 2024 
 (In thousands) Outdoor Active Work Total 
 Channel revenues 
 Wholesale $ 785,883 $ 305,803 $ 159,251 $ 1,250,937 
 Direct-to-consumer 1,060,997 454,254 50,318 1,565,569 
 Royalty 4,266 6,250 6,890 17,406 
 Total $ 1,851,146 $ 766,307 $ 216,459 $ 2,833,912 
 
 Geographic revenues 
 Americas $ 864,838 $ 457,417 $ 184,467 $ 1,506,722 
 Europe 643,699 233,423 17,120 894,242 
 Asia-Pacific 342,609 75,467 14,872 432,948 
 Total $ 1,851,146 $ 766,307 $ 216,459 $ 2,833,912 

 VF Corporation Q3 FY25 Form 10-Q 12 

 Table of Contents 

 
 Three Months Ended December 2023 
 (In thousands) Outdoor Active Work Total 
 Channel revenues 
 Wholesale $ 734,130 $ 264,531 $ 157,841 $ 1,156,502 
 Direct-to-consumer 999,694 548,465 58,038 1,606,197 
 Royalty 4,755 6,311 6,429 17,495 
 Total $ 1,738,579 $ 819,307 $ 222,308 $ 2,780,194 
 
 Geographic revenues 
 Americas $ 821,506 $ 478,584 $ 185,916 $ 1,486,006 
 Europe 622,377 237,800 22,829 883,006 
 Asia-Pacific 294,696 102,923 13,563 411,182 
 Total $ 1,738,579 $ 819,307 $ 222,308 $ 2,780,194 

 
 Nine Months Ended December 2024 
 (In thousands) Outdoor Active Work Total 
 Channel revenues 
 Wholesale $ 2,432,704 $ 1,183,914 $ 475,888 $ 4,092,506 
 Direct-to-consumer 1,857,145 1,246,247 118,069 3,221,461 
 Royalty 10,168 19,811 16,974 46,953 
 Total $ 4,300,017 $ 2,449,972 $ 610,931 $ 7,360,920 
 
 Geographic revenues 
 Americas $ 1,941,332 $ 1,397,707 $ 499,240 $ 3,838,279 
 Europe 1,559,750 806,094 70,289 2,436,133 
 Asia-Pacific 798,935 246,171 41,402 1,086,508 
 Total $ 4,300,017 $ 2,449,972 $ 610,931 $ 7,360,920 

 
 Nine Months Ended December 2023 
 (In thousands) Outdoor Active Work Total 
 Channel revenues 
 Wholesale $ 2,499,604 $ 1,163,797 $ 496,630 $ 4,160,031 
 Direct-to-consumer 1,769,098 1,552,244 137,649 3,458,991 
 Royalty 13,253 19,173 16,932 49,358 
 Total $ 4,281,955 $ 2,735,214 $ 651,211 $ 7,668,380 
 
 Geographic revenues 
 Americas $ 2,021,660 $ 1,562,861 $ 526,355 $ 4,110,876 
 Europe 1,567,804 846,479 75,776 2,490,059 
 Asia-Pacific 692,491 325,874 49,080 1,067,445 
 Total $ 4,281,955 $ 2,735,214 $ 651,211 $ 7,668,380 

 13 VF Corporation Q3 FY25 Form 10-Q 

 
 Table of Contents 

 NOTE 4 — DISCONTINUED OPERATIONS 
 
 
 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. 
 Supreme 
 On July 16, 2024, VF entered into a Purchase Agreement with EssilorLuxottica S.A. to sell Supreme for an aggregate base purchase price of $ 1.500 billion, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses as more fully set forth in the Purchase Agreement. On October 1, 2024, VF completed the sale of Supreme. VF received proceeds of $ 1.486 billion, net of cash sold and subject to post-closing adjustments, resulting in an estimated after-tax loss on sale of $ 127.5 million, which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the nine months ended December 2024. An increase in the estimated after-tax loss on sale of $ 2.7 million was included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations for the three months ended December 2024. VF used a portion of the net cash proceeds to prepay $ 1.0 billion of its delayed draw Term Loan ("DDTL") pursuant to the terms of the DDTL Agreement, as amended, which required repayment within ten business days of VF’s receipt of the net cash proceeds from the sale of Supreme, and to repay $ 450.0 million of commercial paper borrowings upon maturity during the three months ended December 2024. 
 During the second quarter of Fiscal 2025, the Company determined that Supreme met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of Supreme and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented. 

 
 The results of Supreme were previously reported in the Active segment. The results of Supreme recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations were losses of $ 1.3 million (including a $ 2.7 million increase to the estimated after-tax loss on sale) and $ 258.5 million (including the estimated after-tax loss on sale of $ 127.5 million and goodwill and intangible asset impairment charges of $ 145.0 million) for the three and nine months ended December 2024, respectively, and income of $ 49.3 million and $ 55.8 million for the three and nine months ended December 2023 , respectively. 
 During the first quarter of Fiscal 2025, VF determined that a triggering event had occurred requiring impairment testing of the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset. As a result of the impairment testing performed, VF recorded impairment charges of $ 94.0 million and $ 51.0 million to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset, respectively. 
 Under the terms of a transition services agreement, the Company will provide certain post-closing accounting, tax, treasury, digital technology, supply chain and human resource services on a transitional basis for periods generally up to 12 months from the closing date of the transaction. Under the terms of a secondment agreement, certain employees associated with the Supreme business will remain employees of VF and work exclusively in support of Supreme, and at Supreme's expense, through the end of Fiscal 2025. 
 Certain corporate overhead costs and segment costs previously allocated to the Supreme brand for segment reporting purposes did not qualify for classification within discontinued operations and have been allocated to continuing operations. In addition, interest expense and the related interest rate swap impact for the DDTL were reallocated to discontinued operations due to the requirement within the DDTL Agreement, as amended, that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme. 

 VF Corporation Q3 FY25 Form 10-Q 14 

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 Summarized Discontinued Operations Financial Information 
 The following table summarizes the major line items for Supreme that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Net revenues $ 5,030 $ 180,089 $ 244,524 $ 412,478 
 Cost of goods sold 1,571 66,683 95,520 161,152 
 Selling, general and administrative expenses 1,438 54,396 109,991 159,071 
 Impairment of goodwill and intangible assets — — 145,000 — 
 Interest expense, net (a) 
 — ( 14,242 ) ( 30,767 ) ( 42,918 ) 
 Other income (expense), net — 1,025 ( 17 ) ( 226 ) 
 Income (loss) from discontinued operations before income taxes 2,021 45,793 ( 136,771 ) 49,111 
 Estimated loss on the sale of discontinued operations before income taxes ( 2,656 ) — ( 135,194 ) — 
 Total income (loss) from discontinued operations before income taxes ( 635 ) 45,793 ( 271,965 ) 49,111 
 Income tax expense (benefit) 694 ( 3,491 ) ( 13,446 ) ( 6,668 ) 
 Income (loss) from discontinued operations, net of tax $ ( 1,329 ) $ 49,284 $ ( 258,519 ) $ 55,779 

 (a) As noted above, interest expense and the related interest rate swap im pact for the DDTL were realloc ated to discontinued operations. 
 The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations as of March 2024 and December 2023 . 
 
 (In thousands) March 2024 December 2023 
 Cash and equivalents $ 18,229 $ 12,069 
 Accounts receivable, net 10,636 8,176 
 Inventories 68,543 53,997 
 Other current assets 18,817 23,106 
 Property, plant and equipment, net 34,894 31,983 
 Intangible assets, net 852,000 852,000 
 Goodwill 815,058 819,652 
 Operating lease right-of-use assets 75,287 71,408 
 Other assets 19,882 20,271 
 Deferred income tax assets (a) 
 ( 87,479 ) ( 89,260 ) 
 
 Total assets of discontinued operations $ 1,825,867 $ 1,803,402 
 
 
 Accounts payable $ 28,651 $ 24,375 
 Accrued liabilities 51,210 55,276 
 Operating lease liabilities 69,554 65,648 
 Other liabilities 2,387 2,533 
 
 Total liabilities of discontinued operations $ 151,802 $ 147,832 

 (a) Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. 
 
 NOTE 5 — INVENTORIES 
 
 (In thousands) December 2024 March 2024 December 2023 
 Finished products $ 1,756,117 $ 1,658,168 $ 2,050,549 
 Work-in-process 38,284 39,539 43,453 
 Raw materials 116 116 220 
 Total inventories $ 1,794,517 $ 1,697,823 $ 2,094,222 

 15 VF Corporation Q3 FY25 Form 10-Q 

 
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 NOTE 6 — INTANGIBLE ASSETS 
 
 December 2024 March 2024 
 (In thousands) Weighted
Average
Amortization
Period Amortization
Method Cost Accumulated
Amortization Net
Carrying
Amount Net
Carrying
Amount 
 Amortizable intangible assets: 
 Customer relationships and other 19 years Accelerated $ 259,195 $ 194,883 $ 64,312 $ 74,963 
 
 
 
 Indefinite-lived intangible assets: 
 Trademarks and trade names 1,642,429 1,701,519 
 Intangible assets, net $ 1,706,741 $ 1,776,482 

 
 
 During the three months ended December 2024, VF performed an interim impairment analysis of the Dickies indefinite-lived trademark intangible asset and recorded an impairment charge of $ 51.0 million to reduce the carrying value to fair value. Refer to Note 16 for additional information on fair value measurements. 

 
 Amortization expense for the three and nine months ended December 2024 was $ 3.3 million and $ 10.0 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2025 is $ 13.1 million, $ 12.1 million, $ 11.6 million, $ 10.7 million and $ 9.7 million, respectively. 
 

 NOTE 7 — GOODWILL 
 Changes in goodwill are summarized by reportable segment as follows: 
 
 (In thousands) Outdoor Active Work Total 
 Balance, March 2024 $ 205,868 $ 387,988 $ 51,500 $ 645,356 
 
 
 Foreign currency translation ( 1,932 ) ( 9,064 ) — ( 10,996 ) 
 Balance, December 2024 $ 203,936 $ 378,924 $ 51,500 $ 634,360 

 
 
 Accum ulated impairm ent charges for the Outdoor and Work segments were $ 769.0 million and $ 61.8 million, re spectively, a s of December 2024 and March 2024. No impai rment charges were recorded during the nine months ended December 2024 . 
 
 NOTE 8 — LEASES 
 The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease co st, impairment a nd gains recognized from sale leaseback transactions. The components of lease cost were as follows: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Operating lease cost $ 99,998 $ 100,087 $ 304,551 $ 304,533 
 Other lease cost 46,445 44,512 99,555 116,786 
 Total lease cost $ 146,443 $ 144,599 $ 404,106 $ 421,319 

 
 
 During the nine months ended December 2024, the Company entered int o a sale leaseback transaction for certain warehouse real estate and related assets. The transaction qualified as a sale, and thus the Company reco gnized a ga in of $ 15.5 million in the selling, general and administrative ("SG&A") expenses line item in VF's Consolidated Statement of Operations for the nine months ended December 2024. 
 
 

 
 Du ring the nine months ended December 2024 and 2023, the Company paid $ 314.5 million and $ 308.5 million for operating leases, respectively. During the nine months ended December 2024 and 2023, the Company obtained $ 307.8 million and $ 204.8 million of right-of-use assets in exchange for lease liabili ties, respectively. 

 VF Corporation Q3 FY25 Form 10-Q 16 

 
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 NOTE 9 — SUPPLY CHAIN FINANCING PROGRAM 
 
 
 VF facilitates a voluntary supply chain finance ("SCF") program that enables a significant portion of our inventory suppliers to leverage VF's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier. The SCF program is administered through third-party platforms that allow participating suppliers to track payments from VF and elect which receivables, if any, to sell to the financial institutions. The transactions are at the sole discretion of both the suppliers and financial institutions, and VF is not a party to the agreements and has no economic interest in the supplier's decision to sell a receivable. The terms between VF and the supplier, including the amount due and scheduled payment terms (which are generally 

 
 within 90 days of the invoice date), are not impacted by a supplier's participation in the SCF program. All amounts due to suppliers that are eligible to participate in the SCF program are included in the accounts payable line item in VF's Consolidated Balance Sheets and VF payments made under the SCF program are reflected in cash flows from operating activities in VF's Consolidated Statements of Cash Flows. At December 2024, March 2024 and December 2023, the accounts payable line item in VF’s Consolidated Balance Sheets included total outstanding obligations of $ 661.4 million, $ 485.0 million and $ 599.0 million, respectively, due to suppliers that are eligible to participate in the SCF program. 
 

 NOTE 10 — PENSION PLANS 
 The components of pension cost for VF’s defined benefit plans were as follows: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Service cost – benefits earned during the period $ 2,475 $ 2,224 $ 7,381 $ 6,653 
 Interest cost on projected benefit obligations 11,700 11,763 35,095 35,350 
 Expected return on plan assets ( 15,320 ) ( 15,882 ) ( 45,950 ) ( 47,661 ) 
 Settlement charges — 131 — 3,430 
 Curtailments ( 638 ) — ( 638 ) — 
 Amortization of deferred amounts: 
 Net deferred actuarial losses 5,049 4,106 15,146 12,508 
 Deferred prior service credits ( 148 ) ( 136 ) ( 442 ) ( 408 ) 
 Net periodic pension cost $ 3,118 $ 2,206 $ 10,592 $ 9,872 

 
 
 VF has reported the service cost component of net periodic pension cost i n operating income (loss) an d the other components, which include interest cost, expected return on plan assets, settlement charges, curtailments, and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations. 
 VF co ntributed $ 6.3 million to its defined benefit plans during the nine months ended December 2024, and intends to make approximately $ 10.3 million of contributions during the remainder of Fiscal 2025. 

 
 VF recorded $ 0.1 million and $ 3.4 million in settlement charges in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2023, respectively. The settlement charges related to the recognition of deferred actuarial losses resulting from lump-sum payments of retirement benefits in the supplemental defined benefit pension plan. Actuarial assumptions used in the interim valuations were reviewed and revised as appropriate. 
 VF recorded $ 0.6 million in curtailment gains in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2024, related to employee exits from an international plan resulting from restructuring actions. 
 

 NOTE 11 — CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS 
 Common Stock 
 During the nine months ended December 2024, the Company did no t purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased. 
 Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of December 2024, March 2024 or December 2023. The excess of the cost of treasury shares acquired over the $ 0.25 per share stated value of Common Stock is deducted from retained earnings (accumulated deficit). 
 17 VF Corporation Q3 FY25 Form 10-Q 

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 Accumulated Other Comprehensive Loss 
 Comprehensive income (loss) consists of net income (loss) and specified components of other comprehensive income (loss) , which relate to changes in assets and liabilities that are not included in net income (loss) under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income (loss) is presented in the Consolidated Statements of Comprehensive Income (Loss). The deferred components o f other comprehensive income (loss) are reported, net of related income taxes, in accu mulated other comprehensive loss ("OC L") in stockholders’ equity, as follows: 
 
 (In thousands) December 2024 March 2024 December 2023 
 Foreign currency translation and other $ ( 846,574 ) $ ( 868,439 ) $ ( 856,853 ) 
 Defined benefit pension plans ( 171,993 ) ( 182,333 ) ( 155,701 ) 
 Derivative financial instruments 67,082 ( 13,559 ) ( 38,819 ) 
 Accumulated other comprehensive loss $ ( 951,485 ) $ ( 1,064,331 ) $ ( 1,051,373 ) 

 The changes in accumulated OCL, ne t of related taxes, were as follows: 
 
 Three Months Ended December 2024 
 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total 
 Balance, September 2024 $ ( 869,994 ) $ ( 175,087 ) $ ( 25,499 ) $ ( 1,070,580 ) 
 Other comprehensive income (loss) before reclassifications 
 ( 51,873 ) ( 99 ) 88,068 36,096 
 Amounts reclassified from accumulated other comprehensive loss 
 75,293 3,193 4,513 82,999 
 Net other comprehensive income 
 23,420 3,094 92,581 119,095 
 Balance, December 2024 $ ( 846,574 ) $ ( 171,993 ) $ 67,082 $ ( 951,485 ) 

 
 Three Months Ended December 2023 
 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total 
 Balance, September 2023 $ ( 878,089 ) $ ( 155,638 ) $ 22,022 $ ( 1,011,705 ) 
 Other comprehensive income (loss) before reclassifications 
 21,236 ( 3,002 ) ( 61,585 ) ( 43,351 ) 
 Amounts reclassified from accumulated other comprehensive loss 
 — 2,939 744 3,683 
 Net other comprehensive income (loss) 
 21,236 ( 63 ) ( 60,841 ) ( 39,668 ) 
 Balance, December 2023 $ ( 856,853 ) $ ( 155,701 ) $ ( 38,819 ) $ ( 1,051,373 ) 

 
 Nine Months Ended December 2024 
 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total 
 Balance, March 2024 $ ( 868,439 ) $ ( 182,333 ) $ ( 13,559 ) $ ( 1,064,331 ) 
 Other comprehensive income (loss) before reclassifications ( 53,428 ) ( 135 ) 56,015 2,452 
 Amounts reclassified from accumulated other comprehensive loss 
 75,293 10,475 24,626 110,394 
 Net other comprehensive income 
 21,865 10,340 80,641 112,846 
 Balance, December 2024 $ ( 846,574 ) $ ( 171,993 ) $ 67,082 $ ( 951,485 ) 

 VF Corporation Q3 FY25 Form 10-Q 18 

 Table of Contents 

 
 Nine Months Ended December 2023 
 (In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total 
 Balance, March 2023 $ ( 859,651 ) $ ( 167,692 ) $ 7,825 $ ( 1,019,518 ) 
 Other comprehensive income (loss) before reclassifications 
 2,798 762 ( 30,144 ) ( 26,584 ) 
 Amounts reclassified from accumulated other comprehensive loss 
 — 11,229 ( 16,500 ) ( 5,271 ) 
 Net other comprehensive income (loss) 
 2,798 11,991 ( 46,644 ) ( 31,855 ) 
 Balance, December 2023 $ ( 856,853 ) $ ( 155,701 ) $ ( 38,819 ) $ ( 1,051,373 ) 

 Reclassifications out of accumulated OCL were as follows: 
 
 (In thousands) Three Months Ended December Nine Months Ended December 
 Details About Accumulated Other Comprehensive Loss Components Affected Line Item in the Consolidated Statements of Operations 
 
 2024 2023 2024 2023 
 Losses on foreign currency translation and other: 
 Sale of Supreme 
 Income (loss) from discontinued operations, net of tax (a) 
 $ ( 75,293 ) $ — $ ( 75,293 ) $ — 
 Total before tax 
 ( 75,293 ) — ( 75,293 ) — 
 Tax benefit (expense) 
 — — — — 
 Net of tax 
 ( 75,293 ) — ( 75,293 ) — 
 Amortization of defined benefit pension plans: 
 Net deferred actuarial losses 
 Other income (expense), net ( 5,049 ) ( 4,106 ) ( 15,146 ) ( 12,508 ) 
 Deferred prior service credits 
 Other income (expense), net 148 136 442 408 
 
 Pension curtailment gains and settlement charges 
 Other income (expense), net 638 ( 131 ) 638 ( 3,430 ) 
 Total before tax 
 ( 4,263 ) ( 4,101 ) ( 14,066 ) ( 15,530 ) 
 Tax benefit 
 1,070 1,162 3,591 4,301 
 Net of tax 
 ( 3,193 ) ( 2,939 ) ( 10,475 ) ( 11,229 ) 
 Gains (losses) on derivative financial instruments: 
 Foreign exchange contracts 
 Net revenues ( 9,580 ) ( 794 ) ( 21,762 ) ( 220 ) 
 Foreign exchange contracts 
 Cost of goods sold 4,648 ( 2,697 ) ( 9,479 ) 14,777 
 Foreign exchange contracts 
 SG&A expenses 166 833 ( 289 ) 3,141 
 Foreign exchange contracts 
 Other income (expense), net ( 970 ) 536 ( 973 ) ( 725 ) 
 Interest rate contracts 
 Interest expense 364 27 418 81 
 Interest rate contracts 
 Income (loss) from discontinued operations, net of tax — 1,183 2,299 2,952 
 Total before tax 
 ( 5,372 ) ( 912 ) ( 29,786 ) 20,006 
 Tax benefit (expense) 
 859 168 5,160 ( 3,506 ) 
 Net of tax 
 ( 4,513 ) ( 744 ) ( 24,626 ) 16,500 
 Total reclassifications for the period, net of tax $ ( 82,999 ) $ ( 3,683 ) $ ( 110,394 ) $ 5,271 

 (a) Foreign currency translation losses related to Supreme were included in the carrying value of the disposal group used in determining the estimated loss on sale recorded during the second quarter of Fiscal 2025. Upon completion of the sale of Supreme on October 1, 2024, these amounts were reclassified out of accumulated OCL into the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations for the three and nine months ended December 2024 and offset against the derecognition of the previously recorded allowance on the disposal group. 
 19 VF Corporation Q3 FY25 Form 10-Q 

 
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 NOTE 12 — STOCK-BASED COMPENSATION 
 Incentive Equity Awards Granted 
 During the nine months ended December 2024, VF granted stock options to employees and nonemployee members of VF's Board of Directors to purchase 6,560,921 shares of its Common Stock at a weighted average exercise price of $ 13.26 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest and become exercisable in equal annual installments over three years . St ock options granted to nonemployee members of VF's Board of Directors vest upon grant and become exercisable one year from the date of grant. All options have ten-year terms. 
 The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows: 
 
 Nine Months Ended December 2024 
 Expected volatility 37 % to 53 % 
 
 Weighted average expected volatility 47 % 
 Expected term (in years) 5.5 to 7.3 
 
 Weighted average dividend yield 2.2 % 
 Risk-free interest rate 3.80 % to 5.43 % 
 
 Weighted average fair value at date of grant $ 5.30 

 
 
 During the nine months ended December 2024, VF granted 1,544,680 performance-based restricted stock units ("RSUs") to executives that enable them to receive shares of VF Common Stock at the end of a three-year performance cycle. The weighted average fair market value of VF Common Stock at the dates the units were granted was $ 16.61 per share. Each performance-based RSU has a potential final payout ranging from zero to two and one-quarter shares of VF Common Stock. The number of shares earned by participants, if any, is based on the achievement of financial targets and relative total shareholder return ("TSR") targets set by the Talent and Compensation Committee of the Board of Directors. Shares will be issued to participants in the year following the conclusion of the three-year performance period. The financial targets are based on the average, for the three years of the performance cycle, of the annual levels of achievement of VF's total revenue, weighted 50 %, and the average, for the three years of the performance cycle, of the annual levels of achievement of VF's gross margin, weighted 50 %. Furthermore, the actual number of shares earned may be adjusted upward or downward by 25 % of the target award, based on how VF's TSR over the three-year period compares to the TSR for companies included in the 

 
 Standard & Poor's 600 Consumer Discretionary Sector Index, resulting in a maximum payout of 225 % of the target award. The grant date fair value of the TSR-based adjustment related to the performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $ 2.05 per share. 
 During the nine months ended December 2024, VF granted 92,384 nonperformance-based stock units to nonemployee members of the Board of Directors. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The weighted average fair market value of VF Common Stock at the dates the units were granted was $ 16.42 per share. 
 In addition, VF granted 3,486,294 nonperformance-based RSUs to employees during the nine months ended December 2024. These units generally vest over periods up to four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the dates the units were granted was $ 16.88 per share. 
 

 NOTE 13 — INCOME TAXES 
 
 
 The effective income tax rate for the nine months ended December 2024 was 16.1 % compared to 578.0 % in the 2023 period. The nine months ended December 2024 included a net discrete tax benefit of $ 1.9 million, which was comprised primarily of a $ 5.8 million net tax benefit related to unrecognized tax benefits and interest, and a $ 5.9 million tax expense related to stock compensation. Excluding the $ 1.9 million net discrete tax benefit in the 2024 period, the effective income tax rate would have been 16.8 %. The nine months ended December 2023 included a net discrete tax expense of $ 693.8 million, primarily related to the tax effects of decisions in the Timberland tax case and Belgium excess profits ruling, which are discussed further below. Excluding the $ 693.8 million net discrete tax expense in the 2023 period, the effective income tax rate would have been 31.0 %. Without discrete items, the effective income tax rate for the nine months ended December 2024 decreased by 14.2 % compared with the 2023 period primarily due to disproportionate year-to-date losses in jurisdictions with no tax benefit and 

 
 jurisdictional mix of earnings as well as the impairment of nondeductible goodwill in the prior year. 
 As previously reported, VF petitioned the U.S. Tax Court (the "Tax Court”) to resolve an Internal Revenue Service ("IRS") dispute regarding the timing of income inclusion associated with VF’s acquisition of The Timberland Company in September 2011. While the IRS argued that all such income should have been immediately included in 2011, VF reported periodic income inclusions in subsequent tax years. In Fiscal 2023, the Tax Court issued its final decision in favor of the IRS, which was appealed by VF. On October 19, 2022, VF paid $ 875.7 million related to the 2011 taxes and interest being disputed, which was recorded as an income tax receivable and began to accrue interest income. These amounts were included in the other assets line item in VF's Consolidated Balance Sheet, based on our assessment of the position under the more-likely-than-not standard of the accounting literature. On September 8, 2023, the U.S. Court of 

 VF Corporation Q3 FY25 Form 10-Q 20 

 Table of Contents 

 Appeals for the First Circuit (“Appeals Court”) upheld the Tax Court’s decision in favor of the IRS. As a result of the Appeals Court decision, VF determined that its position no longer met the more-likely-than-not threshold, and thus wrote off the related income tax receivable and associated interest and recorded $ 690.0 million of income tax expense in the three months ended September 2023. This amount included the reversal of $ 19.6 million of interest income, of which $ 7.5 million was recorded in the first quarter of Fiscal 2024. This amount reflects the total estimated net impact to VF’s tax expense, which includes the expected reduction in taxes paid on the periodic inclusions that VF has reported, release of related deferred tax liabilities, and consideration of indirect tax effects resulting from the decision. The estimated impact is subject to future adjustments based on finalization with tax authorities. 
 VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. During 2015, the European Union Commission ("EU") investigated and announced its decision that these rulings were illegal and ordered the tax benefits to be collected from affected companies, including VF. During 2017 and 2018, VF Europe BVBA was assessed and paid € 35.0 million in tax and interest, which was recorded as an income tax receivable and was included in the other current assets line item in VF's Consolidated Balance Sheets, based on the expected success of the requests for annulment. After subsequent annulments and appeals, the General Court 

 
 confirmed the decision of the EU on September 20, 2023. As a result, VF wrote off the related income tax receivable and recorded a benefit for the associated foreign tax credit, resulting in $ 26.1 million of net income tax expense in the second quarter of Fiscal 2024. 
 VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the IRS examinations for tax years through 2015 have been effectively settled. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years and has concluded that VF’s provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. 
 During the nine months ended December 2024, the amount of net unrecognized tax benefits and associated interest decreased by $ 2.7 million to $ 300.1 million. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $ 120.8 million due to settlement of audits and expiration of statutes of limitations, of which $ 117.6 million would reduce income tax expense. 
 

 NOTE 14 — REPORTABLE SEGMENT INFORMATION 
 VF's President and Chief Executive Officer, who is considered the Company's CODM, allocates resources and assesses performance based on a global brand view that 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. 
 The Company's reportable segments have been identified as: Outdoor, Active and Work. 
 Financial information for VF's reportable segments is as follows: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Segment revenues: 
 Outdoor $ 1,851,146 $ 1,738,579 $ 4,300,017 $ 4,281,955 
 Active 766,307 819,307 2,449,972 2,735,214 
 Work 216,459 222,308 610,931 651,211 
 
 Total segment revenues $ 2,833,912 $ 2,780,194 $ 7,360,920 $ 7,668,380 
 Segment profit (loss): 
 Outdoor $ 400,593 $ 304,741 $ 604,592 $ 557,830 
 Active (a) 
 12,273 32,305 185,032 254,629 
 Work 13,521 ( 1,864 ) 39,257 13,482 
 
 Total segment profit 426,387 335,182 828,881 825,941 
 Impairment of goodwill and intangible assets ( 51,000 ) ( 257,096 ) ( 51,000 ) ( 257,096 ) 
 Corporate and other expenses ( 142,202 ) ( 140,324 ) ( 395,959 ) ( 316,219 ) 
 Interest expense, net (b) 
 ( 36,516 ) ( 49,096 ) ( 120,151 ) ( 125,783 ) 
 
 Income (loss) from continuing operations before income taxes 
 $ 196,669 $ ( 111,334 ) $ 261,771 $ 126,843 

 (a) Includes legal settlement gains of $ 29.1 million in the three and nine months ended December 2023. 
 (b) Interest expense and the related interest rate swap im pact for the DDTL, which totaled $ 31.1 million for the nine months ended December 2024, and $ 14.9 million and $ 44.2 million for the three and nine months ended December 2023, respectively, were reallocated to discontinued operations due to the requiremen t within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme. 
 21 VF Corporation Q3 FY25 Form 10-Q 

 
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 NOTE 15 — EARNINGS (LOSS) PER SHARE 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands, except per share amounts) 2024 2023 2024 2023 
 Earnings (loss) per share – basic: 
 
 Income (loss) from continuing operations 
 $ 169,109 $ ( 91,736 ) $ 219,591 $ ( 606,353 ) 
 Weighted average common shares outstanding 
 389,218 388,383 389,001 388,294 
 Earnings (loss) per share from continuing operations 
 $ 0.43 $ ( 0.24 ) $ 0.56 $ ( 1.56 ) 
 Earnings (loss) per share – diluted: 
 
 Income (loss) from continuing operations 
 $ 169,109 $ ( 91,736 ) $ 219,591 $ ( 606,353 ) 
 Weighted average common shares outstanding 
 389,218 388,383 389,001 388,294 
 Incremental shares from stock options and other dilutive securities 
 4,690 — 2,434 — 
 Adjusted weighted average common shares outstanding 
 393,908 388,383 391,435 388,294 
 Earnings (loss) per share from continuing operations 
 $ 0.43 $ ( 0.24 ) $ 0.56 $ ( 1.56 ) 

 
 
 Outstanding stock options and other potentially dilutive securities of approximately 9.0 million and 13.6 million shares were excluded from the calculations of diluted earnings per share for the three and nine-month periods ended December 2024 , respectively, because the effect of their inclusion would have been anti-dilutive to those periods. In addition, 2.4 million and 1.9 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three and nine-month periods ended December 2024 , respectively, because these units were not considered to be contingent outstanding shares in those periods. 

 
 In the three and nine-month periods ended December 2023, the dilutive impacts of all outstanding stock options and other dilutive securities were excluded from dilutive shares as a result of the Company's loss from continuing operations for the periods and, as such, their inclusion would have been anti-dilutive. As a result, a total of 19.2 million and 19.0 million potentially dilutive shares related to stock options and other dilutive securities were excluded from the diluted loss per share calculations for the three and nine-month periods ended December 2023, respectively. 
 

 NOTE 16 — FAIR VALUE MEASUREMENTS 
 
 
 Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: 
 • Level 1 — Quoted prices in active markets for identical assets or liabilities. 
 • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable 

 
 data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data. 
 • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. 

 VF Corporation Q3 FY25 Form 10-Q 22 

 Table of Contents 

 Recurring Fair Value Measurements 
 The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: 
 
 Total Fair Value Fair Value Measurement Using (a) 
 
 (In thousands) Level 1 Level 2 Level 3 
 December 2024 
 Financial assets: 
 Cash equivalents: 
 Money market funds $ 539,061 $ 539,061 $ — $ — 
 Time deposits 37,709 37,709 — — 
 
 Derivative financial instruments 91,685 — 91,685 — 
 Deferred compensation and other 87,789 87,789 — — 
 Financial liabilities: 
 Derivative financial instruments 26,828 — 26,828 — 
 Deferred compensation 84,329 — 84,329 — 
 Contingent consulting fees 21,951 — — 21,951 
 
 
 Total Fair Value Fair Value Measurement Using (a) 
 
 (In thousands) Level 1 Level 2 Level 3 
 March 2024 
 Financial assets: 
 Cash equivalents: 
 Money market funds $ 171,931 $ 171,931 $ — $ — 
 Time deposits 54,853 54,853 — — 
 
 Derivative financial instruments 32,548 — 32,548 — 
 Deferred compensation and other 95,236 95,236 — — 
 Financial liabilities: 
 Derivative financial instruments 40,234 — 40,234 — 
 Deferred compensation 90,804 — 90,804 — 
 

 (a) There w ere no transfers amon g the levels within the fair value hierarchy during the nine months ended December 2024 or the year ended March 2024. 
 The following table presents the change in fair value of the contingent consulting fees designated as Level 3: 
 (In thousands) Contingent Consulting Fees 
 Balance, September 2024 $ 13,563 
 Change in fair value 8,388 
 Balance, December 2024 $ 21,951 

 
 VF’s cash equivalents include money market funds and time deposits with maturities within three months of their purchase dates, that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign exchange forward contracts and interest rate swap contracts (through their settlement in the three months ended December 2024), is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies and interest rate forward curves, and considers the credit risk of the Company and its counterparties. VF’s deferred compensation assets primarily represent investments held within plan trusts as an economic hedge of the related deferred compensation liabilities. These investments primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets. Liabilities related to VF’s deferred compensation plans 

 
 are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments. 
 During the second quarter of Fiscal 2025, VF entered into a contract with a consulting firm to support Reinvent, VF's transformation program. The contract includes contingent fees tied to increases in VF's stock price. These fees are accounted for under Accounting Standards Codification Topic 718 — Stock Compensation ("ASC 718") as a liability award to a non-employee. Accordingly, VF has utilized the Monte Carlo valuation model (Level 3) to estimate the fair value of the award at its inception, and will adjust such fair value on a quarterly basis over the measurement period, which concludes on June 30, 2027. Changes in the fair value are recognized in the SG&A expenses line item in the Consolidated Statements of Operations over the relevant service period. The valuation includes the effects of market conditions that are based upon VF's stock price 

 23 VF Corporation Q3 FY25 Form 10-Q 

 Table of Contents 

 performance relative to stock price targets and a minimum payout dependent on the Standard & Poor's 500 Index return and VF's TSR versus that of peer companies over the measurement period. As of December 2024, the total fair val ue of the contingent fees was $ 36.2 million, with $ 8.4 million and $ 22.0 million recognized in the three and nine months ended December 2024, respectively. 
 All other significant financial assets and financial liabilities are recorded in the consolidated financial statements at cost, except life insurance contracts which are recorded at cash surrender value. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable and accrued liabilities. At December 2024 and March 2024, their carrying values approximated their fair values. Additionally, at December 2024 and March 2024, the carrying values of VF’s long-term debt, including the current portion, were $ 4,635.1 million and $ 5,703.0 million, respectively, compared with fair values of $ 4,315.2 million and $ 5,263.3 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. 
 Nonrecurring Fair Value Measurements 
 Dickies Indefinite-Lived Intangible Asset Impairment Analysis 
 During the three months ended December 2024, management determined that the continued downturn in the Dickies financial results and projections, combined with expectations of a slower recovery than previously anticipated, was a triggering event that required management to perform a quantitative impairment analysis of the Dickies indefinite-lived trademark intangible asset. The carrying value of the indefinite-lived trademark intangible asset at the November 23, 2024 testing date was $ 290.0 million. As a result of the impairment testing performed, VF recorded an impairment charge of $ 51.0 million to write down the Dickies indefinite-lived trademark intangible asset to its estimated fair value. 
 The Dickies ® brand, acquired in 2017, sells authentic, functional, durable and affordable workwear and has expanded to include work-inspired, casual-use products. Products are sold globally through mass merchants, specialty stores, independent distributors and licensees, independently-operated partnership stores, concession retail stores, VF-operated stores, on websites with strategic digital partners and online at www.dickies.com. The Dickies ® brand is inc luded in the Work reportable segment. 

 
 The fair value of the Dickies indefinite-lived trademark intangible asset was estimated using valuation techniques consistent with those discussed in the Critical Accounting Policies and Estimates section included in Management's Discussion and Analysis in the Fiscal 2024 Form 10-K. 
 Management's revenue forecasts used in the Dickies indefinite-lived trademark intangible asset valuation considered recent and historical performance, strategic initiatives, industry trends and macroeconomic factors. Assumptions used in the valuation were similar to those that would be used by market participants performing independent valuations of the business. 
 Key assumptions developed by management and used in the quantitative analysis of the Dickies indefinite-lived trademark intangible asset include: 
 • Revenue projections, including a base year that considered recent actual results lower than previous internal forecasts, continued weakness in certain key accounts and markets, slower recovery from the recent downturn, a return to moderate revenue growth by the end of the projection period that reflects the long-term strategy for the business, and a terminal growth rate based on the expected long-term growth rate of the business; 
 • Tax rates based on the statutory rates for the countries in which the related intellectual property is domiciled; 
 • A reduced royalty rate based on market data and current performance of the brand as well as active license agreements for the Dickies ® brand and similar VF brands; and 
 • Market-based discount rates. 
 The valuation model used by management in the impairment testing assumes an extended recovery period from the recent downturn in the brand's operating results and a return to moderate revenue growth by the end of the projection period. If the brand is unable to achieve the financial projections, royalty rates decrease, or if market-based discount rates increase, additional impairment of the indefinite-lived trademark intangible asset could occur in the future. 
 

 NOTE 17 — DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES 
 
 
 Summary of Derivative Financial Instruments 
 
 
 All of VF’s outstanding derivative financial instruments at December 2024 are foreign currency exchange forward contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. 
 The notional amounts of all outstanding foreign currency exchange forward contracts were $ 3.1 billion at December 2024, $ 3.1 billion at March 2024 and $ 3.0 billion at December 2023, consisting primarily of contracts hedging exposures to the euro, 

 
 British pound, Canadian dollar, Swiss franc, Mexican peso, Chinese renminbi, Polish zloty, Swedish krona, South Korean won, and Japanese yen. These derivative contracts have maturities up to 20 months. 
 During the three months ended December 2024, VF settled interest rate swap contracts that were in place to hedge the cash flow risk of interest payments on the variable-rate DDTL Agreement. The DDTL was prepaid on October 4, 2024. The notional amount of VF's outstanding interest rate swap contracts was $ 500.0 million at March 2024 and December 2023. 

 VF Corporation Q3 FY25 Form 10-Q 24 

 Table of Contents 

 The following table presents outstanding derivatives on an individual contract basis: 
 
 Fair Value of Derivatives 
with Unrealized Gains Fair Value of Derivatives 
with Unrealized Losses 
 
 (In thousands) December 2024 March 2024 December 2023 December 2024 March 2024 December 2023 
 Derivatives Designated as Hedging Instruments: 
 Foreign exchange contracts $ 89,053 $ 29,657 $ 13,901 $ ( 26,667 ) $ ( 39,639 ) $ ( 63,897 ) 
 Interest rate contracts — 2,335 1,737 — — — 
 Total derivatives designated as hedging instruments 89,053 31,992 15,638 ( 26,667 ) ( 39,639 ) ( 63,897 ) 
 Derivatives Not Designated as Hedging Instruments: 
 Foreign exchange contracts 2,632 556 166 ( 161 ) ( 595 ) ( 803 ) 
 Total derivatives 
 $ 91,685 $ 32,548 $ 15,804 $ ( 26,828 ) $ ( 40,234 ) $ ( 64,700 ) 

 VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 
 
 December 2024 March 2024 December 2023 
 
 (In thousands) Derivative
Asset Derivative
Liability Derivative
Asset Derivative
Liability Derivative
Asset Derivative
Liability 
 Gross amounts presented in the Consolidated Balance Sheets 
 $ 91,685 $ ( 26,828 ) $ 32,548 $ ( 40,234 ) $ 15,804 $ ( 64,700 ) 
 Gross amounts not offset in the Consolidated Balance Sheets 
 ( 8,918 ) 8,918 ( 11,322 ) 11,322 ( 15,011 ) 15,011 
 Net amounts 
 $ 82,767 $ ( 17,910 ) $ 21,226 $ ( 28,912 ) $ 793 $ ( 49,689 ) 

 Derivatives are classified as current or noncurrent based on maturity dates, as follows: 
 
 (In thousands) December 2024 March 2024 December 2023 
 Derivative Instruments Balance Sheet Location 
 Foreign exchange contracts Other current assets $ 80,981 $ 26,366 $ 12,261 
 Foreign exchange contracts Accrued liabilities ( 24,332 ) ( 35,578 ) ( 55,562 ) 
 Foreign exchange contracts Other assets 10,704 3,847 1,806 
 Foreign exchange contracts Other liabilities ( 2,496 ) ( 4,656 ) ( 9,138 ) 
 Interest rate contracts Other current assets — 2,335 1,737 
 
 

 Cash Flow Hedges 
 VF primarily uses foreign currency exchange forward contracts to hedge a portion of the exchange risk for its forecasted sales, inventory purchases, operating costs and certain intercompany transactions, including sourcing and management fees and royalties. The Company also used interest rate swap contracts to hedge against a portion of the exposure related to its interest payments on its variable-rate debt, which was prepaid on October 4, 2024. The effects of cash flow hedging included in VF’s Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Operations are summarized as follows: 
 
 (In thousands) Gain (Loss) on Derivatives
Recognized in Accumulated OCL
Three Months Ended December Gain (Loss) on Derivatives 
 Recognized in Accumulated OCL 
 Nine Months Ended December 
 
 
 Cash Flow Hedging Relationships 2024 2023 2024 2023 
 Foreign exchange contracts $ 104,716 $ ( 71,398 ) $ 70,014 $ ( 42,049 ) 
 Interest rate contracts 13 ( 1,977 ) 301 5,829 
 Total $ 104,729 $ ( 73,375 ) $ 70,315 $ ( 36,220 ) 

 25 VF Corporation Q3 FY25 Form 10-Q 

 Table of Contents 

 
 (In thousands) Gain (Loss) Reclassified from
Accumulated OCL into Net Income (Loss)
Three Months Ended December Gain (Loss) Reclassified from Accumulated OCL into Net Income (Loss) 
 Nine Months Ended December 
 
 
 Cash Flow Hedging Relationships Location of Gain (Loss) 2024 2023 2024 2023 
 Foreign exchange contracts Net revenues $ ( 9,580 ) $ ( 794 ) $ ( 21,762 ) $ ( 220 ) 
 Foreign exchange contracts Cost of goods sold 4,648 ( 2,697 ) ( 9,479 ) 14,777 
 Foreign exchange contracts SG&A expenses 166 833 ( 289 ) 3,141 
 Foreign exchange contracts Other income (expense), net ( 970 ) 536 ( 973 ) ( 725 ) 
 Interest rate contracts Interest expense 364 27 418 81 
 Interest rate contracts Income (loss) from discontinued operations, net of tax — 1,183 2,299 2,952 
 Total $ ( 5,372 ) $ ( 912 ) $ ( 29,786 ) $ 20,006 

 
 
 Derivative Contracts Not Designated as Hedges 
 VF uses foreign currency exchange contracts to manage foreign currency exchange risk on third-party and intercompany accounts receivable and payable, as well as third-party and intercompany borrowings and interest payments. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net transaction losses or gains on the related assets and liabilities. In the case of derivative contracts executed on foreign currency exposures that are no longer probable of occurring, VF de-designates these hedges and the fair value changes of these instruments are also recognized directly in earnings. During the nine months ended December 2023, certain derivative contracts were de-designated as the related hedged forecasted transactions were no longer deemed probable of occurring. Accordingly, the Company reclassified amounts from accumulated OCL and recognized an $ 8.3 million loss in cost of goods sold during the nine months ended December 2023. There were no material reclassifications in the other periods presented. 
 Other Derivative Information 
 At December 2024, accumulated OCL included $ 38.9 million of pre-tax net deferred gains for foreign currency exchange 

 
 contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. 
 Net Investment Hedge 
 The Company has designated its euro-denominated fixed-rate notes, which represented € 2.0 billion in aggregate principal as of December 2024, as a net investment hedge of VF’s investment in certain foreign operations. Because this debt qualified as a nonderivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCL as an offset to the foreign currency translation adjustments on the hedged investments. During the three and nine-month periods ended December 2024, the Company recognized an after-tax gain of $ 108.6 million and $ 54.7 million, respectively, in other comprehensive income (loss) related to the net investment hedge transaction and an after-tax loss of $ 74.8 million and $ 19.3 million for the three and nine-month periods ended December 2023, respectively. Any amounts deferred in accumulated OCL will remain until the hedged investment is sold or substantially liquidated. 
 

 NOTE 18 — RESTRUCTURING 
 
 
 The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities. A description of significant restructuring programs and other restructuring charges is provided below. 
 
 
 Reinvent 
 
 
 On October 30, 2023, VF introduced Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow VF to achieve its full potential. The Company currently estimates it will incur approximately $ 190.0 million to $ 210.0 million in restructuring charges in connection with Reinvent, and that substantially all actions will be completed by the end of Fiscal 2025. Of the total estimated 

 
 charges, the Company anticipates that approximately 70 % will relate to severance and employee-related benefits and the remainder will primarily relate to asset impairments and write-downs. Cash payments are generally expected to be paid within one year of charges incurred. During the nine months ended December 2024, $ 37.4 million of cash payments related to the Reinvent charges were made. 

 VF Corporation Q3 FY25 Form 10-Q 26 

 Table of Contents 

 The type of cost and respective location of restructuring charges related to Reinvent within VF's Consolidated Statement of Operations for the three and nine months ended December 2024 and 2023, and the cumulative charges recorded since the inception of Reinvent were as follows: 
 
 Three Months Ended December Nine Months Ended December Cumulative Charges 
 
 (In thousands) 2024 2023 2024 2023 
 Type of Cost Location 
 Severance and employee-related benefits SG&A expenses $ 16,976 $ 27,392 $ 36,275 $ 27,392 $ 101,097 
 Severance and employee-related benefits Cost of goods sold — 4,210 181 4,210 4,691 
 Contract termination and other SG&A expenses — — 737 — 737 
 Contract termination and other Cost of goods sold — — 157 — 157 
 Asset impairments and write-downs SG&A expenses — 18,739 500 18,739 39,886 
 
 Pension withdrawal SG&A expenses — — 3,619 — 3,619 
 
 Curtailment gains Other income (expense), net ( 638 ) — ( 638 ) — ( 638 ) 
 Accelerated depreciation SG&A expenses 50 — 929 — 929 
 Accelerated depreciation Cost of goods sold — — 17 — 17 
 Total Reinvent Restructuring Charges $ 16,388 $ 50,341 $ 41,777 $ 50,341 $ 150,495 

 All restructuring charges related to Reinvent recognized in the three and nine months ended December 2024 and December 2023 were reported within 'Corporate and other' expenses in Note 14, Reportable Segment Information. 
 Other Restructuring Charges 
 Other Restructuring Charges are related to various approved initiatives. The type of cost and respective location of Other Restructuring Charges within VF's Consolidated Statement of Operations for the three and nine months ended December 2024 and 2023 were as follows: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Type of Cost Location 
 Severance and employee-related benefits SG&A expenses $ — $ — $ — $ 676 
 
 Contract termination and other SG&A expenses — 435 591 889 
 
 Total Other Restructuring Charges $ — $ 435 $ 591 $ 1,565 

 Other Restructuring Charges by business segment were as follows: 
 
 Three Months Ended December Nine Months Ended December 
 
 (In thousands) 2024 2023 2024 2023 
 Outdoor $ — $ — $ — $ 242 
 Active — — — 434 
 Work — — — — 
 Corporate and other — 435 591 889 
 Total $ — $ 435 $ 591 $ 1,565 

 27 VF Corporation Q3 FY25 Form 10-Q 

 Table of Contents 

 Consolidated Restructuring Charges 
 The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges for the nine-month period ended December 2024 was as follows: 
 
 (In thousands) Severance Other Total 
 Accrual at March 2024 $ 60,160 $ 345 $ 60,505 
 Charges 36,456 894 37,350 
 Cash payments and settlements ( 39,761 ) ( 902 ) ( 40,663 ) 
 Adjustments to accruals ( 1,647 ) — ( 1,647 ) 
 Impact of foreign currency ( 595 ) — ( 595 ) 
 Accrual at December 2024 $ 54,613 $ 337 $ 54,950 

 Of the $ 55.0 million total restructuring accrual at December 2024, $ 53.5 million is expected to be paid within the next 12 months and is classified within accrued liabilities. The remaining $ 1.5 million will be paid beyond the next 12 months and is classified within other liabilities. The Company has not recognized any significant incremental costs related to the accruals for the year ended March 2024 or prior periods. 
 
 NOTE 19 — SUBSEQUENT EVENT 
 On January 22, 2025, VF’s Board of Directors declared a quarterly cash dividend of $ 0.09 per share, payable on March 20, 2025 to stockholders of record on March 10, 2025. 
 VF Corporation Q3 FY25 Form 10-Q 28 

 
 Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
V F CORP 10-Q

Item 1. Financial Statements
