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Document and Entity Information
6 Months Ended
Jun. 29, 2013
Jul. 27, 2013
Document Information [Line Items]
Document Type 10-Q
Amendment Flag false
Document Period End Date Jun 29, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q2
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 109,919,168
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Current assets
Cash and equivalents $ 320,112 $ 597,461 $ 330,512
Accounts receivable, less allowance for doubtful accounts of: June 2013 - $52,500; Dec. 2012 - $48,998; June 2012 - $49,653 1,060,778 1,222,345 1,033,835
Inventories 1,522,809 1,354,158 1,570,298
Other current assets 394,008 275,619 405,164
Total current assets 3,297,707 3,449,583 3,339,809
Property, plant and equipment 883,197 828,218 735,827
Intangible assets 2,889,106 2,917,058 2,928,311
Goodwill 2,001,375 2,009,757 1,996,355
Other assets 478,182 428,405 425,767
Total assets 9,549,567 9,633,021 9,426,069
Current liabilities
Short-term borrowings 46,350 12,559 681,835
Current portion of long-term debt 402,949 402,873 2,801
Accounts payable 555,719 562,638 506,742
Accrued liabilities 639,280 754,142 576,661
Total current liabilities 1,644,298 1,732,212 1,768,039
Long-term debt 1,427,823 1,429,166 1,830,473
Other liabilities 1,293,389 1,346,018 1,303,505
Commitments and contingencies         
Stockholders' equity
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at June 2013, December 2012 or June 2012         
Common Stock, stated value $1; shares authorized, 300,000,000; shares outstanding; June 2013 - 109,709,656; December 2012 - $110,204,734; June 2012 - 109,438,153 109,710 110,205 109,438
Additional paid-in capital 2,666,117 2,527,868 2,421,564
Accumulated other comprehensive income (loss) (440,871) (453,895) (416,386)
Retained earnings 2,849,101 2,941,447 2,409,436
Total stockholders' equity 5,184,057 5,125,625 4,524,052
Total liabilities and stockholders' equity $ 9,549,567 $ 9,633,021 $ 9,426,069
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Accounts receivable, allowance for doubtful accounts $ 52,500 $ 48,998 $ 49,653
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 109,709,656 110,204,734 109,438,153
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Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Net sales $ 2,194,727 $ 2,115,629 $ 4,776,957 $ 4,643,046
Royalty income 25,684 26,157 55,323 55,195
Total revenues 2,220,411 2,141,786 4,832,280 4,698,241
Costs and operating expenses
Cost of goods sold 1,143,358 1,155,412 2,498,635 2,544,278
Marketing, administrative and general expenses 875,719 822,389 1,774,583 1,675,876
Costs and Expenses, Total 2,019,077 1,977,801 4,273,218 4,220,154
Operating income 201,334 163,985 559,062 478,087
Interest income 815 1,188 1,305 2,226
Interest expense (21,534) (23,593) (42,542) (46,938)
Other income (expense), net (1,512) 41,557 (473) 43,303
Income before income taxes 179,103 183,137 517,352 476,678
Income taxes 40,829 27,712 108,661 106,026
Net income 138,274 155,425 408,691 370,652
Net (income) loss attributable to noncontrolling interests (128) (139)
Net income attributable to VF Corporation common stockholders $ 138,274 $ 155,297 $ 408,691 $ 370,513
Earnings per common share attributable to VF Corporation common stockholders
Basic $ 1.27 $ 1.42 $ 3.73 $ 3.37
Diluted $ 1.24 $ 1.4 $ 3.66 $ 3.31
Cash dividends per common share $ 0.87 $ 0.72 $ 1.74 $ 1.44
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Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Net income $ 138,274 $ 155,425 $ 408,691 $ 370,652
Foreign currency translation
Gains (losses) arising during the period (22,076) (79,722) (39,021) (30,228)
Less income tax effect (2,774) 11,956 373 134
Defined benefit pension plans
Amortization of net deferred actuarial losses 21,326 [1] 17,621 42,688 [1] 35,239
Amortization of prior service cost 316 [1] 838 657 [1] 1,677
Less income tax effect (8,748) (7,350) (17,592) (14,307)
Derivative financial instruments
Gains (losses) arising during the period (3,093) 26,386 52,400 18,675
Less income tax effect 1,215 (10,185) (20,594) (7,213)
Reclassification to net income for (gains) losses realized (5,298) 2,575 (9,136) 3,135
Less income tax effect 2,082 (991) 3,590 (1,207)
Marketable securities
Gains (losses) arising during the period (815) (535) (470) (814)
Less income tax effect 129 129
Other comprehensive income (loss) (17,736) (39,407) 13,024 5,091
Comprehensive income 120,538 116,018 421,715 375,743
Comprehensive (income) attributable to noncontrolling interests (128) (139)
Comprehensive income attributable to VF Corporation $ 120,538 $ 115,890 $ 421,715 $ 375,604
[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
6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Operating activities
Net income $ 408,691 $ 370,652
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation 73,588 70,504
Amortization of intangible assets 22,992 24,221
Other amortization 20,135 16,046
Stock-based compensation 47,879 46,516
Provision for doubtful accounts 9,208 7,303
Pension expense in excess of (less than) contributions (65,994) 38,297
Gain on sale of business (41,745)
Other, net 57,074 2,143
Changes in operating assets and liabilities, net of sale of business:
Accounts receivable 133,830 71,072
Inventories (178,511) (136,497)
Other current assets (59,643) (45,419)
Accounts payable (3,104) (126,875)
Accrued compensation (38,851) (65,615)
Accrued income taxes (105,035) (84,510)
Accrued liabilities (24,233) (75,738)
Other assets and liabilities (6,613) 2,774
Cash provided by operating activities 291,413 73,129
Investing activities
Capital expenditures (155,454) (118,980)
Proceeds from sale of business 68,264
Software purchases (28,715) (7,792)
Other, net (4,307) 3,854
Cash used by investing activities (188,476) (54,654)
Financing activities
Net increase in short-term borrowings 34,783 400,166
Payments on long-term debt (1,417) (1,398)
Purchases of Common Stock (281,586) (299,096)
Cash dividends paid (191,460) (158,581)
Proceeds from issuance of Common Stock, net 26,069 7,180
Tax benefits of stock option exercises 37,933 25,243
Cash used by financing activities (375,678) (26,486)
Effect of foreign currency rate changes on cash and equivalents (4,608) (2,705)
Net change in cash and equivalents (277,349) (10,716)
Cash and equivalents - beginning of year 597,461 341,228
Cash and equivalents - end of period $ 320,112 $ 330,512
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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 408,691 408,691
Dividends on Common Stock (191,460)
Purchase of treasury stock (1,700) (278,176)
Stock compensation plans, net 1,212 138,249 (29,852)
Common Stock held in trust for deferred compensation plans (7) (1,549)
Foreign currency translation (38,648)
Defined benefit pension plans (25,753) 25,753
Derivative financial instruments 26,260
Marketable securities (341)
Ending balance at Jun. 29, 2013 $ 5,184,057 $ 109,710 $ 2,666,117 $ (440,871) $ 2,849,101
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Basis of Presentation
6 Months Ended
Jun. 29, 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 June 2013, December 2012 and June 2012 relate to the fiscal periods ended on June 29, 2013, December 29, 2012 and June 30, 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 and six months ended June 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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Disposition
6 Months Ended
Jun. 29, 2013
Disposition

Note B — Disposition

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
6 Months Ended
Jun. 29, 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 June 2013, December 2012 and June 2012, accounts receivable had been reduced by $118.6 million, $127.4 million and $135.5 million, respectively, related to this program. During the first six months of 2013, VF sold $580.0 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 $0.8 million for the first six months of 2013. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.

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Inventories
6 Months Ended
Jun. 29, 2013
Inventories

Note D — Inventories

 

In thousands    June
2013
     December
2012
     June
2012
 

Finished products

   $ 1,270,901       $ 1,099,229       $ 1,305,605   

Work in process

     99,776         98,191         103,179   

Materials and supplies

     152,132         156,738         161,514   
  

 

 

    

 

 

    

 

 

 

Total inventories

   $ 1,522,809       $ 1,354,158       $ 1,570,298   
  

 

 

    

 

 

    

 

 

 
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Property, Plant and Equipment
6 Months Ended
Jun. 29, 2013
Property, Plant and Equipment

Note E — Property, Plant and Equipment

 

In thousands    June
2013
     December
2012
     June
2012
 

Land

   $ 52,764       $ 54,264       $ 52,706   

Buildings and improvements

     915,805         862,288         767,536   

Machinery and equipment

     1,119,890         1,066,865         1,032,629   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, at cost

     2,088,459         1,983,417         1,852,871   

Less accumulated depreciation and amortization

     1,205,262         1,155,199         1,117,044   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, net

   $ 883,197       $ 828,218       $ 735,827   
  

 

 

    

 

 

    

 

 

 
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Intangible Assets
6 Months Ended
Jun. 29, 2013
Intangible Assets

Note F — Intangible Assets

 

Dollars in thousands    Weighted
Average
Amortization
Period
    

Amortization methods

   June 2013      December 2012  
         Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 
                 
                 

Amortizable intangible assets:

                 

Customer relationships

     19 years       Accelerated    $ 614,270       $ 190,543       $ 423,727       $ 442,446   

License agreements

     24 years       Accelerated and straight-line      183,738         72,158         111,580         115,742   

Trademarks and other

     8 years       Straight-line      16,016         8,425         7,591         8,748   
              

 

 

    

 

 

 

Amortizable intangible assets, net

                 542,898         566,936   
              

 

 

    

 

 

 

Indefinite-lived intangible assets:

                 

Trademarks and trade names

                 2,346,208         2,350,122   
              

 

 

    

 

 

 

Intangible assets, net

               $ 2,889,106       $ 2,917,058   
              

 

 

    

 

 

 

Amortization expense for the second quarter and first six months of 2013 was $11.5 million and $23.0 million, respectively. Estimated amortization expense for the next five years is:

 

Year

   Estimated
Amortization Expense
 

2013

   $ 45.7   

2014

   $ 44.1   

2015

   $ 42.1   

2016

   $ 40.8   

2017

   $ 39.5   
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Goodwill
6 Months Ended
Jun. 29, 2013
Goodwill

Note G — Goodwill

Changes in goodwill are summarized by business segments 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

     (5,193     (3,189     —          —          —          (8,382
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance, June 2013

   $ 1,417,299      $ 225,654      $ 58,747       $ 157,314       $ 142,361       $ 2,001,375   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

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

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Pension Plans
6 Months Ended
Jun. 29, 2013
Pension Plans

Note H — Pension Plans

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

 

     Three Months Ended June     Six Months Ended June  
In thousands        2013             2012             2013             2012      

Service cost – benefits earned during the period

   $ 6,327      $ 5,794      $ 13,220      $ 11,605   

Interest cost on projected benefit obligations

     17,978        19,249        36,029        38,498   

Expected return on plan assets

     (23,628     (20,158     (47,310     (40,314

Amortization of deferred amounts:

        

Net deferred actuarial losses

     21,326        17,621        42,688        35,239   

Deferred prior service cost

     316        838        657        1,677   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension cost

   $ 22,319      $ 23,344      $ 45,284      $ 46,705   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

During the first half of 2013, VF contributed $111.3 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 $7.8 million of additional contributions during the remainder of 2013.

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Business Segment Information
6 Months Ended
Jun. 29, 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 June     Six Months Ended June  
In thousands    2013     2012     2013     2012  

Coalition revenues:

        

Outdoor & Action Sports

   $ 1,103,608      $ 1,039,974      $ 2,487,882      $ 2,303,941   

Jeanswear

     611,749        594,006        1,329,678        1,335,717   

Imagewear

     241,827        251,493        494,584        529,014   

Sportswear

     133,478        117,488        261,711        240,403   

Contemporary Brands

     98,614        107,947        202,341        234,851   

Other

     31,135        30,878        56,084        54,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition revenues

   $ 2,220,411      $ 2,141,786      $ 4,832,280      $ 4,698,241   
  

 

 

   

 

 

   

 

 

   

 

 

 

Coalition profit:

        

Outdoor & Action Sports

   $ 100,458      $ 82,469      $ 326,960      $ 284,169   

Jeanswear

     108,874        93,347        252,217        204,119   

Imagewear

     35,059        30,364        66,645        73,290   

Sportswear

     16,278        11,486        28,494        22,212   

Contemporary Brands

     7,878        11,992        20,454        26,850   

Other

     509        366        (2,148     (1,244
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition profit

     269,056        230,024        692,622        609,396   

Corporate and other expenses

     (69,234     (24,482     (134,033     (88,006

Interest, net

     (20,719     (22,405     (41,237     (44,712
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 179,103      $ 183,137      $ 517,352      $ 476,678   
  

 

 

   

 

 

   

 

 

   

 

 

 
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Capital and Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 29, 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 4,241,351 treasury shares at June 2013, 2,530,401 at December 2012 and 2,474,996 at June 2012. 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, 183,416 shares of Common Stock at June 2013, 187,456 shares at December 2012 and 234,301 shares at June 2012 were held in connection with deferred compensation plans. These shares, having a cost of $8.7 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    June
2013
    December
2012
    June
2012
 

Foreign currency translation

   $ (42,716   $ (4,068   $ (81,253

Defined benefit pension plans

     (394,785     (420,538     (334,084

Derivative financial instruments

     (3,170     (29,430     (777

Marketable securities

     (200     141        (272
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (440,871   $ (453,895   $ (416,386
  

 

 

   

 

 

   

 

 

 

 

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

 

     Three Months Ended June 2013  
In thousands    Foreign
Currency
Translation (a)
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
    Total  

Balance, March 2013

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) before reclassifications

     (24,850     —          (1,878     (686     (27,414

Amounts reclassified from accumulated other comprehensive income (loss)

     —          12,894        (3,216     —          9,678   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net other comprehensive income (loss)

     (24,850     12,894        (5,094     (686     (17,736
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, June 2013

   $ (42,716   $ (394,785   $ (3,170   $ (200   $ (440,871
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended June 2013  
In thousands    Foreign
Currency
Translation
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
    Total  

Balance, December 2012

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) before reclassifications

     (38,648     —          31,806        (341     (7,183

Amounts reclassified from accumulated other comprehensive income (loss)

     —          25,753        (5,546     —          20,207   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net other comprehensive income (loss)

     (38,648     25,753        26,260        (341     13,024   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, June 2013

   $ (42,716   $ (394,785   $ (3,170   $ (200   $ (440,871
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

In thousands        Amount Reclassified From Accumulated  

Details About Accumulated Other
Comprehensive Income (Loss) Components

   Affected Line Item in  the
Consolidated Statements
of Income (Loss)
  Other Comprehensive Income (Loss)  
     Three Months
Ended June 2013
    Six Months
Ended
June 2013
 

Gains and losses on derivative financial instruments:

      

Foreign exchange contracts

   Net sales   $ 1,378      $ 1,223   

Foreign exchange contracts

   Cost of goods sold     3,683        7,541   

Foreign exchange contracts

   Other income (expense), net     1,209        2,301   

Interest rate contracts

   Interest expense     (972     (1,929
    

 

 

   

 

 

 
   Total before tax     5,298        9,136   
   Tax benefit
(expense)
    (2,082     (3,590
    

 

 

   

 

 

 
   Net of tax   $ 3,216      $ 5,546   
    

 

 

   

 

 

 

Amortization of defined benefit pension plans:

      

Net deferred actuarial losses

   (b)   $ (21,326   $ (42,688

Deferred prior service cost

   (b)     (316     (657
    

 

 

   

 

 

 
   Total before tax     (21,642     (43,345
   Tax benefit
(expense)
    8,748        17,592   
    

 

 

   

 

 

 
   Net of tax     (12,894     (25,753
    

 

 

   

 

 

 

Total reclassifications for the period

   Net of tax   $ (9,678   $ (20,207
    

 

 

   

 

 

 

 

(a) 

Other comprehensive income (loss) for the three months ended June 2013 includes a loss of $21.8 million related to the first quarter of 2013. This out-of-period adjustment did not have a material impact on the current or previous reported quarter.

(b) 

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
6 Months Ended
Jun. 29, 2013
Stock-based Compensation

Note K — Stock-based Compensation

During the second quarter of 2013, VF did not grant any stock-based compensation awards.

During the first quarter 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:

 

     2013    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    $33.43

Also during the first quarter 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 stockholder 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 quarter 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 quarter 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 quarter 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
6 Months Ended
Jun. 29, 2013
Income Taxes

Note L — Income Taxes

The effective income tax rate for the first half of 2013 was 21.0% compared with 22.2% in the first half of 2012. The first six months of 2013 included net discrete tax benefits of $14.4 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 $6.9 million of tax benefits related to the realization of previously unrecognized tax benefits and interest. The net discrete tax benefits reduced the effective income tax rate for the first half of 2013 by 2.8% compared with a reduction of 4.3% in the first half of 2012. The remaining reduction in the effective income tax rate for the first half of 2013 compared with the 2012 period related primarily to a higher percentage of income in lower tax rate 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 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 six months of 2013, the amount of net unrecognized tax benefits and associated interest increased by $2.7 million to $119.8 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 $44.1 million related to the completion of audits and other settlements with tax authorities and the expiration of statutes of limitations, $15.0 million of which would reduce income tax expense.

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Earnings Per Share
6 Months Ended
Jun. 29, 2013
Earnings Per Share

Note M — Earnings Per Share

 

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

Earnings per share – basic:

          

Net income

   $ 138,274       $ 155,425      $ 408,691       $ 370,652   

Net (income) loss attributable to noncontrolling interests

     —           (128     —           (139
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income attributable to VF Corporation

   $ 138,274       $ 155,297      $ 408,691       $ 370,513   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average common shares outstanding

     109,274         109,216        109,671         109,874   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.27       $ 1.42      $ 3.73       $ 3.37   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per share – diluted:

          

Net income attributable to VF Corporation

   $ 138,274       $ 155,297      $ 408,691       $ 370,513   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average common shares outstanding

     109,274         109,216        109,671         109,874   

Incremental shares from stock options and other dilutive securities

     2,205         2,012        2,055         2,118   
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted weighted average common shares outstanding

     111,479         111,228        111,726         111,992   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.24       $ 1.40      $ 3.66       $ 3.31   
  

 

 

    

 

 

   

 

 

    

 

 

 

For the quarter ended June 2013, all outstanding options to purchase Common Stock were dilutive and included in the calculation of diluted earnings per share. For the quarter ended June 2012, outstanding options to purchase 0.9 million shares of Common Stock were excluded from the computations of diluted earnings per share because the effect of their inclusion would have been antidilutive. Outstanding options to purchase 0.5 and 0.9 million shares of Common Stock for the six month periods ended June 2013 and 2012, respectively, 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 three and six month periods ended June 2013 and June 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
6 Months Ended
Jun. 29, 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:

 

In thousands

   Total
Fair Value
     Fair Value Measurement Using (a)  
      Level 1      Level 2      Level 3  

June 2013

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 53,591       $ 53,591       $ —         $ —     

Time deposits

     77,011         77,011         —           —     

Derivative instruments

     42,243         —           42,243         —     

Investment securities

     203,114         178,541         24,573         —     

Other marketable securities

     4,100         4,100         —           —     

Financial liabilities:

           

Derivative instruments

     10,853         —           10,853         —     

Deferred compensation

     253,154         —           253,154         —     

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 six months of 2013 or the year ended December 2012.

The fair value of derivative instruments, which consist of forward foreign exchange contracts, is determined based on observable market inputs, including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. Investment securities are held in the Company’s deferred compensation plans and primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets. Investment securities also include collective trust funds (Level 2) that are valued based on the net asset values of the underlying assets.

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 June 2013 and December 2012, their carrying values approximated their fair values. Additionally, at June 2013 and December 2012, the carrying value of VF’s long–term debt, including the current portion, was $1,830.8 million and $1,832.0 million, respectively, compared with a fair value of $1,986.4 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
6 Months Ended
Jun. 29, 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 June 2013, December 2012 and June 2012 totaled $2.1 billion, $1.9 billion and $1.6 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 at their gross amounts:

 

     Fair Value of Derivatives with
Unrealized Gains
     Fair Value of Derivatives with
Unrealized Losses
 
In thousands    June
2013
     December
2012
     June
2012
     June
2013
     December
2012
     June
2012
 

Foreign exchange contracts designated as hedging instruments

   $ 41,472       $ 15,847       $ 56,894       $ 10,629       $ 27,267       $ 18,977   

Foreign exchange contracts dedesignated as hedging instruments

     355         15         170         133         2,160         2,427   

Foreign exchange contracts not designated as hedging instruments

     416         291         71         91         41         214   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 42,243       $ 16,153       $ 57,135       $ 10,853       $ 29,468       $ 21,618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Derivative instruments have not been offset in the Consolidated Balance Sheets and therefore are reported on a gross basis. Derivatives are classified as current or noncurrent based on their maturity dates, as follows:

 

In thousands    June
2013
    December
2012
    June
2012
 

Other current assets

   $ 33,463      $ 13,629      $ 50,313   

Accrued liabilities (current)

     (8,685     (22,013     (18,739

Other assets (noncurrent)

     8,780        2,524        6,822   

Other liabilities (noncurrent)

     (2,168     (7,455     (2,879

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 June
    Gain (Loss) on  Derivatives
Recognized in OCI
Six Months Ended June
 

Cash Flow Hedging Relationships

   2013     2012     2013     2012  

Foreign exchange

   $ (3,093   $ 26,386      $ 52,400      $ 18,675   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (3,093   $ 26,386      $ 52,400      $ 18,675   
  

 

 

   

 

 

   

 

 

   

 

 

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

Location of Gain (Loss)

       2013             2012             2013             2012      

Net sales

   $ 1,378      $ (2,484   $ 1,223      $ (1,780

Cost of goods sold

     3,683        283        7,541        597   

Other income (expense), net

     1,209        553        2,301        (114

Interest expense

     (972     (927     (1,929     (1,838
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 5,298      $ (2,575   $ 9,136      $ (3,135
  

 

 

   

 

 

   

 

 

   

 

 

 

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 associated with the ultimate collection of the related accounts receivable, during which time changes in the fair value of the derivative contracts are recognized directly in earnings. For the three and six month periods ended June 2013, VF recorded net gains of $0.8 million and $1.3 million, respectively, in other income (expense), net for derivatives dedesignated as hedging instruments, effectively offsetting the net remeasurement losses on the related assets and liabilities. For the three and six month periods ended June 2012, VF recorded net losses of $1.1 million and $1.9 million, respectively, 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, as well as intercompany and third party accounts receivable and payable. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are 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:

 

In thousands

        Gain (Loss) on Derivatives      Gain (Loss) on Derivatives  
     Location of Gain (Loss)    Recognized in Income      Recognized in Income  
     on Derivatives    Three Months Ended June      Six Months Ended June  

Derivatives Not Designated as Hedges

  

Recognized in Income

   2013      2012      2013      2012  

Foreign exchange

  

Other income (expense), net

   $ 2,729       $ 421       $ 3,998       $ 1,376   

Other Derivative Information

There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during the three and six months ended June 2013 and June 2012.

At June 2013, accumulated OCI included $21.9 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 $37.5 million at June 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 Issued Accounting Standards
6 Months Ended
Jun. 29, 2013
Recently Issued Accounting Standards

Note P — Recently Issued Accounting Standards

In July 2013, the FASB issued an update to their accounting guidance which requires unrecognized tax benefits to be netted with net operating loss or tax credit carryforwards in the Consolidated Balance Sheets if specific criteria are met. The guidance is effective January 2014 for interim and annual periods. The adoption of this accounting guidance is not expected to have an impact on VF’s Consolidated Financial Statements.

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Subsequent Events
6 Months Ended
Jun. 29, 2013
Subsequent Events

Note Q — Subsequent Events

On July 16, 2013, VF’s Board of Directors declared a quarterly cash dividend of $0.87 per share, payable on September 20, 2013 to stockholders of record on September 10, 2013.

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Inventories (Tables)
6 Months Ended
Jun. 29, 2013
Inventories
In thousands    June
2013
     December
2012
     June
2012
 

Finished products

   $ 1,270,901       $ 1,099,229       $ 1,305,605   

Work in process

     99,776         98,191         103,179   

Materials and supplies

     152,132         156,738         161,514   
  

 

 

    

 

 

    

 

 

 

Total inventories

   $ 1,522,809       $ 1,354,158       $ 1,570,298   
  

 

 

    

 

 

    

 

 

 
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Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 29, 2013
Property, Plant and Equipment
In thousands    June
2013
     December
2012
     June
2012
 

Land

   $ 52,764       $ 54,264       $ 52,706   

Buildings and improvements

     915,805         862,288         767,536   

Machinery and equipment

     1,119,890         1,066,865         1,032,629   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, at cost

     2,088,459         1,983,417         1,852,871   

Less accumulated depreciation and amortization

     1,205,262         1,155,199         1,117,044   
  

 

 

    

 

 

    

 

 

 

Property, plant and equipment, net

   $ 883,197       $ 828,218       $ 735,827   
  

 

 

    

 

 

    

 

 

 
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Intangible Assets (Tables)
6 Months Ended
Jun. 29, 2013
Intangible Assets
Dollars in thousands    Weighted
Average
Amortization
Period
    

Amortization methods

   June 2013      December 2012  
         Cost      Accumulated
Amortization
     Net
Carrying
Amount
     Net
Carrying
Amount
 
                 
                 

Amortizable intangible assets:

                 

Customer relationships

     19 years       Accelerated    $ 614,270       $ 190,543       $ 423,727       $ 442,446   

License agreements

     24 years       Accelerated and straight-line      183,738         72,158         111,580         115,742   

Trademarks and other

     8 years       Straight-line      16,016         8,425         7,591         8,748   
              

 

 

    

 

 

 

Amortizable intangible assets, net

                 542,898         566,936   
              

 

 

    

 

 

 

Indefinite-lived intangible assets:

                 

Trademarks and trade names

                 2,346,208         2,350,122   
              

 

 

    

 

 

 

Intangible assets, net

               $ 2,889,106       $ 2,917,058   
              

 

 

    

 

 

 
Estimated Amortization Expense

Estimated amortization expense for the next five years is:

 

Year

   Estimated
Amortization Expense
 

2013

   $ 45.7   

2014

   $ 44.1   

2015

   $ 42.1   

2016

   $ 40.8   

2017

   $ 39.5   
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Goodwill (Tables)
6 Months Ended
Jun. 29, 2013
Changes in Goodwill

Changes in goodwill are summarized by business segments 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

     (5,193     (3,189     —          —          —          (8,382
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance, June 2013

   $ 1,417,299      $ 225,654      $ 58,747       $ 157,314       $ 142,361       $ 2,001,375   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
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Pension Plans (Tables)
6 Months Ended
Jun. 29, 2013
Components of Pension Cost

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

 

     Three Months Ended June     Six Months Ended June  
In thousands        2013             2012             2013             2012      

Service cost – benefits earned during the period

   $ 6,327      $ 5,794      $ 13,220      $ 11,605   

Interest cost on projected benefit obligations

     17,978        19,249        36,029        38,498   

Expected return on plan assets

     (23,628     (20,158     (47,310     (40,314

Amortization of deferred amounts:

        

Net deferred actuarial losses

     21,326        17,621        42,688        35,239   

Deferred prior service cost

     316        838        657        1,677   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension cost

   $ 22,319      $ 23,344      $ 45,284      $ 46,705   
  

 

 

   

 

 

   

 

 

   

 

 

 
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Business Segment Information (Tables)
6 Months Ended
Jun. 29, 2013
Financial Information for Reportable Segments

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

 

     Three Months Ended June     Six Months Ended June  
In thousands    2013     2012     2013     2012  

Coalition revenues:

        

Outdoor & Action Sports

   $ 1,103,608      $ 1,039,974      $ 2,487,882      $ 2,303,941   

Jeanswear

     611,749        594,006        1,329,678        1,335,717   

Imagewear

     241,827        251,493        494,584        529,014   

Sportswear

     133,478        117,488        261,711        240,403   

Contemporary Brands

     98,614        107,947        202,341        234,851   

Other

     31,135        30,878        56,084        54,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition revenues

   $ 2,220,411      $ 2,141,786      $ 4,832,280      $ 4,698,241   
  

 

 

   

 

 

   

 

 

   

 

 

 

Coalition profit:

        

Outdoor & Action Sports

   $ 100,458      $ 82,469      $ 326,960      $ 284,169   

Jeanswear

     108,874        93,347        252,217        204,119   

Imagewear

     35,059        30,364        66,645        73,290   

Sportswear

     16,278        11,486        28,494        22,212   

Contemporary Brands

     7,878        11,992        20,454        26,850   

Other

     509        366        (2,148     (1,244
  

 

 

   

 

 

   

 

 

   

 

 

 

Total coalition profit

     269,056        230,024        692,622        609,396   

Corporate and other expenses

     (69,234     (24,482     (134,033     (88,006

Interest, net

     (20,719     (22,405     (41,237     (44,712
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 179,103      $ 183,137      $ 517,352      $ 476,678   
  

 

 

   

 

 

   

 

 

   

 

 

 
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Capital and Accumulated Other Comprehensive Income (Loss) (Tables)
6 Months Ended
Jun. 29, 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    June
2013
    December
2012
    June
2012
 

Foreign currency translation

   $ (42,716   $ (4,068   $ (81,253

Defined benefit pension plans

     (394,785     (420,538     (334,084

Derivative financial instruments

     (3,170     (29,430     (777

Marketable securities

     (200     141        (272
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (440,871   $ (453,895   $ (416,386
  

 

 

   

 

 

   

 

 

 
Changes in Accumulated Other Comprehensive Income (Loss)

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

 

     Three Months Ended June 2013  
In thousands    Foreign
Currency
Translation (a)
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
    Total  

Balance, March 2013

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) before reclassifications

     (24,850     —          (1,878     (686     (27,414

Amounts reclassified from accumulated other comprehensive income (loss)

     —          12,894        (3,216     —          9,678   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net other comprehensive income (loss)

     (24,850     12,894        (5,094     (686     (17,736
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, June 2013

   $ (42,716   $ (394,785   $ (3,170   $ (200   $ (440,871
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended June 2013  
In thousands    Foreign
Currency
Translation
    Defined
Benefit
Pension Plans
    Derivative
Financial
Instruments
    Marketable
Securities
    Total  

Balance, December 2012

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) before reclassifications

     (38,648     —          31,806        (341     (7,183

Amounts reclassified from accumulated other comprehensive income (loss)

     —          25,753        (5,546     —          20,207   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net other comprehensive income (loss)

     (38,648     25,753        26,260        (341     13,024   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, June 2013

   $ (42,716   $ (394,785   $ (3,170   $ (200   $ (440,871
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 
(a) 

Other comprehensive income (loss) for the three months ended June 2013 includes a loss of $21.8 million related to the first quarter of 2013. This out-of-period adjustment did not have a material impact on the current or previous reported quarter.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

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

 

In thousands        Amount Reclassified From Accumulated  

Details About Accumulated Other
Comprehensive Income (Loss) Components

   Affected Line Item in  the
Consolidated Statements
of Income (Loss)
  Other Comprehensive Income (Loss)  
     Three Months
Ended June 2013
    Six Months
Ended
June 2013
 

Gains and losses on derivative financial instruments:

      

Foreign exchange contracts

   Net sales   $ 1,378      $ 1,223   

Foreign exchange contracts

   Cost of goods sold     3,683        7,541   

Foreign exchange contracts

   Other income (expense), net     1,209        2,301   

Interest rate contracts

   Interest expense     (972     (1,929
    

 

 

   

 

 

 
   Total before tax     5,298        9,136   
   Tax benefit
(expense)
    (2,082     (3,590
    

 

 

   

 

 

 
   Net of tax   $ 3,216      $ 5,546   
    

 

 

   

 

 

 

Amortization of defined benefit pension plans:

      

Net deferred actuarial losses

   (b)   $ (21,326   $ (42,688

Deferred prior service cost

   (b)     (316     (657
    

 

 

   

 

 

 
   Total before tax     (21,642     (43,345
   Tax benefit
(expense)
    8,748        17,592   
    

 

 

   

 

 

 
   Net of tax     (12,894     (25,753
    

 

 

   

 

 

 

Total reclassifications for the period

   Net of tax   $ (9,678   $ (20,207
    

 

 

   

 

 

 

 

 

(b) 

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)
6 Months Ended
Jun. 29, 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:

 

     2013    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    $33.43
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Earnings Per Share (Tables)
6 Months Ended
Jun. 29, 2013
Schedule of Earnings Per Share Basic and Diluted
In thousands, except per share amounts    Three Months Ended June     Six Months Ended June  
     2013      2012     2013      2012  

Earnings per share – basic:

          

Net income

   $ 138,274       $ 155,425      $ 408,691       $ 370,652   

Net (income) loss attributable to noncontrolling interests

     —           (128     —           (139
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income attributable to VF Corporation

   $ 138,274       $ 155,297      $ 408,691       $ 370,513   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average common shares outstanding

     109,274         109,216        109,671         109,874   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.27       $ 1.42      $ 3.73       $ 3.37   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per share – diluted:

          

Net income attributable to VF Corporation

   $ 138,274       $ 155,297      $ 408,691       $ 370,513   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average common shares outstanding

     109,274         109,216        109,671         109,874   

Incremental shares from stock options and other dilutive securities

     2,205         2,012        2,055         2,118   
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted weighted average common shares outstanding

     111,479         111,228        111,726         111,992   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per common share attributable to VF Corporation common stockholders

   $ 1.24       $ 1.40      $ 3.66       $ 3.31   
  

 

 

    

 

 

   

 

 

    

 

 

 
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Fair Value Measurements (Tables)
6 Months Ended
Jun. 29, 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:

 

In thousands

   Total
Fair Value
     Fair Value Measurement Using (a)  
      Level 1      Level 2      Level 3  

June 2013

           

Financial assets:

           

Cash equivalents:

           

Money market funds

   $ 53,591       $ 53,591       $ —         $ —     

Time deposits

     77,011         77,011         —           —     

Derivative instruments

     42,243         —           42,243         —     

Investment securities

     203,114         178,541         24,573         —     

Other marketable securities

     4,100         4,100         —           —     

Financial liabilities:

           

Derivative instruments

     10,853         —           10,853         —     

Deferred compensation

     253,154         —           253,154         —     

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 six months of 2013 or the year ended December 2012.

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Derivative Financial Instruments and Hedging Activities (Tables)
6 Months Ended
Jun. 29, 2013
Outstanding Derivatives on Individual Contract Basis at Gross Amounts

The following table presents outstanding derivatives on an individual contract basis at their gross amounts:

 

     Fair Value of Derivatives with
Unrealized Gains
     Fair Value of Derivatives with
Unrealized Losses
 
In thousands    June
2013
     December
2012
     June
2012
     June
2013
     December
2012
     June
2012
 

Foreign exchange contracts designated as hedging instruments

   $ 41,472       $ 15,847       $ 56,894       $ 10,629       $ 27,267       $ 18,977   

Foreign exchange contracts dedesignated as hedging instruments

     355         15         170         133         2,160         2,427   

Foreign exchange contracts not designated as hedging instruments

     416         291         71         91         41         214   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivatives

   $ 42,243       $ 16,153       $ 57,135       $ 10,853       $ 29,468       $ 21,618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Derivatives Classified as Current or Noncurrent Based on Maturity Dates

Derivatives are classified as current or noncurrent based on their maturity dates, as follows:

 

In thousands    June
2013
    December
2012
    June
2012
 

Other current assets

   $ 33,463      $ 13,629      $ 50,313   

Accrued liabilities (current)

     (8,685     (22,013     (18,739

Other assets (noncurrent)

     8,780        2,524        6,822   

Other liabilities (noncurrent)

     (2,168     (7,455     (2,879
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 June
    Gain (Loss) on  Derivatives
Recognized in OCI
Six Months Ended June
 

Cash Flow Hedging Relationships

   2013     2012     2013     2012  

Foreign exchange

   $ (3,093   $ 26,386      $ 52,400      $ 18,675   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (3,093   $ 26,386      $ 52,400      $ 18,675   
  

 

 

   

 

 

   

 

 

   

 

 

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

Location of Gain (Loss)

       2013             2012             2013             2012      

Net sales

   $ 1,378      $ (2,484   $ 1,223      $ (1,780

Cost of goods sold

     3,683        283        7,541        597   

Other income (expense), net

     1,209        553        2,301        (114

Interest expense

     (972     (927     (1,929     (1,838
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 5,298      $ (2,575   $ 9,136      $ (3,135
  

 

 

   

 

 

   

 

 

   

 

 

 
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:

 

In thousands

        Gain (Loss) on Derivatives      Gain (Loss) on Derivatives  
     Location of Gain (Loss)    Recognized in Income      Recognized in Income  
     on Derivatives    Three Months Ended June      Six Months Ended June  

Derivatives Not Designated as Hedges

  

Recognized in Income

   2013      2012      2013      2012  

Foreign exchange

  

Other income (expense), net

   $ 2,729       $ 421       $ 3,998       $ 1,376   
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Dispositions - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 6 Months Ended
Apr. 30, 2012
Jun. 30, 2012
Business Acquisition [Line Items]
Percentage of ownership interest sold 80.00%
Gain on sale of business $ 42,000 $ 41,745
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Sale of Accounts Receivable - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 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 118.6 127.4 135.5
Sale of accounts receivable 580
Funding fee $ 0.8
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Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Inventory [Line Items]
Finished products $ 1,270,901 $ 1,099,229 $ 1,305,605
Work in process 99,776 98,191 103,179
Materials and supplies 152,132 156,738 161,514
Total inventories $ 1,522,809 $ 1,354,158 $ 1,570,298
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Property Plant and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost $ 2,088,459 $ 1,983,417 $ 1,852,871
Less accumulated depreciation and amortization 1,205,262 1,155,199 1,117,044
Property, plant and equipment, net 883,197 828,218 735,827
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost 52,764 54,264 52,706
Building and Improvement
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost 915,805 862,288 767,536
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost $ 1,119,890 $ 1,066,865 $ 1,032,629
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Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Jun. 29, 2013
Customer Relationships
Dec. 29, 2012
Customer Relationships
Jun. 29, 2013
Licensing Agreements
Dec. 29, 2012
Licensing Agreements
Jun. 29, 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 $ 2,889,106 $ 2,917,058 $ 2,928,311
Amortizable intangible assets, Weighted Average Amortization Period (in years) 19 years 24 years 8 years
Amortizable intangible assets, Cost 614,270 183,738 16,016
Amortizable intangible assets, Accumulated Amortization 190,543 72,158 8,425
Amortizable intangible assets, Net Carrying Amount 542,898 566,936 423,727 442,446 111,580 115,742 7,591 8,748
Indefinite-lived intangible assets, Trademarks and trade names $ 2,346,208 $ 2,350,122
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Intangible Assets - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 29, 2013
Jun. 30, 2012
Schedule of Actual and Estimated Amortization Expense [Line Items]
Amortization of intangible assets $ 11,500 $ 22,992 $ 24,221
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Estimated Amortization Expense (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 29, 2013
Schedule Of Estimated Future Amortization Expense [Line Items]
Estimated amortization expense, 2013 $ 45.7
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
6 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Outdoor & Action Sports
Jun. 29, 2013
Jeanswear
Jun. 29, 2013
Imagewear
Dec. 29, 2012
Imagewear
Jun. 29, 2013
Sportswear
Dec. 29, 2012
Sportswear
Jun. 29, 2013
Contemporary Brands
Dec. 29, 2012
Contemporary Brands
Goodwill [Line Items]
Goodwill, beginning balance $ 2,009,757 $ 1,996,355 $ 1,422,492 $ 228,843 $ 58,747 $ 58,747 $ 157,314 $ 157,314 $ 142,361 $ 142,361
Currency translation (8,382) (5,193) (3,189)
Goodwill, ending balance $ 2,001,375 $ 1,996,355 $ 1,417,299 $ 225,654 $ 58,747 $ 58,747 $ 157,314 $ 157,314 $ 142,361 $ 142,361
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Goodwill - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 29, 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 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost - benefits earned during the period $ 6,327 $ 5,794 $ 13,220 $ 11,605
Interest cost on projected benefit obligations 17,978 19,249 36,029 38,498
Expected return on plan assets (23,628) (20,158) (47,310) (40,314)
Amortization of deferred amounts, net deferred actuarial losses 21,326 17,621 42,688 35,239
Amortization of deferred amounts, deferred prior service cost 316 838 657 1,677
Net periodic pension cost $ 22,319 $ 23,344 $ 45,284 $ 46,705
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Pension Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2013
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan contributed $ 111.3
Defined benefit pension plan, discretionary contribution 100
Defined benefit pension plan additional contributions during the remainder of the year $ 7.8
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Financial Information for Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Segment Reporting Information [Line Items]
Coalition revenues $ 2,220,411 $ 2,141,786 $ 4,832,280 $ 4,698,241
Coalition profit 269,056 230,024 692,622 609,396
Corporate and other expenses (69,234) (24,482) (134,033) (88,006)
Interest, net (20,719) (22,405) (41,237) (44,712)
Income before income taxes 179,103 183,137 517,352 476,678
Outdoor & Action Sports
Segment Reporting Information [Line Items]
Coalition revenues 1,103,608 1,039,974 2,487,882 2,303,941
Coalition profit 100,458 82,469 326,960 284,169
Jeanswear
Segment Reporting Information [Line Items]
Coalition revenues 611,749 594,006 1,329,678 1,335,717
Coalition profit 108,874 93,347 252,217 204,119
Imagewear
Segment Reporting Information [Line Items]
Coalition revenues 241,827 251,493 494,584 529,014
Coalition profit 35,059 30,364 66,645 73,290
Sportswear
Segment Reporting Information [Line Items]
Coalition revenues 133,478 117,488 261,711 240,403
Coalition profit 16,278 11,486 28,494 22,212
Contemporary Brands
Segment Reporting Information [Line Items]
Coalition revenues 98,614 107,947 202,341 234,851
Coalition profit 7,878 11,992 20,454 26,850
Other Net
Segment Reporting Information [Line Items]
Coalition revenues 31,135 30,878 56,084 54,315
Coalition profit $ 509 $ 366 $ (2,148) $ (1,244)
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Capital and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Class of Stock [Line Items]
Treasury shares 4,241,351 2,530,401 2,474,996
Common Stock, stated value $ 1 $ 1 $ 1
Number of common stock shares held in connection with deferred compensation plans 183,416 187,456 234,301
Common Stock held in trust in connection with deferred compensation plans $ 8.7 $ 8.8 $ 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
Jun. 29, 2013
Mar. 30, 2013
Dec. 29, 2012
Jun. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation $ (42,716) $ (4,068) $ (81,253)
Defined benefit pension plans (394,785) (420,538) (334,084)
Derivative financial instruments (3,170) (29,430) (777)
Marketable securities (200) 141 (272)
Accumulated other comprehensive income (loss) $ (440,871) $ (423,135) $ (453,895) $ (416,386)
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Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 29, 2013
Jun. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance $ (423,135) $ (453,895) $ (416,386)
Other comprehensive income (loss) before reclassifications (27,414) (7,183)
Amounts reclassified from accumulated other comprehensive income (loss) 9,678 20,207
Net other comprehensive income (loss) (17,736) 13,024
Ending balance (440,871) (440,871) (416,386)
Accumulated Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance (17,866) [1] (4,068)
Other comprehensive income (loss) before reclassifications (24,850) [1] (38,648)
Amounts reclassified from accumulated other comprehensive income (loss) 0 [1] 0
Net other comprehensive income (loss) (24,850) [1] (38,648)
Ending balance (42,716) [1] (42,716) [1]
Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance (407,679) (420,538)
Other comprehensive income (loss) before reclassifications 0 0
Amounts reclassified from accumulated other comprehensive income (loss) 12,894 25,753
Net other comprehensive income (loss) 12,894 25,753
Ending balance (394,785) (394,785)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance 1,924 (29,430)
Other comprehensive income (loss) before reclassifications (1,878) 31,806
Amounts reclassified from accumulated other comprehensive income (loss) (3,216) (5,546)
Net other comprehensive income (loss) (5,094) 26,260
Ending balance (3,170) (3,170)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance 486 141
Other comprehensive income (loss) before reclassifications (686) (341)
Amounts reclassified from accumulated other comprehensive income (loss) 0 0
Net other comprehensive income (loss) (686) (341)
Ending balance $ (200) $ (200)
[1] Other comprehensive income (loss) for the three months ended June 2013 includes a loss of $21.8 million related to the first quarter of 2013. This out-of-period adjustment did not have a material impact on the current or previous reported quarter.
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Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Other Comprehensive Income Loss Reclassification Adjustments [Line Items]
Gains and losses on derivative financial instruments $ 5,298 $ (2,575) $ 9,136 $ (3,135)
Gains and losses on derivative financial instruments tax (2,082) (3,590)
Gains and losses on derivative financial instruments after tax 3,216 5,546
Net deferred actuarial losses (21,326) [1] (17,621) (42,688) [1] (35,239)
Deferred prior service cost (316) [1] (838) (657) [1] (1,677)
Amortization of defined benefit pension plans actuarial loss and service cost before tax (21,642) (43,345)
Amortization of defined benefit pension plans actuarial loss and service cost tax 8,748 17,592
Amortization of defined benefit pension plans actuarial loss and service cost after tax (12,894) (25,753)
Total reclassification for the period (9,678) (20,207)
Foreign Exchange Contract | Net sales
Other Comprehensive Income Loss Reclassification Adjustments [Line Items]
Gains and losses on derivative financial instruments (1,378) (1,223)
Foreign Exchange Contract | Cost of goods sold
Other Comprehensive Income Loss Reclassification Adjustments [Line Items]
Gains and losses on derivative financial instruments (3,683) (7,541)
Foreign Exchange Contract | Other income (expense), net
Other Comprehensive Income Loss Reclassification Adjustments [Line Items]
Gains and losses on derivative financial instruments (1,209) (2,301)
Interest Rate Contract | Interest expense
Other Comprehensive Income Loss Reclassification Adjustments [Line Items]
Gains and losses on derivative financial instruments $ 972 $ 1,929
[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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Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 29, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) $ (17,736) $ 13,024
Accumulated Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) (24,850) [1] (38,648)
Related to First Quarter of 2013 | Accumulated Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) $ (21,800)
[1] Other comprehensive income (loss) for the three months ended June 2013 includes a loss of $21.8 million related to the first quarter of 2013. This out-of-period adjustment did not have a material impact on the current or previous reported quarter.
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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 $ 33.43
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 24 days 7 years 6 months
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Income Taxes - Additional information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Income Taxes [Line Items]
Effective income tax rate 21.00% 22.20%
Net discrete tax Benefits $ 14.4
Tax benefit related to retroactive extension of tax credits 8.3
Realization of unrecognized tax benefits 6.9
Tax reduction due to discrete items 2.80% 4.30%
Increase in unrecognized tax benefits and associated interest 2.7
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate 119.8
Reduction in income tax expenses 15
Possible decrease in unrecognized income tax benefits $ 44.1
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Earnings Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Earnings per share - basic:
Net income $ 138,274 $ 155,425 $ 408,691 $ 370,652
Net (income) loss attributable to noncontrolling interests (128) (139)
Net income attributable to VF Corporation 138,274 155,297 408,691 370,513
Weighted average common shares outstanding 109,274 109,216 109,671 109,874
Earnings per common share attributable to VF Corporation common stockholders $ 1.27 $ 1.42 $ 3.73 $ 3.37
Earnings per share - diluted:
Net income attributable to VF Corporation $ 138,274 $ 155,297 $ 408,691 $ 370,513
Weighted average common shares outstanding 109,274 109,216 109,671 109,874
Incremental shares from stock options and other dilutive securities 2,205 2,012 2,055 2,118
Adjusted weighted average common shares outstanding 111,479 111,228 111,726 111,992
Earnings per common share attributable to VF Corporation common stockholders $ 1.24 $ 1.4 $ 3.66 $ 3.31
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Earnings Per Share - Additional information (Detail)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Employee Stock Option
Earnings Per Share Disclosure [Line Items]
Stock options excluded from computation of earnings per share 0.9 0.5 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 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
6 Months Ended 12 Months Ended
Jun. 29, 2013
Dec. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds $ 53,591 $ 181,635
Cash equivalents, time deposits 77,011 17,042
Derivative instruments, assets 42,243 16,153
Investment securities 203,114 188,307
Other marketable securities 4,100 4,513
Derivative instruments, liabilities 10,853 29,468
Deferred compensation 253,154 230,733
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 53,591 [1] 181,635 [1]
Cash equivalents, time deposits 77,011 [1] 17,042 [1]
Derivative instruments, assets 0 [1] 0 [1]
Investment securities 178,541 [1] 157,230 [1]
Other marketable securities 4,100 [1] 4,513 [1]
Derivative instruments, liabilities 0 [1] 0 [1]
Deferred compensation 0 [1] 0 [1]
Significant Other Observable Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds 0 [1] 0 [1]
Cash equivalents, time deposits 0 [1] 0 [1]
Derivative instruments, assets 42,243 [1] 16,153 [1]
Investment securities 24,573 [1] 31,077 [1]
Other marketable securities 0 [1] 0 [1]
Derivative instruments, liabilities 10,853 [1] 29,468 [1]
Deferred compensation 253,154 [1] 230,733 [1]
Significant Unobservable Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents, money market funds 0 [1] 0 [1]
Cash equivalents, time deposits 0 [1] 0 [1]
Derivative instruments, assets 0 [1] 0 [1]
Investment securities 0 [1] 0 [1]
Other marketable securities 0 [1] 0 [1]
Derivative instruments, liabilities 0 [1] 0 [1]
Deferred compensation $ 0 [1] $ 0 [1]
[1] There were no transfers among the levels within the fair value hierarchy during the first six months of 2013 or the year ended December 2012.
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Fair Value Measurements - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Fair Value, Measurement Inputs, Disclosure [Line Items]
Long-term debt, carrying value $ 1,830.8 $ 1,832
Long-term debt, fair value $ 1,986.4 $ 2,111.4
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Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Foreign Exchange Contract
Dec. 29, 2012
Foreign Exchange Contract
Jun. 30, 2012
Foreign Exchange Contract
Jun. 29, 2013
Interest Rate Swap Derivative Contracts In 2011
Jun. 29, 2013
Interest Rate Swap Derivative Contracts In 2003
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of foreign currency derivatives $ 2,100,000,000 $ 1,900,000,000 $ 1,600,000,000
Higher derivative maturity range by months 24 months
Gain (loss) for derivatives dedesignated as hedging instruments 800,000 (1,100,000) 1,300,000 (1,900,000)
Net pretax deferred gains for foreign exchange contracts that are expected to be reclassified to earnings during next 12 months 21,900,000
Remaining pretax deferred net loss in Accumulated OCI $ 37,500,000 $ 37,500,000
Maturity date, notes 2021 2033
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Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives with Unrealized Gains $ 42,243 $ 16,153 $ 57,135
Fair Value of Derivatives with Unrealized Losses 10,853 29,468 21,618
Foreign exchange contracts designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives with Unrealized Gains 41,472 15,847 56,894
Fair Value of Derivatives with Unrealized Losses 10,629 27,267 18,977
Foreign exchange contracts dedesignated as hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives with Unrealized Gains 355 15 170
Fair Value of Derivatives with Unrealized Losses 133 2,160 2,427
Foreign exchange contracts not designated as hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives with Unrealized Gains 416 291 71
Fair Value of Derivatives with Unrealized Losses $ 91 $ 41 $ 214
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Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Other current assets $ 33,463 $ 13,629 $ 50,313
Accrued liabilities (current) (8,685) (22,013) (18,739)
Other assets (noncurrent) 8,780 2,524 6,822
Other liabilities (noncurrent) $ (2,168) $ (7,455) $ (2,879)
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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 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income $ 3,216 $ 5,546
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI (3,093) 26,386 52,400 18,675
Gain (Loss) Reclassified from Accumulated OCI into Income 5,298 (2,575) 9,136 (3,135)
Cash Flow Hedging | Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 1,378 (2,484) 1,223 (1,780)
Cash Flow Hedging | Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 3,683 283 7,541 597
Cash Flow Hedging | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income 1,209 553 2,301 (114)
Cash Flow Hedging | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (972) (927) (1,929) (1,838)
Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives Recognized in OCI $ (3,093) $ 26,386 $ 52,400 $ 18,675
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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 6 Months Ended
Jun. 29, 2013
Jun. 30, 2012
Jun. 29, 2013
Jun. 30, 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 $ 2,729 $ 421 $ 3,998 $ 1,376
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Subsequent Events - Additional Information (Detail) (USD $)
6 Months Ended
Jun. 29, 2013
Subsequent Event [Line Items]
Dividends declared date Jul 16, 2013
Cash dividend $ 0.87
Dividends payable date Sep 20, 2013
Dividends record date Sep 10, 2013
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