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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 July 2, 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-20220702_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 shareVFCNew York Stock Exchange
0.625% Senior Notes due 2023VFC23New York Stock Exchange
0.250% Senior Notes due 2028VFC28New York Stock Exchange
0.625% Senior Notes due 2032VFC32New 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 filerAccelerated 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 July 30, 2022, there were 388,494,512 shares of the registrant’s common stock outstanding.




VF CORPORATION
Table of Contents
 PAGE NUMBER


PART I — FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED).
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)June 2022March 2022June 2021
ASSETS
Current assets
Cash and equivalents
$528,029 $1,275,943 $1,274,926 
Accounts receivable, less allowance for doubtful accounts of: June 2022  - $29,780; March 2022 - $27,959; June 2021 - $33,666
1,249,713 1,467,842 1,138,811 
Inventories
2,341,395 1,418,673 1,216,818 
Short-term investments
  598,806 
Other current assets
492,569 425,622 334,777 
Total current assets4,611,706 4,588,080 4,564,138 
Property, plant and equipment, net
1,007,853 1,041,777 1,016,465 
Intangible assets, net
2,984,136 3,000,351 3,027,886 
Goodwill
2,359,548 2,393,807 2,427,324 
Operating lease right-of-use assets
1,227,462 1,247,056 1,426,706 
Other assets
1,021,048 1,071,137 1,087,832 
TOTAL ASSETS$13,211,753 $13,342,208 $13,550,351 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term borrowings
$827,380 $335,462 $8,091 
Current portion of long-term debt
1,058 501,051 1,001,030 
Accounts payable
1,022,755 562,992 534,803 
Accrued liabilities
1,612,804 1,915,892 1,527,522 
Total current liabilities3,463,997 3,315,397 3,071,446 
Long-term debt
4,468,399 4,584,261 4,726,234 
Operating lease liabilities
1,006,274 1,023,759 1,192,792 
Other liabilities
920,590 888,436 1,285,849 
Total liabilities9,859,260 9,811,853 10,276,321 
Commitments and contingencies
Stockholders’ equity
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at June 2022, March 2022 or June 2021
   
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at June 2022 - 388,490,713; March 2022 - 388,298,375; June 2021 - 392,621,561
97,123 97,075 98,155 
Additional paid-in capital
3,941,440 3,916,384 3,824,656 
Accumulated other comprehensive income (loss)
(874,876)(926,579)(965,886)
Retained earnings
188,806 443,475 317,105 
Total stockholders’ equity3,352,493 3,530,355 3,274,030 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,211,753 $13,342,208 $13,550,351 


See notes to consolidated financial statements.

3 VF Corporation Q1 FY23 Form 10-Q

VF CORPORATION
Consolidated Statements of Operations
(Unaudited)
 Three Months Ended June
(In thousands, except per share amounts)20222021
Net revenues
$2,261,595 $2,194,557 
Costs and operating expenses
Cost of goods sold
1,042,982 955,551 
Selling, general and administrative expenses
1,155,251 1,036,122 
Total costs and operating expenses
2,198,233 1,991,673 
Operating income
63,362 202,884 
Interest income
1,283 2,142 
Interest expense
(32,545)(34,917)
Other income (expense), net
(94,714)9,041 
Income (loss) from continuing operations before income taxes
(62,614)179,150 
Income tax expense (benefit)
(6,654)25,178 
Income (loss) from continuing operations
(55,960)153,972 
Income from discontinued operations, net of tax
 170,273 
Net income (loss)
$(55,960)$324,245 
Earnings (loss) per common share - basic
Continuing operations
$(0.14)$0.39 
Discontinued operations
 0.44 
Total earnings (loss) per common share - basic
$(0.14)$0.83 
Earnings (loss) per common share - diluted
Continuing operations
$(0.14)$0.39 
Discontinued operations
 0.43 
Total earnings (loss) per common share - diluted
$(0.14)$0.82 
Weighted average shares outstanding
Basic
387,563 391,351 
Diluted
387,563 394,128 










See notes to consolidated financial statements.
VF Corporation Q1 FY23 Form 10-Q 4

VF CORPORATION
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
 Three Months Ended June
(In thousands)20222021
Net income (loss)
$(55,960)$324,245 
Other comprehensive income (loss)
Foreign currency translation and other
Gains (losses) arising during the period
(51,524)33,171 
Income tax effect
(30,010)3,882 
Defined benefit pension plans
Current period actuarial losses
(19,568)(4,013)
Amortization of net deferred actuarial losses
3,721 2,840 
Amortization of deferred prior service credits
(112)(118)
Reclassification of net actuarial loss from settlement charges
91,761 948 
Income tax effect
(19,651)659 
Derivative financial instruments
Gains (losses) arising during the period
99,430 (4,563)
Income tax effect
(15,375)192 
Reclassification of net (gains) losses realized
(8,242)10,559 
Income tax effect
1,273 (443)
Other comprehensive income (loss)
51,703 43,114 
Comprehensive income (loss)
$(4,257)$367,359 













See notes to consolidated financial statements.
5 VF Corporation Q1 FY23 Form 10-Q

VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended June
(In thousands)20222021
OPERATING ACTIVITIES
Net income (loss)
$(55,960)$324,245 
Income from discontinued operations, net of tax
 170,273 
Income (loss) from continuing operations, net of tax
(55,960)153,972 
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation and amortization
66,754 68,050 
Reduction in the carrying amount of right-of-use assets
93,337 104,930 
Stock-based compensation
22,297 21,701 
Provision for doubtful accounts
899 1,850 
Pension expense in excess of (less than) contributions
89,277 (6,759)
Other, net
6,813 (176,493)
Changes in operating assets and liabilities:
Accounts receivable
174,125 167,798 
Inventories
(961,113)(150,966)
Accounts payable
471,065 70,197 
Income taxes
(70,727)134,115 
Accrued liabilities
(94,746)(71,905)
Operating lease right-of-use assets and liabilities
(93,734)(113,465)
Other assets and liabilities
(6,607)(128,107)
Cash provided (used) by operating activities - continuing operations
(358,320)74,918 
Cash provided by operating activities - discontinued operations
 6,090 
Cash provided (used) by operating activities
(358,320)81,008 
INVESTING ACTIVITIES
Proceeds from sale of businesses, net of cash sold
 616,529 
Capital expenditures
(52,657)(93,218)
Software purchases
(26,907)(21,006)
Other, net
10,045 7,048 
Cash provided (used) by investing activities - continuing operations
(69,519)509,353 
Cash used by investing activities - discontinued operations
 (525)
Cash provided (used) by investing activities
(69,519)508,828 
FINANCING ACTIVITIES
Contingent consideration payment
(56,976) 
Net increase (decrease) in short-term borrowings
491,917 (2,973)
Payments on long-term debt
(500,261)(253)
Cash dividends paid
(194,135)(192,131)
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings
(1,766)20,910 
Cash used by financing activities
(261,221)(174,447)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash
(58,988)10,003 
Net change in cash, cash equivalents and restricted cash
(748,048)425,392 
Cash, cash equivalents and restricted cash – beginning of year
1,277,082 851,205 
Cash, cash equivalents and restricted cash – end of period
$529,034 $1,276,597 
Balances per Consolidated Balance Sheets:
Cash and cash equivalents$528,029 $1,274,926 
Other current assets880 1,643 
Other assets125 28 
Total cash, cash equivalents and restricted cash$529,034 $1,276,597 
See notes to consolidated financial statements.
VF Corporation Q1 FY23 Form 10-Q 6

VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
Three Months Ended June 2022
Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings
 Common Stock
 (In thousands, except share amounts)SharesAmountsTotal
Balance, March 2022388,298,375 $97,075 $3,916,384 $(926,579)$443,475 $3,530,355 
Net income (loss)
— — — — (55,960)(55,960)
Dividends on Common Stock ($0.50 per share)
— — — — (194,135)(194,135)
Stock-based compensation, net
192,338 48 25,056 — (4,574)20,530 
Foreign currency translation and other
— — — (81,534)— (81,534)
Defined benefit pension plans
— — — 56,151 — 56,151 
Derivative financial instruments
— — — 77,086 — 77,086 
Balance, June 2022388,490,713 $97,123 $3,941,440 $(874,876)$188,806 $3,352,493 
Three Months Ended June 2021
Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings
Common Stock
 (In thousands, except share amounts)SharesAmountsTotal
Balance, March 2021391,941,477 $97,985 $3,777,645 $(1,009,000)$189,534 $3,056,164 
Net income (loss)
— — — — 324,245 324,245 
Dividends on Common Stock ($0.49 per share)
— — (2,597)— (189,534)(192,131)
Stock-based compensation, net
680,084 170 49,608 — (7,140)42,638 
Foreign currency translation and other
— — — 37,053 — 37,053 
Defined benefit pension plans
— — — 316 — 316 
Derivative financial instruments
— — — 5,745 — 5,745 
Balance, June 2021392,621,561 $98,155 $3,824,656 $(965,886)$317,105 $3,274,030 

















See notes to consolidated financial statements.
7 VF Corporation Q1 FY23 Form 10-Q

VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
VF Corporation Q1 FY23 Form 10-Q 8

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 first quarter of Fiscal 2023. For presentation purposes herein, all references to periods ended June 2022 and June 2021 relate to the fiscal periods ended on July 2, 2022 and July 3, 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 months ended June 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 coronavirus ("COVID-19") pandemic and the conflict between Russia and Ukraine, and the impact on VF's business is subject to uncertainty; however, the estimates and assumptions made by management include those related to COVID-19 and the Russia-Ukraine conflict based on available information. Actual results may differ from those estimates.
Significant Accounting Policies
Supply Chain Financing Program
During the three months ended June 2022, 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 $164.1 million at June 2022. The amount settled through the SCF program was $15.0 million during the three months ended June 2022.
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.
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.
9 VF Corporation Q1 FY23 Form 10-Q

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. The Company is evaluating the impact that adopting this guidance will have on VF's annual disclosures.
NOTE 3 — REVENUES
Contract Balances
The following table provides information about contract assets and contract liabilities:
(In thousands)June 2022March 2022June 2021
Contract assets (a)
$2,022 $1,065 $1,135 
Contract liabilities (b)
81,167 71,067 68,921 
(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 months ended June 2022, the Company recognized $64.4 million 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 June 2022, the Company expects to recognize $75.3 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 June 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 months ended June 2022, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material.
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 June 2022
(In thousands)OutdoorActiveWorkOtherTotal
Channel revenues
Wholesale$472,282 $582,160 $193,191 $148 $1,247,781 
Direct-to-consumer292,685 666,156 40,249  999,090 
Royalty3,657 5,629 5,438  14,724 
Total$768,624 $1,253,945 $238,878 $148 $2,261,595 
Geographic revenues
Americas$394,515 $790,729 $199,660 $148 $1,385,052 
Europe275,045 303,275 16,293  594,613 
Asia-Pacific99,064 159,941 22,925  281,930 
Total$768,624 $1,253,945 $238,878 $148 $2,261,595 
VF Corporation Q1 FY23 Form 10-Q 10

Three Months Ended June 2021
(In thousands)OutdoorActiveWorkOtherTotal
Channel revenues
Wholesale$334,875 $546,025 $226,871 $ $1,107,771 
Direct-to-consumer279,658 751,235 42,812  1,073,705 
Royalty3,221 4,808 5,052  13,081 
Total$617,754 $1,302,068 $274,735 $ $2,194,557 
Geographic revenues
Americas$311,139 $756,379 $234,400 $ $1,301,918 
Europe218,555 307,216 14,196  539,967 
Asia-Pacific88,060 238,473 26,139  352,672 
Total$617,754 $1,302,068 $274,735 $ $2,194,557 
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 three months ended June 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 three months ended June 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.
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:
 Three Months Ended June
(In thousands)20222021
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
$ $170,273 
(a)Income tax benefit for the three months ended June 2021 includes $12.0 million of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business.
11 VF Corporation Q1 FY23 Form 10-Q

NOTE 5 — INVENTORIES
(In thousands)June 2022March 2022June 2021
Finished products$2,277,145 $1,353,483 $1,139,926 
Work-in-process49,002 50,774 53,202 
Raw materials15,248 14,416 23,690 
Total inventories$2,341,395 $1,418,673 $1,216,818 
During the three months ended June 2022, 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 $621.5 million, $67.7 million and $73.4 million of in-transit inventory as of June 2022, March 2022 and June 2021, respectively.
NOTE 6 — INTANGIBLE ASSETS
   June 2022March 2022
(In thousands)Weighted
Average
Amortization
Period
Amortization
Method
CostAccumulated
Amortization
Net
Carrying
Amount
Net
Carrying
Amount
Amortizable intangible assets:
Customer relationships and other19 yearsAccelerated$258,824 $160,669 $98,155 $103,703 
Indefinite-lived intangible assets:
Trademarks and trade names2,885,981 2,896,648 
Intangible assets, net$2,984,136 $3,000,351 
Amortization expense for the three months ended June 2022 was $3.6 million. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2023 is $14.4 million, $13.9 million, $13.4 million, $12.4 million and $11.9 million, respectively.
NOTE 7 — GOODWILL
Changes in goodwill are summarized by reportable segment as follows:
(In thousands)OutdoorActiveWorkTotal
Balance, March 2022$660,786 $1,619,121 $113,900 $2,393,807 
Currency translation(9,397)(23,955)(907)(34,259)
Balance, June 2022$651,389 $1,595,166 $112,993 $2,359,548 
Accumulated impairment charges for the Outdoor segment were $323.2 million as of June 2022 and March 2022. No impairment charges were recorded during the three months ended June 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 June
(In thousands)20222021
Operating lease cost$101,705 $113,500 
Other lease cost33,165 27,939 
Total lease cost$134,870 $141,439 

During the three months ended June 2022 and 2021, the Company paid $102.3 million and $119.4 million of cash for operating leases, respectively. During the three months ended June 2022 and 2021, the Company obtained $105.9 million and $52.3 million of right-of-use assets in exchange for lease liabilities, respectively.
VF Corporation Q1 FY23 Form 10-Q 12

NOTE 9 — PENSION PLANS
The components of pension cost (income) for VF’s defined benefit plans were as follows:
 Three Months Ended June
(In thousands)20222021
Service cost – benefits earned during the period$2,646 $3,613 
Interest cost on projected benefit obligations12,631 9,475 
Expected return on plan assets(18,860)(19,385)
Settlement charges91,761 948 
Amortization of deferred amounts:
Net deferred actuarial losses3,721 2,840 
Deferred prior service credits(112)(118)
Net periodic pension cost (income)$91,787 $(2,627)
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 $2.5 million to its defined benefit plans during the three months ended June 2022, and intends to make approximately $19.1 million of contributions during the remainder of Fiscal 2023.
During the three months ended June 2022, 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 three months ended June 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 a $0.9 million settlement charge in the other income (expense), net line item in the Consolidated Statement of Operations for the three months ended June 2021. The settlement charge related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan.
NOTE 10 — CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
During the three months ended June 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 June 2022, March 2022 or June 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.
13 VF Corporation Q1 FY23 Form 10-Q

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)June 2022March 2022June 2021
Foreign currency translation and other$(833,166)$(751,632)$(663,120)
Defined benefit pension plans