XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

DISCONTINUED OPERATIONS | 3 Months Ended
--- | ---
Jul. 03, 2021
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 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. Occupational Workwear Business On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also includes the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. As of March 28, 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Occupational Workwear business 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 l iabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. On June 28, 2021, VF completed the sale of the Occupational Workwear business. The Company received proceeds of $616.5 million, net of cash sold, resulting in an estimated after-tax gain on sale of $145.6 million, which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the three months ended June 2021, and is subject to working capital and other adjustments. The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations were income of $170.3 million (including an estimated after-tax gain on sale of $145.6 million) and a loss of $7.9 million for the three months ended June 2021 and June 2020, respectively. Under the terms of a transition services agreement, the Company will provide certain support services for periods generally up to 12 months from the closing date of the transaction. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the Occupational Workwear business that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Operations:
|  | Three Months Ended June |  |  |
(In thousands) |  | 2021 |  |  | 2020 |  |  |  |  |  |
Net revenues |  | $ | 181,424 |  |  |  | $ | 125,333 |  |  |  |  |  |  |
Cost of goods sold |  | 117,193 |  |  |  | 101,470 |  |  |  |  |  |  |
Selling, general and administrative expenses |  | 38,735 |  |  |  | 33,256 |  |  |  |  |  |  |
Interest income, net |  | 194 |  |  |  | 293 |  |  |  |  |  |  |
Other income (expense), net |  | 6 |  |  |  | — |  |  |  |  |  |  |
Income (loss) from discontinued operations before income taxes |  | 25,696 |  |  |  | (9,100) |  |  |  |  |  |  |
Gain on the sale of discontinued operations before income taxes |  | 133,571 |  |  |  | — |  |  |  |  |  |  |
Total income (loss) from discontinued operations before income taxes |  | 159,267 |  |  |  | (9,100) |  |  |  |  |  |  |
Income tax benefit (a) |  | (11,006) |  |  |  | (1,229) |  |  |  |  |  |  |
Income (loss) from discontinued operations, net of tax |  | $ | 170,273 |  |  |  | $ | (7,871) |  |  |  |  |  |  |
(a)Income tax benefit for the three months ended June 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business. The following table summarizes the carry ing amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:
(In thousands) |  | June 2021 |  |  | March 2021 |  | June 2020
Cash and equivalents |  | $ | — |  |  |  | $ | 34,132 |  |  | $ | 42,986 |
Accounts receivable, net |  | — |  |  |  | 103,835 |  |  | 64,065 |
Inventories |  | — |  |  |  | 245,227 |  |  | 258,632 |
Other current assets |  | — |  |  |  | 8,208 |  |  | 10,027 |
Property, plant and equipment, net |  | — |  |  |  | 49,394 |  |  | 46,697 |
Intangible assets, net |  | — |  |  |  | 54,471 |  |  | 54,471 |
Goodwill |  | — |  |  |  | 43,530 |  |  | 43,530 |
Operating lease right-of-use assets |  | — |  |  |  | 43,220 |  |  | 39,452 |
Other assets |  | — |  |  |  | 5,561 |  |  | 5,275 |
Total assets of discontinued operations |  | $ | — |  |  |  | $ | 587,578 |  |  | $ | 565,135 |
Accounts payable |  | $ | — |  |  |  | $ | 59,965 |  |  | $ | 27,810 |
Accrued liabilities |  | — |  |  |  | 38,956 |  |  | 31,134 |
Operating lease liabilities |  | — |  |  |  | 31,301 |  |  | 34,462 |
Other liabilities |  | — |  |  |  | 3,863 |  |  | 2,284 |
Deferred income tax liabilities (a) |  | — |  |  |  | (8,828) |  |  | (4,407) |
Total liabilities of discontinued operations |  | $ | — |  |  |  | $ | 125,257 |  |  | $ | 91,283 |
(a)Deferred income tax balances reflect VF's consolidated netting by jurisdiction

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration