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Document and Entity Information
3 Months Ended
Mar. 30, 2013
Apr. 27, 2013
Document Information [Line Items]
Document Type 10-Q
Amendment Flag false
Document Period End Date Mar 30, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q1
Trading Symbol VFC
Entity Registrant Name V F CORP
Entity Central Index Key 0000103379
Current Fiscal Year End Date --12-28
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 109,523,539
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Current assets
Cash and equivalents $ 300,437 $ 597,461 $ 325,649
Accounts receivable, less allowance for doubtful accounts of: March 2013 - $50,703; December 2012 - $48,998; March 2012 - $52,916 1,208,682 1,222,345 1,206,179
Inventories 1,409,443 1,354,158 1,516,446
Other current assets 341,065 275,619 315,059
Total current assets 3,259,627 3,449,583 3,363,333
Property, plant and equipment 866,251 828,218 729,079
Intangible assets 2,897,701 2,917,058 2,956,312
Goodwill 2,000,703 2,009,757 2,018,839
Other assets 466,992 428,405 435,754
Total assets 9,491,274 9,633,021 9,503,317
Current liabilities
Short-term borrowings 182,206 12,559 680,500
Current portion of long-term debt 402,910 402,873 2,789
Accounts payable 432,918 562,638 537,531
Accrued liabilities 687,366 754,142 683,500
Total current liabilities 1,705,400 1,732,212 1,904,320
Long-term debt 1,428,496 1,429,166 1,831,113
Other liabilities 1,268,384 1,346,018 1,316,216
Commitments and contingencies         
Stockholders' equity
Preferred Stock, par value $1; shares authorized, 25,000,000: no shares outstanding at March 2013, December 2012 or March 2012         
Common Stock, stated value $1; shares authorized, 300,000,000; shares outstanding: March 2013 - 109,257,442 ; December 2012 - 110,204,734; March 2012 - 109,296,385 109,257 110,205 109,296
Additional paid-in capital 2,595,430 2,527,868 2,384,636
Accumulated other comprehensive income (loss) (423,135) (453,895) (376,979)
Retained earnings 2,807,442 2,941,447 2,335,520
Total equity attributable to VF Corporation 5,088,994 5,125,625 4,452,473
Noncontrolling interests (805)
Total stockholders' equity 5,088,994 5,125,625 4,451,668
Total liabilities and stockholders' equity $ 9,491,274 $ 9,633,021 $ 9,503,317
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Accounts receivable, allowance for doubtful accounts $ 50,703 $ 48,998 $ 52,916
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 109,257,442 110,204,734 109,296,385
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Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Net sales $ 2,582,230 $ 2,527,417
Royalty income 29,639 29,038
Total revenues 2,611,869 2,556,455
Costs and operating expenses
Cost of goods sold 1,355,277 1,388,866
Marketing, administrative and general expenses 898,864 853,487
Costs and Expenses, Total 2,254,141 2,242,353
Operating income 357,728 314,102
Interest income 490 1,038
Interest expense (21,008) (23,345)
Other income (expense), net 1,039 1,746
Income before income taxes 338,249 293,541
Income taxes 67,832 78,314
Net income 270,417 215,227
Net (income) loss attributable to noncontrolling interests (11)
Net income attributable to VF Corporation $ 270,417 $ 215,216
Earnings per common share attributable to VF Corporation common stockholders
Basic $ 2.46 $ 1.95
Diluted $ 2.41 $ 1.91
Cash dividends per common share $ 0.87 $ 0.72
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Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Net income $ 270,417 $ 215,227
Foreign currency translation
Gains (losses) arising during the period (16,945) 49,494
Less income tax effect 3,147 (11,822)
Defined benefit pension plans
Amortization of net deferred actuarial losses 21,362 [1] 17,618
Amortization of deferred prior service cost 341 [1] 839
Less income tax effect (8,844) (6,957)
Derivative financial instruments
Gains (losses) arising during the period 55,493 (7,711)
Less income tax effect (21,809) 2,972
Reclassification to net income for (gains) losses realized (3,838) 560
Less income tax effect 1,508 (216)
Marketable securities
Gains (losses) arising during the period 345 (279)
Net other comprehensive income (loss) 30,760 44,498
Comprehensive income 301,177 259,725
Comprehensive (income) attributable to noncontrolling interests (11)
Comprehensive income attributable to VF Corporation $ 301,177 $ 259,714
[1] These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note H for additional details).
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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Operating activities
Net income $ 270,417 $ 215,227
Adjustments to reconcile net income to cash provided (used) by operating activities:
Depreciation 36,490 35,064
Amortization of intangible assets 11,525 12,181
Other amortization 9,933 5,658
Stock-based compensation 23,209 22,922
Provision for doubtful accounts 5,516 4,199
Pension expense in excess of (less than) contributions (86,854) 17,829
Other, net 53,213 17,157
Changes in operating assets and liabilities:
Accounts receivable (8,938) (73,491)
Inventories (62,263) (55,174)
Other current assets (68,034) (6,657)
Accounts payable (127,139) (188,949)
Accrued compensation (68,880) (93,453)
Accrued income taxes (18,791) 7,242
Accrued liabilities 32,772 (30,459)
Other assets and liabilities 9,498 (1,433)
Cash provided (used) by operating activities 11,674 (112,137)
Investing activities
Capital expenditures (102,227) (25,140)
Software purchases (10,547) (13,370)
Other, net (2,225) 6,341
Cash used by investing activities (114,999) (32,169)
Financing activities
Net increase in short-term borrowings 169,754 397,595
Payments on long-term debt (707) (698)
Purchases of Common Stock (281,370) (210,840)
Cash dividends paid (96,263) (79,924)
Proceeds from issuance of Common Stock, net (7,598) (2,164)
Tax benefits of stock option exercises 24,222 22,055
Cash provided (used) by financing activities (191,962) 126,024
Effect of foreign currency rate changes on cash and equivalents (1,737) 2,703
Net change in cash and equivalents (297,024) (15,579)
Cash and equivalents - beginning of year 597,461 341,228
Cash and equivalents - end of period $ 300,437 $ 325,649
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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 Dec. 31, 2011 $ 110,557 $ 2,316,107 $ (421,477) $ 2,520,804 $ (816)
Net income 1,085,999 139
Dividends on Common Stock (333,229)
Purchase of treasury stock (2,000) (295,074)
Stock compensation plans, net 1,666 211,761 (34,435)
Common Stock held in trust for deferred compensation plans (18) (2,618)
Disposition of noncontrolling interests 677
Foreign currency translation 47,091
Defined benefit pension plans (63,845)
Derivative financial instruments (15,263)
Marketable securities (401)
Ending balance at Dec. 29, 2012 5,125,625 110,205 2,527,868 (453,895) 2,941,447
Net income 270,417 270,417
Dividends on Common Stock (96,263)
Purchase of treasury stock (1,700) (278,176)
Stock compensation plans, net 757 67,562 (29,157)
Common Stock held in trust for deferred compensation plans (5) (826)
Foreign currency translation (13,798)
Defined benefit pension plans (12,859) 12,859
Derivative financial instruments 31,354
Marketable securities 345
Ending balance at Mar. 30, 2013 $ 5,088,994 $ 109,257 $ 2,595,430 $ (423,135) $ 2,807,442
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Basis of Presentation
3 Months Ended
Mar. 30, 2013
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 2013, December 2012 and March 2012 relate to the fiscal periods ended on March 30, 2013, December 29, 2012 and March 31, 2012, 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 2012 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 2013 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 28, 2013. 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 2012 (“2012 Form 10-K”).

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Acquisitions and Dispositions
3 Months Ended
Mar. 30, 2013
Acquisitions and Dispositions

Note B — Acquisitions and Dispositions

On April 30, 2012, VF sold its 80% ownership in John Varvatos Enterprises, Inc. (“John Varvatos”). VF recorded a $42.0 million gain on the sale which was included in other income (expense), net during the second quarter of 2012.

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Sale of Accounts Receivable
3 Months Ended
Mar. 30, 2013
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 recurring, nonrecourse basis. Under the agreement, up to $237.5 million of accounts receivable may be sold to the financial institution and remain outstanding at any point in time. After the sale, VF does not retain any interests in the accounts receivable and removes them from the Consolidated Balance Sheets, but continues to service and collect outstanding accounts receivable on behalf of the financial institution. At March 2013, December 2012 and March 2012, accounts receivable had been reduced by $149.1 million, $127.4 million and $156.6 million, respectively, related to balances sold under this program. During the three months ended March 2013, VF sold $298.1 million of accounts receivable at their stated amounts, less a funding fee charged by the financial institution. The funding fee is recorded in other income (expense), net and totaled $0.4 million for the first quarter of 2013. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.

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Inventories
3 Months Ended
Mar. 30, 2013
Inventories

Note D — Inventories

 

In thousands    March
2013
     December
2012
     March
2012
 

Finished products

   $ 1,161,302       $ 1,099,229       $ 1,267,073   

Work in process

     93,605         98,191         89,753   

Materials and supplies

     154,536         156,738         159,620   
  

 

 

    

 

 

    

 

 

 

Total inventories

   $ 1,409,443       $ 1,354,158       $ 1,516,446   
  

 

 

    

 

 

    

 

 

 
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Property, Plant and Equipment
3 Months Ended
Mar. 30, 2013
Property, Plant and Equipment

Note E — Property, Plant and Equipment

 

In thousands    March
2013
     December
2012
     March
2012
 

Land

   $ 52,769       $ 54,264       $ 53,848   

Buildings and improvements

     896,555         862,288         772,563   

Machinery and equipment

     1,099,939         1,066,865         1,027,807   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, at cost

     2,049,263         1,983,417         1,854,218   

Less accumulated depreciation and amortization

     1,183,012         1,155,199         1,125,139   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, net

   $ 866,251       $ 828,218       $ 729,079   
  

 

 

    

 

 

    

 

 

 
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Intangible Assets
3 Months Ended
Mar. 30, 2013
Intangible Assets

Note F — Intangible Assets

 

     Weighted
Average
Amortization
Period
          March 2013      December
2012
 
Dollars in thousands       Amortization Methods    Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

                 

Customer relationships

     19 years       Accelerated    $ 613,600       $ 181,313       $ 432,287       $ 442,446   

License agreements

     24 years       Accelerated and straight-line      183,634         70,090         113,544         115,742   

Trademarks and other

     8 years       Straight-line      15,935         7,780         8,155         8,748   
              

 

 

    

 

 

 

Amortizable intangible assets, net

                 553,986         566,936   
              

 

 

    

 

 

 

Indefinite-lived intangible assets:

                 

Trademarks and trade names

                 2,343,715         2,350,122   
              

 

 

    

 

 

 

Intangible assets, net

               $ 2,897,701       $ 2,917,058   
              

 

 

    

 

 

 

Amortization expense for the first quarter of 2013 was $11.5 million. Estimated amortization expense for the next five years is:

 

Year

   Estimated
Amortization  Expense
 

2013

   $ 45.6   

2014

   $ 44.1   

2015

   $ 42.1   

2016

   $ 40.8   

2017

   $ 39.5   
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Goodwill
3 Months Ended
Mar. 30, 2013
Goodwill

Note G — Goodwill

Changes in goodwill are summarized by business segment as follows:

 

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

Balance, December 2012

   $ 1,422,492      $ 228,843      $ 58,747       $ 157,314       $ 142,361       $ 2,009,757   

Currency translation

     (7,259     (1,795     —           —           —           (9,054
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance, March 2013

   $ 1,415,233      $ 227,048      $ 58,747       $ 157,314       $ 142,361       $ 2,000,703   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Accumulated impairment charges as of December 2012 and March 2013, were $43.4 million, $58.5 million and $195.2 million related to the Outdoor & Action Sports, Sportswear and Contemporary Brands Coalitions, respectively.

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Pension Plans
3 Months Ended
Mar. 30, 2013
Pension Plans

Note H — Pension Plans

The components of pension cost for VF’s defined benefit plans were as follows:

 

     Three Months Ended
March
 
In thousands    2013     2012  

Service cost — benefits earned during the period

   $ 6,893      $ 5,811   

Interest cost on projected benefit obligations

     18,051        19,249   

Expected return on plan assets

     (23,682     (20,156

Amortization of deferred amounts:

    

Net deferred actuarial losses

     21,362        17,618   

Deferred prior service cost

     341        839   
  

 

 

   

 

 

 

Net periodic pension cost

   $ 22,965      $ 23,361   
  

 

 

   

 

 

 

 

During the first three months of 2013, VF contributed $109.8 million to its defined benefit plans, which included a $100.0 million discretionary contribution to its domestic defined benefit plan. VF intends to make approximately $11.0 million of additional contributions during the remainder of 2013.

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Business Segment Information
3 Months Ended
Mar. 30, 2013
Business Segment Information

Note I — 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    2013     2012  

Coalition revenues:

    

Outdoor & Action Sports

   $ 1,384,274      $ 1,263,967   

Jeanswear

     717,929        741,711   

Imagewear

     252,757        277,521   

Sportswear

     128,233        122,915   

Contemporary Brands

     103,727        126,904   

Other

     24,949        23,437   
  

 

 

   

 

 

 

Total coalition revenues

   $ 2,611,869      $ 2,556,455   
  

 

 

   

 

 

 

Coalition profit:

    

Outdoor & Action Sports

   $ 226,502      $ 201,700   

Jeanswear

     143,343        110,772   

Imagewear

     31,586        42,926   

Sportswear

     12,216        10,726   

Contemporary Brands

     12,576        14,858   

Other

     (2,657     (1,610
  

 

 

   

 

 

 

Total coalition profit

     423,566        379,372   

Corporate and other expenses

     (64,799     (63,524

Interest, net

     (20,518     (22,307
  

 

 

   

 

 

 

Income before income taxes

   $ 338,249      $ 293,541   
  

 

 

   

 

 

 
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Capital and Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 30, 2013
Capital and Accumulated Other Comprehensive Income (Loss)

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

Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were 4,240,051 treasury shares at March 2013, 2,530,401 at December 2012 and 21,462,952 at March 2012. During 2012, VF restored 19,000,000 shares of treasury stock to an unissued status. 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, 183,176 shares of Common Stock at March 2013, 187,456 shares at December 2012 and 239,345 shares at March 2012 were held in connection with deferred compensation plans. These shares, having a cost of $8.5 million, $8.8 million and $11.2 million at the respective dates, are treated as treasury shares for financial reporting purposes.

The deferred components of other comprehensive income (loss) are reported in accumulated other comprehensive income (loss) in stockholders’ equity, net of related income taxes, as follows:

 

In thousands    March
2013
    December
2012
    March
2012
 

Foreign currency translation

   $ (17,866   $ (4,068   $ (13,487

Defined benefit pension plans

     (407,679     (420,538     (345,193

Derivative financial instruments

     1,924        (29,430     (18,562

Marketable securities

     486        141        263   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (423,135   $ (453,895   $ (376,979
  

 

 

   

 

 

   

 

 

 

 

The changes in accumulated other comprehensive income (loss) are as follows:

 

In thousands    Foreign
Currency
Translation
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
     Total  

Beginning balance, December 2012

   $ (4,068   $ (420,538   $ (29,430   $ 141       $ (453,895
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Other comprehensive income (loss) before reclassifications

     (13,798     —          33,684        345         20,231   

Amounts reclassified from accumulated other comprehensive income (loss)

     —          12,859        (2,330     —           10,529   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net other comprehensive income (loss)

     (13,798     12,859        31,354        345         30,760   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance, March 2013

   $ (17,866   $ (407,679   $ 1,924      $ 486       $ (423,135
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Reclassifications out of accumulated other comprehensive income (loss) are as follows:

 

Details About Accumulated Other
Comprehensive Income (Loss) Components

  

Affected Line Item in the
Consolidated Statements
of Income (Loss)

   Amount Reclassified From Accumulated
Other Comprehensive Income (Loss)
Three Months Ended March 2013
 

Gains and losses on derivative financial instruments:

     

Foreign exchange contracts

   Net sales    $ (155

Foreign exchange contracts

   Cost of goods sold      3,858   

Foreign exchange contracts

   Other income (expense), net      1,092   

Interest rate contracts

   Interest expense      (957
     

 

 

 
   Total before tax      3,838   
   Tax benefit (expense)      (1,508
     

 

 

 
   Net of tax    $ 2,330   
     

 

 

 

Amortization of defined benefit pension plans:

     

Net deferred actuarial losses

   (a)    $ (21,362

Deferred prior service cost

   (a)      (341
     

 

 

 
   Total before tax      (21,703
   Tax benefit (expense)      8,844   
     

 

 

 
   Net of tax      (12,859
     

 

 

 

Total reclassifications for the period

   Net of tax    $ (10,529
     

 

 

 

 

(a) 

These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note H for additional details).

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Stock-based Compensation
3 Months Ended
Mar. 30, 2013
Stock-based Compensation

Note K — Stock-based Compensation

During the first three months of 2013, VF granted options to purchase 884,308 shares of common stock at an exercise price of $161.95, 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. Options granted to VF’s Board of Directors become exercisable one year from the date of grant. The grant date fair value of each option award is calculated using a lattice option–pricing valuation model, which incorporates a range of assumptions for inputs as follows:

 

     Three Months Ended
     March 2013   March 2012

Expected volatility

   24% to 29%   27% to 31%

Weighted average expected volatility

   26.6%   30%

Expected term (in years)

   5.6 to 7.4   5.6 to 7.5

Dividend yield

   2.3%   2.5%

Risk-free interest rate

   0.1% to 2.0%   0.1% to 2.1%

Weighted average grant date fair value

   $32.25   $33.44

 

Also during the first three months of 2013, VF granted 180,925 performance–based restricted stock units to employees that enable them to receive shares of VF Common Stock at the end of a three year period. Each RSU has a potential final value ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is 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 target 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. Shares are issued to participants in the year following the conclusion of each three year performance period. The fair market value of VF Common Stock on the date the units were granted was $161.95.

VF granted 4,081 nonperformance-based restricted stock units to members of the Board of Directors during the first three months

of 2013. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The fair market value of VF Common Stock at the date the units were granted was $161.95 per share.

VF granted 38,500 nonperformance-based restricted stock units to employees during the first three months of 2013. These units vest in four years and each RSU entitles the holder to one share of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $151.89 per share.

VF granted to employees, during the first three months of 2013, 74,500 restricted shares of VF Common Stock with a grant date fair value of $151.89 per share. These shares will vest in four years, assuming the grantees remain employed through the vesting date.

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Income Taxes
3 Months Ended
Mar. 30, 2013
Income Taxes

Note L — Income Taxes

The effective income tax rate for the first quarter of 2013 was 20.1% compared with a 26.7% effective income tax rate in the first quarter of 2012. The first quarter of 2013 included net discrete tax benefits of $13.5 million, which included $8.3 million of tax benefits related to the extension of certain tax credits and other provisions of the Internal Revenue Code enacted in 2013 which are retroactive to 2012, and $5.6 million of tax benefits related to the realization of unrecognized tax benefits and interest. The net discrete tax benefits reduced the effective income tax rate for the first quarter of 2013 by 4.0%. The remaining reduction in the effective income tax rate for the first quarter of 2013 related primarily to a higher percentage of income in lower tax rate jurisdictions compared with the 2012 quarter.

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 the United States, the Internal Revenue Service (“IRS”) examination for tax years 2007, 2008 and 2009 was completed in 2012. VF has appealed the results of the 2007 to 2009 examination to the IRS Appeals office. Tax years prior to 2007 have been effectively settled with the IRS, with the exception of outstanding refund claims. The IRS commenced an examination of Timberland’s 2010 and 2011 tax years during 2012. The IRS audit of Timberland’s 2008 and 2009 tax years was settled during 2012. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years to ensure VF’s provision for income taxes is sufficient. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months.

During the first quarter of 2013, the amount of net unrecognized tax benefits and associated interest increased by $2.3 million to $119.4 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 $41.4 million related to the completion of audits and other settlements with tax authorities and the expiration of statutes of limitations, $12.5 million of which would reduce income tax expense.

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Earnings Per Share
3 Months Ended
Mar. 30, 2013
Earnings Per Share

Note M — Earnings Per Share

 

     Three Months Ended
March
 
In thousands, except per share amounts    2013      2012  

Earnings per share — basic:

     

Net income

   $ 270,417       $ 215,227   

Net income attributable to noncontrolling interests

     —           (11
  

 

 

    

 

 

 

Net income attributable to VF Corporation

   $ 270,417       $ 215,216   
  

 

 

    

 

 

 

Weighted average common shares outstanding

     110,068         110,527   
  

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 2.46       $ 1.95   
  

 

 

    

 

 

 

Earnings per share — diluted:

     

Net income attributable to VF Corporation

   $ 270,417       $ 215,216   
  

 

 

    

 

 

 

Weighted average common shares outstanding

     110,068         110,527   

Incremental shares from stock options and other dilutive securities

     1,906         2,223   
  

 

 

    

 

 

 

Adjusted weighted average common shares outstanding

     111,974         112,750   
  

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 2.41       $ 1.91   
  

 

 

    

 

 

 

Outstanding options to purchase 0.9 million shares of Common Stock for the quarters ended March 2013 and March 2012 were excluded from the computations of diluted earnings per share because the effect of their inclusion would have been antidilutive. In addition, 0.4 million performance-based restricted stock units were excluded from the computation of diluted earnings per share for the quarters ended March 2013 and March 2012 because these units have not yet been earned in accordance with the vesting conditions of the plan.

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Fair Value Measurements
3 Months Ended
Mar. 30, 2013
Fair Value Measurements

Note N — Fair Value Measurements

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. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. 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 VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.

 

The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis:

 

    

Total
FairValue

     Fair Value Measurement Using (a)  
In thousands       Level 1      Level 2      Level 3  

March 2013

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 39,526       $ 39,526       $ —         $ —     

Time deposits

     27,007         27,007         —           —     

Derivative instruments

     48,817         —           48,817         —     

Investment securities

     207,464         179,163         28,301         —     

Other marketable securities

     4,915         4,915         —           —     

Financial liabilities:

           

Derivative instruments

     9,875         —           9,875         —     

Deferred compensation

     252,530         —           252,530         —     

December 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 181,635       $ 181,635       $ —        $ —     

Time deposits

     17,042         17,042         —          —     

Derivative instruments

     16,153         —           16,153         —     

Investment securities

     188,307         157,230         31,077         —     

Other marketable securities

     4,513         4,513         —          —     

Financial liabilities:

           

Derivative instruments

     29,468         —           29,468         —     

Deferred compensation

     230,733         —           230,733         —     

 

(a) 

There were no transfers among the levels within the fair value hierarchy during the first quarter of 2013 or the year ended December 2012.

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, short-term borrowings, accounts payable and accrued liabilities. At March 2013 and December 2012, their carrying values approximated their fair values. Additionally, at March 2013 and December 2012, the carrying value of VF’s long–term debt, including the current portion, was $1,831.4 million and $1,832.0 million, respectively, compared with a fair value of $2,051.7 million and $2,111.4 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. 30, 2013
Derivative Financial Instruments and Hedging Activities

Note O — 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, some 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 2013, December 2012 and March 2012 totaled $1.9 billion, $1.9 billion and $1.4 billion, respectively, primarily consisting of contracts hedging exposures to the euro, British pound, Canadian dollar, Mexican peso, Japanese yen and Polish zloty. Derivative contracts have maturities up to 24 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
2013
     December
2012
     March
2012
     March
2013
     December
2012
     March
2012
 

Foreign exchange contracts designated as hedging instruments

   $ 48,156       $ 15,847       $ 25,568       $ 8,933       $ 27,267       $ 13,598   

Foreign exchange contracts dedesignated as hedging instruments

     571         15         335         864         2,160         1,070   

Foreign exchange contracts not designated as hedging instruments

     90         291         132         78         41         265   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 48,817       $ 16,153       $ 26,035       $ 9,875       $ 29,468       $ 14,933   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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
2013
    December
2012
    March
2012
 

Other current assets

   $ 36,830      $ 13,629      $ 23,874   

Accrued liabilities (current)

     (8,018     (22,013     (13,315

Other assets (noncurrent)

     11,987        2,524        2,161   

Other liabilities (noncurrent)

     (1,857     (7,455     (1,618

Cash Flow Hedge Strategies and Accounting Policies

VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production costs and intercompany royalties. As discussed below in Derivative Contracts Dedesignated as Hedges, some cash flow hedges of forecasted sales to third parties, primarily related to our international businesses, 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:

 

In thousands    Gain (Loss) on Derivatives
Recognized in OCI
Three Months Ended March
 

Cash Flow Hedging Relationships

   2013     2012  

Foreign exchange

   $ 55,493      $ (7,711
  

 

 

   

 

 

 

Total

   $ 55,493      $ (7,711
  

 

 

   

 

 

 
In thousands    Gain (Loss) Reclassified from
Accumulated OCI into Income
Three  Months Ended March
 

Location of Gain (Loss)

   2013     2012  

Net sales

   $ (155     704   

Cost of goods sold

     3,858        314   

Other income (expense), net

     1,092        (667

Interest expense

     (957     (911
  

 

 

   

 

 

 

Total

   $ 3,838      $ (560
  

 

 

   

 

 

 

Derivative Contracts Dedesignated as Hedges

As previously noted, cash flow hedges of some forecasted sales to third parties are dedesignated as hedges when the sales are recognized. At that time, hedge accounting is discontinued and the amount of unrealized hedging gain or loss is recognized in net sales. These derivatives remain outstanding as an economic hedge of foreign currency exposures related to the ultimate collection of the accounts receivable, during which time changes in the fair value of the derivative contracts are recognized directly in earnings. For each of the three month periods ended March 2013 and March 2012, the net impact of derivatives dedesignated as hedging instruments was less than $1 million and was recorded in other income (expense), net.

 

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:

 

    

Location of Gain (Loss) on Derivatives

Recognized in Income

   Gain (Loss) on Derivatives Recognized in Income
Three Months Ended March
 

Derivatives Not Designated as Hedges

      2013      2012  

Foreign exchange

   Other income (expense), net    $ 1,269       $ 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 2013 and March 2012.

At March 2013, accumulated OCI included $26.8 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 ultimately reclassified to earnings will depend on exchange rates in effect when 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 pretax net deferred loss in accumulated OCI related to the contracts was $38.5 million at March 2013, 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
3 Months Ended
Mar. 30, 2013
Recently Adopted/Issued Accounting Standards

Note P — Recently Adopted/Issued Accounting Standards

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 guidance became effective during the first quarter of 2013 with retrospective application required. It did not have an impact on VF’s Consolidated Financial Statements.

In February 2013, the FASB issued guidance requiring an entity to provide information about the amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. The guidance became effective in the first quarter of 2013, and has been reflected in the notes to Consolidated Financial Statements.

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Subsequent Events
3 Months Ended
Mar. 30, 2013
Subsequent Events

Note Q — Subsequent Events

On April 23, 2013, VF’s Board of Directors declared a quarterly cash dividend of $0.87 per share, payable on June 20, 2013 to shareholders of record on June 10, 2013.

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Inventories (Tables)
3 Months Ended
Mar. 30, 2013
Inventories
In thousands    March
2013
     December
2012
     March
2012
 

Finished products

   $ 1,161,302       $ 1,099,229       $ 1,267,073   

Work in process

     93,605         98,191         89,753   

Materials and supplies

     154,536         156,738         159,620   
  

 

 

    

 

 

    

 

 

 

Total inventories

   $ 1,409,443       $ 1,354,158       $ 1,516,446   
  

 

 

    

 

 

    

 

 

 
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Property, Plant and Equipment (Tables)
3 Months Ended
Mar. 30, 2013
Property, Plant and Equipment
In thousands    March
2013
     December
2012
     March
2012
 

Land

   $ 52,769       $ 54,264       $ 53,848   

Buildings and improvements

     896,555         862,288         772,563   

Machinery and equipment

     1,099,939         1,066,865         1,027,807   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, at cost

     2,049,263         1,983,417         1,854,218   

Less accumulated depreciation and amortization

     1,183,012         1,155,199         1,125,139   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, net

   $ 866,251       $ 828,218       $ 729,079   
  

 

 

    

 

 

    

 

 

 
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Intangible Assets (Tables)
3 Months Ended
Mar. 30, 2013
Intangible Assets
     Weighted
Average
Amortization
Period
          March 2013      December
2012
 
Dollars in thousands       Amortization Methods    Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 

Amortizable intangible assets:

                 

Customer relationships

     19 years       Accelerated    $ 613,600       $ 181,313       $ 432,287       $ 442,446   

License agreements

     24 years       Accelerated and straight-line      183,634         70,090         113,544         115,742   

Trademarks and other

     8 years       Straight-line      15,935         7,780         8,155         8,748   
              

 

 

    

 

 

 

Amortizable intangible assets, net

                 553,986         566,936   
              

 

 

    

 

 

 

Indefinite-lived intangible assets:

                 

Trademarks and trade names

                 2,343,715         2,350,122   
              

 

 

    

 

 

 

Intangible assets, net

               $ 2,897,701       $ 2,917,058   
              

 

 

    

 

 

 
Estimated Amortization Expense
Estimated amortization expense for the next five years is:

 

Year

   Estimated
Amortization  Expense
 

2013

   $ 45.6   

2014

   $ 44.1   

2015

   $ 42.1   

2016

   $ 40.8   

2017

   $ 39.5   
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Goodwill (Tables)
3 Months Ended
Mar. 30, 2013
Changes in Goodwill

Changes in goodwill are summarized by business segment as follows:

 

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

Balance, December 2012

   $ 1,422,492      $ 228,843      $ 58,747       $ 157,314       $ 142,361       $ 2,009,757   

Currency translation

     (7,259     (1,795     —           —           —           (9,054
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance, March 2013

   $ 1,415,233      $ 227,048      $ 58,747       $ 157,314       $ 142,361       $ 2,000,703   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
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Pension Plans (Tables)
3 Months Ended
Mar. 30, 2013
Components of Pension Cost

The components of pension cost for VF’s defined benefit plans were as follows:

 

     Three Months Ended
March
 
In thousands    2013     2012  

Service cost — benefits earned during the period

   $ 6,893      $ 5,811   

Interest cost on projected benefit obligations

     18,051        19,249   

Expected return on plan assets

     (23,682     (20,156

Amortization of deferred amounts:

    

Net deferred actuarial losses

     21,362        17,618   

Deferred prior service cost

     341        839   
  

 

 

   

 

 

 

Net periodic pension cost

   $ 22,965      $ 23,361   
  

 

 

   

 

 

 
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Business Segment Information (Tables)
3 Months Ended
Mar. 30, 2013
Financial Information for Reportable Segments

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

 

     Three Months Ended
March
 
In thousands    2013     2012  

Coalition revenues:

    

Outdoor & Action Sports

   $ 1,384,274      $ 1,263,967   

Jeanswear

     717,929        741,711   

Imagewear

     252,757        277,521   

Sportswear

     128,233        122,915   

Contemporary Brands

     103,727        126,904   

Other

     24,949        23,437   
  

 

 

   

 

 

 

Total coalition revenues

   $ 2,611,869      $ 2,556,455   
  

 

 

   

 

 

 

Coalition profit:

    

Outdoor & Action Sports

   $ 226,502      $ 201,700   

Jeanswear

     143,343        110,772   

Imagewear

     31,586        42,926   

Sportswear

     12,216        10,726   

Contemporary Brands

     12,576        14,858   

Other

     (2,657     (1,610
  

 

 

   

 

 

 

Total coalition profit

     423,566        379,372   

Corporate and other expenses

     (64,799     (63,524

Interest, net

     (20,518     (22,307
  

 

 

   

 

 

 

Income before income taxes

   $ 338,249      $ 293,541   
  

 

 

   

 

 

 
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Capital and Accumulated Other Comprehensive Income (Loss) (Tables)
3 Months Ended
Mar. 30, 2013
Deferred Components of Other Comprehensive Income (Loss) Reported in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity Net of Related Income Taxes

The deferred components of other comprehensive income (loss) are reported in accumulated other comprehensive income (loss) in stockholders’ equity, net of related income taxes, as follows:

 

In thousands    March
2013
    December
2012
    March
2012
 

Foreign currency translation

   $ (17,866   $ (4,068   $ (13,487

Defined benefit pension plans

     (407,679     (420,538     (345,193

Derivative financial instruments

     1,924        (29,430     (18,562

Marketable securities

     486        141        263   
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (423,135   $ (453,895   $ (376,979
  

 

 

   

 

 

   

 

 

 
Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) are as follows:

 

In thousands    Foreign
Currency
Translation
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
     Total  

Beginning balance, December 2012

   $ (4,068   $ (420,538   $ (29,430   $ 141       $ (453,895
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Other comprehensive income (loss) before reclassifications

     (13,798     —          33,684        345         20,231   

Amounts reclassified from accumulated other comprehensive income (loss)

     —          12,859        (2,330     —           10,529   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net other comprehensive income (loss)

     (13,798     12,859        31,354        345         30,760   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance, March 2013

   $ (17,866   $ (407,679   $ 1,924      $ 486       $ (423,135
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

Reclassifications out of accumulated other comprehensive income (loss) are as follows:

 

Details About Accumulated Other
Comprehensive Income (Loss) Components

  

Affected Line Item in the
Consolidated Statements
of Income (Loss)

   Amount Reclassified From Accumulated
Other Comprehensive Income (Loss)
Three Months Ended March 2013
 

Gains and losses on derivative financial instruments:

     

Foreign exchange contracts

   Net sales    $ (155

Foreign exchange contracts

   Cost of goods sold      3,858   

Foreign exchange contracts

   Other income (expense), net      1,092   

Interest rate contracts

   Interest expense      (957
     

 

 

 
   Total before tax      3,838   
   Tax benefit (expense)      (1,508
     

 

 

 
   Net of tax    $ 2,330   
     

 

 

 

Amortization of defined benefit pension plans:

     

Net deferred actuarial losses

   (a)    $ (21,362

Deferred prior service cost

   (a)      (341
     

 

 

 
   Total before tax      (21,703
   Tax benefit (expense)      8,844   
     

 

 

 
   Net of tax      (12,859
     

 

 

 

Total reclassifications for the period

   Net of tax    $ (10,529
     

 

 

 

 

(a) 

These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note H for additional details).

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Stock-based Compensation (Tables)
3 Months Ended
Mar. 30, 2013
Schedule of Assumption Used And Resulting Weighted Average Fair Value of Stock Option Granted

The grant date fair value of each option award is calculated using a lattice option–pricing valuation model, which incorporates a range of assumptions for inputs as follows:

 

     Three Months Ended
     March 2013   March 2012

Expected volatility

   24% to 29%   27% to 31%

Weighted average expected volatility

   26.6%   30%

Expected term (in years)

   5.6 to 7.4   5.6 to 7.5

Dividend yield

   2.3%   2.5%

Risk-free interest rate

   0.1% to 2.0%   0.1% to 2.1%

Weighted average grant date fair value

   $32.25   $33.44
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Earnings Per Share (Tables)
3 Months Ended
Mar. 30, 2013
Schedule of Earnings Per Share Basic and Diluted
     Three Months Ended
March
 
In thousands, except per share amounts    2013      2012  

Earnings per share — basic:

     

Net income

   $ 270,417       $ 215,227   

Net income attributable to noncontrolling interests

     —           (11
  

 

 

    

 

 

 

Net income attributable to VF Corporation

   $ 270,417       $ 215,216   
  

 

 

    

 

 

 

Weighted average common shares outstanding

     110,068         110,527   
  

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 2.46       $ 1.95   
  

 

 

    

 

 

 

Earnings per share — diluted:

     

Net income attributable to VF Corporation

   $ 270,417       $ 215,216   
  

 

 

    

 

 

 

Weighted average common shares outstanding

     110,068         110,527   

Incremental shares from stock options and other dilutive securities

     1,906         2,223   
  

 

 

    

 

 

 

Adjusted weighted average common shares outstanding

     111,974         112,750   
  

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 2.41       $ 1.91   
  

 

 

    

 

 

 
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Fair Value Measurements (Tables)
3 Months Ended
Mar. 30, 2013
Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis

The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis:

 

    

Total
FairValue

     Fair Value Measurement Using (a)  
In thousands       Level 1      Level 2      Level 3  

March 2013

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 39,526       $ 39,526       $ —         $ —     

Time deposits

     27,007         27,007         —           —     

Derivative instruments

     48,817         —           48,817         —     

Investment securities

     207,464         179,163         28,301         —     

Other marketable securities

     4,915         4,915         —           —     

Financial liabilities:

           

Derivative instruments

     9,875         —           9,875         —     

Deferred compensation

     252,530         —           252,530         —     

December 2012

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 181,635       $ 181,635       $ —        $ —     

Time deposits

     17,042         17,042         —          —     

Derivative instruments

     16,153         —           16,153         —     

Investment securities

     188,307         157,230         31,077         —     

Other marketable securities

     4,513         4,513         —          —     

Financial liabilities:

           

Derivative instruments

     29,468         —           29,468         —     

Deferred compensation

     230,733         —           230,733         —     

 

(a) 

There were no transfers among the levels within the fair value hierarchy during the first quarter of 2013 or the year ended December 2012.

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Derivative Financial Instruments and Hedging Activities (Tables)
3 Months Ended
Mar. 30, 2013
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    March
2013
     December
2012
     March
2012
     March
2013
     December
2012
     March
2012
 

Foreign exchange contracts designated as hedging instruments

   $ 48,156       $ 15,847       $ 25,568       $ 8,933       $ 27,267       $ 13,598   

Foreign exchange contracts dedesignated as hedging instruments

     571         15         335         864         2,160         1,070   

Foreign exchange contracts not designated as hedging instruments

     90         291         132         78         41         265   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 48,817       $ 16,153       $ 26,035       $ 9,875       $ 29,468       $ 14,933   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
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    March
2013
    December
2012
    March
2012
 

Other current assets

   $ 36,830      $ 13,629      $ 23,874   

Accrued liabilities (current)

     (8,018     (22,013     (13,315

Other assets (noncurrent)

     11,987        2,524        2,161   

Other liabilities (noncurrent)

     (1,857     (7,455     (1,618
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:

 

In thousands    Gain (Loss) on Derivatives
Recognized in OCI
Three Months Ended March
 

Cash Flow Hedging Relationships

   2013     2012  

Foreign exchange

   $ 55,493      $ (7,711
  

 

 

   

 

 

 

Total

   $ 55,493      $ (7,711
  

 

 

   

 

 

 
In thousands    Gain (Loss) Reclassified from
Accumulated OCI into Income
Three  Months Ended March
 

Location of Gain (Loss)

   2013     2012  

Net sales

   $ (155     704   

Cost of goods sold

     3,858        314   

Other income (expense), net

     1,092        (667

Interest expense

     (957     (911
  

 

 

   

 

 

 

Total

   $ 3,838      $ (560
  

 

 

   

 

 

 
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:

 

    

Location of Gain (Loss) on Derivatives

Recognized in Income

   Gain (Loss) on Derivatives Recognized in Income
Three Months Ended March
 

Derivatives Not Designated as Hedges

      2013      2012  

Foreign exchange

   Other income (expense), net    $ 1,269       $ 955  
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Acquisitions and Dispositions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Apr. 30, 2012
Business Acquisition [Line Items]
Percentage of ownership interest sold 80.00%
Gain on sale of business $ 42
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Sale of Accounts Receivable - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
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 149.1 127.4 156.6
Sale of accounts receivable 298.1
Funding fee $ 0.4
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Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Inventories [Line Items]
Finished products $ 1,161,302 $ 1,099,229 $ 1,267,073
Work in process 93,605 98,191 89,753
Materials and supplies 154,536 156,738 159,620
Total inventories $ 1,409,443 $ 1,354,158 $ 1,516,446
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Property Plant and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost $ 2,049,263 $ 1,983,417 $ 1,854,218
Less accumulated depreciation and amortization 1,183,012 1,155,199 1,125,139
Property, plant and equipment, net 866,251 828,218 729,079
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost 52,769 54,264 53,848
Building and Improvement
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost 896,555 862,288 772,563
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost $ 1,099,939 $ 1,066,865 $ 1,027,807
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Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Mar. 30, 2013
Customer Relationships
Dec. 29, 2012
Customer Relationships
Mar. 30, 2013
Licensing Agreements
Dec. 29, 2012
Licensing Agreements
Mar. 30, 2013
Trademarks and other
Dec. 29, 2012
Trademarks and other
Intangible Assets by Major Class [Line Items]
Amortizable intangible assets, Amortization Method Accelerated Accelerated and straight-line Straight-line
Intangible assets, net $ 2,897,701 $ 2,917,058 $ 2,956,312
Amortizable intangible assets, Weighted Average Amortization Period (in years) 19 years 24 years 8 years
Amortizable intangible assets, Cost 613,600 183,634 15,935
Amortizable intangible assets, Accumulated Amortization 181,313 70,090 7,780
Amortizable intangible assets, Net Carrying Amount 553,986 566,936 432,287 442,446 113,544 115,742 8,155 8,748
Indefinite-lived intangible assets, Trademarks and trade names $ 2,343,715 $ 2,350,122
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Intangible Assets - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Schedule of Actual and Estimated Amortization Expense [Line Items]
Amortization of intangible assets $ 11,525 $ 12,181
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Estimated Amortization Expense (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Schedule Of Estimated Future Amortization Expense [Line Items]
Estimated amortization expense, 2013 $ 45.6
Estimated amortization expense, 2014 44.1
Estimated amortization expense, 2015 42.1
Estimated amortization expense, 2016 40.8
Estimated amortization expense, 2017 $ 39.5
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Changes in Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Goodwill [Line Items]
Goodwill, beginning balance $ 2,009,757 $ 2,018,839
Currency translation (9,054)
Goodwill, ending balance 2,000,703 2,018,839
Outdoor & Action Sports
Goodwill [Line Items]
Goodwill, beginning balance 1,422,492
Currency translation (7,259)
Goodwill, ending balance 1,415,233
Jeanswear
Goodwill [Line Items]
Goodwill, beginning balance 228,843
Currency translation (1,795)
Goodwill, ending balance 227,048
Imagewear
Goodwill [Line Items]
Goodwill, beginning balance 58,747
Currency translation   
Goodwill, ending balance 58,747
Sportswear
Goodwill [Line Items]
Goodwill, beginning balance 157,314
Currency translation   
Goodwill, ending balance 157,314
Contemporary Brands
Goodwill [Line Items]
Goodwill, beginning balance 142,361
Currency translation   
Goodwill, ending balance $ 142,361
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Goodwill - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Outdoor & Action Sports
Goodwill [Line Items]
Cumulative impairment charges $ 43.4 $ 43.4
Sportswear
Goodwill [Line Items]
Cumulative impairment charges 58.5 58.5
Contemporary Brands
Goodwill [Line Items]
Cumulative impairment charges $ 195.2 $ 195.2
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Components of Pension Cost (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost - benefits earned during the period $ 6,893 $ 5,811
Interest cost on projected benefit obligations 18,051 19,249
Expected return on plan assets (23,682) (20,156)
Amortization of deferred amounts, net deferred actuarial losses 21,362 17,618
Amortization of deferred amounts, deferred prior service cost 341 839
Net periodic pension cost $ 22,965 $ 23,361
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Pension Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan contributed $ 109.8
Defined benefit pension plan, discretionary contribution 100
Defined benefit pension plan additional contributions during the remainder of the year $ 11
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Financial Information for Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Segment Reporting Information [Line Items]
Total revenues $ 2,611,869 $ 2,556,455
Coalition profit 423,566 379,372
Corporate and other expenses (64,799) (63,524)
Interest, net (20,518) (22,307)
Income before income taxes 338,249 293,541
Outdoor & Action Sports
Segment Reporting Information [Line Items]
Coalition revenues 1,384,274 1,263,967
Coalition profit 226,502 201,700
Jeanswear
Segment Reporting Information [Line Items]
Coalition revenues 717,929 741,711
Coalition profit 143,343 110,772
Imagewear
Segment Reporting Information [Line Items]
Coalition revenues 252,757 277,521
Coalition profit 31,586 42,926
Sportswear
Segment Reporting Information [Line Items]
Coalition revenues 128,233 122,915
Coalition profit 12,216 10,726
Contemporary Brands
Segment Reporting Information [Line Items]
Coalition revenues 103,727 126,904
Coalition profit 12,576 14,858
Other Net
Segment Reporting Information [Line Items]
Coalition revenues 24,949 23,437
Coalition profit $ (2,657) $ (1,610)
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Capital and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Mar. 30, 2013
Mar. 31, 2012
Class of Stock [Line Items]
Treasury shares restored as unissued status 19,000,000
Treasury shares 2,530,401 4,240,051 21,462,952
Common Stock, stated value $ 1 $ 1 $ 1
Number of common stock shares held in connection with deferred compensation plans 187,456 183,176 239,345
Common Stock held in trust in connection with deferred compensation plans $ 8.8 $ 8.5 $ 11.2
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Deferred Components of Other Comprehensive Income (Loss) Reported in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity Net of Related Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation $ (17,866) $ (4,068) $ (13,487)
Defined benefit pension plans (407,679) (420,538) (345,193)
Derivative financial instruments 1,924 (29,430) (18,562)
Marketable securities 486 141 263
Accumulated other comprehensive income (loss) $ (423,135) $ (453,895) $ (376,979)
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Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance $ (453,895)
Other comprehensive income (loss) before reclassifications 20,231
Amounts reclassified from accumulated other comprehensive income (loss) 10,529
Net other comprehensive income (loss) 30,760 44,498
Ending balance (423,135) (376,979)
Accumulated Translation Adjustment
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance (4,068)
Other comprehensive income (loss) before reclassifications (13,798)
Net other comprehensive income (loss) (13,798)
Ending balance (17,866)
Accumulated Defined Benefit Plans Adjustment
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance (420,538)
Amounts reclassified from accumulated other comprehensive income (loss) 12,859
Net other comprehensive income (loss) 12,859
Ending balance (407,679)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance (29,430)
Other comprehensive income (loss) before reclassifications 33,684
Amounts reclassified from accumulated other comprehensive income (loss) (2,330)
Net other comprehensive income (loss) 31,354
Ending balance 1,924
Accumulated Net Unrealized Investment Gain (Loss)
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance 141
Other comprehensive income (loss) before reclassifications 345
Net other comprehensive income (loss) 345
Ending balance $ 486
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Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Other Comprehensive Income Loss Reclassification Adjustment [Line Items]
Gains and losses on derivative financial instruments $ 3,838
Gains and losses on derivative financial instruments tax (1,508)
Gains and losses on derivative financial instruments after tax 2,330
Net deferred actuarial losses (21,362) [1] (17,618)
Deferred prior service cost (341) [1] (839)
Amortization of defined benefit pension plans actuarial loss and service cost before tax (21,703)
Amortization of defined benefit pension plans actuarial loss and service cost tax 8,844
Amortization of defined benefit pension plans actuarial loss and service cost after tax (12,859)
Total reclassification for the period (10,529)
Foreign Exchange Contract | Net sales
Other Comprehensive Income Loss Reclassification Adjustment [Line Items]
Gains and losses on derivative financial instruments (155)
Foreign Exchange Contract | Cost of goods sold
Other Comprehensive Income Loss Reclassification Adjustment [Line Items]
Gains and losses on derivative financial instruments 3,858
Foreign Exchange Contract | Other income (expense), net
Other Comprehensive Income Loss Reclassification Adjustment [Line Items]
Gains and losses on derivative financial instruments 1,092
Interest Rate Contract | Interest expense
Other Comprehensive Income Loss Reclassification Adjustment [Line Items]
Gains and losses on derivative financial instruments $ (957)
[1] These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note H for additional details).
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Stock-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period 884,308
Exercise price of options granted $ 161.95
Share based compensation vesting period 3 years
Fair market value of Common Stock at the date the units were granted $ 161.95
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation vesting period 4 years
Nonperformance-based restricted stock units granted in period 74,500
Fair market value of Common Stock at the date the units were granted, per share $ 151.89
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based restricted stock units granted in period 180,925
Award expiration period from grant date 3 years
Baseline profitability goal period 3 years
Percentage of targets award adjusted to actual number of shares earned 25.00%
Performance-Based Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock to be issued for each restricted stock unit granted 0
Performance-Based Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock to be issued for each restricted stock unit granted 2
Nonperformance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation vesting period 4 years
Nonperformance-based restricted stock units granted in period 38,500
Number of shares of common stock to be issued for each restricted stock unit granted 1
Fair market value of Common Stock at the date the units were granted, per share $ 151.89
Board of Directors
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 | Nonperformance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based restricted stock units granted in period 4,081
Award expiration period from grant date 1 year
Fair market value of Common Stock at the date the units were granted, per share $ 161.95
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Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Detail) (USD $)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected volatility, minimum 24.00% 27.00%
Expected volatility, maximum 29.00% 31.00%
Weighted average expected volatility 26.60% 30.00%
Dividend yield 2.30% 2.50%
Risk-free interest rate, minimum 0.10% 0.10%
Risk-free interest rate, maximum 2.00% 2.10%
Weighted average grant date fair value $ 32.25 $ 33.44
Minimum
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected term 5 years 7 months 6 days 5 years 7 months 6 days
Maximum
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected term 7 years 4 months 2 days 7 years 6 months
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Income Taxes - Additional information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Income Taxes [Line Items]
Effective income tax rate 20.10% 26.70%
Net discrete tax Benefits $ 13.5
Tax benefit related to retroactive extension of tax credits 8.3
Realization of unrecognized tax benefits 5.6
Tax reduction due to discrete items 4.00%
Decrease in unrecognized tax benefits and associated interest primarily due to the audit settlements 2.3
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate 119.4
Reduction in income tax expenses 41.4
Possible decrease in unrecognized income tax benefits $ 12.5
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Earnings Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Earnings per share - basic:
Net income $ 270,417 $ 215,227
Net income attributable to noncontrolling interests (11)
Net income attributable to VF Corporation 270,417 215,216
Weighted average common shares outstanding 110,068 110,527
Earnings per common share attributable to VF Corporation common stockholders $ 2.46 $ 1.95
Earnings per share - diluted:
Net income attributable to VF Corporation $ 270,417 $ 215,216
Weighted average common shares outstanding 110,068 110,527
Incremental shares from stock options and other dilutive securities 1,906 2,223
Adjusted weighted average common shares outstanding 111,974 112,750
Earnings per common share attributable to VF Corporation common stockholders $ 2.41 $ 1.91
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Earnings Per Share - Additional information (Detail)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Stock Options
Earnings Per Share Disclosure [Line Items]
Stock options excluded from computation of earnings per share 0.9 0.9
Performance-Based | Restricted Stock Units (RSUs)
Earnings Per Share Disclosure [Line Items]
Stock options excluded from computation of earnings per share 0.4 0.4
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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
3 Months Ended 12 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds $ 39,526 $ 181,635
Cash equivalents, time deposits 27,007 17,042
Derivative instruments, assets 48,817 16,153
Investment securities 207,464 188,307
Other marketable securities 4,915 4,513
Derivative instruments, liabilities 9,875 29,468
Deferred compensation 252,530 230,733
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 39,526 [1] 181,635 [1]
Cash equivalents, time deposits 27,007 [1] 17,042 [1]
Investment securities 179,163 [1] 157,230 [1]
Other marketable securities 4,915 [1] 4,513 [1]
Significant Other Observable Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative instruments, assets 48,817 [1] 16,153 [1]
Investment securities 28,301 [1] 31,077 [1]
Derivative instruments, liabilities 9,875 [1] 29,468 [1]
Deferred compensation $ 252,530 [1] $ 230,733 [1]
[1] There were no transfers among the levels within the fair value hierarchy during the first quarter of 2013 or the year ended December 2012.
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Fair Value Measurements - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Fair Value, Measurement Inputs, Disclosure [Line Items]
Long-term debt, carrying value $ 1,831.4 $ 1,832
Long-term debt, fair value $ 2,051.7 $ 2,111.4
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Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Mar. 30, 2013
Maximum
Mar. 31, 2012
Maximum
Mar. 30, 2013
Interest Rate Swap Derivative Contracts In 2011
Mar. 30, 2013
Interest Rate Swap Derivative Contracts In 2003
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional amount of foreign currency derivatives $ 1,900,000,000 $ 1,900,000,000 $ 1,400,000,000
Higher derivative maturity range by months 24 months
Miscellaneous Income (Expense) for derivatives designated as hedging instruments 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 26,800,000
Remaining pretax deferred net loss in Accumulated OCI $ 38,500,000
Maturity date, notes 2021 2033
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Outstanding Derivatives on Individual Contract Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains $ 48,817 $ 16,153 $ 26,035
Fair Value of Derivatives with Unrealized Losses 9,875 29,468 14,933
Foreign exchange contracts designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 48,156 15,847 25,568
Fair Value of Derivatives with Unrealized Losses 8,933 27,267 13,598
Foreign exchange contracts dedesignated as hedging
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 571 15 335
Fair Value of Derivatives with Unrealized Losses 864 2,160 1,070
Foreign exchange contracts not designated as hedging
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Fair Value of Derivatives with Unrealized Gains 90 291 132
Fair Value of Derivatives with Unrealized Losses $ 78 $ 41 $ 265
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Outstanding Derivatives Classified as Current or Noncurrent Based on Derivatives' Maturity Dates (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Other current assets $ 36,830 $ 13,629 $ 23,874
Accrued liabilities (current) (8,018) (22,013) (13,315)
Other assets (noncurrent) 11,987 2,524 2,161
Other liabilities (noncurrent) $ (1,857) $ (7,455) $ (1,618)
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Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income $ 2,330
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI 55,493 (7,711)
Gain (Loss) Reclassified from Accumulated OCI into Income 3,838 (560)
Cash Flow Hedging | Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (155) 704
Cash Flow Hedging | Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 3,858 314
Cash Flow Hedging | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 1,092 (667)
Cash Flow Hedging | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (957) (911)
Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI $ 55,493 $ (7,711)
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Hedges Included in Consolidated Statements of Income (Detail) (Foreign exchange contracts not designated as hedging, Fair Value Hedging, Other income (expense), net, Foreign Exchange Contract, USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Foreign exchange contracts not designated as hedging | Fair Value Hedging | Other income (expense), net | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in Income $ 1,269 $ 955
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Subsequent Events - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 30, 2013
Subsequent Event [Line Items]
Dividends declared date Apr 23, 2013
Cash dividend $ 0.87
Dividends payable date Jun 20, 2013
Dividends record date Jun 10, 2013
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