±¬×ߺÚÁÏ

Quarterly report [Sections 13 or 15(d)]

DISCONTINUED OPERATIONS

v3.25.2
DISCONTINUED OPERATIONS
 3 Months Ended
Jun. 28, 2025
Discontinued Operations and Disposal Groups [Abstract] Ìý
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
The ±¬×ߺÚÁÏ 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 $1.500Ìýbillion, 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 $1.506Ìýbillion, net of cash sold, resulting in a final after-tax loss on sale of $126.6Ìýmillion. VF used a portion of the net cash proceeds to prepay $1.0Ìýbillion 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 $450.0Ìýmillion of commercial paper borrowings upon maturity during the third quarter of Fiscal 2025.
During the second quarter of Fiscal 2025, the ±¬×ߺÚÁÏ determined that Supreme met the held-for-sale and discontinued operations accounting criteria. Accordingly, the ±¬×ߺÚÁÏ 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 $94.0Ìýmillion and $51.0Ìýmillion to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset, respectively.
Under the terms of a transition services agreement, the ±¬×ߺÚÁÏ 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:
Ìý Three Months Ended June
(In thousands)
2025 (a)
2024
Revenues $ —Ìý $ 138,241Ìý
Cost of goods sold —Ìý 52,261Ìý
Selling, general and administrative expenses —Ìý 57,853Ìý
Impairment of goodwill and intangible assets —Ìý 145,000Ìý
Interest expense, net (b)
—Ìý (14,730)
Other income (expense), net —Ìý (464)
Loss from discontinued operations before income taxes —Ìý (132,067)
Income tax benefit —Ìý (25,208)
Loss from discontinued operations, net of tax $ —Ìý $ (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 impact for the DDTL were allocated 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 $ 11,984Ìý
Accounts receivable, net 6,203Ìý
Inventories 50,870Ìý
Other current assets 25,867Ìý
Property, plant and equipment, net 34,401Ìý
Intangible assets, net 801,000Ìý
Goodwill 717,562Ìý
Operating lease right-of-use assets 72,047Ìý
Other assets 18,790Ìý
Deferred income tax assets (a)
(80,692)
Total assets of discontinued operations $ 1,658,032Ìý
Accounts payable $ 21,519Ìý
Accrued liabilities 41,405Ìý
Operating lease liabilities 67,232Ìý
Other liabilities 2,417Ìý
Total liabilities of discontinued operations $ 132,573Ìý
(a)Deferred income tax balances reflect VF’s consolidated netting by jurisdiction.