Pennsylvania | 23-1180120 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
(Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) | ||||||
Common Stock, without par value, stated capital, $0.25 per share | VFC | New York Stock Exchange | ||||||
0.625% Senior Notes due 2023 | VFC23 | New York Stock Exchange | ||||||
0.250% Senior Notes due 2028 | VFC28 | New York Stock Exchange | ||||||
0.625% Senior Notes due 2032 | VFC32 | New York Stock Exchange |
PAGE NUMBER | |||||
Consolidated Balance Sheets: December 2022, March 2022 and December 2021 | |||||
Consolidated Statements of Cash Flows: Nine months ended December 2022 and December 2021 | |||||
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED). |
(In thousands, except share amounts) | December 2022 | March 2022 | December 2021 | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets | |||||||||||||||||||||||
Cash and equivalents | $ | 571,347 | $ | 1,275,943 | $ | 1,333,839 | |||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of: December 2022 - $29,087; March 2022 - $27,959; December 2021 - $33,363 | 1,564,957 | 1,467,842 | 1,495,859 | ||||||||||||||||||||
Inventories | 2,591,915 | 1,418,673 | 1,287,210 | ||||||||||||||||||||
Other current assets | 515,763 | 425,622 | 483,738 | ||||||||||||||||||||
Total current assets | 5,243,982 | 4,588,080 | 4,600,646 | ||||||||||||||||||||
Property, plant and equipment, net | 932,663 | 1,041,777 | 1,049,691 | ||||||||||||||||||||
Intangible assets, net | 2,790,512 | 3,000,351 | 3,010,517 | ||||||||||||||||||||
Goodwill | 2,142,401 | 2,393,807 | 2,409,260 | ||||||||||||||||||||
Operating lease right-of-use assets | 1,293,041 | 1,247,056 | 1,302,545 | ||||||||||||||||||||
Other assets | 1,910,698 | 1,071,137 | 1,163,663 | ||||||||||||||||||||
TOTAL ASSETS | $ | 14,313,297 | $ | 13,342,208 | $ | 13,536,322 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Short-term borrowings | $ | 901,668 | $ | 335,462 | $ | 106,010 | |||||||||||||||||
Current portion of long-term debt | 910,616 | 501,051 | 500,915 | ||||||||||||||||||||
Accounts payable | 906,340 | 562,992 | 559,716 | ||||||||||||||||||||
Accrued liabilities | 1,827,610 | 1,915,892 | 2,057,237 | ||||||||||||||||||||
Total current liabilities | 4,546,234 | 3,315,397 | 3,223,878 | ||||||||||||||||||||
Long-term debt | 4,617,441 | 4,584,261 | 4,646,379 | ||||||||||||||||||||
Operating lease liabilities | 1,068,744 | 1,023,759 | 1,093,013 | ||||||||||||||||||||
Other liabilities | 761,246 | 888,436 | 919,652 | ||||||||||||||||||||
Total liabilities | 10,993,665 | 9,811,853 | 9,882,922 | ||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at December 2022, March 2022 or December 2021 | — | — | — | ||||||||||||||||||||
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at December 2022 - 388,660,385; March 2022 - 388,298,375; December 2021 - 388,885,032 | 97,165 | 97,075 | 97,221 | ||||||||||||||||||||
Additional paid-in capital | 3,766,304 | 3,916,384 | 3,884,935 | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | (929,588) | (926,579) | (937,457) | ||||||||||||||||||||
Retained earnings | 385,751 | 443,475 | 608,701 | ||||||||||||||||||||
Total stockholders’ equity | 3,319,632 | 3,530,355 | 3,653,400 | ||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 14,313,297 | $ | 13,342,208 | $ | 13,536,322 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net revenues | $ | 3,530,667 | $ | 3,624,384 | $ | 8,872,862 | $ | 9,017,176 | |||||||||||||||||||||||||||
Costs and operating expenses | |||||||||||||||||||||||||||||||||||
Cost of goods sold | 1,593,048 | 1,592,604 | 4,134,207 | 4,027,601 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1,421,586 | 1,353,338 | 3,828,157 | 3,549,763 | |||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | 421,922 | — | |||||||||||||||||||||||||||||||
Total costs and operating expenses | 3,014,634 | 2,945,942 | 8,384,286 | 7,577,364 | |||||||||||||||||||||||||||||||
Operating income | 516,033 | 678,442 | 488,576 | 1,439,812 | |||||||||||||||||||||||||||||||
Interest income | 3,914 | 606 | 6,020 | 4,266 | |||||||||||||||||||||||||||||||
Interest expense | (54,144) | (33,994) | (121,415) | (104,799) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment | — | (3,645) | — | (3,645) | |||||||||||||||||||||||||||||||
Other income (expense), net | (9,901) | (95) | (113,895) | 16,495 | |||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 455,902 | 641,314 | 259,286 | 1,352,129 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) | (51,966) | 123,513 | (74,190) | 216,303 | |||||||||||||||||||||||||||||||
Income from continuing operations | 507,868 | 517,801 | 333,476 | 1,135,826 | |||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 170,273 | |||||||||||||||||||||||||||||||
Net income | $ | 507,868 | $ | 517,801 | $ | 333,476 | $ | 1,306,099 | |||||||||||||||||||||||||||
Earnings per common share - basic | |||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.31 | $ | 1.33 | $ | 0.86 | $ | 2.90 | |||||||||||||||||||||||||||
Discontinued operations | — | — | — | 0.44 | |||||||||||||||||||||||||||||||
Total earnings per common share - basic | $ | 1.31 | $ | 1.33 | $ | 0.86 | $ | 3.34 | |||||||||||||||||||||||||||
Earnings per common share - diluted | |||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.31 | $ | 1.32 | $ | 0.86 | $ | 2.89 | |||||||||||||||||||||||||||
Discontinued operations | — | — | — | 0.43 | |||||||||||||||||||||||||||||||
Total earnings per common share - diluted | $ | 1.31 | $ | 1.32 | $ | 0.86 | $ | 3.32 | |||||||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | 387,739 | 390,430 | 387,663 | 391,187 | |||||||||||||||||||||||||||||||
Diluted | 388,192 | 392,495 | 388,357 | 393,547 | |||||||||||||||||||||||||||||||
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net income | $ | 507,868 | $ | 517,801 | $ | 333,476 | $ | 1,306,099 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||
Foreign currency translation and other | |||||||||||||||||||||||||||||||||||
Gains (losses) arising during the period | (1,506) | (15,757) | (74,924) | 5,100 | |||||||||||||||||||||||||||||||
Income tax effect | 43,475 | (9,954) | (15,321) | (17,758) | |||||||||||||||||||||||||||||||
Defined benefit pension plans | |||||||||||||||||||||||||||||||||||
Current period actuarial gains (losses) | (1,307) | 514 | (15,449) | (3,938) | |||||||||||||||||||||||||||||||
Amortization of net deferred actuarial losses | 3,858 | 2,858 | 11,532 | 8,569 | |||||||||||||||||||||||||||||||
Amortization of deferred prior service credits | (112) | (117) | (335) | (352) | |||||||||||||||||||||||||||||||
Reclassification of net actuarial loss from settlement charges | 695 | 5,660 | 93,597 | 6,684 | |||||||||||||||||||||||||||||||
Income tax effect | (935) | (2,251) | (23,401) | (2,187) | |||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||||||
Gains (losses) arising during the period | (119,635) | 14,185 | 82,480 | 43,983 | |||||||||||||||||||||||||||||||
Income tax effect | 17,970 | (2,224) | (13,761) | (8,010) | |||||||||||||||||||||||||||||||
Reclassification of net (gains) losses realized | (32,905) | 12,439 | (56,053) | 45,984 | |||||||||||||||||||||||||||||||
Income tax effect | 4,979 | (1,976) | 8,626 | (6,532) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (85,423) | 3,377 | (3,009) | 71,543 | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 422,445 | $ | 521,178 | $ | 330,467 | $ | 1,377,642 |
Nine Months Ended December | |||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 333,476 | $ | 1,306,099 | |||||||||||||
Income from discontinued operations, net of tax | — | 170,273 | |||||||||||||||
Income from continuing operations, net of tax | 333,476 | 1,135,826 | |||||||||||||||
Adjustments to reconcile net income to cash provided (used) by operating activities: | |||||||||||||||||
Impairment of goodwill and intangible assets | 421,922 | — | |||||||||||||||
Depreciation and amortization | 192,174 | 199,652 | |||||||||||||||
Reduction in the carrying amount of right-of-use assets | 280,845 | 309,588 | |||||||||||||||
Stock-based compensation | 47,714 | 65,833 | |||||||||||||||
Provision for doubtful accounts | 1,231 | 3,143 | |||||||||||||||
Pension expense in excess of (less than) contributions | 83,278 | (27,514) | |||||||||||||||
Loss on extinguishment of debt | — | 3,645 | |||||||||||||||
Other, net | 10,740 | (291,054) | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (120,081) | (214,644) | |||||||||||||||
Inventories | (1,200,438) | (237,285) | |||||||||||||||
Accounts payable | 352,047 | 99,565 | |||||||||||||||
Income taxes | (1,178,547) | 219,097 | |||||||||||||||
Accrued liabilities | 173,148 | 250,170 | |||||||||||||||
Operating lease right-of-use assets and liabilities | (290,679) | (342,322) | |||||||||||||||
Other assets and liabilities | 59,698 | (382,410) | |||||||||||||||
Cash provided (used) by operating activities - continuing operations | (833,472) | 791,290 | |||||||||||||||
Cash provided by operating activities - discontinued operations | — | 6,090 | |||||||||||||||
Cash provided (used) by operating activities | (833,472) | 797,380 | |||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Business acquisitions, net of cash received | — | 3,760 | |||||||||||||||
Proceeds from sale of businesses, net of cash sold | — | 616,529 | |||||||||||||||
Proceeds from sale of short-term investments | — | 598,806 | |||||||||||||||
Capital expenditures | (130,214) | (214,220) | |||||||||||||||
Software purchases | (75,460) | (63,758) | |||||||||||||||
Other, net | (1,159) | 12,819 | |||||||||||||||
Cash provided (used) by investing activities - continuing operations | (206,833) | 953,936 | |||||||||||||||
Cash used by investing activities - discontinued operations | — | (525) | |||||||||||||||
Cash provided (used) by investing activities | (206,833) | 953,411 | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Contingent consideration payment | (56,976) | — | |||||||||||||||
Net increase in short-term borrowings | 566,206 | 94,958 | |||||||||||||||
Payments on long-term debt | (500,786) | (503,943) | |||||||||||||||
Payment of debt issuance costs | (819) | (2,415) | |||||||||||||||
Proceeds from long-term debt | 1,000,000 | — | |||||||||||||||
Share repurchases | — | (299,999) | |||||||||||||||
Cash dividends paid | (586,335) | (579,194) | |||||||||||||||
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings | (2,571) | 32,929 | |||||||||||||||
Cash provided (used) by financing activities | 418,719 | (1,257,664) | |||||||||||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (82,512) | (9,339) | |||||||||||||||
Net change in cash, cash equivalents and restricted cash | (704,098) | 483,788 | |||||||||||||||
Cash, cash equivalents and restricted cash – beginning of year | 1,277,082 | 851,205 | |||||||||||||||
Cash, cash equivalents and restricted cash – end of period | $ | 572,984 | $ | 1,334,993 |
Nine Months Ended December | |||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||
Balances per Consolidated Balance Sheets: | |||||||||||||||||
Cash and cash equivalents | $ | 571,347 | $ | 1,333,839 | |||||||||||||
Other current assets | 1,511 | 1,124 | |||||||||||||||
Other assets | 126 | 30 | |||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 572,984 | $ | 1,334,993 |
Three Months Ended December 2022 | ||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
Balance, September 2022 | 388,569,062 | $ | 97,142 | $ | 3,952,786 | $ | (844,165) | $ | (120,127) | $ | 3,085,636 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 507,868 | 507,868 | ||||||||||||||||||||||||||||||||
Dividends on Common Stock ($0.51 per share) | — | — | (198,051) | — | — | (198,051) | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 91,323 | 23 | 11,569 | — | (1,990) | 9,602 | ||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | 41,969 | — | 41,969 | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | 2,199 | — | 2,199 | ||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | (129,591) | — | (129,591) | ||||||||||||||||||||||||||||||||
Balance, December 2022 | 388,660,385 | $ | 97,165 | $ | 3,766,304 | $ | (929,588) | $ | 385,751 | $ | 3,319,632 | |||||||||||||||||||||||||||
Three Months Ended December 2021 | ||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
Balance, September 2021 | 392,758,016 | $ | 98,190 | $ | 3,854,687 | $ | (940,834) | $ | 586,438 | $ | 3,598,481 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 517,801 | 517,801 | ||||||||||||||||||||||||||||||||
Dividends on Common Stock ($0.50 per share) | — | — | — | — | (194,767) | (194,767) | ||||||||||||||||||||||||||||||||
Share repurchases | (4,029,722) | (1,007) | — | — | (298,992) | (299,999) | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 156,738 | 38 | 30,248 | — | (1,779) | 28,507 | ||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | (25,711) | — | (25,711) | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | 6,664 | — | 6,664 | ||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | 22,424 | — | 22,424 | ||||||||||||||||||||||||||||||||
Balance, December 2021 | 388,885,032 | $ | 97,221 | $ | 3,884,935 | $ | (937,457) | $ | 608,701 | $ | 3,653,400 |
Nine Months Ended December 2022 | ||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
Balance, March 2022 | 388,298,375 | $ | 97,075 | $ | 3,916,384 | $ | (926,579) | $ | 443,475 | $ | 3,530,355 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 333,476 | 333,476 | ||||||||||||||||||||||||||||||||
Dividends on Common Stock ($1.51 per share) | — | — | (203,394) | — | (382,941) | (586,335) | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 362,010 | 90 | 53,314 | — | (8,259) | 45,145 | ||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | (90,245) | — | (90,245) | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | 65,944 | — | 65,944 | ||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | 21,292 | — | 21,292 | ||||||||||||||||||||||||||||||||
Balance, December 2022 | 388,660,385 | $ | 97,165 | $ | 3,766,304 | $ | (929,588) | $ | 385,751 | $ | 3,319,632 | |||||||||||||||||||||||||||
Nine Months Ended December 2021 | ||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
Balance, March 2021 | 391,941,477 | $ | 97,985 | $ | 3,777,645 | $ | (1,009,000) | $ | 189,534 | $ | 3,056,164 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 1,306,099 | 1,306,099 | ||||||||||||||||||||||||||||||||
Dividends on Common Stock ($1.48 per share) | — | — | (2,597) | — | (576,597) | (579,194) | ||||||||||||||||||||||||||||||||
Share repurchases | (4,029,722) | (1,007) | — | — | (298,992) | (299,999) | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 973,277 | 243 | 109,887 | — | (11,343) | 98,787 | ||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | (12,658) | — | (12,658) | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | 8,776 | — | 8,776 | ||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | 75,425 | — | 75,425 | ||||||||||||||||||||||||||||||||
Balance, December 2021 | 388,885,032 | $ | 97,221 | $ | 3,884,935 | $ | (937,457) | $ | 608,701 | $ | 3,653,400 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | PAGE NUMBER | |||||||
NOTE 1 | ||||||||
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NOTE 20 |
(In thousands) | December 2022 | March 2022 | December 2021 | ||||||||||||||||||||
Contract assets (a) | $ | 1,273 | $ | 1,065 | $ | 1,425 | |||||||||||||||||
Contract liabilities (b) | 80,456 | 71,067 | 73,890 |
Three Months Ended December 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Channel revenues | ||||||||||||||||||||||||||||||||
Wholesale | $ | 973,292 | $ | 401,521 | $ | 198,956 | $ | — | $ | 1,573,769 | ||||||||||||||||||||||
Direct-to-consumer | 1,023,428 | 850,167 | 63,773 | — | 1,937,368 | |||||||||||||||||||||||||||
Royalty | 6,325 | 6,994 | 6,211 | — | 19,530 | |||||||||||||||||||||||||||
Total | $ | 2,003,045 | $ | 1,258,682 | $ | 268,940 | $ | — | $ | 3,530,667 | ||||||||||||||||||||||
Geographic revenues | ||||||||||||||||||||||||||||||||
Americas | $ | 1,110,134 | $ | 766,394 | $ | 217,408 | $ | — | $ | 2,093,936 | ||||||||||||||||||||||
Europe | 643,740 | 312,857 | 26,752 | — | 983,349 | |||||||||||||||||||||||||||
Asia-Pacific | 249,171 | 179,431 | 24,780 | — | 453,382 | |||||||||||||||||||||||||||
Total | $ | 2,003,045 | $ | 1,258,682 | $ | 268,940 | $ | — | $ | 3,530,667 |
Three Months Ended December 2021 | |||||||||||||||||||||||||||||
(In thousands) | Outdoor | Active | Work | Other | Total | ||||||||||||||||||||||||
Channel revenues | |||||||||||||||||||||||||||||
Wholesale | $ | 960,020 | $ | 448,690 | $ | 215,023 | $ | 279 | $ | 1,624,012 | |||||||||||||||||||
Direct-to-consumer | 964,016 | 956,393 | 61,077 | — | 1,981,486 | ||||||||||||||||||||||||
Royalty | 4,391 | 5,494 | 9,001 | — | 18,886 | ||||||||||||||||||||||||
Total | $ | 1,928,427 | $ | 1,410,577 | $ | 285,101 | $ | 279 | $ | 3,624,384 | |||||||||||||||||||
Geographic revenues | |||||||||||||||||||||||||||||
Americas | $ | 1,040,827 | $ | 862,524 | $ | 229,109 | $ | 279 | $ | 2,132,739 | |||||||||||||||||||
Europe | 651,252 | 333,415 | 18,631 | — | 1,003,298 | ||||||||||||||||||||||||
Asia-Pacific | 236,348 | 214,638 | 37,361 | — | 488,347 | ||||||||||||||||||||||||
Total | $ | 1,928,427 | $ | 1,410,577 | $ | 285,101 | $ | 279 | $ | 3,624,384 |
Nine Months Ended December 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Channel revenues | ||||||||||||||||||||||||||||||||
Wholesale | $ | 2,602,744 | $ | 1,524,712 | $ | 608,972 | $ | 148 | $ | 4,736,576 | ||||||||||||||||||||||
Direct-to-consumer | 1,710,437 | 2,226,870 | 145,274 | — | 4,082,581 | |||||||||||||||||||||||||||
Royalty | 13,816 | 21,155 | 18,734 | — | 53,705 | |||||||||||||||||||||||||||
Total | $ | 4,326,997 | $ | 3,772,737 | $ | 772,980 | $ | 148 | $ | 8,872,862 | ||||||||||||||||||||||
Geographic revenues | ||||||||||||||||||||||||||||||||
Americas | $ | 2,325,405 | $ | 2,282,005 | $ | 625,565 | $ | 148 | $ | 5,233,123 | ||||||||||||||||||||||
Europe | 1,447,353 | 994,783 | 68,255 | — | 2,510,391 | |||||||||||||||||||||||||||
Asia-Pacific | 554,239 | 495,949 | 79,160 | — | 1,129,348 | |||||||||||||||||||||||||||
Total | $ | 4,326,997 | $ | 3,772,737 | $ | 772,980 | $ | 148 | $ | 8,872,862 |
Nine Months Ended December 2021 | |||||||||||||||||||||||||||||
(In thousands) | Outdoor | Active | Work | Other | Total | ||||||||||||||||||||||||
Channel revenues | |||||||||||||||||||||||||||||
Wholesale | $ | 2,426,963 | $ | 1,600,238 | $ | 693,910 | $ | 557 | $ | 4,721,668 | |||||||||||||||||||
Direct-to-consumer | 1,614,783 | 2,488,454 | 144,029 | — | 4,247,266 | ||||||||||||||||||||||||
Royalty | 11,056 | 16,126 | 21,060 | — | 48,242 | ||||||||||||||||||||||||
Total | $ | 4,052,802 | $ | 4,104,818 | $ | 858,999 | $ | 557 | $ | 9,017,176 | |||||||||||||||||||
Geographic revenues | |||||||||||||||||||||||||||||
Americas | $ | 2,139,763 | $ | 2,412,228 | $ | 689,191 | $ | 557 | $ | 5,241,739 | |||||||||||||||||||
Europe | 1,406,329 | 1,051,301 | 58,247 | — | 2,515,877 | ||||||||||||||||||||||||
Asia-Pacific | 506,710 | 641,289 | 111,561 | — | 1,259,560 | ||||||||||||||||||||||||
Total | $ | 4,052,802 | $ | 4,104,818 | $ | 858,999 | $ | 557 | $ | 9,017,176 |
Nine Months Ended December | |||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||
Net revenues | $ | — | $ | 181,424 | |||||||||||||
Cost of goods sold | — | 117,193 | |||||||||||||||
Selling, general and administrative expenses | — | 38,735 | |||||||||||||||
Interest income, net | — | 194 | |||||||||||||||
Other income (expense), net | — | 6 | |||||||||||||||
Income from discontinued operations before income taxes | — | 25,696 | |||||||||||||||
Gain on the sale of discontinued operations before income taxes | — | 133,571 | |||||||||||||||
Total income from discontinued operations before income taxes | — | 159,267 | |||||||||||||||
Income tax benefit (a) | — | (11,006) | |||||||||||||||
Income from discontinued operations, net of tax (b) | $ | — | $ | 170,273 |
(In thousands) | December 2022 | March 2022 | December 2021 | ||||||||||||||||||||
Finished products | $ | 2,535,759 | $ | 1,353,483 | $ | 1,218,099 | |||||||||||||||||
Work-in-process | 41,307 | 50,774 | 49,933 | ||||||||||||||||||||
Raw materials | 14,849 | 14,416 | 19,178 | ||||||||||||||||||||
Total inventories | $ | 2,591,915 | $ | 1,418,673 | $ | 1,287,210 |
December 2022 | March 2022 | |||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 261,365 | $ | 169,401 | $ | 91,964 | $ | 103,703 | ||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||
Trademarks and trade names | 2,698,548 | 2,896,648 | ||||||||||||||||||||||||||||||||||||||||||
Intangible assets, net | $ | 2,790,512 | $ | 3,000,351 |
(In thousands) | Outdoor | Active | Work | Total | ||||||||||||||||||||||
Balance, March 2022 | $ | 660,786 | $ | 1,619,121 | $ | 113,900 | $ | 2,393,807 | ||||||||||||||||||
Impairment charge | — | (229,044) | — | (229,044) | ||||||||||||||||||||||
Currency translation | (7,017) | (14,507) | (838) | (22,362) | ||||||||||||||||||||||
Balance, December 2022 | $ | 653,769 | $ | 1,375,570 | $ | 113,062 | $ | 2,142,401 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Operating lease cost | $ | 103,127 | $ | 105,888 | $ | 306,259 | $ | 329,548 | |||||||||||||||||||||||||||
Other lease cost | 37,784 | 34,092 | 104,960 | 84,522 | |||||||||||||||||||||||||||||||
Total lease cost | $ | 140,911 | $ | 139,980 | $ | 411,219 | $ | 414,070 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 2,632 | $ | 3,547 | $ | 7,904 | $ | 10,737 | |||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10,754 | 9,332 | 34,065 | 28,174 | |||||||||||||||||||||||||||||||
Expected return on plan assets | (14,752) | (19,347) | (48,364) | (58,100) | |||||||||||||||||||||||||||||||
Settlement charges | 695 | 5,660 | 93,597 | 6,684 | |||||||||||||||||||||||||||||||
Amortization of deferred amounts: | |||||||||||||||||||||||||||||||||||
Net deferred actuarial losses | 3,858 | 2,858 | 11,532 | 8,569 | |||||||||||||||||||||||||||||||
Deferred prior service credits | (112) | (117) | (335) | (352) | |||||||||||||||||||||||||||||||
Net periodic pension cost (income) | $ | 3,075 | $ | 1,933 | $ | 98,399 | $ | (4,288) |
(In thousands) | December 2022 | March 2022 | December 2021 | ||||||||||||||||||||
Foreign currency translation and other | $ | (841,877) | $ | (751,632) | $ | (712,831) | |||||||||||||||||
Defined benefit pension plans | (164,346) | (230,290) | (248,971) | ||||||||||||||||||||
Derivative financial instruments | 76,635 | 55,343 | 24,345 | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (929,588) | $ | (926,579) | $ | (937,457) |
Three Months Ended December 2022 | ||||||||||||||||||||||||||
(In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
Balance, September 2022 | $ | (883,846) | $ | (166,545) | $ | 206,226 | $ | (844,165) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 41,969 | (850) | (101,665) | (60,546) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 3,049 | (27,926) | (24,877) | ||||||||||||||||||||||
Net other comprehensive income (loss) | 41,969 | 2,199 | (129,591) | (85,423) | ||||||||||||||||||||||
Balance, December 2022 | $ | (841,877) | $ | (164,346) | $ | 76,635 | $ | (929,588) |
Three Months Ended December 2021 | ||||||||||||||||||||||||||
(In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
Balance, September 2021 | $ | (687,120) | $ | (255,635) | $ | 1,921 | $ | (940,834) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (25,711) | 383 | 11,961 | (13,367) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 6,281 | 10,463 | 16,744 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (25,711) | 6,664 | 22,424 | 3,377 | ||||||||||||||||||||||
Balance, December 2021 | $ | (712,831) | $ | (248,971) | $ | 24,345 | $ | (937,457) |
Nine Months Ended December 2022 | ||||||||||||||||||||||||||
(In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
Balance, March 2022 | $ | (751,632) | $ | (230,290) | $ | 55,343 | $ | (926,579) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (90,245) | (11,226) | 68,719 | (32,752) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 77,170 | (47,427) | 29,743 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (90,245) | 65,944 | 21,292 | (3,009) | ||||||||||||||||||||||
Balance, December 2022 | $ | (841,877) | $ | (164,346) | $ | 76,635 | $ | (929,588) | ||||||||||||||||||
Nine Months Ended December 2021 | ||||||||||||||||||||||||||
(In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
Balance, March 2021 | $ | (700,173) | $ | (257,747) | $ | (51,080) | $ | (1,009,000) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (12,658) | (2,355) | 35,973 | 20,960 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 11,131 | 39,452 | 50,583 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (12,658) | 8,776 | 75,425 | 71,543 | ||||||||||||||||||||||
Balance, December 2021 | $ | (712,831) | $ | (248,971) | $ | 24,345 | $ | (937,457) |
(In thousands) | Three Months Ended December | Nine Months Ended December | |||||||||||||||||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||
Net deferred actuarial losses | Other income (expense), net | $ | (3,858) | $ | (2,858) | $ | (11,532) | $ | (8,569) | ||||||||||||||||||||||||||||||||
Deferred prior service credits | Other income (expense), net | 112 | 117 | 335 | 352 | ||||||||||||||||||||||||||||||||||||
Pension settlement charges | Other income (expense), net | (695) | (5,660) | (93,597) | (6,684) | ||||||||||||||||||||||||||||||||||||
Total before tax | (4,441) | (8,401) | (104,794) | (14,901) | |||||||||||||||||||||||||||||||||||||
Tax benefit | 1,392 | 2,120 | 27,624 | 3,770 | |||||||||||||||||||||||||||||||||||||
Net of tax | (3,049) | (6,281) | (77,170) | (11,131) | |||||||||||||||||||||||||||||||||||||
Gains (losses) on derivative financial instruments: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Net revenues | (2,759) | (9,284) | (18,243) | (16,045) | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of goods sold | 27,019 | (3,974) | 44,780 | (26,644) | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expenses | 1,816 | 688 | 5,380 | (418) | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | 6,802 | 104 | 24,055 | (2,958) | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | 27 | 27 | 81 | 81 | ||||||||||||||||||||||||||||||||||||
Total before tax | 32,905 | (12,439) | 56,053 | (45,984) | |||||||||||||||||||||||||||||||||||||
Tax (expense) benefit | (4,979) | 1,976 | (8,626) | 6,532 | |||||||||||||||||||||||||||||||||||||
Net of tax | 27,926 | (10,463) | 47,427 | (39,452) | |||||||||||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 24,877 | $ | (16,744) | $ | (29,743) | $ | (50,583) |
Nine Months Ended December 2022 | |||||||||||
Expected volatility | 30% to 45% | ||||||||||
Weighted average expected volatility | 39% | ||||||||||
Expected term (in years) | 6.0 to 7.8 | ||||||||||
Weighted average dividend yield | 2.9% | ||||||||||
Risk-free interest rate | 1.53% to 4.75% | ||||||||||
Weighted average fair value at date of grant | $13.48 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||||||||||||
Outdoor | $ | 2,003,045 | $ | 1,928,427 | $ | 4,326,997 | $ | 4,052,802 | |||||||||||||||||||||||||||
Active | 1,258,682 | 1,410,577 | 3,772,737 | 4,104,818 | |||||||||||||||||||||||||||||||
Work | 268,940 | 285,101 | 772,980 | 858,999 | |||||||||||||||||||||||||||||||
Other | — | 279 | 148 | 557 | |||||||||||||||||||||||||||||||
Total segment revenues | $ | 3,530,667 | $ | 3,624,384 | $ | 8,872,862 | $ | 9,017,176 | |||||||||||||||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||||||||||
Outdoor | $ | 457,027 | $ | 450,432 | $ | 670,615 | $ | 662,761 | |||||||||||||||||||||||||||
Active | 146,885 | 254,497 | 541,171 | 809,708 | |||||||||||||||||||||||||||||||
Work | 18,487 | 47,672 | 92,989 | 150,649 | |||||||||||||||||||||||||||||||
Other | (134) | (44) | (516) | (696) | |||||||||||||||||||||||||||||||
Total segment profit | 622,265 | 752,557 | 1,304,259 | 1,622,422 | |||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | (421,922) | — | |||||||||||||||||||||||||||||||
Corporate and other expenses | (116,133) | (74,210) | (507,656) | (166,115) | |||||||||||||||||||||||||||||||
Interest expense, net | (50,230) | (33,388) | (115,395) | (100,533) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment | — | (3,645) | — | (3,645) | |||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 455,902 | $ | 641,314 | $ | 259,286 | $ | 1,352,129 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Earnings per share – basic: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 507,868 | $ | 517,801 | $ | 333,476 | $ | 1,135,826 | |||||||||||||||||||||||||||
Weighted average common shares outstanding | 387,739 | 390,430 | 387,663 | 391,187 | |||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $ | 1.31 | $ | 1.33 | $ | 0.86 | $ | 2.90 | |||||||||||||||||||||||||||
Earnings per share – diluted: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 507,868 | $ | 517,801 | $ | 333,476 | $ | 1,135,826 | |||||||||||||||||||||||||||
Weighted average common shares outstanding | 387,739 | 390,430 | 387,663 | 391,187 | |||||||||||||||||||||||||||||||
Incremental shares from stock options and other dilutive securities | 453 | 2,065 | 694 | 2,360 | |||||||||||||||||||||||||||||||
Adjusted weighted average common shares outstanding | 388,192 | 392,495 | 388,357 | 393,547 | |||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $ | 1.31 | $ | 1.32 | $ | 0.86 | $ | 2.89 |
Total Fair Value | Fair Value Measurement Using (a) | |||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 2022 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Money market funds | $ | 37,237 | $ | 37,237 | $ | — | $ | — | ||||||||||||||||||
Time deposits | 60,572 | 60,572 | — | — | ||||||||||||||||||||||
Derivative financial instruments | 84,918 | — | 84,918 | — | ||||||||||||||||||||||
Deferred compensation | 98,221 | 98,221 | — | — | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | 58,776 | — | 58,776 | — | ||||||||||||||||||||||
Deferred compensation | 98,905 | — | 98,905 | — | ||||||||||||||||||||||
Total Fair Value | Fair Value Measurement Using (a) | |||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
March 2022 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Money market funds | $ | 324,868 | $ | 324,868 | $ | — | $ | — | ||||||||||||||||||
Time deposits | 1,100 | 1,100 | — | — | ||||||||||||||||||||||
Derivative financial instruments | 79,046 | — | 79,046 | — | ||||||||||||||||||||||
Deferred compensation | 125,323 | 125,323 | — | — | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | 27,723 | — | 27,723 | — | ||||||||||||||||||||||
Deferred compensation | 129,078 | — | 129,078 | — | ||||||||||||||||||||||
Contingent consideration | 56,976 | — | — | 56,976 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Beginning Balance | $ | — | $ | 99,000 | $ | 56,976 | $ | 207,000 | |||||||||||||||||||||||||||
Change in fair value | — | (50,000) | — | (158,000) | |||||||||||||||||||||||||||||||
Cash payout | — | — | (56,976) | — | |||||||||||||||||||||||||||||||
Ending Balance | $ | — | $ | 49,000 | $ | — | $ | 49,000 |
Fair Value of Derivatives with Unrealized Gains | Fair Value of Derivatives with Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | December 2022 | March 2022 | December 2021 | December 2022 | March 2022 | December 2021 | |||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 80,435 | $ | 79,046 | $ | 55,000 | $ | (58,455) | $ | (27,678) | $ | (32,660) | |||||||||||||||||||||||||||||||||||
Interest rate contracts | 422 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | 80,857 | 79,046 | 55,000 | (58,455) | (27,678) | (32,660) | |||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 4,061 | — | 2,466 | (321) | (45) | (327) | |||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 84,918 | $ | 79,046 | $ | 57,466 | $ | (58,776) | $ | (27,723) | $ | (32,987) |
December 2022 | March 2022 | December 2021 | |||||||||||||||||||||||||||||||||||||||
(In thousands) | Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | |||||||||||||||||||||||||||||||||||
Gross amounts presented in the Consolidated Balance Sheets | $ | 84,918 | $ | (58,776) | $ | 79,046 | $ | (27,723) | $ | 57,466 | $ | (32,987) | |||||||||||||||||||||||||||||
Gross amounts not offset in the Consolidated Balance Sheets | (24,024) | 24,024 | (18,721) | 18,721 | (22,964) | 22,964 | |||||||||||||||||||||||||||||||||||
Net amounts | $ | 60,894 | $ | (34,752) | $ | 60,325 | $ | (9,002) | $ | 34,502 | $ | (10,023) |
(In thousands) | December 2022 | March 2022 | December 2021 | |||||||||||||||||||||||
Derivative Instruments | Balance Sheet Location | |||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 79,862 | $ | 71,910 | $ | 50,298 | |||||||||||||||||||
Foreign exchange contracts | Accrued liabilities | (42,274) | (24,267) | (28,326) | ||||||||||||||||||||||
Foreign exchange contracts | Other assets | 4,634 | 7,136 | 7,168 | ||||||||||||||||||||||
Foreign exchange contracts | Other liabilities | (16,502) | (3,456) | (4,661) | ||||||||||||||||||||||
Interest rate contracts | Other assets | 422 | — | — |
(In thousands) | Gain (Loss) on Derivatives Recognized in OCI Three Months Ended December | Gain (Loss) on Derivatives Recognized in OCI Nine Months Ended December | |||||||||||||||||||||||||||||||||
Cash Flow Hedging Relationships | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (120,057) | $ | 14,185 | $ | 82,058 | $ | 43,983 | |||||||||||||||||||||||||||
Interest rate contracts | 422 | — | 422 | — | |||||||||||||||||||||||||||||||
Total | $ | (119,635) | $ | 14,185 | $ | 82,480 | $ | 43,983 |
(In thousands) | Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended December | Gain (Loss) Reclassified from Accumulated OCI into Income Nine Months Ended December | ||||||||||||||||||||||||||||||||||||
Cash Flow Hedging Relationships | Location of Gain (Loss) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Foreign exchange contracts | Net revenues | $ | (2,759) | $ | (9,284) | $ | (18,243) | $ | (16,045) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of goods sold | 27,019 | (3,974) | 44,780 | (26,644) | |||||||||||||||||||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expenses | 1,816 | 688 | 5,380 | (418) | |||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | 6,802 | 104 | 24,055 | (2,958) | |||||||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | 27 | 27 | 81 | 81 | |||||||||||||||||||||||||||||||||
Total | $ | 32,905 | $ | (12,439) | $ | 56,053 | $ | (45,984) |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Severance and employee-related benefits | $ | 10,607 | $ | 3,056 | $ | 50,165 | $ | 7,352 | |||||||||||||||||||||||||||
Accelerated depreciation | 25 | 590 | 7,276 | 4,057 | |||||||||||||||||||||||||||||||
Contract termination and other | 460 | — | 5,563 | — | |||||||||||||||||||||||||||||||
Total restructuring charges | $ | 11,092 | $ | 3,646 | $ | 63,004 | $ | 11,409 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Outdoor | $ | 391 | $ | 1,529 | $ | 887 | $ | 4,206 | |||||||||||||||||||||||||||
Active | — | — | 1,478 | 1,008 | |||||||||||||||||||||||||||||||
Work | — | 1,527 | 9 | 2,315 | |||||||||||||||||||||||||||||||
Corporate and other | 10,701 | 590 | 60,630 | 3,880 | |||||||||||||||||||||||||||||||
Total | $ | 11,092 | $ | 3,646 | $ | 63,004 | $ | 11,409 |
(In thousands) | Severance | Other | Total | |||||||||||||||||
Accrual at March 2022 | $ | 25,640 | $ | 1,211 | $ | 26,851 | ||||||||||||||
Charges | 50,165 | 5,563 | 55,728 | |||||||||||||||||
Cash payments and settlements | (30,598) | (457) | (31,055) | |||||||||||||||||
Adjustments to accruals | (3,205) | 53 | (3,152) | |||||||||||||||||
Impact of foreign currency | 192 | 363 | 555 | |||||||||||||||||
Accrual at December 2022 | $ | 42,194 | $ | 6,733 | $ | 48,927 |
ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
RECENT DEVELOPMENTS |
HIGHLIGHTS OF THE THIRD QUARTER OF FISCAL 2023 |
ANALYSIS OF RESULTS OF OPERATIONS |
Consolidated Statements of Operations |
(In millions) | Three Months Ended December | Nine Months Ended December | |||||||||||||||
Net revenues — 2021 | $ | 3,624.4 | $ | 9,017.2 | |||||||||||||
Organic | 93.5 | 333.7 | |||||||||||||||
Impact of foreign currency | (187.2) | (478.0) | |||||||||||||||
Net revenues — 2022 | $ | 3,530.7 | $ | 8,872.9 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Gross margin (net revenues less cost of goods sold) | 54.9 | % | 56.1 | % | 53.4 | % | 55.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 40.3 | 37.4 | 43.1 | 39.3 | |||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | 4.8 | — | |||||||||||||||||||||||||||||||
Operating margin | 14.6 | % | 18.7 | % | 5.5 | % | 16.0 | % |
Information by Reportable Segment |
Three Months Ended December | ||||||||||||||||||||||||||||||||
(In millions) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Segment revenues — 2021 | $ | 1,928.4 | $ | 1,410.6 | $ | 285.1 | $ | 0.3 | $ | 3,624.4 | ||||||||||||||||||||||
Organic | 190.4 | (88.7) | (7.9) | (0.3) | 93.5 | |||||||||||||||||||||||||||
Impact of foreign currency | (115.8) | (63.2) | (8.3) | — | (187.2) | |||||||||||||||||||||||||||
Segment revenues — 2022 | $ | 2,003.0 | $ | 1,258.7 | $ | 268.9 | $ | — | $ | 3,530.7 | ||||||||||||||||||||||
Nine Months Ended December | ||||||||||||||||||||||||||||||||
(In millions) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Segment revenues — 2021 | $ | 4,052.8 | $ | 4,104.8 | $ | 859.0 | $ | 0.6 | $ | 9,017.2 | ||||||||||||||||||||||
Organic | 535.8 | (136.9) | (64.8) | (0.5) | 333.7 | |||||||||||||||||||||||||||
Impact of foreign currency | (261.6) | (195.2) | (21.2) | — | (478.0) | |||||||||||||||||||||||||||
Segment revenues — 2022 | $ | 4,327.0 | $ | 3,772.7 | $ | 773.0 | $ | 0.1 | $ | 8,872.9 |
Three Months Ended December | ||||||||||||||||||||||||||||||||
(In millions) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Segment profit (loss) — 2021 | $ | 450.4 | $ | 254.5 | $ | 47.7 | $ | — | $ | 752.6 | ||||||||||||||||||||||
Organic | 39.2 | (93.5) | (28.5) | (0.2) | (82.9) | |||||||||||||||||||||||||||
Impact of foreign currency | (32.6) | (14.1) | (0.7) | 0.1 | (47.4) | |||||||||||||||||||||||||||
Segment profit (loss) — 2022 | $ | 457.0 | $ | 146.9 | $ | 18.5 | $ | (0.1) | $ | 622.3 | ||||||||||||||||||||||
Nine Months Ended December | ||||||||||||||||||||||||||||||||
(In millions) | Outdoor | Active | Work | Other | Total | |||||||||||||||||||||||||||
Segment profit (loss) — 2021 | $ | 662.8 | $ | 809.7 | $ | 150.6 | $ | (0.7) | $ | 1,622.4 | ||||||||||||||||||||||
Organic | 59.4 | (224.0) | (55.2) | 0.1 | (219.6) | |||||||||||||||||||||||||||
Impact of foreign currency | (51.6) | (44.5) | (2.4) | 0.1 | (98.5) | |||||||||||||||||||||||||||
Segment profit (loss) — 2022 | $ | 670.6 | $ | 541.2 | $ | 93.0 | $ | (0.5) | $ | 1,304.3 |
Top Brand Revenues: | ||||||||||||||||||||||||||||||||
Three Months Ended December 2022 | ||||||||||||||||||||||||||||||||
(In millions) | Vans® | The North Face® | Timberland® (a) | Dickies® | Total | |||||||||||||||||||||||||||
Americas | $ | 625.6 | $ | 731.8 | $ | 330.7 | $ | 125.4 | $ | 1,813.5 | ||||||||||||||||||||||
Europe | 185.1 | 417.8 | 195.0 | 26.8 | 824.7 | |||||||||||||||||||||||||||
Asia-Pacific | 116.2 | 171.6 | 69.8 | 24.8 | 382.4 | |||||||||||||||||||||||||||
Global | $ | 926.9 | $ | 1,321.2 | $ | 595.5 | $ | 177.0 | $ | 3,020.6 | ||||||||||||||||||||||
Three Months Ended December 2021 | ||||||||||||||||||||||||||||||||
(In millions) | Vans® | The North Face® | Timberland® (a) | Dickies® | Total | |||||||||||||||||||||||||||
Americas | $ | 717.0 | $ | 678.3 | $ | 304.1 | $ | 155.5 | $ | 1,854.9 | ||||||||||||||||||||||
Europe | 194.6 | 415.7 | 204.6 | 18.6 | 833.5 | |||||||||||||||||||||||||||
Asia-Pacific | 148.9 | 146.4 | 84.6 | 37.4 | 417.3 | |||||||||||||||||||||||||||
Global | $ | 1,060.4 | $ | 1,240.3 | $ | 593.4 | $ | 211.5 | $ | 3,105.6 | ||||||||||||||||||||||
Nine Months Ended December 2022 | ||||||||||||||||||||||||||||||||
(In millions) | Vans® | The North Face® | Timberland® (a) | Dickies® | Total | |||||||||||||||||||||||||||
Americas | $ | 1,859.9 | $ | 1,511.9 | $ | 737.7 | $ | 386.3 | $ | 4,495.8 | ||||||||||||||||||||||
Europe | 608.3 | 874.1 | 485.8 | 68.3 | 2,036.5 | |||||||||||||||||||||||||||
Asia-Pacific | 357.6 | 367.1 | 165.6 | 79.2 | 969.5 | |||||||||||||||||||||||||||
Global | $ | 2,825.9 | $ | 2,753.2 | $ | 1,389.1 | $ | 533.7 | $ | 7,501.9 | ||||||||||||||||||||||
Nine Months Ended December 2021 | ||||||||||||||||||||||||||||||||
(In millions) | Vans® | The North Face® | Timberland® (a) | Dickies® | Total | |||||||||||||||||||||||||||
Americas | $ | 2,008.2 | $ | 1,334.8 | $ | 734.1 | $ | 470.9 | $ | 4,548.0 | ||||||||||||||||||||||
Europe | 669.6 | 852.4 | 472.2 | 58.2 | 2,052.4 | |||||||||||||||||||||||||||
Asia-Pacific | 492.9 | 303.1 | 181.8 | 111.6 | 1,089.4 | |||||||||||||||||||||||||||
Global | $ | 3,170.7 | $ | 2,490.2 | $ | 1,388.2 | $ | 640.7 | $ | 7,689.8 |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | 2,003.0 | $ | 1,928.4 | 3.9 | % | $ | 4,327.0 | $ | 4,052.8 | 6.8 | % | |||||||||||||||||||||||||||||||||||
Segment profit | 457.0 | 450.4 | 1.5 | % | 670.6 | 662.8 | 1.2 | % | |||||||||||||||||||||||||||||||||||||||
Operating margin | 22.8 | % | 23.4 | % | 15.5 | % | 16.4 | % |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | 1,258.7 | $ | 1,410.6 | (10.8) | % | $ | 3,772.7 | $ | 4,104.8 | (8.1) | % | |||||||||||||||||||||||||||||||||||
Segment profit | 146.9 | 254.5 | (42.3) | % | 541.2 | 809.7 | (33.2) | % | |||||||||||||||||||||||||||||||||||||||
Operating margin | 11.7 | % | 18.0 | % | 14.3 | % | 19.7 | % |
Three Months Ended December | Nine Months Ended December | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | 268.9 | $ | 285.1 | (5.7) | % | $ | 773.0 | $ | 859.0 | (10.0) | % | |||||||||||||||||||||||||||||||||||
Segment profit | 18.5 | 47.7 | (61.2) | % | 93.0 | 150.6 | (38.3) | % | |||||||||||||||||||||||||||||||||||||||
Operating margin | 6.9 | % | 16.7 | % | 12.0 | % | 17.5 | % |
Reconciliation of Segment Profit to Income Before Income Taxes |
International Operations |
Direct-to-Consumer Operations |
ANALYSIS OF FINANCIAL CONDITION |
Consolidated Balance Sheets |
Liquidity and Capital Resources |
December | March | December | |||||||||||||||||||||
(Dollars in millions) | 2022 | 2022 | 2021 | ||||||||||||||||||||
Working capital | $697.7 | $1,272.7 | $1,376.8 | ||||||||||||||||||||
Current ratio | 1.2 to 1 | 1.4 to 1 | 1.4 to 1 | ||||||||||||||||||||
Net debt to total capital | 68.7% | 61.0% | 59.4% |
Nine Months Ended December | |||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||
Cash provided (used) by operating activities | $ | (833,472) | $ | 791,290 | |||||||||||||
Cash provided (used) by investing activities | (206,833) | 953,936 | |||||||||||||||
Cash provided (used) by financing activities | 418,719 | (1,257,664) |
Recent Accounting Pronouncements |
Critical Accounting Policies and Estimates |
Cautionary Statement on Forward-looking Statements |
ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4 — CONTROLS AND PROCEDURES. |
ITEM 1 — LEGAL PROCEEDINGS. |
ITEM 1A — RISK FACTORS. |
BUSINESS AND OPERATIONAL RISKS |
LEGAL, REGULATORY AND COMPLIANCE RISKS |
FINANCIAL RISKS |
ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Third Quarter Fiscal 2023 | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Dollar Value of Shares that May Yet be Purchased Under the Program | ||||||||||||||||||||||
October 2 - October 29, 2022 | — | $ | — | — | $ | 2,486,971,057 | ||||||||||||||||||||
October 30 - November 26, 2022 | — | — | — | 2,486,971,057 | ||||||||||||||||||||||
November 27 - December 31, 2022 | — | — | — | 2,486,971,057 | ||||||||||||||||||||||
Total | — | — |
ITEM 6 — EXHIBITS. |
Retirement and General Release Agreement dated December 2, 2022 | ||||||||
Certification of Chief Executive Officer, pursuant to 15 U.S.C. Section 10A, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer, pursuant to 15 U.S.C. Section 10A, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
V.F. CORPORATION | |||||||||||
(Registrant) | |||||||||||
By: | /s/ Matthew H. Puckett | ||||||||||
Matthew H. Puckett | |||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||||||
Date: February 8, 2023 | By: | /s/ Bryan H. McNeill | |||||||||
Bryan H. McNeill | |||||||||||
Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) |
February 8, 2023 | /s/ Benno Dorer | ||||
Benno Dorer | |||||
Interim President and Chief Executive Officer |
February 8, 2023 | /s/ Matthew H. Puckett | ||||
Matthew H. Puckett | |||||
Executive Vice President and Chief Financial Officer |
February 8, 2023 | /s/ Benno Dorer | ||||
Benno Dorer | |||||
Interim President and Chief Executive Officer |
February 8, 2023 | /s/ Matthew H. Puckett | ||||
Matthew H. Puckett | |||||
Executive Vice President and Chief Financial Officer |