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Document and Entity Information
9 Months Ended
Sep. 29, 2012
Oct. 27, 2012
Document Information [Line Items]
Document Type 10-Q
Amendment Flag false
Document Period End Date Sep 29, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q3
Trading Symbol VFC
Entity Registrant Name V F CORP
Entity Central Index Key 0000103379
Current Fiscal Year End Date --12-29
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 110,157,488
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Current assets
Cash and equivalents $ 304,603 $ 341,228 $ 337,391
Accounts receivable, less allowance for doubtful accounts of: September 2012 - $55,606; December 2011 - $54,010; September 2011 - $57,279 1,612,579 1,120,246 1,547,741
Inventories:
Finished products 1,500,595 1,197,928 1,513,801
Work in process 99,035 86,902 89,261
Materials and supplies 159,056 168,815 174,840
Inventories 1,758,686 1,453,645 1,777,902
Other current assets 322,932 272,825 279,358
Total current assets 3,998,800 3,187,944 3,942,392
Property, plant and equipment 1,925,601 1,830,039 1,787,668
Less accumulated depreciation 1,150,125 1,092,588 1,082,733
Property, Plant and Equipment, Net 775,476 737,451 704,935
Intangible assets 2,922,233 2,958,463 2,978,238
Goodwill 2,003,855 2,023,460 2,077,701
Other assets 431,368 405,808 415,782
Total assets 10,131,732 9,313,126 10,119,048
Current liabilities
Short-term borrowings 741,008 281,686 1,145,845
Current portion of long-term debt 402,838 2,744 2,709
Accounts payable 535,367 637,116 666,845
Accrued liabilities 756,629 744,486 849,165
Total current liabilities 2,435,842 1,666,032 2,664,564
Long-term debt 1,429,824 1,831,781 1,832,412
Other liabilities 1,339,282 1,290,138 1,162,173
Commitments and contingencies         
Stockholders' equity
Preferred Stock, par value $1; shares authorized, 25,000,000: no shares outstanding in 2011 or 2012         
Common Stock, stated value $1; shares authorized, 300,000,000; shares outstanding: September 2012 - 109,937,451; December 2011 - 110,556,981; September 2011 - 110,081,241 109,937 110,557 110,081
Additional paid-in capital 2,497,795 2,316,107 2,280,544
Accumulated other comprehensive income (loss) (386,853) (421,477) (279,966)
Retained earnings 2,705,905 2,520,804 2,348,152
Total equity attributable to VF Corporation 4,926,784 4,525,991 4,458,811
Noncontrolling interests (816) 1,088
Total stockholders' equity 4,926,784 4,525,175 4,459,899
Total liabilities and stockholders' equity $ 10,131,732 $ 9,313,126 $ 10,119,048
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Accounts receivable, allowance for doubtful accounts $ 55,606 $ 54,010 $ 57,279
Preferred Stock, par value $ 1 $ 1 $ 1
Preferred Stock, shares authorized 25,000,000 25,000,000 25,000,000
Preferred Stock, shares outstanding         
Common Stock, stated value $ 1 $ 1 $ 1
Common Stock, shares authorized 300,000,000 300,000,000 300,000,000
Common Stock, shares outstanding 109,937,451 110,556,981 110,081,241
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Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Net sales $ 3,119,614 $ 2,727,704 $ 7,762,660 $ 6,486,046
Royalty income 28,740 22,367 83,935 62,947
Total revenues 3,148,354 2,750,071 7,846,595 6,548,993
Costs and operating expenses
Cost of goods sold 1,678,090 1,504,982 4,222,368 3,533,429
Marketing, administrative and general expenses 933,372 814,971 2,609,248 2,122,132
Costs and Operating Expenses, Total 2,611,462 2,319,953 6,831,616 5,655,561
Operating income 536,892 430,118 1,014,979 893,432
Interest income 632 1,371 2,858 3,847
Interest expense (23,841) (20,671) (70,779) (52,573)
Other income (expense), net 1,569 (6,473) 44,872 (11,139)
Income before income taxes 515,252 404,345 991,930 833,567
Income taxes 133,934 102,933 239,960 201,168
Net income 381,318 301,412 751,970 632,399
Net (income) loss attributable to noncontrolling interests (712) (139) (1,628)
Net income attributable to VF Corporation $ 381,318 $ 300,700 $ 751,831 $ 630,771
Earnings per common share attributable to VF Corporation common stockholders
Basic $ 3.48 $ 2.74 $ 6.85 $ 5.79
Diluted $ 3.42 $ 2.69 $ 6.72 $ 5.69
Cash dividends per common share $ 0.72 $ 0.63 $ 2.16 $ 1.89
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Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Net income $ 381,318 $ 301,412 $ 751,970 $ 632,399
Foreign currency translation
Gains (losses) arising during the period 40,466 (121,686) 10,238 8,592
Less income tax effect (7,348) 25,434 (7,214) 1,605
Reclassification to net income for (gains) losses realized (11,995)
Less income tax effect 4,134
Defined benefit pension plans
Amortization of net deferred actuarial losses 17,617 10,783 52,856 32,326
Amortization of deferred prior service cost 837 863 2,514 2,590
Less income tax effect (6,966) (4,775) (21,273) (13,541)
Derivative financial instruments
Gains (losses) arising during the period (15,829) (25,218) 2,846 (59,770)
Less income tax effect 6,118 9,716 (1,095) 23,028
Reclassification to net income for (gains) losses realized (8,500) 12,321 (5,365) 9,704
Less income tax effect 3,273 (4,747) 2,066 (3,737)
Marketable securities
Gains (losses) arising during the period (135) (2,863) (949) (4,903)
Less income tax effect 4
Reclassification to net income for (gains) losses recognized (15) 832
Less income tax effect (237)
Other comprehensive income (loss) 29,533 (100,183) 34,624 (11,372)
Foreign currency translation gains (losses) attributable to noncontrolling interests (458) (229)
Other comprehensive income (loss) including noncontrolling interests 29,533 (100,641) 34,624 (11,601)
Comprehensive income 410,851 200,771 786,594 620,798
Comprehensive income attributable to noncontrolling interests (254) (139) (1,399)
Comprehensive income attributable to VF Corporation $ 410,851 $ 200,517 $ 786,455 $ 619,399
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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Operating activities
Net income $ 751,970 $ 632,399
Adjustments to reconcile net income to cash provided (used) by operating activities:
Depreciation 104,628 85,398
Amortization of intangible assets 36,130 29,092
Other amortization 26,025 17,554
Stock-based compensation 73,149 54,247
Pension expense in excess of contributions 57,674 32,153
Gain on sale of business (42,000)
Other, net 15,709 (83,439)
Changes in operating assets and liabilities, net of purchases and sales of businesses:
Accounts receivable (502,501) (573,511)
Inventories (317,761) (328,330)
Other current assets (23,854) 44,109
Accounts payable (100,101) (19,681)
Accrued compensation (20,153) 1,257
Accrued income taxes (17,095) 26,576
Accrued liabilities 42,078 39,238
Other assets and liabilities 18,707 14,105
Cash provided (used) by operating activities 102,605 (28,833)
Investing activities
Capital expenditures (190,277) (98,173)
Business acquisitions, net of cash acquired (1,750) (2,207,065)
Proceeds from sale of business 68,519
Trademarks acquisition (56,598)
Software purchases (12,509) (14,836)
Other, net (3,429) (3,280)
Cash used by investing activities (139,446) (2,379,952)
Financing activities
Net increase in short-term borrowings 459,173 1,127,805
Payments on long-term debt (2,079) (1,932)
Proceeds from long-term debt 898,450
Payments of debt issuance costs (5,969)
Purchase of Common Stock (306,422) (6,941)
Cash dividends paid (237,520) (206,277)
Proceeds from issuance of Common Stock, net 45,668 109,671
Tax benefits of stock option exercises 39,455 22,037
Acquition of noncontrolling interest (108)
Cash (used) provided by financing activities (1,725) 1,936,736
Effect of foreign currency rate changes on cash and equivalents 1,941 17,201
Net change in cash and equivalents (36,625) (454,848)
Cash and equivalents - beginning of year 341,228 792,239
Cash and equivalents - end of period $ 304,603 $ 337,391
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Consolidated Statements of Stockholders' Equity (USD $)
In Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Non- controlling Interests
Beginning 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)
Ending balance at Dec. 31, 2011 4,525,175 110,557 2,316,107 (421,477) 2,520,804 (816)
Net income 751,970 751,831 139
Dividends on Common Stock (237,520)
Purchase of treasury stock (2,000) (295,075)
Stock compensation plans, net 1,393 181,688 (32,420)
Common Stock held in trust for deferred compensation plans (13) (1,715)
Disposition of remaining noncontrolling interest 677
Foreign currency translation 3,024
Defined benefit pension plans 34,097
Derivative financial instruments (1,548)
Marketable securities (949)
Ending balance at Sep. 29, 2012 $ 4,926,784 $ 109,937 $ 2,497,795 $ (386,853) $ 2,705,905
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Basis of Presentation
9 Months Ended
Sep. 29, 2012
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 September 2012, December 2011 and September 2011 relate to the fiscal periods ended on September 29, 2012, December 31, 2011 and October 1, 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 and nine months ended September 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
9 Months Ended
Sep. 29, 2012
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 $499.1 million and $1,094.5 million of revenues and $55.8 million and $29.5 million of pretax income in the third quarter and first nine months of 2012, respectively. Timberland contributed $163.6 million of revenues and $11.0 million of pretax income in the third quarter of 2011.

This acquisition strengthens VF’s position within the outdoor apparel and footwear industry by adding two strong, global and authentic brands with significant 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 following table summarizes the 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

     42,635   
  

 

 

 

Total assets acquired

     2,392,393   

Current liabilities

     364,608   

Other liabilities, primarily deferred income taxes

     580,182   
  

 

 

 

Total liabilities assumed

     944,790   
  

 

 

 

Net assets acquired

     1,447,603   

Goodwill

     851,904   
  

 

 

 

Purchase price

   $ 2,299,507   
  

 

 

 

Since December 2011, goodwill decreased by $20.0 million as a result of adjustments to the acquired income tax balances. The purchase price allocation was finalized in the second quarter of 2012.

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 September 2011*
     Nine Months
Ended  September 2011*
 

Total revenues

   $ 3,113,686       $ 7,501,739   

Net income attributable to VF Corporation

     221,915         535,483   

Earnings per common share

     

Basic

   $ 2.02       $ 4.91   

Diluted

     1.99         4.83   

* Pro forma operating results for 2011 include expenses totalling $96.2 million for acceleration of vesting for all invested stock-based compensation awards, including tax gross-up payments required under employment agreements with certain Timberland executives, and $17.3 million in Timberland acquisition-related expenses.

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 April 30, 2012, VF sold its ownership in John Varvatos Enterprises, Inc. (“John Varvatos”). VF recorded a $42.0 million gain on the sale during the first nine months of 2012 which is included in Other income (expense), net.

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Sale of Accounts Receivable
9 Months Ended
Sep. 29, 2012
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 September 2012, December 2011 and September 2011, accounts receivable in the Consolidated Balance Sheets had been reduced by $154.7 million, $115.4 million and $133.9 million, respectively, related to balances sold under this program. During the first nine months of 2012, VF sold $940.9 million of accounts receivable at their stated amounts, less a funding fee of $1.5 million, which was recorded in Other income (expense), net. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.

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Intangible Assets
9 Months Ended
Sep. 29, 2012
Intangible Assets

Note D — Intangible Assets

 

     Weighted      September 2012      December 2011  
     Average
Amortization
Period
     Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

              

Customer relationships

     19 years       $ 613,693       $ 163,487       $ 450,206       $ 477,817   

License agreements

     24 years         183,656         65,653         118,003         124,239   

Trademarks and other

     8 years         19,357         9,417         9,940         11,934   
           

 

 

    

 

 

 

Amortizable intangible assets, net

              578,149         613,990   
           

 

 

    

 

 

 

Indefinite-lived intangible assets:

              

Trademarks and trade names

              2,344,084         2,344,473   
           

 

 

    

 

 

 

Intangible assets, net

            $ 2,922,233       $ 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 third quarter and first nine months of 2012 was $11.9 million and $36.1 million, respectively, and is expected to be $47.8 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
9 Months Ended
Sep. 29, 2012
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       $ 157,314       $ 142,361       $ 2,023,460   

Adjustments to purchase price allocation

     (19,991     —          978         —           —           (19,013

Currency translation

     (317     (275     —           —           —           (592
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balances, September 2012

   $ 1,417,288      $ 228,146      $ 58,746       $ 157,314       $ 142,361       $ 2,003,855   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

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
9 Months Ended
Sep. 29, 2012
Pension Plans

Note F — Pension Plans

The following components comprise VF’s pension cost:

 

     Three Months Ended
September
    Nine Months Ended
September
 
In thousands    2012     2011     2012     2011  

Service cost - benefits earned during the year

   $ 5,755      $ 5,322      $ 17,360      $ 15,776   

Interest cost on projected benefit obligations

     19,236        19,730        57,734        59,173   

Expected return on plan assets

     (20,148     (22,432     (60,462     (67,290

Amortization of deferred amounts:

        

Net deferred actuarial losses

     17,617        10,783        52,856        32,326   

Deferred prior service cost

     837        863        2,514        2,590   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension cost

   $ 23,297      $ 14,266      $ 70,002      $ 42,575   
  

 

 

   

 

 

   

 

 

   

 

 

 

During the first nine months of 2012, VF contributed $12.3 million to its defined benefit pension plans. VF currently anticipates making $3.5 million of additional contributions during the remainder of 2012.

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Business Segment Information
9 Months Ended
Sep. 29, 2012
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
September
    Nine Months Ended
September
 
In thousands    2012     2011     2012     2011  

Coalition revenues:

        

Outdoor & Action Sports

   $ 1,852,267      $ 1,436,832      $ 4,156,208      $ 2,942,975   

Jeanswear

     718,812        727,595        2,054,529        2,020,205   

Imagewear

     284,526        277,564        813,540        768,446   

Sportswear

     154,190        151,826        394,593        383,992   

Contemporary Brands

     104,165        126,182        339,016        356,201   

Other

     34,394        30,072        88,709        77,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition revenues

   $ 3,148,354      $ 2,750,071      $ 7,846,595      $ 6,548,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Coalition profit:

        

Outdoor & Action Sports

   $ 413,012      $ 320,876      $ 697,181      $ 554,253   

Jeanswear

     131,447        109,691        335,566        327,182   

Imagewear

     37,463        39,728        110,753        116,897   

Sportswear

     18,499        18,294        40,711        37,382   

Contemporary Brands

     13,436        8,076        40,286        28,449   

Other

     1,377        7        133        (2,003
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition profit

     615,234        496,672        1,224,630        1,062,160   

Corporate and other expenses

     (76,773     (73,027     (164,779     (179,867

Interest, net

     (23,209     (19,300     (67,921     (48,726
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 515,252      $ 404,345      $ 991,930      $ 833,567   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

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Capital and Accumulated Other Comprehensive Income (Loss)
9 Months Ended
Sep. 29, 2012
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 which are in substance, retired. During the nine months ended September 2012, VF restored 19,000,000 shares of treasury stock to an unissued status. There were 2,524,771 treasury shares at September 2012, 19,289,690 at December 2011 and 19,286,190 at September 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, 187,226 shares of Common Stock at September 2012, 238,275 shares at December 2011 and 235,011 shares at September 2011 were held in connection with deferred compensation plans. These shares, having a cost of $8.6 million, $11.0 million and $10.2 million at the respective dates, are treated as treasury shares for financial reporting purposes.

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    September
2012
    December
2011
    September
2011
 

Foreign currency translation

   $ (48,135   $ (51,159   $ (3,391

Defined benefit pension plans

     (322,596     (356,693     (244,750

Derivative financial instruments

     (15,715     (14,167     (32,491

Marketable securities

     (407     542        666   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (386,853   $ (421,477   $ (279,966
  

 

 

   

 

 

   

 

 

 
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Stock-based Compensation
9 Months Ended
Sep. 29, 2012
Stock-based Compensation

Note I — Stock-based Compensation

During the first nine months of 2012, VF granted options to purchase 870,195 shares of Common Stock at a weighted average exercise price of $145.64, equal to the fair market value of VF Common Stock on the option grant date. Employee stock options vest in equal annual installments over three years and options granted to VF’s 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 $33.44 per option.

Also during the first nine months of 2012, VF granted 195,290 performance-based restricted stock units to employees that enable them to receive shares of 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 shares earned may also be adjusted upward or downward by 25% of the targets award, based on how VF’s total shareholder return (“TSR”) over the three year period compares to the TSR for companies included in the Standard & Poor’s 500 index. The weighted average fair value of VF’s Common Stock on the date the units were granted was $145.47.

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

VF granted 6,000 nonperformance-based restricted stock units to employees during the first nine months of 2012. These units vest in four years and will be settled in shares of Common Stock at the end of the vesting period. The fair market value of Common Stock at the date the units were granted was $139.57 per share.

VF granted to employees, during the first nine months of 2012, 12,500 shares of restricted Common Stock with a weighted average grant date fair value of $140.54 per share. These shares will vest over periods ranging from three to four years, assuming the grantees remain employed through the vesting date.

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Income Taxes
9 Months Ended
Sep. 29, 2012
Income Taxes

Note J — Income Taxes

The effective income tax rate was 24.2% in the first nine months of 2012, compared with 24.1% in the first nine months of 2011. The tax rates in both periods were lowered by discrete items. The first nine months of 2012 included $8.0 million in tax benefits related to the settlement of prior years’ tax audits, $6.5 million in tax benefits from the realization of unrecognized tax benefits related to foreign taxes and $11.1 million in tax benefits from the utilization of a capital loss carryforward, which was triggered by the sale of John Varvatos. The first nine months of 2011 included $6.0 million in net tax benefits related to settlements of prior years’ tax audits and filings, $2.8 million of tax benefits related to the realization of unrecognized tax benefits resulting from expiration of statutes of limitations and $16.8 million in income tax benefits related to the release of valuation allowances in foreign jurisdictions due to improved profitability in the respective jurisdictions.

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. The IRS commenced an examination of Timberland’s 2010 tax year during the second quarter of 2012. Additionally, the IRS audit of Timberland’s 2008 and 2009 tax years was settled during the second quarter of 2012. 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 nine months of 2012, the amount of unrecognized tax benefits and associated interest decreased by $6.6 million to $96.1 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 $2.5 million related to the completion of audits and other settlements with tax authorities and the expiration of statutes of limitations. Of the $2.5 million, $2.3 million would reduce income tax expense.

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Earnings Per Share
9 Months Ended
Sep. 29, 2012
Earnings Per Share

Note K — Earnings Per Share

 

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

Earnings per share - basic:

         

Net income

   $ 381,318       $ 301,412      $ 751,970      $ 632,399   

Net (income) loss attributable to noncontrolling interests

     —           (712     (139     (1,628
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income attributable to VF Corporation

   $ 381,318       $ 300,700      $ 751,831      $ 630,771   
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

     109,557         109,643        109,800        108,982   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 3.48       $ 2.74      $ 6.85      $ 5.79   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share - diluted:

         

Net income attributable to VF Corporation

   $ 381,318       $ 300,700      $ 751,831      $ 630,771   
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

     109,557         109,643        109,800        108,982   

Incremental shares from stock options and other dilutive securities

     1,931         1,939        2,049        1,847   
  

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted weighted average common shares outstanding

     111,488         111,582        111,849        110,829   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 3.42       $ 2.69      $ 6.72      $ 5.69   
  

 

 

    

 

 

   

 

 

   

 

 

 

Outstanding options to purchase approximately 0.8 million shares and 0.9 million shares of Common Stock for the three and nine month periods ended September 2012, respectively, and outstanding options to purchase approximately 20,000 shares and 0.6 million shares of Common Stock for the three and nine months ended September 2011, respectively, were excluded from the computations of diluted earnings per share because the options were antidilutive. In addition, approximately 0.4 million performance-based restricted stock units were excluded from the computation of diluted earnings per share for the three and nine month periods ended September 2012, and 0.3 million were excluded for the three and nine month periods ended September 2011, because these units have not yet been earned in accordance with the vesting conditions of the plan.

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Fair Value Measurements
9 Months Ended
Sep. 29, 2012
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)
 

September 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 40       $ 40       $ —         $ —     

Time deposits

     86,919         86,919         —           —     

Derivative instruments

     26,843         —           26,843         —     

Investment securities

     188,969         158,207         30,762         —     

Other marketable securities

     3,964         3,964         —           —     

Financial liabilities:

           

Derivative instruments

     28,455         —           28,455         —     

Deferred compensation

     234,406         —           234,406         —     

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 consolidated financial statements at fair value. All other financial assets and financial liabilities are recorded in the consolidated financial statements at cost, except life insurance contracts which are recorded at cash surrender value. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, life insurance contracts, short-term borrowings, accounts payable and accrued liabilities. At September 2012 and December 2011, their carrying values approximated their fair values. Additionally, at September 2012 and December 2011, the carrying value of VF’s long-term debt, including the current portion, was $1,832.7 million and $1,834.5 million, respectively, compared with fair value of $2,118.8 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
9 Months Ended
Sep. 29, 2012
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, certain 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 September 2012, December 2011 and September 2011 totaled $1.4 billion, $1.5 billion and $1.4 billion, respectively, consisting of contracts hedging primarily exposures to the euro, British pound, Canadian dollar, Mexican peso, Polish zloty, and Japanese yen. 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 September
2012
December
2011
September
2011
September
2012
December
2011
September
2011

Foreign exchange contracts designated as hedging instruments

$ 26,664 $ 45,071 $ 29,073 $ 22,910 $ 22,406 $ 24,231

Foreign exchange contracts dedesignated as hedging instruments

64 1,245 2,220 4,976 930 201

Foreign exchange contracts not dedesignated as hedging instruments

115 12 81 569 177 177

Total derivatives

$ 26,843 $ 46,328 $ 31,374 $ 28,455 $ 23,513 $ 24,609

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 September
2012
December
2011
September
2011

Other current assets

$ 23,648 $ 39,076 $ 26,100

Accrued current liabilities

(22,766 ) (19,326 ) (18,260 )

Other assets (noncurrent)

3,195 7,252 5,274

Other liabilities (noncurrent)

(5,689 ) (4,187 ) (6,349 )

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 sales of inventory. In addition, VF hedges the exchange risk of forecasted intercompany royalties. As discussed below in “Derivative Contracts Dedesignated as Hedges”, certain cash flow hedges of forecasted inventory sales to third parties 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:

Gain (Loss) on Derivatives Recognized in OCI
In thousands Three Months ended
September
Nine Months ended
September

Cash Flow Hedging Relationships

2012 2011 2012 2011

Foreign exchange

$ (15,829 ) $ 23,048 $ 2,846 $ (11,504 )

Interest rate

(48,266 ) (48,266 )

Total

$ (15,829 ) $ (25,218 ) $ 2,846 $ (59,770 )

Gain (Loss) Reclassified from Accumulated OCI
into Income
In thousands Three Months ended
September
Nine Months ended
September

Location of Gain (Loss) Reclassified From Accumulated OCI into Income

2012 2011 2012 2011

Net sales

$ (2,150 ) $ 3,034 $ (3,931 ) $ 4,265

Cost of goods sold

9,694 (10,293 ) 10,291 (5,489 )

Other income (expense), net

1,890 (3,484 ) 1,777 (7,020 )

Interest expense

(934 ) (1,578 ) (2,772 ) (1,520 )

Total

$ 8,500 $ (12,321 ) $ 5,365 $ (9,764 )

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” during the first nine months of 2012. VF’s Consolidated Statements of Income include the following effects related to designated fair value hedging:

Gain (Loss) on Derivative and Related
Hedged Items Recognized in Income
In thousands Three Months ended
September
Nine Months ended
September

Fair Value Hedging Relationships

Location of Gain (Loss)

2012 2011 2012 2011

Foreign exchange (expense), net

Other income

$ $ 6,716 $ $ 1,669

Advances - intercompany

Other income (expense), net

$ $ (6,606 ) $ $ (2,807 )

Derivative Contracts Dedesignated as Hedges: As previously noted, cash flow hedges of certain forecasted inventory sales to third parties 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 and nine months ended September 2012, VF recorded net losses of $0.6 million and $2.4 million in Other income (expense), net for derivatives dedesignated as hedging instruments, effectively offsetting the net remeasurement gains on the related assets and liabilities. For the three and nine months ended September 2011, VF recorded net losses of less than $1.0 million in Other income (expense), net for dedesignated derivatives.

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:

Gain (Loss) on Derivatives
Recognized in Income
Three months ended
September
Nine months ended
September

Derivatives Not Designated as Hedges

Location of Gain (Loss) on Derivatives Recognized
in Income

2012 2011 2012 2011

Foreign exchange contracts

Other income (expense), net $ (2,253 ) $ $ (877 ) $

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

At September 2012, Accumulated OCI included $15.8 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 $40.4 million at September 2012, which will be reclassified into Interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments.

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Recently Adopted/Issued Accounting Standards
9 Months Ended
Sep. 29, 2012
Recently Adopted/Issued Accounting Standards

Note N — Recently Adopted/Issued 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 has been 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 the consolidated financial statements since the current statement of comprehensive income 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 an impact on the consolidated financial statements.

In December 2011, the FASB issued guidance enhancing disclosure requirements surrounding the nature of an entity’s right of offset associated with its financial instruments and derivative instruments. The new guidance is effective January 2013 with retrospective application required. It is not expected to have a material effect on the consolidated financial statements.

 

In July 2012, the FASB issued an update to their accounting guidance regarding indefinite-lived intangible asset impairment testing and whether it is necessary to perform the quantitative impairment test currently required. While the guidance is effective for annual periods beginning after September 15, 2012, VF will elect an early adoption for the 2012 indefinite-lived intangible asset impairment testing. It is not expected to have an impact on the consolidated financial statements.

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Subsequent Events
9 Months Ended
Sep. 29, 2012
Subsequent Events

Note O — Subsequent Events

On October 18, 2012, VF’s Board of Directors declared a quarterly cash dividend of $0.87 per share, payable on December 20, 2012 to shareholders of record on December 10, 2012.

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Acquisitions and Dispositions (Tables)
9 Months Ended
Sep. 29, 2012
Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition

The following table summarizes the 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

     42,635   
  

 

 

 

Total assets acquired

     2,392,393   

Current liabilities

     364,608   

Other liabilities, primarily deferred income taxes

     580,182   
  

 

 

 

Total liabilities assumed

     944,790   
  

 

 

 

Net assets acquired

     1,447,603   

Goodwill

     851,904   
  

 

 

 

Purchase price

   $ 2,299,507   
  

 

 

 
Pro Forma Results of Operations Assuming that 2011 Acquisition of Timberland had Occured at Beginning of 2010

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 September 2011*
Nine Months
Ended September 2011*

Total revenues

$ 3,113,686 $ 7,501,739

Net income attributable to VF Corporation

221,915 535,483

Earnings per common share

Basic

$ 2.02 $ 4.91

Diluted

1.99 4.83

* Pro forma operating results for 2011 include expenses totalling $96.2 million for acceleration of vesting for all invested stock-based compensation awards, including tax gross-up payments required under employment agreements with certain Timberland executives, and $17.3 million in Timberland acquisition-related expenses.

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Intangible Assets (Tables)
9 Months Ended
Sep. 29, 2012
Intangible Assets
     Weighted      September 2012      December 2011  
     Average
Amortization
Period
     Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

              

Customer relationships

     19 years       $ 613,693       $ 163,487       $ 450,206       $ 477,817   

License agreements

     24 years         183,656         65,653         118,003         124,239   

Trademarks and other

     8 years         19,357         9,417         9,940         11,934   
           

 

 

    

 

 

 

Amortizable intangible assets, net

              578,149         613,990   
           

 

 

    

 

 

 

Indefinite-lived intangible assets:

              

Trademarks and trade names

              2,344,084         2,344,473   
           

 

 

    

 

 

 

Intangible assets, net

            $ 2,922,233       $ 2,958,463   
           

 

 

    

 

 

 
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Goodwill (Tables)
9 Months Ended
Sep. 29, 2012
Goodwill

In thousands

   Outdoor &
Action Sports
    Jeanswear     Imagewear      Sportswear      Contemporary
Brands
     Total  

Balances, December 2011

   $ 1,437,596      $ 228,421      $ 57,768       $ 157,314       $ 142,361       $ 2,023,460   

Adjustments to purchase price allocation

     (19,991     —          978         —           —           (19,013

Currency translation

     (317     (275     —           —           —           (592
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balances, September 2012

   $ 1,417,288      $ 228,146      $ 58,746       $ 157,314       $ 142,361       $ 2,003,855   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
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Pension Plans (Tables)
9 Months Ended
Sep. 29, 2012
Components of Pension Cost

The following components comprise VF’s pension cost:

 

     Three Months Ended
September
    Nine Months Ended
September
 
In thousands    2012     2011     2012     2011  

Service cost - benefits earned during the year

   $ 5,755      $ 5,322      $ 17,360      $ 15,776   

Interest cost on projected benefit obligations

     19,236        19,730        57,734        59,173   

Expected return on plan assets

     (20,148     (22,432     (60,462     (67,290

Amortization of deferred amounts:

        

Net deferred actuarial losses

     17,617        10,783        52,856        32,326   

Deferred prior service cost

     837        863        2,514        2,590   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension cost

   $ 23,297      $ 14,266      $ 70,002      $ 42,575   
  

 

 

   

 

 

   

 

 

   

 

 

 
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Business Segment Information (Tables)
9 Months Ended
Sep. 29, 2012
Financial Information for Reportable Segments

Financial information for VF’s reportable segments is as follows:

 

     Three Months Ended
September
    Nine Months Ended
September
 
In thousands    2012     2011     2012     2011  

Coalition revenues:

        

Outdoor & Action Sports

   $ 1,852,267      $ 1,436,832      $ 4,156,208      $ 2,942,975   

Jeanswear

     718,812        727,595        2,054,529        2,020,205   

Imagewear

     284,526        277,564        813,540        768,446   

Sportswear

     154,190        151,826        394,593        383,992   

Contemporary Brands

     104,165        126,182        339,016        356,201   

Other

     34,394        30,072        88,709        77,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition revenues

   $ 3,148,354      $ 2,750,071      $ 7,846,595      $ 6,548,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Coalition profit:

        

Outdoor & Action Sports

   $ 413,012      $ 320,876      $ 697,181      $ 554,253   

Jeanswear

     131,447        109,691        335,566        327,182   

Imagewear

     37,463        39,728        110,753        116,897   

Sportswear

     18,499        18,294        40,711        37,382   

Contemporary Brands

     13,436        8,076        40,286        28,449   

Other

     1,377        7        133        (2,003
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition profit

     615,234        496,672        1,224,630        1,062,160   

Corporate and other expenses

     (76,773     (73,027     (164,779     (179,867

Interest, net

     (23,209     (19,300     (67,921     (48,726
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 515,252      $ 404,345      $ 991,930      $ 833,567   
  

 

 

   

 

 

   

 

 

   

 

 

 
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Capital and Accumulated Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 29, 2012
Deferred Components of Other Comprehensive Income (Loss) Reported, Net of Related Income Taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity

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    September
2012
    December
2011
    September
2011
 

Foreign currency translation

   $ (48,135   $ (51,159   $ (3,391

Defined benefit pension plans

     (322,596     (356,693     (244,750

Derivative financial instruments

     (15,715     (14,167     (32,491

Marketable securities

     (407     542        666   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (386,853   $ (421,477   $ (279,966
  

 

 

   

 

 

   

 

 

 
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Earnings Per Share (Tables)
9 Months Ended
Sep. 29, 2012
Earnings Per Share
     Three Months Ended
September
    Nine Months Ended
September
 
In thousands, except per share amounts    2012      2011     2012     2011  

Earnings per share - basic:

         

Net income

   $ 381,318       $ 301,412      $ 751,970      $ 632,399   

Net (income) loss attributable to noncontrolling interests

     —           (712     (139     (1,628
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income attributable to VF Corporation

   $ 381,318       $ 300,700      $ 751,831      $ 630,771   
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

     109,557         109,643        109,800        108,982   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 3.48       $ 2.74      $ 6.85      $ 5.79   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share - diluted:

         

Net income attributable to VF Corporation

   $ 381,318       $ 300,700      $ 751,831      $ 630,771   
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

     109,557         109,643        109,800        108,982   

Incremental shares from stock options and other dilutive securities

     1,931         1,939        2,049        1,847   
  

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted weighted average common shares outstanding

     111,488         111,582        111,849        110,829   
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 3.42       $ 2.69      $ 6.72      $ 5.69   
  

 

 

    

 

 

   

 

 

   

 

 

 
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Fair Value Measurements (Tables)
9 Months Ended
Sep. 29, 2012
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis

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)
 

September 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 40       $ 40       $ —         $ —     

Time deposits

     86,919         86,919         —           —     

Derivative instruments

     26,843         —           26,843         —     

Investment securities

     188,969         158,207         30,762         —     

Other marketable securities

     3,964         3,964         —           —     

Financial liabilities:

           

Derivative instruments

     28,455         —           28,455         —     

Deferred compensation

     234,406         —           234,406         —     

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)
9 Months Ended
Sep. 29, 2012
Outstanding Derivatives on Individual Contract Basis

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    September
2012
     December
2011
     September
2011
     September
2012
     December
2011
     September
2011
 

Foreign exchange contracts designated as hedging instruments

   $ 26,664       $ 45,071       $ 29,073       $ 22,910       $ 22,406       $ 24,231   

Foreign exchange contracts dedesignated as hedging instruments

     64         1,245         2,220         4,976         930         201   

Foreign exchange contracts not dedesignated as hedging instruments

     115         12         81         569         177         177   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 26,843       $ 46,328       $ 31,374       $ 28,455       $ 23,513       $ 24,609   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Outstanding Derivatives Classified as Current or Noncurrent Based on Derivatives' Maturity Dates

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    September
2012
    December
2011
    September
2011
 

Other current assets

   $ 23,648      $ 39,076      $ 26,100   

Accrued current liabilities

     (22,766     (19,326     (18,260

Other assets (noncurrent)

     3,195        7,252        5,274   

Other liabilities (noncurrent)

     (5,689     (4,187     (6,349
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

The effects of cash flow hedging included in VF’s Consolidated Statements of Income and Consolidated Statements of Comprehensive Income are summarized as follows:

 

     Gain (Loss) on Derivatives Recognized in OCI  
In thousands    Three Months ended
September
    Nine Months ended
September
 

Cash Flow Hedging Relationships

   2012     2011     2012      2011  

Foreign exchange

   $ (15,829   $ 23,048      $ 2,846       $ (11,504

Interest rate

     —          (48,266     —           (48,266
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (15,829   $ (25,218   $ 2,846       $ (59,770
  

 

 

   

 

 

   

 

 

    

 

 

 

 

     Gain (Loss) Reclassified from Accumulated OCI
into Income
 
In thousands    Three Months ended
September
    Nine Months ended
September
 

Location of Gain (Loss) Reclassified From Accumulated OCI into Income

   2012     2011     2012     2011  

Net sales

   $ (2,150   $ 3,034      $ (3,931   $ 4,265   

Cost of goods sold

     9,694        (10,293     10,291        (5,489

Other income (expense), net

     1,890        (3,484     1,777        (7,020

Interest expense

     (934     (1,578     (2,772     (1,520
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 8,500      $ (12,321   $ 5,365      $ (9,764
  

 

 

   

 

 

   

 

 

   

 

 

 
Effects of Fair Value Hedging Included in Consolidated Statements of Income

VF’s Consolidated Statements of Income include the following effects related to designated fair value hedging:

 

          Gain (Loss) on Derivative and Related
Hedged Items Recognized in Income
 
In thousands         Three Months  ended
September
    Nine Months  ended
September
 

Fair Value Hedging Relationships

  

Location of Gain (Loss)

   2012      2011     2012      2011  

Foreign exchange (expense), net

  

Other income

   $ —         $ 6,716      $ —         $ 1,669   

Advances - intercompany

  

Other income (expense), net

   $ —         $ (6,606   $ —         $ (2,807
Foreign exchange contracts not dedesignated as hedging instruments
Effects of Fair Value Hedging Included in Consolidated Statements of Income

Following is a summary of these hedges included in VF’s Consolidated Statements of Income:

 

         Gain (Loss) on Derivatives
Recognized in Income
 
         Three months  ended
September
     Nine months ended
September
 

Derivatives Not Designated as Hedges

 

Location of Gain (Loss) on Derivatives Recognized
in Income

   2012     2011      2012     2011  

Foreign exchange contracts

  Other income (expense), net    $ (2,253   $ —         $ (877   $ —     
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Acquisitions and Dispositions - Additional Information (Detail) (USD $)
6 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
Jun. 30, 2012
Sep. 29, 2012
Sep. 29, 2012
The Timberland Company
Oct. 01, 2011
The Timberland Company
Sep. 29, 2012
The Timberland Company
Sep. 13, 2011
The Timberland Company
Sep. 29, 2012
The Timberland Company
Trademarks And Tradenames
Sep. 29, 2012
The Timberland Company
Customer Relationships
Sep. 29, 2012
The Timberland Company
Distributor Agreements
Sep. 29, 2012
The Timberland Company
Licensing Agreements
Business Acquisition [Line Items]
Percent of outstanding shares acquired 100.00%
Enterprise value net of cash acquired $ 2,299,507,000
Debt issued to fund Timberland Company acquisition 900,000,000
Revenue contributed by acquiree 499,100,000 163,600,000 1,094,500,000
Earnings contributed by acquiree 55,800,000 11,000,000 29,500,000
Value of indefinite lived intangible assets acquired 1,274,100,000
Value of amortizable intangible assets acquired 174,400,000 5,800,000 4,500,000
Amortization period of intangible assets acquired (years) 20 years 10 years 5 years
Goodwill, period increase (decrease) (20,000,000)
Gain on sale of business $ 42,000,000
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Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) (The Timberland Company, USD $)
In Thousands, unless otherwise specified
Sep. 13, 2011
The Timberland Company
Schedule of Business Acquisitions, Purchase Price Allocation [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 42,635
Total assets acquired 2,392,393
Current liabilities 364,608
Other liabilities, primarily deferred income taxes 580,182
Total liabilities assumed 944,790
Net assets acquired 1,447,603
Goodwill 851,904
Purchase price $ 2,299,507
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Pro Forma Results of Operations Assuming that 2011 Acquisition of Timberland had Occured at Beginning of 2010 (Detail) (The Timberland Company, USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 01, 2011
Oct. 01, 2011
The Timberland Company
Business Acquisition, Pro Forma Information [Line Items]
Total revenues $ 3,113,686 [1] $ 7,501,739 [1]
Net income attributable to VF Corporation $ 221,915 [1] $ 535,483 [1]
Earnings per common share: Basic $ 2.02 [1] $ 4.91 [1]
Earnings per common share: Diluted $ 1.99 [1] $ 4.83 [1]
[1] Pro forma operating results for 2011 include expenses totalling $96.2 million for acceleration of vesting for all invested stock-based compensation awards, including tax gross-up payments required under employment agreements with certain Timberland executives, and $17.3 million in Timberland acquisition-related expenses.
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Pro Forma Results of Operations Assuming that 2011 Acquisition of Timberland had Occured at Beginning of 2010 (Parenthetical) (Detail) (The Timberland Company, USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 01, 2011
The Timberland Company
Business Acquisition, Pro Forma Information [Line Items]
Pro forma operating expenses related to acceleration of vesting for all invested stock-based compensation awards, including tax gross-up payments required under employment agreements $ 96.2
Pro forma acquisition related expenses $ 17.3
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Sale of Accounts Receivable - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum amount of accounts receivable sold at any point in time $ 237.5
Decrease in receivables related to balances sold 154.7 115.4 133.9
Sale of accounts receivable 940.9
Funding fee $ 1.5
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Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Sep. 29, 2012
Customer Relationships
Dec. 31, 2011
Customer Relationships
Sep. 29, 2012
Licensing Agreements
Dec. 31, 2011
Licensing Agreements
Sep. 29, 2012
Trademarks and other
Dec. 31, 2011
Trademarks and other
Intangible Assets by Major Class [Line Items]
Intangible assets, net $ 2,922,233 $ 2,958,463 $ 2,978,238
Amortizable intangible assets, Weighted Average Amortization Period (in years) 19 years 24 years 8 years
Amortizable intangible assets, Cost 613,693 183,656 19,357
Amortizable intangible assets, Accumulated Amortization 163,487 65,653 9,417
Amortizable intangible assets, Net Carrying Amount 578,149 613,990 450,206 477,817 118,003 124,239 9,940 11,934
Indefinite-lived intangible assets, Trademarks and trade names $ 2,344,084 $ 2,344,473
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Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 29, 2012
Sep. 29, 2012
Oct. 01, 2011
Schedule of Actual and Estimated Amortization Expense [Line Items]
Intangible asset amortization expense $ 11,900,000 $ 36,130,000 $ 29,092,000
Estimated amortization expense, 2012 47,800,000 47,800,000
Estimated amortization expense, 2013 46,300,000 46,300,000
Estimated amortization expense, 2014 44,600,000 44,600,000
Estimated amortization expense, 2015 42,800,000 42,800,000
Estimated amortization expense, 2016 $ 41,100,000 $ 41,100,000
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Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Goodwill [Line Items]
Goodwill, beginning balance $ 2,023,460 $ 2,077,701
Adjustments to purchase price allocation (19,013)
Currency translation (592)
Goodwill, ending balance 2,003,855 2,077,701
Outdoor & Action Sports
Goodwill [Line Items]
Goodwill, beginning balance 1,437,596
Adjustments to purchase price allocation (19,991)
Currency translation (317)
Goodwill, ending balance 1,417,288
Jeanswear
Goodwill [Line Items]
Goodwill, beginning balance 228,421
Adjustments to purchase price allocation   
Currency translation (275)
Goodwill, ending balance 228,146
Imagewear
Goodwill [Line Items]
Goodwill, beginning balance 57,768
Adjustments to purchase price allocation 978
Currency translation   
Goodwill, ending balance 58,746
Sportswear
Goodwill [Line Items]
Goodwill, beginning balance 157,314
Adjustments to purchase price allocation   
Currency translation   
Goodwill, ending balance 157,314
Contemporary Brands
Goodwill [Line Items]
Goodwill, beginning balance 142,361
Adjustments to purchase price allocation   
Currency translation   
Goodwill, ending balance $ 142,361
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Goodwill - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Outdoor & Action Sports
Goodwill [Line Items]
Cumulative impairment charges $ 43.4
Sportswear
Goodwill [Line Items]
Cumulative impairment charges 58.5
Contemporary Brands
Goodwill [Line Items]
Cumulative impairment charges $ 195.2
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Components of Pension Cost (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost - benefits earned during the year $ 5,755 $ 5,322 $ 17,360 $ 15,776
Interest cost on projected benefit obligations 19,236 19,730 57,734 59,173
Expected return on plan assets (20,148) (22,432) (60,462) (67,290)
Amortization of deferred amounts, Net deferred actuarial losses 17,617 10,783 52,856 32,326
Amortization of deferred amounts, Deferred prior service cost 837 863 2,514 2,590
Net periodic pension cost $ 23,297 $ 14,266 $ 70,002 $ 42,575
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Pension Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan contributed $ 12.3
Defined benefit pension plan anticipated additional contributions during the remainder of 2012 $ 3.5
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Financial Information for Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Segment Reporting Information [Line Items]
Coalition revenues $ 3,148,354 $ 2,750,071 $ 7,846,595 $ 6,548,993
Coalition profit 615,234 496,672 1,224,630 1,062,160
Corporate and other expenses (76,773) (73,027) (164,779) (179,867)
Interest, net (23,209) (19,300) (67,921) (48,726)
Income before income taxes 515,252 404,345 991,930 833,567
Outdoor & Action Sports
Segment Reporting Information [Line Items]
Coalition revenues 1,852,267 1,436,832 4,156,208 2,942,975
Coalition profit 413,012 320,876 697,181 554,253
Jeanswear
Segment Reporting Information [Line Items]
Coalition revenues 718,812 727,595 2,054,529 2,020,205
Coalition profit 131,447 109,691 335,566 327,182
Imagewear
Segment Reporting Information [Line Items]
Coalition revenues 284,526 277,564 813,540 768,446
Coalition profit 37,463 39,728 110,753 116,897
Sportswear
Segment Reporting Information [Line Items]
Coalition revenues 154,190 151,826 394,593 383,992
Coalition profit 18,499 18,294 40,711 37,382
Contemporary Brands
Segment Reporting Information [Line Items]
Coalition revenues 104,165 126,182 339,016 356,201
Coalition profit 13,436 8,076 40,286 28,449
Other
Segment Reporting Information [Line Items]
Coalition revenues 34,394 30,072 88,709 77,174
Coalition profit $ 1,377 $ 7 $ 133 $ (2,003)
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Capital and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Class of Stock [Line Items]
Treasury shares restored as unissued status 19,000,000
Treasury shares 2,524,771 19,289,690 19,286,190
Common Stock, stated value $ 1 $ 1 $ 1
Number of common stock shares held in connection with deferred compensation plans 187,226 238,275 235,011
Common Stock held in trust in connection with deferred compensation plans $ 8.6 $ 11 $ 10.2
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Deferred Components of Other Comprehensive Income (Loss) Reported, Net of Related Income Taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation $ (48,135) $ (51,159) $ (3,391)
Defined benefit pension plans (322,596) (356,693) (244,750)
Derivative financial instruments (15,715) (14,167) (32,491)
Marketable securities (407) 542 666
Accumulated other comprehensive income (loss) $ (386,853) $ (421,477) $ (279,966)
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Stock-based Compensation - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period 870,195
Weighted average exercise price of options granted $ 145.64
Vesting period 3 years
Expected volatility, minimum 27.00%
Expected volatility, maximum 31.00%
Weighted average, expected volatility 30.00%
Expected dividend yield 2.50%
Risk-free interest rate, at ten years 2.10%
Risk-free interest rate, at six months 0.10%
Weighted average fair value of options granted $ 33.44
Performance based period 3 years
Performance based adjustment 25.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term 5 years 7 months 6 days
Performance based adjustment 0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term 7 years 6 months
Restricted Stock Units | Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted in period 195,290
Share based compensation vesting period 3 years
Fair value of restricted stock units at grant date $ 145.47
Restricted Stock Units | Minimum | Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of possible awards 0.00%
Restricted Stock Units | Maximum | Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of possible awards 200.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted in period 12,500
Fair value of restricted stock units at grant date $ 140.54
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units vesting period 3 years
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units vesting period 4 years
Board Of Director Grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted period of time options become exercisable 1 year
Board of Directors | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock units at grant date $ 145.58
Board of Directors | Restricted Stock Units | Nonperformance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted in period 4,345
Employees | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock units at grant date $ 139.57
Restricted stock units vesting period 4 years
Employees | Restricted Stock Units | Nonperformance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted in period 6,000
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Income Taxes - Additional information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Income Taxes [Line Items]
Effective income tax rate 24.20% 24.10%
Tax settlements of prior years tax audits $ 8 $ 6
Reductions due to settlement of foreign tax claim 6.5 16.8
Tax benefits from utilization of capital loss carryforward 11.1
Realization of unrecognized tax benefits 2.8
Decrease in unrecognized tax benefits and associated interest primarily due to the audit settlements 6.6
Total unrecognized tax benefits 96.1
Unrecognized tax benefits and interest 2.5
Possible decrease in unrecognized income tax benefits $ 2.3
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Earnings Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Earnings per share - basic:
Net income $ 381,318 $ 301,412 $ 751,970 $ 632,399
Net (income) loss attributable to noncontrolling interests (712) (139) (1,628)
Net income attributable to VF Corporation 381,318 300,700 751,831 630,771
Weighted average common shares outstanding 109,557 109,643 109,800 108,982
Earnings per common share attributable to VF Corporation common stockholders $ 3.48 $ 2.74 $ 6.85 $ 5.79
Earnings per common share - diluted:
Net income attributable to VF Corporation $ 381,318 $ 300,700 $ 751,831 $ 630,771
Weighted average common shares outstanding 109,557 109,643 109,800 108,982
Incremental shares from stock options and other dilutive securities 1,931 1,939 2,049 1,847
Adjusted weighted average common shares outstanding 111,488 111,582 111,849 110,829
Earnings per common share attributable to VF Corporation common stockholders $ 3.42 $ 2.69 $ 6.72 $ 5.69
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Earnings Per Share - Additional information (Detail)
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Stock Options
Earnings Per Share Disclosure [Line Items]
Stock options excluded from computation of earnings per share 800,000 20,000 900,000 600,000
Performance-Based | Restricted Stock Units (RSUs)
Earnings Per Share Disclosure [Line Items]
Stock options excluded from computation of earnings per share 400,000 300,000 400,000 300,000
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Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 29, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds $ 40 $ 117
Cash equivalents, time deposits 86,919 89,585
Derivative instruments, assets 26,843 46,328
Investment securities 188,969 175,225
Other marketable securities 3,964 4,913
Derivative instruments, liabilities 28,455 23,513
Deferred compensation 234,406 220,056
Quoted Prices In Active Markets For Identical Assets, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds 40 117
Cash equivalents, time deposits 86,919 89,585
Investment securities 158,207 144,391
Other marketable securities 3,964 4,913
Significant Other Observable Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative instruments, assets 26,843 46,328
Investment securities 30,762 30,834
Derivative instruments, liabilities 28,455 23,513
Deferred compensation $ 234,406 $ 220,056
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Fair Value Measurements - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Fair Value, Measurement Inputs, Disclosure [Line Items]
Long-term debt, carrying value $ 1,832.7 $ 1,834.5
Long-term debt, fair value $ 2,118.8 $ 2,079.5
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Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 29, 2012
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Sep. 29, 2012
Interest Rate Swap Derivative Contracts In 2011
Sep. 29, 2012
Interest Rate Swap Derivative Contracts In 2003
Oct. 01, 2011
Maximum
Oct. 01, 2011
Maximum
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional amount of foreign currency derivatives $ 1,400,000,000 $ 1,400,000,000 $ 1,500,000,000 $ 1,400,000,000
Higher derivative maturity range by months 20 months
Miscellaneous Income (Expense) for derivatives designated as hedging instruments 600,000 2,400,000 1,000,000 1,000,000
Net pretax deferred gains for foreign exchange contracts that are expected to be reclassified to earnings during next 12 months 15,800,000
Remaining pretax deferred net loss in Accumulated OCI $ 40,400,000 $ 40,400,000
Long-term debt, maturity date Dec 31, 2021 Dec 31, 2033
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Outstanding Derivatives on Individual Contract Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains $ 26,843 $ 46,328 $ 31,374
Fair Value of Derivatives with Unrealized Losses 28,455 23,513 24,609
Foreign exchange contracts designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 26,664 45,071 29,073
Fair Value of Derivatives with Unrealized Losses 22,910 22,406 24,231
Foreign exchange contracts dedesignated as hedging instruments
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 64 1,245 2,220
Fair Value of Derivatives with Unrealized Losses 4,976 930 201
Foreign exchange contracts not dedesignated as hedging instruments
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 115 12 81
Fair Value of Derivatives with Unrealized Losses $ 569 $ 177 $ 177
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Outstanding Derivatives Classified as Current or Noncurrent Based on Derivatives' Maturity Dates (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Dec. 31, 2011
Oct. 01, 2011
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Other current assets $ 23,648 $ 39,076 $ 26,100
Accrued current liabilities (22,766) (19,326) (18,260)
Other assets (noncurrent) 3,195 7,252 5,274
Other liabilities (noncurrent) $ (5,689) $ (4,187) $ (6,349)
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Effects of Cash Flow Hedging Included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Detail) (Cash Flow Hedging, USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Oct. 01, 2011
Sep. 29, 2012
Oct. 01, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI $ (15,829) $ (25,218) $ 2,846 $ (59,770)
Gain (Loss) Reclassified from Accumulated OCI into Income 8,500 (12,321) 5,365 (9,764)
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI (15,829) 23,048 2,846 (11,504)
Interest Rates
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI (48,266) (48,266)
Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (2,150) 3,034 (3,931) 4,265
Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 9,694 (10,293) 10,291 (5,489)
Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 1,890 (3,484) 1,777 (7,020)
Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income $ (934) $ (1,578) $ (2,772) $ (1,520)
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Effects of Fair Value Hedging Included in Consolidated Statements of Income (Detail) (Foreign exchange contracts designated as hedging instruments, Fair Value Hedging, USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 01, 2011
Oct. 01, 2011
Other Income | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives and Related Hedged Items Recognized in Income $ 6,716 $ 1,669
Other income (expense), net | Advances - Intercompany
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives and Related Hedged Items Recognized in Income $ (6,606) $ (2,807)
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Hedges Included in Consolidated Statements of Income (Detail) (Foreign exchange contracts not dedesignated as hedging instruments, Fair Value Hedging, Other income (expense), net, Foreign Exchange Contract, USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2012
Sep. 29, 2012
Foreign exchange contracts not dedesignated as hedging instruments | Fair Value Hedging | Other income (expense), net | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in Income $ (2,253) $ (877)
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Subsequent Events - Additional Information (Detail) (Dividend Declared, USD $)
1 Months Ended
Oct. 18, 2012
Dividend Declared
Subsequent Event [Line Items]
Dividends declared date Oct 18, 2012
Cash dividend $ 0.87
Dividends payable date Dec 20, 2012
Dividends record date Dec 10, 2012
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