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COMMITMENTS AND CONTINGENCIES | 12 Months Ended
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Mar. 30, 2019
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments VF is obligated under noncancelable operating leases related primarily to retail stores, office space, distribution facilities and equipment. Rent expense, net of sublease income that was not significant in any period, was included in the Consolidated Statements of Income as follows:
|  | Year Ended March |  |  | Three Months Ended March (Transition Period) |  | Year Ended December
(In thousands) |  | 2019 |  |  | 2018 |  | 2017 |  | 2016
Minimum rent expense |  | $ | 386,544 |  |  |  | $ | 104,235 |  |  | $ | 355,217 |  |  | $ | 337,879 |
Contingent rent expense |  | 34,267 |  |  |  | 6,791 |  |  | 24,410 |  |  | 18,062 |
Rent expense |  | $ | 420,811 |  |  |  | $ | 111,026 |  |  | $ | 379,627 |  |  | $ | 355,941 |
Future minimum lease payments during the noncancelable lease term are $366.4 million, $314.8 million, $228.9 million, $163.5 million and $106.9 million for fiscal years 2020 through 2024, respectively, and $252.8 million thereafter. VF has entered into licensing agreements that provide VF rights to market products under trademarks owned by other parties. Royalties under these agreements are recognized in cost of goods sold in the Consolidated Statements of Income. Certain of these agreements contain minimum royalty and minimum advertising requirements. Future minimum royalty payments, including any required advertising payments, are $25.6 million, $13.1 million, $8.3 million, $3.1 million and $1.8 million for fiscal years 2020 through 2024, respectively, and $8.8 million thereafter. In the ordinary course of business, VF has entered into purchase commitments for raw materials, contract production and finished products. Total payments required under these agreements are$2.6 billion, $17.8 million, $6.8 million, and $7.0 million for fiscal years 2020 through 2023, respectively and no commitments thereafter. VF has entered into commitments for (i) service and maintenance agreements related to its management information systems, (ii) capital spending, and (iii) advertising. Future payments under these agreements are $108.0 million, $18.8 million, $16.3 million, $11.7 million and $7.4 million for fiscal years 2020 through 2024, respectively, and $12.1 million thereafter. Surety bonds, customs bonds, standby letters of credit and international bank guarantees, all of which represent contingent guarantees of performance under self-insurance and other programs, totaled $116.2 million as of March 2019. These commitments would only be drawn upon if VF were to fail to meet its claims or other obligations. Contingencies The Company petitioned the U.S. Tax Court to resolve an IRS dispute regarding the timing of income inclusion associated with the 2011 Timberland acquisition. The Company remains confident in our timing and treatment of the income inclusion, and therefore this matter is not reflected in our financial statements. We are vigorously defending our position, and do not expect the resolution to have a material adverse impact on the Company's financial position, results of operations or cash flows. While the IRS argues immediate income inclusion, the Company's position is to include the income over a period of years. As the matter relates to 2011, nearly half of the timing at dispute has passed with the Company including the income, and paying the related tax, on our income tax returns. The Company notes that should the IRS prevail in this timing matter, the net interest expense would be up to $130 million. Further, this timing matter is impacted by the Tax Act that reduced the U.S. corporate income tax rate from 35% to 21%. If the IRS is successful, this rate differential would increase tax expense by approximately $136 million. The Company is currently involved in other legal proceedings that are ordinary, routine litigation incidental to the business. The resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company's financial position, results of operations or cash flows.

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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