Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jul. 03, 2021
Segment Reporting [Abstract]  
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 primarily includes other revenue sources, including sales and licensing of Rock & Republic® apparel. Other also included sales of third-party branded merchandise at VF Outlet stores through the first quarter of 2021. During 2020, the Company decided to discontinue the sale of third-party branded merchandise in all VF Outlet stores, exit certain VF Outlet stores and convert all remaining locations to Lee Wrangler OutletTM and Lee Wrangler Clearance CenterTM retail stores. Sales of Wrangler® and Lee® branded products in our retail 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 June Six Months Ended June
(In thousands) 2021 2020 2021 2020
Segment revenues:
Wrangler $ 311,301  $ 251,655  $ 710,123  $ 555,041 
Lee 176,014  85,966  426,162  268,722 
Total reportable segment revenues 487,315  337,621  1,136,285  823,763 
Other revenues 3,450  11,633  6,242  29,989 
Total net revenues $ 490,765  $ 349,254  $ 1,142,527  $ 853,752 
Segment profit:
Wrangler $ 52,834  $ 28,938  $ 136,817  $ 62,801 
Lee 18,491  (18,417) 69,614  (17,444)
Total reportable segment profit $ 71,325  $ 10,521  $ 206,431  $ 45,357 
Corporate and other expenses (36,983) (26,348) (78,534) (59,570)
Interest expense (7,641) (13,120) (19,432) (24,059)
Interest income 421  556  679  972 
Profit (loss) related to other revenues 880  (6,477) 59  (8,705)
Income (loss) before income taxes $ 28,002  $ (34,868) $ 109,203  $ (46,005)