Quarterly report pursuant to Section 13 or 15(d)

BUSINESS SEGMENT INFORMATION

v3.21.1
BUSINESS SEGMENT INFORMATION
 3 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
The Company has two reportable segments:
•Wrangler — Wrangler® branded denim, apparel and accessories.
•Lee — Lee® branded denim, apparel and accessories.
The chief operating decision maker allocates resources and assesses performance based on a global brand view which determines the Company's operating segments. Operating segments are the basis for the Company's reportable segments.
In addition, we report an "Other" category in order to reconcile segment revenues and segment profit to the Company's operating results, but the Other category is not considered a reportable segment based on evaluation of aggregation criteria. Other includes sales of third-party branded merchandise at VF Outlet™ stores and sales and licensing of Rock & Republic® branded apparel. During 2020, the Company decided to discontinue the sale of third-party branded merchandise in conjunction with our decision to exit certain VF Outlet™ stores. Sales of Wrangler® and Lee® branded products at VF Outlet™ stores are not included in Other and are reported in the respective segments discussed above.
Accounting policies utilized for internal management reporting at the individual segments are consistent with those in Note 1 to the Company's financial statements included in the Company's 2020 Annual Report on Form 10-K, except as noted below.
The Company has allocated costs for certain centralized functions and programs to the Wrangler and Lee segments based on appropriate metrics such as usage or production of net revenues. These centralized functions and programs include, but are not limited to, information technology, human resources, supply chain, insurance and related benefit costs associated with those functions.
Corporate and other expenses and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit.
The following table presents financial information for the Company's reportable segments and income (loss) before income taxes:
  Three Months Ended March
(In thousands) 2021 2020
Segment revenues:
Wrangler $ 398,822  $ 303,386 
Lee 250,148  182,756 
Total reportable segment revenues 648,970  486,142 
Other revenues 2,792  18,356 
Total net revenues $ 651,762  $ 504,498 
Segment profit:
Wrangler $ 83,983  $ 33,863 
Lee 51,123  973 
Total reportable segment profit $ 135,106  $ 34,836 
Corporate and other expenses (41,551) (33,222)
Interest expense (11,791) (10,939)
Interest income 258  416 
Loss related to other revenues (821) (2,228)
Income (loss) before income taxes $ 81,201  $ (11,137)