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Document And Entity Information
3 Months Ended
Mar. 31, 2012
Apr. 28, 2012
Document And Entity Information [Abstract]
Document Type 10-Q
Amendment Flag false
Document Period End Date Mar 31, 2012
Entity Registrant Name V F CORP
Entity Central Index Key 0000103379
Current Fiscal Year End Date --12-29
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q1
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 109,565,947
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
ASSETS
Cash and equivalents $ 325,649 $ 341,228 $ 672,963
Accounts receivable, less allowance for doubtful accounts of: March 2012 - $52,916; Dec. 2011 - $54,010; March 2011 - $47,365 1,206,179 1,120,246 892,294
Inventories:
Finished products 1,267,073 1,197,928 938,437
Work in process 89,753 86,902 79,362
Materials and supplies 159,620 168,815 165,515
Inventories 1,516,446 1,453,645 1,183,314
Other current assets 315,059 272,825 201,457
Total current assets 3,363,333 3,187,944 2,950,028
Property, Plant and Equipment 1,854,218 1,830,039 1,700,871
Less accumulated depreciation 1,125,139 1,092,588 1,085,499
Property, Plant and Equipment, Net 729,079 737,451 615,372
Intangible Assets 2,956,312 2,958,463 1,556,791
Goodwill 2,018,839 2,023,460 1,187,107
Other Assets 435,754 405,808 383,840
Total assets 9,503,317 9,313,126 6,693,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings 680,500 281,686 40,052
Current portion of long-term debt 2,789 2,744 2,722
Accounts payable 537,531 637,116 429,541
Accrued liabilities 683,500 744,486 564,531
Total current liabilities 1,904,320 1,666,032 1,036,846
Long-term Debt 1,831,113 1,831,781 935,244
Other Liabilities 1,316,216 1,290,138 594,601
Commitments and Contingencies         
Stockholders' Equity
Common stock, stated value $1; shares authorized, 300,000,000; shares outstanding: March 2012 - 109,296,385; Dec. 2011 - 110,556,981; March 2011 - 109,013,967 109,296 110,557 109,014
Additional paid-in capital 2,384,636 2,316,107 2,159,204
Accumulated other comprehensive income (loss) (376,979) (421,477) (202,203)
Retained earnings 2,335,520 2,520,804 2,059,492
Total equity attributable to VF Corporation 4,452,473 4,525,991 4,125,507
Noncontrolling interests (805) (816) 940
Total stockholders' equity 4,451,668 4,525,175 4,126,447
Total liabilities and stockholders' equity $ 9,503,317 $ 9,313,126 $ 6,693,138
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts $ 52,916 $ 54,010 $ 47,365
Common stock, stated value $ 1 $ 1 $ 1
Common stock, shares authorized 300,000,000 300,000,000 300,000,000
Common stock, shares outstanding 109,296,385 110,556,981 109,013,967
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Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Consolidated Statements Of Income [Abstract]
Net Sales $ 2,527,417 $ 1,937,124
Royalty Income 29,038 21,675
Total Revenues 2,556,455 1,958,799
Costs and Operating Expenses
Cost of goods sold 1,388,866 1,033,856
Marketing, administrative and general expenses 853,487 650,300
Costs and Operating Expenses, Total 2,242,353 1,684,156
Operating Income 314,102 274,643
Other Income (Expense)
Interest income 1,038 966
Interest expense (23,345) (15,940)
Miscellaneous, net 1,746 (1,931)
Other Income (Expense), Total (20,561) (16,905)
Income Before Income Taxes 293,541 257,738
Income Taxes 78,314 56,318
Net Income 215,227 201,420
Net (Income) Loss Attributable to Noncontrolling Interests (11) (717)
Net Income Attributable to VF Corporation $ 215,216 $ 200,703
Earnings Per Common Share Attributable to VF Corporation Common Stockholders
Basic $ 1.95 $ 1.85
Diluted $ 1.91 $ 1.82
Cash Dividends Per Common Share $ 0.72 $ 0.63
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Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Consolidated Statements Of Comprehensive Income [Abstract]
Net Income $ 215,227 $ 201,420
Foreign currency translation
Gains (losses) arising during the period 49,494 96,695
Less income tax effect (11,822) (19,659)
Defined benefit pension plans
Amortization of net deferred actuarial loss 17,618 10,764
Amortization of prior service cost 839 863
Less income tax effect (6,957) (4,181)
Derivative financial instruments
Gains (losses) arising during the period (7,711) (26,170)
Less income tax effect 2,972 10,080
Reclassification to Net Income for (gains) losses realized 560 (2,910)
Less income tax effect (216) 1,124
Marketable securities
Gains (losses) arising during the period (279) (825)
Reclassification to Net Income for (gains) losses recognized 847
Less income tax effect (237)
Other comprehensive income (loss) 44,498 66,391
Foreign currency translation gains (losses) attributable to noncontrolling interests 123
Other comprehensive income (loss) including noncontrolling interests 44,498 66,514
Comprehensive Income 259,725 267,934
Comprehensive (Income) Loss Attributable to Noncontrolling Interests (11) (840)
Comprehensive Income Attributable to VF Corporation $ 259,714 $ 267,094
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Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Operating Activities
Net income $ 215,227 $ 201,420
Adjustments to reconcile net income to cash used by operating activities:
Depreciation 35,064 30,096
Amortization of intangible assets 12,181 9,776
Other amortization 5,658 5,069
Stock-based compensation 22,922 13,702
Pension contributions under expense 17,829 10,817
Other, net 21,356 2,615
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (73,491) (101,628)
Inventories (55,174) (101,511)
Other current assets (6,657) 726
Accounts payable (188,949) (94,167)
Accrued compensation (93,453) (64,313)
Accrued income taxes 7,242 14,651
Accrued liabilities (30,459) 8,922
Other assets and liabilities (1,433) 30,960
Cash used by operating activities (112,137) (32,865)
Investing Activities
Capital expenditures (25,140) (33,607)
Trademarks acquisition (55,500)
Software purchases (13,370) (7,256)
Other, net 6,341 53
Cash used by investing activities (32,169) (96,310)
Financing Activities
Net increase in short-term borrowings 397,595 3,427
Payments on long-term debt (698) (550)
Purchase of Common Stock (210,840) (2,453)
Cash dividends paid (79,924) (68,475)
Proceeds from issuance of Common Stock, net (2,164) 46,036
Tax benefits of stock option exercises 22,055 8,384
Cash provided (used) by financing activities 126,024 (13,631)
Effect of Foreign Currency Rate Changes on Cash and Equivalents 2,703 23,530
Net Change in Cash and Equivalents (15,579) (119,276)
Cash and Equivalents - Beginning of Year 341,228 792,239
Cash and Equivalents - End of Period $ 325,649 $ 672,963
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Consolidated Statements Of Stockholders' Equity (USD $)
In Thousands
Common Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Non-Controlling Interests [Member]
Total
Balance at Jan. 01, 2011 $ 107,938 $ 2,081,367 $ (268,594) $ 1,940,508 $ 100
Net income 888,089 2,304
Dividends on Common Stock (285,722)
Stock compensation plans, net 2,685 284,966 (15,645)
Common Stock held in trust for deferred compensation plans (66) (6,426)
Distributions to noncontrolling interests (338)
Acquisition of remaining noncontrolling interest (50,226) (2,653)
Foreign currency translation (45,432) (229)
Defined benefit pension plans (90,568)
Derivative financial instruments (12,451)
Marketable securities (4,432)
Balance at Dec. 31, 2011 110,557 2,316,107 (421,477) 2,520,804 (816) 4,525,175
Net income 215,216 11 215,227
Dividends on Common Stock (79,924)
Purchase of treasury stock (2,000) (295,074)
Stock compensation plans, net 742 68,529 (25,114)
Common Stock held in trust for deferred compensation plans (3) (388)
Foreign currency translation 37,672
Defined benefit pension plans 11,500
Derivative financial instruments (4,395)
Marketable securities (279)
Balance at Mar. 31, 2012 $ 109,296 $ 2,384,636 $ (376,979) $ 2,335,520 $ (805) $ 4,451,668
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Basis Of Presentation
3 Months Ended
Mar. 31, 2012
Basis Of Presentation [Abstract]
Basis Of Presentation

Note A — Basis of Presentation

VF Corporation (and its subsidiaries, collectively known as "VF") uses a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended March 2012, December 2011 and March 2011 relate to the fiscal periods ended on March 31, 2012, December 31, 2011 and April 2, 2011, respectively.

The accompanying unaudited 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 ("GAAP") in the United States of America for complete financial statements. Similarly, the December 2011 consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three months ended March 2012 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 29, 2012. 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 December 2011 ("2011 Form 10-K").

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Acquisitions And Dispositions
3 Months Ended
Mar. 31, 2012
Acquisitions And Dispositions [Abstract]
Acquisitions And Dispositions

Note B — Acquisitions and Dispositions

On September 13, 2011, VF acquired 100% of the outstanding shares of The Timberland Company ("Timberland") for $2.3 billion in cash. The purchase price was funded by the issuance of $900.0 million of term debt, together with available cash on hand and short term borrowings.

Timberland is a global footwear and apparel company based in New Hampshire whose primary brands are Timberland® and SmartWool®. The results of Timberland have been included in VF's consolidated financial statements since the date of acquisition and are reported as part of the Outdoor & Action Sports Coalition. Timberland contributed $356.0 million of revenues and $10.9 million of pretax earnings in the first quarter of 2012.

This acquisition strengthens VF's position within the outdoor apparel and footwear industry by adding two strong, global and authentic brands with significant momentum and growth opportunities. Factors that contributed to recognition of goodwill for the acquisition included (1) expected growth rates and profitability of Timberland, (2) the opportunity to leverage VF's skills to achieve higher growth in sales, income and cash flows of the business and (3) expected synergies with existing VF business units. Goodwill resulting from this transaction is not tax deductible and has been assigned to the Outdoor & Action Sports Coalition.

The Timberland® and SmartWool® trademarks and trade names, which management believes have indefinite lives, have been valued at $1,274.1 million. Amortizable intangible assets have been assigned values of $174.4 million for customer relationships, $5.8 million for distributor agreements and $4.5 million for license agreements. Customer relationships are being amortized using an accelerated method over 20 years. Distributor agreements and license agreements are being amortized on a straight-line basis over ten and five years, respectively.

The allocation of the purchase price is preliminary and subject to change, primarily for income tax matters. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date. Goodwill decreased by $15.7 million during the first quarter of 2012 related to revisions in the values of acquired income tax balances.

 

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:

 

In thousands       

Cash and equivalents

   $ 92,442   

Inventories

     390,180   

Other current assets

     318,755   

Property, plant and equipment

     89,581   

Intangible assets

     1,458,800   

Other assets

     37,253   
  

 

 

 

Total assets acquired

     2,387,011   

Current liabilities

     363,506   

Other liabilities, primarily deferred income taxes

     580,182   
  

 

 

 

Total liabilities assumed

     943,688   

Net assets acquired

     1,443,323   

Goodwill

     856,184   
  

 

 

 

Purchase price

   $ 2,299,507   
  

 

 

 

Unaudited pro forma results of operations for VF are presented below assuming that the 2011 acquisition of Timberland had occurred at the beginning of 2010.

 

In thousands, except per share amounts

   Three Months
Ended March
2011
 

Total Revenues

   $ 2,307,803   

Net Income attributable to VF Corporation

     210,149   

Earnings per common share

  

Basic

   $ 1.94   

Diluted

     1.91   

Pro forma financial information is not necessarily indicative of VF's operating results if the acquisition had been effected at the date indicated, nor is it necessarily indicative of future operating results. Amounts do not include any marketing leverage, operating efficiencies or cost savings that VF believes are achievable.

Information on Timberland's historical filings with the Securities and Exchange Commission can be located at www.sec.gov.

On March 8, 2012, VF announced an agreement for the sale of John Varvatos Enterprises, Inc. to Lion Capital LLP. This transaction closed on April 30, 2012.

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Sale Of Accounts Receivable
3 Months Ended
Mar. 31, 2012
Sale Of Accounts Receivable [Abstract]
Sale Of Accounts Receivable

Note C — Sale of Accounts Receivable

VF has an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. This agreement allows VF to have up to $237.5 million of accounts receivable held by the financial institution at any point in time. After the sale, VF continues to service and collect these accounts receivable on behalf of the financial institution but does not retain any other interests in the receivables. At the end of March 2012, December 2011 and March 2011, accounts receivable in the Consolidated Balance Sheets had been reduced by $156.6 million, $115.4 million and $140.1 million, respectively, related to balances sold under this program. During the first three months of 2012, VF sold $299.6 million of accounts receivable at their stated amounts, less a funding fee of $0.5 million, which was recorded in Miscellaneous Expense. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.

 

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Intangible Assets
3 Months Ended
Mar. 31, 2012
Intangible Assets [Abstract]
Intangible Assets

Note D — Intangible Assets

 

            March 2012      December 2011  
Dollars in thousands    Weighted
Average
Amortization
Period
     Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

              

Customer relationships

     19 years       $ 618,523       $ 148,118       $ 470,405       $ 477,817   

License agreements

     24 years         183,917         61,594         122,323         124,239   

Trademarks and other

     8 years         19,392         8,097         11,295         11,934   
           

 

 

    

 

 

 

Amortizable intangible assets, net

              604,023         613,990   

Indefinite-lived intangible assets:

              

Trademarks and trade names

              2,352,289         2,344,473   
           

 

 

    

 

 

 

Intangible assets, net

            $ 2,956,312       $ 2,958,463   
           

 

 

    

 

 

 

Intangible assets are amortized using the following methods: customer relationships — accelerated methods; license agreements — accelerated and straight-line methods; trademarks and other — straight-line method.

Amortization of intangible assets for the first quarter of 2012 was $12.2 million and is expected to be $48.7 million for the year ended 2012. Estimated amortization expense for the years ending 2013 through 2016 is $46.3 million, $44.6 million, $42.8 million and $41.1 million, respectively.

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Goodwill
3 Months Ended
Mar. 31, 2012
Goodwill [Abstract]
Goodwill

Note E — Goodwill

 

In thousands    Outdoor &
Action  Sports
    Jeanswear      Imagewear      Sportswear      Contemporary
Brands
     Total  

Balances, December 2011

   $ 1,437,596      $ 228,421       $ 57,768       $       $ 142,361       $ 2,023,460   

Adjustments to purchase price allocation

     (15,700     —           685         —           —           (15,015

Currency translation

     7,434        2,960         —           —           —           10,394   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balances, March 2012

   $ 1,429,330      $ 231,381       $ 58,453       $ 157,314       $ 142,361       $ 2,018,839   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balances at December 2011 are net of cumulative impairment charges recorded as follows: Outdoor & Action Sports — $43.4 million, Sportswear — $58.5 million and Contemporary Brands — $195.2 million.

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Pension Plans
3 Months Ended
Mar. 31, 2012
Pension Plans [Abstract]
Pension Plans

Note F — Pension Plans

VF's pension cost was composed of the following components:

 

     Three Months
Ended March
 
In thousands    2012     2011  

Service cost – benefits earned during the year

   $ 5,811      $ 5,182   

Interest cost on projected benefit obligations

     19,249        19,705   

Expected return on plan assets

     (20,156     (22,416

Amortization of deferred amounts:

    

Net deferred actuarial losses

     17,618        10,764   

Deferred prior service cost

     839        863   
  

 

 

   

 

 

 

Net periodic pension cost

   $ 23,361      $ 14,098   
  

 

 

   

 

 

 

 

During the first three months of 2012, VF contributed $5.5 million to its defined benefit pension plans. VF currently anticipates making $9.1 million of additional contributions during the remainder of 2012.

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Business Segment Information
3 Months Ended
Mar. 31, 2012
Business Segment Information [Abstract]
Business Segment Information

Note G — Business Segment Information

VF's businesses are grouped into product categories, and by brands within those product categories, for internal financial reporting used by management. These groupings of businesses within VF are referred to as "coalitions" and are the basis for VF's reportable business segments. Financial information for VF's reportable segments is as follows:

 

     Three Months
Ended March
 
In thousands    2012     2011  

Coalition revenues:

    

Outdoor & Action Sports

   $ 1,263,967      $ 788,215   

Jeanswear

     741,711        679,243   

Imagewear

     277,521        246,808   

Sportswear

     122,915        111,894   

Contemporary Brands

     126,904        111,916   

Other

     23,437        20,723   
  

 

 

   

 

 

 

Total coalition revenues

   $ 2,556,455      $ 1,958,799   
  

 

 

   

 

 

 

Coalition profit:

    

Outdoor & Action Sports

   $ 201,700      $ 143,905   

Jeanswear

            123,126   

Imagewear

            36,898   

Sportswear

            7,430   

Contemporary Brands

            9,684   

Other

     (1,610     (2,074
  

 

 

   

 

 

 

Total coalition profit

     379,372        318,969   

Corporate and other expenses

     (63,524     (46,257

Interest, net

     (22,307     (14,974
  

 

 

   

 

 

 

Income before income taxes

   $ 293,541      $ 257,738   
  

 

 

   

 

 

 

Timberland has been reported in the Outdoor & Action Sports Coalition since the acquisition date.

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Capital And Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2012
Capital And Accumulated Other Comprehensive Income (Loss) [Abstract]
Capital And Accumulated Other Comprehensive Income (Loss)

Note H — Capital and Accumulated Other Comprehensive Income (Loss)

Common stock outstanding is net of shares held in treasury and, in substance, retired. There were 21,462,952 treasury shares at March 2012, 19,289,690 at December 2011 and 19,243,471 at March 2011. The excess of the cost of treasury shares acquired over the $1 per share stated value of Common Stock is deducted from Retained Earnings. In addition, 239,345 shares of VF Common Stock at March 2012, 238,275 shares at December 2011 and 253,610 shares at March 2011 were held in connection with deferred compensation plans. These shares, having a cost of $11.2 million, $11.0 million and $11.4 million at the respective dates, are treated as treasury shares for financial reporting purposes.

There are 25,000,000 authorized shares of Preferred Stock, $1 par value, of which none are outstanding.

Comprehensive income includes net income and specified components of other comprehensive income ("OCI"). OCI consists of changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders' equity in the balance sheet. VF's comprehensive income is presented in the Consolidated Statements of Comprehensive Income. The deferred components of other comprehensive income (loss) are reported, net of related income taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity, as follows:

 

In thousands    March
2012
    December
2011
    March
2011
 

Foreign currency translation

   $ (13,487   $ (51,159   $ 71,309   

Defined benefit pension plans

     (345,193     (356,693     (258,679

Derivative financial instruments

     (18,562     (14,167     (19,592

Marketable securities

     263        542        4,759   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (376,979   $ (421,477   $ (202,203
  

 

 

   

 

 

   

 

 

 
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Stock-Based Compensation
3 Months Ended
Mar. 31, 2012
Stock-Based Compensation [Abstract]
Stock-Based Compensation

Note I — Stock-based Compensation

During the first three months of 2012, VF granted options to purchase 855,058 shares of Common Stock at an exercise price of $145.58, equal to the market value of VF Common Stock on the option grant date. Employee stock options vest in equal annual installments over three years. Stock options granted to members of the Board of Directors become exercisable one year from the date of grant. The grant date fair value of all options was estimated using a lattice option-pricing valuation model, with the following assumptions: expected volatility ranging from 27% to 31%, with a weighted average of 30%; expected term of 5.6 to 7.5 years; expected dividend yield of 2.5%; and a risk-free interest rate ranging from 0.1% at six months to 2.1% at 10 years. The resulting weighted average fair value of these options at the grant date was $33.43 per option.

Also during the first three months of 2012, VF granted 191,788 performance-based restricted stock units that enable the recipients to receive shares of VF Common Stock at the end of a three year period. The actual number of shares that will be earned can range from 0-200% of the target award, based on achievement of a three year baseline profitability goal and annually established performance goals set by the Compensation Committee of the Board of Directors. The actual number of earned shares may be adjusted upward or downward by 25% of the target award (but not below a zero percentage payout), based on VF's total shareholder return ("TSR") over a three year period compared with the TSR for companies included in the Standard and Poor's 500 index.

VF granted 4,345 nonperformance-based restricted stock units to members of the Board of Directors during the first three months of 2012. These units vest upon grant and will be settled in shares of VF common stock one year from the date of grant. The fair value of VF's Common Stock at the date the units were granted was $145.58 per share.

VF also granted, during the first three months of 2012, 5,500 shares of restricted VF Common Stock with a grant date fair value of $141.77 per share. These shares will vest in 2016, assuming the grantees remain employed through the vesting date.

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Income Taxes
3 Months Ended
Mar. 31, 2012
Income Taxes [Abstract]
Income Taxes

Note J — Income Taxes

The effective income tax rate was 26.7% in the first quarter of 2012, compared with 21.9% in the first quarter of 2011. The first quarter of 2011 included $8.2 million in tax benefits related to settlements of prior years' tax audits and $2.8 million of tax benefits related to the realization of unrecognized tax benefits resulting from the expiration of statutes of limitations. The effective income tax rate for the full year 2011 was 23.6%.

VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous states and foreign jurisdictions. In addition, Timberland filed a consolidated U.S. federal income tax return through the time of acquisition. The United States Internal Revenue Service ("IRS") is currently examining VF's tax years 2007, 2008 and 2009 and Timberland's tax years 2008 and 2009. VF is currently subject to examination by various state tax authorities. While the outcome of any one examination is not expected to have a material impact on VF's consolidated financial statements, management regularly assesses the outcomes of both ongoing and future examinations to ensure VF's provision for income taxes is sufficient. Management believes that some of these audits and negotiations will conclude during the next 12 months.

During the first quarter of 2012, the amount of unrecognized tax benefits and associated interest decreased by $1.6 million to $101.1 million. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits may decrease during the next 12 months by approximately $12.2 million related to the completion of audits and other settlements with tax authorities and the expiration of statutes of limitations. Of the $12.2 million, $12.0 million would reduce income tax expense.

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Earnings Per Share
3 Months Ended
Mar. 31, 2012
Earnings Per Share [Abstract]
Earnings Per Share

Note K — Earnings Per Share

 

     Three Months
Ended  March
 
In thousands, except per share amounts    2012     2011  

Earnings per share – basic:

    

Net income

   $ 215,227      $ 201,420   

Net (income) loss attributable to noncontrolling interests

     (11     (717
  

 

 

   

 

 

 

Net income attributable to VF Corporation

   $ 215,216      $ 200,703   
  

 

 

   

 

 

 

Weighted average Common Stock outstanding

     110,527        108,222   
  

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.95      $ 1.85   
  

 

 

   

 

 

 

Earnings per common share – diluted:

    

Net income attributable to VF Corporation

   $ 215,216      $ 200,703   
  

 

 

   

 

 

 

Weighted average Common Stock outstanding

     110,527        108,222   

Incremental shares from stock options and other dilutive securities

     2,223        1,818   
  

 

 

   

 

 

 

Adjusted weighted average Common Stock outstanding

     112,750        110,040   
  

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.91      $ 1.82   
  

 

 

   

 

 

 

Outstanding options to purchase approximately 0.9 and 1.0 million shares of Common Stock for the quarters ended March 2012 and March 2011, respectively, were excluded from the computations of diluted earnings per share because the effect of their inclusion would have been antidilutive. In addition, approximately 0.4 million and 0.3 million performance-based restricted stock units were excluded from the computation of diluted earnings per share for the quarters ended March 2012 and 2011, respectively, because these units have not been earned yet in accordance with the vesting conditions of the plan.

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Fair Value Measurements
3 Months Ended
Mar. 31, 2012
Fair Value Measurements [Abstract]
Fair Value Measurements

Note L — Fair Value Measurements

Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market in an orderly transaction between market participants. In determining fair value, the accounting standards distinguish between (i) market data obtained or developed from independent sources (i.e., observable data inputs) and (ii) a reporting entity's own data and assumptions that market participants would use in pricing an asset or liability (i.e., unobservable data inputs). Financial assets and financial liabilities measured and reported at fair value are classified in a three level hierarchy that prioritizes the inputs used in the valuation process. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:

 

 

Level 1 — Quoted prices in active markets for identical assets or liabilities.

 

 

Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data.

 

 

Level 3 — Prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity's own data and judgments about assumptions that market participants would use in pricing the asset or liability.

The fair value measurement level for an asset or liability is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.

The following table summarizes the classes of financial assets and financial liabilities measured and recorded at fair value on a recurring basis:

 

            Fair Value Measurement Using:  
In thousands    Total  Fair
Value
     Quoted Prices
In  Active
Markets for
Identical  Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 

March 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 1,310       $ 1,310       $ —         $ —     

Time deposits

     116,472         116,472         —           —     

Derivative instruments

     26,035         —           26,035         —     

Investment securities

     191,900         161,029         30,871         —     

Other marketable securities

     4,635         4,635         —           —     

Financial liabilities:

           

Derivative instruments

     14,933         —           14,933         —     

Deferred compensation

     242,710         —           242,710         —     

December 2011

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 117       $ 117       $ —         $ —     

Time deposits

     89,585         89,585         —           —     

Derivative instruments

     46,328         —           46,328         —     

Investment securities

     175,225         144,391         30,834         —     

Other marketable securities

     4,913         4,913         —           —     

Financial liabilities:

           

Derivative instruments

     23,513         —           23,513         —     

Deferred compensation

     220,056         —           220,056         —     

The financial assets and financial liabilities in the above table have been recorded in the financial statements at fair value. All other financial assets and financial liabilities are recorded in the financial statements at cost, except life insurance contracts which are recorded at cash surrender value. At March 2012 and December 2011, the carrying values of VF's cash held as demand deposits, accounts receivable, life insurance contracts, short-term borrowings, accounts payable and accrued liabilities approximated their fair values. At March 2012 and December 2011, the carrying value of VF's long-term debt, including the current portion, was $1,833.9 million and $1,834.5 million, respectively, compared with fair value of $2,032.4 million and $2,079.5 million at those dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings.

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Derivative Financial Instruments And Hedging Activities
3 Months Ended
Mar. 31, 2012
Derivative Financial Instruments And Hedging Activities [Abstract]
Derivative Financial Instruments And Hedging Activities

Note M — Derivative Financial Instruments and Hedging Activities

Summary of Derivative Instruments: All of VF's outstanding derivative instruments are forward foreign exchange contracts. Most derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, but a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. Additionally, derivative instruments that are cash flow hedges of forecasted third party sales are dedesignated as hedges near the end of their term and do not qualify for hedge accounting after the date of dedesignation. The notional amounts of outstanding derivative contracts at March 2012, December 2011 and March 2011 totaled $1.4 billion, $1.5 billion and $1.4 billion, respectively, consisting of contracts hedging primarily exposures to the euro, British pound, Mexican peso, Polish zloty, Japanese yen and Canadian dollar. Derivative contracts have maturities up to 20 months. The following table presents outstanding derivatives on an individual contract basis:

 

     Fair Value of Derivatives with
Unrealized Gains
     Fair Value of Derivatives with
Unrealized Losses
 
In thousands    March
2012
     December
2011
     March
2011
     March
2012
     December
2011
     March
2011
 

Foreign exchange contracts designated as hedging instruments

   $ 25,568       $ 45,071       $ 17,974       $ 13,598       $ 22,406       $ 55,116   

Foreign exchange contracts dedesignated as hedging instruments

     335         1,245        
797
  
     1,070         930        
353
  

Foreign exchange contracts not designated as hedging instruments

     132         12         —           265         177         —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 26,035       $ 46,328       $ 18,771       $ 14,933       $ 23,513       $ 55,469   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Outstanding derivatives have been included in the Consolidated Balance Sheets and classified as current or noncurrent based on the derivatives' maturity dates, as follows:

 

In thousands    March
2012
    December
2011
    March
2011
 

Other current assets

   $ 23,874      $ 39,076      $ 16,936   

Accrued current liabilities

     (13,315     (19,326     (50,265

Other assets (noncurrent)

     2,161        7,252        1,835   

Other liabilities (noncurrent)

     (1,618     (4,187     (5,204

Fair Value Hedges: VF enters into derivative contracts to hedge intercompany balances between related parties having different functional currencies, and has historically designated these as fair value hedge relationships. Effective January 1, 2012, VF no longer designates these types of derivative contracts as hedge relationships. Accordingly, gains (losses) related to these derivatives are included in the disclosure of "Derivative Contracts Not Designated as Hedges" as of the first quarter of 2012. VF's Consolidated Statements of Income include the following effects related to fair value hedging:

 

In thousands  

Location of

Gain (Loss)

on Derivatives

Recognized

in Income

  Gain (Loss)
on  Recognized
in Income
   

Hedged Items

in Fair Value

Hedge

Relationships

 

Location of

Gain (Loss)

Recognized

on Related

Hedged Items

  Gain (Loss)
on  Related
Hedged Items
Recognized
in  Income
 

Fair Value Hedging Relationships

         

Three months ended March 2012

         

Foreign exchange

  Miscellaneous income (expense)   $ —        Advances – intercompany   Miscellaneous income (expense)   $ —     

Three months ended March 2011

         

Foreign exchange

  Miscellaneous income (expense)   $ (1,230)      Advances – intercompany   Miscellaneous income (expense)   $ 970   

Cash Flow Hedges: VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted inventory purchases and production costs and for its forecasted cash receipts arising from sales of inventory. In addition, VF's domestic companies hedge the receipt of forecasted intercompany royalties from foreign subsidiaries. As discussed below in "Derivative Contracts Dedesignated as Hedges", cash flow hedges of forecasted third party sales of inventory are dedesignated as hedges when the sale is recorded, and hedge accounting is not applied after that date. The effects of cash flow hedging included in VF's Consolidated Statements of Income and Consolidated Statements of Comprehensive Income are summarized as follows:

 

$(26,182) $(26,182) $(26,182) $(26,182) $(26,182)
In thousands                              

Cash Flow Hedging Relationships

   Gain (Loss) on  Derivatives
Recognized in OCI
Three months ended March
   

Location of Gain (Loss)

Reclassification From

   Gain (Loss) Reclassified  from
Accumulated OCI into Income
Three months ended March
 
   2012     2011    

Accumulated OCI into Income

   2012     2011  

Foreign exchange

   $ (7,711   $ (26,182  

Net sales

   $ 704      $ (396
      

Cost of goods sold

     314        5,142   
      

Miscellaneous income (expense)

     (667     (1,945
      

Interest expense

     (911     29   
  

 

 

   

 

 

      

 

 

   

 

 

 

Total

   $ (7,711   $ (26,182   Total    $ (560   $ 2,830   
  

 

 

   

 

 

      

 

 

   

 

 

 

Derivative Contracts Dedesignated as Hedges: As previously noted, cash flow hedges of certain forecasted third party sales are dedesignated as hedges when the sales are recognized. At that time, hedge accounting is no longer applied and the amount of unrealized hedging gain or loss is recognized in net sales. These derivatives remain outstanding and serve as an economic hedge of foreign currency exposures related to the ultimate collection of the trade receivables. During the period that hedge accounting is not applied, changes in the fair value of the derivative contracts are recognized directly in earnings. For the three months ended March 2012 and March 2011, VF recorded net losses of less than $1 million in Miscellaneous Income (Expense) for derivatives dedesignated as hedging instruments, effectively offsetting the net remeasurement gains on the related assets and liabilities.

 

Derivative Contracts Not Designated as Hedges: VF uses derivative contracts to manage foreign currency exchange risk on intercompany loans, accounts receivable and payable, and third-party accounts receivable and payable. These contracts, which are not designated as hedges, are recorded at fair value in the Consolidated Balance Sheets, with changes in the fair values of these instruments recognized directly in earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities. Following is a summary of these hedges included in VF's Consolidated Statements of Income:

 

 

$955 $955 $955

Derivatives Not Designated as Hedges

   Location of Gain
(Loss)  on Derivatives
Recognized in Income
   Gain (Loss)
on  Derivatives
Recognized in Income
 
      2012      2011  

Foreign exchange

   Miscellaneous income (expense)    $ 955       $ —     

Other Derivative Information: There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during the three months ended March 2012 and March 2011.

At March 2012, Accumulated OCI included $9.5 million of net pretax deferred gains for foreign exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts reclassified to earnings will depend on exchange rates in effect when currently outstanding derivative contracts are settled.

VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033, respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in Accumulated OCI. The remaining net pretax deferred loss in Accumulated OCI related to the contracts was $42.3 million at March 2012, which will be reclassified into the Consolidated Statement of Income over the remaining terms of the associated debt instruments.

 

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Recently Issued Accounting Standards
3 Months Ended
Mar. 31, 2012
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards

Note N — Recently Adopted Accounting Standards

In May 2011, the FASB issued an update to their authoritative guidance regarding fair value measurements and related disclosures. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for the use of a nonfinancial asset that is different from the asset's highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. This guidance became effective during the first quarter of 2012 and will be applied on a prospective basis.

In June 2011, the FASB issued an update to their accounting guidance regarding other comprehensive income which requires that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements of income and comprehensive income. This guidance became effective during the first quarter of 2012 but did not have any effect on VF's financial statements since they already include a statement of comprehensive income that complies with this guidance.

In September 2011, the FASB issued an update to their authoritative guidance regarding goodwill impairment testing. The amendment is intended to reduce the complexity of testing by allowing companies to assess qualitative factors to determine the likelihood of goodwill impairment and whether it is necessary to perform the two-step impairment test currently required. This guidance became effective during the first quarter of 2012 and will be considered during the 2012 goodwill impairment testing. It is not expected to have a material effect on the financial statements.

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Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events [Abstract]
Subsequent Events

Note O — Subsequent Events

On April 24, 2012, VF's Board of Directors (i) declared a quarterly cash dividend of $0.72 per share, payable on June 18, 2012 to shareholders of record on June 8, 2012 and (ii) approved the retirement of 19 million shares of treasury stock.

As noted in Note B, VF sold John Varvatos Enterprises, Inc. on April 30, 2012.

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Acquisitions And Dispositions (Tables)
3 Months Ended
Mar. 31, 2012
Acquisitions And Dispositions [Abstract]
Assets Acquired And Liabilities Assumed In Acquisition
In thousands       

Cash and equivalents

   $ 92,442   

Inventories

     390,180   

Other current assets

     318,755   

Property, plant and equipment

     89,581   

Intangible assets

     1,458,800   

Other assets

     37,253   
  

 

 

 

Total assets acquired

     2,387,011   

Current liabilities

     363,506   

Other liabilities, primarily deferred income taxes

     580,182   
  

 

 

 

Total liabilities assumed

     943,688   

Net assets acquired

     1,443,323   

Goodwill

     856,184   
  

 

 

 

Purchase price

   $ 2,299,507   
  

 

 

 
Pro Forma Results Of Operations

In thousands, except per share amounts

   Three Months
Ended March
2011
 

Total Revenues

   $ 2,307,803   

Net Income attributable to VF Corporation

     210,149   

Earnings per common share

  

Basic

   $ 1.94   

Diluted

     1.91   
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Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2012
Intangible Assets [Abstract]
Schedule Of Indefinite-Lived Intangible Assets By Major Class
            March 2012      December 2011  
Dollars in thousands    Weighted
Average
Amortization
Period
     Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

              

Customer relationships

     19 years       $ 618,523       $ 148,118       $ 470,405       $ 477,817   

License agreements

     24 years         183,917         61,594         122,323         124,239   

Trademarks and other

     8 years         19,392         8,097         11,295         11,934   
           

 

 

    

 

 

 

Amortizable intangible assets, net

              604,023         613,990   

Indefinite-lived intangible assets:

              

Trademarks and trade names

              2,352,289         2,344,473   
           

 

 

    

 

 

 

Intangible assets, net

            $ 2,956,312       $ 2,958,463   
           

 

 

    

 

 

 
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Goodwill (Tables)
3 Months Ended
Mar. 31, 2012
Goodwill [Abstract]
Summary Of Goodwill By Business Segment
In thousands    Outdoor &
Action  Sports
    Jeanswear      Imagewear      Sportswear      Contemporary
Brands
     Total  

Balances, December 2011

   $ 1,437,596      $ 228,421       $ 57,768       $       $ 142,361       $ 2,023,460   

Adjustments to purchase price allocation

     (15,700     —           685         —           —           (15,015

Currency translation

     7,434        2,960         —           —           —           10,394   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balances, March 2012

   $ 1,429,330      $ 231,381       $ 58,453       $ 157,314       $ 142,361       $ 2,018,839   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
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Pension Plans (Tables)
3 Months Ended
Mar. 31, 2012
Pension Plans [Abstract]
Components Of Net Periodic Pension Cost
     Three Months
Ended March
 
In thousands    2012     2011  

Service cost – benefits earned during the year

   $ 5,811      $ 5,182   

Interest cost on projected benefit obligations

     19,249        19,705   

Expected return on plan assets

     (20,156     (22,416

Amortization of deferred amounts:

    

Net deferred actuarial losses

     17,618        10,764   

Deferred prior service cost

     839        863   
  

 

 

   

 

 

 

Net periodic pension cost

   $ 23,361      $ 14,098   
  

 

 

   

 

 

 
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Business Segment Information (Tables)
3 Months Ended
Mar. 31, 2012
Business Segment Information [Abstract]
Financial Information For VF's Reportable Segments
     Three Months
Ended March
 
In thousands    2012     2011  

Coalition revenues:

    

Outdoor & Action Sports

   $ 1,263,967      $ 788,215   

Jeanswear

     741,711        679,243   

Imagewear

     277,521        246,808   

Sportswear

     122,915        111,894   

Contemporary Brands

     126,904        111,916   

Other

     23,437        20,723   
  

 

 

   

 

 

 

Total coalition revenues

   $ 2,556,455      $ 1,958,799   
  

 

 

   

 

 

 

Coalition profit:

    

Outdoor & Action Sports

   $ 201,700      $ 143,905   

Jeanswear

            123,126   

Imagewear

            36,898   

Sportswear

            7,430   

Contemporary Brands

            9,684   

Other

     (1,610     (2,074
  

 

 

   

 

 

 

Total coalition profit

     379,372        318,969   

Corporate and other expenses

     (63,524     (46,257

Interest, net

     (22,307     (14,974
  

 

 

   

 

 

 

Income before income taxes

   $ 293,541      $ 257,738   
  

 

 

   

 

 

 
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Capital And Accumulated Other Comprehensive Income (Loss) (Tables)
3 Months Ended
Mar. 31, 2012
Capital And Accumulated Other Comprehensive Income (Loss) [Abstract]
Schedule Of Deferred Gains (Losses) Comprising Accumulated OCI
In thousands    March
2012
    December
2011
    March
2011
 

Foreign currency translation

   $ (13,487   $ (51,159   $ 71,309   

Defined benefit pension plans

     (345,193     (356,693     (258,679

Derivative financial instruments

     (18,562     (14,167     (19,592

Marketable securities

     263        542        4,759   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (376,979   $ (421,477   $ (202,203
  

 

 

   

 

 

   

 

 

 
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Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2012
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share
     Three Months
Ended  March
 
In thousands, except per share amounts    2012     2011  

Earnings per share – basic:

    

Net income

   $ 215,227      $ 201,420   

Net (income) loss attributable to noncontrolling interests

     (11     (717
  

 

 

   

 

 

 

Net income attributable to VF Corporation

   $ 215,216      $ 200,703   
  

 

 

   

 

 

 

Weighted average Common Stock outstanding

     110,527        108,222   
  

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.95      $ 1.85   
  

 

 

   

 

 

 

Earnings per common share – diluted:

    

Net income attributable to VF Corporation

   $ 215,216      $ 200,703   
  

 

 

   

 

 

 

Weighted average Common Stock outstanding

     110,527        108,222   

Incremental shares from stock options and other dilutive securities

     2,223        1,818   
  

 

 

   

 

 

 

Adjusted weighted average Common Stock outstanding

     112,750        110,040   
  

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.91      $ 1.82   
  

 

 

   

 

 

 
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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2012
Fair Value Measurements [Abstract]
Schedule Of Recurring Fair Value Measurements
            Fair Value Measurement Using:  
In thousands    Total  Fair
Value
     Quoted Prices
In  Active
Markets for
Identical  Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 

March 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 1,310       $ 1,310       $ —         $ —     

Time deposits

     116,472         116,472         —           —     

Derivative instruments

     26,035         —           26,035         —     

Investment securities

     191,900         161,029         30,871         —     

Other marketable securities

     4,635         4,635         —           —     

Financial liabilities:

           

Derivative instruments

     14,933         —           14,933         —     

Deferred compensation

     242,710         —           242,710         —     

December 2011

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 117       $ 117       $ —         $ —     

Time deposits

     89,585         89,585         —           —     

Derivative instruments

     46,328         —           46,328         —     

Investment securities

     175,225         144,391         30,834         —     

Other marketable securities

     4,913         4,913         —           —     

Financial liabilities:

           

Derivative instruments

     23,513         —           23,513         —     

Deferred compensation

     220,056         —           220,056         —     
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Derivative Financial Instruments And Hedging Activities (Tables)
3 Months Ended
Mar. 31, 2012
Derivative [Line Items]
Outstanding Derivatives On Individual Contract Basis
     Fair Value of Derivatives with
Unrealized Gains
     Fair Value of Derivatives with
Unrealized Losses
 
In thousands    March
2012
     December
2011
     March
2011
     March
2012
     December
2011
     March
2011
 

Foreign exchange contracts designated as hedging instruments

   $ 25,568       $ 45,071       $ 17,974       $ 13,598       $ 22,406       $ 55,116   

Foreign exchange contracts dedesignated as hedging instruments

     335         1,245        
797
  
     1,070         930        
353
  

Foreign exchange contracts not designated as hedging instruments

     132         12         —           265         177         —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 26,035       $ 46,328       $ 18,771       $ 14,933       $ 23,513       $ 55,469   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Current Or Noncurrent Derivative Assets And Liabilities
In thousands    March
2012
    December
2011
    March
2011
 

Other current assets

   $ 23,874      $ 39,076      $ 16,936   

Accrued current liabilities

     (13,315     (19,326     (50,265

Other assets (noncurrent)

     2,161        7,252        1,835   

Other liabilities (noncurrent)

     (1,618     (4,187     (5,204
Summary Of The Effects Of Fair Value Hedging Relationships Included In VF's Consolidated Statement Of Income
In thousands  

Location of

Gain (Loss)

on Derivatives

Recognized

in Income

  Gain (Loss)
on  Recognized
in Income
   

Hedged Items

in Fair Value

Hedge

Relationships

 

Location of

Gain (Loss)

Recognized

on Related

Hedged Items

  Gain (Loss)
on  Related
Hedged Items
Recognized
in  Income
 

Fair Value Hedging Relationships

         

Three months ended March 2012

         

Foreign exchange

  Miscellaneous income (expense)   $ —        Advances – intercompany   Miscellaneous income (expense)   $ —     

Three months ended March 2011

         

Foreign exchange

  Miscellaneous income (expense)   $ (1,230)      Advances – intercompany   Miscellaneous income (expense)   $ 970   
Effects Of Cash Flow Hedging Included In Consolidated Statements Of Income And Comprehensive Income
$(26,182) $(26,182) $(26,182) $(26,182) $(26,182)
In thousands                              

Cash Flow Hedging Relationships

   Gain (Loss) on  Derivatives
Recognized in OCI
Three months ended March
   

Location of Gain (Loss)

Reclassification From

   Gain (Loss) Reclassified  from
Accumulated OCI into Income
Three months ended March
 
   2012     2011    

Accumulated OCI into Income

   2012     2011  

Foreign exchange

   $ (7,711   $ (26,182  

Net sales

   $ 704      $ (396
      

Cost of goods sold

     314        5,142   
      

Miscellaneous income (expense)

     (667     (1,945
      

Interest expense

     (911     29   
  

 

 

   

 

 

      

 

 

   

 

 

 

Total

   $ (7,711   $ (26,182   Total    $ (560   $ 2,830   
  

 

 

   

 

 

      

 

 

   

 

 

 
Not Designated As Hedging Instrument [Member]
Derivative [Line Items]
Summary Of The Effects Of Fair Value Hedging Relationships Included In VF's Consolidated Statement Of Income
$955 $955 $955

Derivatives Not Designated as Hedges

   Location of Gain
(Loss)  on Derivatives
Recognized in Income
   Gain (Loss)
on  Derivatives
Recognized in Income
 
      2012      2011  

Foreign exchange

   Miscellaneous income (expense)    $ 955       $ —     
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Acquisitions And Dispositions (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Sep. 13, 2011
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease) $ 15,700,000
The Timberland Company [Member]
Business Acquisition [Line Items]
Enterprise value net of cash acquired 2,299,507,000
Purchase price of acquisition funded by issuance of term debt 900,000,000
Percent of outstanding shares acquired 100.00%
Revenue contributed by acquiree 356,000,000
Earnings contributed by acquiree 10,900,000
Trademarks And Tradenames [Member] | The Timberland Company [Member]
Business Acquisition [Line Items]
Value of indefinite lived intangible assets acquired 1,274,100,000
Customer Relationships [Member]
Business Acquisition [Line Items]
Amortizable intangible assets, estimated useful lives (years) 19
Customer Relationships [Member] | The Timberland Company [Member]
Business Acquisition [Line Items]
Value of amortizable intangible assets acquired 174,400,000
Amortization period of intangible assets acquired (years) 20
Distributor Agreements [Member] | The Timberland Company [Member]
Business Acquisition [Line Items]
Value of amortizable intangible assets acquired 5,800,000
Amortization period of intangible assets acquired (years) 10
License Agreements [Member]
Business Acquisition [Line Items]
Amortizable intangible assets, estimated useful lives (years) 24
License Agreements [Member] | The Timberland Company [Member]
Business Acquisition [Line Items]
Value of amortizable intangible assets acquired $ 4,500,000
Amortization period of intangible assets acquired (years) 5
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Acquisitions And Dispositions (Assets Acquired And Liabilities Assumed In Acquisition) (Details) (The Timberland Company [Member], USD $)
In Thousands, unless otherwise specified
Sep. 13, 2011
The Timberland Company [Member]
Business Acquisition [Line Items]
Cash and equivalents $ 92,442
Inventories 390,180
Other current assets 318,755
Property, plant and equipment 89,581
Intangible assets 1,458,800
Other assets 37,253
Total assets acquired 2,387,011
Current liabilities 363,506
Other liabilities, primarily deferred income taxes 580,182
Total liabilities assumed 943,688
Net assets acquired 1,443,323
Goodwill 856,184
Purchase price $ 2,299,507
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Acquisitions And Dispositions (Pro Forma Results Of Operations) (Details) (The Timberland Company [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Apr. 02, 2011
The Timberland Company [Member]
Business Acquisition [Line Items]
Total Revenues $ 2,307,803
Net Income attributable to VF Corporation $ 210,149
Earnings per common share: Basic $ 1.94
Earnings per common share: Diluted $ 1.91
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Sale Of Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Sale Of Accounts Receivable [Abstract]
Maximum amount of accounts receivable sold at any point in time $ 237.5
Decrease in receivables related to balances sold 156.6 115.4 140.1
Sale of accounts receivable 299.6
Funding fee $ 0.5
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Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Intangible Assets [Abstract]
Intangible asset amortization expense $ 12.2
Estimated amortization expense, 2012 48.7
Estimated amortization expense, 2013 46.3
Estimated amortization expense, 2014 44.6
Estimated amortization expense, 2015 42.8
Estimated amortization expense, 2016 $ 41.1
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Intangible Assets (Schedule Of Indefinite-Lived Intangible Assets By Major Class) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Mar. 31, 2012
Customer Relationships [Member]
Y
Dec. 31, 2011
Customer Relationships [Member]
Mar. 31, 2012
License Agreements [Member]
Y
Dec. 31, 2011
License Agreements [Member]
Mar. 31, 2012
Trademarks And Other [Member]
Y
Dec. 31, 2011
Trademarks And Other [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Weighted Average Amortization Period (in years) 19 24 8
Amortizable intangible assets, Cost $ 618,523 $ 183,917 $ 19,392
Amortizable intangible assets, Accumulated Amortization 148,118 61,594 8,097
Amortizable intangible assets, Net Carrying Amount 604,023 613,990 470,405 477,817 122,323 124,239 11,295 11,934
Indefinite-lived intangible assets, Trademarks and trade names 2,352,289 2,344,473
Intangible assets, net $ 2,956,312 $ 2,958,463 $ 1,556,791
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Goodwill (Summary Of Goodwill By Business Segment) (Details) (USD $)
3 Months Ended 3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Mar. 31, 2012
Outdoor And Action Sports [Member]
Mar. 31, 2012
Jeanswear [Member]
Mar. 31, 2012
Imagewear [Member]
Mar. 31, 2012
Sportswear [Member]
Dec. 31, 2011
Sportswear [Member]
Mar. 31, 2012
Contemporary Brands [Member]
Dec. 31, 2011
Contemporary Brands [Member]
Goodwill [Line Items]
Goodwill, beginning balance $ 2,023,460,000 $ 1,187,107,000 $ 1,437,596,000 $ 228,421,000 $ 57,768,000 $ 157,314,000 $ 157,314,000 $ 142,361,000 $ 142,361,000
Adjustments to purchase price allocation (15,015,000) (15,700,000) 685,000
Currency translation 10,394,000 7,434,000 2,960,000
Goodwill, ending balance 2,018,839,000 1,187,107,000 1,429,330,000 231,381,000 58,453,000 157,314,000 157,314,000 142,361,000 142,361,000
Cumulative impairment charges $ 43,400,000 $ 58,500,000 $ 195,200,000
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Pension Plans (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Pension Plans [Abstract]
Service cost - benefits earned during the year $ 5,811,000 $ 5,182,000
Interest cost on projected benefit obligations 19,249,000 19,705,000
Expected return on plan assets (20,156,000) (22,416,000)
Amortization of deferred amounts: Net deferred actuarial losses 17,618,000 10,764,000
Amortization of deferred amounts: Deferred prior service cost 839,000 863,000
Net periodic pension cost 23,361,000 14,098,000
VF contributions 5,500,000
Additional VF contribution in remainder of 2012 $ 9,100,000
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Business Segment Information (Financial Information For VF's Reportable Segments) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Segment Reporting Information [Line Items]
Total coalition revenues $ 2,556,455 $ 1,958,799
Coalition profit 215,227 201,420
Total coalition profit 379,372 318,969
Corporate and other expenses (63,524) (46,257)
Interest, net (22,307) (14,974)
Income Before Income Taxes 293,541 257,738
Outdoor & Action Sports [Member]
Segment Reporting Information [Line Items]
Coalition revenues 1,263,967 788,215
Total coalition profit 201,700 143,905
Jeanswear [Member]
Segment Reporting Information [Line Items]
Coalition revenues 741,711 679,243
Total coalition profit 110,772 123,126
Imagewear [Member]
Segment Reporting Information [Line Items]
Coalition revenues 277,521 246,808
Total coalition profit 42,926 36,898
Sportswear [Member]
Segment Reporting Information [Line Items]
Coalition revenues 122,915 111,894
Total coalition profit 10,726 7,430
Contemporary Brands [Member]
Segment Reporting Information [Line Items]
Coalition revenues 126,904 111,916
Total coalition profit 14,858 9,684
Other [Member]
Segment Reporting Information [Line Items]
Coalition revenues 23,437 20,723
Total coalition profit $ (1,610) $ (2,074)
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Capital And Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Capital And Accumulated Other Comprehensive Income (Loss) [Abstract]
Treasury shares 21,462,952 19,289,690 19,243,471
Common Stock, stated value $ 1 $ 1 $ 1
Number of Common Stock shares held in trust in connection with deferred compensation plans 239,345 238,275 253,610
Common Stock held in trust in connection with deferred compensation plans $ 11.2 $ 11 $ 11.4
Preferred Stock, authorized shares 25,000,000
Preferred Stock, par value $ 1
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Capital And Accumulated Other Comprehensive Income (Loss) (Schedule Of Deferred Gains (Losses) Comprising Accumulated OCI) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Capital And Accumulated Other Comprehensive Income (Loss) [Abstract]
Foreign currency translation $ (13,487) $ (51,159) $ 71,309
Defined benefit pension plans (345,193) (356,693) (258,679)
Derivative financial instruments (18,562) (14,167) (19,592)
Marketable securities 263 542 4,759
Accumulated other comprehensive income (loss) $ (376,979) $ (421,477) $ (202,203)
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Stock-Based Compensation (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Options granted in period 855,058
Exercise price of options granted $ 145.58
Vesting period 3 years
Expected volatility, minimum 27.00%
Expected volatility, maximum 31.00%
Weighted average, expected volatility 30.00%
Expected term (in years), minimum 5.6
Expected term (in years), maximum 7.5
Expected dividend yield 2.50%
Ten years risk-free interest rate 2.10%
Six months risk-free interest rate 0.10%
Weighted average fair value of options granted $ 33.43
Performance based adjustment 25.00%
Performance based period 3 years
Restricted Stock Units [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Fair value of restricted stock units at the grant date $ 145.58
Restricted Stock [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Restricted stock units granted in period 5,500
Fair value of restricted stock units at the grant date $ 141.77
Performance-Based [Member] | Restricted Stock Units [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Vesting period 3 years
Restricted stock units granted in period 191,788
Nonperformance Based [Member] | Restricted Stock Units [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Restricted stock units granted in period 4,345
Minimum [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Performance based adjustment 0.00%
Minimum [Member] | Performance-Based [Member] | Restricted Stock Units [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Range of possible awards 0.00%
Maximum [Member] | Performance-Based [Member] | Restricted Stock Units [Member]
Stock-Based Compensation Arrangement By Stock-Based Payment Award [Line Items]
Range of possible awards 200.00%
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Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Dec. 31, 2011
Income Taxes [Abstract]
Effective income tax rate 26.70% 21.90% 23.60%
Tax settlements of prior years tax audits $ 8.2
Reductions due to statute expirations 2.8
Decrease in unrecognized tax benefits and associated interest primarily due to the audit settlements 1.6
Total unrecognized tax benefits 101.1
Unrecognized tax benefits and interest 12
Possible decrease in unrecognized income tax benefits $ 12.2
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Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Stock Options [Member]
Earnings Per Share [Line Items]
Stock options excluded from computation of earnings per share 0.9 1
Performance-Based [Member] | Restricted Stock Units (RSUs) [Member]
Earnings Per Share [Line Items]
Stock options excluded from computation of earnings per share 0.4 0.3
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Earnings Per Share (Schedule Of Earnings Per Share) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Earnings Per Share [Abstract]
Net income $ 215,227 $ 201,420
Net (income) loss attributable to noncontrolling interests (11) (717)
Net Income Attributable to VF Corporation $ 215,216 $ 200,703
Weighted average Common Stock outstanding 110,527 108,222
Earnings per common share attributable to VF Corporation common stockholders $ 1.95 $ 1.85
Incremental shares from stock options and other dilutive securities 2,223 1,818
Adjusted weighted average Common Stock outstanding 112,750 110,040
Earnings per share attributable to VF Corporation common stockholders $ 1.91 $ 1.82
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Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Fair Value Measurements [Abstract]
Long-term debt, carrying value $ 1,833.9 $ 1,834.5
Long-term debt, fair value $ 2,032.4 $ 2,079.5
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Fair Value Measurements (Schedule Of Recurring Fair Value Measurements) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents, Money market funds $ 1,310 $ 117
Cash equivalents, Time deposits 116,472 89,585
Derivative instruments 26,035 46,328
Investment securities 191,900 175,225
Other marketable securities 4,635 4,913
Derivative instruments 14,933 23,513
Deferred compensation 242,710 220,056
Quoted Prices In Active Markets For Identical Assets, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents, Money market funds 1,310 117
Cash equivalents, Time deposits 116,472 89,585
Investment securities 161,029 144,391
Other marketable securities 4,635 4,913
Significant Other Observable Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative instruments 26,035 46,328
Investment securities 30,871 30,834
Derivative instruments 14,933 23,513
Deferred compensation 242,710 220,056
Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents, Money market funds      
Cash equivalents, Time deposits      
Derivative instruments      
Investment securities      
Other marketable securities      
Derivative instruments      
Deferred compensation      
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Derivative Financial Instruments And Hedging Activities (Narrative) (Details) (USD $)
3 Months Ended 3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Mar. 31, 2012
Interest Rate Swap Derivative Contracts In 2011 [Member]
Mar. 31, 2012
Interest Rate Swap Derivative Contracts In 2003 [Member]
Mar. 31, 2012
Maximum [Member]
Apr. 02, 2011
Maximum [Member]
Derivative [Line Items]
Notional amount of foreign currency derivatives $ 1,400,000,000 $ 1,500,000,000 $ 1,400,000,000
Higher derivative maturity range by months 20
Accumulated OCI including net pretax deferred gains for foreign exchange contracts 9,500,000
Remaining pretax deferred net loss in Accumulated OCI 42,300,000
Miscellaneous Income (Expense) for derivatives designated as hedging instruments $ 1,000,000 $ 1,000,000
Long-term debt, maturity date Dec 31, 2021 Dec 31, 2033
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Derivative Financial Instruments And Hedging Activities (Outstanding Derivatives On Individual Contract Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Derivative Financial Instruments And Hedging Activities [Line Items]
Fair Value of Derivatives with Unrealized Gains $ 26,035 $ 46,328 $ 18,771
Fair Value of Derivatives with Unrealized Losses 14,933 23,513 55,469
Designated As Hedging Instrument [Member]
Derivative Financial Instruments And Hedging Activities [Line Items]
Fair Value of Derivatives with Unrealized Gains 25,568 45,071 17,974
Fair Value of Derivatives with Unrealized Losses 13,598 22,406 55,116
Dedesignated As Hedging Instrument [Member]
Derivative Financial Instruments And Hedging Activities [Line Items]
Fair Value of Derivatives with Unrealized Gains 335 1,245 797
Fair Value of Derivatives with Unrealized Losses 1,070 930 353
Not Designated As Hedging Instrument [Member]
Derivative Financial Instruments And Hedging Activities [Line Items]
Fair Value of Derivatives with Unrealized Gains 132 12
Fair Value of Derivatives with Unrealized Losses $ 265 $ 177
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Derivative Financial Instruments And Hedging Activities (Current Or Noncurrent Derivative Assets And Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Apr. 02, 2011
Derivative Financial Instruments And Hedging Activities [Abstract]
Other current assets $ 23,874 $ 39,076 $ 16,936
Accrued current liabilities (13,315) (19,326) (50,265)
Other assets (noncurrent) 2,161 7,252 1,835
Other liabilities (noncurrent) $ (1,618) $ (4,187) $ (5,204)
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Derivative Financial Instruments And Hedging Activities (Summary Of The Effects Of Fair Value Hedging Relationships Included In VF's Consolidated Statement Of Income) (Details) (Fair Value Hedging [Member], Miscellaneous Income (Expense) [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Apr. 02, 2011
Foreign Exchange Contract [Member]
Apr. 02, 2011
Advances - Intercompany [Member]
Mar. 31, 2012
Not Designated As Hedging Instrument [Member]
Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in Income $ (1,230) $ 955
Gain (Loss) on Related Hedged Items Recognized in Income $ 970
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Derivative Financial Instruments And Hedging Activities (Effects Of Cash Flow Hedging Included In Consolidated Statements Of Income And Comprehensive Income) (Details) (Cash Flow Hedging [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Apr. 02, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI $ (7,711) $ (26,182)
Gain (Loss) Reclassified from Accumulated OCI into Income (560) 2,830
Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI (7,711) (26,182)
Net Sales [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 704 (396)
Cost Of Goods Sold [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 314 5,142
Miscellaneous Income (Expense) [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (667) (1,945)
Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income $ (911) $ 29
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Subsequent Events (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Subsequent Events [Abstract]
Dividends declared date Apr 24, 2012
Cash dividend $ 0.72
Dividends payable date Jun 18, 2012
Dividends record date Jun 8, 2012
Treasury Stock, Shares, Retired 19
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