Item 2.06 Material Impairments.
V.F. Corporation ("VF" or the "Company") has continued to monitor macroeconomic
events after its most recent annual goodwill and indefinite-lived intangible
asset impairment testing, which was completed during the fourth quarter of the
fiscal year ended April 2, 2022. During the second quarter of the fiscal year
ending April 1, 2023, due to continued increases in the federal funds rate and
strengthening of the U.S. dollar relative to other currencies, the Company
determined that a triggering event had occurred requiring impairment testing of
the Supreme® reporting unit goodwill and indefinite-lived trademark intangible
asset. The initial results of this impairment testing indicate pre-tax, non-cash
impairment charges related to the Supreme® reporting unit goodwill and
indefinite-lived trademark intangible asset that are estimated to be in the
range of $300 million to $450 million. The Company does not anticipate that
these charges will result in future cash expenditures. The impairment is related
to an increase in the market-based discount rates used in the valuations and the
negative impact of foreign currency exchange rate changes on financial
projections. The impairment testing is expected to be finalized and reflected in
VF's financial statements to be included in its Quarterly Report on Form 10-Q
for the fiscal second quarter ending October 1, 2022.
Item 7.01 Regulation FD Disclosure.
On September 28, 2022, in connection with its Investor Day to be held in Denver,
Colorado, VF issued a press release introducing its fiscal year 2027 long-term
strategic plan and financial targets and revising its outlook for fiscal year
2023. A copy of the press release is furnished as Exhibit 99.1. A live webcast
of the presentation will be accessible at ir.vfc.com from approximately 10:30
a.m. to 2:30 p.m. ET. Following the event, a replay of the webcast will be
available at the same location.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 V.F. Corporation press release dated September 28, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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