Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2014 | Oct. 25, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 27-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'VFC | ' |
Entity Registrant Name | 'V F CORP | ' |
Entity Central Index Key | '0000103379 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 431,872,268 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Current assets | ' | ' | ' |
Cash and equivalents | $496,500 | $776,403 | $315,661 |
Accounts receivable, less allowance for doubtful accounts of: September 2014 - $39,950; December 2013 - $45,350; September 2013 - $56,733 | 1,764,636 | 1,360,443 | 1,663,118 |
Inventories | 1,822,162 | 1,399,062 | 1,752,284 |
Other current assets | 440,915 | 347,074 | 362,841 |
Total current assets | 4,524,213 | 3,882,982 | 4,093,904 |
Property, plant and equipment | 940,193 | 932,792 | 904,809 |
Intangible assets | 2,785,651 | 2,960,201 | 2,939,371 |
Goodwill | 1,989,871 | 2,021,750 | 2,014,717 |
Other assets | 575,948 | 517,718 | 499,260 |
Total assets | 10,815,876 | 10,315,443 | 10,452,061 |
Current liabilities | ' | ' | ' |
Short-term borrowings | 654,839 | 18,810 | 468,310 |
Current portion of long-term debt | 4,374 | 5,167 | 2,987 |
Accounts payable | 674,950 | 638,732 | 659,135 |
Accrued liabilities | 932,315 | 905,292 | 924,228 |
Total current liabilities | 2,266,478 | 1,568,001 | 2,054,660 |
Long-term debt | 1,424,311 | 1,426,829 | 1,427,138 |
Other liabilities | 1,262,727 | 1,243,575 | 1,341,386 |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2014, December 2013 or September 2013 | ' | ' | ' |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2014 - 431,649,948; December 2013 - 440,310,370; September 2013 - 439,220,044 | 107,912 | 110,078 | 109,805 |
Additional paid-in capital | 2,923,024 | 2,746,590 | 2,702,110 |
Accumulated other comprehensive income (loss) | -418,235 | -211,720 | -365,970 |
Retained earnings | 3,249,659 | 3,432,090 | 3,182,932 |
Total stockholders' equity | 5,862,360 | 6,077,038 | 5,628,877 |
Total liabilities and stockholders' equity | $10,815,876 | $10,315,443 | $10,452,061 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Accounts receivable, allowance for doubtful accounts | $39,950 | $45,350 | $56,733 |
Preferred Stock, par value | $1 | $1 | $1 |
Preferred Stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred Stock, shares outstanding | 0 | 0 | 0 |
Common Stock, stated value | $0.25 | $0.25 | $0.25 |
Common Stock, shares authorized | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common Stock, shares outstanding | 431,649,948 | 440,310,370 | 439,220,044 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Net sales | $3,486,998 | $3,266,681 | $8,610,521 | $8,043,638 |
Royalty income | 33,449 | 30,588 | 92,780 | 85,911 |
Total revenues | 3,520,447 | 3,297,269 | 8,703,301 | 8,129,549 |
Costs and operating expenses | ' | ' | ' | ' |
Cost of goods sold | 1,818,655 | 1,728,144 | 4,464,565 | 4,226,779 |
Selling, general and administrative expenses | 1,068,710 | 989,422 | 2,982,656 | 2,764,005 |
Costs and Expenses, Total | 2,887,365 | 2,717,566 | 7,447,221 | 6,990,784 |
Operating income | 633,082 | 579,703 | 1,256,080 | 1,138,765 |
Interest income | 1,852 | 1,259 | 4,702 | 2,564 |
Interest expense | -22,555 | -21,246 | -64,530 | -63,788 |
Other income (expense), net | -1,609 | -1,250 | -4,209 | -1,723 |
Income before income taxes | 610,770 | 558,466 | 1,192,043 | 1,075,818 |
Income taxes | 140,241 | 124,705 | 266,639 | 233,366 |
Net income | $470,529 | $433,761 | $925,404 | $842,452 |
Earnings per common share | ' | ' | ' | ' |
Basic | $1.09 | $0.99 | $2.14 | $1.92 |
Diluted | $1.08 | $0.97 | $2.10 | $1.89 |
Cash dividends per common share | $0.26 | $0.22 | $0.79 | $0.65 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | ||||
Net income | $470,529 | $433,761 | $925,404 | $842,452 | ||||
Foreign currency translation | ' | ' | ' | ' | ||||
Gains (losses) arising during the period | -235,077 | 99,395 | -271,811 | 60,374 | ||||
Less income tax effect | 3,293 | -933 | 3,905 | -560 | ||||
Defined benefit pension plans | ' | ' | ' | ' | ||||
Amortization of net deferred actuarial losses | 9,385 | [1] | 21,333 | [1] | 28,158 | [1] | 64,021 | [1] |
Amortization of deferred prior service costs | 1,361 | [1] | 317 | [1] | 4,085 | [1] | 974 | [1] |
Less income tax effect | -4,521 | -8,473 | -12,754 | -26,065 | ||||
Derivative financial instruments | ' | ' | ' | ' | ||||
Gains (losses) arising during the period | 51,351 | -54,432 | 43,586 | -2,032 | ||||
Less income tax effect | -20,180 | 21,391 | -17,129 | 797 | ||||
Reclassification to net income for (gains) losses realized | 12,911 | -6,571 | 25,734 | -15,707 | ||||
Less income tax effect | -5,074 | 2,583 | -10,113 | 6,173 | ||||
Marketable securities | ' | ' | ' | ' | ||||
Gains (losses) arising during the period | 871 | 479 | -289 | 9 | ||||
Less income tax effect | -343 | -188 | 113 | -59 | ||||
Net other comprehensive income (loss) | -186,023 | 74,901 | -206,515 | 87,925 | ||||
Comprehensive income | $284,506 | $508,662 | $718,889 | $930,377 | ||||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Operating activities | ' | ' |
Net income | $925,404 | $842,452 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation | 126,339 | 112,989 |
Amortization of intangible assets | 33,680 | 34,450 |
Other amortization | 40,500 | 33,670 |
Stock-based compensation | 77,440 | 70,258 |
Provision for doubtful accounts | 5,195 | 14,747 |
Pension expense in excess of (less than) contributions | 29,791 | -45,669 |
Other, net | 86,241 | 65,740 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -467,399 | -455,712 |
Inventories | -454,849 | -399,396 |
Other current assets | -59,472 | -44,488 |
Accounts payable | 46,060 | 96,246 |
Accrued compensation | 17,005 | 9,816 |
Accrued income taxes | -113,401 | -61,003 |
Accrued liabilities | 82,037 | 133,646 |
Other assets and liabilities | -7,725 | 10,330 |
Cash provided by operating activities | 366,846 | 418,076 |
Investing activities | ' | ' |
Capital expenditures | -171,606 | -203,469 |
Software purchases | -66,815 | -41,923 |
Other, net | -16,612 | -9,896 |
Cash used by investing activities | -255,033 | -255,288 |
Financing activities | ' | ' |
Net increase in short-term borrowings | 637,786 | 457,856 |
Payments on long-term debt | -3,549 | -402,141 |
Purchases of treasury stock | -727,536 | -283,433 |
Cash dividends paid | -340,690 | -286,790 |
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 9,433 | 30,902 |
Tax benefits of stock-based compensation | 47,786 | 41,946 |
Cash used by financing activities | -376,770 | -441,660 |
Effect of foreign currency rate changes on cash and equivalents | -14,946 | -2,928 |
Net change in cash and equivalents | -279,903 | -281,800 |
Cash and equivalents - beginning of year | 776,403 | 597,461 |
Cash and equivalents - end of period | $496,500 | $315,661 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands, except Share data | |||||
Beginning balance at Dec. 29, 2012 | ' | $110,205 | $2,527,868 | ($453,895) | $2,941,447 |
Beginning balance (in shares) at Dec. 29, 2012 | ' | 440,818,936 | ' | ' | ' |
Net income | ' | ' | ' | ' | 1,210,119 |
Dividends on Common Stock | ' | ' | ' | ' | -402,136 |
Purchases of treasury stock (in Shares) | ' | -6,849,160 | ' | ' | ' |
Purchases of treasury stock | ' | -1,712 | ' | ' | -280,408 |
Stock-based compensation, net (in Shares) | ' | 6,340,594 | ' | ' | ' |
Stock-based compensation, net | ' | 1,585 | 218,722 | ' | -36,932 |
Foreign currency translation | ' | ' | ' | 110,715 | ' |
Defined benefit pension plans | ' | ' | ' | 143,087 | ' |
Derivative financial instruments | ' | ' | ' | -12,324 | ' |
Marketable securities | ' | ' | ' | 697 | ' |
Ending balance at Dec. 28, 2013 | 6,077,038 | 110,078 | 2,746,590 | -211,720 | 3,432,090 |
Ending balance (in shares) at Dec. 28, 2013 | 440,310,370 | 440,310,370 | ' | ' | ' |
Net income | 925,404 | ' | ' | ' | 925,404 |
Dividends on Common Stock | ' | ' | ' | ' | -340,690 |
Purchases of treasury stock (in Shares) | -12,033,300 | -12,033,300 | ' | ' | ' |
Purchases of treasury stock | -725,500 | -3,008 | ' | ' | -724,528 |
Stock-based compensation, net (in Shares) | ' | 3,372,878 | ' | ' | ' |
Stock-based compensation, net | ' | 842 | 176,434 | ' | -42,617 |
Foreign currency translation | ' | ' | ' | -267,906 | ' |
Defined benefit pension plans | 19,489 | ' | ' | 19,489 | ' |
Derivative financial instruments | ' | ' | ' | 42,078 | ' |
Marketable securities | ' | ' | ' | -176 | ' |
Ending balance at Sep. 27, 2014 | $5,862,360 | $107,912 | $2,923,024 | ($418,235) | $3,249,659 |
Ending balance (in shares) at Sep. 27, 2014 | 431,649,948 | 431,649,948 | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2014 | |
Basis of Presentation | ' |
Note A – Basis of Presentation | |
VF Corporation (together with its subsidiaries, collectively known as “VF”) uses a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended September 2014, December 2013 and September 2013 relate to the fiscal periods ended on September 27, 2014, December 28, 2013 and September 28, 2013, 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 2013 consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and nine months ended September 2014 are not necessarily indicative of results that may be expected for any other interim period or for the year ending January 3, 2015. 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 2013 (“2013 Form 10-K”). | |
Concessions are retail store locations, which are all outside the U.S., where VF is responsible for all aspects of operations without ownership of the retail space. Under typical concession arrangements, VF pays a concession fee for use of the space based on a percentage of retail sales. Effective fiscal 2014, VF has included all concession fees as a component of selling, general and administrative expenses instead of the previous treatment as an offset to revenue in the Consolidated Statement of Income. The change in classification did not impact operating income. The impact on prior periods is not material and thus, comparative numbers have not been restated. |
Sale_of_Accounts_Receivable
Sale of Accounts Receivable | 9 Months Ended |
Sep. 27, 2014 | |
Sale of Accounts Receivable | ' |
Note B – Sale of Accounts Receivable | |
VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under the agreement, up to $237.5 million of accounts receivable may be sold to the financial institution and remain outstanding at any point in time. After the sale, VF does not retain any interests in the accounts receivable and removes them from the Consolidated Balance Sheets, but continues to service and collect outstanding accounts receivable on behalf of the financial institution. At September 2014, December 2013 and September 2013, accounts receivable had been reduced by $172.0 million, $136.4 million and $155.0 million, respectively, related to this program. During the first nine months of 2014, VF sold $916.3 million of accounts receivable at their stated amounts, less a funding fee charged by the financial institution. The funding fee is recorded in other income (expense), net, and totaled $1.2 million for the first nine months of 2014. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows. |
Inventories
Inventories | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Inventories | ' | ||||||||||||
Note C – Inventories | |||||||||||||
September | December | September | |||||||||||
In thousands | 2014 | 2013 | 2013 | ||||||||||
Finished products | $ | 1,570,512 | $ | 1,159,555 | $ | 1,496,419 | |||||||
Work in process | 101,037 | 94,586 | 99,367 | ||||||||||
Raw materials | 150,613 | 144,921 | 156,498 | ||||||||||
Total inventories | $ | 1,822,162 | $ | 1,399,062 | $ | 1,752,284 | |||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Note D – Property, Plant and Equipment | |||||||||||||
In thousands | September | December | September | ||||||||||
2014 | 2013 | 2013 | |||||||||||
Land and improvements | $ | 57,626 | $ | 56,828 | $ | 52,879 | |||||||
Buildings and improvements | 996,208 | 953,931 | 948,628 | ||||||||||
Machinery and equipment | 1,227,551 | 1,159,221 | 1,130,388 | ||||||||||
Property, plant and equipment, at cost | 2,281,385 | 2,169,980 | 2,131,895 | ||||||||||
Less accumulated depreciation and amortization | 1,341,192 | 1,237,188 | 1,227,086 | ||||||||||
Property, plant and equipment, net | $ | 940,193 | $ | 932,792 | $ | 904,809 | |||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||
Note E – Intangible Assets | |||||||||||||||||||||
Weighted | Sep-14 | December 2013 | |||||||||||||||||||
Average | |||||||||||||||||||||
Amortization | |||||||||||||||||||||
Dollars in thousands | Period | Amortization Methods | Cost | Accumulated | Net | Net | |||||||||||||||
Amortization | Carrying | Carrying | |||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||
Customer relationships | 20 years | Accelerated | $ | 607,488 | $ | 229,554 | $ | 377,934 | $ | 417,439 | |||||||||||
License agreements | 24 years | Accelerated and straight-line | 183,496 | 84,262 | 99,234 | 107,789 | |||||||||||||||
Other | 9 years | Straight-line | 13,111 | 8,165 | 4,946 | 6,524 | |||||||||||||||
Amortizable intangible assets, net | $ | 482,114 | 531,752 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||
Trademarks and trade names | 2,303,537 | 2,428,449 | |||||||||||||||||||
Intangible assets, net | $ | 2,785,651 | $ | 2,960,201 | |||||||||||||||||
Amortization expense for the third quarter and first nine months of 2014 was $11.2 million and $33.7 million, respectively. Based on existing levels of amortizable intangible assets noted above, estimated amortization expense for the next five years is: | |||||||||||||||||||||
In millions | Estimated | ||||||||||||||||||||
Year | Amortization Expense | ||||||||||||||||||||
2014 | $ | 44.6 | |||||||||||||||||||
2015 | 41.8 | ||||||||||||||||||||
2016 | 40.5 | ||||||||||||||||||||
2017 | 39.3 | ||||||||||||||||||||
2018 | 38.7 |
Goodwill
Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||||||
Note F – Goodwill | |||||||||||||||||||||||||
Changes in goodwill are summarized by business segment as follows: | |||||||||||||||||||||||||
In thousands | Outdoor & | Jeanswear | Imagewear | Sportswear | Contemporary | Total | |||||||||||||||||||
Action Sports | Brands | ||||||||||||||||||||||||
Balance, December 2013 | $ | 1,434,898 | $ | 228,430 | $ | 58,747 | $ | 157,314 | $ | 142,361 | $ | 2,021,750 | |||||||||||||
Currency translation | (26,839 | ) | (5,040 | ) | — | — | — | (31,879 | ) | ||||||||||||||||
Balance, September 2014 | $ | 1,408,059 | $ | 223,390 | $ | 58,747 | $ | 157,314 | $ | 142,361 | $ | 1,989,871 | |||||||||||||
Accumulated impairment charges for the Outdoor & Action Sports, Sportswear and Contemporary Brands Coalitions were $43.4 million, $58.5 million and $195.2 million, respectively, for the periods presented above. No impairment charges were recorded in the first nine months of 2014. |
Pension_Plans
Pension Plans | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Pension Plans | ' | ||||||||||||||||
Note G – 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost – benefits earned during the period | $ | 6,046 | $ | 6,346 | $ | 18,228 | $ | 19,566 | |||||||||
Interest cost on projected benefit obligations | 20,387 | 17,988 | 61,180 | 54,017 | |||||||||||||
Expected return on plan assets | (22,682 | ) | (23,635 | ) | (68,060 | ) | (70,945 | ) | |||||||||
Amortization of deferred amounts: | |||||||||||||||||
Net deferred actuarial losses | 9,385 | 21,333 | 28,158 | 64,021 | |||||||||||||
Deferred prior service costs | 1,361 | 317 | 4,085 | 974 | |||||||||||||
Net periodic pension cost | $ | 14,497 | $ | 22,349 | $ | 43,591 | $ | 67,633 | |||||||||
During the first nine months of 2014, VF contributed $13.8 million to its defined benefit plans. VF intends to make approximately $6.7 million of additional contributions during the remainder of 2014. |
Capital_and_Accumulated_Other_
Capital and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Capital and Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Note H – Capital and Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
During the first nine months of 2014, the Company purchased 12.0 million shares of Common Stock in open market transactions for $725.5 million 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 2014, VF restored 12.1 million treasury shares to an unissued status; accordingly, they are no longer recognized as shares held in treasury. There were no shares held in treasury at the end of September 2014 or December 2013, and 17.0 million shares held in treasury at the end of September 2013 which were restored to an unissued status during the following quarter. 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 2014, the Company purchased 33,300 shares of Common Stock in open market transactions for $2.0 million. Balances related to shares held for deferred compensation plans are as follows: | |||||||||||||||||||||
In millions, except share amounts | September | December | September | ||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||
Shares held for deferred compensation plans | 640,404 | 704,104 | 705,664 | ||||||||||||||||||
Cost of shares held for deferred compensation plans | $ | 7.6 | $ | 8.4 | $ | 8.2 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Comprehensive income consists of net income and specified components of other comprehensive income (“OCI”). OCI consists of 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 other comprehensive income (loss) in stockholders’ equity, as follows: | |||||||||||||||||||||
In thousands | September | December | September | ||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||
Foreign currency translation | $ | (161,259 | ) | $ | 106,647 | $ | 55,746 | ||||||||||||||
Defined benefit pension plans | (257,962 | ) | (277,451 | ) | (381,608 | ) | |||||||||||||||
Derivative financial instruments | 324 | (41,754 | ) | (40,199 | ) | ||||||||||||||||
Marketable securities | 662 | 838 | 91 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (418,235 | ) | $ | (211,720 | ) | $ | (365,970 | ) | ||||||||||||
The changes in accumulated other comprehensive income (loss), net of related taxes, are as follows: | |||||||||||||||||||||
Three Months Ended September 2014 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, June 2014 | $ | 70,525 | $ | (264,187 | ) | $ | (38,684 | ) | $ | 134 | $ | (232,212 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (231,784 | ) | — | 31,171 | 528 | (200,085 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 6,225 | 7,837 | — | 14,062 | ||||||||||||||||
Net other comprehensive income (loss) | (231,784 | ) | 6,225 | 39,008 | 528 | (186,023 | ) | ||||||||||||||
Balance, September 2014 | $ | (161,259 | ) | $ | (257,962 | ) | $ | 324 | $ | 662 | $ | (418,235 | ) | ||||||||
Three Months Ended September 2013 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, June 2013 | $ | (42,716 | ) | $ | (394,785 | ) | $ | (3,170 | ) | $ | (200 | ) | $ | (440,871 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 98,462 | — | (33,041 | ) | 291 | 65,712 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 13,177 | (3,988 | ) | — | 9,189 | |||||||||||||||
Net other comprehensive income (loss) | 98,462 | 13,177 | (37,029 | ) | 291 | 74,901 | |||||||||||||||
Balance, September 2013 | $ | 55,746 | $ | (381,608 | ) | $ | (40,199 | ) | $ | 91 | $ | (365,970 | ) | ||||||||
Nine Months Ended September 2014 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, December 2013 | $ | 106,647 | $ | (277,451 | ) | $ | (41,754 | ) | $ | 838 | $ | (211,720 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (267,906 | ) | — | 26,457 | (176 | ) | (241,625 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 19,489 | 15,621 | — | 35,110 | ||||||||||||||||
Net other comprehensive income (loss) | (267,906 | ) | 19,489 | 42,078 | (176 | ) | (206,515 | ) | |||||||||||||
Balance, September 2014 | $ | (161,259 | ) | $ | (257,962 | ) | $ | 324 | $ | 662 | $ | (418,235 | ) | ||||||||
Nine Months Ended September 2013 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, December 2012 | $ | (4,068 | ) | $ | (420,538 | ) | $ | (29,430 | ) | $ | 141 | $ | (453,895 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 59,814 | — | (1,235 | ) | (50 | ) | 58,529 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 38,930 | (9,534 | ) | — | 29,396 | |||||||||||||||
Net other comprehensive income (loss) | 59,814 | 38,930 | (10,769 | ) | (50 | ) | 87,925 | ||||||||||||||
Balance, September 2013 | $ | 55,746 | $ | (381,608 | ) | $ | (40,199 | ) | $ | 91 | $ | (365,970 | ) | ||||||||
Reclassifications out of accumulated other comprehensive income (loss) are as follows: | |||||||||||||||||||||
In thousands | Affected Line Item in the | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Details About Accumulated Other | Consolidated Statements | September | September | ||||||||||||||||||
Comprehensive Income (Loss) Components | of Income | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Amortization of defined benefit pension plans: | |||||||||||||||||||||
Net deferred actuarial losses | (a) | $ | (9,385 | ) | $ | (21,333 | ) | $ | (28,158 | ) | $ | (64,021 | ) | ||||||||
Deferred prior service costs | (a) | (1,361 | ) | (317 | ) | (4,085 | ) | (974 | ) | ||||||||||||
Total before tax | (10,746 | ) | (21,650 | ) | (32,243 | ) | (64,995 | ) | |||||||||||||
Tax benefit (expense) | 4,521 | 8,473 | 12,754 | 26,065 | |||||||||||||||||
Net of tax | $ | (6,225 | ) | $ | (13,177 | ) | $ | (19,489 | ) | $ | (38,930 | ) | |||||||||
Gains (losses) on derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Net sales | $ | (7,657 | ) | $ | 6,195 | $ | (7,539 | ) | $ | 7,418 | ||||||||||
Foreign exchange contracts | Cost of goods sold | (3,496 | ) | 3,574 | (13,199 | ) | 11,115 | ||||||||||||||
Foreign exchange contracts | Other income (expense), net | (730 | ) | (2,218 | ) | (1,945 | ) | 83 | |||||||||||||
Interest rate contracts | Interest expense | (1,028 | ) | (980 | ) | (3,051 | ) | (2,909 | ) | ||||||||||||
Total before tax | (12,911 | ) | 6,571 | (25,734 | ) | 15,707 | |||||||||||||||
Tax benefit (expense) | 5,074 | (2,583 | ) | 10,113 | (6,173 | ) | |||||||||||||||
Net of tax | $ | (7,837 | ) | $ | 3,988 | $ | (15,621 | ) | $ | 9,534 | |||||||||||
Total reclassifications for the period | Net of tax | $ | (14,062 | ) | $ | (9,189 | ) | $ | (35,110 | ) | $ | (29,396 | ) | ||||||||
(a) | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||
Sep. 27, 2014 | |||
Stock-based Compensation | ' | ||
Note I – Stock-based Compensation | |||
During the first nine months of 2014, VF granted options to employees and nonemployee members of VF’s Board of Directors to purchase 2,825,207 shares of Common Stock at a weighted average exercise price of $56.86 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. 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: | |||
Nine Months Ended | |||
Sep-14 | |||
Expected volatility | 23% to 29% | ||
Weighted average expected volatility | 26% | ||
Expected term (in years) | 5.5 to 7.3 | ||
Dividend yield | 2.10% | ||
Risk-free interest rate | 0.1% to 2.7% | ||
Weighted average fair value at date of grant | $12.01 | ||
Also during the first nine months of 2014, VF granted 586,769 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 RSU has a potential final value ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is based on achievement of a three-year 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 $56.86 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 weighted average grant date fair value of the TSR-based adjustment related to the 2014 RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $1.41 per share. | |||
VF granted 12,595 nonperformance-based restricted stock units to nonemployee members of the Board of Directors during the first nine months of 2014. 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 $56.79 per share. | |||
VF granted 17,000 nonperformance-based restricted stock units to employees during the first nine months of 2014. These units vest four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $58.89 per share. | |||
VF granted 155,100 restricted shares of VF Common Stock to employees during the first nine months of 2014. These shares generally vest four years from the date of grant. The weighted average fair market value of VF Common Stock at the date the units were granted was $60.21 per share. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2014 | |
Income Taxes | ' |
Note J – Income Taxes | |
The effective income tax rate for the first nine months of 2014 was 22.4% compared with 21.7% in the first nine months of 2013. The first nine months of 2014 included a net discrete tax benefit of $17.7 million, which included $4.1 million of prior year refund claims and $10.1 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest, reducing the effective income tax rate by 1.5%. The first nine months of 2013 included a net discrete tax benefit of $19.0 million, which included $8.3 million of tax benefits related to the extension of certain tax credits and other provisions of the Internal Revenue Code enacted in 2013 which were retroactive to 2012, and $6.9 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest, reducing the effective income tax rate by 1.8%. Without discrete items, the effective tax rate for the first nine months of 2014 increased by 0.4% compared with the 2013 period primarily due to the impact of tax law changes in the U.S. | |
VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous states and foreign jurisdictions. In the U.S., the Internal Revenue Service (“IRS”) examination for tax years 2007, 2008 and 2009 was completed in 2012. VF has appealed the results of the 2007 to 2009 examination to the IRS Appeals office. Tax years prior to 2007 have been effectively settled with the IRS. The IRS commenced its examination of VF’s 2010 and 2011 tax returns during the fourth quarter of 2013, and such examination is still ongoing. During the second quarter of 2014, the IRS completed its examination of Timberland’s 2010 tax return. The examination of Timberland’s 2011 tax return is still ongoing. In addition, VF is currently subject to examinations by various state and foreign 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 examinations and negotiations will conclude during the next 12 months. | |
During the first nine months of 2014, the amount of net unrecognized tax benefits and associated interest decreased by $1.9 million to $107.7 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 $31.7 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $26.5 million would reduce income tax expense. |
Business_Segment_Information
Business Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Business Segment Information | ' | ||||||||||||||||
Note K – 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Coalition revenues: | |||||||||||||||||
Outdoor & Action Sports | $ | 2,180,879 | $ | 1,971,963 | $ | 5,034,670 | $ | 4,459,845 | |||||||||
Jeanswear | 750,446 | 747,241 | 2,046,614 | 2,076,919 | |||||||||||||
Imagewear | 292,531 | 284,480 | 805,733 | 779,064 | |||||||||||||
Sportswear | 163,442 | 155,208 | 435,049 | 416,919 | |||||||||||||
Contemporary Brands | 99,382 | 104,998 | 293,737 | 307,339 | |||||||||||||
Other | 33,767 | 33,379 | 87,498 | 89,463 | |||||||||||||
Total coalition revenues | $ | 3,520,447 | $ | 3,297,269 | $ | 8,703,301 | $ | 8,129,549 | |||||||||
Coalition profit: | |||||||||||||||||
Outdoor & Action Sports | $ | 475,444 | $ | 421,177 | $ | 880,618 | $ | 748,137 | |||||||||
Jeanswear | 156,998 | 158,334 | 386,401 | 410,551 | |||||||||||||
Imagewear | 42,855 | 40,698 | 115,944 | 107,343 | |||||||||||||
Sportswear | 22,979 | 23,987 | 45,801 | 52,481 | |||||||||||||
Contemporary Brands | 4,869 | 9,456 | 21,611 | 29,910 | |||||||||||||
Other | 1,193 | (47 | ) | (1,997 | ) | (2,195 | ) | ||||||||||
Total coalition profit | 704,338 | 653,605 | 1,448,378 | 1,346,227 | |||||||||||||
Corporate and other expenses | (72,865 | ) | (75,152 | ) | (196,507 | ) | (209,185 | ) | |||||||||
Interest expense, net | (20,703 | ) | (19,987 | ) | (59,828 | ) | (61,224 | ) | |||||||||
Income before income taxes | $ | 610,770 | $ | 558,466 | $ | 1,192,043 | $ | 1,075,818 | |||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note L – Earnings Per Share | |||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||
In thousands, except per share amounts | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Earnings per share – basic: | |||||||||||||||||
Net income | $ | 470,529 | $ | 433,761 | $ | 925,404 | $ | 842,452 | |||||||||
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 | |||||||||||||
Earnings per common share | $ | 1.09 | $ | 0.99 | $ | 2.14 | $ | 1.92 | |||||||||
Earnings per share – diluted: | |||||||||||||||||
Net income | $ | 470,529 | $ | 433,761 | $ | 925,404 | $ | 842,452 | |||||||||
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 | |||||||||||||
Incremental shares from stock options and other dilutive securities | 6,949 | 7,440 | 7,372 | 7,964 | |||||||||||||
Adjusted weighted average common shares outstanding | 437,587 | 445,620 | 440,328 | 446,480 | |||||||||||||
Earnings per common share | $ | 1.08 | $ | 0.97 | $ | 2.1 | $ | 1.89 | |||||||||
Outstanding options to purchase 0.1 million shares of Common Stock were excluded from the calculation of diluted earnings per share for the three month periods ended September 2014 and 2013 because the effect of their inclusion would have been antidilutive. Outstanding options to purchase 1.8 million and 1.2 million shares of Common Stock were excluded from the calculation of diluted earnings per share for the nine month periods ended September 2014 and 2013, respectively, because the effect of their inclusion would have been antidilutive. In addition, 1.3 million and 1.7 million of performance-based restricted stock units were excluded from the calculation of diluted earnings per share for the three and nine month periods ended September 2014 and September 2013, respectively, because these units are not considered to be contingent outstanding shares. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note M – Fair Value Measurements | |||||||||||||||||
Financial assets and financial liabilities measured and reported at fair value are classified in a three level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. | ||||||||||||||||
• | Level 3 — Prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. | ||||||||||||||||
The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: | |||||||||||||||||
Total | Fair Value Measurement Using (a) | ||||||||||||||||
In thousands | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Sep-14 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 172,191 | $ | 172,191 | $ | — | $ | — | |||||||||
Time deposits | 112,886 | 112,886 | — | — | |||||||||||||
Derivative financial instruments | 57,213 | — | 57,213 | — | |||||||||||||
Investment securities | 229,965 | 209,227 | 20,738 | — | |||||||||||||
Other marketable securities | 5,520 | 5,520 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 31,138 | — | 31,138 | — | |||||||||||||
Deferred compensation | 287,353 | — | 287,353 | — | |||||||||||||
Dec-13 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 352,942 | $ | 352,942 | $ | — | $ | — | |||||||||
Time deposits | 121,097 | 121,097 | — | — | |||||||||||||
Derivative financial instruments | 16,088 | — | 16,088 | — | |||||||||||||
Investment securities | 214,035 | 193,540 | 20,495 | — | |||||||||||||
Other marketable securities | 5,809 | 5,809 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 46,791 | — | 46,791 | — | |||||||||||||
Deferred compensation | 274,659 | — | 274,659 | — | |||||||||||||
(a) | There were no transfers among the levels within the fair value hierarchy during the first nine months of 2014 or the year ended December 2013. | ||||||||||||||||
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, 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) that is valued based on the net asset values of the underlying 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. Other marketable securities consist of common stock investments classified as available-for-sale, the fair value of which is based on quoted prices in active markets. | |||||||||||||||||
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 2014 and December 2013, their carrying values approximated their fair values. Additionally, at September 2014 and December 2013, the carrying value of VF’s long-term debt, including the current portion, was $1,428.7 million and $1,432.0 million, respectively, compared with a fair value of $1,656.9 million and $1,568.4 million at those dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | ' | ||||||||||||||||||||||||
Note N – 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 $1.8 billion at September 2014, $1.9 billion at December 2013, and $2.1 billion at September 2013, consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Mexican peso, Japanese yen and Polish zloty. Derivative contracts have maturities up to 24 months. | |||||||||||||||||||||||||
The following table presents outstanding derivatives on a gross basis by individual contract: | |||||||||||||||||||||||||
Fair Value of Derivatives with | Fair Value of Derivatives with | ||||||||||||||||||||||||
Unrealized Gains | Unrealized Losses | ||||||||||||||||||||||||
In thousands | September | December | September | September | December | September | |||||||||||||||||||
2014 | 2013 | 2013 | 2014 | 2013 | 2013 | ||||||||||||||||||||
Foreign currency exchange contracts designated as hedging instruments | $ | 57,009 | $ | 15,964 | $ | 12,685 | $ | (29,419 | ) | $ | (46,627 | ) | $ | (37,376 | ) | ||||||||||
Foreign currency exchange contracts not designated as hedging instruments | 204 | 124 | 47 | (1,719 | ) | (164 | ) | (315 | ) | ||||||||||||||||
Total derivatives | $ | 57,213 | $ | 16,088 | $ | 12,732 | $ | (31,138 | ) | $ | (46,791 | ) | $ | (37,691 | ) | ||||||||||
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. However, if VF were to offset and record the asset and liability balances of all 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 as of September 2014, December 2013 and September 2013 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: | |||||||||||||||||||||||||
Sep-14 | Dec-13 | Sep-13 | |||||||||||||||||||||||
In thousands | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||
Asset | Liability | Asset | Liability | Asset | Liability | ||||||||||||||||||||
Gross amounts presented in the Consolidated Balance Sheets | $ | 57,213 | $ | (31,138 | ) | $ | 16,088 | $ | (46,791 | ) | $ | 12,732 | $ | (37,691 | ) | ||||||||||
Gross amounts not offset in the Consolidated Balance Sheets | (22,863 | ) | 22,863 | (11,641 | ) | 11,641 | (10,497 | ) | 10,497 | ||||||||||||||||
Net amounts | $ | 34,350 | $ | (8,275 | ) | $ | 4,447 | $ | (35,150 | ) | $ | 2,235 | $ | (27,194 | ) | ||||||||||
Derivatives are classified as current or noncurrent based on their maturity dates, as follows: | |||||||||||||||||||||||||
In thousands | September | December | September | ||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||
Other current assets | $ | 41,875 | $ | 12,699 | $ | 12,257 | |||||||||||||||||||
Accrued liabilities (current) | (25,177 | ) | (36,622 | ) | (28,743 | ) | |||||||||||||||||||
Other assets (noncurrent) | 15,338 | 3,389 | 475 | ||||||||||||||||||||||
Other liabilities (noncurrent) | (5,961 | ) | (10,169 | ) | (8,948 | ) | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||
VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production 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 | Gain (Loss) on Derivatives | |||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | ||||||||||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||||||||||
Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign currency exchange | $ | 51,351 | $ | (54,432 | ) | $ | 43,586 | $ | (2,032 | ) | |||||||||||||||
In thousands | Gain (Loss) Reclassified from | Gain (Loss) Reclassified from | |||||||||||||||||||||||
Accumulated OCI into Income | Accumulated OCI into Income | ||||||||||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||||||||||
Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net sales | $ | (7,657 | ) | $ | 6,195 | $ | (7,539 | ) | $ | 7,418 | |||||||||||||||
Cost of goods sold | (3,496 | ) | 3,574 | (13,199 | ) | 11,115 | |||||||||||||||||||
Other income (expense), net | (730 | ) | (2,218 | ) | (1,945 | ) | 83 | ||||||||||||||||||
Interest expense | (1,028 | ) | (980 | ) | (3,051 | ) | (2,909 | ) | |||||||||||||||||
Total | $ | (12,911 | ) | $ | 6,571 | $ | (25,734 | ) | $ | 15,707 | |||||||||||||||
Derivative Contracts Dedesignated as Hedges | |||||||||||||||||||||||||
Cash flow hedges of some forecasted sales to third parties have historically been dedesignated as hedges when the sales were recognized. At that time, hedge accounting was discontinued and the amount of unrealized hedging gain or loss was recognized in net sales. These derivatives remained outstanding as an economic hedge of foreign currency exposures associated with the ultimate collection of the related accounts receivable, during which time changes in the fair value of the derivative contracts were recognized directly in earnings. As discussed below in Derivative Contracts Not Designated as Hedges, VF now utilizes separate derivative contracts to manage foreign currency risk related to the balance sheet exposures. Accordingly, 2013 was the last year during which dedesignations were recognized related to these cash flow hedges. | |||||||||||||||||||||||||
For the three and nine month periods ended September 2013, VF recorded net gains of $0.2 million and $1.5 million, respectively, in other income (expense), net, for derivatives dedesignated as hedging instruments. | |||||||||||||||||||||||||
Derivative Contracts Not Designated as Hedges | |||||||||||||||||||||||||
VF uses derivative contracts to manage foreign currency exchange risk on intercompany loans as well as intercompany and third party accounts receivable and payable. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities. Following is a summary of these derivatives included in VF’s Consolidated Statements of Income: | |||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) on Derivatives | Gain (Loss) on Derivatives | |||||||||||||||||||||||
on Derivatives | Recognized in Income | Recognized in Income | |||||||||||||||||||||||
Recognized in Income | Three Months Ended September | Nine Months Ended September | |||||||||||||||||||||||
In thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||||
Foreign currency exchange | Other income (expense), net | $ | 35 | $ | (6,402 | ) | $ | (4,835 | ) | $ | (2,404 | ) | |||||||||||||
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 2014 and September 2013. | |||||||||||||||||||||||||
At September 2014, accumulated OCI included $8.5 million of pretax net deferred gains for foreign exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. | |||||||||||||||||||||||||
VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033, respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in accumulated OCI. The remaining pretax net deferred loss in accumulated OCI was $32.5 million at September 2014, which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. Of the $32.5 million, approximately $4.2 million is expected to be reclassified to earnings during the next 12 months. |
Recently_Issued_and_Adopted_Ac
Recently Issued and Adopted Accounting Standards | 9 Months Ended |
Sep. 27, 2014 | |
Recently Issued and Adopted Accounting Standards | ' |
Note O – Recently Issued and Adopted Accounting Standards | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an update to their accounting guidance which requires unrecognized tax benefits to be netted with net operating loss or tax credit carryforwards in the balance sheet if specific criteria are met. This guidance became effective in the first quarter of 2014, but did not have an impact on VF’s consolidated financial statements. | |
In April 2014, the FASB changed the definition and disclosure requirements for discontinued operations. This guidance will be effective in the first quarter of 2015, but will not have an impact on VF’s consolidated financial statements unless the Company disposes of a business that meets the updated definition of discontinued operations. | |
In May 2014, the FASB issued a new accounting standard on revenue recognition which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The new model provides a 5-step analysis in determining the measurement of revenue and the timing of when it is recognized. New disclosures about revenues and cash flows arising from contracts with customers are also required. This guidance will be effective in the first quarter of 2017, and the Company is currently evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. | |
In June 2014, the FASB issued an update to their accounting guidance related to stock-based compensation. The guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. This guidance will be effective in the first quarter of 2016, but is not expected to have an impact on VF’s consolidated financial statements. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 27, 2014 | |
Subsequent Events | ' |
Note P – Subsequent Events | |
On October 16, 2014, VF’s Board of Directors declared a quarterly cash dividend of $0.32 per share, payable on December 19, 2014 to stockholders of record on December 9, 2014. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Inventories | ' | ||||||||||||
September | December | September | |||||||||||
In thousands | 2014 | 2013 | 2013 | ||||||||||
Finished products | $ | 1,570,512 | $ | 1,159,555 | $ | 1,496,419 | |||||||
Work in process | 101,037 | 94,586 | 99,367 | ||||||||||
Raw materials | 150,613 | 144,921 | 156,498 | ||||||||||
Total inventories | $ | 1,822,162 | $ | 1,399,062 | $ | 1,752,284 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
In thousands | September | December | September | ||||||||||
2014 | 2013 | 2013 | |||||||||||
Land and improvements | $ | 57,626 | $ | 56,828 | $ | 52,879 | |||||||
Buildings and improvements | 996,208 | 953,931 | 948,628 | ||||||||||
Machinery and equipment | 1,227,551 | 1,159,221 | 1,130,388 | ||||||||||
Property, plant and equipment, at cost | 2,281,385 | 2,169,980 | 2,131,895 | ||||||||||
Less accumulated depreciation and amortization | 1,341,192 | 1,237,188 | 1,227,086 | ||||||||||
Property, plant and equipment, net | $ | 940,193 | $ | 932,792 | $ | 904,809 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||
Weighted | Sep-14 | December 2013 | |||||||||||||||||||
Average | |||||||||||||||||||||
Amortization | |||||||||||||||||||||
Dollars in thousands | Period | Amortization Methods | Cost | Accumulated | Net | Net | |||||||||||||||
Amortization | Carrying | Carrying | |||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||
Customer relationships | 20 years | Accelerated | $ | 607,488 | $ | 229,554 | $ | 377,934 | $ | 417,439 | |||||||||||
License agreements | 24 years | Accelerated and straight-line | 183,496 | 84,262 | 99,234 | 107,789 | |||||||||||||||
Other | 9 years | Straight-line | 13,111 | 8,165 | 4,946 | 6,524 | |||||||||||||||
Amortizable intangible assets, net | $ | 482,114 | 531,752 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||
Trademarks and trade names | 2,303,537 | 2,428,449 | |||||||||||||||||||
Intangible assets, net | $ | 2,785,651 | $ | 2,960,201 | |||||||||||||||||
Estimated Amortization Expense | ' | ||||||||||||||||||||
Amortization expense for the third quarter and first nine months of 2014 was $11.2 million and $33.7 million, respectively. Based on existing levels of amortizable intangible assets noted above, estimated amortization expense for the next five years is: | |||||||||||||||||||||
In millions | Estimated | ||||||||||||||||||||
Year | Amortization Expense | ||||||||||||||||||||
2014 | $ | 44.6 | |||||||||||||||||||
2015 | 41.8 | ||||||||||||||||||||
2016 | 40.5 | ||||||||||||||||||||
2017 | 39.3 | ||||||||||||||||||||
2018 | 38.7 |
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||
Changes in Goodwill | ' | ||||||||||||||||||||||||
Changes in goodwill are summarized by business segment as follows: | |||||||||||||||||||||||||
In thousands | Outdoor & | Jeanswear | Imagewear | Sportswear | Contemporary | Total | |||||||||||||||||||
Action Sports | Brands | ||||||||||||||||||||||||
Balance, December 2013 | $ | 1,434,898 | $ | 228,430 | $ | 58,747 | $ | 157,314 | $ | 142,361 | $ | 2,021,750 | |||||||||||||
Currency translation | (26,839 | ) | (5,040 | ) | — | — | — | (31,879 | ) | ||||||||||||||||
Balance, September 2014 | $ | 1,408,059 | $ | 223,390 | $ | 58,747 | $ | 157,314 | $ | 142,361 | $ | 1,989,871 | |||||||||||||
Pension_Plans_Tables
Pension Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost – benefits earned during the period | $ | 6,046 | $ | 6,346 | $ | 18,228 | $ | 19,566 | |||||||||
Interest cost on projected benefit obligations | 20,387 | 17,988 | 61,180 | 54,017 | |||||||||||||
Expected return on plan assets | (22,682 | ) | (23,635 | ) | (68,060 | ) | (70,945 | ) | |||||||||
Amortization of deferred amounts: | |||||||||||||||||
Net deferred actuarial losses | 9,385 | 21,333 | 28,158 | 64,021 | |||||||||||||
Deferred prior service costs | 1,361 | 317 | 4,085 | 974 | |||||||||||||
Net periodic pension cost | $ | 14,497 | $ | 22,349 | $ | 43,591 | $ | 67,633 | |||||||||
Capital_and_Accumulated_Other_1
Capital and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Shares Held for Deferred Compensation Plans | ' | ||||||||||||||||||||
Balances related to shares held for deferred compensation plans are as follows: | |||||||||||||||||||||
In millions, except share amounts | September | December | September | ||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||
Shares held for deferred compensation plans | 640,404 | 704,104 | 705,664 | ||||||||||||||||||
Cost of shares held for deferred compensation plans | $ | 7.6 | $ | 8.4 | $ | 8.2 | |||||||||||||||
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity | ' | ||||||||||||||||||||
The deferred components of OCI are reported, net of related income taxes, in accumulated other comprehensive income (loss) in stockholders’ equity, as follows: | |||||||||||||||||||||
In thousands | September | December | September | ||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||
Foreign currency translation | $ | (161,259 | ) | $ | 106,647 | $ | 55,746 | ||||||||||||||
Defined benefit pension plans | (257,962 | ) | (277,451 | ) | (381,608 | ) | |||||||||||||||
Derivative financial instruments | 324 | (41,754 | ) | (40,199 | ) | ||||||||||||||||
Marketable securities | 662 | 838 | 91 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (418,235 | ) | $ | (211,720 | ) | $ | (365,970 | ) | ||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss), Net of Related Taxes | ' | ||||||||||||||||||||
The changes in accumulated other comprehensive income (loss), net of related taxes, are as follows: | |||||||||||||||||||||
Three Months Ended September 2014 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, June 2014 | $ | 70,525 | $ | (264,187 | ) | $ | (38,684 | ) | $ | 134 | $ | (232,212 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (231,784 | ) | — | 31,171 | 528 | (200,085 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 6,225 | 7,837 | — | 14,062 | ||||||||||||||||
Net other comprehensive income (loss) | (231,784 | ) | 6,225 | 39,008 | 528 | (186,023 | ) | ||||||||||||||
Balance, September 2014 | $ | (161,259 | ) | $ | (257,962 | ) | $ | 324 | $ | 662 | $ | (418,235 | ) | ||||||||
Three Months Ended September 2013 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, June 2013 | $ | (42,716 | ) | $ | (394,785 | ) | $ | (3,170 | ) | $ | (200 | ) | $ | (440,871 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 98,462 | — | (33,041 | ) | 291 | 65,712 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 13,177 | (3,988 | ) | — | 9,189 | |||||||||||||||
Net other comprehensive income (loss) | 98,462 | 13,177 | (37,029 | ) | 291 | 74,901 | |||||||||||||||
Balance, September 2013 | $ | 55,746 | $ | (381,608 | ) | $ | (40,199 | ) | $ | 91 | $ | (365,970 | ) | ||||||||
Nine Months Ended September 2014 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, December 2013 | $ | 106,647 | $ | (277,451 | ) | $ | (41,754 | ) | $ | 838 | $ | (211,720 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (267,906 | ) | — | 26,457 | (176 | ) | (241,625 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 19,489 | 15,621 | — | 35,110 | ||||||||||||||||
Net other comprehensive income (loss) | (267,906 | ) | 19,489 | 42,078 | (176 | ) | (206,515 | ) | |||||||||||||
Balance, September 2014 | $ | (161,259 | ) | $ | (257,962 | ) | $ | 324 | $ | 662 | $ | (418,235 | ) | ||||||||
Nine Months Ended September 2013 | |||||||||||||||||||||
In thousands | Foreign | Defined | Derivative | Marketable | Total | ||||||||||||||||
Currency | Benefit | Financial | Securities | ||||||||||||||||||
Translation | Pension Plans | Instruments | |||||||||||||||||||
Balance, December 2012 | $ | (4,068 | ) | $ | (420,538 | ) | $ | (29,430 | ) | $ | 141 | $ | (453,895 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 59,814 | — | (1,235 | ) | (50 | ) | 58,529 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 38,930 | (9,534 | ) | — | 29,396 | |||||||||||||||
Net other comprehensive income (loss) | 59,814 | 38,930 | (10,769 | ) | (50 | ) | 87,925 | ||||||||||||||
Balance, September 2013 | $ | 55,746 | $ | (381,608 | ) | $ | (40,199 | ) | $ | 91 | $ | (365,970 | ) | ||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) are as follows: | |||||||||||||||||||||
In thousands | Affected Line Item in the | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Details About Accumulated Other | Consolidated Statements | September | September | ||||||||||||||||||
Comprehensive Income (Loss) Components | of Income | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Amortization of defined benefit pension plans: | |||||||||||||||||||||
Net deferred actuarial losses | (a) | $ | (9,385 | ) | $ | (21,333 | ) | $ | (28,158 | ) | $ | (64,021 | ) | ||||||||
Deferred prior service costs | (a) | (1,361 | ) | (317 | ) | (4,085 | ) | (974 | ) | ||||||||||||
Total before tax | (10,746 | ) | (21,650 | ) | (32,243 | ) | (64,995 | ) | |||||||||||||
Tax benefit (expense) | 4,521 | 8,473 | 12,754 | 26,065 | |||||||||||||||||
Net of tax | $ | (6,225 | ) | $ | (13,177 | ) | $ | (19,489 | ) | $ | (38,930 | ) | |||||||||
Gains (losses) on derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Net sales | $ | (7,657 | ) | $ | 6,195 | $ | (7,539 | ) | $ | 7,418 | ||||||||||
Foreign exchange contracts | Cost of goods sold | (3,496 | ) | 3,574 | (13,199 | ) | 11,115 | ||||||||||||||
Foreign exchange contracts | Other income (expense), net | (730 | ) | (2,218 | ) | (1,945 | ) | 83 | |||||||||||||
Interest rate contracts | Interest expense | (1,028 | ) | (980 | ) | (3,051 | ) | (2,909 | ) | ||||||||||||
Total before tax | (12,911 | ) | 6,571 | (25,734 | ) | 15,707 | |||||||||||||||
Tax benefit (expense) | 5,074 | (2,583 | ) | 10,113 | (6,173 | ) | |||||||||||||||
Net of tax | $ | (7,837 | ) | $ | 3,988 | $ | (15,621 | ) | $ | 9,534 | |||||||||||
Total reclassifications for the period | Net of tax | $ | (14,062 | ) | $ | (9,189 | ) | $ | (35,110 | ) | $ | (29,396 | ) | ||||||||
(a) | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||
Sep. 27, 2014 | |||
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: | |||
Nine Months Ended | |||
Sep-14 | |||
Expected volatility | 23% to 29% | ||
Weighted average expected volatility | 26% | ||
Expected term (in years) | 5.5 to 7.3 | ||
Dividend yield | 2.10% | ||
Risk-free interest rate | 0.1% to 2.7% | ||
Weighted average fair value at date of grant | $12.01 |
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Coalition revenues: | |||||||||||||||||
Outdoor & Action Sports | $ | 2,180,879 | $ | 1,971,963 | $ | 5,034,670 | $ | 4,459,845 | |||||||||
Jeanswear | 750,446 | 747,241 | 2,046,614 | 2,076,919 | |||||||||||||
Imagewear | 292,531 | 284,480 | 805,733 | 779,064 | |||||||||||||
Sportswear | 163,442 | 155,208 | 435,049 | 416,919 | |||||||||||||
Contemporary Brands | 99,382 | 104,998 | 293,737 | 307,339 | |||||||||||||
Other | 33,767 | 33,379 | 87,498 | 89,463 | |||||||||||||
Total coalition revenues | $ | 3,520,447 | $ | 3,297,269 | $ | 8,703,301 | $ | 8,129,549 | |||||||||
Coalition profit: | |||||||||||||||||
Outdoor & Action Sports | $ | 475,444 | $ | 421,177 | $ | 880,618 | $ | 748,137 | |||||||||
Jeanswear | 156,998 | 158,334 | 386,401 | 410,551 | |||||||||||||
Imagewear | 42,855 | 40,698 | 115,944 | 107,343 | |||||||||||||
Sportswear | 22,979 | 23,987 | 45,801 | 52,481 | |||||||||||||
Contemporary Brands | 4,869 | 9,456 | 21,611 | 29,910 | |||||||||||||
Other | 1,193 | (47 | ) | (1,997 | ) | (2,195 | ) | ||||||||||
Total coalition profit | 704,338 | 653,605 | 1,448,378 | 1,346,227 | |||||||||||||
Corporate and other expenses | (72,865 | ) | (75,152 | ) | (196,507 | ) | (209,185 | ) | |||||||||
Interest expense, net | (20,703 | ) | (19,987 | ) | (59,828 | ) | (61,224 | ) | |||||||||
Income before income taxes | $ | 610,770 | $ | 558,466 | $ | 1,192,043 | $ | 1,075,818 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Schedule of Earnings Per Share Basic and Diluted | ' | ||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||
In thousands, except per share amounts | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Earnings per share – basic: | |||||||||||||||||
Net income | $ | 470,529 | $ | 433,761 | $ | 925,404 | $ | 842,452 | |||||||||
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 | |||||||||||||
Earnings per common share | $ | 1.09 | $ | 0.99 | $ | 2.14 | $ | 1.92 | |||||||||
Earnings per share – diluted: | |||||||||||||||||
Net income | $ | 470,529 | $ | 433,761 | $ | 925,404 | $ | 842,452 | |||||||||
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 | |||||||||||||
Incremental shares from stock options and other dilutive securities | 6,949 | 7,440 | 7,372 | 7,964 | |||||||||||||
Adjusted weighted average common shares outstanding | 437,587 | 445,620 | 440,328 | 446,480 | |||||||||||||
Earnings per common share | $ | 1.08 | $ | 0.97 | $ | 2.1 | $ | 1.89 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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 Measurement Using (a) | ||||||||||||||||
In thousands | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Sep-14 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 172,191 | $ | 172,191 | $ | — | $ | — | |||||||||
Time deposits | 112,886 | 112,886 | — | — | |||||||||||||
Derivative financial instruments | 57,213 | — | 57,213 | — | |||||||||||||
Investment securities | 229,965 | 209,227 | 20,738 | — | |||||||||||||
Other marketable securities | 5,520 | 5,520 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 31,138 | — | 31,138 | — | |||||||||||||
Deferred compensation | 287,353 | — | 287,353 | — | |||||||||||||
Dec-13 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 352,942 | $ | 352,942 | $ | — | $ | — | |||||||||
Time deposits | 121,097 | 121,097 | — | — | |||||||||||||
Derivative financial instruments | 16,088 | — | 16,088 | — | |||||||||||||
Investment securities | 214,035 | 193,540 | 20,495 | — | |||||||||||||
Other marketable securities | 5,809 | 5,809 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 46,791 | — | 46,791 | — | |||||||||||||
Deferred compensation | 274,659 | — | 274,659 | — | |||||||||||||
(a) | There were no transfers among the levels within the fair value hierarchy during the first nine months of 2014 or the year ended December 2013. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||
Outstanding Derivatives on Individual Contract Basis at Gross Amounts | ' | ||||||||||||||||||||||||
The following table presents outstanding derivatives on a gross basis by individual contract: | |||||||||||||||||||||||||
Fair Value of Derivatives with | Fair Value of Derivatives with | ||||||||||||||||||||||||
Unrealized Gains | Unrealized Losses | ||||||||||||||||||||||||
In thousands | September | December | September | September | December | September | |||||||||||||||||||
2014 | 2013 | 2013 | 2014 | 2013 | 2013 | ||||||||||||||||||||
Foreign currency exchange contracts designated as hedging instruments | $ | 57,009 | $ | 15,964 | $ | 12,685 | $ | (29,419 | ) | $ | (46,627 | ) | $ | (37,376 | ) | ||||||||||
Foreign currency exchange contracts not designated as hedging instruments | 204 | 124 | 47 | (1,719 | ) | (164 | ) | (315 | ) | ||||||||||||||||
Total derivatives | $ | 57,213 | $ | 16,088 | $ | 12,732 | $ | (31,138 | ) | $ | (46,791 | ) | $ | (37,691 | ) | ||||||||||
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. However, if VF were to offset and record the asset and liability balances of all 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 as of September 2014, December 2013 and September 2013 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: | |||||||||||||||||||||||||
Sep-14 | Dec-13 | Sep-13 | |||||||||||||||||||||||
In thousands | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||
Asset | Liability | Asset | Liability | Asset | Liability | ||||||||||||||||||||
Gross amounts presented in the Consolidated Balance Sheets | $ | 57,213 | $ | (31,138 | ) | $ | 16,088 | $ | (46,791 | ) | $ | 12,732 | $ | (37,691 | ) | ||||||||||
Gross amounts not offset in the Consolidated Balance Sheets | (22,863 | ) | 22,863 | (11,641 | ) | 11,641 | (10,497 | ) | 10,497 | ||||||||||||||||
Net amounts | $ | 34,350 | $ | (8,275 | ) | $ | 4,447 | $ | (35,150 | ) | $ | 2,235 | $ | (27,194 | ) | ||||||||||
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. However, if VF were to offset and record the asset and liability balances of all 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 as of September 2014, December 2013 and September 2013 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: | |||||||||||||||||||||||||
Sep-14 | Dec-13 | Sep-13 | |||||||||||||||||||||||
In thousands | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||
Asset | Liability | Asset | Liability | Asset | Liability | ||||||||||||||||||||
Gross amounts presented in the Consolidated Balance Sheets | $ | 57,213 | $ | (31,138 | ) | $ | 16,088 | $ | (46,791 | ) | $ | 12,732 | $ | (37,691 | ) | ||||||||||
Gross amounts not offset in the Consolidated Balance Sheets | (22,863 | ) | 22,863 | (11,641 | ) | 11,641 | (10,497 | ) | 10,497 | ||||||||||||||||
Net amounts | $ | 34,350 | $ | (8,275 | ) | $ | 4,447 | $ | (35,150 | ) | $ | 2,235 | $ | (27,194 | ) | ||||||||||
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | ' | ||||||||||||||||||||||||
Derivatives are classified as current or noncurrent based on their maturity dates, as follows: | |||||||||||||||||||||||||
In thousands | September | December | September | ||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||
Other current assets | $ | 41,875 | $ | 12,699 | $ | 12,257 | |||||||||||||||||||
Accrued liabilities (current) | (25,177 | ) | (36,622 | ) | (28,743 | ) | |||||||||||||||||||
Other assets (noncurrent) | 15,338 | 3,389 | 475 | ||||||||||||||||||||||
Other liabilities (noncurrent) | (5,961 | ) | (10,169 | ) | (8,948 | ) | |||||||||||||||||||
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 | Gain (Loss) on Derivatives | |||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | ||||||||||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||||||||||
Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign currency exchange | $ | 51,351 | $ | (54,432 | ) | $ | 43,586 | $ | (2,032 | ) | |||||||||||||||
In thousands | Gain (Loss) Reclassified from | Gain (Loss) Reclassified from | |||||||||||||||||||||||
Accumulated OCI into Income | Accumulated OCI into Income | ||||||||||||||||||||||||
Three Months Ended September | Nine Months Ended September | ||||||||||||||||||||||||
Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net sales | $ | (7,657 | ) | $ | 6,195 | $ | (7,539 | ) | $ | 7,418 | |||||||||||||||
Cost of goods sold | (3,496 | ) | 3,574 | (13,199 | ) | 11,115 | |||||||||||||||||||
Other income (expense), net | (730 | ) | (2,218 | ) | (1,945 | ) | 83 | ||||||||||||||||||
Interest expense | (1,028 | ) | (980 | ) | (3,051 | ) | (2,909 | ) | |||||||||||||||||
Total | $ | (12,911 | ) | $ | 6,571 | $ | (25,734 | ) | $ | 15,707 | |||||||||||||||
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: | |||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) on Derivatives | Gain (Loss) on Derivatives | |||||||||||||||||||||||
on Derivatives | Recognized in Income | Recognized in Income | |||||||||||||||||||||||
Recognized in Income | Three Months Ended September | Nine Months Ended September | |||||||||||||||||||||||
In thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||||
Foreign currency exchange | Other income (expense), net | $ | 35 | $ | (6,402 | ) | $ | (4,835 | ) | $ | (2,404 | ) |
Sale_of_Accounts_Receivable_Ad
Sale of Accounts Receivable - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum amount of accounts receivable sold at any point in time | $237.50 | ' | ' |
Decrease in receivables related to balances sold | 172 | 136.4 | 155 |
Sale of accounts receivable | 916.3 | ' | ' |
Funding fee | $1.20 | ' | ' |
Inventories_Detail
Inventories (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | ' | ' | ' |
Finished products | $1,570,512 | $1,159,555 | $1,496,419 |
Work in process | 101,037 | 94,586 | 99,367 |
Raw materials | 150,613 | 144,921 | 156,498 |
Total inventories | $1,822,162 | $1,399,062 | $1,752,284 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, at cost | $2,281,385 | $2,169,980 | $2,131,895 |
Less accumulated depreciation and amortization | 1,341,192 | 1,237,188 | 1,227,086 |
Property, plant and equipment, net | 940,193 | 932,792 | 904,809 |
Land and Improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, at cost | 57,626 | 56,828 | 52,879 |
Buildings and Improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, at cost | 996,208 | 953,931 | 948,628 |
Machinery and Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, at cost | $1,227,551 | $1,159,221 | $1,130,388 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | Customer Relationships | Customer Relationships | Licensing Agreements | Licensing Agreements | Other Intangible Assets | Other Intangible Assets | |||
Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, Amortization Method | ' | ' | ' | 'Accelerated | ' | 'Accelerated and straight-line | ' | 'Straight-line | ' |
Intangible assets | $2,785,651 | $2,960,201 | $2,939,371 | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, Weighted Average Amortization Period (in years) | ' | ' | ' | '20 years | ' | '24 years | ' | '9 years | ' |
Amortizable intangible assets, Cost | ' | ' | ' | 607,488 | ' | 183,496 | ' | 13,111 | ' |
Amortizable intangible assets, Accumulated Amortization | ' | ' | ' | 229,554 | ' | 84,262 | ' | 8,165 | ' |
Amortizable intangible assets, Net Carrying Amount | 482,114 | 531,752 | ' | 377,934 | 417,439 | 99,234 | 107,789 | 4,946 | 6,524 |
Indefinite-lived intangible assets, trademarks and trade names | $2,303,537 | $2,428,449 | ' | ' | ' | ' | ' | ' | ' |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 |
Schedule Of Estimated Future Amortization Expense [Line Items] | ' | ' | ' |
Amortization of intangible assets | $11,200 | $33,680 | $34,450 |
Estimated_Amortization_Expense
Estimated Amortization Expense (Detail) (USD $) | Sep. 27, 2014 |
In Millions, unless otherwise specified | |
Schedule Of Estimated Future Amortization Expense [Line Items] | ' |
Estimated amortization expense, 2014 | $44.60 |
Estimated amortization expense, 2015 | 41.8 |
Estimated amortization expense, 2016 | 40.5 |
Estimated amortization expense, 2017 | 39.3 |
Estimated amortization expense, 2018 | $38.70 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 9 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 |
Outdoor & Action Sports | Jeanswear | Imagewear | Imagewear | Sportswear | Sportswear | Contemporary Brands | Contemporary Brands | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, beginning balance | $2,021,750 | $2,014,717 | $1,434,898 | $228,430 | $58,747 | $58,747 | $157,314 | $157,314 | $142,361 | $142,361 |
Currency translation | -31,879 | ' | -26,839 | -5,040 | ' | ' | ' | ' | ' | ' |
Goodwill, ending balance | $1,989,871 | $2,014,717 | $1,408,059 | $223,390 | $58,747 | $58,747 | $157,314 | $157,314 | $142,361 | $142,361 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 9 Months Ended | ||||||
Sep. 27, 2014 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | |
Outdoor & Action Sports | Outdoor & Action Sports | Sportswear | Sportswear | Contemporary Brands | Contemporary Brands | ||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cumulative impairment charges | ' | $43,400,000 | $43,400,000 | $58,500,000 | $58,500,000 | $195,200,000 | $195,200,000 |
Goodwill impairment charges | $0 | ' | ' | ' | ' | ' | ' |
Components_of_Pension_Cost_Det
Components of Pension Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost - benefits earned during the period | $6,046 | $6,346 | $18,228 | $19,566 |
Interest cost on projected benefit obligations | 20,387 | 17,988 | 61,180 | 54,017 |
Expected return on plan assets | -22,682 | -23,635 | -68,060 | -70,945 |
Amortization of deferred amounts, Net deferred actuarial losses | 9,385 | 21,333 | 28,158 | 64,021 |
Amortization of deferred amounts, Deferred prior service costs | 1,361 | 317 | 4,085 | 974 |
Net periodic pension cost | $14,497 | $22,349 | $43,591 | $67,633 |
Pension_Plans_Additional_Infor
Pension Plans - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined benefit pension plan contributed | $13.80 |
Defined benefit pension plan additional contributions during the remainder of the year | $6.70 |
Capital_and_Accumulated_Other_2
Capital and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
Class of Stock [Line Items] | ' | ' | ' |
Common Stock, shares, purchased | 12,033,300 | ' | ' |
Common Stock, value, purchased | $725.50 | ' | ' |
Treasury shares restored as unissued status | 12,100,000 | ' | ' |
Treasury shares | 0 | 0 | 17,000,000 |
Common Stock, stated value | $0.25 | $0.25 | $0.25 |
Common Stock held in trust for deferred compensation plans, shares | 33,300 | ' | ' |
Common Stock held in trust for deferred compensation plans | $2 | ' | ' |
Shares_Held_for_Deferred_Compe
Shares Held for Deferred Compensation Plans (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, except Share data, unless otherwise specified | |||
Schedule of Deferred Compensation Plans [Line Items] | ' | ' | ' |
Shares held for deferred compensation plans | 640,404 | 704,104 | 705,664 |
Cost of shares held for deferred compensation plans | $7.60 | $8.40 | $8.20 |
Deferred_Components_of_OCI_Rep
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' |
Foreign currency translation | ($161,259) | ' | $106,647 | $55,746 | ' | ' |
Defined benefit pension plans | -257,962 | ' | -277,451 | -381,608 | ' | ' |
Derivative financial instruments | 324 | ' | -41,754 | -40,199 | ' | ' |
Marketable securities | 662 | ' | 838 | 91 | ' | ' |
Accumulated other comprehensive income (loss) | ($418,235) | ($232,212) | ($211,720) | ($365,970) | ($440,871) | ($453,895) |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss), Net of Related Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | ($232,212) | ($440,871) | ($211,720) | ($453,895) |
Other comprehensive income (loss) before reclassifications | -200,085 | 65,712 | -241,625 | 58,529 |
Amounts reclassified from accumulated other comprehensive income (loss) | 14,062 | 9,189 | 35,110 | 29,396 |
Net other comprehensive income (loss) | -186,023 | 74,901 | -206,515 | 87,925 |
Ending balance | -418,235 | -365,970 | -418,235 | -365,970 |
Accumulated Translation Adjustment | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | 70,525 | -42,716 | 106,647 | -4,068 |
Other comprehensive income (loss) before reclassifications | -231,784 | 98,462 | -267,906 | 59,814 |
Net other comprehensive income (loss) | -231,784 | 98,462 | -267,906 | 59,814 |
Ending balance | -161,259 | 55,746 | -161,259 | 55,746 |
Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -264,187 | -394,785 | -277,451 | -420,538 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,225 | 13,177 | 19,489 | 38,930 |
Net other comprehensive income (loss) | 6,225 | 13,177 | 19,489 | 38,930 |
Ending balance | -257,962 | -381,608 | -257,962 | -381,608 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -38,684 | -3,170 | -41,754 | -29,430 |
Other comprehensive income (loss) before reclassifications | 31,171 | -33,041 | 26,457 | -1,235 |
Amounts reclassified from accumulated other comprehensive income (loss) | 7,837 | -3,988 | 15,621 | -9,534 |
Net other comprehensive income (loss) | 39,008 | -37,029 | 42,078 | -10,769 |
Ending balance | 324 | -40,199 | 324 | -40,199 |
Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | 134 | -200 | 838 | 141 |
Other comprehensive income (loss) before reclassifications | 528 | 291 | -176 | -50 |
Net other comprehensive income (loss) | 528 | 291 | -176 | -50 |
Ending balance | $662 | $91 | $662 | $91 |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net deferred actuarial losses | ($9,385) | [1] | ($21,333) | [1] | ($28,158) | [1] | ($64,021) | [1] |
Deferred prior service costs | -1,361 | [1] | -317 | [1] | -4,085 | [1] | -974 | [1] |
Amortization of defined benefit pension plans actuarial loss and service cost before tax | -10,746 | -21,650 | -32,243 | -64,995 | ||||
Amortization of defined benefit pension plans actuarial loss and service cost tax | 4,521 | 8,473 | 12,754 | 26,065 | ||||
Amortization of defined benefit pension plans actuarial loss and service cost after tax | -6,225 | -13,177 | -19,489 | -38,930 | ||||
Gains (losses) on derivative financial instruments | -12,911 | 6,571 | -25,734 | 15,707 | ||||
Gains (losses) on derivative financial instruments tax | 5,074 | -2,583 | 10,113 | -6,173 | ||||
Gains (losses) on derivative financial instruments after tax | -7,837 | 3,988 | -15,621 | 9,534 | ||||
Total reclassifications for the period | -14,062 | -9,189 | -35,110 | -29,396 | ||||
Foreign Currency Exchange Contract | Net sales | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gains (losses) on derivative financial instruments | -7,657 | 6,195 | -7,539 | 7,418 | ||||
Foreign Currency Exchange Contract | Cost of goods sold | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gains (losses) on derivative financial instruments | -3,496 | 3,574 | -13,199 | 11,115 | ||||
Foreign Currency Exchange Contract | Other income (expense), net | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gains (losses) on derivative financial instruments | -730 | -2,218 | -1,945 | 83 | ||||
Interest Rate Contract | Interest expense | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gains (losses) on derivative financial instruments | ($1,028) | ($980) | ($3,051) | ($2,909) | ||||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options granted in period | 2,825,207 |
Weighted average exercise price of options granted | $56.86 |
Share based compensation vesting period | '3 years |
Weighted average fair market value of Common Stock at the date the units were granted | $56.86 |
Performance-Based Restricted Stock Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock units granted in period | 586,769 |
Award expiration period from grant date | '3 years |
Baseline profitability goal period | '3 years |
Percentage of targets award adjusted to actual number of shares earned | 25.00% |
Performance-Based Restricted Stock Units | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares of common stock to be issued for each restricted stock unit granted | 0 |
Performance-Based Restricted Stock Units | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares of common stock to be issued for each restricted stock unit granted | 2 |
TSR Adjustment Performance-Based Restricted Stock Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average fair market value of Common Stock at the date the units were granted | $1.41 |
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 | 17,000 |
Number of shares of common stock to be issued for each restricted stock unit granted | 1 |
Weighted average fair market value of Common Stock at the date the units were granted | $58.89 |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share based compensation vesting period | '4 years |
Restricted stock units granted in period | 155,100 |
Weighted average fair market value of Common Stock at the date the units were granted | $60.21 |
Board of Directors | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock options granted period of time options become exercisable | '1 year |
Board of Directors | Nonperformance-Based Restricted Stock Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock units granted in period | 12,595 |
Award expiration period from grant date | '1 year |
Weighted average fair market value of Common Stock at the date the units were granted | $56.79 |
Schedule_of_Assumption_Used_an
Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Detail) (USD $) | 9 Months Ended |
Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility, minimum | 23.00% |
Expected volatility, maximum | 29.00% |
Weighted average expected volatility | 26.00% |
Dividend yield | 2.10% |
Risk-free interest rate, minimum | 0.10% |
Risk-free interest rate, maximum | 2.70% |
Weighted average fair value at date of grant | $12.01 |
Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected term | '5 years 6 months |
Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected term | '7 years 3 months 18 days |
Income_Taxes_Additional_inform
Income Taxes - Additional information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Income Taxes [Line Items] | ' | ' |
Effective income tax rate | 22.40% | 21.70% |
Net discrete tax Benefits | $17.70 | $19 |
Refund claims related to prior years | 4.1 | ' |
Realization of unrecognized net tax benefits | 10.1 | 6.9 |
Tax reduction due to discrete items | 1.50% | 1.80% |
Tax benefit related to retroactive extension of tax credits | ' | 8.3 |
Change in effective income tax rate without discrete items | 0.40% | ' |
Decrease in unrecognized tax benefits and associated interest | 1.9 | ' |
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 107.7 | ' |
Reduction in income tax expenses | 31.7 | ' |
Possible decrease in unrecognized income tax benefits and interest | $26.50 | ' |
Financial_Information_for_Repo
Financial Information for Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | $3,520,447 | $3,297,269 | $8,703,301 | $8,129,549 |
Coalition profit | 704,338 | 653,605 | 1,448,378 | 1,346,227 |
Corporate and other expenses | -72,865 | -75,152 | -196,507 | -209,185 |
Interest expense, net | -20,703 | -19,987 | -59,828 | -61,224 |
Income before income taxes | 610,770 | 558,466 | 1,192,043 | 1,075,818 |
Outdoor & Action Sports | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 2,180,879 | 1,971,963 | 5,034,670 | 4,459,845 |
Coalition profit | 475,444 | 421,177 | 880,618 | 748,137 |
Jeanswear | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 750,446 | 747,241 | 2,046,614 | 2,076,919 |
Coalition profit | 156,998 | 158,334 | 386,401 | 410,551 |
Imagewear | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 292,531 | 284,480 | 805,733 | 779,064 |
Coalition profit | 42,855 | 40,698 | 115,944 | 107,343 |
Sportswear | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 163,442 | 155,208 | 435,049 | 416,919 |
Coalition profit | 22,979 | 23,987 | 45,801 | 52,481 |
Contemporary Brands | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 99,382 | 104,998 | 293,737 | 307,339 |
Coalition profit | 4,869 | 9,456 | 21,611 | 29,910 |
Other Net | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Coalition revenues | 33,767 | 33,379 | 87,498 | 89,463 |
Coalition profit | $1,193 | ($47) | ($1,997) | ($2,195) |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Earnings per share - basic: | ' | ' | ' | ' |
Net income | $470,529 | $433,761 | $925,404 | $842,452 |
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 |
Earnings per common share | $1.09 | $0.99 | $2.14 | $1.92 |
Earnings per share - diluted: | ' | ' | ' | ' |
Net income | $470,529 | $433,761 | $925,404 | $842,452 |
Weighted average common shares outstanding | 430,638 | 438,180 | 432,956 | 438,516 |
Incremental shares from stock options and other dilutive securities | 6,949 | 7,440 | 7,372 | 7,964 |
Adjusted weighted average common shares outstanding | 437,587 | 445,620 | 440,328 | 446,480 |
Earnings per common share | $1.08 | $0.97 | $2.10 | $1.89 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Stock Option | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Stock options excluded from computation of earnings per share | 0.1 | 0.1 | 1.8 | 1.2 |
Performance-Based | Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Stock options excluded from computation of earnings per share | 1.3 | 1.7 | 1.3 | 1.7 |
Classes_of_Financial_Assets_an
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | ||
In Thousands, unless otherwise specified | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Cash equivalents, Money market funds | $172,191 | $352,942 | ' | ||
Cash equivalents, time deposits | 112,886 | 121,097 | ' | ||
Derivative financial instruments | 57,213 | 16,088 | 12,732 | ||
Investment securities | 229,965 | 214,035 | ' | ||
Other marketable securities | 5,520 | 5,809 | ' | ||
Derivative financial instruments | 31,138 | 46,791 | 37,691 | ||
Deferred compensation | 287,353 | 274,659 | ' | ||
Quoted Prices In Active Markets For Identical Assets, Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Cash equivalents, Money market funds | 172,191 | [1] | 352,942 | [1] | ' |
Cash equivalents, time deposits | 112,886 | [1] | 121,097 | [1] | ' |
Investment securities | 209,227 | [1] | 193,540 | [1] | ' |
Other marketable securities | 5,520 | [1] | 5,809 | [1] | ' |
Significant Other Observable Inputs, Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Derivative financial instruments | 57,213 | [1] | 16,088 | [1] | ' |
Investment securities | 20,738 | [1] | 20,495 | [1] | ' |
Derivative financial instruments | 31,138 | [1] | 46,791 | [1] | ' |
Deferred compensation | $287,353 | [1] | $274,659 | [1] | ' |
[1] | There were no transfers among the levels within the fair value hierarchy during the first nine months of 2014 or the year ended December 2013. |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' | ' |
Long-term debt, carrying value | $1,428.70 | $1,432 |
Long-term debt, fair value | $1,656.90 | $1,568.40 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | |
Interest Rate Swap Derivative Contracts In 2011 | Interest Rate Swap Derivative Contracts In 2003 | Maximum | Maximum | Foreign Currency Exchange Contract | Foreign Currency Exchange Contract | Foreign Currency Exchange Contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency derivatives | ' | ' | ' | ' | ' | $1,800,000,000 | $1,900,000,000 | $2,100,000,000 |
Higher derivative maturity range by months | '24 months | ' | ' | ' | ' | ' | ' | ' |
Net impact of derivatives designated as hedging instruments in other income (expense), net | ' | ' | ' | 200,000 | 1,500,000 | ' | ' | ' |
Net pretax deferred losses for foreign exchange contracts that are expected to be reclassified to earnings during next 12 months | 8,500,000 | ' | ' | ' | ' | ' | ' | ' |
Remaining pretax deferred net loss in Accumulated OCI | 32,500,000 | ' | ' | ' | ' | ' | ' | ' |
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | $4,200,000 | ' | ' | ' | ' | ' | ' | ' |
Maturity date, notes | ' | '2021 | '2033 | ' | ' | ' | ' | ' |
Outstanding_Derivatives_on_Ind
Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Fair value of derivatives with unrealized gains | $57,213 | $16,088 | $12,732 |
Fair value of derivatives with unrealized losses | -31,138 | -46,791 | -37,691 |
Foreign exchange contracts designated as hedging instruments | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Fair value of derivatives with unrealized gains | 57,009 | 15,964 | 12,685 |
Fair value of derivatives with unrealized losses | -29,419 | -46,627 | -37,376 |
Foreign exchange contracts not designated as hedging | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Fair value of derivatives with unrealized gains | 204 | 124 | 47 |
Fair value of derivatives with unrealized losses | ($1,719) | ($164) | ($315) |
Fair_Value_of_Derivative_Asset
Fair Value of Derivative Assets and Liabilities in Balance Sheet (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Offsetting Assets [Line Items] | ' | ' | ' |
Gross amounts presented in the Consolidated Balance Sheets, Derivative Asset | $57,213 | $16,088 | $12,732 |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Asset | -22,863 | -11,641 | -10,497 |
Net amounts | 34,350 | 4,447 | 2,235 |
Gross amounts presented in the Consolidated Balance Sheets, Derivative Liabilities | -31,138 | -46,791 | -37,691 |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Liabilities | 22,863 | 11,641 | 10,497 |
Net amounts | ($8,275) | ($35,150) | ($27,194) |
Derivatives_Classified_as_Curr
Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Detail) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Other current assets | $41,875 | $12,699 | $12,257 |
Accrued liabilities (current) | -25,177 | -36,622 | -28,743 |
Other assets (noncurrent) | 15,338 | 3,389 | 475 |
Other liabilities (noncurrent) | ($5,961) | ($10,169) | ($8,948) |
Effects_of_Cash_Flow_Hedging_i
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income | ($12,911) | $6,571 | ($25,734) | $15,707 |
Foreign Currency Exchange Contract | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) on Derivatives Recognized in OCI | 51,351 | -54,432 | 43,586 | -2,032 |
Foreign Currency Exchange Contract | Net sales | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income | -7,657 | 6,195 | -7,539 | 7,418 |
Foreign Currency Exchange Contract | Cost of goods sold | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income | -3,496 | 3,574 | -13,199 | 11,115 |
Foreign Currency Exchange Contract | Other income (expense), net | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income | -730 | -2,218 | -1,945 | 83 |
Interest Rate Contract | Interest expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income | ($1,028) | ($980) | ($3,051) | ($2,909) |
Hedges_Included_in_Consolidate
Hedges Included in Consolidated Statements of Income (Detail) (Foreign exchange contracts not designated as hedging, Other income (expense), net, Foreign Currency Exchange Contract, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Foreign exchange contracts not designated as hedging | Other income (expense), net | Foreign Currency Exchange Contract | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) on Derivatives Recognized in Income | $35 | ($6,402) | ($4,835) | ($2,404) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, Dividend Declared, USD $) | 0 Months Ended | |
Oct. 16, 2014 | Oct. 16, 2014 | |
Subsequent Event | Dividend Declared | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Cash dividend | ' | $0.32 |
Dividends payable date | 19-Dec-14 | ' |
Dividends record date | 9-Dec-14 | ' |