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DISCONTINUED OPERATIONS | 3 Months Ended
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Jun. 28, 2025
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. 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 $1.506 billion, net of cash sold, resulting in a final after-tax loss on sale of $126.6 million. 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 third quarter of Fiscal 2025. 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 loss from discontinued operations, net of tax line item in the Consolidated Statement of Operations were a loss of $106.9 million (including goodwill and intangible asset impairment charges of $145.0 million) for the three months ended June 2024. 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. 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 allocated 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. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for Supreme that are included in the loss from discontinued operations, net of tax line item in the Consolidated Statements of Operations:
|  | Three Months Ended June |  |  |
(In thousands) |  | 2025 (a) |  |  | 2024 |  |  |  |  |  |
Revenues |  | $ | — |  |  |  | $ | 138,241 |  |  |  |  |  |  |
Cost of goods sold |  | — |  |  |  | 52,261 |  |  |  |  |  |  |
Selling, general and administrative expenses |  | — |  |  |  | 57,853 |  |  |  |  |  |  |
Impairment of goodwill and intangible assets |  | — |  |  |  | 145,000 |  |  |  |  |  |  |
Interest expense, net (b) |  | — |  |  |  | (14,730) |  |  |  |  |  |  |
Other income (expense), net |  | — |  |  |  | (464) |  |  |  |  |  |  |
Loss from discontinued operations before income taxes |  | — |  |  |  | (132,067) |  |  |  |  |  |  |
Income tax benefit |  | — |  |  |  | (25,208) |  |  |  |  |  |  |
Loss from discontinued operations, net of tax |  | $ | — |  |  |  | $ | (106,859) |  |  |  |  |  |  |
(a)There was no activity during the three months ended June 2025. (b)As noted above, interest expense and the related interest rate swap im pact for the DDTL were alloc ated to discontinued operations. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations as of June 2024.
(In thousands) |  |  |  |  |  |  | June 2024
Cash and cash equivalents |  |  |  |  |  |  | $ | 11,984 |
Accounts receivable, net |  |  |  |  |  |  | 6,203 |
Inventories |  |  |  |  |  |  | 50,870 |
Other current assets |  |  |  |  |  |  | 25,867 |
Property, plant and equipment, net |  |  |  |  |  |  | 34,401 |
Intangible assets, net |  |  |  |  |  |  | 801,000 |
Goodwill |  |  |  |  |  |  | 717,562 |
Operating lease right-of-use assets |  |  |  |  |  |  | 72,047 |
Other assets |  |  |  |  |  |  | 18,790 |
Deferred income tax assets (a) |  |  |  |  |  |  | (80,692) |
Total assets of discontinued operations |  |  |  |  |  |  | $ | 1,658,032 |
Accounts payable |  |  |  |  |  |  | $ | 21,519 |
Accrued liabilities |  |  |  |  |  |  | 41,405 |
Operating lease liabilities |  |  |  |  |  |  | 67,232 |
Other liabilities |  |  |  |  |  |  | 2,417 |
Total liabilities of discontinued operations |  |  |  |  |  |  | $ | 132,573 |
(a)Deferred income tax balances reflect VF’s consolidated netting by jurisdiction.

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- 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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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