V.F. (VFC) 10-Q 10 Nov 09 2009 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	9 Months Ended Oct. 03, 2009	Oct. 31, 2009
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-10-03
Entity Information [Line Items]
Entity Registrant Name	V F CORP
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 Listings [Line Items]
Entity Common Stock, Shares Outstanding		110,989,503

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Oct. 03, 2009	3 Months Ended Sep. 27, 2008	9 Months Ended Oct. 03, 2009	9 Months Ended Sep. 27, 2008
Net Sales	$2,075,510	$2,185,825	$5,249,619	$5,669,503
Royalty Income	18,296	20,802	55,298	60,947
Total Revenues	2,093,806	2,206,627	5,304,917	5,730,450
Costs and Operating Expenses
Cost of goods sold	1,165,843	1,227,577	2,996,176	3,184,470
Marketing, administrative and general expenses	610,072	627,839	1,709,664	1,786,788
Costs and Operating Expenses Total	1,775,915	1,855,416	4,705,840	4,971,258
Operating Income	317,891	351,211	599,077	759,192
Other Income (Expense)
Interest income	420	1,435	1,750	4,696
Interest expense	(21,325)	(24,310)	(65,159)	(69,516)
Miscellaneous, net	505	(1,677)	3,148	1,138
Other Income (Expense) Total	(20,400)	(24,552)	(60,261)	(63,682)
Income Before Income Taxes	297,491	326,659	538,816	695,510
Income Taxes	79,430	92,608	145,343	208,495
Net income	218,061	234,051	393,473	487,015
Net (Income) Loss Attributable to Noncontrolling Interests in Subsidiaries, Total	(141)	(176)	913	(130)
Net Income Attributable to VF Corporation	$217,920	$233,875	$394,386	$486,885
Earnings Per Share Attributable to VF Corporation
Basic	1.97	2.14	3.57	4.46
Diluted	1.94	2.1	3.54	4.37
Weighted Average Shares Outstanding
Basic	110,881	109,106	110,372	109,062
Diluted	112,145	111,258	111,471	111,379
Cash Dividends Per Common Share	0.59	0.58	1.77	1.74

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Oct. 03, 2009	Jan. 03, 2009	Sep. 27, 2008
Current Assets
Cash and equivalents	$379,148	$381,844	$225,957
Accounts receivable, less allowance for doubtful accounts of: Sept. 2009 - $61,930; Dec. 2008 - $48,163, Sept. 2008 - $59,403	1,102,878	851,282	1,313,919
Inventories:
Finished products	976,175	931,122	1,118,878
Work in process	71,778	87,543	90,878
Materials and supplies	123,198	133,230	132,086
Inventories, Total	1,171,151	1,151,895	1,341,842
Other current assets	275,556	267,989	222,669
Total current assets	2,928,733	2,653,010	3,104,387
Property, plant and equipment	1,586,713	1,557,634	1,582,337
Less accumulated depreciation	956,633	914,907	920,760
Property, plant and equipment, net	630,080	642,727	661,577
Intangible Assets	1,566,640	1,366,222	1,390,402
Goodwill	1,472,150	1,313,798	1,323,808
Other Assets	308,563	458,111	504,091
Total Assets	6,906,166	6,433,868	6,984,265
Current Liabilities
Short-term borrowings	252,175	53,580	413,469
Current portion of long-term debt	203,147	3,322	3,427
Accounts payable	362,010	435,381	418,712
Accrued liabilities	537,725	519,899	577,716
Total current liabilities	1,355,057	1,012,182	1,413,324
Long-term Liabilities
Long-term Debt	939,143	1,141,546	1,142,170
Other Liabilities	754,398	722,895	565,928
Stockholders' Equity
Common stock, stated value $1; shares authorized, 300,000,000; shares outstanding: Sept. 2009 - 110,813,811; Dec. 2008 - 109,847,563; Sept. 2008 - 109,827,052	110,814	109,848	109,827
Additional paid-in capital	1,842,147	1,749,464	1,747,775
Accumulated other comprehensive income (loss)	(201,708)	(276,294)	78,268
Retained earnings	2,105,758	1,972,874	1,925,132
Noncontrolling interests in subsidiaries	557	1,353	1,841
Total stockholders' equity	3,857,568	3,557,245	3,862,843
Total liabilities and stockholders' equity	$6,906,166	$6,433,868	$6,984,265

Consolidated Balance Sheets (pa

Consolidated Balance Sheets (parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified	Oct. 03, 2009	Jan. 03, 2009	Sep. 27, 2008
Consolidated Balance Sheets (parenthetical)
Allowance for doubtful accounts	$61,930	$48,163	$59,403
Common stock, stated value	1	1	1
Common stock, shares authorized	300,000,000	300,000,000	300,000,000
Common stock, shares outstanding	110,813,811	109,847,563	109,827,052

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	9 Months Ended Oct. 03, 2009	9 Months Ended Sep. 27, 2008
Operating Activities
Net income	$393,473	$487,015
Adjustments to reconcile net income to cash provided by operating activities of continuing operations:
Depreciation	78,616	77,482
Amortization of intangible assets	29,953	29,781
Other amortization	12,346	9,862
Stock-based compensation	26,998	33,824
Pension funding over expense	(35,420)	(711)
Other, net	80,601	11,090
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(237,209)	(363,767)
Inventories	(1,945)	(193,485)
Other current assets	(1,635)	10,929
Accounts payable	(79,225)	(93,990)
Accrued compensation	17,128	(24,259)
Accrued income taxes	3,598	36,373
Accrued liabilities	3,594	52,588
Other assets and liabilities	(26,999)	(12,929)
Cash provided by operating activities of continuing operations	263,874	59,803
Cash used by discontinued operations	0	(1,002)
Cash provided by operating activities	263,874	58,801
Investing Activities
Capital expenditures	(57,746)	(88,319)
Business acquisitions, net of cash acquired	(207,219)	(93,377)
Software purchases	(9,349)	(7,349)
Sale of property, plant and equipment	6,050	5,851
Other, net	(1,875)	1,020
Cash used by investing activities	(270,139)	(182,174)
Financing Activities
Increase in short-term borrowings	196,799	281,340
Payments on long-term debt	(2,582)	(2,945)
Purchase of Common Stock	(52,988)	(149,729)
Cash dividends paid	(195,550)	(190,347)
Proceeds from issuance of Common Stock, net	47,418	63,450
Tax benefits of stock option exercises	4,648	22,246
Other, net	0	(305)
Cash provided (used) by financing activities	(2,255)	23,710
Effect of Foreign Currency Rate Changes on Cash	5,824	3,757
Net Change in Cash and Equivalents	(2,696)	(95,906)
Cash and Equivalents - Beginning of Year	381,844	321,863
Cash and Equivalents - End of Period	$379,148	$225,957

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				394,386	(913)	393,473
Cash dividends on Common Stock				(195,550)
Purchase of treasury stock			(750)	(52,238)
Stock compensation plans, net	92,683		1,716	(13,714)
Foreign currency translation		52,663			117
Defined benefit pension plans		29,870
Derivative financial instruments		(9,657)
Marketable securities		1,710
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Oct. 03, 2009	$1,842,147	($201,708)	$110,814	$2,105,758	$557	$3,857,568

Basis of Presentation

Basis of Presentation
	9 Months Ended Oct. 03, 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 September 2009, December 2008 and September 2008 relate to the fiscal periods ended on October 3, 2009, January 3, 2009 and September 27, 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 nine months ended September 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
	9 Months Ended Oct. 03, 2009 USD / shares
Changes in Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Note B Changes in Accounting Policies In June 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (the ASC) as the source of authoritative U.S. GAAP recognized by the FASB to be applied to nongovernmental entities. The ASC also recognizes rules and interpretive releases of the Securities and Exchange Commission (SEC) as authoritative GAAP for SEC registrants. The ASC, which became effective in the third quarter of 2009, supersedes all existing non-SEC accounting and reporting standards but does not change U.S. GAAP. Accordingly, references to standards issued prior to the codification have been replaced with a description of the applicable accounting guidance. During the first quarter of 2009, VF adopted the FASBs new accounting guidance on business combinations. The new guidance revises how business combinations are accounted for, both at the acquisition date and in subsequent periods. The new guidance 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. During the first quarter of 2009, VF adopted the FASBs new accounting guidance on noncontrolling interests in consolidated financial statements. The new guidance requires information about the entity 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. Upon adoption of the new guidance, the FASB requires retroactive treatment for the presentation and disclosure requirements, with all other requirements to be applied prospectively. 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 new accounting guidance issued by the FASB for derivative instruments and hedging activities. The new guidance 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 N. During the first quarter of 2009, VF adopted the FASBs new accounting guidance for fair value measurements. The new guidance requires quarterly disclosures (rather than just annually) of the fair value of financial assets and liabilities. See Note M. During the first quarter of 2009, VF adopted the FASBs new accounting guidance on the determination of the useful life of intangible assets. The new guidance amends the fa

Acquisitions

Acquisitions
	9 Months Ended Oct. 03, 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 authoritative guidance, 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: In thousands Cash and equivalents $ 5,244 Other tangible assets 18,234 Intangible assets -- indefinite-lived 98,900 Intangible assets -- amortizable 115,700 Goodwill 142,361 Total assets acquired 380,439 Current liabilities 7,384 Other liabilities, primarily deferred income taxes 79,038 Total liabilities assumed 86,422 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 pretax earnings included in VFs Consolidated Statements of Income for the third quarter were $20.0 million and $4.2 million and since the date of acquisition were $41.7 million and $8.5 million, respectively. Pro

Sale of Accounts Receivable

Sale of Accounts Receivable
	9 Months Ended Oct. 03, 2009 USD / shares
Sale of Accounts Receivable [Abstract]
Sale of Accounts Receivable Disclosure	Note D Sale of Accounts Receivable During September 2009, VF entered into an agreement to sell selected trade accounts receivable, on a revolving basis, to a financial institution. This agreement covers the sale of up to $105.0 million of accounts receivable on a nonrecourse basis. After the sale, VF continues to service and collect these accounts receivable on behalf of the financial institution but does not retain any other interests in the receivables. Net proceeds of this accounts receivable sale program are recognized in the Statement of Consolidated Cash Flows as part of the change in accounts receivable in cash from operations. By the end of September, VF sold $57.6 million of accounts receivable at their stated value, and accordingly accounts receivable in the September 2009 Consolidated Balance Sheet was reduced by that amount. The funding fee charged by the financial institution for this program, which was not significant for the period ended September 2009, is recorded in Miscellaneous Expense. Proceeds from this transaction were contributed to our defined benefit pension plan to improve its funded status; see Note G.

Intangible Assets

Intangible Assets
	9 Months Ended Oct. 03, 2009 USD / shares
Intangible Assets [Abstract]
Intangible Assets Disclosure	Note E Intangible Assets September 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 $ 444,210 $ 74,577 $ 369,633 $ 272,086 License agreements 24 years 180,263 40,725 139,538 145,389 Trademarks and other 7 years 17,868 10,470 7,398 9,240 Amortizable intangible assets, net 516,569 426,715 Indefinite-lived intangible assets: Trademarks 1,050,071 939,507 Intangible assets, net $ 1,566,640 $ 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 third quarter and nine months of 2009 was $10.7 million and $30.0 million, respectively. Estimated amortization expense for the remainder of 2009 is $10.9million and for the years 2010 through 2013 is $39.3 million, $36.5million, $34.4million and $32.9 million, respectively.

Goodwill

Goodwill
	9 Months Ended Oct. 03, 2009 USD / shares
Goodwill [Abstract]
Schedule of Goodwill	Note F 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 - - - - 142,361 142,361 Adjustments to purchase price allocation - - - - (3,454) (3,454) Adjustment to contingent consideration (189) - - - - (189) Currency translation 12,965 3,879 - - 2,790 19,634 Balance, September 2009 $ 567,486 $ 239,697 $ 56,703 $ 215,767 $ 392,497 $ 1,472,150

Pension Plans

Pension Plans
	9 Months Ended Oct. 03, 2009 USD / shares
Pension Plans [Abstract]
Pension and Other Postretirement Benefits Disclosure	Note G Pension Plans VFs net periodic pension cost contained the following components: Three Months Nine Months Ended September Ended September In thousands 2009 2008 2009 2008 Service cost benefits earned during the year $ 3,726 $ 4,162 $ 11,178 $ 12,486 Interest cost on projected benefit obligations 17,950 17,276 53,850 51,828 Expected return on plan assets (13,379) (20,840) (40,137) (62,520) Settlement loss - 3,242 - 3,242 Amortization of: Actuarial losses 15,131 254 45,393 1,180 Prior service costs 1,067 673 3,201 2,019 Net periodic pension cost $ 24,495 $ 4,767 $ 73,485 $ 8,235 Prior service costs 1,067 673 3,201 2,019 In September 2009, VF made a $100.0 million contribution to improve the funded status of its qualified pension plan. Also during the first nine months of 2009, VF made contributions totaling $8.9 million to pay benefits under VFs Supplemental Executive Retirement Plan (SERP). VF currently anticipates making an additional $0.9 million of contributions to pay benefits under the SERP during the remainder of 2009.

Business Segment Information

Business Segment Information
	9 Months Ended Oct. 03, 2009 USD / shares
Business Segment Information [Abstract]
Segment Reporting Disclosure	Note H 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 Nine Months Ended September Ended September In thousands 2009 2008 2009 2008 Coalition revenues: Outdoor and Action Sports $ 904,625 $ 906,608 $ 2,021,095 $ 2,066,351 Jeanswear 664,801 743,180 1,877,605 2,101,635 Imagewear 221,246 260,099 643,203 748,384 Sportswear 149,050 143,672 356,935 398,256 Contemporary Brands 124,009 120,550 328,611 329,991 Other 30,075 32,518 77,468 85,833 Total coalition revenues $2,093,806 $ 2,206,627 $ 5,304,917 $ 5,730,450 Coalition profit: Outdoor and Action Sports $ 209,051 $ 188,621 $ 364,310 $ 352,762 Jeanswear 110,782 122,868 266,699 323,499 Imagewear 19,521 40,757 61,476 104,529 Sportswear 23,576 15,491 35,003 32,078 Contemporary Brands 7,503 12,695 23,946 40,011 Other 912 (994) 283 (3,008) Total coalition profit 371,345 379,438 751,717 849,871 Corporate and other expenses (52,949) (29,904) (149,492) (89,541) Interest, net (20,905) (22,875) (63,409) (64,820) Income before income taxes $ 297,491 $ 326,659 $ 538,816 $ 695,510 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 September 2009 and $62.3 million for the nine months ended September 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)
	9 Months Ended Oct. 03, 2009 USD / shares
Capital and Comprehensive Income (Loss) [Abstract]
Stockholders' Equity Note Disclosure	Note I - Capital and Comprehensive Income (Loss) Common stock outstanding is net of shares held in treasury, and in substance retired. There were 13,162,657 treasury shares at September 2009, 12,198,054 at December 2008 and 12,198,054 at September 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, 256,221 shares of VF Common Stock at September 2009, 261,092 shares at December 2008, and 242,964 shares at September 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 $11.5 million, $10.8 million and $9.6 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 Nine Months Ended September Ended September In thousands 2009 2008 2009 2008 Net income $ 218,061 $ 234,051 $ 393,473 $ 487,015 Other comprehensive income: Foreign currency translation Amount arising during the period 53,258 (99,412) 68,481 (4,923) Less income tax effect (10,452) 22,427 (15,818) (1,955) Reclassification to net income during the period - - - (1,522) Less income tax effect - - - 533 Defined benefit pension plans Amortization of deferred actuarial loss 15,131 254 45,393 1,180 Amortization of prior service cost 1,067 673 3,201 2,019 Settlement charge - 3,242 - 3,242 Adjustment of funded status - - - 25,950 Less income tax effect (6,242) (1,599) (18,724) (12,418) Unrealized gains (losses) on derivative financial instruments Amount arising during the period (13,583) 10,272 (14,859) 982 Less income tax effect 5,233 (3,939) 5,725 (376) Reclassification to net income during the period 4,997 3,270 (850) 17,733 Less income tax effect (1,924) (1,253) 327 (6,799) Unrealized gains (losses) on marketable securities Amount arising during the period 478 (2,120) 1,710 (6,873) Other comprehensive income 47,963 (68,185) 74,586 16,773 Comprehensive income 266,024 165,866 468,059 503,788 Comprehensive income attributable to noncontrolling interests (216) (261) 796 (265) Comprehensive income attributable to VF Corporation $ 265,808 $ 165,605 $ 468,855 $ 503,523 Accumulat

Stock-based Compensation

Stock-based Compensation
	9 Months Ended Oct. 03, 2009 USD / shares
Stock-based Compensation [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments	Note J Stock-based Compensation During the first nine months of 2009, VF granted options for 1,358,045 shares of Common Stock at a weighted average exercise price of $53.67, 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 $15.39 per option. Also during the first nine months of 2009, VF granted 378,908 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 weighted average grant date fair value of the restricted stock units was $57.42 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
	9 Months Ended Oct. 03, 2009 USD / shares
Income Taxes [Abstract]
Income Tax Disclosure	Note K Income Taxes The effective income tax rate was 27.0% for the first nine months of 2009, compared with 30.0% 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 $4.2 million during the third quarter and nine month periods of 2009 primarily related to tax positions taken in prior years tax returns. During the next 12 months, management believes that it is reasonably possible that the amount of unrecognized tax benefits may decrease by approximately $18 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
	9 Months Ended Oct. 03, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Note L Earnings Per Share Three Months Nine Months Ended September Ended September In thousands, except per share amount 2009 2008 2009 2008 Earnings per share basic: Net income attributable to VF Corporation common stockholders $ 217,920 $ 233,875 $ 394,386 $ 486,885 Weighted average Common Stock outstanding 110,881 109,106 110,372 109,062 Earnings per share attributable to VF Corporation common stockholders $ 1.97 $ 2.14 $ 3.57 $ 4.46 Earnings per share diluted: Net income attributable to VF Corporation common stockholders $ 217,920 $ 233,875 $ 394,386 $ 486,885 Weighted average Common Stock outstanding 110,881 109,106 110,372 109,062 Stock options and other dilutive securities 1,264 2,152 1,099 2,317 Weighted average Common Stock and dilutive securities outstanding 112,145 111,258 111,471 111,379 Earnings per share attributable to VF Corporation common stockholders $ 1.94 $ 2.10 $ 3.54 $ 4.37 Outstanding options to purchase 2.7 million shares and 4.6 million shares of Common Stock for the three and nine months ended September 2009, respectively, and outstanding options to purchase 1.4 million shares for the three and nine months ended September 2008, were excluded from the computations of diluted earnings per share because the effect of their inclusion would have been antidilutive. In addition, 0.6 million restricted stock units for the three months and nine months ended September 2009 and 0.5 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
	9 Months Ended Oct. 03, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Disclosures	Note M Fair Value Measurements Fair value is defined in the accounting standards 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, the accounting standards establish 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) September 2009 Financial assets: Cash equivalents $ 208,408 $ 208,408 $ - $ - Derivative instruments 6,554 - 6,554 - Investment securities 174,089 134,435 39,654 - Financial liabilities: Derivative instruments 25,574 - 25,574 - Deferred compensation 193,276 - 193,276 - 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 - 176,394 - For the above financial assets and financial liabilities measured at fair value, cash equivalents represent funds held in institutional money market funds and ti

Derivative Financial Instrument

Derivative Financial Instruments and Hedging Activities
	9 Months Ended Oct. 03, 2009 USD / shares
Derivative Financial Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities Disclosure	Note N 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 in the value of the derivative contracts offset losses and gains in the value of the underlying hedged exposures. In addition, in prior years VF had used derivatives in limited instances to hedge interest rate risk. Accounting for derivative instruments All derivative instruments are recognized 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, hedge accounting treatm

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	9 Months Ended Oct. 03, 2009 USD / shares
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note O Recently Issued Accounting Standards In March 2009, the FASB issued new accounting guidance on employers disclosures for postretirement benefit plan assets. The new guidance 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. This new guidance, 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 new accounting guidance on the accounting for transfers of financial assets. This amends the accounting guidance for determining whether a transfer of financial assets is a sale or a secured borrowing and expands the related disclosure requirements. The guidance, effective for VFs 2010 fiscal year, is not expected to have a significant effect on VFs consolidated financial statements. Other new pronouncements issued but not effective until after September2009 are not expected to have a significant effect on VFs consolidated financial position, results of operations or disclosures.

Subsequent Events

Subsequent Events
	9 Months Ended Oct. 03, 2009 USD / shares
Subsequent Events [Abstract]
Schedule of Subsequent Events	Note P Subsequent Events VFs Board of Directors declared a quarterly cash dividend of $0.60 per share, payable on December 18, 2009 to shareholders of record on December 8, 2009. Management has evaluated subsequent events through November 10, 2009, the date of issuance of the financial statements.