Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 29, 2018
or
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number: 1-5256

vfcirclelogoa04.jpg

V. F. CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania
 
23-1180120
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. employer identification number)
105 Corporate Center Boulevard
Greensboro, North Carolina 27408
(Address of principal executive offices)
(336) 424-6000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
 
þ 
  
Accelerated filer
 
¨
 
 
 
 
 
 
Non-accelerated filer
 
¨ 
  
Smaller reporting company
 
¨
 
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ 
On January 26, 2019, there were 395,605,444 shares of the registrant’s common stock outstanding.


VF CORPORATION
Table of Contents
 
Page
No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



PART I — FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED)
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
 
December 2018
 
 
March 2018
 
December 2017
ASSETS
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
Cash and equivalents
 
$
535,312

 
 
$
680,762

 
$
563,483

Accounts receivable, less allowance for doubtful accounts of: December 2018 – $28,483; March 2018 – $24,993; December 2017 – $26,266
 
1,774,460

 
 
1,408,587

 
1,429,986

Inventories
 
1,866,075

 
 
1,861,441

 
1,706,609

Other current assets
 
436,244

 
 
358,953

 
296,986

Current assets of discontinued operations
 
—

 
 
373,580

 
380,700

Total current assets
 
4,612,091

 
 
4,683,323

 
4,377,764

Property, plant and equipment, net
 
1,041,640

 
 
1,011,617

 
1,014,638

Intangible assets, net
 
2,055,965

 
 
2,120,110

 
2,089,781

Goodwill
 
1,756,156

 
 
1,693,219

 
1,692,644

Other assets
 
818,458

 
 
803,041

 
783,675

TOTAL ASSETS
 
$
10,284,310

 
 
$
10,311,310

 
$
9,958,502

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
Short-term borrowings
 
$
677,891

 
 
$
1,525,106

 
$
729,384

Current portion of long-term debt
 
5,576

 
 
6,265

 
6,165

Accounts payable
 
645,678

 
 
583,004

 
760,997

Accrued liabilities
 
1,233,902

 
 
938,427

 
1,146,535

Current liabilities of discontinued operations
 
—

 
 
86,027

 
101,019

Total current liabilities
 
2,563,047

 
 
3,138,829

 
2,744,100

Long-term debt
 
2,135,240

 
 
2,212,555

 
2,187,789

Other liabilities
 
1,285,399

 
 
1,271,830

 
1,306,713

Commitments and contingencies
 

 
 

 

Total liabilities
 
5,983,686

 
 
6,623,214

 
6,238,602

Stockholders’ equity
 
 
 
 
 
 
 
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at December 2018, March 2018 or December 2017
 
—

 
 
—

 
—

Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at December 2018 – 395,472,173; March 2018 – 394,313,070; December 2017 – 395,821,781
 
98,868

 
 
98,578

 
98,955

Additional paid-in capital
 
3,829,994

 
 
3,607,424

 
3,523,340

Accumulated other comprehensive income (loss)
 
(886,565
)
 
 
(864,030
)
 
(926,140
)
Retained earnings
 
1,258,327

 
 
846,124

 
1,023,745

Total stockholders’ equity
 
4,300,624

 
 
3,688,096

 
3,719,900

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
10,284,310

 
 
$
10,311,310

 
$
9,958,502



See notes to consolidated financial statements.


3 VF Corporation Q3 FY19 Form 10-Q

VF CORPORATION
Consolidated Statements of Income
(Unaudited)
 
 
Three Months Ended December
 
 
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except per share amounts)
 
2018
 
 
2017
 
 
2018
 
 
2017
Net revenues
 
$
3,940,159

 
 
$
3,649,283

 
 
$
10,635,691

 
 
$
9,310,837

Costs and operating expenses
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
1,896,472

 
 
1,769,819

 
 
5,232,050

 
 
4,601,336

Selling, general and administrative expenses
 
1,451,782

 
 
1,394,845

 
 
3,922,185

 
 
3,489,679

Total costs and operating expenses
 
3,348,254

 
 
3,164,664

 
 
9,154,235

 
 
8,091,015

Operating income
 
591,905

 
 
484,619

 
 
1,481,456

 
 
1,219,822

Interest income
 
4,550

 
 
4,423

 
 
10,788

 
 
12,577

Interest expense
 
(28,397
)
 
 
(26,971
)
 
 
(84,032
)
 
 
(78,269
)
Other income (expense), net
 
(1,774
)
 
 
(1,902
)
 
 
(56,495
)
 
 
(7,032
)
Income from continuing operations before income taxes
 
566,284

 
 
460,169

 
 
1,351,717

 
 
1,147,098

Income taxes
 
103,158

 
 
533,148

 
 
221,517

 
 
639,165

Income (loss) from continuing operations
 
463,126

 
 
(72,979
)
 
 
1,130,200

 
 
507,933

Income (loss) from discontinued operations, net of tax
 
383

 
 
(17,290
)
 
 
788

 
 
(102,173
)
Net income (loss)
 
$
463,509

 
 
$
(90,269
)
 
 
$
1,130,988

 
 
$
405,760

Earnings (loss) per common share - basic
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
1.17

 
 
$
(0.18
)
 
 
$
2.86

 
 
$
1.29

Discontinued operations
 
—

 
 
(0.04
)
 
 
—

 
 
(0.26
)
Total earnings (loss) per common share - basic
 
$
1.17

 
 
$
(0.23
)
 
 
$
2.86

 
 
$
1.03

Earnings (loss) per common share - diluted
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
1.16

 
 
$
(0.18
)
 
 
$
2.82

 
 
$
1.27

Discontinued operations
 
—

 
 
(0.04
)
 
 
—

 
 
(0.26
)
Total earnings (loss) per common share - diluted
 
$
1.16

 
 
$
(0.23
)
 
 
$
2.82

 
 
$
1.02

Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 
Basic
 
395,294

 
 
394,577

 
 
395,117

 
 
394,967

Diluted
 
399,767

 
 
400,378

 
 
400,418

 
 
399,425











See notes to consolidated financial statements.


VF Corporation Q3 FY19 Form 10-Q 4


VF CORPORATION
Consolidated Statements of Comprehensive Income
(Unaudited)
 
 
Three Months Ended December
 
 
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
2018
 
 
2017
 
 
2018
 
 
2017
Net income (loss)
 
$
463,509

 
 
$
(90,269
)
 
 
$
1,130,988

 
 
$
405,760

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation and other
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the period
 
(67,820
)
 
 
13,779

 
 
(241,578
)
 
 
154,603

Income tax effect
 
(3,345
)
 
 
7,984

 
 
(18,680
)
 
 
41,477

Defined benefit pension plans
 
 
 
 
 
 
 
 
 
 
 
Amortization of net deferred actuarial losses
 
6,676

 
 
10,026

 
 
22,153

 
 
30,058

Amortization of deferred prior service costs (credits)
 
(58
)
 
 
646

 
 
552

 
 
1,934

Current period actuarial gains (losses)
 
1,428

 
 
(45,356
)
 
 
53,470

 
 
(45,356
)
Curtailment losses and settlement charges
 
662

 
 
6,230

 
 
18,329

 
 
6,230

Income tax effect
 
(2,313
)
 
 
4,664

 
 
(24,530
)
 
 
(3,094
)
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the period
 
43,836

 
 
(21,136
)
 
 
153,705

 
 
(128,622
)
Income tax effect
 
(7,217
)
 
 
5,892

 
 
(18,664
)
 
 
13,076

Reclassification to net income for (gains) losses realized
 
5,391

 
 
8,352

 
 
35,554

 
 
(7,576
)
Income tax effect
 
(889
)
 
 
(2,325
)
 
 
(2,846
)
 
 
(830
)
Other comprehensive income (loss)
 
(23,649
)
 
 
(11,244
)
 
 
(22,535
)
 
 
61,900

Comprehensive income (loss)
 
$
439,860

 
 
$
(101,513
)
 
 
$
1,108,453

 
 
$
467,660















See notes to consolidated financial statements.


5 VF Corporation Q3 FY19 Form 10-Q

VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 
 
Nine Months Ended December
 
 
 
 
 
 
(In thousands)
 
2018 (a)
 
 
2017 (a)
OPERATING ACTIVITIES
 
 
 
 
 
Net income
 
$
1,130,988

 
 
$
405,760

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
Impairment of goodwill
 
—

 
 
104,651

Depreciation and amortization
 
216,361

 
 
224,065

Stock-based compensation
 
80,501

 
 
66,600

Provision for doubtful accounts
 
16,325

 
 
18,481

Pension expense in excess of contributions
 
2,932

 
 
17,241

Loss on sale of businesses, net of tax
 
28,115

 
 
27,426

Other, net
 
(36,404
)
 
 
(101,154
)
Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable
 
(428,753
)
 
 
(22,854
)
Inventories
 
(58,401
)
 
 
176,717

Accounts payable
 
62,175

 
 
228,727

Income taxes
 
(39,971
)
 
 
494,406

Accrued liabilities
 
491,925

 
 
54,649

Other assets and liabilities
 
(29,130
)
 
 
(9,893
)
Cash provided by operating activities
 
1,436,663

 
 
1,684,822

INVESTING ACTIVITIES
 
 
 
 
 
Business acquisitions, net of cash received
 
(320,405
)
 
 
(740,541
)
Proceeds from sale of businesses, net of cash sold
 
430,273

 
 
214,968

Capital expenditures
 
(195,250
)
 
 
(128,697
)
Software purchases
 
(42,548
)
 
 
(44,520
)
Other, net
 
(20,616
)
 
 
(9,124
)
Cash used by investing activities
 
(148,546
)
 
 
(707,914
)
FINANCING ACTIVITIES
 
 
 
 
 
Net (decrease) increase in short-term borrowings
 
(852,547
)
 
 
424,297

Payments on long-term debt
 
(4,675
)
 
 
(253,410
)
Payment of debt issuance costs
 
(2,123
)
 
 
—

Purchases of treasury stock
 
(150,676
)
 
 
(762,059
)
Cash dividends paid
 
(565,176
)
 
 
(511,966
)
Proceeds from issuance of Common Stock, net of shares withheld for taxes
 
137,470

 
 
86,610

Cash used by financing activities
 
(1,437,727
)
 
 
(1,016,528
)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash
 
(681
)
 
 
737

Net change in cash, cash equivalents and restricted cash
 
(150,291
)
 
 
(38,883
)
Cash, cash equivalents and restricted cash – beginning of year
 
689,190

 
 
608,280

Cash, cash equivalents and restricted cash – end of period
 
$
538,899

 
 
$
569,397

 
 
 
 
 
 
Balances per Consolidated Balance Sheets:
 
 
 
 
 
Cash and cash equivalents
 
$
535,312

 
 
$
563,483

Other current assets
 
2,872

 
 
2,452

Current assets of discontinued operations
 
—

 
 
2,592

Other assets
 
715

 
 
870

Total cash, cash equivalents and restricted cash
 
$
538,899

 
 
$
569,397

(a) 
The cash flows related to discontinued operations have not been segregated, and remain included in the major classes of assets and liabilities. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.
See notes to consolidated financial statements.


VF Corporation Q3 FY19 Form 10-Q 6


VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
 
Three Months Ended December 2018
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, September 2018
397,161,808

 
$
99,290

 
$
3,795,395

 
$
(862,916
)
 
$
1,147,787

 
$
4,179,556

 
Net income
—

 
—

 
—

 
—

 
463,509

 
463,509

 
Dividends on Common Stock ($0.51 per share)
—

 
—

 
—

 
—

 
(201,325
)
 
(201,325
)
 
Purchase of treasury stock
(1,863,724
)
 
(466
)
 
—

 
—

 
(149,730
)
 
(150,196
)
 
Stock-based compensation, net
174,089

 
44

 
34,599

 
—

 
(1,914
)
 
32,729

 
Foreign currency translation and other
—

 
—

 
—

 
(71,165
)
 
—

 
(71,165
)
 
Defined benefit pension plans
—

 
—

 
—

 
6,395

 
—

 
6,395

 
Derivative financial instruments
—

 
—

 
—

 
41,121

 
—

 
41,121

 
Balance, December 2018
395,472,173

 
$
98,868

 
$
3,829,994

 
$
(886,565
)
 
$
1,258,327

 
$
4,300,624

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 2017
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, September 2017
394,502,698

 
$
98,626

 
$
3,456,661

 
$
(914,896
)
 
$
1,297,029

 
$
3,937,420

 
Net income
—

 
—

 
—

 
—

 
(90,269
)
 
(90,269
)
 
Dividends on Common Stock ($0.46 per share)
—

 
—

 
—

 
—

 
(181,686
)
 
(181,686
)
 
Purchase of treasury stock
—

 
—

 
—

 
—

 
—

 
—

 
Stock-based compensation, net
1,319,083

 
329

 
66,679

 
—

 
(1,329
)
 
65,679

 
Foreign currency translation and other
—

 
—

 
—

 
21,763

 
—

 
21,763

 
Defined benefit pension plans
—

 
—

 
—

 
(23,790
)
 
—

 
(23,790
)
 
Derivative financial instruments
—

 
—

 
—

 
(9,217
)
 
—

 
(9,217
)
 
Balance, December 2017
395,821,781

 
$
98,955

 
$
3,523,340

 
$
(926,140
)
 
$
1,023,745

 
$
3,719,900

 

Continued on next page.










See notes to consolidated financial statements.


7 VF Corporation Q3 FY19 Form 10-Q

VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
 
Nine Months Ended December 2018
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, March 2018
394,313,070

 
$
98,578

 
$
3,607,424

 
$
(864,030
)
 
$
846,124

 
$
3,688,096

 
Adoption of new accounting standard
—

 
—

 
—

 
—

 
1,956

 
1,956

 
Net income
—

 
—

 
—

 
—

 
1,130,988

 
1,130,988

 
Dividends on Common Stock ($1.43 per share)
—

 
—

 
—

 
—

 
(565,176
)
 
(565,176
)
 
Purchase of treasury stock
(1,868,934
)
 
(467
)
 
—

 
—

 
(150,209
)
 
(150,676
)
 
Stock-based compensation, net
3,028,037

 
757

 
222,570

 
—

 
(5,356
)
 
217,971

 
Foreign currency translation and other
—

 
—

 
—

 
(260,258
)
 
—

 
(260,258
)
 
Defined benefit pension plans
—

 
—

 
—

 
69,974

 
—

 
69,974

 
Derivative financial instruments
—

 
—

 
—

 
167,749

 
—

 
167,749

 
Balance, December 2018
395,472,173

 
$
98,868

 
$
3,829,994

 
$
(886,565
)
 
$
1,258,327

 
$
4,300,624

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended December 2017
 
 
 
 
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
 
 
 
Common Stock
 
 
 
 
 
 
 (In thousands, except share amounts)
Shares
 
Amounts
 
 
 
 
Total
 
Balance, March 2017
406,964,289

 
$
101,741

 
$
3,367,026

 
$
(988,040
)
 
$
1,892,330

 
$
4,373,057

 
Net income
—

 
—

 
—

 
—

 
405,760

 
405,760

 
Dividends on Common Stock ($1.30 per share)
—

 
—

 
—

 
—

 
(511,966
)
 
(511,966
)
 
Purchase of treasury stock
(13,993,773
)
 
(3,498
)
 
—

 
—

 
(758,561
)
 
(762,059
)
 
Stock-based compensation, net
2,851,265

 
712

 
156,314

 
—

 
(3,818
)
 
153,208

 
Foreign currency translation and other
—

 
—

 
—

 
196,080

 
—

 
196,080

 
Defined benefit pension plans
—

 
—

 
—

 
(10,228
)
 
—

 
(10,228
)
 
Derivative financial instruments
—

 
—

 
—

 
(123,952
)
 
—

 
(123,952
)
 
Balance, December 2017
395,821,781

 
$
98,955

 
$
3,523,340

 
$
(926,140
)
 
$
1,023,745

 
$
3,719,900

 










See notes to consolidated financial statements.


VF Corporation Q3 FY19 Form 10-Q 8


VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
NOTE 1 — BASIS OF PRESENTATION

VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) changed to a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. VF previously used a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. The Company's current fiscal year runs from April 1, 2018 through March 30, 2019 ("Fiscal 2019"). Accordingly, this Form 10-Q presents our third quarter of Fiscal 2019. For presentation purposes herein, all references to periods ended December 2018, March 2018 and December 2017 relate to the fiscal periods ended on December 29, 2018, March 31, 2018 and December 30, 2017, respectively.
The Nautica® brand business and the Licensing Business (which comprised the Licensed Sports Group and JanSport® brand collegiate businesses) have been reported as discontinued operations in our Consolidated Statements of Income, and the related held-for-sale assets and liabilities have been presented as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through their dates of disposal. These changes have been applied to all periods presented. Unless
 
otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and nine months ended December 2018 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2019. For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended December 30, 2017 (“2017 Form 10-K”).
NOTE 2 — RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standards
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics. Collectively, the guidance is referred to as FASB Accounting Standards Codification Topic 606 ("ASC 606"). The standard prescribes a five-step approach to revenue recognition: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. The Company adopted this standard on April 1, 2018, utilizing the modified retrospective method and applying this approach to contracts not completed as of that date. The cumulative effect of initially applying the new standard has been recognized in retained earnings. Comparative prior period information has not been restated and continues to be reported under accounting standards in effect for those periods.
 
The adoption of ASC 606 resulted in a net increase of $2.0 million in the retained earnings line item of the Consolidated Balance Sheet as of April 1, 2018. The cumulative effect adjustment relates primarily to i) recognition of revenues for certain wholesale and e-commerce transactions at shipment rather than upon delivery to the customer based on our evaluation of the transfer of control of the goods, ii) discontinued capitalization of certain costs related to ongoing customer arrangements and iii) adjustments to the timing of recognition for certain royalty amounts.
Other effects of the adoption include presentation of allowances for sales incentive programs, discounts, markdowns, chargebacks, and returns as refund liabilities rather than as a reduction to accounts receivable and presentation of the right of return asset within other current assets rather than as a component of inventory in the Consolidated Balance Sheet. Additionally, sourcing fees received from customers and advertising contributions from licensees that had previously been reported as an offset to costs or expenses are now reported as revenue in the Consolidated Statements of Income. Refer to Note 3 for additional revenue disclosures.


9 VF Corporation Q3 FY19 Form 10-Q

The following tables compare amounts reported in accordance with the requirements of ASC 606 to the amounts that would have been reported had the new standard not been applied:
Condensed Consolidated Balance Sheet
 
 
 
 
 
 
 
December 2018
 
(In thousands)
As Reported
 
Impact of Adoption
 
Balances without Adoption of ASC 606
 
ASSETS
 
 
 
 
 
 
Cash and equivalents
$
535,312

 
$
—

 
$
535,312

 
Accounts receivable, net
1,774,460

 
(223,546
)
 
1,550,914

 
Inventories
1,866,075

 
71,909

 
1,937,984

 
Other current assets
436,244

 
(64,794
)
 
371,450

 
Total current assets
4,612,091

 
(216,431
)
 
4,395,660

 
Property, plant and equipment, net
1,041,640

 
—

 
1,041,640

 
Goodwill and intangible assets, net
3,812,121

 
—

 
3,812,121

 
Other assets
818,458

 
345

 
818,803

 
TOTAL ASSETS
$
10,284,310

 
$
(216,086
)
 
$
10,068,224

 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
Short-term borrowings and current portion of long-term debt
$
683,467

 
$
—

 
$
683,467

 
Accounts payable
645,678

 
—

 
645,678

 
Accrued liabilities
1,233,902

 
(204,407
)
 
1,029,495

 
Total current liabilities
2,563,047

 
(204,407
)
 
2,358,640

 
Long-term debt
2,135,240

 
—

 
2,135,240

 
Other liabilities
1,285,399

 
(1,545
)
 
1,283,854

 
Total liabilities
5,983,686

 
(205,952
)
 
5,777,734

 
Total stockholders' equity
4,300,624

 
(10,134
)
 
4,290,490

 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
10,284,310

 
$
(216,086
)
 
$
10,068,224

 
Condensed Consolidated Statements of Income
 
 
Three Months Ended December 2018
 
 
Nine Months Ended December 2018
 
(In thousands)
As Reported
 
Impact of Adoption
 
Balances without Adoption of ASC 606
 
 
As Reported
 
Impact of Adoption
 
Balances without Adoption of ASC 606
 
Net revenues
$
3,940,159

 
$
7,702

 
$
3,947,861

 
 
$
10,635,691

 
$
(8,281
)
 
$
10,627,410

 
Cost of goods sold
1,896,472

 
2,802

 
1,899,274

 
 
5,232,050

 
(17,603
)
 
5,214,447

 
Selling, general and administrative expenses
1,451,782

 
6,266

 
1,458,048

 
 
3,922,185

 
15,060

 
3,937,245

 
Total costs and operating expenses
3,348,254

 
9,068

 
3,357,322

 
 
9,154,235

 
(2,543
)
 
9,151,692

 
Operating income
591,905

 
(1,366
)
 
590,539

 
 
1,481,456

 
(5,738
)
 
1,475,718

 
Interest income (expense) and other income (expense), net
(25,621
)
 
—

 
(25,621
)
 
 
(129,739
)
 
—

 
(129,739
)
 
Income from continuing operations before income taxes
566,284

 
(1,366
)
 
564,918

 
 
1,351,717

 
(5,738
)
 
1,345,979

 
Income taxes
103,158

 
(242
)
 
102,916

 
 
221,517

 
(1,016
)
 
220,501

 
Income from continuing operations
463,126

 
(1,124
)
 
462,002

 
 
1,130,200

 
(4,722
)
 
1,125,478

 
Income (loss) from discontinued operations, net of tax
383

 
—

 
383

 
 
788

 
(3,456
)
 
(2,668
)
 
Net income
$
463,509

 
$
(1,124
)
 
$
462,385

 
 
$
1,130,988

 
$
(8,178
)
 
$
1,122,810

 


VF Corporation Q3 FY19 Form 10-Q 10


Condensed Consolidated Statement of Cash Flows - Operating Activities
 
 
Nine Months Ended December 2018
 
(In thousands)
As Reported
 
Impact of Adoption
 
Activities without Adoption of ASC 606
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Net income
$
1,130,988

 
$
(8,178
)
 
$
1,122,810

 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
216,361

 
190

 
216,551

 
Other adjustments, net
91,469

 
3,193

 
94,662

 
Changes in operating assets and liabilities:
 
 
 
 
 
 
Accounts receivable
(428,753
)
 
213,953

 
(214,800
)
 
Inventories
(58,401
)
 
(66,338
)
 
(124,739
)
 
Accounts payable
62,175

 
—

 
62,175

 
Income taxes
(39,971
)
 
(1,016
)
 
(40,987
)
 
Accrued liabilities
491,925

 
(204,726
)
 
287,199

 
Other assets and liabilities
(29,130
)
 
62,922

 
33,792

 
Cash provided by operating activities
$
1,436,663

 
$
—

 
$
1,436,663

 
There was no impact to investing or financing activities within the Consolidated Statement of Cash Flows as a result of the adoption of ASC 606.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", an update to the accounting guidance related to the recognition and measurement of certain financial instruments. This guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This guidance became effective for VF in the first quarter of Fiscal 2019, but did not impact VF's consolidated financial statements. The FASB has subsequently issued an update to clarify the previous guidance. The amendments in this updated guidance became effective for VF in the second quarter of Fiscal 2019, but did not impact VF's consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-04, "Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products", an update to the accounting guidance on extinguishments of financial liabilities that exempts prepaid stored-value products, or gift cards, from the existing guidance. The updated guidance requires that financial liabilities related to prepaid stored-value products be subject to breakage accounting, consistent with ASC 606. This guidance became effective for VF in the first quarter of Fiscal 2019, but did not impact VF’s consolidated financial statements.
In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", an update to the accounting guidance that addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance became effective for VF in the first quarter of Fiscal 2019 but did not impact VF’s Consolidated Statements of Cash Flows.
In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business", an update that provides a more narrow framework to be used in evaluating whether a set of assets and activities constitutes a business. This guidance became effective for VF in the first quarter of Fiscal 2019 and was applied when accounting for the acquisitions
 
completed subsequent to the adoption date, but did not impact our conclusions on whether they were a business. Refer to Note 4 for further information related to acquisitions.
In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost", an update which requires employers to disaggregate the service cost component from other components of net periodic benefit costs. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and deferred actuarial gains and losses) separately and outside of operating income. The update specifies that only the service cost component is eligible for capitalization, which is consistent with VF’s current practice. The presentation change in the Consolidated Statements of Income requires application on a retrospective basis. The ASU was adopted by the Company on April 1, 2018, and as a result, VF reported increases in operating income and non-operating expense of $3.3 million and $6.4 million for the three and nine months ended December 2017, respectively. VF applied the practical expedient permitted under the guidance which allows entities to use information previously disclosed in the pension and other post-retirement benefit plans footnote as the basis to apply the retrospective presentation requirements. Refer to pension disclosure in Note 10.
In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting", an update that amends the scope of modification accounting for share-based payment arrangements. This update provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. This guidance became effective for VF beginning in the first quarter of Fiscal 2019, but did not impact VF’s consolidated financial statements.



11 VF Corporation Q3 FY19 Form 10-Q

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the Tax Cuts and Jobs Act ("Tax Act"). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that companies must make a policy decision to either record deferred taxes related to GILTI inclusions or treat any taxes on GILTI inclusions as period costs. The Company has completed its analysis related to this accounting policy election and has determined it will treat the taxes resulting from GILTI as a current-period expense, which is consistent with the treatment prior to the accounting policy election.
In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118", which allowed the Company to record provisional amounts in earnings for the year ended December 30, 2017 due to the complexities involved in accounting for the enactment of the Tax Act. The Company recognized the estimated income tax effects of the Tax Act in its 2017 consolidated financial statements in accordance with Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118 ("SAB 118") and recorded revisions of our provisional estimate during the three months ended March 2018, June 30, 2018 ("June 2018") and September 29, 2018 ("September 2018"). VF finalized its accounting for the impact of the Tax Act during the three months ended December 2018. Refer to Note 13 for more information regarding the amounts recorded.
Recently Issued Accounting Standards
In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", a new accounting standard on leasing. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. This new standard will require companies to record most leased assets and related liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. VF's cross-functional implementation team has completed the design phase of the project, which involved reviewing the standard's provisions, evaluating real estate and non-real estate lease arrangements and identifying arrangements that may contain embedded leases. This project is now in the final stages of the implementation phase which included collecting information from lease contracts, assessing potential embedded leases, evaluating accounting policy elections and implementing a new lease management system. Additionally, VF is updating processes and internal controls over systems and financial reporting to respond to relevant risks associated with the new standard including the preparation of the required financial information and new disclosures. VF expects this standard will have a material impact on the Consolidated Balance Sheets but does not expect it to have a material impact on the Consolidated Statements of Income. The Company will adopt the new standard in the first quarter of the year ended March 28, 2020 ("Fiscal 2020") utilizing the modified retrospective method and will recognize a cumulative-effect adjustment in retained earnings, if any, at the beginning of the period of adoption.
In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics.
 
This guidance will be effective for VF in the first quarter of the year ended April 3, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements.
In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. The FASB has subsequently issued updates to the standard to provide additional guidance on specific topics. This guidance will be effective for VF in the first quarter of Fiscal 2020 with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on VF's consolidated financial statements.
In February 2018, the FASB issued ASU No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", an update that addresses the effect of the change in the U.S. federal corporate income tax rate due to the enactment of the Tax Act on items within accumulated other comprehensive income (loss). The guidance will be effective for VF in the first quarter of Fiscal 2020 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements.
In June 2018, the FASB issued ASU No. 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance will be effective for VF in the first quarter of Fiscal 2020 with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on VF's consolidated financial statements.
In July 2018, the FASB issued ASU No. 2018-09, "Codification Improvements", an update that provides technical corrections, clarifications and other improvements across a variety of accounting topics. The transition and effective date guidance is based on the facts and circumstances of each update; however, many of them will be effective for VF in the first quarter of Fiscal 2020. The Company does not expect the adoption of this guidance to have a material impact on VF's consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures.
In August 2018, the FASB issued ASU No. 2018-14, "Compensation— Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans", an update that modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. The guidance will be effective for VF in Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures.


VF Corporation Q3 FY19 Form 10-Q 12


In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with
 
the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for VF in the first quarter of Fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF's consolidated financial statements.
NOTE 3 — REVENUES

Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied based on the transfer of control of promised goods or services. The transfer of control typically occurs at a point in time based on consideration of when the customer has i) an obligation to pay for, ii) physical possession of, iii) legal title to, iv) risks and rewards of ownership of and v) accepted the goods or services. The timing of revenue recognition within the wholesale channel occurs either on shipment or delivery of goods based on contractual terms with the customer. The timing of revenue recognition in the direct-to-consumer channel generally occurs at the point of sale within VF-operated or concession retail stores and either on shipment or delivery of goods for e-commerce transactions based on contractual terms with the customer. For finished products shipped directly to customers from our suppliers, the Company's promise to the customer is a performance obligation to provide the specified goods, and thus the Company is the principal in the arrangement and revenue is recognized on a gross basis at the transaction price. For sourcing arrangements, the Company's promise to the customer is to arrange for certain goods, typically finished products, to be provided and thus the Company is acting as an agent and revenue is recognized on a net basis at the fee amount earned.
The duration of contractual arrangements with our customers in the wholesale and direct-to-consumer channels is typically less than one year. Payment terms with customers are generally between 30 and 60 days. The Company does not adjust the promised amount of consideration for the effects of a significant financing component as it is expected, at contract inception, that the period between the transfer of the promised good or service to the customer and the customer payment for the good or service will be one year or less.
The amount of revenue recognized in both wholesale and direct-to-consumer channels reflects the expected consideration to be received for providing the goods or services to the customer, which includes estimates for variable consideration. Variable consideration includes allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. The Company utilizes the expected value method in determining its estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends, and current economic conditions.
Certain products sold by the Company include an assurance warranty. Product warranty costs are estimated based on historical and anticipated trends, and are recorded as cost of goods sold at the time revenue is recognized.
Revenue from the sale of gift cards is deferred and recorded as a contract liability until the gift card is redeemed by the customer, factoring in breakage as appropriate.
 
Various VF brands maintain customer loyalty programs where customers earn rewards from qualifying purchases or activities, which are redeemable for discounts on future purchases or other rewards. For its customer loyalty programs, the Company estimates the stand-alone selling price of the loyalty rewards and allocates a portion of the consideration for the sale of products to the loyalty points earned. The deferred amount is recorded as a contract liability, and is recognized as revenue when the points are redeemed or when the likelihood of redemption is remote.
The Company has elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as selling, general and administrative expenses at the time the related revenue is recognized. Shipping and handling costs billed to customers are included in net revenues. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from the transaction price.
The Company has licensing agreements for its symbolic intellectual property, most of which include minimum guaranteed royalties. Royalty income is recognized as earned over the respective license term based on the greater of minimum guarantees or the licensees' sales of licensed products at rates specified in the licensing contracts. Royalty income related to the minimum guarantees is recognized using a measure of progress with variable amounts recognized only when the cumulative earned royalty exceeds the minimum guarantees. As of December 2018, the Company expects to recognize $97.8 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts to be recognized over time through December 2024. The variable consideration is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption.
The Company has applied the practical expedient to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less.
Performance Obligations
Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. VF is electing the practical expedients to not disclose the transaction price allocated to remaining performance obligations for i) variable consideration related to sales-based royalty arrangements and ii) contracts with an original expected duration of one year or less.
As of December 2018, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and fixed consideration related to future minimum guarantees discussed above.


13 VF Corporation Q3 FY19 Form 10-Q

For the three and nine months ended December 2018, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.
Contract Balances

Accounts receivable represent the Company's unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less an estimated allowance for doubtful accounts.
Contract assets are rights to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. Once the Company has an unconditional right to consideration
 
under a contract, amounts are invoiced and contract assets are reclassified to accounts receivable. The Company's primary contract assets relate to sales-based royalty arrangements, which are discussed in more detail above.
Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's primary contract liabilities relate to gift cards, loyalty programs and sales-based royalty arrangements, which are discussed in more detail above.
The following table provides information about accounts receivable, contract assets and contract liabilities:
(In thousands)
 
December 2018
 
 
At Adoption - April 1, 2018 (a)
Accounts receivable, net
 
$
1,774,460

 
 
$
1,408,587

Contract assets (b)
 
3,368

 
 
2,600

Contract liabilities (c)
 
40,615

 
 
28,252

(a) 
The Company adopted ASC 606 on April 1, 2018. Refer to Note 2 for additional information.
(b) 
Included in the other current assets line item in the Consolidated Balance Sheets.
(c) 
Included in the accrued liabilities and other liabilities line items in the Consolidated Balance Sheets.
For the three and nine months ended December 2018, the Company recognized $19.7 million and $44.1 million, respectively, of revenue that was previously included in the contract liability balance. The change in the contract asset and contract liability balances primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment.
Disaggregation of Revenue
The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors. The wholesale channel includes fees generated from sourcing activities as the customers and point-in-time revenue recognition are similar to other wholesale arrangements.

Three Months Ended December 2018
 
(In thousands)
Outdoor
 
Active
 
Work
 
Jeans
 
Other
 
Total
 
Channel revenues

 

 

 

 

 

 
Wholesale
$
839,579

 
$
490,985

 
$
434,409

 
$
557,642

 
$
3,559

 
$
2,326,174

 
Direct-to-consumer
769,775

 
642,571

 
50,788

 
91,514

 
29,975

 
1,584,623

 
Royalty
3,251

 
9,024

 
8,390

 
8,697

 
—

 
29,362

 
Total
$
1,612,605

 
$
1,142,580

 
$
493,587

 
$
657,853

 
$
33,534

 
$
3,940,159

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic revenues

 

 

 

 

 

 
United States
$
889,298

 
$
638,179

 
$
400,739

 
$
494,575

 
$
33,534

 
$
2,456,325

 
International
723,307

 
504,401

 
92,848

 
163,278

 
—

 
1,483,834

 
Total
$
1,612,605

 
$
1,142,580

 
$
493,587

 
$
657,853

 
$
33,534

 
$
3,940,159

 


VF Corporation Q3 FY19 Form 10-Q 14


 
Three Months Ended December 2017
 
(In thousands)
Outdoor
 
Active
 
Work
 
Jeans
 
Other
 
Total
 
Channel revenues

 

 

 

 

 

 
Wholesale
$
735,349

 
$
441,521

 
$
421,709

 
$
591,729

 
$
—

 
$
2,190,308

 
Direct-to-consumer
718,199

 
535,704

 
54,347

 
92,933

 
33,313

 
1,434,496

 
Royalty
3,106

 
6,758

 
6,771

 
7,844

 
—

 
24,479

 
Total
$
1,456,654

 
$
983,983

 
$
482,827

 
$
692,506

 
$
33,313

 
$
3,649,283

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic revenues

 

 

 

 

 

 
United States
$
789,583

 
$
522,250

 
$
385,002

 
$
510,029

 
$
33,313

 
$
2,240,177

 
International
667,071

 
461,733

 
97,825

 
182,477

 
—

 
1,409,106

 
Total
$
1,456,654

 
$
983,983

 
$
482,827

 
$
692,506

 
$
33,313

 
$
3,649,283

 
 
Nine Months Ended December 2018
 
(In thousands)
Outdoor
 
Active
 
Work
 
Jeans
 
Other
 
Total
 
Channel revenues
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale
$
2,280,071

 
$
1,829,861

 
$
1,267,633

 
$
1,643,404

 
$
21,074

 
$
7,042,043

 
Direct-to-consumer
1,358,287

 
1,728,779

 
123,051

 
226,294

 
83,899

 
3,520,310

 
Royalty
9,350

 
20,838

 
18,332

 
24,818

 
—

 
73,338

 
Total
$
3,647,708

 
$
3,579,478

 
$
1,409,016

 
$
1,894,516

 
$
104,973

 
$
10,635,691

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic revenues

 

 

 

 

 

 
United States
$
1,826,230

 
$
1,934,778

 
$
1,127,168

 
$
1,364,659

 
$
104,973

 
$
6,357,808

 
International
1,821,478

 
1,644,700

 
281,848

 
529,857

 
—

 
4,277,883

 
Total
$
3,647,708

 
$
3,579,478

 
$
1,409,016

 
$
1,894,516

 
$
104,973

 
$
10,635,691

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended December 2017
 
(In thousands)
Outdoor
 
Active
 
Work
 
Jeans
 
Other
 
Total
 
Channel revenues
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale
$
2,091,005

 
$
1,575,246

 
$