Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | VFC | |
Entity Registrant Name | V F CORP | |
Entity Central Index Key | 103,379 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 395,149,073 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Current assets | |||
Cash and equivalents | $ 1,546,128 | $ 1,227,862 | $ 737,825 |
Accounts receivable, less allowance for doubtful accounts of: September 2017 – $21,469; December 2016 – $20,539; September 2016 – $22,654 | 1,851,430 | 1,161,393 | 1,736,521 |
Inventories | 1,909,563 | 1,471,300 | 1,897,546 |
Other current assets | 319,991 | 296,698 | 293,904 |
Current assets of discontinued operations | 315 | 135,845 | 153,227 |
Total current assets | 5,627,427 | 4,293,098 | 4,819,023 |
Property, plant and equipment, net | 921,217 | 926,010 | 935,015 |
Intangible assets, net | 1,936,522 | 1,797,271 | 1,925,955 |
Goodwill | 1,642,873 | 1,708,323 | 1,769,838 |
Other assets | 746,882 | 929,190 | 904,742 |
Other assets of discontinued operations | 0 | 85,395 | 88,536 |
Total assets | 10,874,921 | 9,739,287 | 10,443,109 |
Current liabilities | |||
Short-term borrowings | 1,985,287 | 26,029 | 737,660 |
Current portion of long-term debt | 253,831 | 253,689 | 3,643 |
Accounts payable | 554,107 | 642,970 | 550,427 |
Accrued liabilities | 1,028,170 | 827,507 | 860,383 |
Current liabilities of discontinued operations | 0 | 35,205 | 25,083 |
Total current liabilities | 3,821,395 | 1,785,400 | 2,177,196 |
Long-term debt | 2,144,221 | 2,039,180 | 2,347,122 |
Other liabilities | 971,885 | 977,076 | 1,049,353 |
Other liabilities of discontinued operations | 0 | (3,290) | (3,339) |
Commitments and contingencies | |||
Total liabilities | 6,937,501 | 4,798,366 | 5,570,332 |
Stockholders’ equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2017, December 2016 or September 2016 | 0 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2017 – 394,502,698; December 2016 – 414,012,954; September 2016 – 413,682,259 | 98,626 | 103,503 | 103,421 |
Additional paid-in capital | 3,456,661 | 3,333,423 | 3,313,077 |
Accumulated other comprehensive loss | (914,896) | (1,041,463) | (998,020) |
Retained earnings | 1,297,029 | 2,545,458 | 2,454,299 |
Total stockholders’ equity | 3,937,420 | 4,940,921 | 4,872,777 |
Total liabilities and stockholders’ equity | $ 10,874,921 | $ 9,739,287 | $ 10,443,109 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowance for doubtful accounts | $ 21,469 | $ 20,539 | $ 22,654 |
Preferred Stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common Stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common Stock, shares outstanding (in shares) | 394,502,698 | 414,012,954 | 413,682,259 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,481,202 | $ 3,298,484 | $ 8,370,183 | $ 8,200,228 |
Royalty income | 27,616 | 29,232 | 79,893 | 82,371 |
Total revenues | 3,508,818 | 3,327,716 | 8,450,076 | 8,282,599 |
Costs and operating expenses | ||||
Cost of goods sold | 1,751,748 | 1,693,071 | 4,225,444 | 4,229,018 |
Selling, general and administrative expenses | 1,168,470 | 1,026,398 | 3,176,536 | 2,939,115 |
Impairment of goodwill | 104,651 | 0 | 104,651 | 0 |
Total costs and operating expenses | 3,024,869 | 2,719,469 | 7,506,631 | 7,168,133 |
Operating income | 483,949 | 608,247 | 943,445 | 1,114,466 |
Interest income | 4,571 | 2,215 | 11,672 | 6,459 |
Interest expense | (27,108) | (24,783) | (75,004) | (70,441) |
Other income (expense), net | (332) | (1,097) | (2,052) | 1,696 |
Income from continuing operations before income taxes | 461,080 | 584,582 | 878,061 | 1,052,180 |
Income taxes | 74,316 | 99,358 | 161,753 | 188,528 |
Income from continuing operations | 386,764 | 485,224 | 716,308 | 863,652 |
Income (loss) from discontinued operations, net of tax | (624) | 13,265 | (11,116) | (53,879) |
Net income | $ 386,140 | $ 498,489 | $ 705,192 | $ 809,773 |
Earnings (loss) per common share - basic | ||||
Continuing operations (in USD per share) | $ 0.98 | $ 1.17 | $ 1.79 | $ 2.07 |
Discontinued operations (in USD per share) | 0 | 0.03 | (0.03) | (0.13) |
Total earnings per common share - basic (in USD per share) | 0.98 | 1.21 | 1.76 | 1.94 |
Earnings (loss) per common share - diluted | ||||
Continuing operations (in USD per share) | 0.97 | 1.16 | 1.77 | 2.04 |
Discontinued operations (in USD per share) | 0 | 0.03 | (0.03) | (0.13) |
Total earnings per common share - diluted (in USD per share) | 0.97 | 1.19 | 1.74 | 1.91 |
Cash dividends per common share (in USD per share) | $ 0.42 | $ 0.37 | $ 1.26 | $ 1.11 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 386,140 | $ 498,489 | $ 705,192 | $ 809,773 |
Foreign currency translation and other | ||||
Gains (losses) arising during the period | 53,481 | 4,154 | 188,649 | 48,222 |
Less income tax effect | 11,764 | 508 | 37,966 | (604) |
Defined benefit pension plans | ||||
Amortization of net deferred actuarial losses | 10,030 | 16,303 | 31,414 | 48,928 |
Amortization of deferred prior service costs | 643 | 645 | 2,000 | 1,937 |
Current year actuarial gains (losses) and curtailment loss | 0 | 0 | 20,996 | 0 |
Less income tax effect | (3,743) | (6,541) | (19,872) | (19,561) |
Derivative financial instruments | ||||
Gains (losses) arising during the period | (51,147) | 9,571 | (117,580) | 32,837 |
Less income tax effect | (679) | (3,675) | 9,744 | (12,506) |
Reclassification to net income for (gains) losses realized | (4,609) | (28,458) | (32,419) | (87,777) |
Less income tax effect | (39) | 10,928 | 5,669 | 33,726 |
Other comprehensive income (loss) | 15,701 | 3,435 | 126,567 | 45,202 |
Comprehensive income | $ 401,841 | $ 501,924 | $ 831,759 | $ 854,975 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | |
Operating activities | ||||||||
Net income | $ 386,140 | $ 498,489 | $ 705,192 | $ 809,773 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Impairment of goodwill | 104,651 | 0 | 104,651 | 0 | ||||
Depreciation and amortization | 207,590 | 205,491 | ||||||
Stock-based compensation | 57,709 | 54,933 | ||||||
Provision for doubtful accounts | 11,396 | 16,193 | ||||||
Pension expense in excess of contributions | 17,601 | 33,866 | ||||||
Loss on sale of businesses | 4,936 | 104,357 | ||||||
Other, net | 15,187 | 22,466 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (625,574) | (501,186) | ||||||
Inventories | (390,419) | (443,115) | ||||||
Accounts payable | (111,276) | (116,800) | ||||||
Income taxes | (77,125) | (141,262) | ||||||
Accrued liabilities | 126,247 | 56,055 | ||||||
Other assets and liabilities | (39,432) | (53,574) | ||||||
Cash provided by operating activities | 6,683 | 47,197 | ||||||
Investing activities | ||||||||
Proceeds from sale of businesses, net of cash sold | 213,494 | 115,983 | ||||||
Capital expenditures | (124,393) | (129,947) | ||||||
Software purchases | (53,451) | (31,843) | ||||||
Other, net | (10,558) | (4,997) | ||||||
Cash provided (used) by investing activities | 25,092 | (50,804) | ||||||
Financing activities | ||||||||
Net increase in short-term borrowings | 1,959,335 | 287,759 | ||||||
Payments on long-term debt | (2,749) | (12,385) | ||||||
Payment of debt issuance costs | 0 | (6,772) | ||||||
Proceeds from long-term debt | 0 | 951,782 | ||||||
Purchases of treasury stock | (1,200,356) | (1,000,230) | ||||||
Cash dividends paid | (502,993) | (462,406) | ||||||
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 48,144 | 40,667 | ||||||
Cash provided (used) by financing activities | 301,381 | (201,585) | ||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (13,914) | 1,018 | ||||||
Net change in cash, cash equivalents and restricted cash | 319,242 | (204,174) | ||||||
Cash, cash equivalents and restricted cash – beginning of year | 1,231,026 | 946,396 | $ 946,396 | |||||
Cash, cash equivalents and restricted cash – end of period | 1,550,268 | 742,222 | 1,550,268 | 742,222 | 1,231,026 | |||
Balances per Consolidated Balance Sheets: | ||||||||
Cash and cash equivalents | $ 1,546,128 | $ 1,227,862 | $ 737,825 | |||||
Other current assets | 3,309 | 3,686 | ||||||
Other assets | 831 | 711 | ||||||
Total cash, cash equivalents and restricted cash | $ 1,550,268 | $ 742,222 | $ 1,231,026 | $ 946,396 | $ 946,396 | $ 1,550,268 | $ 1,231,026 | $ 742,222 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Jan. 02, 2016 | 426,614,274 | ||||
Balance at Jan. 02, 2016 | $ 106,654 | $ 3,192,675 | $ (1,043,222) | $ 3,128,731 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 809,773 | ||||
Balance at Oct. 01, 2016 | 4,872,777 | (998,020) | |||
Balance (in shares) at Jan. 02, 2016 | 426,614,274 | ||||
Balance at Jan. 02, 2016 | $ 106,654 | 3,192,675 | (1,043,222) | 3,128,731 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,074,106 | ||||
Dividends on Common Stock | (635,994) | ||||
Purchase of treasury stock (in shares) | (15,932,075) | ||||
Purchase of treasury stock | $ (3,983) | (996,485) | |||
Stock-based compensation, net (in shares) | 3,330,755 | ||||
Stock-based compensation, net | $ 832 | 140,748 | (24,900) | ||
Foreign currency translation and other | (76,410) | ||||
Defined benefit pension plans | 69,498 | ||||
Derivative financial instruments | 8,671 | ||||
Balance (in shares) at Dec. 31, 2016 | 414,012,954 | ||||
Balance at Dec. 31, 2016 | 4,940,921 | $ 103,503 | 3,333,423 | (1,041,463) | 2,545,458 |
Balance at Jul. 02, 2016 | (1,001,455) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 498,489 | ||||
Balance at Oct. 01, 2016 | 4,872,777 | (998,020) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | (237,764) | ||||
Balance at Dec. 31, 2016 | 4,940,921 | $ 103,503 | 3,333,423 | (1,041,463) | 2,545,458 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 705,192 | 705,192 | |||
Dividends on Common Stock | (502,993) | ||||
Purchase of treasury stock (in shares) | (22,200,000) | (22,213,162) | |||
Purchase of treasury stock | $ (1,200,000) | $ (5,553) | (1,194,803) | ||
Stock-based compensation, net (in shares) | 2,702,906 | ||||
Stock-based compensation, net | $ 676 | 123,238 | (18,061) | ||
Foreign currency translation and other | 226,615 | ||||
Defined benefit pension plans | 34,538 | ||||
Derivative financial instruments | (134,586) | ||||
Balance (in shares) at Sep. 30, 2017 | 394,502,698 | ||||
Balance at Sep. 30, 2017 | 3,937,420 | $ 98,626 | 3,456,661 | (914,896) | 1,297,029 |
Balance at Jul. 01, 2017 | (930,597) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 386,140 | ||||
Balance (in shares) at Sep. 30, 2017 | 394,502,698 | ||||
Balance at Sep. 30, 2017 | $ 3,937,420 | $ 98,626 | $ 3,456,661 | $ (914,896) | $ 1,297,029 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation VF Corporation (together with its subsidiaries, collectively known as “VF” or “the Company”) uses a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended September 2017 , December 2016 and September 2016 relate to the fiscal periods ended on September 30, 2017 , December 31, 2016 and October 1, 2016 , respectively. During the first quarter of 2017, the Company approved a change in fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31. Accordingly, the Company’s 2017 fiscal year will end as planned on December 30, 2017, followed by a three-month transition period from December 31, 2017 through March 31, 2018. The Company’s next fiscal year will run from April 1, 2018 through March 30, 2019 (“fiscal 2019”). On April 28, 2017, VF completed the sale of its Licensed Sports Group (“LSG”) business. As a result, VF reported the operating results for this business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets through the date of sale. In conjunction with the LSG divestiture, VF executed its plan to entirely exit the licensing business and has included the JanSport ® brand collegiate business as discontinued operations in our Consolidated Statements of Income and Consolidated Balance Sheets for all periods presented. In addition, VF completed the sale of its Contemporary Brands coalition on August 26, 2016, and has reported the operating results for this business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for the three and nine months ended September 2016. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note C for additional information on discontinued operations. The accompanying unaudited condensed 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 in the United States of America (“GAAP”) for complete financial statements. Similarly, the December 2016 condensed 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 condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and nine months ended September 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 30, 2017 . 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 2016 (“ 2016 Form 10-K”). |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 11, 2017, VF entered into a definitive merger agreement to acquire 100% of the outstanding shares of Williamson-Dickie Mfg. Co. (“Williamson-Dickie”). The acquisition was completed on October 2, 2017 for $800.7 million in cash, subject to working capital and other adjustments. The purchase price was primarily funded with short-term borrowings. Williamson-Dickie is a privately held company based in Ft. Worth, TX, and is one of the largest companies in the workwear sector with a portfolio of brands including Dickies ® , Workrite ® , Kodiak ® , Terra ® and Walls ® . The Company believes the acquisition brings together complementary assets and capabilities, and creates a workwear business that will now serve an even broader set of consumers and industries around the world. The Company is still in the process of aligning accounting policies and valuing the assets acquired and liabilities assumed, and as such, certain disclosures regarding this transaction have not been included herein. The Company recognized $4.9 million of transaction and deal-related expenses in the three and nine months ended September 2017. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company continuously assesses the composition of our portfolio to ensure it is aligned with our strategic objectives and positioned to maximize growth and return to our shareholders. Divestiture of the Licensing Business On April 28, 2017, VF completed the sale of LSG to Fanatics, Inc. The Company received net proceeds of $213.5 million and recorded an after-tax loss on sale of $4.1 million , which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for the first nine months of 2017. The final adjustment to the after-tax loss on sale was $0.3 million in the third quarter of 2017. LSG included the Majestic ® brand, which supplied apparel and fanware through licensing agreements with U.S. and international professional sports leagues and teams, and was previously included within our Imagewear coalition. Under the terms of the transition services agreement, the Company is providing certain support services for periods ranging from three to 24 months from the closing date of the transaction. Revenue and expense items associated with the transition services are primarily recorded in the Imagewear coalition. Beginning in the first quarter of 2017, VF reported the results of LSG in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income; accordingly, the results have been excluded from continuing operations and segment results for all periods presented. The LSG results, including the loss on sale, recorded in the income (loss) from discontinued operations, net of tax line item were income of $0.3 million and losses of $4.6 million for the third quarter and first nine months of 2017 , respectively, and income of $18.1 million and $45.1 million for the third quarter and first nine months of 2016, respectively. Prior to the sale, the related assets and liabilities of LSG were reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets. In conjunction with the LSG divestiture, VF executed its plan to entirely exit all of its licensing businesses, and has classified the assets of the JanSport ® brand collegiate business as held-for-sale in VF’s Consolidated Balance Sheets for all periods presented. The assets of the JanSport ® brand collegiate business are recorded at their fair value of $0.3 million at September 2017. Management determined that the expected sale of the JanSport ® brand collegiate business met the criteria for presentation as discontinued operations in the first quarter of 2017. Accordingly, the results of the JanSport ® brand collegiate business have been presented as discontinued operations in VF’s Consolidated Statements of Income beginning in the first quarter of 2017, and thus have been excluded from continuing operations and segment results for all periods presented. The JanSport ® brand collegiate results, including the estimated loss on sale, recorded in the income (loss) from discontinued operations, net of tax line item were losses of $0.9 million and $6.5 million for the third quarter and first nine months of 2017 , respectively, and losses of $0.3 million and $0.6 million for the third quarter and first nine months of 2016, respectively. The JanSport ® brand collegiate business was previously included within our Outdoor & Action Sports coalition. Certain corporate overhead and other costs previously allocated to the licensing business for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. Divestiture of the Contemporary Brands Coalition On August 26, 2016 , VF completed the sale of its Contemporary Brands coalition to Delta Galil Industries, Ltd. for $116.9 million . The Contemporary Brands coalition included the businesses of the 7 For All Mankind ® , Splendid ® and Ella Moss ® brands (the “Businesses”) and was previously disclosed as a separate reportable segment of VF. The transaction resulted in an after-tax loss on sale of $104.4 million which was included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for the first nine months of 2016. The after-tax loss on sale included in the income (loss) from discontinued operations, net of tax line item for the third quarter of 2016 was $3.8 million . VF reported the results of the Businesses as discontinued operations for the third quarter and first nine months of 2016 and excluded them from continuing operations and segment results. The results of the Businesses, including the loss on sale, recorded in the income (loss) from discontinued operations, net of tax line item for the third quarter and first nine months of 2016 were losses of $4.5 million and $98.4 million , respectively. VF provided certain support services under transition services agreements and completed these services during the third quarter of 2017. These services did not have a material impact on VF’s Consolidated Statement of Income for the nine months ended September 2017. Summarized Discontinued Operations Financial Information The following table summarizes the major line items included in the income (loss) from discontinued operations for the divestitures of the licensing business and Contemporary Brands coalition: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Revenues $ 6,498 $ 203,696 $ 160,323 $ 603,651 Cost of goods sold 6,580 127,876 121,172 362,215 Selling, general and administrative expenses 1,341 51,714 36,059 173,574 Interest expense, net (1 ) (21 ) (26 ) (183 ) Other income (expense), net — 7 — 3 Income (loss) from discontinued operations before income taxes (1,424 ) 24,092 3,066 67,682 Gain (loss) on the sale of discontinued operations before income taxes 411 (4,439 ) (9,506 ) (154,275 ) Total income (loss) from discontinued operations before income taxes (1,013 ) 19,653 (6,440 ) (86,593 ) Income tax (expense) benefit (a) 389 (6,388 ) (4,676 ) 32,714 Income (loss) from discontinued operations, net of tax $ (624 ) $ 13,265 $ (11,116 ) $ (53,879 ) (a) Income tax (expense) benefit for the nine months ended September 2017 includes $8.6 million of deferred tax expense related to GAAP and tax basis differences for LSG. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. In thousands September 2017 December 2016 September 2016 Accounts receivable, net $ — $ 36,285 $ 48,768 Inventories — 98,025 102,450 Other current assets — 1,535 2,009 Property, plant and equipment, net 315 13,640 14,297 Intangible assets — 42,427 44,833 Goodwill — 28,636 28,636 Other assets — 692 770 Total assets of discontinued operations (a) $ 315 $ 221,240 $ 241,763 Accounts payable $ — $ 21,674 $ 15,318 Accrued liabilities — 13,531 9,765 Other liabilities — 791 801 Deferred income tax liabilities (b) — (4,081 ) (4,140 ) Total liabilities of discontinued operations (a) $ — $ 31,915 $ 21,744 (a) Amounts at December 2016 and September 2016 have been classified as current and long-term in the Consolidated Balance Sheets. (b) Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows. There were no significant capital expenditures and operating noncash items for any periods presented. Depreciation and amortization expense was $3.0 million and $10.9 million for the nine months ended September 2017 and 2016, respectively. |
Sale of Accounts Receivable
Sale of Accounts Receivable | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Sale of Accounts Receivable | 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 $367.5 million of VF’s accounts receivable may be sold to the financial institution and remain outstanding at any point in time. VF removes the accounts receivable from the Consolidated Balance Sheets at the time of sale. VF does not retain any interests in the sold accounts receivable but continues to service and collect outstanding accounts receivable on behalf of the financial institution. During the first nine months of 2017 , VF sold total accounts receivable of $871.6 million . As of September 2017 , December 2016 and September 2016 , $191.4 million , $209.5 million and $212.3 million , respectively, of the sold accounts receivable had been removed from the Consolidated Balance Sheets but remained outstanding with the financial institution. The funding fee charged by the financial institution is included in the other income (expense), net line item in the Consolidated Statements of Income, and was $0.8 million and $2.7 million for the third quarter and first nine months of 2017, respectively, and $0.8 million and $2.5 million for the third quarter and first nine months of 2016 , respectively. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories In thousands September 2017 December 2016 September 2016 Finished products $ 1,717,516 $ 1,278,504 $ 1,706,612 Work-in-process 106,120 97,725 96,727 Raw materials 85,927 95,071 94,207 Total inventories $ 1,909,563 $ 1,471,300 $ 1,897,546 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets September 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 265,725 $ 134,246 $ 131,479 $ 128,422 License agreements 28 years Accelerated 109,370 62,278 47,092 49,682 Trademark 16 years Straight-line 58,132 6,358 51,774 54,499 Other 9 years Straight-line 9,658 3,846 5,812 3,297 Amortizable intangible assets, net 236,157 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,700,365 1,561,371 Intangible assets, net $ 1,936,522 $ 1,797,271 Amortization expense for the third quarter and first nine months of 2017 was $5.6 million and $16.3 million , respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five 12-month periods beginning in 2017 is $21.9 million , $21.9 million , $21.3 million , $20.4 million and $19.4 million , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in goodwill are summarized by business segment as follows: In thousands Outdoor & Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2016 $ 1,310,133 $ 210,765 $ 30,111 $ 157,314 $ 1,708,323 Impairment charge — — — (104,651 ) (104,651 ) Currency translation 32,260 6,941 — — 39,201 Balance, September 2017 $ 1,342,393 $ 217,706 $ 30,111 $ 52,663 $ 1,642,873 During the third quarter of 2017, VF performed an interim impairment analysis of the Nautica ® reporting unit and recorded an impairment charge of $104.7 million . Nautica ® is part of the Sportswear coalition. Refer to Note N for additional information on fair value measurements. As of September 2017, accumulated impairment charges for the Outdoor & Action Sports and Sportswear coalitions were $82.7 million and $163.2 million , respectively. As of December 2016, accumulated impairment charges for the Outdoor & Action Sports and Sportswear coalitions were $82.7 million and $58.5 million , respectively. |
Pension Plans
Pension Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Pension Plans The components of pension cost for VF’s defined benefit plans were as follows: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Service cost – benefits earned during the period $ 6,202 $ 6,478 $ 18,733 $ 19,434 Interest cost on projected benefit obligations 14,730 16,991 44,254 51,066 Expected return on plan assets (23,825 ) (24,869 ) (70,977 ) (74,714 ) Amortization of deferred amounts: Net deferred actuarial losses 10,030 16,303 31,414 48,928 Deferred prior service costs 643 645 2,000 1,937 Net periodic pension cost $ 7,780 $ 15,548 $ 25,424 $ 46,651 VF contributed $7.8 million to its defined benefit plans during the first nine months of 2017 , and intends to make approximately $7.2 million of additional contributions during the remainder of 2017 . In conjunction with the sale of the licensing business, the Company recognized a $1.1 million pension curtailment loss in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income in the first nine months of 2017. |
Capital and Accumulated Other C
Capital and Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Capital and Accumulated Other Comprehensive Loss | Capital and Accumulated Other Comprehensive Loss During the first nine months of 2017 , the Company purchased 22.2 million shares of Common Stock in open market transactions for $1.2 billion under its share repurchase program authorized by VF’s Board of Directors. These transactions were treated as treasury stock transactions. Common Stock outstanding is net of shares held in treasury which are, in substance, retired. During the first nine months of 2017 , VF restored 22.3 million treasury shares to an unissued status, after which they were no longer recognized as shares held in treasury. There were no shares held in treasury at the end of September 2017 or December 2016 , and 2,600 shares held in treasury at the end of September 2016 . The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings. VF Common Stock is also held by the Company’s deferred compensation plans and is treated as treasury shares for financial reporting purposes. During the first nine months of 2017 , the Company purchased 6,540 shares of Common Stock in open market transactions for $0.4 million . Balances related to shares held for deferred compensation plans were as follows: In thousands, except share amounts September 2017 December 2016 September 2016 Shares held for deferred compensation plans 320,615 439,667 450,067 Cost of shares held for deferred compensation plans $ 3,973 $ 5,464 $ 5,434 Accumulated Other Comprehensive Loss Comprehensive income consists of net income and specified components of other comprehensive income (“OCI”), which relates to changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income is presented in the Consolidated Statements of Comprehensive Income. The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: In thousands September 2017 December 2016 September 2016 Foreign currency translation and other $ (567,964 ) $ (794,579 ) $ (670,551 ) Defined benefit pension plans (268,159 ) (302,697 ) (340,891 ) Derivative financial instruments (78,773 ) 55,813 13,422 Accumulated other comprehensive loss $ (914,896 ) $ (1,041,463 ) $ (998,020 ) The changes in accumulated OCI, net of related taxes, are as follows: Three Months Ended September 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2017 $ (633,209 ) $ (275,089 ) $ (22,299 ) $ (930,597 ) Other comprehensive income (loss) before reclassifications 65,245 — (51,826 ) 13,419 Amounts reclassified from accumulated other comprehensive income (loss) — 6,930 (4,648 ) 2,282 Net other comprehensive income (loss) 65,245 6,930 (56,474 ) 15,701 Balance, September 2017 $ (567,964 ) $ (268,159 ) $ (78,773 ) $ (914,896 ) Three Months Ended September 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2016 $ (675,213 ) $ (351,298 ) $ 25,056 $ (1,001,455 ) Other comprehensive income (loss) before reclassifications 4,662 — 5,896 10,558 Amounts reclassified from accumulated other comprehensive income (loss) — 10,407 (17,530 ) (7,123 ) Net other comprehensive income (loss) 4,662 10,407 (11,634 ) 3,435 Balance, September 2016 $ (670,551 ) $ (340,891 ) $ 13,422 $ (998,020 ) Nine Months Ended September 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ (1,041,463 ) Other comprehensive income (loss) before reclassifications 226,615 12,253 (107,836 ) 131,032 Amounts reclassified from accumulated other comprehensive income (loss) — 22,285 (26,750 ) (4,465 ) Net other comprehensive income (loss) 226,615 34,538 (134,586 ) 126,567 Balance, September 2017 $ (567,964 ) $ (268,159 ) $ (78,773 ) $ (914,896 ) Nine Months Ended September 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2015 $ (718,169 ) $ (372,195 ) $ 47,142 $ (1,043,222 ) Other comprehensive income (loss) before reclassifications 47,618 — 20,331 67,949 Amounts reclassified from accumulated other comprehensive income (loss) — 31,304 (54,051 ) (22,747 ) Net other comprehensive income (loss) 47,618 31,304 (33,720 ) 45,202 Balance, September 2016 $ (670,551 ) $ (340,891 ) $ 13,422 $ (998,020 ) Reclassifications out of accumulated OCI are as follows: In thousands Affected Line Item in the Consolidated Statements of Income Three Months Ended September Nine Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components 2017 2016 2017 2016 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (10,030 ) $ (16,303 ) $ (31,414 ) $ (48,928 ) Deferred prior service costs (a) (643 ) (645 ) (2,000 ) (1,937 ) Pension curtailment loss Income (loss) from discontinued operations, net of tax — — (1,105 ) — Total before tax (10,673 ) (16,948 ) (34,519 ) (50,865 ) Tax benefit 3,743 6,541 12,234 19,561 Net of tax (6,930 ) (10,407 ) (22,285 ) (31,304 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 11,614 14,676 25,074 11,997 Foreign exchange contracts Cost of goods sold (4,164 ) 15,485 12,763 80,094 Foreign exchange contracts Selling, general and administrative expenses (882 ) (1,098 ) (1,212 ) (3,611 ) Foreign exchange contracts Other income (expense), net (774 ) 526 (688 ) 2,653 Interest rate contracts Interest expense (1,185 ) (1,131 ) (3,518 ) (3,356 ) Total before tax 4,609 28,458 32,419 87,777 Tax benefit (expense) 39 (10,928 ) (5,669 ) (33,726 ) Net of tax 4,648 17,530 26,750 54,051 Total reclassifications for the period Net of tax $ (2,282 ) $ 7,123 $ 4,465 $ 22,747 (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note H for additional details). |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation During the first nine months of 2017 , VF granted stock options to employees and nonemployee members of VF’s Board of Directors to purchase 3,508,940 shares of its Common Stock at a weighted average exercise price of $53.68 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest in equal annual installments over three years . Stock options granted to nonemployee members of 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: 2017 Expected volatility 23% to 30% Weighted average expected volatility 24% Expected term (in years) 6.3 to 7.7 Weighted average dividend yield 2.8% Risk-free interest rate 0.7% to 2.4% Weighted average fair value at date of grant $9.90 Also during the first nine months of 2017 , VF granted 615,937 performance-based restricted stock units (“RSU”) to employees that enable them to receive shares of VF Common Stock at the end of a three -year period. Each performance-based RSU has a potential final payout 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. Shares are issued to participants in the year following the conclusion of each three -year performance period. The weighted average fair market value of VF Common Stock at the date the units were granted was $53.69 per share. The actual number of performance-based RSUs earned may also be adjusted upward or downward by 25% of the target award, based on how VF’s total shareholder return (“TSR”) over the three -year period compares to the TSR for companies included in the Standard & Poor’s 500 Index. The grant date fair value of the TSR-based adjustment related to the 2017 performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $2.67 per share. VF granted 17,964 nonperformance-based RSUs to nonemployee members of the Board of Directors during the first quarter of 2017 . 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 $53.47 per share. VF granted 186,447 nonperformance-based RSUs to certain key employees in international jurisdictions during the first nine months of 2017 . These units vest over periods of up to four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the date the units were granted was $57.70 . VF granted 385,915 restricted shares of VF Common Stock to certain members of management during the first nine months of 2017 . These shares vest over periods of up to five years from the date of grant. The weighted average fair market value of VF Common Stock at the date the shares were granted was $55.74 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate for the first nine months of 2017 was 18.4% compared to 17.9% in the first nine months of 2016 . The first nine months of 2017 included a net discrete tax benefit of $14.4 million , which included a $12.5 million tax benefit related to stock compensation, $4.1 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest, and $1.9 million of discrete tax expense related to the effects of tax rate changes. The $14.4 million net discrete tax benefit in 2017 reduced the effective income tax rate by 1.6% . The first nine months of 2016 included a net discrete tax benefit of $40.3 million , which included a $26.3 million tax benefit related to the early adoption of the accounting standards update on stock compensation, $15.6 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest, and $4.1 million of discrete tax expense related to the effects of tax rate changes. The $40.3 million net discrete tax benefit in 2016 reduced the effective income tax rate by 3.8% . Without discrete items, the effective income tax rate for the first nine months of 2017 decreased by 1.7% compared with the 2016 period primarily due to a higher percentage of income in lower tax rate jurisdictions and the impact of early adopting the accounting standards update regarding intra-entity asset transfers, partially offset by the impact of goodwill impairment recorded in the quarter. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service (“IRS”) examinations for tax years through 2012 have been effectively settled. The examination of Timberland’s 2011 tax return is ongoing. The IRS has proposed material adjustments to Timberland’s 2011 tax return that would significantly impact the timing of cash tax payments and assessment of interest charges. The Company has formally disagreed with the proposed adjustments. During 2015, VF filed a petition to the U.S. Tax Court to begin the process of resolving this matter, but it has not yet reached a resolution. 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, and has concluded that VF’s provision for income taxes is adequate. 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 . VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. In February 2015, the European Union Commission (“EU”) opened a state aid investigation into Belgium’s rulings. On January 11, 2016, the EU announced its decision that these rulings were illegal and ordered that tax benefits granted under these rulings should be collected from the affected companies, including VF. On March 22, 2016, the Belgium government filed an appeal seeking annulment of the EU decision. Additionally, on June 21, 2016, VF Europe BVBA filed its own application for annulment of the EU decision. Both of the listed requests for annulment remain open and unresolved. On December 22, 2016, Belgium adopted a law which entitled the Belgium tax authorities to issue tax assessments, and demand timely payments from companies which benefited from the excess profits regime. On January 10, 2017, VF Europe BVBA received an assessment for €31.9 million tax and interest related to excess profits benefits received in prior years. VF Europe BVBA remitted €31.9 million ( $33.9 million ) on January 13, 2017, which was recorded as an income tax receivable based on the expected success of the aforementioned requests for annulment. If this matter is adversely resolved, these amounts will not be collected by VF. During the first nine months of 2017 , the amount of net unrecognized tax benefits and associated interest increased by $2.6 million to $153.1 million . Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $19.1 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $16.9 million would reduce income tax expense. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | 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 segments. Financial information for VF’s reportable segments is as follows: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Coalition revenues: Outdoor & Action Sports $ 2,502,590 $ 2,326,436 $ 5,647,587 $ 5,378,272 Jeanswear 697,701 701,416 1,945,950 2,041,186 Imagewear 138,885 127,992 423,859 404,633 Sportswear 140,272 140,705 352,848 373,977 Other 29,370 31,167 79,832 84,531 Total coalition revenues $ 3,508,818 $ 3,327,716 $ 8,450,076 $ 8,282,599 Coalition profit: (a) Outdoor & Action Sports $ 524,489 $ 491,015 $ 877,206 $ 842,378 Jeanswear 121,218 142,427 323,994 388,564 Imagewear 22,377 23,981 72,349 74,497 Sportswear 17,488 15,080 27,764 26,156 Other (737 ) (341 ) (3,225 ) (3,523 ) Total coalition profit 684,835 672,162 1,298,088 1,328,072 Impairment of goodwill (b) (104,651 ) — (104,651 ) — Corporate and other expenses (a) (96,567 ) (65,012 ) (252,044 ) (211,910 ) Interest expense, net (22,537 ) (22,568 ) (63,332 ) (63,982 ) Income from continuing operations before income taxes $ 461,080 $ 584,582 $ 878,061 $ 1,052,180 (a) Certain corporate overhead and other costs of $6.0 million and $18.2 million for the three and nine -month periods ended September 2016, respectively, previously allocated to the Imagewear and Outdoor & Action Sports coalitions for segment reporting purposes, have been reallocated to continuing operations as discussed in Note C. (b) Represents goodwill impairment charge in 2017 related to the Sportswear coalition as discussed in Notes G and N. The impairment charge was excluded from the profit of the Sportswear coalition since it is not part of the ongoing operations of the business. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended September Nine Months Ended September In thousands, except per share amounts 2017 2016 2017 2016 Earnings per share – basic: Income from continuing operations $ 386,764 $ 485,224 $ 716,308 $ 863,652 Weighted average common shares outstanding 393,258 413,461 400,771 417,067 Earnings per share from continuing operations $ 0.98 $ 1.17 $ 1.79 $ 2.07 Earnings per share – diluted: Income from continuing operations $ 386,764 $ 485,224 $ 716,308 $ 863,652 Weighted average common shares outstanding 393,258 413,461 400,771 417,067 Incremental shares from stock options and other dilutive securities 4,126 5,779 3,848 6,410 Adjusted weighted average common shares outstanding 397,384 419,240 404,619 423,477 Earnings per share from continuing operations $ 0.97 $ 1.16 $ 1.77 $ 2.04 Outstanding options to purchase 4.9 million and 8.6 million shares of Common Stock were excluded from the calculations of diluted earnings per share for the three and nine -month periods ended September 2017 , respectively, and options to purchase 5.2 million and 5.3 million shares were excluded from the calculations of diluted earnings per share for the three and nine -month periods ended September 2016 , respectively, because the effect of their inclusion would have been antidilutive to those periods. In addition, 1.1 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for both the three and nine -month periods ended September 2017 , and 1.0 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for both the three and nine -month periods ended September 2016 because these units were not considered to be contingent outstanding shares in those periods. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 September 2017 Financial assets: Cash equivalents: Money market funds $ 405,045 $ 405,045 $ — $ — Time deposits 8,307 8,307 — — Derivative financial instruments 26,658 — 26,658 — Investment securities 202,721 189,744 12,977 — Financial liabilities: Derivative financial instruments 89,212 — 89,212 — Deferred compensation 233,151 — 233,151 — December 2016 Financial assets: Cash equivalents: Money market funds $ 840,842 $ 840,842 $ — $ — Time deposits 14,774 14,774 — — Derivative financial instruments 103,340 — 103,340 — Investment securities 196,738 179,673 17,065 — Financial liabilities: Derivative financial instruments 25,574 — 25,574 — Deferred compensation 232,214 — 232,214 — (a) There were no transfers among the levels within the fair value hierarchy during the first nine months of 2017 or the year ended December 2016 . VF’s cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of forward foreign currency exchange contracts, is determined based on observable market inputs (Level 2), 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 VF’s deferred compensation plans as an economic hedge of the related deferred compensation liabilities. These investments are classified as trading securities and primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets and a separately managed fixed-income fund (Level 2) with underlying investments that are valued based on quoted prices for similar assets in active markets or quoted prices in inactive markets for identical assets. Liabilities related to VF’s deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments. 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 September 2017 and December 2016 , their carrying values approximated their fair values. Additionally, at September 2017 and December 2016 , the carrying values of VF’s long-term debt, including the current portion, were $2,398.1 million and $2,292.9 million , respectively, compared with fair values of $2,614.6 million and $2,486.6 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. Nonrecurring Fair Value Measurements Certain non-financial assets, primarily property, plant and equipment, goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. In the event an impairment is required, the asset is adjusted to estimated fair value, using market-based assumptions. The Company recorded $8.6 million of fixed asset impairments in the third quarter and first nine months of 2017, and the charges are recorded in the selling, general and administrative expenses line item in the Consolidated Statements of Income. There were no significant impairment charges related to property, plant and equipment in the third quarter and first nine months of 2016. Subsequent to our annual impairment testing completed in the fourth quarter of 2016, the Company continued to monitor the actual performance of the Nautica ® brand reporting unit and determined that there were no triggering events in the first and second quarters of fiscal 2017. On August 26, 2017, management commenced a strategic assessment of the Nautica ® brand which was considered a triggering event for the reporting unit and trademark intangible asset. The Nautica ® brand was acquired in 2003 and sells sportswear in the U.S. through department stores, specialty stores, VF-operated stores and online. It also has significant global licensing arrangements. The Nautica ® brand is part of the Sportswear coalition and represents substantially all of the coalition’s goodwill value. As part of the 2009 annual impairment analysis,VF recorded an impairment charge of $58.5 million to write the goodwill down to its estimated fair value. The remaining book values of the goodwill and trademark intangible asset at the 2017 testing date were $153.7 million and $217.4 million , respectively. The impairment testing of goodwill and the trademark intangible asset utilized significant unobservable inputs (Level 3) to determine the estimated fair value. As a result of the interim impairment testing performed, VF recognized a goodwill impairment charge of $104.7 million in the Consolidated Statements of Income for the three and nine months ended September 2017. VF early adopted the recently issued accounting guidance that simplifies the subsequent measurement of goodwill and calculated the impairment charge as the difference between the carrying value of the reporting unit and the estimated fair value. The estimated fair value of the trademark intangible asset exceeded its carrying value by a substantial amount and thus the asset was not impaired. The estimated fair value of the Nautica ® reporting unit for goodwill impairment testing was determined using a combination of two valuation methods: an income approach and a market approach. The income approach was based on projected future (debt-free) cash flows that were discounted to present value and assumed a terminal growth value. The discount rate was based on the reporting unit’s weighted average cost of capital (“WACC”) that takes market participant assumptions into consideration. For the market approach, management used both the guideline company and similar transaction methods. The guideline company method analyzed market multiples of revenues and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for a group of comparable public companies. The market multiples used in the valuation were based on the relative strengths and weaknesses of the reporting unit compared to the selected guideline companies. Under the similar transactions method, valuation multiples were calculated utilizing actual transaction prices and revenue/EBITDA data from target companies deemed similar to the reporting unit. Management used the income-based relief-from-royalty method to value the Nautica ® trademark intangible asset. Under this method, revenues expected to be generated by the trademark were multiplied by a selected royalty rate. The royalty rate was selected based on consideration of i) royalty rates included in active license agreements, ii) royalty rates received by market participants in the apparel industry, and iii) the current performance of the reporting unit. The estimated after-tax royalty revenue stream was then discounted to present value using the reporting unit’s WACC plus a spread that factors in the risk of the intangible asset. Management’s revenue and profitability forecasts used in the Nautica ® reporting unit and intangible asset valuations considered recent and historical Nautica ® performance, strategic initiatives for the Nautica ® reporting unit and industry trends. Assumptions used in the valuations were similar to those that would be used by market participants performing independent valuations of these businesses. Key assumptions developed by VF management and used in the quantitative analysis include: • Near-term revenue declines with later-term improvements over the projection period. • Improved profitability over the projection period, trending consistent with revenues. • Royalty rates based on active license agreements of the brand. • Market-based discount rates. It is possible VF’s conclusions regarding impairment of the Nautica ® reporting unit goodwill or trademark intangible asset could change in future periods. There can be no assurance the estimates and assumptions used in our goodwill and intangible asset impairment testing performed in the third quarter of 2017 will prove to be accurate predictions of the future. For example, variations in our assumptions related to discount rates, comparable company market approach inputs, business performance and execution of planned growth strategies could impact future conclusions. A future impairment charge for goodwill or intangible assets could have a material effect on VF’s consolidated financial position and results of operations. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Summary of Derivative Financial Instruments All of VF’s outstanding derivative financial instruments are forward foreign currency exchange contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. The notional amounts of outstanding derivative contracts were $2.4 billion at September 2017 , and $2.2 billion at both December 2016 and September 2016 , consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, Swedish krona, Japanese yen, Polish zloty and Turkish lira. Derivative contracts have maturities up to 20 months . The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses In thousands September 2017 December 2016 September 2016 September 2017 December 2016 September 2016 Foreign currency exchange contracts designated as hedging instruments $ 26,451 $ 103,340 $ 75,497 $ (88,593 ) $ (25,292 ) $ (31,996 ) Foreign currency exchange contracts not designated as hedging instruments 207 — — (619 ) (282 ) (185 ) Total derivatives $ 26,658 $ 103,340 $ 75,497 $ (89,212 ) $ (25,574 ) $ (32,181 ) VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2017 December 2016 September 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 26,658 $ (89,212 ) $ 103,340 $ (25,574 ) $ 75,497 $ (32,181 ) Gross amounts not offset in the Consolidated Balance Sheets (26,001 ) 26,001 (22,341 ) 22,341 (19,328 ) 19,328 Net amounts $ 657 $ (63,211 ) $ 80,999 $ (3,233 ) $ 56,169 $ (12,853 ) Derivatives are classified as current or noncurrent based on maturity dates, as follows: In thousands September 2017 December 2016 September 2016 Other current assets $ 23,387 $ 84,519 $ 66,231 Accrued liabilities (75,266 ) (18,574 ) (28,852 ) Other assets 3,271 18,821 9,266 Other liabilities (13,946 ) (7,000 ) (3,329 ) Cash Flow Hedges VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production costs, operating costs and intercompany royalties. 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 September Gain (Loss) on Derivatives Recognized in OCI Nine Months Ended September Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency exchange $ (51,147 ) $ 9,571 $ (117,580 ) $ 32,837 In thousands Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income Nine Months Ended September Location of Gain (Loss) 2017 2016 2017 2016 Net sales $ 11,614 $ 14,676 $ 25,074 $ 11,997 Cost of goods sold (4,164 ) 15,485 12,763 80,094 Selling, general and administrative expenses (882 ) (1,098 ) (1,212 ) (3,611 ) Other income (expense), net (774 ) 526 (688 ) 2,653 Interest expense (1,185 ) (1,131 ) (3,518 ) (3,356 ) Total $ 4,609 $ 28,458 $ 32,419 $ 87,777 Derivative Contracts Not Designated as Hedges VF uses derivative contracts to manage foreign currency exchange risk on third-party accounts receivable and payable, as well as intercompany borrowings. 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 transaction gains or losses on the related assets and liabilities. Following is a summary of these derivatives included in VF’s Consolidated Statements of Income: In thousands Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income Three Months Ended September Gain (Loss) on Derivatives Recognized in Income Nine Months Ended September 2017 2016 2017 2016 Foreign currency exchange Cost of goods sold $ (927 ) $ (510 ) $ (294 ) $ 225 Foreign currency exchange Other income (expense), net (339 ) (110 ) (2,078 ) (1,196 ) Total $ (1,266 ) $ (620 ) $ (2,372 ) $ (971 ) Other Derivative Information There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during the three and nine -month periods ended September 2017 and September 2016 . At September 2017 , accumulated OCI included $42.8 million of pre-tax net deferred losses for foreign currency 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 pre-tax net deferred loss in accumulated OCI was $19.2 million at September 2017 , which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. VF reclassified $1.2 million and $3.5 million of net deferred losses from accumulated OCI into interest expense for the three and nine -month periods ended September 2017 , respectively, and $1.1 million and $3.4 million for the three and nine -month periods ended September 2016 , respectively. VF expects to reclassify $4.9 million to interest expense during the next 12 months . Net Investment Hedge The Company has designated its €850.0 million of euro-denominated fixed-rate notes as a net investment hedge of VF’s investment in certain foreign operations. Because this debt qualified as a nonderivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCI as an offset to the foreign currency translation adjustments on the hedged investments. The net investment hedge was initiated in September 2016 and there were no significant amounts recognized in accumulated OCI during the third quarter of 2016. During the three and nine -month periods ended September 2017 , the Company recognized an after-tax loss of $20.4 million and $65.5 million , respectively, in OCI related to the net investment hedge. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. The Company recorded no ineffectiveness from its net investment hedge during the three and nine -month periods ended September 2017 and the three and nine-month periods ended September 2016. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards In July 2015, the FASB issued an update to their accounting guidance related to inventory that changes the measurement principle from lower of cost or market to lower of cost or net realizable value. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. The guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments when there is a change in the counterparty to a derivative contract (novation). The new guidance clarifies that the novation of a derivative contract that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments that clarifies the steps required to determine bifurcation of an embedded derivative. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In October 2016, the FASB issued an update to their accounting guidance on the recognition of current and deferred income taxes for intra-entity asset transfers. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company early adopted this guidance in the first quarter of 2017 using the modified retrospective method, which requires a cumulative adjustment to retained earnings as of the beginning of the period of adoption. The cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet was a reduction in both the other assets and retained earnings line items of $237.8 million . In October 2016, the FASB issued an update to their accounting guidance that changes how a single decision maker will consider its indirect interests when performing the primary beneficiary analysis under the variable interest entity model. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The Company early adopted this guidance in the first quarter of 2017 on a retrospective basis and the Consolidated Statements of Cash Flows included herein reflect $4.1 million and $4.4 million of restricted cash for September 2017 and September 2016, respectively. The Company’s restricted cash is generally held as collateral for certain transactions. In January 2017, the FASB issued an update that simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. The single quantitative step test requires companies to compare the fair value of a reporting unit with its carrying amount and record an impairment charge for the amount that the carrying amount exceeds the fair value, up to the total amount of goodwill allocated to that reporting unit. VF will continue to have the option of first performing a qualitative assessment to determine whether it is necessary to complete the quantitative goodwill impairment test. The Company early adopted this guidance in the third quarter of 2017 by applying the single quantitative step test to our interim goodwill impairment analysis and recorded an impairment charge of $104.7 million . Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The standard prescribes a five-step approach to revenue recognition: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. A cross-functional implementation team has completed VF’s impact analysis and is commencing the disclosure assessment phase of the project. The new guidance is not expected to have a material impact on VF’s significant revenue streams within the wholesale, direct-to-consumer and royalty channels. VF is in the process of concluding on the impact on less significant revenue streams within those channels. The Company expects to adopt the new standard utilizing the modified retrospective method in the first quarter of fiscal 2019. In January 2016, the FASB issued an update to their accounting guidance related to the recognition and measurement of certain financial instruments. This guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In February 2016, the FASB issued a new accounting standard on leasing. This new standard will require companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The Company has formed a cross-functional implementation team to address the standard and has started the design and assessment phase of the project. This guidance will be effective for VF in the first quarter of fiscal 2020 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the Company’s significant number of leases, VF expects this standard will have a material impact on VF’s Consolidated Balance Sheets but does not expect it to have a material impact on the Consolidated Statements of Income. The Company expects to adopt the new standard in the first quarter of fiscal 2020. In March 2016, the FASB issued an update to their accounting guidance on extinguishments of financial liabilities that exempts prepaid stored-value products, or gift cards, from the existing guidance. The updated guidance requires that gift card liabilities be subject to breakage accounting, consistent with the new revenue recognition standard discussed above. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In June 2016, the FASB issued an update to their accounting guidance on the measurement of credit losses on financial instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. This guidance will be effective for VF in the first quarter of fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2016, the FASB issued an update to their accounting guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In January 2017, the FASB issued an update that provides a more narrow framework to be used in evaluating whether a set of assets and activities constitutes a business. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company will apply this guidance to any transactions after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. In March 2017, the FASB issued an update which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and actuarial gains and losses) separately and outside of operating income. The amendments in this update specify that only the service cost component is eligible for capitalization, which is consistent with VF’s current practice. The presentation change in the Consolidated Statements of Income will be applied on a retrospective basis. This guidance will be effective for VF beginning in the first quarter of fiscal 2019. Upon adoption, VF will reclassify the other components of net periodic benefit costs from the selling, general and administrative expenses line item in the Consolidated Statements of Income. Except for the reclassification within the Consolidated Statements of Income noted above, the Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In May 2017, the FASB issued an update that amends the scope of modification accounting for share-based payment arrangements. This update provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. This guidance will be effective for VF beginning in the first quarter of fiscal 2019 with early adoption permitted. The guidance is required to be applied prospectively to an award modified on or after the adoption date. The Company will apply this guidance to any future changes made to the terms or conditions of share-based payment awards after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. In August 2017, the FASB issued an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. This guidance will be effective for VF in the first quarter of fiscal 2020 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the fourth quarter of 2016, VF leadership approved restructuring charges related to cost alignment initiatives, and recognized $58.1 million of restructuring charges. The Company did not recognize additional costs associated with these actions in the first nine months of 2017 and does not expect to recognize significant additional costs relating to these actions for the remainder of 2017. The Company expects a substantial amount of the restructuring activities to be completed by the end of 2017. The activity in the restructuring accrual for the nine-month period ended September 2017 is as follows: In thousands Severance Other Total Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 Cash payments (24,515 ) (878 ) (25,393 ) Adjustments to accruals (3,001 ) — (3,001 ) Currency translation 824 — 824 Amounts recorded in accrued liabilities at September 2017 $ 26,028 $ — $ 26,028 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 2, 2017, VF completed the acquisition of Williamson-Dickie for $800.7 million in cash, subject to working capital and other adjustments. Refer to Note B for additional information. On October 19, 2017 , VF’s Board of Directors declared a quarterly cash dividend of $0.46 per share, payable on December 18, 2017 to stockholders of record on December 8, 2017 . On November 1, 2017, VF repaid $250.0 million of 5.95% fixed-rate notes in accordance with the terms of the notes. On November 1, 2017, VF entered into a definitive agreement to acquire 100% of the stock of Icebreaker Holdings, Ltd., a privately held company based in Auckland, New Zealand. The transaction is expected to close in April 2018, and the purchase price is not material to VF. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | VF Corporation (together with its subsidiaries, collectively known as “VF” or “the Company”) uses a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended September 2017 , December 2016 and September 2016 relate to the fiscal periods ended on September 30, 2017 , December 31, 2016 and October 1, 2016 , respectively. During the first quarter of 2017, the Company approved a change in fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31. Accordingly, the Company’s 2017 fiscal year will end as planned on December 30, 2017, followed by a three-month transition period from December 31, 2017 through March 31, 2018. The Company’s next fiscal year will run from April 1, 2018 through March 30, 2019 (“fiscal 2019”). On April 28, 2017, VF completed the sale of its Licensed Sports Group (“LSG”) business. As a result, VF reported the operating results for this business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets through the date of sale. In conjunction with the LSG divestiture, VF executed its plan to entirely exit the licensing business and has included the JanSport ® brand collegiate business as discontinued operations in our Consolidated Statements of Income and Consolidated Balance Sheets for all periods presented. In addition, VF completed the sale of its Contemporary Brands coalition on August 26, 2016, and has reported the operating results for this business in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income for the three and nine months ended September 2016. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note C for additional information on discontinued operations. The accompanying unaudited condensed 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 in the United States of America (“GAAP”) for complete financial statements. Similarly, the December 2016 condensed 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 condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and nine months ended September 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 30, 2017 . 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 2016 (“ 2016 Form 10-K”). |
Fair Value Measurement | 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. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In July 2015, the FASB issued an update to their accounting guidance related to inventory that changes the measurement principle from lower of cost or market to lower of cost or net realizable value. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. The guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments when there is a change in the counterparty to a derivative contract (novation). The new guidance clarifies that the novation of a derivative contract that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments that clarifies the steps required to determine bifurcation of an embedded derivative. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In October 2016, the FASB issued an update to their accounting guidance on the recognition of current and deferred income taxes for intra-entity asset transfers. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company early adopted this guidance in the first quarter of 2017 using the modified retrospective method, which requires a cumulative adjustment to retained earnings as of the beginning of the period of adoption. The cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet was a reduction in both the other assets and retained earnings line items of $237.8 million . In October 2016, the FASB issued an update to their accounting guidance that changes how a single decision maker will consider its indirect interests when performing the primary beneficiary analysis under the variable interest entity model. This guidance became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The Company early adopted this guidance in the first quarter of 2017 on a retrospective basis and the Consolidated Statements of Cash Flows included herein reflect $4.1 million and $4.4 million of restricted cash for September 2017 and September 2016, respectively. The Company’s restricted cash is generally held as collateral for certain transactions. In January 2017, the FASB issued an update that simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. The single quantitative step test requires companies to compare the fair value of a reporting unit with its carrying amount and record an impairment charge for the amount that the carrying amount exceeds the fair value, up to the total amount of goodwill allocated to that reporting unit. VF will continue to have the option of first performing a qualitative assessment to determine whether it is necessary to complete the quantitative goodwill impairment test. The Company early adopted this guidance in the third quarter of 2017 by applying the single quantitative step test to our interim goodwill impairment analysis and recorded an impairment charge of $104.7 million . Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The standard prescribes a five-step approach to revenue recognition: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. A cross-functional implementation team has completed VF’s impact analysis and is commencing the disclosure assessment phase of the project. The new guidance is not expected to have a material impact on VF’s significant revenue streams within the wholesale, direct-to-consumer and royalty channels. VF is in the process of concluding on the impact on less significant revenue streams within those channels. The Company expects to adopt the new standard utilizing the modified retrospective method in the first quarter of fiscal 2019. In January 2016, the FASB issued an update to their accounting guidance related to the recognition and measurement of certain financial instruments. This guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In February 2016, the FASB issued a new accounting standard on leasing. This new standard will require companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The Company has formed a cross-functional implementation team to address the standard and has started the design and assessment phase of the project. This guidance will be effective for VF in the first quarter of fiscal 2020 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the Company’s significant number of leases, VF expects this standard will have a material impact on VF’s Consolidated Balance Sheets but does not expect it to have a material impact on the Consolidated Statements of Income. The Company expects to adopt the new standard in the first quarter of fiscal 2020. In March 2016, the FASB issued an update to their accounting guidance on extinguishments of financial liabilities that exempts prepaid stored-value products, or gift cards, from the existing guidance. The updated guidance requires that gift card liabilities be subject to breakage accounting, consistent with the new revenue recognition standard discussed above. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In June 2016, the FASB issued an update to their accounting guidance on the measurement of credit losses on financial instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. This guidance will be effective for VF in the first quarter of fiscal 2021 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2016, the FASB issued an update to their accounting guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In January 2017, the FASB issued an update that provides a more narrow framework to be used in evaluating whether a set of assets and activities constitutes a business. This guidance will be effective for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company will apply this guidance to any transactions after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. In March 2017, the FASB issued an update which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and actuarial gains and losses) separately and outside of operating income. The amendments in this update specify that only the service cost component is eligible for capitalization, which is consistent with VF’s current practice. The presentation change in the Consolidated Statements of Income will be applied on a retrospective basis. This guidance will be effective for VF beginning in the first quarter of fiscal 2019. Upon adoption, VF will reclassify the other components of net periodic benefit costs from the selling, general and administrative expenses line item in the Consolidated Statements of Income. Except for the reclassification within the Consolidated Statements of Income noted above, the Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In May 2017, the FASB issued an update that amends the scope of modification accounting for share-based payment arrangements. This update provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. This guidance will be effective for VF beginning in the first quarter of fiscal 2019 with early adoption permitted. The guidance is required to be applied prospectively to an award modified on or after the adoption date. The Company will apply this guidance to any future changes made to the terms or conditions of share-based payment awards after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. In August 2017, the FASB issued an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. This guidance will be effective for VF in the first quarter of fiscal 2020 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table summarizes the major line items included in the income (loss) from discontinued operations for the divestitures of the licensing business and Contemporary Brands coalition: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Revenues $ 6,498 $ 203,696 $ 160,323 $ 603,651 Cost of goods sold 6,580 127,876 121,172 362,215 Selling, general and administrative expenses 1,341 51,714 36,059 173,574 Interest expense, net (1 ) (21 ) (26 ) (183 ) Other income (expense), net — 7 — 3 Income (loss) from discontinued operations before income taxes (1,424 ) 24,092 3,066 67,682 Gain (loss) on the sale of discontinued operations before income taxes 411 (4,439 ) (9,506 ) (154,275 ) Total income (loss) from discontinued operations before income taxes (1,013 ) 19,653 (6,440 ) (86,593 ) Income tax (expense) benefit (a) 389 (6,388 ) (4,676 ) 32,714 Income (loss) from discontinued operations, net of tax $ (624 ) $ 13,265 $ (11,116 ) $ (53,879 ) (a) Income tax (expense) benefit for the nine months ended September 2017 includes $8.6 million of deferred tax expense related to GAAP and tax basis differences for LSG. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. In thousands September 2017 December 2016 September 2016 Accounts receivable, net $ — $ 36,285 $ 48,768 Inventories — 98,025 102,450 Other current assets — 1,535 2,009 Property, plant and equipment, net 315 13,640 14,297 Intangible assets — 42,427 44,833 Goodwill — 28,636 28,636 Other assets — 692 770 Total assets of discontinued operations (a) $ 315 $ 221,240 $ 241,763 Accounts payable $ — $ 21,674 $ 15,318 Accrued liabilities — 13,531 9,765 Other liabilities — 791 801 Deferred income tax liabilities (b) — (4,081 ) (4,140 ) Total liabilities of discontinued operations (a) $ — $ 31,915 $ 21,744 (a) Amounts at December 2016 and September 2016 have been classified as current and long-term in the Consolidated Balance Sheets. (b) Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | In thousands September 2017 December 2016 September 2016 Finished products $ 1,717,516 $ 1,278,504 $ 1,706,612 Work-in-process 106,120 97,725 96,727 Raw materials 85,927 95,071 94,207 Total inventories $ 1,909,563 $ 1,471,300 $ 1,897,546 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | September 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 265,725 $ 134,246 $ 131,479 $ 128,422 License agreements 28 years Accelerated 109,370 62,278 47,092 49,682 Trademark 16 years Straight-line 58,132 6,358 51,774 54,499 Other 9 years Straight-line 9,658 3,846 5,812 3,297 Amortizable intangible assets, net 236,157 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,700,365 1,561,371 Intangible assets, net $ 1,936,522 $ 1,797,271 |
Indefinite Lived Intangible Assets | September 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 265,725 $ 134,246 $ 131,479 $ 128,422 License agreements 28 years Accelerated 109,370 62,278 47,092 49,682 Trademark 16 years Straight-line 58,132 6,358 51,774 54,499 Other 9 years Straight-line 9,658 3,846 5,812 3,297 Amortizable intangible assets, net 236,157 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,700,365 1,561,371 Intangible assets, net $ 1,936,522 $ 1,797,271 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill are summarized by business segment as follows: In thousands Outdoor & Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2016 $ 1,310,133 $ 210,765 $ 30,111 $ 157,314 $ 1,708,323 Impairment charge — — — (104,651 ) (104,651 ) Currency translation 32,260 6,941 — — 39,201 Balance, September 2017 $ 1,342,393 $ 217,706 $ 30,111 $ 52,663 $ 1,642,873 |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Pension Cost | The components of pension cost for VF’s defined benefit plans were as follows: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Service cost – benefits earned during the period $ 6,202 $ 6,478 $ 18,733 $ 19,434 Interest cost on projected benefit obligations 14,730 16,991 44,254 51,066 Expected return on plan assets (23,825 ) (24,869 ) (70,977 ) (74,714 ) Amortization of deferred amounts: Net deferred actuarial losses 10,030 16,303 31,414 48,928 Deferred prior service costs 643 645 2,000 1,937 Net periodic pension cost $ 7,780 $ 15,548 $ 25,424 $ 46,651 |
Capital and Accumulated Other32
Capital and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shares Held for Deferred Compensation Plans | During the first nine months of 2017 , the Company purchased 6,540 shares of Common Stock in open market transactions for $0.4 million . Balances related to shares held for deferred compensation plans were as follows: In thousands, except share amounts September 2017 December 2016 September 2016 Shares held for deferred compensation plans 320,615 439,667 450,067 Cost of shares held for deferred compensation plans $ 3,973 $ 5,464 $ 5,434 |
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in Accumulated OCI | The changes in accumulated OCI, net of related taxes, are as follows: Three Months Ended September 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2017 $ (633,209 ) $ (275,089 ) $ (22,299 ) $ (930,597 ) Other comprehensive income (loss) before reclassifications 65,245 — (51,826 ) 13,419 Amounts reclassified from accumulated other comprehensive income (loss) — 6,930 (4,648 ) 2,282 Net other comprehensive income (loss) 65,245 6,930 (56,474 ) 15,701 Balance, September 2017 $ (567,964 ) $ (268,159 ) $ (78,773 ) $ (914,896 ) Three Months Ended September 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2016 $ (675,213 ) $ (351,298 ) $ 25,056 $ (1,001,455 ) Other comprehensive income (loss) before reclassifications 4,662 — 5,896 10,558 Amounts reclassified from accumulated other comprehensive income (loss) — 10,407 (17,530 ) (7,123 ) Net other comprehensive income (loss) 4,662 10,407 (11,634 ) 3,435 Balance, September 2016 $ (670,551 ) $ (340,891 ) $ 13,422 $ (998,020 ) Nine Months Ended September 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ (1,041,463 ) Other comprehensive income (loss) before reclassifications 226,615 12,253 (107,836 ) 131,032 Amounts reclassified from accumulated other comprehensive income (loss) — 22,285 (26,750 ) (4,465 ) Net other comprehensive income (loss) 226,615 34,538 (134,586 ) 126,567 Balance, September 2017 $ (567,964 ) $ (268,159 ) $ (78,773 ) $ (914,896 ) Nine Months Ended September 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2015 $ (718,169 ) $ (372,195 ) $ 47,142 $ (1,043,222 ) Other comprehensive income (loss) before reclassifications 47,618 — 20,331 67,949 Amounts reclassified from accumulated other comprehensive income (loss) — 31,304 (54,051 ) (22,747 ) Net other comprehensive income (loss) 47,618 31,304 (33,720 ) 45,202 Balance, September 2016 $ (670,551 ) $ (340,891 ) $ 13,422 $ (998,020 ) The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: In thousands September 2017 December 2016 September 2016 Foreign currency translation and other $ (567,964 ) $ (794,579 ) $ (670,551 ) Defined benefit pension plans (268,159 ) (302,697 ) (340,891 ) Derivative financial instruments (78,773 ) 55,813 13,422 Accumulated other comprehensive loss $ (914,896 ) $ (1,041,463 ) $ (998,020 ) |
Reclassifications Out of Accumulated OCI | Reclassifications out of accumulated OCI are as follows: In thousands Affected Line Item in the Consolidated Statements of Income Three Months Ended September Nine Months Ended September Details About Accumulated Other Comprehensive Income (Loss) Components 2017 2016 2017 2016 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (10,030 ) $ (16,303 ) $ (31,414 ) $ (48,928 ) Deferred prior service costs (a) (643 ) (645 ) (2,000 ) (1,937 ) Pension curtailment loss Income (loss) from discontinued operations, net of tax — — (1,105 ) — Total before tax (10,673 ) (16,948 ) (34,519 ) (50,865 ) Tax benefit 3,743 6,541 12,234 19,561 Net of tax (6,930 ) (10,407 ) (22,285 ) (31,304 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 11,614 14,676 25,074 11,997 Foreign exchange contracts Cost of goods sold (4,164 ) 15,485 12,763 80,094 Foreign exchange contracts Selling, general and administrative expenses (882 ) (1,098 ) (1,212 ) (3,611 ) Foreign exchange contracts Other income (expense), net (774 ) 526 (688 ) 2,653 Interest rate contracts Interest expense (1,185 ) (1,131 ) (3,518 ) (3,356 ) Total before tax 4,609 28,458 32,419 87,777 Tax benefit (expense) 39 (10,928 ) (5,669 ) (33,726 ) Net of tax 4,648 17,530 26,750 54,051 Total reclassifications for the period Net of tax $ (2,282 ) $ 7,123 $ 4,465 $ 22,747 (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note H for additional details). |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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: 2017 Expected volatility 23% to 30% Weighted average expected volatility 24% Expected term (in years) 6.3 to 7.7 Weighted average dividend yield 2.8% Risk-free interest rate 0.7% to 2.4% Weighted average fair value at date of grant $9.90 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF’s reportable segments is as follows: Three Months Ended September Nine Months Ended September In thousands 2017 2016 2017 2016 Coalition revenues: Outdoor & Action Sports $ 2,502,590 $ 2,326,436 $ 5,647,587 $ 5,378,272 Jeanswear 697,701 701,416 1,945,950 2,041,186 Imagewear 138,885 127,992 423,859 404,633 Sportswear 140,272 140,705 352,848 373,977 Other 29,370 31,167 79,832 84,531 Total coalition revenues $ 3,508,818 $ 3,327,716 $ 8,450,076 $ 8,282,599 Coalition profit: (a) Outdoor & Action Sports $ 524,489 $ 491,015 $ 877,206 $ 842,378 Jeanswear 121,218 142,427 323,994 388,564 Imagewear 22,377 23,981 72,349 74,497 Sportswear 17,488 15,080 27,764 26,156 Other (737 ) (341 ) (3,225 ) (3,523 ) Total coalition profit 684,835 672,162 1,298,088 1,328,072 Impairment of goodwill (b) (104,651 ) — (104,651 ) — Corporate and other expenses (a) (96,567 ) (65,012 ) (252,044 ) (211,910 ) Interest expense, net (22,537 ) (22,568 ) (63,332 ) (63,982 ) Income from continuing operations before income taxes $ 461,080 $ 584,582 $ 878,061 $ 1,052,180 (a) Certain corporate overhead and other costs of $6.0 million and $18.2 million for the three and nine -month periods ended September 2016, respectively, previously allocated to the Imagewear and Outdoor & Action Sports coalitions for segment reporting purposes, have been reallocated to continuing operations as discussed in Note C. (b) Represents goodwill impairment charge in 2017 related to the Sportswear coalition as discussed in Notes G and N. The impairment charge was excluded from the profit of the Sportswear coalition since it is not part of the ongoing operations of the business. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended September Nine Months Ended September In thousands, except per share amounts 2017 2016 2017 2016 Earnings per share – basic: Income from continuing operations $ 386,764 $ 485,224 $ 716,308 $ 863,652 Weighted average common shares outstanding 393,258 413,461 400,771 417,067 Earnings per share from continuing operations $ 0.98 $ 1.17 $ 1.79 $ 2.07 Earnings per share – diluted: Income from continuing operations $ 386,764 $ 485,224 $ 716,308 $ 863,652 Weighted average common shares outstanding 393,258 413,461 400,771 417,067 Incremental shares from stock options and other dilutive securities 4,126 5,779 3,848 6,410 Adjusted weighted average common shares outstanding 397,384 419,240 404,619 423,477 Earnings per share from continuing operations $ 0.97 $ 1.16 $ 1.77 $ 2.04 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 September 2017 Financial assets: Cash equivalents: Money market funds $ 405,045 $ 405,045 $ — $ — Time deposits 8,307 8,307 — — Derivative financial instruments 26,658 — 26,658 — Investment securities 202,721 189,744 12,977 — Financial liabilities: Derivative financial instruments 89,212 — 89,212 — Deferred compensation 233,151 — 233,151 — December 2016 Financial assets: Cash equivalents: Money market funds $ 840,842 $ 840,842 $ — $ — Time deposits 14,774 14,774 — — Derivative financial instruments 103,340 — 103,340 — Investment securities 196,738 179,673 17,065 — Financial liabilities: Derivative financial instruments 25,574 — 25,574 — Deferred compensation 232,214 — 232,214 — (a) There were no transfers among the levels within the fair value hierarchy during the first nine months of 2017 or the year ended December 2016 . |
Derivative Financial Instrume37
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Derivatives on Individual Contract Basis | The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses In thousands September 2017 December 2016 September 2016 September 2017 December 2016 September 2016 Foreign currency exchange contracts designated as hedging instruments $ 26,451 $ 103,340 $ 75,497 $ (88,593 ) $ (25,292 ) $ (31,996 ) Foreign currency exchange contracts not designated as hedging instruments 207 — — (619 ) (282 ) (185 ) Total derivatives $ 26,658 $ 103,340 $ 75,497 $ (89,212 ) $ (25,574 ) $ (32,181 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2017 December 2016 September 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 26,658 $ (89,212 ) $ 103,340 $ (25,574 ) $ 75,497 $ (32,181 ) Gross amounts not offset in the Consolidated Balance Sheets (26,001 ) 26,001 (22,341 ) 22,341 (19,328 ) 19,328 Net amounts $ 657 $ (63,211 ) $ 80,999 $ (3,233 ) $ 56,169 $ (12,853 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2017 December 2016 September 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 26,658 $ (89,212 ) $ 103,340 $ (25,574 ) $ 75,497 $ (32,181 ) Gross amounts not offset in the Consolidated Balance Sheets (26,001 ) 26,001 (22,341 ) 22,341 (19,328 ) 19,328 Net amounts $ 657 $ (63,211 ) $ 80,999 $ (3,233 ) $ 56,169 $ (12,853 ) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows: In thousands September 2017 December 2016 September 2016 Other current assets $ 23,387 $ 84,519 $ 66,231 Accrued liabilities (75,266 ) (18,574 ) (28,852 ) Other assets 3,271 18,821 9,266 Other liabilities (13,946 ) (7,000 ) (3,329 ) |
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 September Gain (Loss) on Derivatives Recognized in OCI Nine Months Ended September Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency exchange $ (51,147 ) $ 9,571 $ (117,580 ) $ 32,837 In thousands Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended September Gain (Loss) Reclassified from Accumulated OCI into Income Nine Months Ended September Location of Gain (Loss) 2017 2016 2017 2016 Net sales $ 11,614 $ 14,676 $ 25,074 $ 11,997 Cost of goods sold (4,164 ) 15,485 12,763 80,094 Selling, general and administrative expenses (882 ) (1,098 ) (1,212 ) (3,611 ) Other income (expense), net (774 ) 526 (688 ) 2,653 Interest expense (1,185 ) (1,131 ) (3,518 ) (3,356 ) Total $ 4,609 $ 28,458 $ 32,419 $ 87,777 |
Effects of Fair Value Hedging Included in Consolidated Statements of Income | Following is a summary of these derivatives included in VF’s Consolidated Statements of Income: In thousands Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income Three Months Ended September Gain (Loss) on Derivatives Recognized in Income Nine Months Ended September 2017 2016 2017 2016 Foreign currency exchange Cost of goods sold $ (927 ) $ (510 ) $ (294 ) $ 225 Foreign currency exchange Other income (expense), net (339 ) (110 ) (2,078 ) (1,196 ) Total $ (1,266 ) $ (620 ) $ (2,372 ) $ (971 ) |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Activity in Restructuring Accrual | The activity in the restructuring accrual for the nine-month period ended September 2017 is as follows: In thousands Severance Other Total Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 Cash payments (24,515 ) (878 ) (25,393 ) Adjustments to accruals (3,001 ) — (3,001 ) Currency translation 824 — 824 Amounts recorded in accrued liabilities at September 2017 $ 26,028 $ — $ 26,028 |
Acquisition (Details)
Acquisition (Details) - Williamson-Dickie Mfg. Co. - USD ($) $ in Millions | Oct. 02, 2017 | Sep. 30, 2017 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 4.9 | $ 4.9 | |
Subsequent Event | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage acquired | 100.00% | ||
Payments to acquire businesses | $ 800.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Apr. 28, 2017 | Aug. 26, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (loss) from discontinued operations, net of tax | $ (624) | $ 13,265 | $ (11,116) | $ (53,879) | ||||
Discontinued Operations, Disposed of by Sale | LSG | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | $ 213,500 | |||||||
After-tax income (loss) on sale | (4,100) | |||||||
Amount of adjustment | 300 | |||||||
Income (loss) from discontinued operation during phase-out period | 300 | (4,600) | ||||||
Income (loss) from discontinued operations, net of tax | 18,100 | 45,100 | ||||||
Discontinued Operations, Disposed of by Sale | JanSport Collegiate Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Fair value of assets held-for-sale | 315 | 315 | 315 | |||||
Discontinued Operations, Disposed of by Sale | Contemporary Brands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | $ 116,900 | |||||||
After-tax income (loss) on sale | (3,800) | (104,400) | ||||||
Income (loss) from discontinued operations, net of tax | (4,500) | (98,400) | ||||||
Discontinued Operations, Disposed of by Sale | Contemporary Brands and Licensing Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Depreciation and amortization | 10,900 | |||||||
Discontinued Operations, Disposed of by Sale | Licensing Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Fair value of assets held-for-sale | 241,763 | 241,763 | $ 221,240 | |||||
Depreciation and amortization | 3,000 | |||||||
Discontinued Operations, Held-for-sale | JanSport Collegiate Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (loss) from discontinued operation during phase-out period | (900) | (6,500) | ||||||
Income (loss) from discontinued operations, net of tax | $ (300) | $ (600) | ||||||
Fair value of assets held-for-sale | $ 300 | $ 300 | $ 300 | |||||
Minimum | Discontinued Operations, Disposed of by Sale | LSG | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Support services period (up to) | 3 months | |||||||
Maximum | Discontinued Operations, Disposed of by Sale | LSG | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Support services period (up to) | 24 months |
Discontinued Operations - Summa
Discontinued Operations - Summary of Major Line Items included in Income (Loss) from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Licensing Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | $ 6,498 | $ 160,323 | ||
Cost of goods sold | 6,580 | 121,172 | ||
Selling, general and administrative expenses | 1,341 | 36,059 | ||
Interest expense, net | (1) | (26) | ||
Other income (expense), net | 0 | 0 | ||
Income (loss) from discontinued operations before income taxes | (1,424) | 3,066 | ||
Gain (loss) on the sale of discontinued operations before income taxes | 411 | (9,506) | ||
Total income (loss) from discontinued operations before income taxes | (1,013) | (6,440) | ||
Income tax (expense) benefit | 389 | (4,676) | ||
Income (loss) from discontinued operations, net of tax | $ (624) | (11,116) | ||
Contemporary Brands and Licensing Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | $ 203,696 | $ 603,651 | ||
Cost of goods sold | 127,876 | 362,215 | ||
Selling, general and administrative expenses | 51,714 | 173,574 | ||
Interest expense, net | (21) | (183) | ||
Other income (expense), net | 7 | 3 | ||
Income (loss) from discontinued operations before income taxes | 24,092 | 67,682 | ||
Gain (loss) on the sale of discontinued operations before income taxes | (4,439) | (154,275) | ||
Total income (loss) from discontinued operations before income taxes | 19,653 | (86,593) | ||
Income tax (expense) benefit | (6,388) | 32,714 | ||
Income (loss) from discontinued operations, net of tax | $ 13,265 | $ (53,879) | ||
LSG | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred tax expense related to GAAP and tax basis differences | $ 8,600 |
Discontinued Operations - Sum42
Discontinued Operations - Summary of Carrying Amounts of Assets and Liabilities for Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other assets | $ 0 | $ 85,395 | $ 88,536 |
JanSport Collegiate Business | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts receivable, net | 0 | ||
Inventories | 0 | ||
Other current assets | 0 | ||
Property, plant and equipment, net | 315 | ||
Intangible assets | 0 | ||
Goodwill | 0 | ||
Other assets | 0 | ||
Total assets of discontinued operations | 315 | ||
Accounts payable | 0 | ||
Accrued liabilities | 0 | ||
Other liabilities | 0 | ||
Deferred income tax liabilities | 0 | ||
Total liabilities of discontinued operations | $ 0 | ||
Licensing Business | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts receivable, net | 36,285 | 48,768 | |
Inventories | 98,025 | 102,450 | |
Other current assets | 1,535 | 2,009 | |
Property, plant and equipment, net | 13,640 | 14,297 | |
Intangible assets | 42,427 | 44,833 | |
Goodwill | 28,636 | 28,636 | |
Other assets | 692 | 770 | |
Total assets of discontinued operations | 221,240 | 241,763 | |
Accounts payable | 21,674 | 15,318 | |
Accrued liabilities | 13,531 | 9,765 | |
Other liabilities | 791 | 801 | |
Deferred income tax liabilities | (4,081) | (4,140) | |
Total liabilities of discontinued operations | $ 31,915 | $ 21,744 |
Sale of Accounts Receivable - A
Sale of Accounts Receivable - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Dec. 31, 2016 | |
Receivables [Abstract] | |||||
Maximum amount of accounts receivable sold at any point in time (up to) | $ 367.5 | $ 367.5 | $ 367.5 | $ 367.5 | |
Sale of accounts receivable | 871.6 | ||||
Accounts receivable removed related to sale of accounts receivable | 191.4 | 212.3 | 191.4 | 212.3 | $ 209.5 |
Funding fee | $ 0.8 | $ 0.8 | $ 2.7 | $ 2.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 1,717,516 | $ 1,278,504 | $ 1,706,612 |
Work-in-process | 106,120 | 97,725 | 96,727 |
Raw materials | 85,927 | 95,071 | 94,207 |
Total inventories | $ 1,909,563 | $ 1,471,300 | $ 1,897,546 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, net carrying amount | $ 236,157 | $ 235,900 | |
Indefinite-lived intangible assets: Trademarks and trade names | 1,700,365 | 1,561,371 | |
Intangible assets, net | $ 1,936,522 | 1,797,271 | $ 1,925,955 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 20 years | ||
Amortizable intangible assets, cost | $ 265,725 | ||
Amortizable intangible assets, accumulated amortization | 134,246 | ||
Amortizable intangible assets, net carrying amount | $ 131,479 | 128,422 | |
License agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 28 years | ||
Amortizable intangible assets, cost | $ 109,370 | ||
Amortizable intangible assets, accumulated amortization | 62,278 | ||
Amortizable intangible assets, net carrying amount | $ 47,092 | 49,682 | |
Trademark | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 16 years | ||
Amortizable intangible assets, cost | $ 58,132 | ||
Amortizable intangible assets, accumulated amortization | 6,358 | ||
Amortizable intangible assets, net carrying amount | $ 51,774 | 54,499 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 9 years | ||
Amortizable intangible assets, cost | $ 9,658 | ||
Amortizable intangible assets, accumulated amortization | 3,846 | ||
Amortizable intangible assets, net carrying amount | $ 5,812 | $ 3,297 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 5.6 | $ 16.3 |
Estimated amortization expense, 2017 | 21.9 | 21.9 |
Estimated amortization expense, 2018 | 21.9 | 21.9 |
Estimated amortization expense, 2019 | 21.3 | 21.3 |
Estimated amortization expense, 2020 | 20.4 | 20.4 |
Estimated amortization expense, 2021 | $ 19.4 | $ 19.4 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 1,708,323 | |||
Impairment charge | $ (104,651) | $ 0 | (104,651) | $ 0 |
Currency translation | 39,201 | |||
Goodwill, ending balance | 1,642,873 | $ 1,769,838 | 1,642,873 | $ 1,769,838 |
Outdoor & Action Sports | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 1,310,133 | |||
Impairment charge | 0 | |||
Currency translation | 32,260 | |||
Goodwill, ending balance | 1,342,393 | 1,342,393 | ||
Jeanswear | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 210,765 | |||
Impairment charge | 0 | |||
Currency translation | 6,941 | |||
Goodwill, ending balance | 217,706 | 217,706 | ||
Imagewear | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 30,111 | |||
Impairment charge | 0 | |||
Currency translation | 0 | |||
Goodwill, ending balance | 30,111 | 30,111 | ||
Sportswear | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 157,314 | |||
Impairment charge | (104,651) | |||
Currency translation | 0 | |||
Goodwill, ending balance | $ 52,663 | $ 52,663 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Jan. 02, 2010 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||||
Impairment charge | $ 104,651 | $ 0 | $ 104,651 | $ 0 | ||
Sportswear | ||||||
Goodwill [Line Items] | ||||||
Impairment charge | 104,651 | |||||
Accumulated impairment charges | 163,200 | 163,200 | $ 58,500 | |||
Outdoor & Action Sports | ||||||
Goodwill [Line Items] | ||||||
Impairment charge | 0 | |||||
Accumulated impairment charges | 82,700 | 82,700 | $ 82,700 | |||
Nautica | Sportswear | ||||||
Goodwill [Line Items] | ||||||
Impairment charge | $ 104,700 | $ 104,700 | $ 58,500 |
Pension Plans - Components of P
Pension Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost – benefits earned during the period | $ 6,202 | $ 6,478 | $ 18,733 | $ 19,434 |
Interest cost on projected benefit obligations | 14,730 | 16,991 | 44,254 | 51,066 |
Expected return on plan assets | (23,825) | (24,869) | (70,977) | (74,714) |
Amortization of deferred amounts: | ||||
Net deferred actuarial losses | 10,030 | 16,303 | 31,414 | 48,928 |
Deferred prior service costs | 643 | 645 | 2,000 | 1,937 |
Net periodic pension cost | $ 7,780 | $ 15,548 | $ 25,424 | $ 46,651 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined benefit pension plan contributed | $ 7.8 |
Defined benefit pension plan additional contributions to make during the remainder of the year | 7.2 |
Discontinued Operations, Disposed of by Sale | Licensing Business | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension curtailment | $ 1.1 |
Capital and Accumulated Other51
Capital and Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, shares, purchased (in shares) | 22,200,000 | ||
Common Stock, value, purchased | $ 1,200 | ||
Treasury shares restored as unissued status (in shares) | 22,300,000 | ||
Treasury shares (in shares) | 0 | 0 | 2,600 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Deferred Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, shares, purchased (in shares) | 6,540 | ||
Common Stock held in trust for deferred compensation plan | $ 0.4 |
Capital and Accumulated Other52
Capital and Accumulated Other Comprehensive Loss - Shares Held for Deferred Compensation Plans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Equity [Abstract] | |||
Shares held for deferred compensation plans (in shares) | 320,615 | 439,667 | 450,067 |
Cost of shares held for deferred compensation plans | $ 3,973 | $ 5,464 | $ 5,434 |
Capital and Accumulated Other53
Capital and Accumulated Other Comprehensive Loss - Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Jan. 02, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ 3,937,420 | $ 4,940,921 | $ 4,872,777 | |||
Foreign currency translation and other | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | (567,964) | (794,579) | (670,551) | |||
Defined Benefit Pension Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | (268,159) | $ (275,089) | (302,697) | (340,891) | $ (351,298) | $ (372,195) |
Derivative Financial Instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | (78,773) | (22,299) | 55,813 | 13,422 | 25,056 | 47,142 |
Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (914,896) | $ (930,597) | $ (1,041,463) | $ (998,020) | $ (1,001,455) | $ (1,043,222) |
Capital and Accumulated Other54
Capital and Accumulated Other Comprehensive Loss - Changes in Accumulated OCI, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 4,940,921 | |||
Other comprehensive income (loss) before reclassifications | $ 13,419 | $ 10,558 | 131,032 | $ 67,949 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,282 | (7,123) | (4,465) | (22,747) |
Net other comprehensive income (loss) | 15,701 | 3,435 | 126,567 | 45,202 |
Balance | 3,937,420 | 4,872,777 | 3,937,420 | 4,872,777 |
Foreign Currency Translation and Other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (633,209) | (675,213) | (794,579) | (718,169) |
Other comprehensive income (loss) before reclassifications | 65,245 | 4,662 | 226,615 | 47,618 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) | 65,245 | 4,662 | 226,615 | 47,618 |
Balance | (567,964) | (670,551) | (567,964) | (670,551) |
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (275,089) | (351,298) | (302,697) | (372,195) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 12,253 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,930 | 10,407 | 22,285 | 31,304 |
Net other comprehensive income (loss) | 6,930 | 10,407 | 34,538 | 31,304 |
Balance | (268,159) | (340,891) | (268,159) | (340,891) |
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (22,299) | 25,056 | 55,813 | 47,142 |
Other comprehensive income (loss) before reclassifications | (51,826) | 5,896 | (107,836) | 20,331 |
Amounts reclassified from accumulated other comprehensive income (loss) | (4,648) | (17,530) | (26,750) | (54,051) |
Net other comprehensive income (loss) | (56,474) | (11,634) | (134,586) | (33,720) |
Balance | (78,773) | 13,422 | (78,773) | 13,422 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (930,597) | (1,001,455) | (1,041,463) | (1,043,222) |
Balance | $ (914,896) | $ (998,020) | $ (914,896) | $ (998,020) |
Capital and Accumulated Other55
Capital and Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period | $ (2,282) | $ 7,123 | $ 4,465 | $ 22,747 |
Net sales | 3,481,202 | 3,298,484 | 8,370,183 | 8,200,228 |
Cost of goods sold | (1,751,748) | (1,693,071) | (4,225,444) | (4,229,018) |
Selling, general and administrative expenses | (1,168,470) | (1,026,398) | (3,176,536) | (2,939,115) |
Other income (expense), net | (332) | (1,097) | (2,052) | 1,696 |
Interest expense | (27,108) | (24,783) | (75,004) | (70,441) |
Income from continuing operations before income taxes | 461,080 | 584,582 | 878,061 | 1,052,180 |
Tax benefit (expense) | (74,316) | (99,358) | (161,753) | (188,528) |
Net income | 386,140 | 498,489 | 705,192 | 809,773 |
Net deferred actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | (10,030) | (16,303) | (31,414) | (48,928) |
Deferred prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | (643) | (645) | (2,000) | (1,937) |
Pension curtailment loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | 0 | 0 | (1,105) | 0 |
Defined Benefit Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | (10,673) | (16,948) | (34,519) | (50,865) |
Tax benefit | 3,743 | 6,541 | 12,234 | 19,561 |
Total reclassifications for the period | (6,930) | (10,407) | (22,285) | (31,304) |
Gains (losses) on derivative financial instruments: | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 11,614 | 14,676 | 25,074 | 11,997 |
Cost of goods sold | (4,164) | 15,485 | 12,763 | 80,094 |
Selling, general and administrative expenses | (882) | (1,098) | (1,212) | (3,611) |
Other income (expense), net | (774) | 526 | (688) | 2,653 |
Interest expense | (1,185) | (1,131) | (3,518) | (3,356) |
Income from continuing operations before income taxes | 4,609 | 28,458 | 32,419 | 87,777 |
Tax benefit (expense) | 39 | (10,928) | (5,669) | (33,726) |
Net income | $ 4,648 | $ 17,530 | $ 26,750 | $ 54,051 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Apr. 01, 2017 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted in period (in shares) | 3,508,940 | |
Weighted exercise price of options granted (in USD per share) | $ 53.68 | |
Share based compensation vesting period | 3 years | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 3 years | |
Restricted stock units granted in period (in shares) | 615,937 | |
Share Based Compensation Arrangement By Share Based Payment Award Performance Baseline Period | 3 years | |
Performance period | 3 years | |
Grant date fair value of each restricted units granted (in USD per share) | $ 53.69 | |
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 (in shares) | 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 (in shares) | 2 | |
TSR Adjustment Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value of each restricted units granted (in USD per share) | $ 2.67 | |
Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 4 years | |
Restricted stock units granted in period (in shares) | 186,447 | |
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 57.70 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation vesting period | 5 years | |
Restricted stock units granted in period (in shares) | 385,915 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 55.74 | |
Nonemployee 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 | |
Nonemployee Board of Directors | Nonperformance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted in period (in shares) | 17,964 | |
Grant date fair value of each restricted units granted (in USD per share) | $ 53.47 | |
Award expiration period from grant date | 1 year |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Details) | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 23.00% |
Expected volatility, maximum | 30.00% |
Weighted average expected volatility | 24.00% |
Weighted average dividend yield | 2.80% |
Risk-free interest rate, minimum | 0.70% |
Risk-free interest rate, maximum | 2.40% |
Weighted average fair value at date of grant (in USD per share) | $ 9.90 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 3 months 18 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 7 years 8 months 12 days |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) € in Millions, $ in Millions | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Jan. 10, 2017EUR (€) |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 18.40% | 17.90% | |||
Net discrete tax benefits | $ 14.4 | $ 40.3 | |||
Tax benefit related to the early adoption | 12.5 | ||||
Realization of unrecognized net tax benefit (expense) | 4.1 | 15.6 | |||
Change in enacted tax rate | $ 1.9 | 4.1 | |||
Tax benefit related to stock compensation | $ 26.3 | ||||
Tax reduction due to discrete items | 1.60% | 3.80% | |||
Change in effective income tax rate without discrete items | 1.70% | ||||
Increase in unrecognized tax benefits and associated interest | $ 2.6 | ||||
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 153.1 | ||||
Possible decrease in unrecognized income tax benefits | 19.1 | ||||
Reduction in income tax expenses | $ 16.9 | ||||
VF Europe BVBA | Domestic Tax Authority | Administration of the Treasury, Belgium | |||||
Income Tax Contingency [Line Items] | |||||
Tax and interest from settlement | € | € 31.9 | ||||
Tax remitted | $ 33.9 | € 31.9 |
Business Segment Information -
Business Segment Information - Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,508,818 | $ 3,327,716 | $ 8,450,076 | $ 8,282,599 |
Operating income | 483,949 | 608,247 | 943,445 | 1,114,466 |
Impairment of goodwill | (104,651) | 0 | (104,651) | 0 |
Income from continuing operations before income taxes | 461,080 | 584,582 | 878,061 | 1,052,180 |
Interest expense, net | (22,537) | (22,568) | (63,332) | (63,982) |
Corporate and other expenses | (96,567) | (65,012) | (252,044) | (211,910) |
Outdoor & Action Sports | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,502,590 | 2,326,436 | 5,647,587 | 5,378,272 |
Operating income | 524,489 | 491,015 | 877,206 | 842,378 |
Impairment of goodwill | 0 | |||
Jeanswear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 697,701 | 701,416 | 1,945,950 | 2,041,186 |
Operating income | 121,218 | 142,427 | 323,994 | 388,564 |
Impairment of goodwill | 0 | |||
Imagewear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 138,885 | 127,992 | 423,859 | 404,633 |
Operating income | 22,377 | 23,981 | 72,349 | 74,497 |
Impairment of goodwill | 0 | |||
Sportswear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 140,272 | 140,705 | 352,848 | 373,977 |
Operating income | 17,488 | 15,080 | 27,764 | 26,156 |
Impairment of goodwill | (104,651) | |||
Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 29,370 | 31,167 | 79,832 | 84,531 |
Operating income | (737) | (341) | (3,225) | (3,523) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 684,835 | 672,162 | $ 1,298,088 | 1,328,072 |
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Certain corporate overhead costs allocated to selling, general, and administrative expense | $ 6,000 | $ 18,200 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Earnings per share – basic: | ||||
Income from continuing operations | $ 386,764 | $ 485,224 | $ 716,308 | $ 863,652 |
Weighted average common shares outstanding (in shares) | 393,258 | 413,461 | 400,771 | 417,067 |
Earnings per share from continuing operations (in USD per share) | $ 0.98 | $ 1.17 | $ 1.79 | $ 2.07 |
Earnings per share – diluted: | ||||
Income from continuing operations | $ 386,764 | $ 485,224 | $ 716,308 | $ 863,652 |
Weighted average common shares outstanding (in shares) | 393,258 | 413,461 | 400,771 | 417,067 |
Incremental shares from stock options and other dilutive securities (in shares) | 4,126 | 5,779 | 3,848 | 6,410 |
Adjusted weighted average common shares outstanding (in shares) | 397,384 | 419,240 | 404,619 | 423,477 |
Earnings per share from continuing operations (in USD per share) | $ 0.97 | $ 1.16 | $ 1.77 | $ 2.04 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Employees And Non Employees Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share | 4.9 | 5.2 | 8.6 | 5.3 |
Performance-Based Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share | 1.1 | 1 | 1.1 | 1 |
Fair Value Measurements - Class
Fair Value Measurements - Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Cash equivalents: | |||
Money market funds | $ 405,045 | $ 840,842 | |
Time deposits | 8,307 | 14,774 | |
Derivative financial instruments | 26,658 | 103,340 | $ 75,497 |
Investment securities | 202,721 | 196,738 | |
Financial liabilities: | |||
Derivative financial instruments | 89,212 | 25,574 | $ 32,181 |
Deferred compensation | 233,151 | 232,214 | |
Level 1 | |||
Cash equivalents: | |||
Money market funds | 405,045 | 840,842 | |
Time deposits | 8,307 | 14,774 | |
Investment securities | 189,744 | 179,673 | |
Level 2 | |||
Cash equivalents: | |||
Derivative financial instruments | 26,658 | 103,340 | |
Investment securities | 12,977 | 17,065 | |
Financial liabilities: | |||
Derivative financial instruments | 89,212 | 25,574 | |
Deferred compensation | $ 233,151 | $ 232,214 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Jan. 02, 2010 | Aug. 26, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term debt, carrying values | $ 2,398,100,000 | $ 2,398,100,000 | $ 2,292,900,000 | ||||
Impairment of fixed asset | $ 0 | $ 0 | |||||
Impairment of goodwill | 104,651,000 | 0 | 104,651,000 | 0 | |||
Goodwill | 1,642,873,000 | $ 1,769,838,000 | 1,642,873,000 | $ 1,769,838,000 | 1,708,323,000 | ||
Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term debt, fair values | 2,614,600,000 | 2,614,600,000 | 2,486,600,000 | ||||
Sportswear | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment of goodwill | 104,651,000 | ||||||
Goodwill | 52,663,000 | 52,663,000 | $ 157,314,000 | ||||
Sportswear | Nautica | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment of goodwill | 104,700,000 | 104,700,000 | $ 58,500,000 | ||||
Goodwill | $ 153,700,000 | ||||||
Corporate Assets | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment of fixed asset | $ 8,600,000 | $ 8,600,000 | |||||
Trademark | Sportswear | Nautica | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Amortizable intangible assets, net carrying amount | $ 217,400,000 |
Derivative Financial Instrume64
Derivative Financial Instruments and Hedging Activities - Additional Information (Details) € in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Oct. 01, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative contract maturity (up to) | 20 months | 20 months | ||||
No significant amounts recognized in earnings for the ineffective portion | $ 0 | $ 0 | $ 0 | $ 0 | ||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | 42,800,000 | |||||
Remaining pretax deferred net loss in Accumulated OCI | 19,200,000 | 19,200,000 | ||||
Net deferred loss in accumulated OCI reclassified to earnings | 1,200,000 | 1,100,000 | 3,500,000 | 3,400,000 | ||
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | 4,900,000 | 4,900,000 | ||||
Foreign currency exchange | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount of foreign currency derivatives | 2,400,000,000 | 2,200,000,000 | 2,400,000,000 | 2,200,000,000 | $ 2,200,000,000 | |
Net Investment Hedge | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount of nonderivative instruments | € | € 850 | |||||
Gain (loss) on derivative used in net investment hedge | 20,400,000 | 0 | 65,500,000 | |||
Amount of ineffectiveness on net investment hedges | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume65
Derivative Financial Instruments and Hedging Activities - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | $ 26,658 | $ 103,340 | $ 75,497 |
Fair Value of Derivatives with Unrealized Losses | (89,212) | (25,574) | (32,181) |
Foreign currency exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 26,451 | 103,340 | 75,497 |
Fair Value of Derivatives with Unrealized Losses | (88,593) | (25,292) | (31,996) |
Foreign currency exchange contracts not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value of Derivatives with Unrealized Gains | 207 | 0 | 0 |
Fair Value of Derivatives with Unrealized Losses | $ (619) | $ (282) | $ (185) |
Derivative Financial Instrume66
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Derivative Asset | |||
Gross amounts presented in the Consolidated Balance Sheets | $ 26,658 | $ 103,340 | $ 75,497 |
Gross amounts not offset in the Consolidated Balance Sheets | (26,001) | (22,341) | (19,328) |
Net amounts | 657 | 80,999 | 56,169 |
Derivative Liability | |||
Gross amounts presented in the Consolidated Balance Sheets | (89,212) | (25,574) | (32,181) |
Gross amounts not offset in the Consolidated Balance Sheets | 26,001 | 22,341 | 19,328 |
Net amounts | $ (63,211) | $ (3,233) | $ (12,853) |
Derivative Financial Instrume67
Derivative Financial Instruments and Hedging Activities - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other current assets | $ 23,387 | $ 84,519 | $ 66,231 |
Accrued liabilities | (75,266) | (18,574) | (28,852) |
Other assets | 3,271 | 18,821 | 9,266 |
Other liabilities | $ (13,946) | $ (7,000) | $ (3,329) |
Derivative Financial Instrume68
Derivative Financial Instruments and Hedging Activities - Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ 4,609 | $ 28,458 | $ 32,419 | $ 87,777 |
Foreign currency exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivatives Recognized in OCI | (51,147) | 9,571 | (117,580) | 32,837 |
Foreign currency exchange | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 11,614 | 14,676 | 25,074 | 11,997 |
Foreign currency exchange | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (4,164) | 15,485 | 12,763 | 80,094 |
Foreign currency exchange | Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (882) | (1,098) | (1,212) | (3,611) |
Foreign currency exchange | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (774) | 526 | (688) | 2,653 |
Interest rate contract | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ (1,185) | $ (1,131) | $ (3,518) | $ (3,356) |
Derivative Financial Instrume69
Derivative Financial Instruments and Hedging Activities - Hedges Included in Consolidated Statements of Income (Details) - Foreign currency exchange contracts not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivatives Recognized in Income | $ (1,266) | $ (620) | $ (2,372) | $ (971) |
Cost of goods sold | Foreign currency exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivatives Recognized in Income | (927) | (510) | (294) | 225 |
Other income (expense), net | Foreign currency exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivatives Recognized in Income | $ (339) | $ (110) | $ (2,078) | $ (1,196) |
Recently Adopted and Issued A70
Recently Adopted and Issued Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Jan. 02, 2010 | Jan. 01, 2017 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Impairment of goodwill | $ 104,651 | $ 0 | $ 104,651 | $ 0 | ||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Restricted cash | 4,100 | $ 4,400 | 4,100 | $ 4,400 | ||
Other Assets | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-16 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption, reduction | $ (237,800) | |||||
Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-16 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption, reduction | $ 237,800 | |||||
Sportswear | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Impairment of goodwill | 104,651 | |||||
Nautica | Sportswear | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Impairment of goodwill | $ 104,700 | $ 104,700 | $ 58,500 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | $ 58.1 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accrual (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | $ 53,598 |
Cash payments | (25,393) |
Adjustments to accruals | (3,001) |
Currency translation | 824 |
Amounts recorded in accrued liabilities. ending | 26,028 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 52,720 |
Cash payments | (24,515) |
Adjustments to accruals | (3,001) |
Currency translation | 824 |
Amounts recorded in accrued liabilities. ending | 26,028 |
Other | |
Restructuring Reserve [Roll Forward] | |
Amounts recorded in accrued liabilities, beginning | 878 |
Cash payments | (878) |
Adjustments to accruals | 0 |
Currency translation | 0 |
Amounts recorded in accrued liabilities. ending | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 01, 2017 | Oct. 02, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | Apr. 30, 2018 | Oct. 19, 2017 |
Subsequent Event [Line Items] | ||||||
Payments on long-term debt | $ 2,749 | $ 12,385 | ||||
Subsequent Event | Dividend Declared | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend (in USD per share) | $ 0.46 | |||||
Williamson-Dickie Mfg. Co. | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Payments to acquire businesses | $ 800,700 | |||||
Business acquisition, percentage acquired | 100.00% | |||||
Notes Payable to Banks | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Payments on long-term debt | $ 250,000 | |||||
Notes, stated percentage | 5.95% | |||||
Scenario, Forecast | Icebreaker Holdings, Ltd | ||||||
Subsequent Event [Line Items] | ||||||
Business acquisition, percentage acquired | 100.00% |