# NOTE 10 — OTHER ASSETS

<table><tr><td>(In thousands)</td><td>March 2019</td><td>March 2018</td><td>December 2017</td></tr><tr><td>Computer software, net of accumulated amortization of: March 2019 -
$215,491; March 2018 - $183,200; December 2017 - $171,147</td><td>$       224,601</td><td>$       239,935</td><td>$       232,237</td></tr><tr><td>Investments held for deferred comlpensation Npans (ote 15)</td><td>206,633</td><td>201,870</td><td>203,780</td></tr><tr><td>Deferred income taxes (Note 18)</td><td>109,551</td><td>105,493</td><td>103,601</td></tr><tr><td>Pension assets (Note 15)</td><td>117,405</td><td>76,671</td><td>82,296</td></tr><tr><td>Deposits</td><td>53,602</td><td>45,321</td><td>45,225</td></tr><tr><td>Partnership stores and shop-in-shop costs, net of accumulated
amortization of: March 2019 - $100,125; March 2018 - $123,812;
December 2017 - $118,643</td><td>31,655</td><td>33,161</td><td>34,149</td></tr><tr><td>Derivative financial instruments (Note 23)</td><td>9,189</td><td>4,659</td><td>2,199</td></tr><tr><td>Other investments</td><td>13,071</td><td>12,433</td><td>12,697</td></tr><tr><td>Deferred line of credit issuance costs</td><td>2,121</td><td>961</td><td>1,078</td></tr><tr><td>Other</td><td>79,071</td><td>82,537</td><td>66,413</td></tr><tr><td>Other assets</td><td>$     846,899</td><td>$     803,041</td><td>$     783,675</td></tr></table>

# NOTE 11 — SHORT-TERM BORROWINGS

<table><tr><td>(In thousands)</td><td>March 2019</td><td>March 2018</td><td>December 2017</td></tr><tr><td>Commercial paper borrowings</td><td>$       650,000</td><td>$     1,500,000</td><td>$       705,000</td></tr><tr><td>International borrowing arrangements</td><td>15,055</td><td>25,106</td><td>24,384</td></tr><tr><td>Short-term borrowings</td><td>$     665,055</td><td>$    1,525,106</td><td>$     729,384</td></tr></table>

In December 2018, VF entered into a \$2.25 billion senior unsecured revolving line of credit (the “Global Credit Facility”) that expires December 2023. The Global Credit Facility replaced VF's \$2.25 billion revolving facility which was scheduled to expire in April 2020. VF may request an unlimited number of one year extensions so long as each extension does not cause the remaining life of the Global Credit Facility to exceed five years, subject to stated terms and conditions. The Global Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a \$50.0 million letter of credit sublimit. In addition, the Global Credit Facility supports VF’s U.S. commercial paper program for short-term, seasonal working capital requirements and general corporate purposes, including share repurchases and acquisitions. Borrowings under the Global Credit Facility are priced at a credit spread of 81.0 basis points over the appropriate LIBOR benchmark for each currency. VF is also required to pay a facility fee to the lenders, currently equal to 6.5 basis points of the committed amount of the facility. The credit spread and facility fee are subject to adjustment based on VF’s credit ratings. The prior revolving credit facility was priced at a credit spread of 80.5 basis points over the appropriate LIBOR benchmark for each currency and VF was required to pay a facility fee to the lenders equal to 7.0 basis points of the committed amount of the facility.

The Global Credit Facility contains certain restrictive covenants, which include maintenance of a consolidated indebtedness to consolidated capitalization ratio, as defined therein, equal to or below 60%. If VF fails in the performance of any covenants, the lenders may terminate their obligation to make advances and declare any outstanding obligations to be immediately due and payable. As of March 2019, VF was in compliance with all covenants.

VF’s commercial paper program allows for borrowings of up to \$2.25 billionto the extent it has borrowing capacity under the Global Credit Facility. Outstanding commercial paper borrowings totaled \$650.0 million, \$1.50 billion and \$705.0 million at March 2019, March 2018 and December 2017, respectively. The Global Credit Facility also had \$15.3 million of outstanding standby letters of credit issued on behalf of VF as of March 2019, March 2018 and December 2017, leaving \$1.58 billion, \$734.7 million and \$1.53 billion as of March 2019, March 2018 and December 2017, respectively, available for borrowing against this facility.

VF has \$179.5 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks. Total outstanding balances under these arrangements were \$15.1 million, \$25.1 million and \$24.4 million at March 2019, March 2018 and December 2017, respectively. Borrowings under these arrangements had a weighted average interest rate of 24.6%, 12.0% and 9.9% at March 2019, March 2018 and December 2017, respectively, excluding accepted letters of credit which are non-interest bearing to VF. The interest-bearing borrowings include short-term borrowings in Argentina.

# NOTE 12 — ACCRUED LIABILITIES

<table><tr><td>(In thousands)</td><td>March 2019</td><td>March 2018</td><td>December 2017</td></tr><tr><td>Compensation</td><td>$       341,988</td><td>$       135,247</td><td>$       249,929</td></tr><tr><td>Customer discounts and allowances</td><td>225,484</td><td>28,604</td><td>46,169</td></tr><tr><td>Other taxes</td><td>153,355</td><td>160,173</td><td>155,969</td></tr><tr><td>Income taxes</td><td>68,054</td><td>67,417</td><td>134,837</td></tr><tr><td>Restructuring</td><td>86,602</td><td>42,757</td><td>32,438</td></tr><tr><td>Advertising</td><td>40,938</td><td>40,322</td><td>48,554</td></tr><tr><td>Freihgt, duties and postage</td><td>40,703</td><td>46,281</td><td>43,584</td></tr><tr><td>Deferred compensation (Note 15)</td><td>18,226</td><td>33,590</td><td>38,885</td></tr><tr><td>Interest</td><td>23,250</td><td>25,483</td><td>16,317</td></tr><tr><td>Derivative financial instruments (Note 23)</td><td>18,590</td><td>96,087</td><td>87,205</td></tr><tr><td>Insurance</td><td>15,634</td><td>18,867</td><td>17,814</td></tr><tr><td>Product warranty claims (Note 14)</td><td>12,618</td><td>12,862</td><td>12,833</td></tr><tr><td>Pension liabilities (Note 15)</td><td>10,260</td><td>32,814</td><td>27,277</td></tr><tr><td>Other</td><td>240,851</td><td>197,923</td><td>234,724</td></tr><tr><td>Accrued liabilities</td><td>$    1,296,553</td><td>$     938,427</td><td>$    1,146,535</td></tr></table>

# NOTE 13 — LONG-TERM DEBT

<table><tr><td>(In thousands)</td><td>March 2019</td><td>March 2018</td><td>December 2017</td></tr><tr><td>3.50% notes, due 2021</td><td>$       498,450</td><td>$       497,852</td><td>$       497,705</td></tr><tr><td>0.625% notes, due 2023</td><td>949,049</td><td>1,041,577</td><td>1,015,500</td></tr><tr><td>6.00% notes, due 2033</td><td>292,982</td><td>292,648</td><td>292,568</td></tr><tr><td>6.45% notes, due 2037</td><td>346,534</td><td>346,346</td><td>346,300</td></tr><tr><td>Caillpta eases</td><td>34,132</td><td>40,397</td><td>41,881</td></tr><tr><td>Total long-term debt</td><td>2,121,147</td><td>2,218,820</td><td>2,193,954</td></tr><tr><td>Less current portion</td><td>5,263</td><td>6,265</td><td>6,165</td></tr><tr><td>Long-term debt, due beyond one year</td><td>$    2,115,884</td><td>$    2,212,555</td><td>$    2,187,789</td></tr></table>

Interest payments are due annually on the 2023 notes and semiannually on all other notes.

All notes, along with any amounts outstanding under the Global Credit Facility (Note 11), rank equally as senior unsecured obligations of VF. All notes contain customary covenants and events of default, including limitations on liens and sale-leaseback transactions and a cross-acceleration event of default. The cross-acceleration provision of the 2033 notes is triggered if more than \$50.0 million of other debt is in default and has been accelerated by the lenders. For the other notes, the cross-acceleration trigger is \$100.0 million. If VF fails in the performance of any covenant under the indentures that govern the respective notes, the trustee or lenders may declare the principal due and payable immediately. As of March 2019, VF was in compliance with all covenants. None of the long-term debt agreements contain acceleration of maturity clauses based solely on changes in credit ratings. However, if there were a change in control of VF and, as a result of the change in control, the 2021, 2023 and 2037 notes were rated below investment grade by recognized rating agencies, then VF would be obligated to repurchase those notes at 101% of the aggregate principal amount plus any accrued interest.

VF may redeem its notes, in whole or in part, at a price equal to the greater of (i) 100% of the principal amount, plus accrued interest to the redemption date, or (ii) the sum of the present value of the remaining scheduled payments of principal and interest discounted to the redemption date at an adjusted treasury rate, as defined, plus 20 basis points for the 2021 notes, 15 basis points for the 2023 and 2033 notes, and 25 basis points for the 2037 notes, plus accrued interest to the redemption date. In addition, the 2021 and 2023 notes can be redeemed at 100% of the principal amount plus accrued interest to the redemption date within the three months prior to maturity.

The 2021 notes have a principal balance of \$500.0 million and are recorded net of unamortized original issue discount and debt issuance costs. Interest expense on these notes is recorded at an effective annual interest rate of 4.69%, including amortization of a deferred loss on an interest rate hedging contract (Note 23), original issue discount and debt issuance costs.

The 2023 notes have a principal balance of €850.0 million and are recorded net of unamortized original issue discount and debt issuance costs. Interest expense on these notes is recorded at an