V.F. (VFC) 10-Q 11 Aug 09 2009 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	6 Months Ended Jul. 04, 2009	Aug. 01, 2009	Jun. 28, 2008
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N/A
Document Period End Date	2009-07-04
Entity Information [Line Items]
Entity Registrant Name	V.F. CORPORATION
Entity Central Index Key	0000103379
Current Fiscal Year End Date	--01-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$5,172,000,000
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		111,450,654

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Jul. 04, 2009	3 Months Ended Jun. 28, 2008	6 Months Ended Jul. 04, 2009	6 Months Ended Jun. 28, 2008
Net Sales	$1,466,808	$1,658,401	$3,174,109	$3,483,678
Royalty Income	18,829	19,081	37,002	40,145
Total Revenues	1,485,637	1,677,482	3,211,111	3,523,823
Costs and Operating Expenses
Cost of goods sold	833,693	942,763	1,830,333	1,956,893
Marketing, administrative and general expenses	532,206	570,863	1,099,592	1,158,949
Costs and Operating Expenses Total	1,365,899	1,513,626	2,929,925	3,115,842
Operating Income	119,738	163,856	281,186	407,981
Other Income (Expense)
Interest income	565	1,565	1,330	3,261
Interest expense	(21,819)	(23,007)	(43,834)	(45,206)
Miscellaneous, net	1,394	3,113	2,643	2,815
Other Income (Expense) Total	(19,860)	(18,329)	(39,861)	(39,130)
Income Before Income Taxes	99,878	145,527	241,325	368,851
Income Taxes	24,900	41,509	65,913	115,887
Net income	74,978	104,018	175,412	252,964
Net (Income) Loss Attributable to Noncontrolling Interests in Subsidiaries, Total	549	(40)	1,054	46
Net Income Attributable to VF Corporation	$75,527	$103,978	$176,466	$253,010
Earnings Per Share Attributable to VF Corporation
Basic	0.69	0.96	1.6	2.32
Diluted	0.68	0.94	1.59	2.27
Weighted Average Shares Outstanding
Basic	110,243	108,711	110,116	109,040
Diluted	111,241	110,985	111,131	111,436
Cash Dividends Per Common Share	0.59	0.58	1.18	1.16

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Jul. 04, 2009	Jan. 03, 2009	Jun. 28, 2008
Current Assets
Cash and equivalents	$385,202	$381,844	$276,009
Accounts receivable, less allowances for doubtful accounts of: June 2009 - $55,315, Dec. 2008 - $48,163, June 2008 - $59,059	881,014	851,282	994,157
Inventories:
Finished goods	1,007,682	931,122	1,116,123
Work in process	77,177	87,543	86,915
Materials and supplies	136,308	133,230	140,818
Inventories, Total	1,221,167	1,151,895	1,343,856
Other current assets	247,494	267,989	225,044
Total current assets	2,734,877	2,653,010	2,839,066
Property, plant and equipment	1,571,708	1,557,634	1,581,197
Less accumulated depreciation	941,339	914,907	913,977
Property, plant and equipment, net	630,369	642,727	667,220
Intangible Assets	1,563,742	1,366,222	1,405,723
Goodwill	1,456,807	1,313,798	1,336,661
Other Assets	333,452	458,111	531,771
Total Assets	6,719,247	6,433,868	6,780,441
Current Liabilities
Short-term borrowings	355,070	53,580	396,932
Current portion of long-term debt	3,213	3,322	3,412
Accounts payable	382,491	435,381	477,442
Accrued liabilities	429,044	519,899	457,600
Total current liabilities	1,169,818	1,012,182	1,335,386
Long-term Liabilities
Long-term Debt	1,139,790	1,141,546	1,142,889
Other Liabilities	765,809	722,895	604,310
Stockholders' Equity
Common stock, stated value $1; shares authorized, 300,000,000; shares outstanding: June 2009 - 110,350,276; Dec. 2008 - 109,847,563; June 2008 - 108,790,793	110,350	109,848	108,791
Additional paid-in capital	1,776,081	1,749,464	1,686,599
Accumulated other comprehensive income (loss)	(249,671)	(276,294)	146,453
Retained earnings	2,006,729	1,972,874	1,754,433
Noncontrolling interests in subsidiaries	341	1,353	1,580
Total stockholders' equity	3,643,830	3,557,245	3,697,856
Total liabilities and stockholders' equity	$6,719,247	$6,433,868	$6,780,441

Consolidated Balance Sheets (pa

Consolidated Balance Sheets (parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified	Jul. 04, 2009	Jan. 03, 2009	Jun. 28, 2008
Consolidated Balance Sheets (parenthetical)
Allowance for doubtful accounts	$55,315	$48,163	$59,059
Common stock, stated value	1	1	1
Common stock, shares authorized	300,000,000	300,000,000	300,000,000
Common stock, shares outstanding	110,350,276	109,847,563	108,790,793

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	6 Months Ended Jul. 04, 2009	6 Months Ended Jun. 28, 2008
Operating Activities
Net income	$175,412	$252,964
Adjustments to reconcile net income to cash provided by operating activities of continuing operations:
Depreciation	52,268	51,436
Amortization of intangible assets	19,357	19,992
Other amortization	7,258	6,474
Stock-based compensation	19,839	26,304
Pension funding less than expense	41,407	2,404
Other, net	(3,383)	8,197
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(24,079)	(10,966)
Inventories	(60,350)	(187,922)
Other current assets	19,053	2,412
Accounts payable	(56,410)	(40,186)
Accrued compensation	(7,578)	(32,977)
Accrued income taxes	(19,875)	3,368
Accrued liabilities	(49,585)	(24,362)
Other assets and liabilities	(28,663)	(13,838)
Cash provided by operating activities of continuing operations	84,671	63,300
Cash used by discontinued operations	0	(971)
Cash provided by operating activities	84,671	62,329
Investing Activities
Capital expenditures	(36,543)	(56,975)
Business acquisitions, net of cash acquired	(207,219)	(78,483)
Software purchases	(6,709)	(3,187)
Sale of property, plant, and equipment	6,050	3,038
Other, net	(2,052)	721
Cash used by investing activities	(246,473)	(134,886)
Financing Activities
Increase in short-term borrowings	300,317	264,362
Payments on long-term debt	(1,838)	(2,245)
Purchase of Common Stock	0	(149,729)
Cash dividends paid	(130,017)	(126,705)
(Cost) proceeds from issuance of Common Stock, net	(4,867)	21,953
Tax benefits of stock option exercises	(2,021)	9,656
Other, net	0	(305)
Cash provided by financing activities	161,574	16,987
Effect of Foreign Currency Rate Changes on Cash	3,586	9,716
Net Change in Cash and Equivalents	3,358	(45,854)
Cash and Equivalents - Beginning of Year	381,844	321,863
Cash and Equivalents - End of Period	$385,202	$276,009

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (USD $)
In Thousands	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Common Stock	Retained Earnings	Noncontrolling Interests	Total
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 29, 2007	$1,619,320	$61,495	$109,798	$1,786,216	$1,726
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 29, 2007	1,619,320	61,495	109,798	1,786,216	1,726
Net income				602,748	99
Cash dividends on Common Stock				(255,235)	(750)
Purchase of treasury stock			(2,000)	(147,729)
Stock compensation plans, net	130,144		2,050	(13,126)
Foreign currency translation		(103,968)			278
Defined benefit pension plans		(227,016)
Derivative financial instruments		1,729
Marketable securities		(8,534)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jan. 03, 2009	1,749,464	(276,294)	109,848	1,972,874	1,353	3,557,245
Net income				176,466	(1,053)	175,412
Cash dividends on Common Stock				(130,017)
Stock compensation plans, net	26,617		502	(12,594)
Foreign currency translation		9,857			41
Defined benefit pension plans		19,914
Derivative financial instruments		(4,380)
Marketable securities		1,232
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jul. 04, 2009	$1,776,081	($249,671)	$110,350	$2,006,729	$341	$3,643,830

Basis of Presentation

Basis of Presentation
	6 Months Ended Jul. 04, 2009 USD / shares
Basis of Presentation [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure	Note A Basis of Presentation VF Corporation (and its subsidiaries, collectively known as VF) operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended June 2009, December 2008 and June 2008 relate to the fiscal periods ended on July 4, 2009, January 3, 2009 and June 28, 2008, respectively. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles (GAAP) in the United States of America for complete financial statements. Similarly, the December 2008 consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to make a fair statement of the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and six months ended June 2009 are not necessarily indicative of results that may be expected for any other interim period or for the year ending January 2, 2010. For further information, refer to the consolidated financial statements and notes included in VFs Annual Report on Form 10-K for the year ended December 2008 (2008 Form 10-K). Certain prior year amounts, none of which are material, have been reclassified to conform with the 2009 presentation.

Changes in Accounting Policies

Changes in Accounting Policies
	6 Months Ended Jul. 04, 2009 USD / shares
Changes in Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Note B Changes in Accounting Policies During the first quarter of 2009, VF adopted Financial Accounting Standards Board (FASB) Statement No. 141(Revised), Business Combinations, and a related FASB Staff Position No. FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies (together, Statement 141(R)). Statement 141(R) revised how business combinations are accounted for, both at the acquisition date and in subsequent periods. Statement 141(R) changes the accounting model for a business acquisition from a cost allocation standard to recognition of the fair value of the assets and liabilities of the acquired business, regardless of whether a 100% or a lesser controlling interest is acquired. Early adoption of Statement 141(R) was not permitted. During the first quarter of 2009, VF adopted FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 (Statement 160). Statement 160 requires information about the company as a whole, with separate information relating to the parent or controlling owners and to the noncontrolling (minority) interests, and provides guidance on the accounting for transactions between an entity and noncontrolling interests. Statement 160 required retroactive adoption of its presentation and disclosure requirements, with all other requirements to be applied prospectively. Early adoption was not permitted. Accordingly, for VFs previously issued financial statements: Noncontrolling interests in subsidiaries were reclassified from Other Liabilities to a separate component of Stockholders Equity. Consolidated net income was adjusted to separately present net income attributable to noncontrolling interests. Consolidated comprehensive income was adjusted to separately present comprehensive income attributable to noncontrolling interests. During the first quarter of 2009, VF adopted FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities, which amended FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (together, Statement 133(R)). Statement 133(R) requires expanded disclosures related to (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are accounted for and (iii) how derivative instruments and related hedged items affect an entitys financial position, operating results and cash flows. See Note M. During the first quarter of 2009, VF adopted FASB Staff Position No. FAS 107-1, Interim Disclosures about Fair Value of Financial Instruments (FAS 107-1). FAS 107-1 requires quarterly disclosures (rather than just annually) of the fair value of financial assets and liabilities. See Note L. During the first quarter of 2009, VF adopted FASB Staff Position No. FAS 142-3, Determination of the Useful Life of Intangible Assets (FAS 142-3). FAS 142-3 amended the factors to be considered in developing renewal or extension assumptions used to determine the useful life of an identified intangible asset under FASB Statement No. 142, Goodwill and Other Intan

Acquisitions

Acquisitions
	6 Months Ended Jul. 04, 2009 USD / shares
Acquisitions [Abstract]
Schedule of Business Acquisitions, by Acquisition	Note C Acquisition On March 11, 2009, VF completed the acquisition of Mo Industries Holdings, Inc. ("Mo Industries"), owner of the Splendid and Ella Moss brands of premium sportswear marketed to upscale department and specialty stores. This transaction resulted in VF acquiring the remaining two-thirds equity of Mo Industries for a purchase price of $160.8 million (consisting of $156.1 million of cash and $4.7 million of notes) and payment of $52.3 million of debt. In June 2008, VF had acquired one-third of the outstanding equity of Mo Industries for $77.4 million. The agreement included put/call rights to acquire the remaining equity during the first half of 2009 at a price based on the acquired companys earnings. The initial investment was recorded in Other Assets and was accounted for using the equity method of accounting. The carrying value of the investment was $80.5 million at the time of the March 2009 acquisition, consisting of the initial cost of the investment, plus the equity in net income of the investment to the date of acquisition. In accordance with Statement 141(R), VF recognized a gain in the first quarter of $0.3 million from remeasuring its one-third interest in Mo Industries to fair value. The gain was included in Miscellaneous Income in VFs Consolidated Statement of Income. Mo Industries is being reported as part of the Contemporary Brands Coalition. The following table summarizes the amounts of tangible and intangible assets acquired and liabilities assumed (including the fair value of the prior one-third equity investment) that were recognized at the date of acquisition. Recorded fair values are subject to adjustment for final valuations of income tax matters. In thousands Cash and equivalents $ 5,244 Other tangible assets 18,424 Intangible assets -- indefinite-lived 98,900 Intangible assets -- amortizable 115,700 Goodwill 142,796 Total assets acquired 381,064 Current liabilities 7,987 Other liabilities, primarily deferred income taxes 79,060 Total liabilities assumed 87,047 Net assets acquired 294,017 Fair value of VF's prior equity investment 80,854 Purchase of two-thirds equity interest $ 213,163 Acquired intangible assets consisted of trademarks and customer relationships. Management believes the Splendid and Ella Moss trademarks have indefinite lives. Customer relationship intangible assets are being amortized using an accelerated method over their 18 year useful life. Factors that contributed to the recognition of Goodwill included (i) expected growth rates and profitability of the acquired business, (ii) the ability to expand the brands within their markets and to new markets, (iii) an experienced workforce, (iv) VFs strategies for growth in sales, income and cash flows and (v) expected synergies with existing VF business units. None of the Goodwill is expected to be deductible for income tax purposes. Amounts of Mo Industries revenues and earnings included in VFs Consolidated Statement of Inco

Intangible Assets

Intangible Assets
	6 Months Ended Jul. 04, 2009 USD / shares
Intangible Assets [Abstract]
Intangible Assets Disclosure	Note D Intangible Assets June 2009 December 2008 Weighted Gross Net Net Average Carrying Accumulated Carrying Carrying Dollars in thousands Life * Amount Amortization Amount Amount Amortizable intangible assets: Customer relationships 19 years $ 440,432 $ 65,712 $ 374,720 $ 272,086 License agreements 24 years 179,928 38,508 141,420 145,389 Trademarks and other 7 years 17,555 9,532 8,023 9,240 Amortizable intangible assets, net 524,163 426,715 Indefinite-lived intangible assets: Trademarks and tradenames 1,039,579 939,507 Intangible assets, net $ 1,563,742 $ 1,366,222 * Amortization of customer relationships accelerated methods; license agreements accelerated and straight-line methods; trademarks and other accelerated and straight-line methods. The fair value of identified intangible assets is based on expected cash flows at the respective acquisition dates. These expected cash flows consider the stated terms of the rights or contracts acquired and expected renewal periods, if applicable. The number of renewal periods considered is based on managements experience in renewing or extending similar arrangements, regardless of whether the acquired arrangements have explicit renewal or extension provisions. Trademark intangible assets represent individual acquired trademarks, some of which are registered in more than 100 countries. Because of the significant number of trademarks, renewal of those rights is an ongoing process, with individual trademark renewals ranging from 7 to 14 years and averaging 10 years. License intangible assets relate to numerous licensing contracts, with VF as either the licensor or licensee. Individual license renewals range from 3 to 5 years, with an average of 4 years. Costs incurred to renew or extend the lives of recognized intangible assets are not significant and are expensed as incurred. Amortization expense of intangible assets for the second quarter and six months of 2009 was $10.3 million and $19.4 million, respectively. Estimated amortization expense for the remainder of 2009 is $21.8million and for the years 2010 through 2013 is $39.3 million, $36.5million, $34.4million and $32.9 million, respectively.

Goodwill

Goodwill
	6 Months Ended Jul. 04, 2009 USD / shares
Goodwill [Abstract]
Schedule of Goodwill	Note E Goodwill Outdoor and Contemporary In thousands Action Sports Jeanswear Imagewear Sportswear Brands Total Balance, December 2008 $ 554,710 $ 235,818 $ 56,703 $ 215,767 $ 250,800 $ 1,313,798 2009 acquisition - - - - 142,796 142,796 Adjustments to purchase price allocation - - - - (3,454) (3,454) Adjustment to contingent consideration (189) - - - - (189) Currency translation 2,328 1,038 - - 490 3,856 Balance, June 2009 $ 556,849 $ 236,856 $ 56,703 $ 215,767 $ 390,632 $ 1,456,807

Pension Plans

Pension Plans
	6 Months Ended Jul. 04, 2009 USD / shares
Pension Plans [Abstract]
Pension and Other Postretirement Benefits Disclosure	Note F Pension Plans VFs net periodic pension cost contained the following components: Three Months Ended June Six Months Ended June In thousands 2009 2008 2009 2008 Service cost benefits earned during the year $ 3,726 $ 4,162 $ 7,452 $ 8,324 Interest cost on projected benefit obligations 17,950 17,276 35,900 34,552 Expected return on plan assets (13,379) (20,840) (26,758) (41,680) Amortization of: Prior service costs 1,067 673 2,134 1,346 Actuarial losses 15,131 463 30,262 926 Net periodic pension cost $ 24,495 $ 1,734 $ 48,990 $ 3,468 During the first six months of 2009, VF made contributions totaling $7.6 million to pay benefits under VFs Supplemental Executive Retirement Plan (SERP). VF currently anticipates making an additional $2.5 million of contributions to pay benefits under the SERP during the remainder of 2009. VF is not required under applicable regulations, and does not currently intend, to make a contribution to the qualified pension plan during 2009.

Business Segment Information

Business Segment Information
	6 Months Ended Jul. 04, 2009 USD / shares
Business Segment Information [Abstract]
Segment Reporting Disclosure	Note G Business Segment Information For internal management and reporting purposes, VFs businesses are grouped principally by product categories, and by brands within those product categories. These groupings of businesses are referred to as coalitions. These coalitions are the basis for VFs five reportable segments. Financial information for VFs reportable segments is as follows: Three Months Ended June Six Months Ended June In thousands 2009 2008 2009 2008 Coalition revenues: Outdoor and Action Sports $ 510,533 $ 523,499 $ 1,116,470 $ 1,159,743 Jeanswear 545,421 646,227 1,212,804 1,358,455 Imagewear 195,306 241,251 421,957 488,285 Sportswear 104,315 134,849 207,885 254,584 Contemporary Brands 102,678 100,980 204,602 209,441 Other 27,384 30,676 47,393 53,315 Total coalition revenues $1,485,637 $ 1,677,482 $ 3,211,111 $ 3,523,823 Coalition profit: Outdoor and Action Sports $ 63,255 $ 58,635 $ 155,259 $ 164,141 Jeanswear 66,883 78,354 155,917 200,631 Imagewear 19,088 30,519 41,955 63,772 Sportswear 6,919 14,485 11,427 16,587 Contemporary Brands 4,638 13,873 16,443 27,316 Other 1,387 761 (629) (2,014) Total coalition profit 162,170 196,627 380,372 470,433 Corporate and other expenses (41,038) (29,658) (96,543) (59,637) Interest, net (21,254) (21,442) (42,504) (41,945) Income before income taxes $ 99,878 $ 145,527 $ 241,325 $ 368,851 Operating results of the John Varvatos business unit for 2008 have been reclassified from the Sportswear Coalition to the Contemporary Brands Coalition consistent with a change in internal management beginning in 2009. Defined benefit pension plans in the United States are centrally managed. Coalition profit includes only the current year service cost component of pension cost. Other components of pension cost totaling $20.8 million for the three months ended June 2009 and $41.5 million for the six months ended June 2009, primarily representing amortization of deferred actuarial losses, are recorded in Corporate and Other Expenses. These components of pension cost recorded in Corporate and Other were not significant in the prior year.

Capital and Comprehensive Incom

Capital and Comprehensive Income (Loss)
	6 Months Ended Jul. 04, 2009 USD / shares
Capital and Comprehensive Income (Loss) [Abstract]
Stockholders' Equity Note Disclosure	Note H - Capital and Comprehensive Income (Loss) Common stock outstanding is net of shares held in treasury, and in substance retired. There were 12,392,768 treasury shares at June 2009, 12,198,054 at December 2008 and 12,196,718 at June 2008. The excess of the cost of treasury shares acquired over the $1 per share stated value of Common Stock is deducted from Retained Earnings. In addition, 269,402 shares of VF Common Stock at June 2009, 261,092 shares at December 2008, and 255,638 shares at June 2008 were held in connection with deferred compensation plans. These shares held for deferred compensation plans are treated for financial reporting purposes as treasury shares at a cost of $12.3 million, $10.8 million and $10.2 million at each of the respective dates. There are 25,000,000 authorized shares of Preferred Stock, $1 par value, of which none are outstanding. Other comprehensive income consists of changes in assets and liabilities that are not included in Net Income under GAAP but are instead reported within a separate component of Stockholders' Equity. VFs comprehensive income was as follows: Three Months Six Months Ended June Ended June In thousands 2009 2008 2009 2008 Net income $ 74,978 $ 104,018 $ 175,412 $ 252,964 Other comprehensive income: Foreign currency translation Amount arising during the period 55,561 4,101 15,223 94,489 Less income tax effect (9,143) (1,322) (5,366) (24,382) Reclassification to net income during the period - (1,522) - (1,522) Less income tax effect - 533 - 533 Defined benefit pension plans Reclassification to net income during the period 16,198 1,136 32,396 2,273 Less income tax effect (6,241) (435) (12,482) (871) Adjustment of funded status - - - 25,950 Less income tax effect - - - (9,949) Unrealized gains (losses) on derivative financial instruments Amount arising during the period (13,658) 2,029 (1,277) (9,290) Less income tax effect 5,263 (789) 493 3,563 Reclassification to net income during the period (2,159) 6,763 (5,847) 14,463 Less income tax effect 831 (2,581) 2,251 (5,546) Unrealized gains (losses) on marketable securities Amount arising during the period 1,437 (434) 1,232 (4,753) Other comprehensive income 48,089 7,479 26,623 84,958 Comprehensive income 123,067 111,497 202,035 337,922 Comprehensive income attributable to noncontrolling interests 522 72 1,012 (4) Comprehensive income attrib

Stock-based Compensation

Stock-based Compensation
	6 Months Ended Jul. 04, 2009 USD / shares
Stock-based Compensation [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments	Note I Stock-based Compensation During the first six months of 2009, VF granted options for 1,349,163 shares of Common Stock at an exercise price of $53.60, equal to the fair market value of VF Common Stock on the date of grant. The options vest in equal annual installments over a three year period. The fair value of these options was estimated using a lattice valuation model for employee groups having similar exercise behaviors, with the following assumptions: expected volatility ranging from 48% to 33%, with a weighted average of 38%; expected term of 4.9 to 7.4 years; expected dividend yield of 3.5%; and risk-free interest rate ranging from 0.5% at six months to 2.9% at 10 years. The resulting weighted average fair value of these options at the date of grant was $15.38 per option. Also during the first six months of 2009, VF granted 376,291 performance-based restricted stock units. Participants are eligible to receive shares of VF Common Stock at the end of a three year performance period. The actual number of shares that will be earned, if any, will be based on VFs performance over that period. The grant date fair value of the restricted stock units was $57.40 per unit. In addition, VF granted 10,000 restricted stock units at a fair value of $57.38 per share. These units will vest in 2014, assuming continuation of employment by the grantees to that date.

Income Taxes

Income Taxes
	6 Months Ended Jul. 04, 2009 USD / shares
Income Taxes [Abstract]
Income Tax Disclosure	Note J Income Taxes The effective income tax rate was 27.3% for the first six months of 2009, compared with 31.4% in the comparable period of 2008. The lower rate in 2009 was due to a higher percentage of income and, in some cases, reduced tax rates outside the United States. The effective tax rate for the full year 2008 was 28.9%, which included the favorable impact from expiration of statutes of limitations in locations where tax contingencies were recorded in prior years, tax audit settlements and updated assessments of previously accrued amounts. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. In the United States, tax years 2004 to 2006 are under examination by the Internal Revenue Service. Tax years 1998 to 2002 are under examination by the State of North Carolina, which has indicated its intent to examine tax years 2003 to 2005. Tax years 2003 to 2005 are under examination by the State of Alabama. In 2009, the State of California commenced an examination of tax years 2006 and 2007. VF is also currently subject to examination by various other taxing authorities. Management believes that some of these audits and negotiations will conclude during the next 12 months. The amount of unrecognized tax benefits increased by $1.8 million during the first quarter of 2009 due to tax positions taken in the current period and decreased by $1.8 million during the second quarter of 2009 due to tax audit settlements. During the next 12 months, management believes that it is reasonably possible that the amount of unrecognized income tax benefits may decrease by approximately $15 million due to settlements of audits and expiration of statutes of limitations in locations where tax contingencies had been recorded for open tax years, which includes $12 million that would reduce income tax expense.

Earnings Per Share

Earnings Per Share
	6 Months Ended Jul. 04, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Note K Earnings Per Share Three Months Six Months Ended June Ended June In thousands, except per share amount 2009 2008 2009 2008 Earnings per share basic: Net income attributable to VF Corporation common stockholders $ 75,527 $ 103,978 $ 176,466 $ 253,010 Weighted average Common Stock outstanding 110,243 108,711 110,116 109,040 Earnings per share attributable to VF Corporation common stockholders $ 0.69 $ 0.96 $ 1.60 $ 2.32 Earnings per share diluted: Net income attributable to VF Corporation common stockholders $ 75,527 $ 103,978 $ 176,466 $ 253,010 Weighted average Common Stock outstanding 110,243 108,711 110,116 109,040 Stock options and other dilutive securities 998 2,274 1,015 2,396 Weighted average Common Stock and dilutive securities outstanding 111,241 110,985 111,131 111,436 Earnings per share attributable to VF Corporation common stockholders $ 0.68 $ 0.94 $ 1.59 $ 2.27 Outstanding options to purchase 3.9 million shares and 4.8 million shares of Common Stock for the three and six months ended June 2009, respectively, and outstanding options to purchase 1.4 million shares for the three and six months ended June 2008, were excluded from the computation of diluted earnings per share because the effect of their inclusion would have been antidilutive. In addition, .6 million restricted stock units for the three months and six months ended June 2009 and .5 million restricted stock units for the comparable periods of the prior year were excluded from the computation of diluted earnings per share because they are subject to performance-based vesting conditions that had not been achieved by the end of those periods.

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jul. 04, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Disclosures	Note L Fair Value Measurements Fair value is defined in FASB Statement No. 157, Fair Value Measurements (Statement 157), as the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market in an orderly transaction between market participants. In determining fair value, Statement 157 establishes a three-level hierarchy that distinguishes between (i) market data obtained or developed from independent sources (i.e., observable data inputs) and (ii) a reporting entitys own data and assumptions that market participants would use in pricing an asset or liability (i.e., unobservable data inputs). Financial assets and financial liabilities measured and reported at fair value are classified in one of the following categories, in order of priority of observability and objectivity of pricing inputs: Level 1 Fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value based on 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 Fair value based on prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entitys 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 measured and recorded at fair value on a recurring basis at the dates indicated: In thousands Fair Value Measurement Using: Quoted Prices Significant in Active Other Significant Total Markets for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 2009 Financial assets: Cash equivalents $ 206,181 $ 206,181 $ - $ - Derivative instruments 5,097 - 5,097 - Investment securities 164,991 124,238 40,753 - Financial liabilities: Derivative instruments 25,173 - 25,173 - Deferred compensation 180,841 - 180,841 - December 2008 Financial assets: Cash equivalents $ 156,900 $ 156,900 $ - $ - Derivative instruments 13,529 - 13,529 - Investment securities 157,651 114,778 42,873 - Financial liabilities: Derivative instruments 38,474 - 38,474 - Deferred compensation 176,394 -

Derivative Financial Instrument

Derivative Financial Instruments and Hedging Activities
	6 Months Ended Jul. 04, 2009 USD / shares
Derivative Financial Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities Disclosure	Note M Derivative Financial Instruments and Hedging Activities VF is exposed to risks in its ongoing business operations. Some of these risks are managed by using derivative financial instruments. Derivative financial instruments are contracts whose value is based on, or derived from, changes in the value of an underlying currency exchange rate, interest rate or other financial asset or index. VF conducts business in many foreign countries and therefore is subject to movements in foreign currency exchange rates. Exchange rate fluctuations can have a significant effect on the translated U.S. dollar value of operating results and net assets denominated in foreign currencies. VF does not attempt to manage translation risk but does use derivative contracts to manage the exchange rate risk of specified cash flows or transactions denominated in various foreign currencies. VF manages exchange rate risk on a consolidated basis, which allows exposures to be netted. Use of derivative financial instruments allows VF to reduce the overall exposure to risks in its cash flows and earnings, since gains and losses on hedged exposures are offset by losses and gains in the value of the derivative contracts. In addition, in prior years VF had used derivatives in limited instances to hedge interest rate risk. Accounting for derivative instruments Statement 133(R) requires companies to recognize all derivative instruments as either assets or liabilities at their fair value. The accounting for changes in the fair value (i.e., gains and losses) of derivative instruments depends on whether a derivative has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. The criteria used to determine if a derivative instrument qualifies for hedge accounting treatment are (i) whether an appropriate hedging instrument has been identified and designated to reduce a specific exposure and (ii) whether there is a high correlation between changes in the fair value of the hedging instrument and the identified exposure. A qualifying derivative is designated for accounting purposes, based on the nature of the hedging relationship, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign business. VFs hedging practices and related accounting policies are described in separate sections below. VF considers its foreign businesses to be long-term investments and accordingly does not hedge those net investments. VF does not use derivative instruments for trading or speculative purposes. Hedging cash flows are classified in the statements of cash flows in the same category as the items being hedged. VF formally documents hedging instruments and hedging relationships at the inception of each contract. Further, VF assesses, both at the inception of a contract and on an ongoing basis, whether the hedging instruments are effective in offsetting the risk of the hedged transactions. Occasionally, a portion of a derivative instrument will be considered ineffective in hedging the originally identified exposure due to a decline in amount or a change in timing of the hedged exposure. In those cases, he

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	6 Months Ended Jul. 04, 2009 USD / shares
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note N Recently Issued Accounting Standards In March 2009, the FASB issued Staff Position No. FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets (FAS 132(R)-1). This Staff Position expands disclosure requirements to provide information about an employers defined benefit pension plans, including the major categories and fair values of plan assets, investment policies and strategies, and significant concentrations of credit risk. FAS 132(R)-1, effective for VFs 2009 fiscal year, is not expected to have a significant effect on VFs consolidated financial statements. In June 2009, the FASB issued Statement No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162 (Statement 168). Statement 168 establishes the FASB Accounting Standards CodificationTM (the Codification) as the source of authoritative U.S. GAAP recognized by the FASB to be applied to nongovernmental entities. The Codification also recognizes rules and interpretive releases of the Securities and Exchange Commission (SEC) as authoritative GAAP for SEC registrants. The Codification, which will supersede all existing non-SEC accounting and reporting standards upon its effective date in the third quarter of 2009, does not change U.S. GAAP. Other new pronouncements issued but not effective until after June2009 are not expected to have a significant effect on VFs consolidated financial position, results of operations or disclosures.

Subsequent Events

Subsequent Events
	6 Months Ended Jul. 04, 2009 USD / shares
Subsequent Events [Abstract]
Schedule of Subsequent Events	Note O Subsequent Events VFs Board of Directors declared a quarterly cash dividend of $0.59 per share, payable on September 18, 2009 to shareholders of record on September 8, 2009. VF granted options for 8,882 shares of Common Stock at an exercise price of $64.60 equal to the market price of VF Common Stock on the date of grant and 2,617 performance-based restricted stock units having a performance period through the end of 2011. Management has evaluated subsequent events through August 11, 2009, the date of issuance of the financial statements.