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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 2022
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
vfc-20221001_g1.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)
1551 Wewatta Street
Denver, Colorado 80202
(Address of principal executive offices)
(720) 778-4000
(Registrant’s telephone number, including area code)
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
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  ☑    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  ☑    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 ☑ 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  ☑ 
On October 29, 2022, there were 388,566,085 shares of the registrant’s common stock outstanding.



VF CORPORATION
Table of Contents
  PAGE NUMBER
3
3
3
4
5
6
8

PART I — FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED).
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts) September 2022 March 2022 September 2021
ASSETS
Current assets
Cash and equivalents
 $ 552,811  $ 1,275,943  $ 1,360,138 
Accounts receivable, less allowance for doubtful accounts of: September 2022  - $27,515; March 2022 - $27,959; September 2021 - $33,822
 1,834,598  1,467,842  1,787,331 
Inventories
 2,749,894  1,418,673  1,464,714 
Other current assets
 550,940  425,622  357,687 
Total current assets 5,688,243  4,588,080  4,969,870 
Property, plant and equipment, net
 984,115  1,041,777  1,011,415 
Intangible assets, net
 2,776,022  3,000,351  3,018,242 
Goodwill
 2,102,700  2,393,807  2,415,767 
Operating lease right-of-use assets
 1,217,172  1,247,056  1,380,106 
Other assets
 1,015,890  1,071,137  1,093,687 
TOTAL ASSETS $ 13,784,142  $ 13,342,208  $ 13,889,087 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term borrowings
 $ 1,692,745  $ 335,462  $ 10,173 
Current portion of long-term debt
 832,136  501,051  1,001,037 
Accounts payable
 1,022,408  562,992  534,365 
Accrued liabilities
 1,798,702  1,915,892  1,838,790 
Total current liabilities 5,345,991  3,315,397  3,384,365 
Long-term debt
 3,526,101  4,584,261  4,682,751 
Operating lease liabilities
 1,022,451  1,023,759  1,146,944 
Other liabilities
 803,963  888,436  1,076,546 
Total liabilities 10,698,506  9,811,853  10,290,606 
Commitments and contingencies
Stockholders’ equity
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2022, March 2022 or September 2021
 —  —  — 
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2022 - 388,569,062; March 2022 - 388,298,375; September 2021 - 392,758,016
 97,142  97,075  98,190 
Additional paid-in capital
 3,952,786  3,916,384  3,854,687 
Accumulated other comprehensive income (loss)
 (844,165) (926,579) (940,834)
Retained earnings (accumulated deficit)
 (120,127) 443,475  586,438 
Total stockholders’ equity 3,085,636  3,530,355  3,598,481 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,784,142  $ 13,342,208  $ 13,889,087 


See notes to consolidated financial statements.

3 VF Corporation Q2 FY23 Form 10-Q
VF CORPORATION
Consolidated Statements of Operations
(Unaudited)
  Three Months Ended September Six Months Ended September
(In thousands, except per share amounts) 2022 2021 2022 2021
Net revenues
 $ 3,080,600  $ 3,198,235  $ 5,342,195  $ 5,392,792 
Costs and operating expenses
Cost of goods sold
 1,498,177  1,479,446  2,541,159  2,434,997 
Selling, general and administrative expenses
 1,251,320  1,160,303  2,406,571  2,196,425 
Impairment of goodwill and intangible assets
 421,922  —  421,922  — 
Total costs and operating expenses
 3,171,419  2,639,749  5,369,652  4,631,422 
Operating income (loss)
 (90,819) 558,486  (27,457) 761,370 
Interest income
 823  1,518  2,106  3,660 
Interest expense
 (34,726) (35,888) (67,271) (70,805)
Other income (expense), net
 (9,280) 7,549  (103,994) 16,590 
Income (loss) from continuing operations before income taxes
 (134,002) 531,665  (196,616) 710,815 
Income tax expense (benefit)
 (15,570) 67,612  (22,224) 92,790 
Income (loss) from continuing operations
 (118,432) 464,053  (174,392) 618,025 
Income from discontinued operations, net of tax
 —  —  —  170,273 
Net income (loss)
 $ (118,432) $ 464,053  $ (174,392) $ 788,298 
Earnings (loss) per common share - basic
Continuing operations
 $ (0.31) $ 1.18  $ (0.45) $ 1.58 
Discontinued operations
 —  —  —  0.43 
Total earnings (loss) per common share - basic
 $ (0.31) $ 1.18  $ (0.45) $ 2.01 
Earnings (loss) per common share - diluted
Continuing operations
 $ (0.31) $ 1.18  $ (0.45) $ 1.57 
Discontinued operations
 —  —  —  0.43 
Total earnings (loss) per common share - diluted
 $ (0.31) $ 1.18  $ (0.45) $ 2.00 
Weighted average shares outstanding
Basic
 387,688  391,779  387,625  391,565 
Diluted
 387,688  394,017  387,625  394,072 










See notes to consolidated financial statements.
VF Corporation Q2 FY23 Form 10-Q 4
VF CORPORATION
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
  Three Months Ended September Six Months Ended September
(In thousands) 2022 2021 2022 2021
Net income (loss)
 $ (118,432) $ 464,053  $ (174,392) $ 788,298 
Other comprehensive income (loss)
Foreign currency translation and other
Gains (losses) arising during the period
 (21,894) (12,314) (73,418) 20,857 
Income tax effect
 (28,786) (11,686) (58,796) (7,804)
Defined benefit pension plans
Current period actuarial gains (losses)
 5,426  (439) (14,142) (4,452)
Amortization of net deferred actuarial losses
 3,953  2,871  7,674  5,711 
Amortization of deferred prior service credits
 (111) (117) (223) (235)
Reclassification of net actuarial loss from settlement charges
 1,141  76  92,902  1,024 
Income tax effect
 (2,815) (595) (22,466) 64 
Derivative financial instruments
Gains arising during the period
 102,685  34,361  202,115  29,798 
Income tax effect
 (16,356) (5,978) (31,731) (5,786)
Reclassification of net (gains) losses realized
 (14,906) 22,986  (23,148) 33,545 
Income tax effect
 2,374  (4,113) 3,647  (4,556)
Other comprehensive income (loss)
 30,711  25,052  82,414  68,166 
Comprehensive income (loss)
 $ (87,721) $ 489,105  $ (91,978) $ 856,464 













See notes to consolidated financial statements.
5 VF Corporation Q2 FY23 Form 10-Q

VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
  Six Months Ended September
(In thousands) 2022 2021
OPERATING ACTIVITIES
Net income (loss)
 $ (174,392) $ 788,298 
Income from discontinued operations, net of tax
 —  170,273 
Income (loss) from continuing operations, net of tax
 (174,392) 618,025 
Adjustments to reconcile net income (loss) to cash used by operating activities:
Impairment of goodwill and intangible assets
 421,922  — 
Depreciation and amortization
 130,623  134,553 
Reduction in the carrying amount of right-of-use assets
 185,880  208,687 
Stock-based compensation
 37,474  44,283 
Provision for doubtful accounts
 1,004  3,345 
Pension expense in excess of (less than) contributions
 85,779  (12,312)
Other, net
 (7,088) (191,547)
Changes in operating assets and liabilities:
Accounts receivable
 (461,904) (502,675)
Inventories
 (1,434,470) (412,058)
Accounts payable
 494,424  72,757 
Income taxes
 (193,671) 112,331 
Accrued liabilities
 138,510  233,369 
Operating lease right-of-use assets and liabilities
 (190,171) (228,969)
Other assets and liabilities
 52,123  (257,016)
Cash used by operating activities - continuing operations
 (913,957) (177,227)
Cash provided by operating activities - discontinued operations
 —  6,090 
Cash used by operating activities
 (913,957) (171,137)
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
 (89,958) (144,582)
Software purchases
 (47,858) (42,119)
Other, net
 6,112  20,491 
Cash provided (used) by investing activities - continuing operations
 (131,704) 1,052,885 
Cash used by investing activities - discontinued operations
 —  (525)
Cash provided (used) by investing activities
 (131,704) 1,052,360 
FINANCING ACTIVITIES
Contingent consideration payment
 (56,976) — 
Net increase (decrease) in short-term borrowings
 1,357,284  (889)
Payments on long-term debt
 (500,522) (508)
Payment of debt issuance costs
 (807) — 
Cash dividends paid
 (388,284) (384,427)
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings
 (1,931) 25,971 
Cash provided (used) by financing activities
 408,764  (359,853)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash
 (85,888) (10,958)
Net change in cash, cash equivalents and restricted cash
 (722,785) 510,412 
Cash, cash equivalents and restricted cash – beginning of year
 1,277,082  851,205 
Cash, cash equivalents and restricted cash – end of period
 $ 554,297  $ 1,361,617 
Continued on next page.

See notes to consolidated financial statements

VF Corporation Q2 FY23 Form 10-Q 6
VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended September
(In thousands) 2022 2021
Balances per Consolidated Balance Sheets:
Cash and cash equivalents $ 552,811  $ 1,360,138 
Other current assets 1,360  1,421 
Other assets 126  58 
Total cash, cash equivalents and restricted cash $ 554,297  $ 1,361,617 















































See notes to consolidated financial statements.
7 VF Corporation Q2 FY23 Form 10-Q
VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
Three Months Ended September 2022
Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit)
  Common Stock
 (In thousands, except share amounts) Shares Amounts Total
Balance, June 2022 388,490,713  $ 97,123  $ 3,941,440  $ (874,876) $ 188,806  $ 3,352,493 
Net income (loss)
 —  —  —  —  (118,432) (118,432)
Dividends on Common Stock ($0.50 per share)
 —  —  (5,343) —  (188,806) (194,149)
Stock-based compensation, net
 78,349  19  16,689  —  (1,695) 15,013 
Foreign currency translation and other
 —  —  —  (50,680) —  (50,680)
Defined benefit pension plans
 —  —  —  7,594  —  7,594 
Derivative financial instruments
 —  —  —  73,797  —  73,797 
Balance, September 2022 388,569,062  $ 97,142  $ 3,952,786  $ (844,165) $ (120,127) $ 3,085,636 
Three Months Ended September 2021
Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit)
Common Stock
 (In thousands, except share amounts) Shares Amounts Total
Balance, June 2021 392,621,561  $ 98,155  $ 3,824,656  $ (965,886) $ 317,105  $ 3,274,030 
Net income (loss)
 —  —  —  —  464,053  464,053 
Dividends on Common Stock ($0.49 per share)
 —  —  —  —  (192,296) (192,296)
Stock-based compensation, net
 136,455  35  30,031  —  (2,424) 27,642 
Foreign currency translation and other
 —  —  —  (24,000) —  (24,000)
Defined benefit pension plans
 —  —  —  1,796  —  1,796 
Derivative financial instruments
 —  —  —  47,256  —  47,256 
Balance, September 2021 392,758,016  $ 98,190  $ 3,854,687  $ (940,834) $ 586,438  $ 3,598,481 











Continued on next page.
See notes to consolidated financial statements.
VF Corporation Q2 FY23 Form 10-Q 8
Six Months Ended September 2022
Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit)
  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 (loss) —  —  —  —  (174,392) (174,392)
Dividends on Common Stock ($1.00 per share)
 —  —  (5,343) —  (382,941) (388,284)
Stock-based compensation, net 270,687  67  41,745  —  (6,269) 35,543 
Foreign currency translation and other —  —  —  (132,214) —  (132,214)
Defined benefit pension plans —  —  —  63,745  —  63,745 
Derivative financial instruments —  —  —  150,883  —  150,883 
Balance, September 2022 388,569,062  $ 97,142  $ 3,952,786  $ (844,165) $ (120,127) $ 3,085,636 
Six Months Ended September 2021
Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit)
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 (loss) —  —  —  —  788,298  788,298 
Dividends on Common Stock ($0.98 per share)
 —  —  (2,597) —  (381,830) (384,427)
Stock-based compensation, net 816,539  205  79,639  —  (9,564) 70,280 
Foreign currency translation and other —  —  —  13,053  —  13,053 
Defined benefit pension plans —  —  —  2,112  —  2,112 
Derivative financial instruments —  —  —  53,001  —  53,001 
Balance, September 2021 392,758,016  $ 98,190  $ 3,854,687  $ (940,834) $ 586,438  $ 3,598,481 




















See notes to consolidated financial statements.
9 VF Corporation Q2 FY23 Form 10-Q
VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
VF Corporation Q2 FY23 Form 10-Q 10
NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fiscal Year
VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company's current fiscal year runs from April 3, 2022 through April 1, 2023 ("Fiscal 2023"). Accordingly, this Form 10-Q presents our second quarter of Fiscal 2023. For presentation purposes herein, all references to periods ended September 2022 and September 2021 relate to the fiscal periods ended on October 1, 2022 and October 2, 2021, respectively. References to March 2022 relate to information as of April 2, 2022.
Basis of Presentation
On June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also included the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. The results of the Occupational Workwear business and the related cash flows have been reported as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. These changes have been applied to all periods presented.
Unless otherwise noted, discussion within these notes to the interim consolidated financial statements relates to continuing operations. Refer to Note 4 for additional information on discontinued operations.
Certain prior year amounts have been reclassified to conform to the Fiscal 2023 presentation.
The accompanying unaudited interim 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. Similarly, the March 2022 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim 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 six months ended September 2022 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2023. 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 April 2, 2022 (“Fiscal 2022 Form 10-K”).
Use of Estimates
In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. The duration and severity of the challenging macroeconomic environment, the coronavirus ("COVID-19") pandemic and the conflict between Russia and Ukraine, and the related impacts on VF's business are subject to uncertainty; however, the estimates and assumptions made by management are based on available information. Actual results may differ from those estimates.
Significant Accounting Policies
Supply Chain Financing Program
During the first quarter of Fiscal 2023, VF reinstated its voluntary supply chain finance ("SCF") program. The SCF program enables a significant portion of our suppliers of inventory to leverage VF's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier. The SCF program is administered through third-party platforms that allow participating suppliers to track payments from VF and elect which VF receivables, if any, to sell to the financial institutions. The transactions are at the sole discretion of both the suppliers and financial institutions, and VF is not a party to the agreements and has no economic interest in the supplier's decision to sell a receivable. The terms between VF and the supplier, including the amount due and scheduled payment dates, are not impacted by a supplier's participation in the SCF program. Amounts due to suppliers who voluntarily participate in the SCF program are included in the accounts payable line item in VF's Consolidated Balance Sheets and VF payments made under the SCF program are reflected in cash flows from operating activities in VF's Consolidated Statements of Cash Flows. VF has been informed by the participating financial institutions that amounts payable to them for suppliers who voluntarily participated in the SCF program and included in the accounts payable line item in VF's Consolidated Balance Sheet was $201.2 million at September 2022. The amounts settled through the SCF program during the three and six months ended September 2022 were $417.2 million and $432.2 million, respectively.
There have been no other changes to the Company's significant accounting policies described in Note 1 to the consolidated financial statements included in the Fiscal 2022 Form 10-K.
11 VF Corporation Q2 FY23 Form 10-Q
NOTE 2 — RECENTLY ISSUED ACCOUNTING STANDARDS
Recently Issued Accounting Standards
In March 2020 and January 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and ASU No. 2021-01, "Reference Rate Reform (Topic 848): Scope", respectively. This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company does not expect this guidance to have a material impact on VF's consolidated financial statements.
In November 2021, the FASB issued ASU No. 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance", an update that requires
annual disclosures about government assistance, including the types of assistance and the effect on the financial statements. The guidance is effective for VF in Fiscal 2023, but the Company does not expect the adoption of this guidance to have a material impact on VF's annual disclosures.
In September 2022, the FASB issued ASU No. 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires companies with supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of the financial statements to understand the nature of, activity in, and potential magnitude of the program. The guidance will be effective for VF in the first quarter of Fiscal 2024, except for certain quantitative disclosures that will be effective in Fiscal 2025. Early adoption is permitted. The Company is evaluating the impact that adopting this guidance will have on VF's disclosures.
NOTE 3 — REVENUES
Contract Balances
The following table provides information about contract assets and contract liabilities:
(In thousands) September 2022 March 2022 September 2021
Contract assets (a)
 $ 2,772  $ 1,065  $ 1,773 
Contract liabilities (b)
 77,466  71,067  58,841 
(a)Included in the other current assets line item in the Consolidated Balance Sheets.
(b)Included in the accrued liabilities and other liabilities line items in the Consolidated Balance Sheets.

For the three and six months ended September 2022, the Company recognized $96.2 million and $160.6 million, respectively, of revenue that was included in the contract liability balance during the period, including amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. 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.
Performance Obligations
As of September 2022, the Company expects to recognize $75.4 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 based on the
contractual terms through March 2031. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less.
As of September 2022, 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 the fixed consideration related to future minimum guarantees discussed above.
For the three and six months ended September 2022, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.
VF Corporation Q2 FY23 Form 10-Q 12
Disaggregation of Revenues
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.
Three Months Ended September 2022
(In thousands) Outdoor Active Work Other Total
Channel revenues
Wholesale $ 1,157,170  $ 541,031  $ 216,825  $ —  $ 1,915,026 
Direct-to-consumer 394,324  710,547  41,252  —  1,146,123 
Royalty 3,834  8,532  7,085  —  19,451 
Total $ 1,555,328  $ 1,260,110  $ 265,162  $ —  $ 3,080,600 
Geographic revenues
Americas $ 820,756  $ 724,882  $ 208,497  $ —  $ 1,754,135 
Europe 528,568  378,651  25,210  —  932,429 
Asia-Pacific 206,004  156,577  31,455  —  394,036 
Total $ 1,555,328  $ 1,260,110  $ 265,162  $ —  $ 3,080,600 
Three Months Ended September 2021
(In thousands) Outdoor Active Work Other Total
Channel revenues
Wholesale $ 1,132,068  $ 605,523  $ 252,016  $ 278  $ 1,989,885 
Direct-to-consumer 371,109  780,826  40,140  —  1,192,075 
Royalty 3,444  5,824  7,007  —  16,275 
Total $ 1,506,621  $ 1,392,173  $ 299,163  $ 278  $ 3,198,235 
Geographic revenues
Americas $ 787,797  $ 793,325  $ 225,682  $ 278  $ 1,807,082 
Europe 536,522  410,670  25,420  —  972,612 
Asia-Pacific 182,302  188,178  48,061  —  418,541 
Total $ 1,506,621  $ 1,392,173  $ 299,163  $ 278  $ 3,198,235 
Six Months Ended September 2022
(In thousands) Outdoor Active Work Other Total
Channel revenues
Wholesale $ 1,629,452  $ 1,123,191  $ 410,016  $ 148  $ 3,162,807 
Direct-to-consumer 687,009  1,376,703  81,501  —  2,145,213 
Royalty 7,491  14,161  12,523  —  34,175 
Total $ 2,323,952  $ 2,514,055  $ 504,040  $ 148  $ 5,342,195 
Geographic revenues
Americas $ 1,215,271  $ 1,515,611  $ 408,157  $ 148  $ 3,139,187 
Europe 803,613  681,926  41,503  —  1,527,042 
Asia-Pacific 305,068  316,518  54,380  —  675,966 
Total $ 2,323,952  $ 2,514,055  $ 504,040  $ 148  $ 5,342,195 
13 VF Corporation Q2 FY23 Form 10-Q
Six Months Ended September 2021
(In thousands) Outdoor Active Work Other Total
Channel revenues
Wholesale $ 1,466,943  $ 1,151,548  $ 478,887  $ 278  $ 3,097,656 
Direct-to-consumer 650,767  1,532,061  82,952  —  2,265,780 
Royalty 6,665  10,632  12,059  —  29,356 
Total $ 2,124,375  $ 2,694,241  $ 573,898  $ 278  $ 5,392,792 
Geographic revenues
Americas $ 1,098,936  $ 1,549,704  $ 460,082  $ 278  $ 3,109,000 
Europe 755,077  717,886  39,616  —  1,512,579 
Asia-Pacific 270,362  426,651  74,200  —  771,213 
Total $ 2,124,375  $ 2,694,241  $ 573,898  $ 278  $ 5,392,792 
NOTE 4 — DISCONTINUED OPERATIONS
The Company continuously assesses the composition of its portfolio to ensure it is aligned with its strategic objectives and positioned to maximize growth and return to shareholders.
Occupational Workwear Business
On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also included the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. As of March 28, 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Occupational Workwear business 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.
On June 28, 2021, VF completed the sale of the Occupational Workwear business. The Company has received proceeds of
$616.9 million, net of cash sold, resulting in an estimated after-tax gain on sale of $146.0 million, of which $145.6 million was included in the income from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the six months ended September 2021, and is subject to adjustment for certain income tax matters.
The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income from discontinued operations, net of tax line item in the Consolidated Statement of Operations were income of $170.3 million (including an estimated after-tax gain on sale of $145.6 million) for the six months ended September 2021.
Under the terms of a transition services agreement, the Company will provide certain support services for periods generally between 12 and 24 months from the closing date of the transaction.
VF Corporation Q2 FY23 Form 10-Q 14
Summarized Discontinued Operations Financial Information
The following table summarizes the major line items for the Occupational Workwear business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations:
  Six Months Ended September
(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 
(a)Income tax benefit for the six months ended September 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business.
(b)There was no activity during the three months ended September 2022 and 2021.
NOTE 5 — INVENTORIES
(In thousands) September 2022 March 2022 September 2021
Finished products $ 2,689,412  $ 1,353,483  $ 1,397,988 
Work-in-process 46,584  50,774  50,473 
Raw materials 13,898  14,416  16,253 
Total inventories $ 2,749,894  $ 1,418,673  $ 1,464,714 
During the first quarter of Fiscal 2023, the Company modified terms with the majority of its suppliers to take ownership of inventory near point of shipment rather than destination. Finished products included $618.7 million, $67.7 million and $112.0 million of in-transit inventory as of September 2022, March 2022 and September 2021, respectively.
NOTE 6 — INTANGIBLE ASSETS
      September 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 $ 252,896  $ 160,026  $ 92,870  $ 103,703 
Indefinite-lived intangible assets:
Trademarks and trade names 2,683,152  2,896,648 
Intangible assets, net $ 2,776,022  $ 3,000,351 
In the three months ended September 2022, VF performed an interim impairment analysis of the Supreme® indefinite-lived trademark intangible asset and recorded an impairment charge of $192.9 million to reduce the carrying value to fair value. Refer to Note 16 for additional information on fair value measurements.
Amortization expense for the three and six months ended September 2022 was $3.5 million and $7.1 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2023 is $14.1 million, $13.6 million, $13.1 million, $12.1 million and $11.6 million, respectively.
15 VF Corporation Q2 FY23 Form 10-Q
NOTE 7 — GOODWILL
Changes in goodwill are summarized by reportable segment as follows:
(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 (17,261) (43,060) (1,742) (62,063)
Balance, September 2022 $ 643,525  $ 1,347,017  $ 112,158  $ 2,102,700 
During the three months ended September 2022, VF performed an interim impairment analysis of the Supreme reporting unit and recorded an impairment charge of $229.0 million. The Supreme reporting unit is part of the Active segment. Refer to Note 16 for additional information on fair value measurements.
Accumulated impairment charges for the Outdoor and Active segments were $323.3 million and $229.0 million as of September 2022, respectively, and $323.3 million for the Outdoor segment as of March 2022.
NOTE 8 — LEASES
The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. The substantial majority of these leases are operating leases. Total lease cost includes operating lease cost, variable lease cost, finance lease cost, short-term lease cost and impairment. Components of lease cost were as follows:
Three Months Ended September Six Months Ended September
(In thousands) 2022 2021 2022 2021
Operating lease cost $ 101,427  $ 110,160  $ 203,132  $ 223,660 
Other lease cost 34,011  22,491  67,176  50,430 
Total lease cost $ 135,438  $ 132,651  $ 270,308  $ 274,090 

During the six months ended September 2022 and 2021, the Company paid $204.5 million and $241.8 million of cash for operating leases, respectively. During the six months ended September 2022 and 2021, the Company obtained $215.1 million and $123.1 million of right-of-use assets in exchange for lease liabilities, respectively.
NOTE 9 — LONG-TERM DEBT
Term Debt Facility
On August 11, 2022, the Company entered into a delayed draw Term Loan Agreement (the “DDTL Agreement”). Under the DDTL Agreement, the lenders have agreed to provide up to three separate delayed draw term loans (each, a “Delayed Draw”) to the Company in an aggregate principal amount of up to $1.0 billion (which may be increased to $1.1 billion subject to the terms and conditions of the DDTL Agreement). The DDTL Agreement has a stated termination date of the earlier of December 30, 2024 or the two-year anniversary of the latest Delayed Draw under the DDTL Agreement.
Subject to the terms and conditions of the DDTL Agreement, the Company may request extensions of the stated termination date. Any commitments of the lenders to provide Delayed Draws (“DDTL Commitments”) that remain undrawn will automatically
terminate on December 30, 2022. Interest on the borrowings under the DDTL Agreement will generally be at Term Secured Overnight Financing Rate ("SOFR"), plus a 10 basis point credit spread adjustment, plus a margin. The margin ranges from 0.70% to 0.875% per annum based on the Company’s credit ratings. A ticking fee of 0.07% per annum on the undrawn DDTL Commitments accrues during the period from November 10, 2022 to December 29, 2022. The Company is permitted at any time to terminate unused DDTL Commitments and to prepay outstanding Delayed Draws without premium or penalty.
VF completed its first draw under the DDTL Agreement of $800.0 million on October 18, 2022, which will mature no later than December 30, 2024. In connection with the draw, VF elected a base rate of one-month term SOFR.
VF Corporation Q2 FY23 Form 10-Q 16
NOTE 10 — PENSION PLANS
The components of pension cost (income) for VF’s defined benefit plans were as follows:
  Three Months Ended September Six Months Ended September
(In thousands) 2022 2021 2022 2021
Service cost – benefits earned during the period $ 2,626  $ 3,577  $ 5,272  $ 7,190 
Interest cost on projected benefit obligations 10,680  9,367  23,311  18,842 
Expected return on plan assets (14,752) (19,368) (33,612) (38,753)
Settlement charges 1,141  76  92,902  1,024 
Amortization of deferred amounts:
Net deferred actuarial losses 3,953  2,871  7,674  5,711 
Deferred prior service credits (111) (117) (223) (235)
Net periodic pension cost (income) $ 3,537  $ (3,594) $ 95,324  $ (6,221)
The amounts reported in these disclosures have not been segregated between continuing and discontinued operations.

VF has reported the service cost component of net periodic pension cost (income) in operating income and the other components, which include interest cost, expected return on plan assets, settlement charges and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations.
VF contributed $9.5 million to its defined benefit plans during the six months ended September 2022, and intends to make approximately $11.4 million of contributions during the remainder of Fiscal 2023.
In the first quarter of Fiscal 2023, VF entered into an agreement with The Prudential Insurance Company of America (“Prudential”) to purchase an irrevocable group annuity contract relating to approximately $330 million of the U.S. qualified defined benefit pension plan obligations. The transaction closed on June 30, 2022 and was funded entirely by existing assets of the plan. Under the group annuity contract, Prudential assumed responsibility for benefit payments and annuity administration for approximately 17,700 retirees and beneficiaries. The transaction will not change the amount or timing of monthly
retirement benefit payments. VF recorded a $91.8 million settlement charge in the other income (expense), net line item in the Consolidated Statement of Operations during the six months ended September 2022 to recognize the related deferred actuarial losses in accumulated other comprehensive income (“OCI”). Actuarial assumptions used in the interim valuation were reviewed and revised as appropriate. The discount rate used to determine the pension obligation as of June 2022 was 4.93%.
Additionally, VF recorded $1.1 million in settlement charges in the other income (expense), net line item in the Consolidated Statements of Operations for the three and six months ended September 2022, as well as $0.1 million and $1.0 million for the three and six months ended September 2021, respectively. The settlement charges related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan. Actuarial assumptions used in the interim valuations were reviewed and revised as appropriate. The discount rate used to determine the supplemental defined benefit pension obligation as of September 2022 was 5.71%.
17 VF Corporation Q2 FY23 Form 10-Q
NOTE 11 — CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
During the six months ended September 2022, the Company did not purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased.
Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of September 2022, March 2022 or September 2021. The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings.
Accumulated Other Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and specified components of OCI, which relate to changes in assets and liabilities that are not included in net income (loss) under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income (loss) is presented in the Consolidated Statements of Comprehensive Income (Loss). The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows:
(In thousands) September 2022 March 2022 September 2021
Foreign currency translation and other $ (883,846) $ (751,632) $ (687,120)
Defined benefit pension plans (166,545) (230,290) (255,635)
Derivative financial instruments 206,226  55,343  1,921 
Accumulated other comprehensive income (loss) $ (844,165) $ (926,579) $ (940,834)
The changes in accumulated OCI, net of related taxes, were as follows:
  Three Months Ended September 2022
(In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total
Balance, June 2022 $ (833,166) $ (174,139) $ 132,429  $ (874,876)
Other comprehensive income (loss) before reclassifications
 (50,680) 4,108  86,329  39,757 
Amounts reclassified from accumulated other comprehensive income (loss)
 —  3,486  (12,532) (9,046)
Net other comprehensive income (loss)
 (50,680) 7,594  73,797  30,711 
Balance, September 2022 $ (883,846) $ (166,545) $ 206,226  $ (844,165)
  Three Months Ended September 2021
(In thousands) Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total
Balance, June 2021 $ (663,120) $ (257,431) $ (45,335) $ (965,886)
Other comprehensive income (loss) before reclassifications
 (24,000) (327) 28,383  4,056 
Amounts reclassified from accumulated other comprehensive income (loss)
 —  2,123  18,873  20,996 
Net other comprehensive income (loss)
 (24,000) 1,796  47,256  25,052 
Balance, September 2021 $ (687,120) $ (255,635) $ 1,921  $ (940,834)
VF Corporation Q2 FY23 Form 10-Q 18
Six Months Ended September 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
 (132,214) (10,376) 170,384  27,794 
Amounts reclassified from accumulated other comprehensive income (loss)
 —  74,121  (19,501) 54,620 
Net other comprehensive income (loss)
 (132,214) 63,745  150,883  82,414 
Balance, September 2022 $ (883,846) $ (166,545) $ 206,226  $ (844,165)
Six Months Ended September 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
 13,053  (2,738) 24,012  34,327 
Amounts reclassified from accumulated other comprehensive income (loss)
 —  4,850  28,989  33,839 
Net other comprehensive income (loss)
 13,053  2,112  53,001  68,166 
Balance, September 2021 $ (687,120) $ (255,635) $ 1,921  $ (940,834)
Reclassifications out of accumulated OCI were as follows:
(In thousands) Three Months Ended September Six Months Ended September
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 $ (3,953) $ (2,871) $ (7,674) $ (5,711)
Deferred prior service credits
 Other income (expense), net 111  117  223  235 
Pension settlement charges
 Other income (expense), net (1,141) (76) (92,902) (1,024)
Total before tax
 (4,983) (2,830) (100,353) (6,500)
Tax benefit
 1,497  707  26,232  1,650 
Net of tax
 (3,486) (2,123) (74,121) (4,850)
Gains (losses) on derivative financial instruments:
Foreign exchange contracts
 Net revenues (10,734) (4,963) (15,484) (6,761)
Foreign exchange contracts
 Cost of goods sold 11,837  (16,501) 17,761  (22,670)
Foreign exchange contracts
 Selling, general and administrative expenses 1,955  (189) 3,564  (1,106)
Foreign exchange contracts
 Other income (expense), net 11,821  (1,360) 17,253  (3,062)
Interest rate contracts
 Interest expense 27  27  54  54 
Total before tax
 14,906  (22,986) 23,148  (33,545)
Tax (expense) benefit
 (2,374) 4,113  (3,647) 4,556 
Net of tax
 12,532  (18,873) 19,501  (28,989)
Total reclassifications for the period, net of tax $ 9,046  $ (20,996) $ (54,620) $ (33,839)
19 VF Corporation Q2 FY23 Form 10-Q
NOTE 12 — STOCK-BASED COMPENSATION
Incentive Equity Awards Granted
During the six months ended September 2022, VF granted stock options to employees and nonemployee members of VF's Board of Directors to purchase 2,447,202 shares of its Common Stock at a weighted average exercise price of $45.32 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest and become exercisable in equal annual installments over three years. Stock options granted to nonemployee members of VF's Board of Directors vest upon grant and become exercisable one year from the date of grant. All options have ten-year terms.
The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows:
  Six Months Ended September 2022
Expected volatility
30% to 42%
Weighted average expected volatility 38%
Expected term (in years)
6.0 to 7.8
Weighted average dividend yield 2.9%
Risk-free interest rate
1.53% to 3.09%
Weighted average fair value at date of grant $13.52

During the six months ended September 2022, VF granted 362,627 performance-based restricted stock units ("RSUs") to employees that enable them to receive shares of VF Common Stock at the end of a three-year performance cycle. The weighted average fair market value of VF Common Stock at the dates the units were granted was $45.30 per share. Each performance-based RSU has a potential final payout ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is based on achievement of three-year financial targets set by the Talent and Compensation Committee of the Board of Directors. Shares will be issued to participants in the year following the conclusion of the three-year performance period. The financial targets include 50% weighting based on VF's revenue growth and 50% weighting based on VF's gross margin performance over the three-year period compared to financial targets. Additionally, the actual number of shares earned may be adjusted upward or downward by 25% of the target award, based on how VF's total shareholder return ("TSR") over the three-year period compares to the TSR for companies included in the Standard & Poor's 500 Consumer Discretionary Index. The grant date fair value of the TSR-based adjustment related to the performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $3.46 per share.
During the six months ended September 2022, VF granted 21,471 nonperformance-based RSUs to nonemployee members of the Board of Directors. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The weighted average fair market value of VF Common Stock at the dates the units were granted was $45.29 per share.
In addition, VF granted 639,575 nonperformance-based RSUs to employees during the six months ended September 2022. These units generally vest over periods of up to four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the dates the units were granted was $45.29 per share.
VF also granted 55,879 restricted shares of VF Common Stock to a member of management during the six months ended September 2022. These shares vest ratably over a four-year period from the date of grant. The fair market value of VF Common Stock at the date the shares were granted was $44.74 per share.
VF Corporation Q2 FY23 Form 10-Q 20
NOTE 13 — INCOME TAXES

The effective income tax rate for the six months ended September 2022 was 11.3% compared to 13.1% in the 2021 period. The six months ended September 2022 included a net discrete tax expense of $5.1 million, which primarily related to unrecognized tax benefits and interest. Excluding the $5.1 million net discrete tax expense in the 2022 period, the effective income tax rate would have been 13.9%. The six months ended September 2021 included a net discrete tax benefit of $0.2 million, which included a $3.4 million net tax expense related to unrecognized tax benefits and interest, a $1.4 million tax benefit related to stock compensation, and a $2.4 million net tax benefit related to tax rate change on deferred tax items. The $0.2 million net discrete tax benefit in the 2021 period had an insignificant impact on the effective income tax rate. Without discrete items, the effective income tax rate for the six months ended September 2022 increased by 0.8% compared with the 2021 period primarily due to year-to-date losses generated in the current year.
VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service ("IRS") examinations for tax years through 2015 have been effectively settled.
As previously reported, VF petitioned the U.S. Tax Court (the “Court”) to resolve an IRS dispute regarding the timing of income inclusion associated with VF’s acquisition of The Timberland Company in September 2011. While the IRS argues that all such income should have been immediately included in 2011, VF has reported periodic income inclusions in subsequent tax years. Both parties moved for summary judgment on the issue. On January 31, 2022, the Court issued its opinion in favor of the IRS and on July 14, 2022 issued its final decision. VF believes the opinion of the Court was in error based on the technical merits and filed a notice of appeal on October 7, 2022. VF continues to believe its timing and treatment of the income inclusion is appropriate and VF is vigorously defending its position. No impact of the Court opinion has been recorded in the consolidated financial statements based on our assessment of the position under the more-likely-than-not standard of the accounting literature. Refer to Note 19 for additional details on this matter.
In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future
examinations for the current and prior years and has concluded that VF’s provision for income taxes is adequate. Management believes that some of these audits and negotiations will conclude during the next 12 months. The IRS examinations for tax year 2017 and short-tax year 2018 are anticipated to close during Fiscal 2023, resulting in a favorable adjustment of approximately $95 million to VF’s transition tax liability under the Tax Cuts and Jobs Act.
VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. During 2015, the European Union Commission (“EU”) investigated and announced its decision that these rulings were illegal and ordered the tax benefits to be collected from affected companies, including VF. Requests for annulment were filed by Belgium and VF Europe BVBA individually. During 2017 and 2018, VF Europe BVBA was assessed and paid €35.0 million tax and interest, which was recorded as an income tax receivable based on the expected success of the requests for annulment. During 2019, the General Court annulled the EU decision and the EU subsequently appealed the General Court’s annulment. In September 2021, the General Court's judgment was set aside by the Court of Justice of the EU and the case was sent back to the General Court to determine whether the excess profit tax regime amounted to illegal State aid. The case remains open and unresolved. If this matter is adversely resolved, these amounts will not be collected by VF.
During the six months ended September 2022, the amount of net unrecognized tax benefits and associated interest increased by $4.3 million to $282.1 million. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $253.4 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $7.7 million would reduce income tax expense.
On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on the current analysis of the provisions, the Company does not expect this legislation to have a material impact on VF's income tax accounts.
21 VF Corporation Q2 FY23 Form 10-Q
NOTE 14 — REPORTABLE SEGMENT INFORMATION
The chief operating decision maker allocates resources and assesses performance based on a global brand view which represents VF's operating segments. The operating segments have been evaluated and combined into reportable segments because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance.
The Company's reportable segments have been identified as: Outdoor, Active and Work. We have included an Other category in the table below for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other includes results primarily related to sourcing activities related to transition services.
Financial information for VF's reportable segments is as follows:
  Three Months Ended September Six Months Ended September
(In thousands) 2022 2021 2022 2021
Segment revenues:
Outdoor $ 1,555,328  $ 1,506,621  $ 2,323,952  $ 2,124,375 
Active 1,260,110  1,392,173  2,514,055  2,694,241 
Work 265,162  299,163  504,040  573,898 
Other —  278  148  278 
Total segment revenues $ 3,080,600  $ 3,198,235  $ 5,342,195  $ 5,392,792 
Segment profit (loss):
Outdoor $ 260,439  $ 284,076  $ 213,588  $ 212,329 
Active 180,255  284,349  394,286  555,211 
Work 39,500  61,973  74,502  102,977 
Other (157) (370) (382) (652)