Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 03, 2015 | Oct. 31, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | VFC | |
Entity Registrant Name | V F CORP | |
Entity Central Index Key | 103,379 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 426,309,081 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Current assets | |||
Cash and equivalents | $ 566,599 | $ 971,895 | $ 496,500 |
Accounts receivable, less allowance for doubtful accounts of: September 2015 - $23,287; December 2014 - $26,694; September 2014 - $39,950 | 1,870,530 | 1,276,224 | 1,764,636 |
Inventories | 2,038,126 | 1,482,804 | 1,822,162 |
Other current assets | 460,562 | 454,931 | 440,915 |
Total current assets | 4,935,817 | 4,185,854 | 4,524,213 |
Property, plant and equipment | 981,558 | 942,181 | 940,193 |
Intangible assets | 2,309,481 | 2,433,552 | 2,785,651 |
Goodwill | 1,800,008 | 1,824,956 | 1,989,871 |
Other assets | 625,058 | 593,597 | 575,948 |
Total assets | 10,651,922 | 9,980,140 | 10,815,876 |
Current liabilities | |||
Short-term borrowings | 1,285,388 | 21,822 | 654,839 |
Current portion of long-term debt | 13,197 | 3,975 | 4,374 |
Accounts payable | 580,368 | 690,842 | 674,950 |
Accrued liabilities | 904,667 | 903,602 | 932,315 |
Total current liabilities | 2,783,620 | 1,620,241 | 2,266,478 |
Long-term debt | 1,411,446 | 1,423,581 | 1,424,311 |
Other liabilities | $ 1,095,659 | $ 1,305,436 | $ 1,262,727 |
Commitments and contingencies | |||
Stockholders' equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at September 2015, December 2014 or September 2014 | |||
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at September 2015 - 426,250,097; December 2014 - 432,859,891; September 2014 - 431,649,948 | $ 106,563 | $ 108,215 | $ 107,912 |
Additional paid-in capital | 3,176,806 | 2,993,186 | 2,923,024 |
Accumulated other comprehensive income (loss) | (898,775) | (702,272) | (418,235) |
Retained earnings | 2,976,603 | 3,231,753 | 3,249,659 |
Total stockholders' equity | 5,361,197 | 5,630,882 | 5,862,360 |
Total liabilities and stockholders' equity | $ 10,651,922 | $ 9,980,140 | $ 10,815,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 23,287 | $ 26,694 | $ 39,950 |
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 | 426,250,097 | 432,859,891 | 431,649,948 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Net sales | $ 3,583,027 | $ 3,486,998 | $ 8,870,518 | $ 8,610,521 |
Royalty income | 29,793 | 33,449 | 93,463 | 92,780 |
Total revenues | 3,612,820 | 3,520,447 | 8,963,981 | 8,703,301 |
Costs and operating expenses | ||||
Cost of goods sold | 1,883,610 | 1,818,655 | 4,630,503 | 4,464,565 |
Selling, general and administrative expenses | 1,086,282 | 1,068,710 | 3,069,688 | 2,982,656 |
Costs and Expenses, Total | 2,969,892 | 2,887,365 | 7,700,191 | 7,447,221 |
Operating income | 642,928 | 633,082 | 1,263,790 | 1,256,080 |
Interest income | 1,506 | 1,852 | 5,499 | 4,702 |
Interest expense | (22,324) | (22,555) | (67,196) | (64,530) |
Other income (expense), net | (1,280) | (1,609) | 218 | (4,209) |
Income before income taxes | 620,830 | 610,770 | 1,202,311 | 1,192,043 |
Income taxes | 160,966 | 140,241 | 282,927 | 266,639 |
Net income | $ 459,864 | $ 470,529 | $ 919,384 | $ 925,404 |
Earnings per common share | ||||
Basic | $ 1.08 | $ 1.09 | $ 2.16 | $ 2.14 |
Diluted | 1.07 | 1.08 | 2.13 | 2.10 |
Cash dividends per common share | $ 0.3200 | $ 0.2625 | $ 0.9600 | $ 0.7875 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Net income | $ 459,864 | $ 470,529 | $ 919,384 | $ 925,404 |
Foreign currency translation | ||||
Gains (losses) arising during the period | 12,282 | (235,077) | (232,829) | (271,811) |
Less income tax effect | 1,740 | 3,293 | 4,495 | 3,905 |
Defined benefit pension plans | ||||
Amortization of net deferred actuarial losses | 15,493 | 9,385 | 46,485 | 28,158 |
Amortization of deferred prior service costs | 760 | 1,361 | 2,281 | 4,085 |
Settlement charges | 2,400 | 3,992 | ||
Less income tax effect | (7,065) | (4,521) | (24,161) | (12,754) |
Derivative financial instruments | ||||
Gains (losses) arising during the period | 5,634 | 51,351 | 52,068 | 43,586 |
Less income tax effect | (2,178) | (20,180) | (20,143) | (17,129) |
Reclassification to net income for (gains) losses realized | (23,171) | 12,911 | (46,669) | 25,734 |
Less income tax effect | 8,956 | (5,074) | 18,392 | (10,113) |
Marketable securities | ||||
Gains (losses) arising during the period | 871 | 495 | (289) | |
Less income tax effect | (343) | (195) | 113 | |
Reclassification to net income for (gains) losses realized | (1,177) | |||
Less income tax effect | 463 | |||
Net other comprehensive income (loss) | 14,851 | (186,023) | (196,503) | (206,515) |
Comprehensive income | $ 474,715 | $ 284,506 | $ 722,881 | $ 718,889 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Operating activities | ||
Net income | $ 919,384 | $ 925,404 |
Adjustments to reconcile net income to cash (used) provided by operating activities: | ||
Depreciation and amortization | 198,304 | 200,519 |
Stock-based compensation | 73,136 | 77,440 |
Provision for doubtful accounts | 7,876 | 5,195 |
Pension expense (less than) in excess of contributions | (220,339) | 29,791 |
Other, net | 604 | 86,241 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (653,545) | (467,399) |
Inventories | (587,669) | (454,849) |
Accounts payable | (100,533) | 46,060 |
Income taxes | (29,299) | (113,401) |
Accrued liabilities | 74,845 | 99,042 |
Other assets and liabilities | (13,725) | (67,197) |
Cash (used) provided by operating activities | (330,961) | 366,846 |
Investing activities | ||
Capital expenditures | (187,281) | (171,606) |
Software purchases | (53,053) | (66,815) |
Other, net | 3,150 | (16,612) |
Cash used by investing activities | (237,184) | (255,033) |
Financing activities | ||
Net increase in short-term borrowings | 1,268,146 | 637,786 |
Payments on long-term debt | (3,163) | (3,549) |
Payment of debt issuance costs | (1,475) | |
Purchases of treasury stock | (731,936) | (727,536) |
Cash dividends paid | (407,684) | (340,690) |
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 23,168 | 9,433 |
Tax benefits of stock-based compensation | 50,750 | 47,786 |
Cash provided (used) by financing activities | 197,806 | (376,770) |
Effect of foreign currency rate changes on cash and equivalents | (34,957) | (14,946) |
Net change in cash and equivalents | (405,296) | (279,903) |
Cash and equivalents - beginning of year | 971,895 | 776,403 |
Cash and equivalents - end of period | $ 566,599 | $ 496,500 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Dec. 28, 2013 | $ 110,078 | $ 2,746,590 | $ (211,720) | $ 3,432,090 | |
Balance (in shares) at Dec. 28, 2013 | 440,310,370 | ||||
Net income | $ 925,404 | ||||
Balance (in shares) at Sep. 27, 2014 | 431,649,948 | ||||
Balance at Sep. 27, 2014 | $ 5,862,360 | ||||
Balance at Dec. 28, 2013 | $ 110,078 | 2,746,590 | (211,720) | 3,432,090 | |
Balance (in shares) at Dec. 28, 2013 | 440,310,370 | ||||
Net income | 1,047,505 | ||||
Dividends on Common Stock | (478,933) | ||||
Purchases of treasury stock (in Shares) | (12,037,000) | ||||
Purchase of treasury stock | $ (3,009) | (724,786) | |||
Stock-based compensation, net (in Shares) | 4,586,521 | ||||
Stock-based compensation, net | $ 1,146 | 246,596 | (44,123) | ||
Foreign currency translation | (463,588) | ||||
Defined benefit pension plans | (99,683) | ||||
Derivative financial instruments | 73,143 | ||||
Marketable securities | (424) | ||||
Balance (in shares) at Jan. 03, 2015 | 432,859,891 | 432,859,891 | |||
Balance at Jan. 03, 2015 | $ 5,630,882 | $ 108,215 | 2,993,186 | (702,272) | 3,231,753 |
Net income | $ 919,384 | 919,384 | |||
Dividends on Common Stock | (407,684) | ||||
Purchases of treasury stock (in Shares) | (10,000,000) | (10,025,700) | |||
Purchase of treasury stock | $ (730,100) | $ (2,506) | (729,430) | ||
Stock-based compensation, net (in Shares) | 3,415,906 | ||||
Stock-based compensation, net | $ 854 | 183,620 | (37,420) | ||
Foreign currency translation | (228,334) | ||||
Defined benefit pension plans | 28,597 | ||||
Derivative financial instruments | 3,648 | ||||
Marketable securities | (414) | ||||
Balance (in shares) at Oct. 03, 2015 | 426,250,097 | 426,250,097 | |||
Balance at Oct. 03, 2015 | $ 5,361,197 | $ 106,563 | $ 3,176,806 | $ (898,775) | $ 2,976,603 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
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 2015, December 2014 and September 2014 relate to the fiscal periods ended on October 3, 2015, January 3, 2015 and September 27, 2014, 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 in the United States of America (“GAAP”) for complete financial statements. Similarly, the December 2014 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 2015 are not necessarily indicative of results that may be expected for any other interim period or for the year ending January 2, 2016. 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 2014 (“2014 Form 10-K”). |
Sale of Accounts Receivable
Sale of Accounts Receivable | 9 Months Ended |
Oct. 03, 2015 | |
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 VF’s accounts receivable may be sold to the financial institution and remain outstanding at any point in time. VF removes the accounts receivable from the Consolidated Balance Sheets at the time of sale. VF does not retain any interests in the sold accounts receivable but continues to service and collect outstanding accounts receivable on behalf of the financial institution. During the first nine months of 2015, VF sold total accounts receivable of $987.9 million. As of September 2015, December 2014 and September 2014, $167.5 million, $130.3 million and $172.0 million, respectively, of sold accounts receivable had been removed from the Consolidated Balance Sheets but remained outstanding with the financial institution. The funding fee charged by the financial institution is included in other income (expense), net, and was $0.5 million and $1.4 million for the third quarter and first nine months of 2015, respectively, and $0.4 million and $1.2 million for the third quarter and first nine months of 2014, respectively. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows. |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2015 | |
Inventories | Note C – Inventories September December September In thousands 2015 2014 2014 Finished products $ 1,763,630 $ 1,232,623 $ 1,570,512 Work in process 101,307 104,517 101,037 Raw materials 173,189 145,664 150,613 Total inventories $ 2,038,126 $ 1,482,804 $ 1,822,162 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Oct. 03, 2015 | |
Property, Plant and Equipment | Note D – Property, Plant and Equipment September December September In thousands 2015 2014 2014 Land and improvements $ 98,026 $ 57,151 $ 57,626 Buildings and improvements 1,027,003 986,679 996,208 Machinery and equipment 1,252,885 1,225,293 1,227,551 Property, plant and equipment, at cost 2,377,914 2,269,123 2,281,385 Less accumulated depreciation and amortization 1,396,356 1,326,942 1,341,192 Property, plant and equipment, net $ 981,558 $ 942,181 $ 940,193 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 03, 2015 | |
Intangible Assets | Note E – Intangible Assets Weighted Average Amortization Period September 2015 December 2014 Dollars in thousands Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 573,867 $ 357,365 $ 216,502 $ 241,811 License agreements 24 years Accelerated and straight-line 179,972 91,128 88,844 96,736 Other 11 years Straight-line 5,804 2,100 3,704 4,363 Amortizable intangible assets, net 309,050 342,910 Indefinite-lived intangible assets: Trademarks and trade names 2,000,431 2,090,642 Intangible assets, net $ 2,309,481 $ 2,433,552 Amortization expense for the third quarter and first nine months of 2015 was $7.3 million and $22.5 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years is: Year Estimated Amortization Expense In millions 2015 $ 29.9 2016 28.5 2017 27.4 2018 26.9 2019 26.3 |
Goodwill
Goodwill | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill | Note F – Goodwill Changes in goodwill are summarized by business segment as follows: Outdoor & In thousands Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2014 $ 1,389,453 $ 219,442 $ 58,747 $ 157,314 $ 1,824,956 Currency translation (20,410 ) (4,538 ) — — (24,948 ) Balance, September 2015 $ 1,369,043 $ 214,904 $ 58,747 $ 157,314 $ 1,800,008 Accumulated impairment charges for the Outdoor & Action Sports and Sportswear coalitions were $43.4 million and $58.5 million, respectively, for the dates presented above. No impairment charges were recorded in the first nine months of 2015. |
Pension Plans
Pension Plans | 9 Months Ended |
Oct. 03, 2015 | |
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 2015 2014 2015 2014 Service cost – benefits earned during the period $ 7,305 $ 6,046 $ 21,984 $ 18,228 Interest cost on projected benefit obligations 19,415 20,387 58,229 61,180 Expected return on plan assets (27,784 ) (22,682 ) (83,334 ) (68,060 ) Amortization of deferred amounts: Net deferred actuarial losses 15,493 9,385 46,485 28,158 Deferred prior service costs 760 1,361 2,281 4,085 Net periodic pension cost $ 15,189 $ 14,497 $ 45,645 $ 43,591 During the first nine months of 2015, VF contributed $270.0 million to its defined benefit plans, which included a $250.0 million discretionary contribution to its domestic qualified plan in the first quarter. VF intends to make approximately $3.0 million of additional contributions during the remainder of 2015. In addition, VF incurred $2.4 million and $4.0 million in settlement charges during the third quarter and first nine months of 2015, respectively, related to the recognition of deferred actuarial losses resulting from lump-sum payments of retirement benefits to participants in VF’s supplemental defined benefit pension plan. |
Capital and Accumulated Other C
Capital and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Oct. 03, 2015 | |
Capital and Accumulated Other Comprehensive Income (Loss) | Note H – Capital and Accumulated Other Comprehensive Income (Loss) During the first nine months of 2015, the Company purchased 10.0 million shares of Common Stock in open market transactions for $730.1 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 2015, VF restored 10.1 million treasury shares to an unissued status, after which they were no longer recognized as shares held in treasury. There were 1,900 shares held in treasury at the end of September 2015, and no shares held in treasury at the end of December 2014 or September 2014. 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 2015, the Company purchased 25,700 shares of Common Stock in open market transactions for $1.8 million. Balances related to shares held for deferred compensation plans are as follows: September December September In millions, except share amounts 2015 2014 2014 Shares held for deferred compensation plans 560,049 637,504 640,404 Cost of shares held for deferred compensation plans $ 6.7 $ 7.7 $ 7.6 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: September December September In thousands 2015 2014 2014 Foreign currency translation $ (585,275 ) $ (356,941 ) $ (161,259 ) Defined benefit pension plans (348,537 ) (377,134 ) (257,962 ) Derivative financial instruments 35,037 31,389 324 Marketable securities — 414 662 Accumulated other comprehensive income (loss) $ (898,775 ) $ (702,272 ) $ (418,235 ) The changes in accumulated other comprehensive income (loss), net of related taxes, are as follows: Three Months Ended September 2015 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, June 2015 $ (599,297 ) $ (360,125 ) $ 45,796 $ — $ (913,626 ) Other comprehensive income (loss) before reclassification 14,022 — 3,456 — 17,478 Amounts reclassified from accumulated other comprehensive income (loss) — 11,588 (14,215 ) — (2,627 ) Net other comprehensive income (loss) 14,022 11,588 (10,759 ) — 14,851 Balance, September 2015 $ (585,275 ) $ (348,537 ) $ 35,037 $ — $ (898,775 ) Three Months Ended September 2014 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, June 2014 $ 70,525 $ (264,187 ) $ (38,684 ) $ 134 $ (232,212 ) Other comprehensive income (loss) before reclassification (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 ) Nine Months Ended September 2015 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, December 2014 $ (356,941 ) $ (377,134 ) $ 31,389 $ 414 $ (702,272 ) Other comprehensive income (loss) before reclassification (228,334 ) — 31,925 300 (196,109 ) Amounts reclassified from accumulated other comprehensive income (loss) — 28,597 (28,277 ) (714 ) (394 ) Net other comprehensive income (loss) (228,334 ) 28,597 3,648 (414 ) (196,503 ) Balance, September 2015 $ (585,275 ) $ (348,537 ) $ 35,037 $ — $ (898,775 ) Nine Months Ended September 2014 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total 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 ) Reclassifications out of accumulated other comprehensive income (loss) are as follows: In thousands Affected Line Item in the Consolidated Statements Three Months Ended Nine Months Ended Details About Accumulated Other September September Comprehensive Income (Loss) Components of Income 2015 2014 2015 2014 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (15,493 ) $ (9,385 ) $ (46,485 ) $ (28,158 ) Deferred prior service costs (a) (760 ) (1,361 ) (2,281 ) (4,085 ) Pension settlement charges Selling, general and administrative expenses (2,400 ) — (3,992 ) — Total before tax (18,653 ) (10,746 ) (52,758 ) (32,243 ) Tax benefit 7,065 4,521 24,161 12,754 Net of tax (11,588 ) (6,225 ) (28,597 ) (19,489 ) Gains (losses) on derivative financial instruments Foreign exchange contracts Net sales (22,434 ) (7,657 ) (51,279 ) (7,539 ) Foreign exchange contracts Cost of goods sold 39,142 (3,496 ) 80,633 (13,199 ) Foreign exchange contracts Other income (expense), net 7,541 (730 ) 20,515 (1,945 ) Interest rate contracts Interest expense (1,078 ) (1,028 ) (3,200 ) (3,051 ) Total before tax 23,171 (12,911 ) 46,669 (25,734 ) Tax benefit (expense) (8,956 ) 5,074 (18,392 ) 10,113 Net of tax 14,215 (7,837 ) 28,277 (15,621 ) Gains (losses) on sale of marketable securities Other income (expense), net — — 1,177 — Tax expense — — (463 ) — Net of tax — — 714 — Total reclassifications for the period Net of tax $ 2,627 $ (14,062 ) $ 394 $ (35,110 ) (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Oct. 03, 2015 | |
Stock-based Compensation | Note I – Stock-based Compensation During the first nine months of 2015, VF granted options to employees and nonemployee members of VF’s Board of Directors to purchase 2,472,074 shares of Common Stock. Of this amount, 2,399,883 options were granted in the first quarter of 2015 at an exercise price of $75.35 per share, and 72,191 options were granted in the third quarter of 2015 at an exercise price of $74.64 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: Options Granted Three Months Ended Options Granted Three Months Ended Expected volatility 19% to 29% 20% to 29% Weighted average expected volatility 21% 22% Expected term (in years) 6.0 to 7.0 5.9 to 7.5 Dividend yield 1.8% 2.0% Risk-free interest rate 0.1% to 2.3% 0.1% to 2.1% Fair value at date of grant $14.21 $13.71 VF granted 442,338 and 13,671 performance-based restricted stock units (“RSU”) to employees during the first and third quarters of 2015, respectively, which enable the employees to receive shares of VF Common Stock at the end of a three-year period. Each RSU has a potential payout value ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is based on achievement of a three-year baseline profitability goal and annually established performance goals set by the Compensation Committee of the Board of Directors. Shares are issued to participants in the year following the conclusion of each three-year performance period. The fair market value of VF Common Stock at the date the units were granted in the first and third quarters of 2015 was $75.35 and $74.64 per share, respectively. The actual number of performance-based RSUs earned may also be adjusted upward or downward by 25% of the target award, based on how VF’s total shareholder return (“TSR”) over the three-year period compares to the TSR for companies included in the Standard & Poor’s 500 Index. The grant date fair value of the TSR-based adjustment related to the 2015 RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $3.78 per share. VF granted 11,556 nonperformance-based RSUs to nonemployee members of the Board of Directors during the first quarter of 2015. 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 $75.35 per share. VF granted 37,300 and 33,000 nonperformance-based RSUs to employees during the first and third quarters of 2015, respectively. 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 in the first and third quarters of 2015 was $68.47 and $72.75 per share, respectively. VF granted 104,500 and 7,000 restricted shares of VF Common Stock to employees during the first and third quarters of 2015, respectively. 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 in the first quarter of 2015 was $70.98 per share. The fair market value of VF Common Stock at the date the units were granted in the third quarter of 2015 was $72.75 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2015 | |
Income Taxes | Note J – Income Taxes The effective income tax rate for the first nine months of 2015 was 23.5% compared with 22.4% in the first nine months of 2014. The first nine months of 2015 included a net discrete tax benefit of $29.0 million, which included $33.7 million of tax benefits related to the settlement of tax audits and $5.0 million of discrete tax expense related to the effects of tax rate changes. The $29.0 million tax benefit in 2015 reduced the effective income tax rate by 2.4%. 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%. Without discrete items, the effective income tax rate for the first nine months of 2015 increased by 2.0% compared with the 2014 period primarily due to i) a lower percentage of projected foreign earnings for 2015, reflecting the impact of changes in foreign currency exchange rates, ii) the expiration of a favorable tax ruling in a foreign jurisdiction at the end of fiscal year 2014, and iii) the comparative impact of tax benefits recorded in 2014 related to the utilization of foreign tax attributes. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. In the U.S., the Internal Revenue Service (“IRS”) examinations for tax years 2007 through 2011 were effectively settled during the first half of 2015. Additionally, tax years prior to 2007 were effectively settled with the IRS in prior years. 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 ongoing. The IRS has proposed adjustments to Timberland’s 2011 tax return that would significantly impact the timing of cash tax payments and assessment of interest charges. The Company has formally disagreed with the proposed adjustments and, during the third quarter of 2015, VF filed a petition to the U.S. Tax Court to begin the process of resolving this matter. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years, and has concluded that VF’s provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. During the first nine months of 2015, the amount of net unrecognized tax benefits and associated interest decreased by $26.1 million to $81.4 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 $27.3 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $21.4 million would reduce income tax expense. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Oct. 03, 2015 | |
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 2015 2014 2015 2014 Coalition revenues: Outdoor & Action Sports $ 2,296,551 $ 2,180,879 $ 5,299,784 $ 5,034,670 Jeanswear 747,869 750,446 2,055,725 2,046,614 Imagewear 291,540 292,531 823,224 805,733 Sportswear 161,697 163,442 439,545 435,049 Contemporary Brands 83,194 99,382 257,605 293,737 Other 31,969 33,767 88,098 87,498 Total coalition revenues $ 3,612,820 $ 3,520,447 $ 8,963,981 $ 8,703,301 Coalition profit: Outdoor & Action Sports $ 487,929 $ 475,444 $ 883,674 $ 880,618 Jeanswear 158,603 156,998 395,103 386,401 Imagewear 41,830 42,855 118,627 115,944 Sportswear 23,194 22,979 50,468 45,801 Contemporary Brands 585 4,869 5,265 21,611 Other 354 1,193 15,478 (1,997 ) Total coalition profit 712,495 704,338 1,468,615 1,448,378 Corporate and other expenses (70,847 ) (72,865 ) (204,607 ) (196,507 ) Interest expense, net (20,818 ) (20,703 ) (61,697 ) (59,828 ) Income before income taxes $ 620,830 $ 610,770 $ 1,202,311 $ 1,192,043 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share | Note L – Earnings Per Share Three Months Ended September Nine Months Ended September In thousands, except per share amounts 2015 2014 2015 2014 Earnings per share – basic: Net income $ 459,864 $ 470,529 $ 919,384 $ 925,404 Weighted average common shares outstanding 425,208 430,638 425,273 432,956 Earnings per common share $ 1.08 $ 1.09 $ 2.16 $ 2.14 Earnings per share – diluted: Net income $ 459,864 $ 470,529 $ 919,384 $ 925,404 Weighted average common shares outstanding 425,208 430,638 425,273 432,956 Incremental shares from stock options and other dilutive securities 6,252 6,949 6,818 7,372 Adjusted weighted average common shares outstanding 431,460 437,587 432,091 440,328 Earnings per common share $ 1.07 $ 1.08 $ 2.13 $ 2.10 Outstanding options to purchase 2.4 million shares were excluded from the calculations of diluted earnings per share for both the three and nine-month periods ended September 2015, and options to purchase 0.1 million and 1.8 million shares were excluded from the calculations of diluted earnings per share for the three and nine-month periods ended September 2014, respectively, because the effect of their inclusion would have been antidilutive to those periods. In addition, 1.0 million shares of performance-based restricted stock units were excluded from the calculations of diluted earnings per share for both the three and nine-month periods ended September 2015, and 1.3 million shares of performance-based restricted stock units were excluded from the calculations of diluted earnings per share for both the three and nine-month periods ended September 2014, because these units were not considered to be contingent outstanding shares in those periods. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2015 | |
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 Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 September 2015 Financial assets: Cash equivalents: Money market funds $ 262,374 $ 262,374 $ — $ — Time deposits 54,152 54,152 — — Derivative financial instruments 94,225 — 94,225 — Investment securities 201,081 189,261 11,820 — Financial liabilities: Derivative financial instruments 47,181 — 47,181 — Deferred compensation 253,521 — 253,521 — December 2014 Financial assets: Cash equivalents: Money market funds $ 388,635 $ 388,635 $ — $ — Time deposits 197,303 197,303 — — Derivative financial instruments 105,264 — 105,264 — Investment securities 228,406 208,874 19,532 — Other marketable securities 5,111 5,111 — — Financial liabilities: Derivative financial instruments 31,769 — 31,769 — Deferred compensation 295,226 — 295,226 — (a) There were no transfers among the levels within the fair value hierarchy during the first nine months of 2015 or the year ended December 2014. VF’s cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of forward foreign currency exchange contracts, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. Investment securities are held in VF’s deferred compensation plans as an economic hedge of the related deferred compensation liabilities. These investments are classified as trading securities and primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets and a separately managed fixed income fund (Level 2) 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. Prior to the second quarter of 2015, other marketable securities consisted of common stock investments classified as available-for-sale, the fair value of which was based on quoted prices in active markets. During the second quarter of 2015, VF sold all of its available-for-sale securities for $5.9 million in cash proceeds and recognized a gain of $1.5 million, which is included in other income (expense), net, in the Consolidated Statements of Income for the nine months ended September 2015. 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 2015 and December 2014, their carrying values approximated their fair values. Additionally, at September 2015 and December 2014, the carrying values of VF’s long-term debt, including the current portion, were $1,424.6 million and $1,427.6 million, respectively, compared with fair values of $1,656.7 million and $1,684.1 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Oct. 03, 2015 | |
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 $2.4 billion at September 2015, $1.9 billion at December 2014 and $1.8 billion at September 2014, consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, Japanese yen and Polish zloty. Derivative contracts have maturities up to 24 months. The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses September December September September December September In thousands 2015 2014 2014 2015 2014 2014 Foreign currency exchange contracts designated as hedging instruments $ 94,113 $ 104,860 $ 57,009 $ (46,808 ) $ (31,711 ) $ (29,419 ) Foreign currency exchange contracts not designated as hedging instruments 112 404 204 (373 ) (58 ) (1,719 ) Total derivatives $ 94,225 $ 105,264 $ 57,213 $ (47,181 ) $ (31,769 ) $ (31,138 ) 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 its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2015 December 2014 September 2014 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 94,225 $ (47,181 ) $ 105,264 $ (31,769 ) $ 57,213 $ (31,138 ) Gross amounts not offset in the Consolidated Balance Sheets (36,597 ) 36,597 (30,724 ) 30,724 (22,863 ) 22,863 Net amounts $ 57,628 $ (10,584 ) $ 74,540 $ (1,045 ) $ 34,350 $ (8,275 ) Derivatives are classified in the Consolidated Balance Sheets as current or noncurrent based on their maturity dates, as follows: September December September In thousands 2015 2014 2014 Other current assets $ 85,405 $ 84,995 $ 41,875 Accrued liabilities (40,969 ) (26,968 ) (25,177 ) Other assets 8,820 20,269 15,338 Other liabilities (6,212 ) (4,801 ) (5,961 ) Cash Flow Hedges VF uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, production costs, operating costs and intercompany royalties. The effects of cash flow hedging included in VF’s Consolidated Statements of Income and Consolidated Statements of Comprehensive Income are summarized as follows: Gain (Loss) on Derivatives Gain (Loss) on Derivatives Recognized in OCI Recognized in OCI In thousands Three Months Ended September Nine Months Ended September Cash Flow Hedging Relationships 2015 2014 2015 2014 Foreign currency exchange $ 5,634 $ 51,351 $ 52,068 $ 43,586 Gain (Loss) Reclassified from Gain (Loss) Reclassified from Accumulated OCI into Income Accumulated OCI into Income In thousands Three Months Ended September Nine Months Ended September Location of Gain (Loss) 2015 2014 2015 2014 Net sales $ (22,434 ) $ (7,657 ) $ (51,279 ) $ (7,539 ) Cost of goods sold 39,142 (3,496 ) 80,633 (13,199 ) Other income (expense), net 7,541 (730 ) 20,515 (1,945 ) Interest expense (1,078 ) (1,028 ) (3,200 ) (3,051 ) Total $ 23,171 $ (12,911 ) $ 46,669 $ (25,734 ) 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 gains or losses on the related assets and liabilities. Following is a summary of these derivatives included in VF’s Consolidated Statements of Income: Gain (Loss) on Derivative Gain (Loss) on Derivative Location of Gain (Loss) Recognized in Income Recognized in Income In thousands on Derivatives Three Months Ended September Nine Months Ended September Derivatives Not Designated as Hedges Recognized in Income 2015 2014 2015 2014 Foreign currency exchange Other income (expense), net $ 836 $ 35 $ (1,625 ) $ (4,835 ) 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 2015 and September 2014. At September 2015, accumulated OCI included $79.8 million of pretax net deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033, respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in accumulated OCI. The remaining pretax net deferred loss in accumulated OCI was $28.3 million at September 2015, which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. VF reclassified $1.1 million and $3.2 million of net deferred losses from accumulated OCI into interest expense during the three and nine-month periods ended September 2015, respectively, and $1.1 million and $3.1 million for the three and nine-month periods ended September 2014, respectively. VF expects to reclassify $4.6 million to interest expense during the next 12 months. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 9 Months Ended |
Oct. 03, 2015 | |
Recently Issued and Adopted Accounting Standards | Note O – Recently Issued and Adopted Accounting Standards In April 2014, the Financial Accounting Standards Board (“FASB”) changed the definition and disclosure requirements for discontinued operations. This guidance became effective in the first quarter of 2015, but did not have an impact on VF’s consolidated financial statements. 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. In July 2015, the FASB approved a one-year delay to the adoption date of the standard that makes it effective in the first quarter of 2018 with early adoption permitted. 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 with early adoption permitted, but is not expected to have an impact on VF’s consolidated financial statements. In February 2015, the FASB issued an update to their existing consolidation model, which changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance will be effective in the first quarter of 2016 with early adoption permitted, but is not expected to have a significant impact on VF’s consolidated financial statements. In April 2015, the FASB issued an update to their accounting guidance related to debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance will be effective in the first quarter of 2016 with early adoption permitted. The Company will reclassify the debt issuance costs in VF’s 2015 consolidated financial statements in accordance with the early adoption provisions of this guidance. In April 2015, the FASB issued an update to their accounting guidance related to retirement benefits that provides a practical expedient permitting companies to measure defined benefit plan assets and obligations using the month-end that is closest to an entity’s fiscal year-end. This guidance will be effective in the first quarter of 2016 with early adoption permitted. The Company plans to elect early adoption of this guidance in VF’s 2015 consolidated financial statements, and this election is not expected to have a significant impact. In April 2015, the FASB issued new guidance related to a customer’s accounting for fees paid in a cloud computing arrangement. The guidance provides clarification on whether a cloud computing arrangement includes a software license. If a software license is included, the customer should account for the license consistent with its accounting for other software licenses. If a software license is not included, the arrangement should be accounted for as a service contract. This guidance will be effective in the first quarter of 2016 with early adoption permitted, but is not expected to have a significant impact on VF’s consolidated financial statements. In May 2015, the FASB issued an update to their accounting guidance related to fair value measurements. The guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient, and requires separate disclosure instead. This guidance will be effective in the first quarter of 2016. Early adoption is permitted and retrospective application is required. The Company is currently evaluating the impact that adopting this guidance will have on the fair value disclosures in VF’s consolidated financial statements. In July 2015, the FASB issued an update to their accounting guidance related to the measurement of inventory, which changes the measurement principle for inventory from lower of cost or market to lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance will be effective in the first quarter of 2017 with early adoption permitted, but is not expected to have a significant impact on VF’s consolidated financial statements. In September 2015, the FASB issued an update to their accounting guidance related to business combinations that simplifies the accounting for measurement-period adjustments. The guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, thus eliminating the requirement to restate prior period financial statements for measurement-period adjustments. This guidance will be effective in the first quarter of 2016, and will have an impact on VF’s consolidated financial statements if the Company is the acquirer in a business combination that includes measurement-period adjustments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 03, 2015 | |
Subsequent Events | Note P – Subsequent Events On October 20, 2015, VF’s Board of Directors declared a quarterly cash dividend of $0.37 per share, payable on December 18, 2015 to stockholders of record on December 8, 2015. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Inventories | September December September In thousands 2015 2014 2014 Finished products $ 1,763,630 $ 1,232,623 $ 1,570,512 Work in process 101,307 104,517 101,037 Raw materials 173,189 145,664 150,613 Total inventories $ 2,038,126 $ 1,482,804 $ 1,822,162 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Property, Plant and Equipment | September December September In thousands 2015 2014 2014 Land and improvements $ 98,026 $ 57,151 $ 57,626 Buildings and improvements 1,027,003 986,679 996,208 Machinery and equipment 1,252,885 1,225,293 1,227,551 Property, plant and equipment, at cost 2,377,914 2,269,123 2,281,385 Less accumulated depreciation and amortization 1,396,356 1,326,942 1,341,192 Property, plant and equipment, net $ 981,558 $ 942,181 $ 940,193 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Indefinite-lived Intangible Assets | Weighted Average Amortization Period September 2015 December 2014 Dollars in thousands Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 573,867 $ 357,365 $ 216,502 $ 241,811 License agreements 24 years Accelerated and straight-line 179,972 91,128 88,844 96,736 Other 11 years Straight-line 5,804 2,100 3,704 4,363 Amortizable intangible assets, net 309,050 342,910 Indefinite-lived intangible assets: Trademarks and trade names 2,000,431 2,090,642 Intangible assets, net $ 2,309,481 $ 2,433,552 |
Amortizable Intangible Assets | Weighted Average Amortization Period September 2015 December 2014 Dollars in thousands Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 573,867 $ 357,365 $ 216,502 $ 241,811 License agreements 24 years Accelerated and straight-line 179,972 91,128 88,844 96,736 Other 11 years Straight-line 5,804 2,100 3,704 4,363 Amortizable intangible assets, net 309,050 342,910 Indefinite-lived intangible assets: Trademarks and trade names 2,000,431 2,090,642 Intangible assets, net $ 2,309,481 $ 2,433,552 |
Estimated Amortization Expense | Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years is: Year Estimated Amortization Expense In millions 2015 $ 29.9 2016 28.5 2017 27.4 2018 26.9 2019 26.3 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Changes in Goodwill | Changes in goodwill are summarized by business segment as follows: Outdoor & In thousands Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2014 $ 1,389,453 $ 219,442 $ 58,747 $ 157,314 $ 1,824,956 Currency translation (20,410 ) (4,538 ) — — (24,948 ) Balance, September 2015 $ 1,369,043 $ 214,904 $ 58,747 $ 157,314 $ 1,800,008 |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
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 2015 2014 2015 2014 Service cost – benefits earned during the period $ 7,305 $ 6,046 $ 21,984 $ 18,228 Interest cost on projected benefit obligations 19,415 20,387 58,229 61,180 Expected return on plan assets (27,784 ) (22,682 ) (83,334 ) (68,060 ) Amortization of deferred amounts: Net deferred actuarial losses 15,493 9,385 46,485 28,158 Deferred prior service costs 760 1,361 2,281 4,085 Net periodic pension cost $ 15,189 $ 14,497 $ 45,645 $ 43,591 |
Capital and Accumulated Other29
Capital and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Shares Held for Deferred Compensation Plans | Balances related to shares held for deferred compensation plans are as follows: September December September In millions, except share amounts 2015 2014 2014 Shares held for deferred compensation plans 560,049 637,504 640,404 Cost of shares held for deferred compensation plans $ 6.7 $ 7.7 $ 7.6 |
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: September December September In thousands 2015 2014 2014 Foreign currency translation $ (585,275 ) $ (356,941 ) $ (161,259 ) Defined benefit pension plans (348,537 ) (377,134 ) (257,962 ) Derivative financial instruments 35,037 31,389 324 Marketable securities — 414 662 Accumulated other comprehensive income (loss) $ (898,775 ) $ (702,272 ) $ (418,235 ) |
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 2015 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, June 2015 $ (599,297 ) $ (360,125 ) $ 45,796 $ — $ (913,626 ) Other comprehensive income (loss) before reclassification 14,022 — 3,456 — 17,478 Amounts reclassified from accumulated other comprehensive income (loss) — 11,588 (14,215 ) — (2,627 ) Net other comprehensive income (loss) 14,022 11,588 (10,759 ) — 14,851 Balance, September 2015 $ (585,275 ) $ (348,537 ) $ 35,037 $ — $ (898,775 ) Three Months Ended September 2014 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, June 2014 $ 70,525 $ (264,187 ) $ (38,684 ) $ 134 $ (232,212 ) Other comprehensive income (loss) before reclassification (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 ) Nine Months Ended September 2015 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total Balance, December 2014 $ (356,941 ) $ (377,134 ) $ 31,389 $ 414 $ (702,272 ) Other comprehensive income (loss) before reclassification (228,334 ) — 31,925 300 (196,109 ) Amounts reclassified from accumulated other comprehensive income (loss) — 28,597 (28,277 ) (714 ) (394 ) Net other comprehensive income (loss) (228,334 ) 28,597 3,648 (414 ) (196,503 ) Balance, September 2015 $ (585,275 ) $ (348,537 ) $ 35,037 $ — $ (898,775 ) Nine Months Ended September 2014 In thousands Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total 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 ) |
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 Consolidated Statements Three Months Ended Nine Months Ended Details About Accumulated Other September September Comprehensive Income (Loss) Components of Income 2015 2014 2015 2014 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (15,493 ) $ (9,385 ) $ (46,485 ) $ (28,158 ) Deferred prior service costs (a) (760 ) (1,361 ) (2,281 ) (4,085 ) Pension settlement charges Selling, general and administrative expenses (2,400 ) — (3,992 ) — Total before tax (18,653 ) (10,746 ) (52,758 ) (32,243 ) Tax benefit 7,065 4,521 24,161 12,754 Net of tax (11,588 ) (6,225 ) (28,597 ) (19,489 ) Gains (losses) on derivative financial instruments Foreign exchange contracts Net sales (22,434 ) (7,657 ) (51,279 ) (7,539 ) Foreign exchange contracts Cost of goods sold 39,142 (3,496 ) 80,633 (13,199 ) Foreign exchange contracts Other income (expense), net 7,541 (730 ) 20,515 (1,945 ) Interest rate contracts Interest expense (1,078 ) (1,028 ) (3,200 ) (3,051 ) Total before tax 23,171 (12,911 ) 46,669 (25,734 ) Tax benefit (expense) (8,956 ) 5,074 (18,392 ) 10,113 Net of tax 14,215 (7,837 ) 28,277 (15,621 ) Gains (losses) on sale of marketable securities Other income (expense), net — — 1,177 — Tax expense — — (463 ) — Net of tax — — 714 — Total reclassifications for the period Net of tax $ 2,627 $ (14,062 ) $ 394 $ (35,110 ) (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
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: Options Granted Three Months Ended Options Granted Three Months Ended Expected volatility 19% to 29% 20% to 29% Weighted average expected volatility 21% 22% Expected term (in years) 6.0 to 7.0 5.9 to 7.5 Dividend yield 1.8% 2.0% Risk-free interest rate 0.1% to 2.3% 0.1% to 2.1% Fair value at date of grant $14.21 $13.71 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
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 2015 2014 2015 2014 Coalition revenues: Outdoor & Action Sports $ 2,296,551 $ 2,180,879 $ 5,299,784 $ 5,034,670 Jeanswear 747,869 750,446 2,055,725 2,046,614 Imagewear 291,540 292,531 823,224 805,733 Sportswear 161,697 163,442 439,545 435,049 Contemporary Brands 83,194 99,382 257,605 293,737 Other 31,969 33,767 88,098 87,498 Total coalition revenues $ 3,612,820 $ 3,520,447 $ 8,963,981 $ 8,703,301 Coalition profit: Outdoor & Action Sports $ 487,929 $ 475,444 $ 883,674 $ 880,618 Jeanswear 158,603 156,998 395,103 386,401 Imagewear 41,830 42,855 118,627 115,944 Sportswear 23,194 22,979 50,468 45,801 Contemporary Brands 585 4,869 5,265 21,611 Other 354 1,193 15,478 (1,997 ) Total coalition profit 712,495 704,338 1,468,615 1,448,378 Corporate and other expenses (70,847 ) (72,865 ) (204,607 ) (196,507 ) Interest expense, net (20,818 ) (20,703 ) (61,697 ) (59,828 ) Income before income taxes $ 620,830 $ 610,770 $ 1,202,311 $ 1,192,043 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended September Nine Months Ended September In thousands, except per share amounts 2015 2014 2015 2014 Earnings per share – basic: Net income $ 459,864 $ 470,529 $ 919,384 $ 925,404 Weighted average common shares outstanding 425,208 430,638 425,273 432,956 Earnings per common share $ 1.08 $ 1.09 $ 2.16 $ 2.14 Earnings per share – diluted: Net income $ 459,864 $ 470,529 $ 919,384 $ 925,404 Weighted average common shares outstanding 425,208 430,638 425,273 432,956 Incremental shares from stock options and other dilutive securities 6,252 6,949 6,818 7,372 Adjusted weighted average common shares outstanding 431,460 437,587 432,091 440,328 Earnings per common share $ 1.07 $ 1.08 $ 2.13 $ 2.10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 September 2015 Financial assets: Cash equivalents: Money market funds $ 262,374 $ 262,374 $ — $ — Time deposits 54,152 54,152 — — Derivative financial instruments 94,225 — 94,225 — Investment securities 201,081 189,261 11,820 — Financial liabilities: Derivative financial instruments 47,181 — 47,181 — Deferred compensation 253,521 — 253,521 — December 2014 Financial assets: Cash equivalents: Money market funds $ 388,635 $ 388,635 $ — $ — Time deposits 197,303 197,303 — — Derivative financial instruments 105,264 — 105,264 — Investment securities 228,406 208,874 19,532 — Other marketable securities 5,111 5,111 — — Financial liabilities: Derivative financial instruments 31,769 — 31,769 — Deferred compensation 295,226 — 295,226 — (a) There were no transfers among the levels within the fair value hierarchy during the first nine months of 2015 or the year ended December 2014. |
Derivative Financial Instrume34
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Outstanding Derivatives on Individual Contract Basis | The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses September December September September December September In thousands 2015 2014 2014 2015 2014 2014 Foreign currency exchange contracts designated as hedging instruments $ 94,113 $ 104,860 $ 57,009 $ (46,808 ) $ (31,711 ) $ (29,419 ) Foreign currency exchange contracts not designated as hedging instruments 112 404 204 (373 ) (58 ) (1,719 ) Total derivatives $ 94,225 $ 105,264 $ 57,213 $ (47,181 ) $ (31,769 ) $ (31,138 ) |
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 its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2015 December 2014 September 2014 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 94,225 $ (47,181 ) $ 105,264 $ (31,769 ) $ 57,213 $ (31,138 ) Gross amounts not offset in the Consolidated Balance Sheets (36,597 ) 36,597 (30,724 ) 30,724 (22,863 ) 22,863 Net amounts $ 57,628 $ (10,584 ) $ 74,540 $ (1,045 ) $ 34,350 $ (8,275 ) |
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 its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: September 2015 December 2014 September 2014 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 94,225 $ (47,181 ) $ 105,264 $ (31,769 ) $ 57,213 $ (31,138 ) Gross amounts not offset in the Consolidated Balance Sheets (36,597 ) 36,597 (30,724 ) 30,724 (22,863 ) 22,863 Net amounts $ 57,628 $ (10,584 ) $ 74,540 $ (1,045 ) $ 34,350 $ (8,275 ) |
Derivatives Classified in the Consolidated Balance Sheets as Current or Noncurrent Based on Maturity Dates | Derivatives are classified in the Consolidated Balance Sheets as current or noncurrent based on their maturity dates, as follows: September December September In thousands 2015 2014 2014 Other current assets $ 85,405 $ 84,995 $ 41,875 Accrued liabilities (40,969 ) (26,968 ) (25,177 ) Other assets 8,820 20,269 15,338 Other liabilities (6,212 ) (4,801 ) (5,961 ) |
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: Gain (Loss) on Derivatives Gain (Loss) on Derivatives Recognized in OCI Recognized in OCI In thousands Three Months Ended September Nine Months Ended September Cash Flow Hedging Relationships 2015 2014 2015 2014 Foreign currency exchange $ 5,634 $ 51,351 $ 52,068 $ 43,586 Gain (Loss) Reclassified from Gain (Loss) Reclassified from Accumulated OCI into Income Accumulated OCI into Income In thousands Three Months Ended September Nine Months Ended September Location of Gain (Loss) 2015 2014 2015 2014 Net sales $ (22,434 ) $ (7,657 ) $ (51,279 ) $ (7,539 ) Cost of goods sold 39,142 (3,496 ) 80,633 (13,199 ) Other income (expense), net 7,541 (730 ) 20,515 (1,945 ) Interest expense (1,078 ) (1,028 ) (3,200 ) (3,051 ) Total $ 23,171 $ (12,911 ) $ 46,669 $ (25,734 ) |
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: Gain (Loss) on Derivative Gain (Loss) on Derivative Location of Gain (Loss) Recognized in Income Recognized in Income In thousands on Derivatives Three Months Ended September Nine Months Ended September Derivatives Not Designated as Hedges Recognized in Income 2015 2014 2015 2014 Foreign currency exchange Other income (expense), net $ 836 $ 35 $ (1,625 ) $ (4,835 ) |
Sale of Accounts Receivable - A
Sale of Accounts Receivable - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Jan. 03, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum amount of accounts receivable sold at any point in time | $ 237,500,000 | $ 237,500,000 | |||
Decrease in receivables related to balances sold | 167,500,000 | $ 172,000,000 | 167,500,000 | $ 172,000,000 | $ 130,300,000 |
Sale of accounts receivable | 987,900,000 | ||||
Funding fee | $ 500,000 | $ 400,000 | $ 1,400,000 | $ 1,200,000 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Inventory [Line Items] | |||
Finished products | $ 1,763,630 | $ 1,232,623 | $ 1,570,512 |
Work in process | 101,307 | 104,517 | 101,037 |
Raw materials | 173,189 | 145,664 | 150,613 |
Total inventories | $ 2,038,126 | $ 1,482,804 | $ 1,822,162 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 2,377,914 | $ 2,269,123 | $ 2,281,385 |
Less accumulated depreciation and amortization | 1,396,356 | 1,326,942 | 1,341,192 |
Property, plant and equipment, net | 981,558 | 942,181 | 940,193 |
Land and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 98,026 | 57,151 | 57,626 |
Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 1,027,003 | 986,679 | 996,208 |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 1,252,885 | $ 1,225,293 | $ 1,227,551 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | |
Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, net carrying amount | $ 309,050 | $ 342,910 | |
Indefinite-lived intangible assets, trademarks and trade names | 2,000,431 | 2,090,642 | |
Intangible assets, net | $ 2,309,481 | 2,433,552 | $ 2,785,651 |
Customer Relationships | |||
Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 20 years | ||
Amortizable intangible assets, amortization method | Accelerated | ||
Amortizable intangible assets, cost | $ 573,867 | ||
Amortizable intangible assets, accumulated amortization | 357,365 | ||
Amortizable intangible assets, net carrying amount | $ 216,502 | 241,811 | |
Licensing Agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 24 years | ||
Amortizable intangible assets, amortization method | Accelerated and straight-line | ||
Amortizable intangible assets, cost | $ 179,972 | ||
Amortizable intangible assets, accumulated amortization | 91,128 | ||
Amortizable intangible assets, net carrying amount | $ 88,844 | 96,736 | |
Other Intangible Assets | |||
Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 11 years | ||
Amortizable intangible assets, amortization method | Straight-line | ||
Amortizable intangible assets, cost | $ 5,804 | ||
Amortizable intangible assets, accumulated amortization | 2,100 | ||
Amortizable intangible assets, net carrying amount | $ 3,704 | $ 4,363 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 03, 2015 | Oct. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 7.3 | $ 22.5 |
Estimated Amortization Expense
Estimated Amortization Expense (Detail) $ in Millions | Oct. 03, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated amortization expense, 2015 | $ 29.9 |
Estimated amortization expense, 2016 | 28.5 |
Estimated amortization expense, 2017 | 27.4 |
Estimated amortization expense, 2018 | 26.9 |
Estimated amortization expense, 2019 | $ 26.3 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) $ in Thousands | 9 Months Ended |
Oct. 03, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 1,824,956 |
Currency translation | (24,948) |
Goodwill, ending balance | 1,800,008 |
Outdoor & Action Sports | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,389,453 |
Currency translation | (20,410) |
Goodwill, ending balance | 1,369,043 |
Jeanswear | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 219,442 |
Currency translation | (4,538) |
Goodwill, ending balance | 214,904 |
Imagewear | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 58,747 |
Currency translation | |
Goodwill, ending balance | $ 58,747 |
Sportswear | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 157,314 |
Currency translation | |
Goodwill, ending balance | $ 157,314 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 9 Months Ended |
Oct. 03, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill impairment charges | $ 0 |
Outdoor & Action Sports | |
Goodwill [Line Items] | |
Cumulative impairment charges | 43,400,000 |
Sportswear | |
Goodwill [Line Items] | |
Cumulative impairment charges | $ 58,500,000 |
Components of Pension Cost (Det
Components of Pension Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | $ 7,305 | $ 6,046 | $ 21,984 | $ 18,228 |
Interest cost on projected benefit obligations | 19,415 | 20,387 | 58,229 | 61,180 |
Expected return on plan assets | (27,784) | (22,682) | (83,334) | (68,060) |
Amortization of deferred amounts, Net deferred actuarial losses | 15,493 | 9,385 | 46,485 | 28,158 |
Amortization of deferred amounts, Deferred prior service costs | 760 | 1,361 | 2,281 | 4,085 |
Net periodic pension cost | $ 15,189 | $ 14,497 | $ 45,645 | $ 43,591 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 03, 2015 | Oct. 03, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plan contributed | $ 270 | |
Defined benefit pension plan additional contributions during the remainder of the year | 3 | |
Defined Contribution Plan, Discretionary Contribution Amount | 250 | |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement charge related to recognition of deferred actuarial losses | $ 2.4 | $ 4 |
Capital and Accumulated Other45
Capital and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | |
Class of Stock [Line Items] | |||
Common Stock, shares, purchased | 10,000,000 | ||
Common Stock, value, purchased | $ 730.1 | ||
Treasury shares restored as unissued status | 10,100,000 | ||
Treasury shares | 1,900 | 0 | 0 |
Common Stock, stated value | $ 0.25 | $ 0.25 | $ 0.25 |
Common Stock held in trust for deferred compensation plans, shares | 25,700 | ||
Common Stock held in trust for deferred compensation plans | $ 1.8 |
Shares Held for Deferred Compen
Shares Held for Deferred Compensation Plans (Detail) - USD ($) $ in Millions | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Schedule of Deferred Compensation Plans [Line Items] | |||
Shares held for deferred compensation plans | 560,049 | 637,504 | 640,404 |
Cost of shares held for deferred compensation plans | $ 6.7 | $ 7.7 | $ 7.6 |
Deferred Components of OCI Repo
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jul. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Dec. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Foreign currency translation | $ (585,275) | $ (356,941) | $ (161,259) | |||
Defined benefit pension plans | (348,537) | (377,134) | (257,962) | |||
Derivative financial instruments | 35,037 | 31,389 | 324 | |||
Marketable securities | 414 | 662 | ||||
Accumulated other comprehensive income (loss) | $ (898,775) | $ (913,626) | $ (702,272) | $ (418,235) | $ (232,212) | $ (211,720) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss), Net of Related Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (913,626) | $ (232,212) | $ (702,272) | $ (211,720) |
Other comprehensive income (loss) before reclassifications | 17,478 | (200,085) | (196,109) | (241,625) |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,627) | 14,062 | (394) | 35,110 |
Net other comprehensive income (loss) | 14,851 | (186,023) | (196,503) | (206,515) |
Ending balance | (898,775) | (418,235) | (898,775) | (418,235) |
Accumulated Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (599,297) | 70,525 | (356,941) | 106,647 |
Other comprehensive income (loss) before reclassifications | 14,022 | (231,784) | (228,334) | (267,906) |
Net other comprehensive income (loss) | 14,022 | (231,784) | (228,334) | (267,906) |
Ending balance | (585,275) | (161,259) | (585,275) | (161,259) |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (360,125) | (264,187) | (377,134) | (277,451) |
Amounts reclassified from accumulated other comprehensive income (loss) | 11,588 | 6,225 | 28,597 | 19,489 |
Net other comprehensive income (loss) | 11,588 | 6,225 | 28,597 | 19,489 |
Ending balance | (348,537) | (257,962) | (348,537) | (257,962) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 45,796 | (38,684) | 31,389 | (41,754) |
Other comprehensive income (loss) before reclassifications | 3,456 | 31,171 | 31,925 | 26,457 |
Amounts reclassified from accumulated other comprehensive income (loss) | (14,215) | 7,837 | (28,277) | 15,621 |
Net other comprehensive income (loss) | (10,759) | 39,008 | 3,648 | 42,078 |
Ending balance | $ 35,037 | 324 | 35,037 | 324 |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 134 | 414 | 838 | |
Other comprehensive income (loss) before reclassifications | 528 | 300 | (176) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (714) | |||
Net other comprehensive income (loss) | 528 | $ (414) | (176) | |
Ending balance | $ 662 | $ 662 |
Reclassification Out of Accumul
Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net sales | $ 3,583,027 | $ 3,486,998 | $ 8,870,518 | $ 8,610,521 | |
Net deferred actuarial losses | 15,493 | 9,385 | 46,485 | 28,158 | |
Cost of goods sold | (1,883,610) | (1,818,655) | (4,630,503) | (4,464,565) | |
Deferred prior service costs | 760 | 1,361 | 2,281 | 4,085 | |
Other income (expense), net | (1,280) | (1,609) | 218 | (4,209) | |
Selling, general and administrative expenses | (1,086,282) | (1,068,710) | (3,069,688) | (2,982,656) | |
Interest expense | (22,324) | (22,555) | (67,196) | (64,530) | |
Income before income taxes | 620,830 | 610,770 | 1,202,311 | 1,192,043 | |
Tax benefit (expense) | (160,966) | (140,241) | (282,927) | (266,639) | |
Net income | 459,864 | 470,529 | 919,384 | 925,404 | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 2,627 | (14,062) | 394 | (35,110) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net deferred actuarial losses | [1] | (15,493) | (9,385) | (46,485) | (28,158) |
Deferred prior service costs | [1] | (760) | (1,361) | (2,281) | (4,085) |
Selling, general and administrative expenses | (2,400) | (3,992) | |||
Income before income taxes | (18,653) | (10,746) | (52,758) | (32,243) | |
Tax benefit (expense) | 7,065 | 4,521 | 24,161 | 12,754 | |
Net income | (11,588) | (6,225) | (28,597) | (19,489) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net sales | (22,434) | (7,657) | (51,279) | (7,539) | |
Cost of goods sold | 39,142 | (3,496) | 80,633 | (13,199) | |
Other income (expense), net | 7,541 | (730) | 20,515 | (1,945) | |
Interest expense | (1,078) | (1,028) | (3,200) | (3,051) | |
Income before income taxes | 23,171 | (12,911) | 46,669 | (25,734) | |
Tax benefit (expense) | (8,956) | 5,074 | (18,392) | 10,113 | |
Net income | $ 14,215 | $ (7,837) | 28,277 | $ (15,621) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net | 1,177 | ||||
Tax benefit (expense) | (463) | ||||
Net income | $ 714 | ||||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note G for additional details). |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |
Oct. 03, 2015 | Apr. 04, 2015 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period | 72,191 | 2,399,883 | 2,472,074 |
Exercise price of options granted | $ 74.64 | $ 75.35 | |
Share based compensation vesting period | 3 years | ||
Non employee Members of 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 | ||
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted in period | 13,671 | 442,338 | |
Award expiration period from grant date | 3 years | ||
Baseline profitability goal period | 3 years | ||
Grant date fair value of each restricted units granted | $ 74.64 | $ 75.35 | |
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 | 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 | 2 | |
TSR Adjustment Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of each restricted units granted | $ 3.78 | ||
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 | 33,000 | 37,300 | |
Number of shares of common stock to be issued for each restricted stock unit granted | 1 | 1 | |
Grant date fair value of each restricted units granted | $ 72.75 | $ 68.47 | |
Nonperformance-Based Restricted Stock Units | Non employee Members of Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted in period | 11,556 | ||
Award expiration period from grant date | 1 year | ||
Grant date fair value of each restricted units granted | $ 75.35 | ||
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 | 7,000 | 104,500 | |
Grant date fair value of each restricted units granted | $ 72.75 | $ 70.98 |
Schedule of Assumption Used and
Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Detail) - $ / shares | 3 Months Ended | |
Oct. 03, 2015 | Apr. 04, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 19.00% | 20.00% |
Expected volatility, maximum | 29.00% | 29.00% |
Weighted average expected volatility | 21.00% | 22.00% |
Dividend yield | 1.80% | 2.00% |
Risk-free interest rate, minimum | 0.10% | 0.10% |
Risk-free interest rate, maximum | 2.30% | 2.10% |
Fair value at date of grant | $ 14.21 | $ 13.71 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 years | 5 years 10 months 24 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 7 years | 7 years 6 months |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Income Taxes [Line Items] | ||
Effective income tax rate | 23.50% | 22.40% |
Net discrete tax Benefits | $ 29 | $ 17.7 |
Discrete tax expense related to effects of tax rate changes | 5 | |
Refund claims related to prior years | $ 33.7 | 4.1 |
Realization of unrecognized net tax benefits | $ 10.1 | |
Tax reduction due to discrete items | 2.40% | 1.50% |
Change in effective income tax rate without discrete items | 2.00% | |
Decrease in unrecognized tax benefits and associated interest | $ (26.1) | |
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 81.4 | |
Possible decrease in unrecognized income tax benefits | 27.3 | |
Reduction in income tax expenses | $ 21.4 |
Financial Information for Repor
Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,612,820 | $ 3,520,447 | $ 8,963,981 | $ 8,703,301 |
Operating income | 642,928 | 633,082 | 1,263,790 | 1,256,080 |
Corporate and other expenses | (70,847) | (72,865) | (204,607) | (196,507) |
Interest expense, net | (20,818) | (20,703) | (61,697) | (59,828) |
Income before income taxes | 620,830 | 610,770 | 1,202,311 | 1,192,043 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 712,495 | 704,338 | 1,468,615 | 1,448,378 |
Operating Segments | Outdoor & Action Sports | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,296,551 | 2,180,879 | 5,299,784 | 5,034,670 |
Operating income | 487,929 | 475,444 | 883,674 | 880,618 |
Operating Segments | Jeanswear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 747,869 | 750,446 | 2,055,725 | 2,046,614 |
Operating income | 158,603 | 156,998 | 395,103 | 386,401 |
Operating Segments | Imagewear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 291,540 | 292,531 | 823,224 | 805,733 |
Operating income | 41,830 | 42,855 | 118,627 | 115,944 |
Operating Segments | Sportswear | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 161,697 | 163,442 | 439,545 | 435,049 |
Operating income | 23,194 | 22,979 | 50,468 | 45,801 |
Operating Segments | Contemporary Brands | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 83,194 | 99,382 | 257,605 | 293,737 |
Operating income | 585 | 4,869 | 5,265 | 21,611 |
Operating Segments | Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31,969 | 33,767 | 88,098 | 87,498 |
Operating income | $ 354 | $ 1,193 | $ 15,478 | $ (1,997) |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Earnings per share - basic: | ||||
Net income | $ 459,864 | $ 470,529 | $ 919,384 | $ 925,404 |
Weighted average common shares outstanding | 425,208 | 430,638 | 425,273 | 432,956 |
Earnings per common share | $ 1.08 | $ 1.09 | $ 2.16 | $ 2.14 |
Earnings per share - diluted: | ||||
Net income | $ 459,864 | $ 470,529 | $ 919,384 | $ 925,404 |
Weighted average common shares outstanding | 425,208 | 430,638 | 425,273 | 432,956 |
Incremental shares from stock options and other dilutive securities | 6,252 | 6,949 | 6,818 | 7,372 |
Adjusted weighted average common shares outstanding | 431,460 | 437,587 | 432,091 | 440,328 |
Earnings per common share | $ 1.07 | $ 1.08 | $ 2.13 | $ 2.10 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share | 2.4 | 0.1 | 2.4 | 1.8 |
Performance-Based Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share | 1 | 1.3 | 1 | 1.3 |
Classes of Financial Assets and
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents, Money market funds | $ 262,374 | $ 388,635 | ||
Cash equivalents, time deposits | 54,152 | 197,303 | ||
Derivative financial instruments | 94,225 | 105,264 | $ 57,213 | |
Investment securities | 201,081 | 228,406 | ||
Other marketable securities | 5,111 | |||
Derivative financial instruments | 47,181 | 31,769 | $ 31,138 | |
Deferred compensation | 253,521 | 295,226 | ||
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 | [1] | 262,374 | 388,635 | |
Cash equivalents, time deposits | [1] | 54,152 | 197,303 | |
Investment securities | [1] | 189,261 | 208,874 | |
Other marketable securities | [1] | 5,111 | ||
Significant Other Observable Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments | [1] | 94,225 | 105,264 | |
Investment securities | [1] | 11,820 | 19,532 | |
Derivative financial instruments | [1] | 47,181 | 31,769 | |
Deferred compensation | [1] | $ 253,521 | $ 295,226 | |
[1] | There were no transfers among the levels within the fair value hierarchy during the first nine months of 2015 or the year ended December 2014. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 04, 2015 | Oct. 03, 2015 | Jan. 03, 2015 | |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||
Cash proceeds from available-for-sale securities | $ 5.9 | ||
Long-term debt, carrying values | $ 1,424.6 | $ 1,427.6 | |
Long-term debt, fair values | 1,656.7 | $ 1,684.1 | |
Other income (expense), net | |||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||
Gain recognized from sale of available-for-sale securities | $ 1.5 |
Derivative Financial Instrume58
Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Jan. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Higher derivative maturity range by months | 24 months | ||||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | $ 79,800,000 | ||||
Remaining pretax deferred net loss in Accumulated OCI | $ (28,300,000) | (28,300,000) | |||
Net deferred loss in accumulated OCI reclassified to earnings | 1,100,000 | $ 1,100,000 | 3,200,000 | $ 3,100,000 | |
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | 4,600,000 | $ 4,600,000 | |||
Interest Rate Swap Derivative Contracts In 2011 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Maturity date, notes | 2,021 | ||||
Interest Rate Swap Derivative Contracts In 2003 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Maturity date, notes | 2,033 | ||||
Foreign Currency Exchange Contract | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 2,400,000,000 | $ 1,800,000,000 | $ 2,400,000,000 | $ 1,800,000,000 | $ 1,900,000,000 |
Outstanding Derivatives on Indi
Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | $ 94,225 | $ 105,264 | $ 57,213 |
Fair value of derivatives with unrealized losses | (47,181) | (31,769) | (31,138) |
Foreign exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | 94,113 | 104,860 | 57,009 |
Fair value of derivatives with unrealized losses | (46,808) | (31,711) | (29,419) |
Foreign exchange contracts not designated as hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | 112 | 404 | 204 |
Fair value of derivatives with unrealized losses | $ (373) | $ (58) | $ (1,719) |
Fair Value of Derivative Assets
Fair Value of Derivative Assets and Liabilities in Balance Sheet (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Offsetting Assets [Line Items] | |||
Gross amounts presented in the Consolidated Balance Sheets, Derivative Asset | $ 94,225 | $ 105,264 | $ 57,213 |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Asset | (36,597) | (30,724) | (22,863) |
Net amounts | 57,628 | 74,540 | 34,350 |
Gross amounts presented in the Consolidated Balance Sheets, Derivative Liabilities | (47,181) | (31,769) | (31,138) |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Liabilities | 36,597 | 30,724 | 22,863 |
Net amounts | $ (10,584) | $ (1,045) | $ (8,275) |
Derivatives Classified as Curre
Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Other current assets | $ 85,405 | $ 84,995 | $ 41,875 |
Accrued liabilities | (40,969) | (26,968) | (25,177) |
Other assets | 8,820 | 20,269 | 15,338 |
Other liabilities | $ (6,212) | $ (4,801) | $ (5,961) |
Effects of Cash Flow Hedging in
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ 23,171 | $ (12,911) | $ 46,669 | $ (25,734) |
Foreign Currency Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivatives Recognized in OCI | 5,634 | 51,351 | 52,068 | 43,586 |
Foreign Currency Exchange Contract | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (22,434) | (7,657) | (51,279) | (7,539) |
Foreign Currency Exchange Contract | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 39,142 | (3,496) | 80,633 | (13,199) |
Foreign Currency Exchange Contract | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 7,541 | (730) | 20,515 | (1,945) |
Interest Rate Contract | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ (1,078) | $ (1,028) | $ (3,200) | $ (3,051) |
Hedges Included in Consolidated
Hedges Included in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
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 | $ 836 | $ 35 | $ (1,625) | $ (4,835) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - Dividend Declared | Oct. 20, 2015$ / shares |
Subsequent Event [Line Items] | |
Cash dividend | $ 0.37 |
Dividends payable date | Dec. 18, 2015 |
Dividends record date | Dec. 8, 2015 |