Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 28, 2017 | Jul. 02, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | V F CORP | ||
Entity Trading Symbol | VFC | ||
Entity Central Index Key | 103,379 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 414,088,853 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 20,788 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets | ||
Cash and equivalents | $ 1,227,862 | $ 944,423 |
Accounts receivable, less allowance for doubtful accounts of $21,131 in 2016 and $23,275 in 2015 | 1,197,678 | 1,289,962 |
Inventories | 1,569,325 | 1,555,360 |
Other current assets | 298,233 | 284,215 |
Current assets of discontinued operations | 0 | 89,176 |
Total current assets | 4,293,098 | 4,163,136 |
Property, plant and equipment | 939,650 | 945,491 |
Intangible assets | 1,839,698 | 1,948,611 |
Goodwill | 1,736,959 | 1,788,407 |
Other assets | 929,882 | 583,866 |
Other assets of discontinued operations | 0 | 210,031 |
Total assets | 9,739,287 | 9,639,542 |
Current liabilities | ||
Short-term borrowings | 26,029 | 449,590 |
Current portion of long-term debt | 253,689 | 3,351 |
Accounts payable | 664,644 | 680,606 |
Accrued liabilities | 841,038 | 782,148 |
Current liabilities of discontinued operations | 0 | 26,018 |
Total current liabilities | 1,785,400 | 1,941,713 |
Cash and equivalents | 2,039,180 | 1,401,820 |
Other liabilities | 973,786 | 900,256 |
Other liabilities of discontinued operations | 0 | 10,915 |
Commitments and contingencies | ||
Total liabilities | 4,798,366 | 4,254,704 |
Stockholders’ equity | ||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding in 2016 and 2015 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; 414,012,954 shares outstanding in 2016 and 426,614,274 shares outstanding in 2015 | 103,503 | 106,654 |
Additional paid-in capital | 3,333,423 | 3,192,675 |
Accumulated other comprehensive loss | (1,041,463) | (1,043,222) |
Retained earnings | 2,545,458 | 3,128,731 |
Total stockholders’ equity | 4,940,921 | 5,384,838 |
Total liabilities and stockholders’ equity | $ 9,739,287 | $ 9,639,542 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 21,131 | $ 23,275 |
Preferred Stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 |
Common Stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common Stock, shares outstanding (in shares) | 414,012,954 | 426,614,274 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 11,902,314,000 | $ 11,909,635,000 | $ 11,757,399,000 |
Royalty income | 116,689,000 | 123,020,000 | 124,331,000 |
Total revenues | 12,019,003,000 | 12,032,655,000 | 11,881,730,000 |
Costs and operating expenses | |||
Cost of goods sold | 6,196,335,000 | 6,235,699,000 | 6,112,880,000 |
Selling, general and administrative expenses | 4,243,798,000 | 4,009,029,000 | 3,970,536,000 |
Impairment of goodwill and intangible assets | 79,644,000 | 0 | 0 |
Total costs and operating expenses | 10,519,777,000 | 10,244,728,000 | 10,083,416,000 |
Operating income | 1,499,226,000 | 1,787,927,000 | 1,798,314,000 |
Interest income | 9,094,000 | 7,152,000 | 6,911,000 |
Interest expense | (94,730,000) | (88,772,000) | (86,104,000) |
Other income (expense), net | 2,001,000 | 1,028,000 | (5,545,000) |
Income from continuing operations before income taxes | 1,415,591,000 | 1,707,335,000 | 1,713,576,000 |
Income taxes | 243,064,000 | 392,204,000 | 385,827,000 |
Income from continuing operations | 1,172,527,000 | 1,315,131,000 | 1,327,749,000 |
Loss from discontinued operations, net of tax | (98,421,000) | (83,538,000) | (280,244,000) |
Net income | $ 1,074,106,000 | $ 1,231,593,000 | $ 1,047,505,000 |
Earnings per common share - basic | |||
Earnings per common share - basic, continuing operations (in USD per share) | $ 2.82 | $ 3.09 | $ 3.07 |
Earnings per common share - basic, discontinued operations (in USD per share) | (0.24) | (0.19) | (0.65) |
Total earnings per common share - basic (in USD per share) | 2.58 | 2.90 | 2.42 |
Earnings per common share - diluted | |||
Earnings per common share - diluted, continuing operations (in USD per share) | 2.78 | 3.04 | 3.02 |
Earnings per common share - diluted, discontinued operations (in USD per share) | (0.24) | (0.19) | (0.64) |
Total earnings per common share - diluted (in USD per share) | 2.54 | 2.85 | 2.38 |
Cash dividends per common share (in USD per share) | $ 1.53 | $ 1.3300 | $ 1.1075 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,074,106 | $ 1,231,593 | $ 1,047,505 |
Foreign currency translation and other | |||
Gains (losses) arising during year | (52,028) | (361,814) | (469,663) |
Less income tax effect | (24,382) | 586 | 6,075 |
Defined benefit pension plans | |||
Current year actuarial gains (losses) and plan amendments | (5,384) | (62,556) | (203,234) |
Amortization of net deferred actuarial losses | 65,212 | 61,966 | 37,518 |
Amortization of deferred prior service costs | 2,584 | 3,038 | 5,445 |
Reclassification of net actuarial loss from settlement charge | 50,922 | 4,062 | 0 |
Less income tax effect | (43,836) | (1,571) | 60,588 |
Derivative financial instruments | |||
Gains (losses) arising during year | 90,708 | 89,993 | 88,387 |
Less income tax effect | (9,672) | (34,668) | (34,736) |
Reclassification to net income for (gains) losses realized | (107,457) | (64,976) | 32,111 |
Less income tax effect | 35,092 | 25,404 | (12,619) |
Marketable securities | |||
Gains (losses) arising during year | 0 | 495 | (698) |
Less income tax effect | 0 | (195) | 274 |
Reclassification to net income for (gains) losses realized | 0 | (1,177) | 0 |
Less income tax effect | 0 | 463 | 0 |
Other comprehensive income (loss) | 1,759 | (340,950) | (490,552) |
Comprehensive income | $ 1,075,865 | $ 890,643 | $ 556,953 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Operating activities | ||||
Net income | $ 1,074,106 | $ 1,231,593 | $ 1,047,505 | |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Impairment of goodwill and intangible assets | 79,644 | 143,562 | 396,362 | |
Depreciation and amortization | 281,577 | 272,075 | 274,883 | |
Stock-based compensation | 67,762 | 73,420 | 104,313 | |
Provision for doubtful accounts | 17,283 | 12,006 | (2,198) | |
Pension expense in excess of (less than) contributions | 89,005 | (208,709) | (9,864) | |
Deferred income taxes | (71,625) | 7,088 | (78,064) | |
Loss on sale of businesses | 104,357 | 0 | 0 | |
Other, net | (15,232) | (34,784) | 4,112 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 47,102 | (124,248) | 854 | |
Inventories | (37,210) | (175,098) | (130,540) | |
Accounts payable | (9,553) | 14,225 | 69,807 | |
Income taxes | (129,574) | 4,206 | 20,293 | |
Accrued liabilities | 28,904 | (14,505) | 41,989 | |
Other assets and liabilities | (48,627) | 2,599 | 22,614 | |
Cash provided by operating activities | 1,477,919 | 1,203,430 | 1,762,066 | |
Investing activities | ||||
Capital expenditures | (175,840) | (254,501) | (234,077) | |
Proceeds from sale of businesses, net of cash sold | 115,983 | 0 | 0 | |
Software purchases | (44,226) | (63,283) | (67,943) | |
Other, net | (8,331) | (5,038) | (27,235) | |
Cash used by investing activities | (112,414) | (322,822) | (329,255) | |
Financing activities | ||||
Net (decrease) increase in short-term borrowings | (421,069) | 432,262 | 4,761 | |
Payments on long-term debt | (13,276) | (3,975) | (4,760) | |
Payment of debt issuance costs | (6,807) | (1,475) | 0 | |
Proceeds from long-term debt | 951,817 | 0 | 0 | |
Purchases of treasury stock | (1,000,468) | (732,623) | (727,795) | |
Cash dividends paid | (635,994) | (565,275) | (478,933) | |
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 48,918 | 30,871 | 34,869 | |
Cash used by financing activities | (1,076,879) | (840,215) | (1,171,858) | |
Effect of foreign currency rate changes on cash and equivalents | (6,369) | (66,683) | (65,461) | |
Net change in cash and equivalents | 282,257 | (26,290) | 195,492 | |
Cash and equivalents — beginning of year | [1] | 945,605 | 971,895 | 776,403 |
Cash and equivalents — end of year | [1] | $ 1,227,862 | $ 945,605 | $ 971,895 |
[1] | The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amount presented at December 2015 differs from cash and equivalents in the Consolidated Balance Sheet due to cash included in “Current assets of discontinued operations.” |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Dec. 28, 2013 | 440,310,370 | ||||
Beginning balance at Dec. 28, 2013 | $ 110,078 | $ 2,746,590 | $ (211,720) | $ 3,432,090 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,047,505 | 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 and other | (463,588) | ||||
Defined benefit pension plans | (99,683) | ||||
Derivative financial instruments | 73,143 | ||||
Marketable securities | (424) | ||||
Ending balance (in shares) at Jan. 03, 2015 | 432,859,891 | ||||
Ending balance at Jan. 03, 2015 | $ 108,215 | 2,993,186 | (702,272) | 3,231,753 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,231,593 | 1,231,593 | |||
Dividends on Common Stock | (565,275) | ||||
Purchases of treasury stock (in shares) | (10,036,100) | ||||
Purchase of treasury stock | $ (2,509) | (730,114) | |||
Stock-based compensation, net (in shares) | 3,790,483 | ||||
Stock-based compensation, net | $ 948 | 199,489 | (39,226) | ||
Foreign currency translation and other | (361,228) | ||||
Defined benefit pension plans | 4,939 | ||||
Derivative financial instruments | 15,753 | ||||
Marketable securities | (414) | ||||
Ending balance (in shares) at Jan. 02, 2016 | 426,614,274 | 426,614,274 | |||
Ending balance at Jan. 02, 2016 | $ 5,384,838 | $ 106,654 | 3,192,675 | (1,043,222) | 3,128,731 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,074,106 | 1,074,106 | |||
Dividends on Common Stock | (635,994) | ||||
Purchases of treasury stock (in shares) | (15,900,000) | (15,932,075) | |||
Purchase of treasury stock | $ (1,000,000) | $ (3,983) | (996,485) | ||
Stock-based compensation, net (in shares) | 3,330,755 | ||||
Stock-based compensation, net | $ 832 | 140,748 | (24,900) | ||
Foreign currency translation and other | (76,410) | ||||
Defined benefit pension plans | 69,498 | ||||
Derivative financial instruments | 8,671 | ||||
Ending balance (in shares) at Dec. 31, 2016 | 414,012,954 | 414,012,954 | |||
Ending balance at Dec. 31, 2016 | $ 4,940,921 | $ 103,503 | $ 3,333,423 | $ (1,041,463) | $ 2,545,458 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business VF Corporation (together with its subsidiaries, collectively known as “VF” or “the Company”) is a global apparel and footwear company based in the United States. VF designs, produces, procures, markets and distributes a variety of products, including jeanswear, outerwear, footwear, backpacks, luggage, sportswear, and occupational and performance apparel for consumers of all ages. Products are marketed primarily under VF-owned brand names. Basis of Presentation The consolidated financial statements and related disclosures are presented in accordance with generally accepted accounting principles in the U.S (“GAAP”). The consolidated financial statements include the accounts of VF and its controlled subsidiaries, after elimination of intercompany transactions and balances. On August 26, 2016, VF completed the sale of its Contemporary Brands coalition. As a result, VF has reported the operating results of this coalition in the loss from discontinued operations, net of tax line item in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities as of December 2015 have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheet. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note B for additional information on discontinued operations. Fiscal Year VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. All references to “ 2016 ”, “ 2015 ” and “ 2014 ” relate to the 52-week fiscal years ended December 31, 2016 and January 2, 2016 , and the 53-week fiscal year ended January 3, 2015 , respectively. Certain foreign subsidiaries report using a December 31 year-end due to local statutory requirements. Use of Estimates In preparing the consolidated financial statements in accordance with GAAP, management makes estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Foreign Currency Translation and Transaction The financial statements of most foreign subsidiaries are measured using the foreign currency as the functional currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses, and transaction gains and losses on long-term advances to foreign subsidiaries, are reported in other comprehensive income (loss) (“OCI”). Foreign currency transactions are denominated in a currency other than the functional currency of a particular entity. These transactions generally result in receivables or payables that are fixed in the foreign currency. Transaction gains or losses arise when exchange rate fluctuations either increase or decrease the functional currency cash flows from the originally recorded transaction. As discussed in Note U, VF enters into derivative contracts to manage foreign currency risk on certain of these transactions. Foreign currency transaction gains and losses reported in the Consolidated Statements of Income, net of the related hedging losses and gains, were a loss of $9.2 million in 2016 , a loss of $9.1 million in 2015 , and a gain of $5.7 million in 2014 . Cash and Equivalents Cash and equivalents are demand deposits, receivables from third-party credit card processors, and highly liquid investments that mature within three months of their purchase dates. Cash equivalents totaling $855.6 million and $535.1 million at December 2016 and 2015 , respectively, consist of money market funds and short-term time deposits. Accounts Receivable Trade accounts receivable are recorded at invoiced amounts, less estimated allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and returns as discussed below in Revenue Recognition . Royalty receivables are recorded at amounts earned based on the licensees’ sales of licensed products, subject in some cases to contractual minimum royalties due from individual licensees. VF maintains an allowance for doubtful accounts for estimated losses that will result from the inability of customers and licensees to make required payments. The allowance is determined based on review of specific customer accounts where collection is doubtful, as well as an assessment of the collectability of total receivables considering the aging of balances, historical and anticipated trends, and current economic conditions. All accounts are subject to ongoing review of ultimate collectability. Receivables are written off against the allowance when it is probable the amounts will not be recovered. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out (“FIFO”) method and is net of discounts or rebates received from vendors. Long-lived Assets, Including Intangible Assets and Goodwill Property, plant and equipment, intangible assets and goodwill are initially recorded at cost. VF capitalizes improvements to property, plant and equipment that substantially extend the useful life of the asset, and interest cost incurred during construction of major assets. Assets under capital leases are recorded at the present value of minimum lease payments. Repair and maintenance costs are expensed as incurred. Cost for acquired intangible assets represents the fair value at acquisition date, which is generally based on the present value of expected cash flows. Trademark intangible assets represent individual acquired trademarks, some of which are registered in multiple countries. Customer relationship intangible assets are based on the value of relationships with wholesale customers in place at the time of acquisition. License intangible assets relate to numerous licensing contracts, with VF as either the licensor or licensee. Goodwill represents the excess of cost of an acquired business over the fair value of net tangible assets and identifiable intangible assets acquired. Goodwill is assigned at the reporting unit level. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, ranging from 3 to 10 years for machinery and equipment and up to 40 years for buildings. Amortization expense for leasehold improvements and assets under capital leases is recognized over the shorter of their estimated useful lives or the lease terms, and is included in depreciation expense. Intangible assets determined to have indefinite lives, consisting of major trademarks and trade names, are not amortized. Other intangible assets, primarily customer relationships, contracts to license trademarks to third parties, contracts to license trademarks from third parties and trademarks determined to have a finite life, are amortized over their estimated useful lives ranging from 3 to 30 years. Amortization of intangible assets is computed using straight-line or accelerated methods consistent with the timing of the expected benefits to be received. Depreciation and amortization expense related to producing or otherwise obtaining finished goods inventories is included in cost of goods sold, and other depreciation and amortization expense is included in selling, general and administrative expenses. VF’s policy is to review property, plant and equipment and amortizable intangible assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If forecasted undiscounted cash flows to be generated by the asset are not expected to recover the asset’s carrying value, an impairment charge is recorded for the excess of the asset’s carrying value over its estimated fair value. VF’s policy is to evaluate indefinite-lived intangible assets and goodwill for possible impairment as of the beginning of the fourth quarter of each year, or whenever events or changes in circumstances indicate that the fair value of such assets may be below their carrying amount. VF may first assess qualitative factors as a basis for determining whether it is necessary to perform quantitative impairment testing. If VF determines that it is not more likely than not that the fair value of an asset or reporting unit is less than its carrying value, then no further testing is required. Otherwise, the assets must be quantitatively tested for impairment. An indefinite-lived intangible asset is quantitatively evaluated for possible impairment by comparing the estimated fair value of the asset with its carrying value. An impairment charge is recorded if the carrying value of the asset exceeds its estimated fair value. Goodwill is quantitatively evaluated for possible impairment by comparing the estimated fair value of a reporting unit with its carrying value, including the goodwill assigned to that reporting unit. An impairment charge is recorded if the carrying value of the goodwill exceeds its implied fair value. Derivative Financial Instruments Derivative financial instruments are measured at fair value in the Consolidated Balance Sheets. Unrealized gains and losses are recognized as assets and liabilities, respectively, and classified as current or noncurrent based on the derivatives’ maturity dates. The accounting for changes in the fair value of derivative instruments (i.e., gains and losses) depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. To qualify for hedge accounting treatment, all hedging relationships must be formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows of hedged transactions. VF’s hedging practices are described in Note U. VF does not use derivative instruments for trading or speculative purposes. Hedging cash flows are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. VF formally documents hedging instruments and hedging relationships at the inception of each contract. Further, at the inception of a contract and on an ongoing basis, VF assesses whether the hedging instruments are effective in offsetting the risk of the hedged transactions. Occasionally, a portion of a derivative instrument will be considered ineffective in hedging the originally identified exposure due to a decline in amount or a change in timing of the hedged exposure. In that case, hedge accounting treatment is discontinued for the ineffective portion of that hedging instrument, and any change in fair value for the ineffective portion is recognized in net income. VF also uses derivative contracts to manage foreign currency exchange risk on certain assets and liabilities. These contracts are not designated as hedges, and are measured at fair value in the Consolidated Balance Sheets with changes in fair value recognized directly in net income. The counterparties to the derivative contracts are financial institutions having at least A-rated investment grade credit ratings. To manage its credit risk, VF continually monitors the credit risks of its counterparties, limits its exposure in the aggregate and to any single counterparty, and adjusts its hedging positions as appropriate. The impact of VF’s credit risk and the credit risk of its counterparties, as well as the ability of each party to fulfill its obligations under the contracts, is considered in determining the fair value of the derivative contracts. Credit risk has not had a significant effect on the fair value of VF’s derivative contracts. VF does not have any credit risk-related contingent features or collateral requirements with its derivative contracts. Revenue Recognition Revenue is recognized when (i) there is a contract or other arrangement of sale, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured. Sales to wholesale customers are recognized when title and the risks and rewards of ownership have passed to the customer, based on the terms of sale. E-commerce sales are generally recognized when the product has been received by the customer. Sales at VF-operated and concession retail stores are recognized at the time products are purchased by consumers. Revenue from the sale of gift cards is deferred until the gift card is redeemed by the customer or the Company determines that the likelihood of redemption is remote and that it does not have a legal obligation to remit the value of the unredeemed gift card to any jurisdiction under unclaimed property regulations. Various VF brands maintain customer loyalty programs where customers earn rewards from qualifying purchases. VF recognizes revenue when (i) rewards are redeemed by the customer, (ii) points or certificates expire or (iii) a breakage factor is applied based on historical redemption patterns. Net sales reflect adjustments for estimated allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and returns. These allowances are estimated based on evaluations of specific product and customer circumstances, historical and anticipated trends and current economic conditions. Shipping and handling costs billed to customers are included in net sales. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from net sales. Royalty income is recognized as earned based on the greater of the licensees’ sales of licensed products at rates specified in the licensing contracts or contractual minimum royalty levels. Cost of Goods Sold Cost of goods sold for VF-manufactured goods includes all materials, labor and overhead costs incurred in the production process. Cost of goods sold for purchased finished goods includes the purchase costs and related overhead. In both cases, overhead includes all costs related to manufacturing or purchasing finished goods, including costs of planning, purchasing, quality control, depreciation, freight, duties, royalties paid to third parties and shrinkage. For product lines with a warranty, a provision for estimated future repair or replacement costs, based on historical and anticipated trends, is recorded when these products are sold. Selling, General and Administrative Expenses Selling, general and administrative expenses include costs of product development, selling, marketing and advertising, VF-operated retail stores, concession retail stores, warehousing, distribution, shipping and handling, licensing and administration. Advertising costs are expensed as incurred and totaled $676.4 million in 2016 , $693.4 million in 2015 and $691.2 million in 2014 . Advertising costs include cooperative advertising payments made to VF’s customers as reimbursement for their costs of advertising VF’s products, and totaled $55.8 million in 2016 , $59.3 million in 2015 and $60.2 million in 2014 . Shipping and handling costs for delivery of products to customers totaled $326.9 million in 2016 , $344.5 million in 2015 and $305.9 million in 2014 . Expenses related to royalty income, including amortization of licensed intangible assets, were $11.3 million in 2016 and $12.8 million in 2015 and 2014 . Rent Expense VF enters into noncancelable operating leases for retail stores, office space, distribution facilities and equipment. Leases for real estate typically have initial terms ranging from 3 to 15 years, generally with renewal options. Leases for equipment typically have initial terms ranging from 2 to 5 years. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. Contingent rent expense, owed when sales at individual retail store locations exceed a stated base amount, is recognized when the liability is probable. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the lease term beginning with the earlier of the lease commencement date or the date VF takes possession or control of the leased premises. The amount of the excess straight-line rent expense over scheduled payments is recorded as a deferred liability. Self-insurance VF is self-insured for a significant portion of its employee medical, workers’ compensation, vehicle, property and general liability exposures. Liabilities for self-insured exposures are accrued at the present value of amounts expected to be paid based on historical claims experience and actuarial data for forecasted settlements of claims filed and for incurred but not yet reported claims. Accruals for self-insured exposures are included in current and noncurrent liabilities based on the expected periods of payment. Excess liability insurance has been purchased to limit the amount of self-insured risk on claims. Income Taxes Income taxes are provided on pre-tax income for financial reporting purposes. Income taxes are based on amounts of taxes payable or refundable in the current year and on expected future tax consequences of events that are recognized in the consolidated financial statements in different periods than they are recognized in tax returns. As a result of timing of recognition and measurement differences between financial accounting standards and income tax laws, temporary differences arise between amounts of pre-tax financial statement income and taxable income, and between reported amounts of assets and liabilities in the Consolidated Balance Sheets and their respective tax bases. Deferred income tax assets and liabilities reported in the Consolidated Balance Sheets reflect the estimated future tax impact of these temporary differences and net operating loss and net capital loss carryforwards, based on tax rates currently enacted for the years in which the differences are expected to be settled or realized. Realization of deferred tax assets is dependent on future taxable income in specific jurisdictions. Valuation allowances are used to reduce deferred tax assets to amounts considered more likely than not to be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested. Accrued income taxes in the Consolidated Balance Sheets include unrecognized income tax benefits, along with related interest and penalties, appropriately classified as current or noncurrent. All deferred tax assets and liabilities are classified as noncurrent in the Consolidated Balance Sheets. The provision for income taxes also includes estimated interest and penalties related to uncertain tax positions. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive securities such as stock options, restricted stock and restricted stock units. Concentration of Risks VF markets products to a broad customer base throughout the world. Products are sold at a range of price points through multiple wholesale and direct-to-consumer channels. VF’s ten largest customers, all U.S.-based retailers, accounted for 21% of 2016 total revenues, and sales to VF’s largest customer accounted for 9% of 2016 total revenues. Sales are generally made on an unsecured basis under customary terms that may vary by product, channel of distribution or geographic region. VF continuously monitors the creditworthiness of its customers and has established internal policies regarding customer credit limits. The breadth of product offerings, combined with the large number and geographic diversity of its customers, limits VF’s concentration of risks. Legal and Other Contingencies Management periodically assesses liabilities and contingencies in connection with legal proceedings and other claims that may arise from time to time. When it is probable that a loss has been or will be incurred, an estimate of the loss is recorded in the consolidated financial statements. Estimates of losses are adjusted when additional information becomes available or circumstances change. A contingent liability is disclosed when there is at least a reasonable possibility that a material loss may have been incurred. Management believes that the outcome of any outstanding or pending matters, individually and in the aggregate, will not have a material adverse effect on the consolidated financial statements. Reclassifications Certain prior year amounts have been reclassified to conform with the 2016 presentation, as discussed below in Recently Adopted Accounting Standards . Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“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 became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In February 2015, the FASB issued an update to their existing consolidation model that changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In April 2015, the FASB issued new guidance related to a customer’s accounting for fees paid in a cloud computing arrangement. This guidance provides clarification on whether a cloud computing arrangement should be treated as a software license or a service contract. This guidance became effective in the first quarter of 2016, but did not impact 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. This 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 became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on stock compensation that intends to simplify and improve the accounting and statement of cash flow presentation for income taxes at settlement, forfeitures, and net settlements for withholding tax. The Company early adopted this guidance as of the beginning of the first quarter of 2016. Accordingly, VF recognized $29.3 million of excess tax benefits in our provision for income taxes, rather than paid-in capital, in 2016. Also, starting in the first quarter of 2016, the Company changed its earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method, which had a minimal impact on diluted shares. The Company has elected to continue its existing practice of estimating expected forfeitures in determining compensation cost. VF did not have any awards that were subject to the amendments regarding employee shares eligible for tax withholding, and no changes were required related to the classification of employee taxes paid for withheld shares in the Consolidated Statements of Cash Flows since VF has historically classified these within financing cash flows. The Company began to present excess tax benefits as an operating cash flow in 2016 as required by the updated guidance, and elected to retrospectively adjust 2015 and 2014 operating and financing cash flows, as follows: Statement of Cash Flows Consolidated Statement of Cash Flows (As Previously Reported) Reclassification of Tax Benefits of Stock-based Compensation Increase (Decrease) Consolidated Statement of Cash Flows (Reclassified) In thousands 2015 Cash provided by operating activities $ 1,146,510 $ 56,920 $ 1,203,430 Cash used by financing activities (783,295 ) (56,920 ) (840,215 ) 2014 Cash provided by operating activities 1,697,629 64,437 1,762,066 Cash used by financing activities (1,107,421 ) (64,437 ) (1,171,858 ) Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The standard prescribes a five-step approach to revenue recognition: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company has established a cross-functional implementation team to address the standard and has completed VF’s initial impact analysis. The new guidance is not expected to have a material impact on VF’s significant revenue streams within the wholesale, direct-to-consumer and royalty channels. VF is continuing to evaluate the impact on less significant revenue streams within those channels. The Company expects to adopt the new standard utilizing the modified retrospective method in the first quarter of 2018. In July 2015, the FASB issued an update to their accounting guidance related to inventory that changes the measurement principle from lower of cost or market to lower of cost or net realizable value. This guidance will be effective in the first quarter of 2017 with early adoption permitted, and will not impact VF’s consolidated financial statements. In January 2016, the FASB issued an update to their accounting guidance related to the recognition and measurement of certain financial instruments. This guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In February 2016, the FASB issued a new accounting standard on leasing. This new standard will require companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the significant amount of leases the Company is party to, VF expects this standard will have a material impact on VF’s Consolidated Balance Sheets but does not expect it to have a material impact on the Consolidated Statements of Income. The Company is still assessing the expected timing of adoption. In March 2016, the FASB issued an update to their accounting guidance on extinguishments of financial liabilities that exempts prepaid stored-value products, or gift cards, from the existing guidance. This updated guidance requires that gift card liabilities be subject to breakage accounting, consistent with the new revenue recognition standard discussed above. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. This guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments when there is a change in the counterparty to a derivative contract (novation). The new guidance clarifies that the novation of a derivative contract that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments that clarifies the steps required to determine bifurcation of an embedded derivative. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In June 2016, the FASB issued an update to their accounting guidance on the measurement of credit losses on financial instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. This guidance will be effective in the first quarter of 2020 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2016, the FASB issued an update to their accounting guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In October 2016, the FASB issued an update to their accounting guidance on the recognition of current and deferred income taxes for intra-entity asset transfers. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance will be effective in the first quarter of 2018 and the Company will early adopt this guidance in the first quarter of 2017 using the modified retrospective method, which requires a cumulative adjustment to retained earnings as of the beginning of the period of adoption. The Company anticipates the cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet will be a reduction in both the other assets and retained earnings line items of $234.0 million . In October 2016, the FASB issued an update to their accounting guidance that changes how a single decision maker will consider its indirect interests when performing the primary beneficiary analysis under the variable interest entity model. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents in the statement of cash flows to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. This guidance will b |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 26, 2016, VF completed the sale of its Contemporary Brands coalition to Delta Galil Industries, Ltd. for $116.9 million . The Contemporary Brands coalition included the businesses of the 7 For All Mankind ® , Splendid ® and Ella Moss ® brands (the “Businesses”) and was previously disclosed as a separate reportable segment of VF. The transaction resulted in an after-tax loss on sale of $104.4 million which is included in the loss from discontinued operations, net of tax line item in the 2016 Consolidated Statement of Income. Beginning in the second quarter of 2016, VF has reported the results of the Businesses in the loss from discontinued operations, net of tax line item in the Consolidated Statements of Income and excluded them from continuing operations and segment results. The assets and liabilities of the Businesses at December 2015 have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheet. Certain corporate overhead costs and interest expense previously allocated to the Contemporary Brands coalition for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations. In addition, goodwill and intangible asset impairment charges related to the Contemporary Brands coalition, previously excluded from the calculation of coalition profit, were reallocated to discontinued operations. These changes were applied to all periods presented. VF is providing certain support services under transition services agreements for a limited period of time. These support services did not have a material impact on VF’s 2016 Consolidated Statement of Income. The following table summarizes the major line items included in the loss from discontinued operations for each of the periods presented. 2016 2015 2014 In thousands Revenues $ 187,821 $ 344,089 $ 400,431 Cost of goods sold 85,303 158,101 175,310 Selling, general and administrative expenses 99,295 169,357 189,349 Impairment of goodwill and intangible assets — 143,562 396,362 Interest income (expense), net (109 ) (642 ) (621 ) Other income (expense), net 3 627 1 Pre-tax income (loss) from discontinued operations 3,117 (126,946 ) (361,210 ) Pre-tax loss on the disposal of discontinued operations (154,275 ) — — Total pre-tax loss from discontinued operations (151,158 ) (126,946 ) (361,210 ) Income tax benefit 52,737 43,408 80,966 Loss from discontinued operations, net of tax $ (98,421 ) $ (83,538 ) $ (280,244 ) The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. 2016 2015 In thousands Accounts receivable, net $ — $ 29,596 Inventories — 56,634 Other current assets, including cash and equivalents — 2,946 Property, plant and equipment — 42,668 Intangible assets — 164,008 Other assets — 3,355 Total assets of discontinued operations (a) $ — $ 299,207 Current portion of long-term debt $ — $ 9,928 Accounts payable — 8,988 Accrued liabilities — 7,102 Other liabilities — 10,915 Total liabilities of discontinued operations (a) $ — $ 36,933 (a) Amounts at December 2015 have been classified as current and long-term in the Consolidated Balance Sheet. The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows. The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for each of the periods presented: 2016 2015 2014 In thousands Depreciation and amortization $ 4,581 $ 17,673 $ 24,006 Capital expenditures 719 5,663 10,308 Impairment of goodwill and intangible assets — 143,562 396,362 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable 2016 2015 In thousands Trade $ 1,147,942 $ 1,240,654 Royalty and other 70,867 72,583 Total accounts receivable 1,218,809 1,313,237 Less allowance for doubtful accounts 21,131 23,275 Accounts receivable, net $ 1,197,678 $ 1,289,962 VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. This agreement was amended in January 2016 to permit up to $367.5 million of VF’s accounts receivable to be sold to the financial institution and remain outstanding at any point in time, compared to the $237.5 million limit in place at December 2015. 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 2016 and 2015 , VF sold total accounts receivable of $1,333.9 million and $1,340.9 million , respectively. As of December 2016 and 2015 , $209.5 million and $144.9 million , respectively, of the sold accounts receivable had been removed from the Consolidated Balance Sheets but remained outstanding with the financial institution. The funding fee charged by the financial institution is included in the other income (expense), net line item in the Consolidated Statements of Income, and was $3.4 million in 2016 , $1.9 million in 2015 and $1.7 million in 2014 . Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories 2016 2015 In thousands Finished products $ 1,321,511 $ 1,313,646 Work-in-process 99,536 94,355 Raw materials 148,278 147,359 Total inventories $ 1,569,325 $ 1,555,360 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment 2016 2015 In thousands Land and improvements $ 87,510 $ 93,923 Buildings and improvements 998,999 983,666 Machinery and equipment 1,288,873 1,233,656 Property, plant and equipment, at cost 2,375,382 2,311,245 Less accumulated depreciation and amortization 1,435,732 1,365,754 Property, plant and equipment, net $ 939,650 $ 945,491 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2016 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 268,417 $ 131,029 $ 137,388 License agreements 23 years Accelerated and straight-line 175,084 97,941 77,143 Trademark 16 years Straight-line 58,132 3,633 54,499 Other 10 years Straight-line 6,036 2,739 3,297 Amortizable intangible assets, net 272,327 Indefinite-lived intangible assets: Trademarks and trade names 1,567,371 Intangible assets, net $ 1,839,698 Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2015 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 275,385 $ 119,338 $ 156,047 License agreements 24 years Accelerated and straight-line 179,626 93,086 86,540 Other 11 years Straight-line 5,636 2,193 3,443 Amortizable intangible assets, net 246,030 Indefinite-lived intangible assets: Trademarks and trade names 1,702,581 Intangible assets, net $ 1,948,611 In connection with the contract renewal during the first quarter of 2016, VF determined that the trademark intangible asset related to the Rock & Republi c ® brand has a finite life. Accordingly, we reclassified the $58.1 million trademark balance from indefinite-lived intangible assets to amortizable intangible assets, and commenced amortization of the trademark over its estimated useful life of 16 years . In 2016 , VF recorded an impairment charge of $40.3 million to write-off the remaining trademark asset balance for the lucy ® brand, which is part of the Outdoor & Action Sports Coalition. VF did not record any impairment charges in 2015 or 2014 . Refer to Note T for additional information on the fair value measurements. Amortization expense (excluding impairment charges) for 2016 , 2015 and 2014 was $28.4 million , $25.1 million and $29.9 million , respectively. Estimated amortization expense for the years 2017 through 2021 is $30.7 million , $30.1 million , $29.4 million , $21.5 million and $20.5 million , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in goodwill are summarized by business segment as follows: Outdoor & Action Sports Jeanswear Imagewear Sportswear Total In thousands Balance, December 2014 $ 1,389,453 $ 219,442 $ 58,747 $ 157,314 $ 1,824,956 Currency translation (29,978 ) (6,571 ) — — (36,549 ) Balance, December 2015 1,359,475 212,871 58,747 157,314 1,788,407 Impairment charge (39,344 ) — — — (39,344 ) Currency translation (9,998 ) (2,106 ) — — (12,104 ) Balance, December 2016 $ 1,310,133 $ 210,765 $ 58,747 $ 157,314 $ 1,736,959 In 2016 , VF recorded an impairment charge of $39.3 million to write-off the remaining goodwill balance related to its lucy ® brand reporting unit, which is part of the Outdoor & Action Sports coalition. VF did not record any impairment charges in 2015 or 2014 . Refer to Note T for additional information on fair value measurements. Accumulated impairment charges for the Outdoor & Action Sports and Sportswear coalitions were $82.7 million and $58.5 million as of December 2016, respectively, and $43.4 million and $58.5 million as of December 2015, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets 2016 2015 In thousands Deferred charge (Note P) $ 276,473 $ — Computer software, net of accumulated amortization of $133,324 in 2016 and $99,069 in 2015 195,176 177,642 Investments held for deferred compensation plans (Note M) 194,362 205,283 Deferred income taxes (Note P) 42,231 39,246 Pension assets (Note M) 41,281 9,273 Deposits 36,318 36,485 Partnership stores and shop-in-shop costs, net of accumulated amortization of $110,765 in 2016 and $96,546 in 2015 35,298 45,365 Derivative financial instruments (Note U) 18,821 12,995 Other investments 11,217 10,706 Deferred line of credit issuance costs 1,545 1,596 Other 77,160 45,275 Other assets $ 929,882 $ 583,866 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Short-term Borrowings 2016 2015 In thousands Commercial paper borrowings $ — $ 423,000 International borrowing arrangements 26,029 26,590 Short-term borrowings $ 26,029 $ 449,590 In June 2016, VF entered an accession agreement to increase the existing $1.75 billion senior unsecured revolving line of credit (the “Global Credit Facility”) to $2.25 billion . The Global Credit Facility expires in April 2020 and VF may request two extensions of one year each, subject to stated terms and conditions. The Global Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a $50.0 million letter of credit sublimit. In addition, the Global Credit Facility supports VF’s U.S. commercial paper program for short-term, seasonal working capital requirements and general corporate purposes. Borrowings under the Global Credit Facility are priced at a credit spread of 80.5 basis points over the appropriate LIBOR benchmark for each currency. VF is also required to pay a facility fee to the lenders, currently equal to 7.0 basis points of the committed amount of the facility. The credit spread and facility fee are subject to adjustment based on VF’s credit ratings. The Global Credit Facility contains certain restrictive covenants, which include maintenance of a consolidated indebtedness to consolidated capitalization ratio, as defined therein, equal to or below 60% . If VF fails in the performance of any covenants, the lenders may terminate their obligation to make advances and declare any outstanding obligations to be immediately due and payable. At the end of 2016 , VF was in compliance with all covenants. VF’s commercial paper program allows for borrowings of up to $2.25 billion to the extent it has borrowing capacity under the Global Credit Facility. As of December 2016 , there were no outstanding commercial paper borrowings. Outstanding commercial paper borrowings totaled $423.0 million at December 2015 . The Global Credit Facility also had $16.1 million of outstanding standby letters of credit issued on behalf of VF as of December 2016, leaving $2.23 billion available for borrowing against this facility. VF has $120.1 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks. Borrowings under these arrangements had a weighted average interest rate of 7.2% and 6.0% at December 2016 and 2015 , respectively, excluding accepted letters of credit which are non-interest bearing to VF. Total outstanding balances under these arrangements were $26.0 million and $26.6 million at December 2016 and 2015 , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued Liabilities 2016 2015 In thousands Compensation $ 159,298 $ 169,047 Other taxes 129,340 123,051 Income taxes 70,154 59,779 Restructuring (Note W) 53,598 — Customer discounts and allowances 45,277 35,179 Advertising 43,520 56,338 Freight, duties and postage 43,247 51,447 Deferred compensation (Note M) 34,498 29,491 Interest 19,899 16,918 Derivative financial instruments (Note U) 18,574 25,776 Insurance 17,541 16,669 Product warranty claims (Note L) 12,993 13,550 Pension liabilities (Note M) 10,669 8,480 Other 182,430 176,423 Accrued liabilities $ 841,038 $ 782,148 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt 2016 2015 In thousands 5.95% notes, due 2017 $ 249,823 $ 249,586 3.50% notes, due 2021 497,128 496,566 0.625% notes, due 2023 889,760 — 6.00% notes, due 2033 292,251 291,948 6.45% notes, due 2037 346,112 345,925 Capital leases 17,795 21,146 Total long-term debt 2,292,869 1,405,171 Less current portion 253,689 3,351 Long-term debt, due beyond one year $ 2,039,180 $ 1,401,820 In September 2016, VF issued €850.0 million of 0.625% euro-denominated fixed-rate notes maturing in September 2023. Interest payments are due annually on the 2023 notes and semiannually on all other notes. All notes, along with any amounts outstanding under the Global Credit Facility (Note I), rank equally as senior unsecured obligations of VF. All notes contain customary covenants and events of default, including limitations on liens and sale-leaseback transactions and a cross-acceleration event of default. The cross-acceleration provision of the 2033 notes is triggered if more than $50.0 million of other debt is in default and has been accelerated by the lenders. For the other notes, the cross-acceleration trigger is $100.0 million . If VF fails in the performance of any covenant under the indentures that govern the respective notes, the trustee or lenders may declare the principal due and payable immediately. At the end of 2016 , VF was in compliance with all covenants. None of the long-term debt agreements contain acceleration of maturity clauses based solely on changes in credit ratings. However, if there were a change in control of VF and, as a result of the change in control, the 2017, 2021, 2023 and 2037 notes were rated below investment grade by recognized rating agencies, then VF would be obligated to repurchase those notes at 101% of the aggregate principal amount plus any accrued interest. VF may redeem its notes, in whole or in part, at a price equal to the greater of (i) 100% of the principal amount, plus accrued interest to the redemption date, or (ii) the sum of the present value of the remaining scheduled payments of principal and interest discounted to the redemption date at an adjusted treasury rate, as defined, plus 20 basis points for the 2017 and 2021 notes, 15 basis points for the 2023 and 2033 notes and 25 basis points for the 2037 notes, plus accrued interest to the redemption date. In addition, the 2021 and 2023 notes can be redeemed at 100% of the principal amount plus accrued interest to the redemption date within the three months prior to maturity. The 2017 and 2037 notes have a principal balance of $250.0 million and $350.0 million , respectively, and are recorded net of unamortized debt issuance costs. The 2021 notes have a principal balance of $500.0 million and are recorded net of unamortized original issue discount and debt issuance costs. Interest expense on these notes is recorded at an effective annual interest rate of 4.69% , including amortization of a deferred loss on an interest rate hedging contract (Note U), original issue discount and debt issuance costs. The 2023 notes have a principal balance of €850.0 million and are recorded net of unamortized original issue discount and debt issuance costs. Interest expense on these notes is recorded at an effective annual interest rate of 0.712% which includes amortization of original issue discount and debt issuance costs. The 2033 notes have a principal balance of $300.0 million and are recorded net of unamortized original issue discount and debt issuance costs. Interest expense on these notes is recorded at an effective annual interest rate of 6.19% , including amortization of a deferred gain on an interest rate hedging contract (Note U), original issue discount and debt issuance costs. Capital leases relate primarily to buildings and improvements (Note E), expire at dates through 2021 and have an effective interest rate of 5.06% . Assets under capital leases are included in property, plant and equipment at a cost of $42.7 million , less accumulated amortization of $30.3 million at the end of 2016 and $27.4 million at the end of 2015 . The scheduled payments of long-term debt and future minimum lease payments for capital leases at the end of 2016 are summarized as follows: Notes and Other Capital Leases Total In thousands 2017 $ 250,000 $ 4,504 $ 254,504 2018 — 4,504 4,504 2019 — 4,504 4,504 2020 — 4,504 4,504 2021 500,000 1,877 501,877 Thereafter 1,546,495 — 1,546,495 2,296,495 19,893 2,316,388 Less unamortized debt discount 7,630 — 7,630 Less unamortized debt issuance costs 13,791 — 13,791 Less amounts representing interest — 2,098 2,098 Total long-term debt 2,275,074 17,795 2,292,869 Less current portion 250,000 3,689 253,689 Long-term debt, due beyond one year $ 2,025,074 $ 14,106 $ 2,039,180 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities 2016 2015 In thousands Deferred income taxes (Note P) $ 220,618 $ 241,409 Deferred compensation (Note M) 198,256 223,232 Income taxes 181,629 79,975 Pension liabilities (Note M) 165,642 157,434 Deferred rent credits 89,835 84,960 Product warranty claims 49,879 49,564 Derivative financial instruments (Note U) 7,000 2,256 Other 60,927 61,426 Other liabilities $ 973,786 $ 900,256 VF accrues warranty costs at the time revenue is recognized. Product warranty costs are estimated based on historical experience and specific identification of the product requirements, which may fluctuate based on product mix. Activity relating to accrued product warranty claims is summarized as follows: 2016 2015 2014 In thousands Balance, beginning of year $ 63,114 $ 62,288 $ 57,139 Accrual for products sold during the year 12,022 16,673 20,971 Repair or replacement costs incurred (11,956 ) (14,136 ) (13,660 ) Currency translation (308 ) (1,711 ) (2,162 ) Balance, end of year 62,872 63,114 62,288 Less current portion (Note J) 12,993 13,550 14,467 Long-term portion $ 49,879 $ 49,564 $ 47,821 |
Retirement and Savings Benefit
Retirement and Savings Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Savings Benefit Plans | Retirement and Savings Benefit Plans VF has several retirement and savings benefit plans covering eligible employees. VF retains the right to curtail or discontinue any of the plans, subject to local regulations. Defined Benefit Pension Plans Defined benefit plans provide pension benefits based on participant compensation and years of service. VF sponsors a noncontributory qualified defined benefit pension plan covering most full-time U.S. employees employed before 2005 (the “U.S. qualified plan”) and an unfunded supplemental defined benefit pension plan that provides benefits in excess of limitations imposed by income tax regulations (together, the “U.S. plans”). The U.S. qualified plan is fully funded at the end of 2016 , and VF’s net underfunded status primarily relates to obligations under the unfunded U.S. nonqualified defined benefit plan. The U.S. plans comprise 92% of VF’s total defined benefit plan assets and 90% of VF’s total projected benefit obligations at December 2016 , and the remainder relates to non-U.S. defined benefit plans. The components of pension cost for VF’s defined benefit plans were as follows: 2016 2015 2014 In thousands Service cost — benefits earned during the year $ 25,839 $ 29,223 $ 24,163 Interest cost on projected benefit obligations 68,020 77,620 81,496 Expected return on plan assets (99,540 ) (111,095 ) (90,674 ) Settlement charges 50,922 4,062 — Amortization of deferred amounts: Net deferred actuarial losses 65,212 61,966 37,518 Deferred prior service costs 2,584 3,038 5,445 Total pension expense $ 113,037 $ 64,814 $ 57,948 Weighted average actuarial assumptions used to determine pension expense: Discount rate in effect for determining service cost 4.54 % 3.93 % 4.64 % Discount rate in effect for determining interest cost 3.56 % 3.93 % 4.64 % Expected long-term return on plan assets 5.81 % 6.05 % 4.73 % Rate of compensation increase 3.90 % 3.91 % 3.53 % The following provides a reconciliation of the changes in fair value of VF’s defined benefit plan assets and projected benefit obligations for each year, and the funded status at the end of each year: 2016 2015 In thousands Fair value of plan assets, beginning of year $ 1,755,374 $ 1,628,254 Actual return on plan assets 191,219 (56,624 ) VF contributions 24,031 273,520 Participant contributions 3,644 3,483 Benefits paid (286,271 ) (87,994 ) Currency translation (14,700 ) (5,265 ) Fair value of plan assets, end of year 1,673,297 1,755,374 Projected benefit obligations, beginning of year 1,912,015 1,999,947 Service cost 25,839 29,223 Interest cost 68,020 77,620 Participant contributions 3,644 3,483 Actuarial loss (gain) 100,242 (101,387 ) Benefits paid (286,271 ) (87,994 ) Plan amendments — (1,510 ) Currency translation (15,162 ) (7,367 ) Projected benefit obligations, end of year 1,808,327 1,912,015 Funded status, end of year $ (135,030 ) $ (156,641 ) Pension benefits are reported in the Consolidated Balance Sheets as a net asset or liability based on the overfunded or underfunded status of the defined benefit plans, assessed on a plan-by-plan basis. 2016 2015 In thousands Amounts included in Consolidated Balance Sheets: Noncurrent assets (Note H) $ 41,281 $ 9,273 Current liabilities (Note J) (10,669 ) (8,480 ) Noncurrent liabilities (Note L) (165,642 ) (157,434 ) Funded status $ (135,030 ) $ (156,641 ) Accumulated other comprehensive loss, pre-tax: Net deferred actuarial losses $ 476,071 $ 586,828 Deferred prior service costs 14,883 17,459 Total accumulated other comprehensive loss, pre-tax $ 490,954 $ 604,287 Accumulated benefit obligations $ 1,717,786 $ 1,827,521 Weighted average actuarial assumptions used to determine pension obligations: Discount rate 3.87 % 4.29 % Rate of compensation increase 3.78 % 3.90 % Accumulated benefit obligations at any measurement date are the present value of vested and unvested pension benefits earned, without considering projected future compensation increases. Projected benefit obligations are the present value of vested and unvested pension benefits earned, considering projected future compensation increases. At the end of fiscal 2015, the Company changed to the spot rate approach to measure service and interest costs for our defined benefit plans. Previously, the same single equivalent discount rate determined for measuring the projected benefit obligation was also used to determine service cost and interest cost. Under the new spot rate approach, the full yield curve is applied separately to cash flows for each projected benefit obligation, service cost, and interest cost for a more precise calculation. The Company accounted for this as a change in accounting estimate and, accordingly, applied the spot rate approach on a prospective basis in calculating 2016 pension expense. In 2016, the Company offered former employees in the U.S. qualified plan a one-time option to receive a distribution of their deferred vested benefits. Approximately 9,400 participants accepted a distribution, representing 66% of eligible participants and a 23% reduction in the total number of plan participants at the beginning of the year. In December 2016, the plan paid $197.1 million in lump-sum distributions to settle $224.7 million of projected benefit obligations related to these participants. VF recorded $ 50.9 million in settlement charges during 2016 to recognize the related deferred actuarial losses in accumulated OCI. VF recorded $ 4.1 million in settlement charges during 2015 , 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. Deferred actuarial gains and losses are changes in the amount of either the benefit obligation or the value of plan assets resulting from differences between expected amounts for a year using actuarial assumptions and the actual results for that year. These amounts are deferred as a component of accumulated OCI and amortized to pension expense in future years as follows: amounts in excess of 20% of projected benefit obligations at the beginning of the year are amortized over five years ; amounts between (i) 10% of the greater of projected benefit obligations or plan assets and (ii) 20% of projected benefit obligations are amortized over the expected average remaining years of service of active participants; and amounts less than the greater of 10% of projected benefit obligations or plan assets are not amortized. Deferred prior service costs related to plan amendments are also recorded in accumulated OCI and amortized to pension expense on a straight-line basis over the average remaining years of service for active employees. The estimated amounts of accumulated OCI to be amortized to pension expense in 2017 are $45.4 million of deferred actuarial losses and $2.9 million of deferred prior service costs. Management’s investment objectives are to invest plan assets in a diversified portfolio of securities to provide long-term growth, minimize the volatility of the value of plan assets relative to plan liabilities, and to ensure plan assets are sufficient to pay the benefit obligations. Investment strategies focus on diversification among multiple asset classes, a balance of long-term investment return at an acceptable level of risk and liquidity to meet benefit payments. The primary objective of the investment strategies is to more closely align plan assets with plan liabilities by utilizing dynamic asset allocation targets dependent upon changes in the plan’s funded ratio, capital market expectations and risk tolerance. Plan assets are primarily composed of common collective trust funds that invest in liquid securities diversified across equity, fixed-income, real estate and other asset classes. Fund assets are allocated among independent investment managers who have full discretion to manage their portion of the fund’s assets, subject to strategy and risk guidelines established with each manager. The overall strategy, the resulting allocations of plan assets and the performance of funds and individual investment managers are continually monitored. Derivative financial instruments may be used by investment managers for hedging purposes to gain exposure to alternative asset classes through the futures markets. There are no investments in VF debt or equity securities and no significant concentrations of security risk. The expected long-term rate of return on plan assets was based on an evaluation of the weighted average expected returns for the major asset classes in which the plans have invested. Expected returns by asset class were developed through analysis of historical market returns, current market conditions, inflation expectations and equity and credit risks. Inputs from various investment advisors on long-term capital market returns and other variables were also considered where appropriate. The fair value of investments held by VF’s defined benefit plans at December 2016 and 2015 , by asset class, is summarized below. Refer to Note T for a description of the three levels of the fair value measurement hierarchy. Total Plan Assets Fair Value Measurements Level 1 Level 2 Level 3 In thousands December 2016 Plan assets Cash equivalents $ 2,896 $ 2,896 $ — $ — Fixed income securities: U.S. Treasury and government agencies 10 — 10 — Insurance contracts 63,013 — 63,013 — Commodities 506 506 — — Total plan assets in the fair value hierarchy 66,425 $ 3,402 $ 63,023 $ — Plan assets measured at net asset value Cash equivalents 27,486 Equity securities: Domestic 134,254 International 142,772 Fixed income securities: Corporate and international bonds 1,140,894 Alternative investments 161,466 Total plan assets measured at net asset value 1,606,872 Total plan assets $ 1,673,297 Total Plan Assets Fair Value Measurements Level 1 Level 2 Level 3 In thousands December 2015 Plan assets Cash equivalents $ 2,790 $ 2,790 $ — $ — Fixed income securities: U.S. Treasury and government agencies 11 — 11 — Insurance contracts 50,856 — 50,856 — Commodities (439 ) (439 ) — — Total plan assets in the fair value hierarchy 53,218 $ 2,351 $ 50,867 $ — Plan assets measured at net asset value Cash equivalents 23,538 Equity securities: Domestic 107,190 International 179,256 Fixed income securities: Corporate and international bonds 1,232,691 Alternative investments 159,481 Total plan assets measured at net asset value 1,702,156 Total plan assets $ 1,755,374 Cash equivalents include cash held by individual investment managers of other asset classes for liquidity purposes (Level 1), and an institutional fund that invests primarily in short-term U.S. government securities measured at their daily net asset value. The fair values of insurance contracts are provided by the insurance companies and are primarily based on accumulated contributions plus returns guaranteed by the insurers. Commodities consist of derivative commodity futures contracts (Level 1). Equity and fixed-income securities generally represent institutional funds measured at their daily net asset value derived from quoted prices of the underlying investments. Alternative investments are primarily in funds of hedge funds (“FoHFs”), which are comprised of different and independent hedge funds with various investment strategies. The administrators of the FoHFs utilize unobservable inputs to calculate the net asset value of the FoHFs on a monthly basis. VF makes contributions to its defined benefit plans sufficient to meet minimum funding requirements under applicable laws, plus discretionary amounts as determined by management. VF made a discretionary contribution of $250.0 million to the U.S. qualified plan during 2015 . VF does not currently plan to make any contributions to the U.S. qualified plan during 2017 , and intends to make approximately $17.0 million of contributions to its other defined benefit plans during 2017 . The estimated future benefit payments for all of VF’s defined benefit plans are approximately $89.7 million in 2017 , $93.0 million in 2018 , $96.4 million in 2019 , $100.5 million in 2020 , $103.1 million in 2021 and $543.0 million for the years 2022 through 2026 . Other Retirement and Savings Plans VF sponsors a nonqualified retirement savings plan for employees whose contributions to a 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer a portion of their compensation and to receive matching contributions for a portion of the deferred amounts. Participants earn a return on their deferred compensation based on their selection of a hypothetical portfolio of publicly traded mutual funds, a separately managed fixed-income fund and VF Common Stock. Changes in the fair value of the participants’ hypothetical investments are recorded as an adjustment to deferred compensation liabilities and compensation expense. Expense under this plan was $1.8 million in 2016 , $2.5 million in 2015 and $5.7 million in 2014 . Deferred compensation, including accumulated earnings, is distributable in cash at participant-specified dates upon retirement, death, disability or termination of employment. VF sponsors a similar nonqualified plan that permits nonemployee members of the Board of Directors to defer their Board compensation and invest in hypothetical shares of VF Common Stock. VF also has remaining obligations under other deferred compensation plans, primarily related to acquired companies. At December 2016 , VF’s liability to participants under all deferred compensation plans was $232.8 million , of which $34.5 million was recorded in accrued liabilities (Note J) and $198.3 million was recorded in other liabilities (Note L). VF has purchased (i) publicly traded mutual funds, a separately managed fixed-income fund and VF Common Stock in the same amounts as most of the participant-directed hypothetical investments underlying the deferred compensation liabilities and (ii) variable life insurance contracts that invest in institutional funds that are substantially the same as the participant-directed hypothetical investments. These investment securities and earnings thereon (other than VF Common Stock) are intended to provide a source of funds to meet the deferred compensation obligations, and serve as an economic hedge of the financial impact of changes in deferred compensation liabilities. They are held in an irrevocable trust but are subject to claims of creditors in the event of VF’s insolvency. VF also has assets related to deferred compensation plans of acquired companies, which are primarily invested in life insurance contracts. At December 2016 , the fair value of investments held for all deferred compensation plans was $225.4 million , of which $31.0 million was recorded in other current assets and $194.4 million was recorded in other assets (Note H). The VF Common Stock purchased to match participant-directed hypothetical investments is treated as treasury stock for financial reporting purposes (Note N), which is the primary reason for the difference in carrying value of the deferred compensation assets and liabilities. Realized and unrealized gains and losses on these deferred compensation assets (other than VF Common Stock) are recorded in compensation expense in the Consolidated Statements of Income and substantially offset losses and gains resulting from changes in deferred compensation liabilities to participants. VF sponsors 401(k) plans as well as other domestic and foreign retirement and savings plans. Expense for these plans totaled $45.2 million in 2016 , $47.0 million in 2015 and $31.6 million in 2014 . |
Capital and Accumulated Other C
Capital and Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital and Accumulated Other Comprehensive Loss | Capital and Accumulated Other Comprehensive Loss Common Stock During 2016 , the Company purchased 15.9 million shares of Common Stock in open market transactions for $1.0 billion under its share repurchase program authorized by VF’s Board of Directors. These transactions were treated as treasury stock transactions. Common Stock outstanding is net of shares held in treasury which are, in substance, retired. During 2016 , 2015 and 2014 , VF restored 16.1 million , 10.1 million and 12.1 million treasury shares, respectively, to an unissued status, after which they were no longer recognized as shares held in treasury. There were no shares held in treasury at the end of 2016 , 2015 or 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 (Note M) and is treated as treasury shares for financial reporting purposes. During 2016 , the Company purchased 8,300 shares of Common Stock in open market transactions for $0.5 million . Balances related to shares held for deferred compensation plans are as follows: 2016 2015 2014 In thousands, except share amounts Shares held for deferred compensation plans 439,667 562,649 637,504 Cost of shares held for deferred compensation plans $ 5,464 $ 6,823 $ 7,724 Accumulated Other Comprehensive Loss Comprehensive income consists of net income and specified components of OCI, which relates to changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income is presented in the Consolidated Statements of Comprehensive Income. The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: 2016 2015 In thousands Foreign currency translation and other $ (794,579 ) $ (718,169 ) Defined benefit pension plans (302,697 ) (372,195 ) Derivative financial instruments 55,813 47,142 Accumulated other comprehensive loss $ (1,041,463 ) $ (1,043,222 ) The changes in accumulated OCI, net of related taxes, are as follows: Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total In thousands Balance, December 2013 $ 106,647 $ (277,451 ) $ (41,754 ) $ 838 $ (211,720 ) Other comprehensive income (loss) before reclassifications (463,588 ) (126,275 ) 53,651 (424 ) (536,636 ) Amounts reclassified from accumulated other comprehensive income (loss) — 26,592 19,492 — 46,084 Net other comprehensive income (loss) (463,588 ) (99,683 ) 73,143 (424 ) (490,552 ) Balance, December 2014 (356,941 ) (377,134 ) 31,389 414 (702,272 ) Other comprehensive income (loss) before reclassifications (361,228 ) (37,238 ) 55,325 300 (342,841 ) Amounts reclassified from accumulated other comprehensive income (loss) — 42,177 (39,572 ) (714 ) 1,891 Net other comprehensive income (loss) (361,228 ) 4,939 15,753 (414 ) (340,950 ) Balance, December 2015 (718,169 ) (372,195 ) 47,142 — (1,043,222 ) Other comprehensive income (loss) before reclassifications (76,410 ) (4,357 ) 81,036 — 269 Amounts reclassified from accumulated other comprehensive income (loss) — 73,855 (72,365 ) — 1,490 Net other comprehensive income (loss) (76,410 ) 69,498 8,671 — 1,759 Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ — $ (1,041,463 ) Reclassifications out of accumulated OCI are as follows: Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income 2016 2015 2014 In thousands Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (65,212 ) $ (61,966 ) $ (37,518 ) Deferred prior service costs (a) (2,584 ) (3,038 ) (5,445 ) Pension settlement charges Selling, general and administrative expenses (50,922 ) (4,062 ) — Total before tax (118,718 ) (69,066 ) (42,963 ) Tax benefit 44,863 26,889 16,371 Net of tax (73,855 ) (42,177 ) (26,592 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 28,798 (68,543 ) (18,071 ) Foreign exchange contracts Cost of goods sold 84,613 132,432 (8,756 ) Foreign exchange contracts Selling, general and administrative expenses (4,314 ) (1,885 ) — Foreign exchange contracts Other income (expense), net 2,864 7,267 (1,189 ) Interest rate contracts Interest expense (4,504 ) (4,295 ) (4,095 ) Total before tax 107,457 64,976 (32,111 ) Tax benefit (expense) (35,092 ) (25,404 ) 12,619 Net of tax 72,365 39,572 (19,492 ) Gains (losses) on sale of marketable securities: Other income (expense), net — 1,177 — Tax expense — (463 ) — Net of tax — 714 — Total reclassifications for the year Net of tax $ (1,490 ) $ (1,891 ) $ (46,084 ) (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note M for additional details). |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Pursuant to the amended and restated 1996 Stock Compensation Plan approved by stockholders, VF is authorized to grant nonqualified stock options, restricted stock units (“RSUs”) and restricted stock to officers, key employees and nonemployee members of VF’s Board of Directors. Substantially all stock-based compensation awards are classified as equity awards, which are accounted for in stockholders’ equity in the Consolidated Balance Sheets. On a limited basis, cash-settled stock appreciation rights are granted to employees in certain international jurisdictions. These awards are accounted for as liabilities in the Consolidated Balance Sheets and remeasured to fair value each reporting period until the award is settled. Compensation cost for all awards expected to vest is recognized over the shorter of the requisite service period or the vesting period. Awards that do not vest are forfeited. Total stock-based compensation cost and the associated income tax benefits recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, are as follows: 2016 2015 2014 In thousands Stock-based compensation cost $ 67,762 $ 73,420 $ 104,313 Income tax benefits 22,870 28,090 41,725 Stock-based compensation costs included in inventory 1,332 1,345 797 At the end of 2016 , there was $37.5 million of total unrecognized compensation cost related to all stock-based compensation arrangements that will be recognized over a weighted average period of 1 year . At the end of 2016 , there were 38,898,271 shares available for future grants of stock options and stock awards under the 1996 Stock Compensation Plan. Shares for option exercises are issued from VF’s authorized but unissued Common Stock. VF has a practice of repurchasing shares of Common Stock in the open market to offset, on a long-term basis, dilution caused by awards under equity compensation plans. Stock Options Stock options are granted with an exercise price 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 , and compensation cost is recognized ratably over the shorter of the requisite service period or the vesting period. Stock options granted to nonemployee members of VF’s Board of Directors become exercisable one year from the date of grant. All options have ten -year terms. 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: 2016 2015 2014 Expected volatility 21% to 29% 19% to 29% 23% to 29% Weighted average expected volatility 24% 22% 26% Expected term (in years) 6.3 to 7.6 5.9 to 7.5 5.5 to 7.3 Weighted average dividend yield 2.2% 2.0% 2.1% Risk-free interest rate 0.4% to 1.7% 0.1% to 2.3% 0.1% to 2.7% Weighted average fair value at date of grant $12.08 $13.72 $12.01 Expected volatility over the contractual term of an option was based on a combination of the implied volatility from publicly traded options on VF Common Stock and the historical volatility of VF Common Stock. The expected term represents the period of time over which vested options are expected to be outstanding before exercise. VF used historical data to estimate option exercise behaviors and to estimate the number of options that would vest. Groups of employees that have historically exhibited similar option exercise behaviors were considered separately in estimating the expected term for each employee group. Dividend yield represents expected dividends on VF Common Stock for the contractual life of the options. Risk-free interest rates for the periods during the contractual life of the option were the implied yields at the date of grant from the U.S. Treasury zero coupon yield curve. Stock option activity for 2016 is summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 2015 14,715,410 $ 41.73 Granted 3,132,609 61.31 Exercised (2,515,180 ) 28.47 Forfeited/cancelled (552,656 ) 62.04 Outstanding, December 2016 14,780,183 47.38 6.4 $ 180,400 Exercisable, December 2016 9,694,433 38.37 5.3 $ 180,394 The total fair value of stock options that vested during 2016 , 2015 and 2014 was $26.7 million , $25.9 million and $22.6 million , respectively. The total intrinsic value of stock options exercised during 2016 , 2015 and 2014 was $86.6 million , $132.8 million and $143.7 million , respectively. Restricted Stock Units VF grants performance-based RSUs that enable employees to receive shares of VF Common Stock at the end of a three -year period. Each RSU has a potential final payout ranging from zero to two shares of VF Common Stock. The number of shares earned by participants, if any, is based on achievement of a three -year baseline profitability goal and annually established performance goals set by the Compensation Committee of the Board of Directors. Shares are issued to participants in the year following the conclusion of each three -year performance period. The actual number of shares 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 was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $4.48 , $3.78 and $1.41 per share for the 2016 , 2015 and 2014 RSU grants, respectively. VF also grants nonperformance-based RSUs to certain key employees in international jurisdictions and to nonemployee members of the Board of Directors. Each RSU entitles the holder to one share of VF Common Stock. The employee RSUs generally vest four years from the date of grant. The RSUs granted to nonemployee members of the Board of Directors vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. Dividend equivalents on the RSUs accrue without compounding and are payable in additional shares of VF Common Stock when the RSUs vest. Dividend equivalents are subject to the same risk of forfeiture as the RSUs. RSU activity for 2016 is summarized as follows: Performance-based Nonperformance-based Number Outstanding Weighted Average Grant Date Fair Value Number Outstanding Weighted Average Grant Date Fair Value Outstanding, December 2015 1,649,630 $ 55.18 274,856 $ 49.64 Granted 605,658 61.31 82,113 61.83 Issued as Common Stock (672,883 ) 40.64 (25,556 ) 53.19 Forfeited/cancelled (87,780 ) 64.15 (32,500 ) 48.95 Outstanding, December 2016 1,494,625 63.68 298,913 52.76 Vested, December 2016 924,326 61.50 13,013 61.29 The weighted average fair value of performance-based RSUs granted during 2016 , 2015 and 2014 was $61.31 , $75.33 and $56.86 per share, respectively, which was equal to the fair market value of the underlying VF Common Stock on each grant date. The total fair market value of awards outstanding at the end of 2016 was $79.7 million . Awards earned and vested for the three -year performance period ended in 2016 and distributable in early 2017 totaled 480,855 shares of VF Common Stock having a value of $24.3 million , as approved by the Compensation Committee of the Board of Directors. Similarly, 1,067,426 shares of VF Common Stock having a value of $61.9 million were earned for the performance period ended in 2015 , and 1,290,354 shares of VF Common Stock having a value of $88.4 million were earned for the performance period ended in 2014 . The weighted average fair value of nonperformance-based RSUs granted during 2016 , 2015 and 2014 was $61.83 , $71.17 and $58.00 per share, respectively, which was equal to the fair market value of the underlying VF Common Stock on each grant date. The total market value of awards outstanding at the end of 2016 was $15.9 million . Restricted Stock VF grants restricted shares of VF Common Stock to certain members of management. The fair value of the restricted shares, equal to the fair market value of VF Common Stock at the grant date, is recognized ratably over the vesting period. Restricted shares vest over periods of up to five years from the date of grant. Dividends accumulate in the form of additional restricted shares and are subject to the same risk of forfeiture as the restricted stock. Restricted stock activity for 2016 is summarized below: Nonvested Shares Outstanding Weighted Average Grant Date Fair Value Nonvested shares, December 2015 594,637 $ 50.73 Granted 128,737 61.66 Dividend equivalents 15,931 59.85 Vested (72,862 ) 43.87 Forfeited (43,751 ) 58.83 Nonvested shares, December 2016 622,692 53.45 Nonvested shares of restricted stock had a market value of $33.2 million at the end of 2016 . The market value of the shares that vested during 2016 , 2015 and 2014 was $3.9 million , $14.1 million and $20.1 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes was computed based on the following amounts of income from continuing operations before income taxes: 2016 2015 2014 In thousands Domestic $ 404,878 $ 853,630 $ 815,081 Foreign 1,010,713 853,705 898,495 Income before income taxes $ 1,415,591 $ 1,707,335 $ 1,713,576 The provision for income taxes consisted of: 2016 2015 2014 In thousands Current: Federal $ 150,428 $ 234,325 $ 280,999 Foreign 124,871 113,812 138,552 State 39,390 36,979 44,340 314,689 385,116 463,891 Deferred: Federal and state (63,610 ) 401 (78,362 ) Foreign (8,015 ) 6,687 298 Income taxes $ 243,064 $ 392,204 $ 385,827 The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense reported in the consolidated financial statements are as follows: 2016 2015 2014 In thousands Tax at federal statutory rate $ 495,457 $ 597,567 $ 599,752 State income taxes, net of federal tax benefit 25,783 23,917 29,118 Foreign rate differences (271,198 ) (202,420 ) (234,773 ) Stock compensation (federal) (26,553 ) — — Other 19,575 (26,860 ) (8,270 ) Income taxes $ 243,064 $ 392,204 $ 385,827 Income tax expense includes tax benefits of $19.4 million , $40.5 million and $14.7 million in 2016 , 2015 and 2014 , respectively, from favorable audit outcomes on certain tax matters and from expiration of statutes of limitations. On January 4, 2016, VF sold certain intellectual property rights among various subsidiaries, which more closely aligns the intellectual property rights for certain foreign operations with the respective business activities of those operations, consistent with how the intellectual property is used and developed within the business. The sale of these intellectual property rights was classified as an intra-entity transaction under GAAP, and as such, the corresponding gain has been eliminated from the consolidated financial statements, and the tax impact of the gain was established at the transaction date as a deferred charge of $291.1 million within the other assets line item on the Consolidated Balance Sheet (Note H). The deferred charge is being amortized as a component of income tax expense over twenty years, and $14.6 million of the deferred charge was recorded in the income taxes line item in the Consolidated Statement of Income in 2016. VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium’s excess profit tax regime. This lower rate, when compared with the country’s statutory rate, resulted in an income tax reduction of $14.9 million ( $0.03 per diluted share) in 2014 . In February 2015, the European Union Commission (“EU”) opened a state aid investigation into Belgium’s rulings. On January 11, 2016, the EU announced its decision that these rulings were illegal and ordered that tax benefits granted under these rulings should be collected from the affected companies, including VF. On March 22, 2016, the Belgium government filed an appeal seeking annulment of the EU decision. Additionally, on June 21, 2016, VF Europe BVBA filed its own application for annulment of the EU decision. Both of the listed requests for annulment remain open and unresolved. On December 22, 2016, Belgium adopted a law which entitled the Belgium tax authorities to issue tax assessments, and demand timely payments from companies which benefited from the excess profits regime. On January 10, 2017, VF Europe BVBA received an assessment for €31.9 million tax and interest related to excess profits benefits received in prior years. VF Europe BVBA remitted €31.9 million ( $33.9 million ) on January 13, 2017, which will be recorded as an income tax receivable in 2017 based on the expected success of the aforementioned requests for annulment. If this matter is adversely resolved, these amounts will not be collected by VF. In addition, VF has been granted a lower effective income tax rate on taxable earnings in another foreign jurisdiction for the years 2010 through 2019. This lower rate, when compared with the country’s statutory rate, resulted in income tax reductions of $12.0 million ( $0.03 per diluted share) in 2016 , $3.2 million ( $0.01 per diluted share) in 2015 and $6.0 million ( $0.01 per diluted share) in 2014 . Deferred income tax assets and liabilities consisted of the following: 2016 2015 In thousands Deferred income tax assets: Inventories $ 40,468 $ 38,897 Deferred compensation 88,249 96,397 Other employee benefits 79,834 88,359 Stock compensation 69,010 67,551 Other accrued expenses 168,908 154,337 Operating loss carryforwards 152,587 139,634 Gross deferred income tax assets 599,056 585,175 Valuation allowances (114,990 ) (100,951 ) Net deferred income tax assets 484,066 484,224 Deferred income tax liabilities: Depreciation 33,919 27,756 Intangible assets 569,767 591,615 Other deferred tax liabilities 58,767 67,016 Deferred income tax liabilities 662,453 686,387 Net deferred income tax assets (liabilities) $ (178,387 ) $ (202,163 ) Amounts included in the Consolidated Balance Sheets: Noncurrent assets (Note H) $ 42,231 $ 39,246 Noncurrent liabilities (Note L) (220,618 ) (241,409 ) $ (178,387 ) $ (202,163 ) As of the end of 2016 , VF has not provided deferred taxes on $4.4 billion of undistributed earnings from international subsidiaries where the earnings are considered to be permanently reinvested. VF’s intent is to continue to reinvest these earnings to support the strategic priority for growth in international markets. If management decides at a later date to repatriate these funds to the U.S., VF would be required to provide taxes on these amounts based on applicable U.S. tax rates, net of foreign taxes already paid. VF has not determined the deferred tax liability associated with these undistributed earnings, as such determination is not practicable. VF has potential tax benefits totaling $121.3 million for foreign operating loss carryforwards, of which $117.0 million have an unlimited carryforward life. In addition, there are $2.1 million of potential tax benefits for federal operating loss carryforwards that expire between 2017 and 2020 , and $29.2 million of potential tax benefits for state operating loss and credit carryforwards that expire between 2017 and 2036 . A valuation allowance has been provided where it is more likely than not that the deferred tax assets related to those operating loss carryforwards will not be realized. Valuation allowances totaled $91.3 million for available foreign operating loss carryforwards, $16.9 million for available state operating loss and credit carryforwards, and $6.8 million for other foreign deferred income tax assets. During 2016 , VF had a net increase in valuation allowances of $4.5 million related to state operating loss and credit carryforwards and an increase of $9.5 million related to foreign operating loss carryforwards and other foreign deferred tax assets, inclusive of foreign currency effects. A reconciliation of the change in the accrual for unrecognized income tax benefits is as follows: Unrecognized Income Tax Benefits Accrued Interest and Penalties Unrecognized Income Tax Benefits Including Interest and Penalties In thousands Balance, December 2013 $ 118,514 $ 17,474 $ 135,988 Additions for current year tax positions 12,850 — 12,850 Additions for prior year tax positions 5,252 5,033 10,285 Reductions for prior year tax positions (12,898 ) (2,780 ) (15,678 ) Reductions due to statute expirations (9,159 ) (647 ) (9,806 ) Payments in settlement (657 ) (1,742 ) (2,399 ) Currency translation (298 ) (119 ) (417 ) Balance, December 2014 113,604 17,219 130,823 Additions for current year tax positions 13,470 — 13,470 Additions for prior year tax positions 4,396 3,188 7,584 Reductions for prior year tax positions (32,432 ) (6,350 ) (38,782 ) Reductions due to statute expirations (11,780 ) (2,528 ) (14,308 ) Payments in settlement (11,437 ) (2,065 ) (13,502 ) Currency translation (144 ) (95 ) (239 ) Balance, December 2015 75,677 9,369 85,046 Additions for current year tax positions 121,025 — 121,025 Additions for prior year tax positions 6,164 2,880 9,044 Reductions for prior year tax positions (4,798 ) (1,362 ) (6,160 ) Reductions due to statute expirations (14,985 ) (1,335 ) (16,320 ) Payments in settlement (6,108 ) (829 ) (6,937 ) Currency translation (9 ) (14 ) (23 ) Balance, December 2016 $ 176,966 $ 8,709 $ 185,675 2016 2015 In thousands Amounts included in the Consolidated Balance Sheets: Unrecognized income tax benefits, including interest and penalties $ 185,675 $ 85,046 Less deferred tax benefits 35,141 11,973 Total unrecognized tax benefits $ 150,534 $ 73,073 The unrecognized tax benefits of $150.5 million at the end of 2016 , if recognized, would reduce the annual effective tax rate. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service (“IRS”) examinations for tax years through 2012 have been effectively settled. The examination of Timberland’s 2011 tax return is ongoing. The IRS has proposed material adjustments to Timberland’s 2011 tax return that would significantly impact the timing of cash tax payments and assessment of interest charges. The Company has formally disagreed with the proposed adjustments. During 2015, VF filed a petition to the U.S. Tax Court to begin the process of resolving this matter, but it has not yet reached a resolution. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years, and has concluded that VF’s provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on VF’s consolidated financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. Management also believes that it is reasonably possible that the amount of unrecognized income tax benefits may decrease by $27.9 million within the next 12 months due to settlement of audits and expiration of statutes of limitations, $25.2 million of which would reduce income tax expense. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information VF’s businesses are grouped into product categories, and by brands within those product categories, for internal financial reporting used by management. These groupings of businesses within VF are referred to as “coalitions” and are the basis for VF’s reportable segments, as described below: • Outdoor & Action Sports High performance outdoor apparel and footwear, backpacks, handbags and technical equipment • Jeanswear Denim and casual apparel • Imagewear Occupational workwear and athletic apparel • Sportswear Fashion sportswear apparel and accessories • Other Sales of non-VF products at VF Outlet ® stores Management at each of the coalitions has direct control over and responsibility for its revenues, operating income and assets, hereinafter termed “coalition revenues,” “coalition profit” and “coalition assets,” respectively. VF management evaluates operating performance and makes investment and other decisions based on coalition revenues and coalition profit. Accounting policies used for internal management reporting at the individual coalitions are consistent with those in Note A, except as stated below. Corporate costs (other than common costs allocated to the coalitions), impairment charges and net interest expense are not controlled by coalition management and therefore are excluded from the measurement of coalition profit. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the coalitions based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the coalitions consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs) and other expenses which include a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of VF’s trademarks and miscellaneous consolidated costs. Defined benefit pension plans in the U.S. are centrally managed. The current year service cost component of pension cost is allocated to the coalitions, while the remaining pension cost components are reported in corporate and other expenses. Coalition assets, for internal management purposes, are those used directly in or resulting from the operations of each business unit, such as accounts receivable, inventories and property, plant and equipment. Corporate assets primarily include corporate facilities, investments held in trust for deferred compensation plans and information systems. Financial information for VF’s reportable segments is as follows: 2016 2015 2014 In thousands Coalition revenues: Outdoor & Action Sports $ 7,533,145 $ 7,400,446 $ 7,198,994 Jeanswear 2,737,701 2,792,244 2,801,754 Imagewear 1,103,813 1,082,565 1,104,038 Sportswear 536,302 635,056 650,203 Other 108,042 122,344 126,741 Total coalition revenues $ 12,019,003 $ 12,032,655 $ 11,881,730 Coalition profit: (a) Outdoor & Action Sports $ 1,226,208 $ 1,266,763 $ 1,312,963 Jeanswear 491,912 535,385 527,972 Imagewear 179,793 157,959 164,352 Sportswear 36,648 78,879 77,972 Other (b) (4,403 ) 15,135 (2,600 ) Total coalition profit 1,930,158 2,054,121 2,080,659 Impairment of goodwill and intangible assets (c) (79,644 ) — — Corporate and other expenses (d) (e) (349,287 ) (265,166 ) (287,890 ) Interest expense, net (f) (85,636 ) (81,620 ) (79,193 ) Income from continuing operations before income taxes $ 1,415,591 $ 1,707,335 $ 1,713,576 (a) Reflects restructuring costs in 2016 totaling $43.3 million as follows: Outdoor and Action Sports - $17.4 million ; Jeanswear - $20.4 million ; Imagewear - $1.3 million ; Sportswear - $2.9 million ; and Other - $1.3 million (Note W). (b) Reflects a $16.6 million gain in 2015 recognized on the sale of a VF Outlet ® location. (c) Represents goodwill and intangible asset impairment charges in 2016 related to the Outdoor & Action Sports coalition (Notes F, G and T). (d) Reflects a $ 50.9 million pension settlement charge (Note M) and $14.8 million in restructuring charges (Note W) in 2016. (e) Certain corporate overhead costs of $5.8 million , $11.4 million and $12.4 million in 2016, 2015 and 2014, respectively, previously allocated to the Contemporary Brands coalition for segment reporting purposes have been reallocated to continuing operations as discussed in Note B. (f) Interest expense of $2.3 million and $1.9 million in 2015 and 2014, respectively, previously allocated to the Contemporary Brands coalition for segment reporting purposes has been reallocated to continuing operations as discussed in Note B. 2016 2015 In thousands Coalition assets: Outdoor & Action Sports $ 2,424,830 $ 2,436,788 Jeanswear 943,764 951,411 Imagewear 355,707 366,062 Sportswear 130,233 140,458 Other 63,351 63,162 Total coalition assets 3,917,885 3,957,881 Cash and equivalents 1,227,862 944,423 Intangible assets and goodwill 3,576,657 3,737,018 Deferred income taxes 42,231 39,246 Corporate assets 974,652 661,767 Assets of discontinued operations — 299,207 Consolidated assets $ 9,739,287 $ 9,639,542 2016 2015 2014 In thousands Capital expenditures: (a) Outdoor & Action Sports $ 114,430 $ 166,267 $ 111,020 Jeanswear 38,802 31,844 31,586 Imagewear 5,244 6,959 6,356 Sportswear 4,944 8,771 22,814 Other 2,390 2,679 2,489 Corporate 9,311 32,318 49,504 $ 175,121 $ 248,838 $ 223,769 Depreciation and amortization expense: (b) Outdoor & Action Sports $ 138,387 $ 129,986 $ 131,166 Jeanswear 47,726 41,823 43,189 Imagewear 13,013 11,608 11,602 Sportswear 17,042 15,358 14,334 Other 3,537 4,510 5,231 Corporate 57,291 51,117 45,355 $ 276,996 $ 254,402 $ 250,877 (a) Excludes $0.7 million , $5.7 million and $10.3 million of capital expenditures related to the Contemporary Brands coalition for 2016, 2015 and 2014, respectively. These amounts are included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note B). (b) Excludes $4.6 million , $17.7 million and $24.0 million of depreciation and amortization related to the Contemporary Brands coalition for 2016, 2015 and 2014, respectively. These amounts are included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note B). Supplemental information (with revenues by geographic area based on the location of the customer) is as follows: 2016 2015 2014 In thousands Total revenues: U.S. $ 7,444,594 $ 7,631,476 $ 7,292,051 Foreign, primarily Europe 4,574,409 4,401,179 4,589,679 $ 12,019,003 $ 12,032,655 $ 11,881,730 Property, plant and equipment: U.S. $ 590,593 $ 591,981 Foreign, primarily Europe 349,057 353,510 $ 939,650 $ 945,491 No single customer accounted for 10% or more of the Company’s total revenues in 2016 , 2015 and 2014 . |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments VF is obligated under noncancelable operating leases related primarily to retail stores, office space, distribution facilities and equipment. Rent expense, net of sublease income that was not significant in any period, was included in the Consolidated Statements of Income as follows: 2016 2015 2014 In thousands Minimum rent expense $ 360,226 $ 318,402 $ 305,149 Contingent rent expense 19,549 25,467 22,399 Rent expense $ 379,775 $ 343,869 $ 327,548 Future minimum lease payments during the noncancelable lease term are $344.0 million , $272.9 million , $205.3 million , $149.7 million and $96.2 million for the years 2017 through 2021 , respectively, and $150.8 million thereafter. VF has entered into licensing agreements that provide VF rights to market products under trademarks owned by other parties. Royalties under these agreements are recognized in cost of goods sold in the Consolidated Statements of Income. Certain of these agreements contain minimum royalty and minimum advertising requirements. Future minimum royalty payments, including any required advertising payments, are $81.8 million , $106.5 million , $103.8 million , $47.3 million and $48.6 million for the years 2017 through 2021 , respectively, and $0.2 million thereafter. In the ordinary course of business, VF has entered into purchase commitments for raw materials, contract production and finished products. These agreements typically range from 2 to 6 months in duration and require total payments of $1.7 billion in 2017 and $2.7 million in 2018 . VF has entered into commitments for (i) service and maintenance agreements related to its management information systems, (ii) capital spending and (iii) advertising. Future payments under these agreements are $141.6 million , $38.9 million , $6.7 million , $4.3 million and $1.8 million for the years 2017 through 2021 , respectively, and $0.3 million thereafter. Surety bonds, customs bonds, standby letters of credit and international bank guarantees, all of which represent contingent guarantees of performance under self-insurance and other programs, totaled $122.2 million as of December 2016 . These commitments would only be drawn upon if VF were to fail to meet its claims or other obligations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share 2016 2015 2014 In thousands, except per share amounts Earnings per share — basic: Income from continuing operations $ 1,172,527 $ 1,315,131 $ 1,327,749 Weighted average common shares outstanding 416,103 425,408 432,611 Earnings per share from continuing operations $ 2.82 $ 3.09 $ 3.07 Earnings per share — diluted: Income from continuing operations $ 1,172,527 $ 1,315,131 $ 1,327,749 Weighted average common shares outstanding 416,103 425,408 432,611 Incremental shares from stock options and other dilutive securities 5,978 6,671 7,542 Adjusted weighted average common shares outstanding 422,081 432,079 440,153 Earnings per share from continuing operations $ 2.78 $ 3.04 $ 3.02 Outstanding options to purchase 5.8 million , 2.4 million and 1.4 million shares of Common Stock were excluded from the calculations of diluted earnings per share in 2016 , 2015 and 2014 , respectively, because the effect of their inclusion would have been antidilutive to those years. In addition, 0.9 million , 0.9 million and 1.1 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share in 2016 , 2015 and 2014 , respectively, because these units were not considered to be contingent outstanding shares. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements 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: Fair Value Measurement Using (a) Total Fair Value Level 1 Level 2 Level 3 In thousands December 2016 Financial assets: Cash equivalents: Money market funds $ 840,842 $ 840,842 $ — $ — Time deposits 14,774 14,774 — — Derivative financial instruments 103,340 — 103,340 — Investment securities 196,738 179,673 17,065 — Financial liabilities: Derivative financial instruments 25,574 — 25,574 — Deferred compensation 232,214 — 232,214 — December 2015 Financial assets: Cash equivalents: Money market funds $ 495,264 $ 495,264 $ — $ — Time deposits 39,813 39,813 — — Derivative financial instruments 105,791 — 105,791 — Investment securities 203,797 190,792 13,005 — Financial liabilities: Derivative financial instruments 28,032 — 28,032 — Deferred compensation 252,723 — 252,723 — (a) There were no transfers among the levels within the fair value hierarchy during 2016 or 2015 . 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 (Note M). These investments are classified as trading securities and primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets and a separately managed fixed-income fund (Level 2) with underlying investments that are valued based on quoted prices for similar assets in active markets or quoted prices in inactive markets for identical assets. Liabilities related to VF’s deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments. 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 the other income (expense), net line item in the 2015 Consolidated Statement of Income. 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 December 2016 and 2015 , their carrying values approximated their fair values. Additionally, at December 2016 and 2015 , the carrying values of VF’s long-term debt, including the current portion, were $2,292.9 million and $1,405.2 million , respectively, compared with fair values of $2,486.6 million and $1,582.5 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. Nonrecurring Fair Value Measurements Certain non-financial assets, primarily property, plant and equipment, goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. In the event an impairment is required, the asset is adjusted to fair value, using market-based assumptions. The Company recorded $9.3 million of fixed asset impairments in 2016 related to retail store assets, including $2.6 million of lucy ® retail store impairment included in restructuring charges (refer to Note W). Retail store impairment charges are recorded in the selling, general and administrative expenses line item in the Consolidated Statements of Income. There were no significant impairment charges related to property, plant and equipment in 2015 or 2014 . During the third quarter of 2016, management determined that the continued revenue and profitability decline in the Nautica ® brand, combined with a downward revision to the forecast for the remainder of the year, was a triggering event that required an interim impairment analysis of the goodwill and trademark intangible assets. The Nautica ® brand is part of the Sportswear coalition and represents substantially all of the coalition’s goodwill value. Based on the quantitative impairment analysis performed, VF determined the goodwill and trademark intangible assets of Nautica ® were not impaired. For goodwill, the fair value of the reporting unit exceeded the carrying value by 45% . The fair value of the trademark intangible asset exceeded its carrying value by a significant amount. Management concluded that there had been no triggering events affecting any other reporting units that required us to test goodwill or indefinite-lived intangible assets on an interim basis through the first nine months of 2016. Management performed its annual impairment testing of goodwill and indefinite-lived intangible assets as of the beginning of the fourth quarter of 2016 . VF elected to bypass the qualitative assessment and perform a quantitative analysis for the Reef ® reporting unit goodwill and trademark intangible asset. Management performed a qualitative analysis for all other reporting units and trademark intangible assets. Additionally, during the fourth quarter of 2016, management determined that triggering events had occurred related to the lucy ® and Licensed Sports Group reporting units, requiring quantitative testing of their goodwill and intangible assets. VF recognized impairment charges of $79.6 million in the 2016 Consolidated Statement of Income related to the lucy ® brand, of which $39.3 million related to the remaining goodwill and $40.3 million related to the remaining trademark intangible asset. No other impairment charges were recorded as a result of the 2016 quantitative analyses. No impairment charges of goodwill or intangible assets were recorded in 2015 or 2014 . Our impairment testing of goodwill, trademarks, customer relationships and license intangible assets utilizes significant unobservable inputs (Level 3) to determine fair value. The fair value of reporting units for goodwill impairment testing is determined using a combination of two valuation methods: an income approach and a market approach. The income approach is based on projected future (debt-free) cash flows that are discounted to present value. The appropriate discount rate is based on the reporting unit’s weighted average cost of capital (“WACC”) that takes market participant assumptions into consideration. For the market approach, management uses both the guideline company and similar transaction methods. The guideline company method analyzes market multiples of revenues and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for a group of comparable public companies. The market multiples used in the valuation are based on the relative strengths and weaknesses of the reporting unit compared to the selected guideline companies. Under the similar transactions method, valuation multiples are calculated utilizing actual transaction prices and revenue/EBITDA data from target companies deemed similar to the reporting unit. Management uses the income-based relief-from-royalty method to value trademark intangible assets. Under this method, revenues expected to be generated by the trademark are multiplied by a selected royalty rate. The royalty rate is selected based on consideration of i) royalty rates included in active license agreements, if applicable, ii) royalty rates received by market participants in the apparel industry, and iii) the current performance of the reporting unit. The estimated after-tax royalty revenue stream is then discounted to present value using the reporting unit’s WACC plus a spread that factors in the risk of the intangible asset. For the valuation of customer relationship and license intangible assets, management uses the multi-period excess earnings method which is a specific application of the discounted cash flows method. Under this method, VF calculates the present value of the after-tax cash flows expected to be generated by the customer relationship asset after deducting contributory asset charges. Management’s revenue and profitability forecasts used in the reporting unit and intangible asset valuations were developed in conjunction with management’s strategic plan review performed each fourth quarter, and our resulting revised outlook for business performance, and considered recent performance and trends, strategic initiatives and industry trends. Assumptions used in the valuations are similar to those that would be used by market participants performing independent valuations of these businesses. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Summary of Derivative Financial Instruments All of VF’s outstanding derivative financial instruments are forward foreign currency exchange contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. The notional amounts of outstanding derivative contracts were $2.2 billion at December 2016 and $2.4 billion at December 2015 , consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, Swedish krona, 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 2016 2015 2016 2015 In thousands Foreign currency exchange contracts designated as hedging instruments $ 103,340 $ 105,536 $ (25,292 ) $ (27,896 ) Foreign currency exchange contracts not designated as hedging instruments — 255 (282 ) (136 ) Total derivatives $ 103,340 $ 105,791 $ (25,574 ) $ (28,032 ) 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 as of December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 2016 2015 Derivative Asset Derivative Liability Derivative Asset Derivative Liability In thousands Gross amounts presented in the Consolidated Balance Sheets $ 103,340 $ (25,574 ) $ 105,791 $ (28,032 ) Gross amounts not offset in the Consolidated Balance Sheets (22,341 ) 22,341 (22,213 ) 22,213 Net amounts $ 80,999 $ (3,233 ) $ 83,578 $ (5,819 ) Derivatives are classified as current or noncurrent based on maturity dates, as follows: 2016 2015 In thousands Other current assets $ 84,519 $ 92,796 Accrued liabilities (Note J) (18,574 ) (25,776 ) Other assets (Note H) 18,821 12,995 Other liabilities (Note L) (7,000 ) (2,256 ) 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: Cash Flow Hedging Relationships Gain (Loss) on Derivatives Recognized in OCI 2016 2015 2014 In thousands Foreign currency exchange $ 90,708 $ 89,993 $ 88,387 Gain (Loss) Reclassified from Accumulated OCI into Income Location of Gain (Loss) 2016 2015 2014 In thousands Net sales $ 28,798 $ (68,543 ) $ (18,071 ) Cost of goods sold 84,613 132,432 (8,756 ) Selling, general and administrative expenses (4,314 ) (1,885 ) — Other income (expense), net 2,864 7,267 (1,189 ) Interest expense (4,504 ) (4,295 ) (4,095 ) Total $ 107,457 $ 64,976 $ (32,111 ) Derivative Contracts Not Designated as Hedge s VF uses derivative contracts to manage foreign currency exchange risk on third-party accounts receivable and payable, as well as intercompany borrowings. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net transaction gains or losses on the related assets and liabilities. Following is a summary of these derivatives included in VF’s Consolidated Statements of Income: Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income 2016 2015 2014 In thousands Foreign currency exchange Cost of goods sold $ 1,674 $ (4,179 ) $ — Foreign currency exchange Other income (expense), net 83 2,806 (707 ) Total $ 1,757 $ (1,373 ) $ (707 ) Other Derivative Information There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during 2016 , 2015 and 2014 . At December 2016 , accumulated OCI included $63.1 million of pre-tax net deferred gains for foreign exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033 , respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in accumulated OCI. The remaining pre-tax net deferred loss in accumulated OCI was $22.7 million at December 2016 , which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. During 2016 , 2015 and 2014 , VF reclassified $4.5 million , $4.3 million and $4.1 million , respectively, of net deferred losses from accumulated OCI into interest expense, and expects to reclassify $4.7 million to interest expense during the next 12 months. Net Investment Hedge The Company has designated its €850.0 million of euro-denominated fixed-rate notes as a net investment hedge of VF’s investment in certain foreign operations. Because this debt qualified as a nonderivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCI as an offset to the foreign currency translation adjustments on the hedged investments. During 2016, the Company recognized $55.9 million million of gains in OCI related to the net investment hedge transaction. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. The Company recorded no ineffectiveness from its net investment hedge during 2016. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information 2016 2015 2014 In thousands Income taxes paid, net of refunds $ 434,795 $ 339,010 $ 370,202 Interest paid, net of amounts capitalized 87,521 83,850 82,280 Noncash transactions: Property, plant and equipment expenditures included in accounts payable or accrued liabilities 28,103 9,445 9,529 Computer software costs included in accounts payable or accrued liabilities 15,143 4,394 27,555 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In light of the 2016 divestiture of our Contemporary Brands coalition and the ongoing strategic review of our Licensed Sports Group business, the Company reassessed how to best optimize and leverage VF’s strengths to create a more efficient and agile organization. In the fourth quarter of 2016, VF leadership approved restructuring charges related to cost alignment initiatives that are expected to improve profitability in 2017 and beyond. The Company does not expect to recognize additional costs relating to these actions, and expects substantially all of the restructuring activities to be completed by the end of 2017. Of the $58.1 million of restructuring charges recognized in 2016, $34.8 million are reflected in selling, general and administrative expenses and $23.3 million in cost of goods sold. The components of the restructuring charges in 2016 are as follows: 2016 Charges In thousands Severance and employee-related benefits $ 53,387 Asset impairments 3,394 Other 1,310 Total restructuring charges $ 58,091 Restructuring costs by business segment are as follows: 2016 Charges In thousands Outdoor & Action Sports $ 17,401 Jeanswear 20,357 Imagewear 1,308 Sportswear 2,921 Other 1,277 Corporate 14,827 Total $ 58,091 The activity in the restructuring accrual for December 2016 is as follows: Severance Other Total In thousands Amounts recorded in accrued liabilities at December 2015 $ — $ — $ — Charges 53,387 1,310 54,697 Cash payments 667 432 1,099 Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 14, 2017, VF’s Board of Directors declared a quarterly cash dividend of $0.42 per share, payable on March 20, 2017 to shareholders of record on March 10, 2017 . The Board of Directors also granted approximately 3,300,000 stock options, 600,000 performance-based RSUs, 30,000 nonperformance-based RSUs and 77,000 shares of restricted VF Common Stock at market value. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) First Second Third Fourth (a) Full In thousands, except per share amounts 2016 Total revenues $ 2,764,944 $ 2,445,259 $ 3,488,226 $ 3,320,574 $ 12,019,003 Operating income 332,253 211,424 635,428 320,121 1,499,226 Income from continuing operations 256,866 148,294 503,034 264,333 1,172,527 Income (loss) from discontinued operations, net of tax 3,403 (97,279 ) (4,545 ) — (98,421 ) Net income $ 260,269 $ 51,015 $ 498,489 $ 264,333 $ 1,074,106 Earnings per common share - basic (b) Continuing operations $ 0.61 $ 0.35 $ 1.22 $ 0.64 $ 2.82 Discontinued operations 0.01 (0.23 ) (0.01 ) — (0.24 ) Total earnings per common share - basic $ 0.62 $ 0.12 $ 1.21 $ 0.64 $ 2.58 Earnings per common share - diluted (b) Continuing operations $ 0.60 $ 0.35 $ 1.20 $ 0.63 $ 2.78 Discontinued operations 0.01 (0.23 ) (0.01 ) — (0.24 ) Total earnings per common share - diluted $ 0.61 $ 0.12 $ 1.19 $ 0.63 $ 2.54 Dividends per common share $ 0.37 $ 0.37 $ 0.37 $ 0.42 $ 1.53 2015 Total revenues $ 2,749,764 $ 2,426,986 $ 3,529,626 $ 3,326,279 $ 12,032,655 Operating income 391,349 218,980 639,563 538,035 1,787,927 Income from continuing operations 283,125 167,842 457,635 406,529 1,315,131 Income (loss) from discontinued operations, net of tax 5,584 2,969 2,229 (94,320 ) (83,538 ) Net income $ 288,709 $ 170,811 $ 459,864 $ 312,209 $ 1,231,593 Earnings per common share - basic (b) Continuing operations $ 0.67 $ 0.39 $ 1.08 $ 0.95 $ 3.09 Discontinued operations 0.01 0.01 — (0.22 ) (0.19 ) Total earnings per common share - basic $ 0.68 $ 0.40 $ 1.08 $ 0.73 $ 2.90 Earnings per common share - diluted (b) Continuing operations $ 0.66 $ 0.39 $ 1.06 $ 0.94 $ 3.04 Discontinued operations 0.01 0.01 0.01 (0.22 ) (0.19 ) Total earnings per common share - diluted $ 0.67 $ 0.40 $ 1.07 $ 0.72 $ 2.85 Dividends per common share $ 0.32 $ 0.32 $ 0.32 $ 0.37 $ 1.33 (a) VF recorded the following charges during the fourth quarter of 2016: restructuring — $58.1 million ( $43.7 million after-tax), goodwill and intangible asset impairment charges — $79.6 million ( $64.1 million after-tax) and pension settlement charge — $50.9 million ( $31.4 million after-tax). (b) Per share amounts are computed independently for each quarter presented using unrounded numbers. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and rounding. |
Schedule II _ Valuation and Qua
Schedule II — Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II — Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts COL. A COL. B COL. C COL. D COL. E ADDITIONS Description Balance at Beginning of Period (1) Charged to Costs and Expenses (2) Charged to Other Accounts Deductions Balance at End of Period In thousands Fiscal year ended December 2016 Allowance for doubtful accounts $ 23,275 $ 17,263 $ — $ 19,407 (A) $ 21,131 Other accounts receivable allowances $ 187,530 1,528,313 — 1,528,169 (B) $ 187,674 Valuation allowance for deferred income tax assets $ 100,951 — 14,039 (C) — $ 114,990 Fiscal year ended December 2015 Allowance for doubtful accounts $ 25,458 12,048 — 14,231 (A) $ 23,275 Other accounts receivable allowances $ 177,535 1,378,288 — 1,368,293 (B) $ 187,530 Valuation allowance for deferred income tax assets $ 96,802 — 4,149 (C) — $ 100,951 Fiscal year ended December 2014 Allowance for doubtful accounts $ 43,338 (2,036 ) — 15,844 (A) $ 25,458 Other accounts receivable allowances $ 160,789 1,261,684 — 1,244,938 (B) $ 177,535 Valuation allowance for deferred income tax assets $ 107,521 — (10,719 ) (C) — $ 96,802 (A) Deductions include accounts written off, net of recoveries, and the effects of foreign currency translation. (B) Deductions include discounts, markdowns and returns, and the effects of foreign currency translation. (C) Additions relate to circumstances where it is more likely than not that deferred income tax assets will not be realized and the effects of foreign currency translation. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and related disclosures are presented in accordance with generally accepted accounting principles in the U.S (“GAAP”). The consolidated financial statements include the accounts of VF and its controlled subsidiaries, after elimination of intercompany transactions and balances. |
Fiscal Year | Fiscal Year VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. All references to “ 2016 ”, “ 2015 ” and “ 2014 ” relate to the 52-week fiscal years ended December 31, 2016 and January 2, 2016 , and the 53-week fiscal year ended January 3, 2015 , respectively. Certain foreign subsidiaries report using a December 31 year-end due to local statutory requirements. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in accordance with GAAP, management makes estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. |
Foreign Currency Translation and Transaction | Foreign Currency Translation and Transaction The financial statements of most foreign subsidiaries are measured using the foreign currency as the functional currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses, and transaction gains and losses on long-term advances to foreign subsidiaries, are reported in other comprehensive income (loss) (“OCI”). Foreign currency transactions are denominated in a currency other than the functional currency of a particular entity. These transactions generally result in receivables or payables that are fixed in the foreign currency. Transaction gains or losses arise when exchange rate fluctuations either increase or decrease the functional currency cash flows from the originally recorded transaction. As discussed in Note U, VF enters into derivative contracts to manage foreign currency risk on certain of these transactions. Foreign currency transaction gains and losses reported in the Consolidated Statements of Income, net of the related hedging losses and gains, were a loss of $9.2 million in 2016 , a loss of $9.1 million in 2015 , and a gain of $5.7 million in 2014 . |
Cash and Equivalents | Cash and Equivalents Cash and equivalents are demand deposits, receivables from third-party credit card processors, and highly liquid investments that mature within three months of their purchase dates. Cash equivalents totaling $855.6 million and $535.1 million at December 2016 and 2015 , respectively, consist of money market funds and short-term time deposits. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at invoiced amounts, less estimated allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and returns as discussed below in Revenue Recognition . Royalty receivables are recorded at amounts earned based on the licensees’ sales of licensed products, subject in some cases to contractual minimum royalties due from individual licensees. VF maintains an allowance for doubtful accounts for estimated losses that will result from the inability of customers and licensees to make required payments. The allowance is determined based on review of specific customer accounts where collection is doubtful, as well as an assessment of the collectability of total receivables considering the aging of balances, historical and anticipated trends, and current economic conditions. All accounts are subject to ongoing review of ultimate collectability. Receivables are written off against the allowance when it is probable the amounts will not be recovered. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out (“FIFO”) method and is net of discounts or rebates received from vendors. |
Long-lived Assets, Including Intangible Assets and Goodwill | Long-lived Assets, Including Intangible Assets and Goodwill Property, plant and equipment, intangible assets and goodwill are initially recorded at cost. VF capitalizes improvements to property, plant and equipment that substantially extend the useful life of the asset, and interest cost incurred during construction of major assets. Assets under capital leases are recorded at the present value of minimum lease payments. Repair and maintenance costs are expensed as incurred. Cost for acquired intangible assets represents the fair value at acquisition date, which is generally based on the present value of expected cash flows. Trademark intangible assets represent individual acquired trademarks, some of which are registered in multiple countries. Customer relationship intangible assets are based on the value of relationships with wholesale customers in place at the time of acquisition. License intangible assets relate to numerous licensing contracts, with VF as either the licensor or licensee. Goodwill represents the excess of cost of an acquired business over the fair value of net tangible assets and identifiable intangible assets acquired. Goodwill is assigned at the reporting unit level. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, ranging from 3 to 10 years for machinery and equipment and up to 40 years for buildings. Amortization expense for leasehold improvements and assets under capital leases is recognized over the shorter of their estimated useful lives or the lease terms, and is included in depreciation expense. Intangible assets determined to have indefinite lives, consisting of major trademarks and trade names, are not amortized. Other intangible assets, primarily customer relationships, contracts to license trademarks to third parties, contracts to license trademarks from third parties and trademarks determined to have a finite life, are amortized over their estimated useful lives ranging from 3 to 30 years. Amortization of intangible assets is computed using straight-line or accelerated methods consistent with the timing of the expected benefits to be received. Depreciation and amortization expense related to producing or otherwise obtaining finished goods inventories is included in cost of goods sold, and other depreciation and amortization expense is included in selling, general and administrative expenses. VF’s policy is to review property, plant and equipment and amortizable intangible assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If forecasted undiscounted cash flows to be generated by the asset are not expected to recover the asset’s carrying value, an impairment charge is recorded for the excess of the asset’s carrying value over its estimated fair value. VF’s policy is to evaluate indefinite-lived intangible assets and goodwill for possible impairment as of the beginning of the fourth quarter of each year, or whenever events or changes in circumstances indicate that the fair value of such assets may be below their carrying amount. VF may first assess qualitative factors as a basis for determining whether it is necessary to perform quantitative impairment testing. If VF determines that it is not more likely than not that the fair value of an asset or reporting unit is less than its carrying value, then no further testing is required. Otherwise, the assets must be quantitatively tested for impairment. An indefinite-lived intangible asset is quantitatively evaluated for possible impairment by comparing the estimated fair value of the asset with its carrying value. An impairment charge is recorded if the carrying value of the asset exceeds its estimated fair value. Goodwill is quantitatively evaluated for possible impairment by comparing the estimated fair value of a reporting unit with its carrying value, including the goodwill assigned to that reporting unit. An impairment charge is recorded if the carrying value of the goodwill exceeds its implied fair value. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are measured at fair value in the Consolidated Balance Sheets. Unrealized gains and losses are recognized as assets and liabilities, respectively, and classified as current or noncurrent based on the derivatives’ maturity dates. The accounting for changes in the fair value of derivative instruments (i.e., gains and losses) depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. To qualify for hedge accounting treatment, all hedging relationships must be formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows of hedged transactions. VF’s hedging practices are described in Note U. VF does not use derivative instruments for trading or speculative purposes. Hedging cash flows are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. VF formally documents hedging instruments and hedging relationships at the inception of each contract. Further, at the inception of a contract and on an ongoing basis, VF assesses whether the hedging instruments are effective in offsetting the risk of the hedged transactions. Occasionally, a portion of a derivative instrument will be considered ineffective in hedging the originally identified exposure due to a decline in amount or a change in timing of the hedged exposure. In that case, hedge accounting treatment is discontinued for the ineffective portion of that hedging instrument, and any change in fair value for the ineffective portion is recognized in net income. VF also uses derivative contracts to manage foreign currency exchange risk on certain assets and liabilities. These contracts are not designated as hedges, and are measured at fair value in the Consolidated Balance Sheets with changes in fair value recognized directly in net income. The counterparties to the derivative contracts are financial institutions having at least A-rated investment grade credit ratings. To manage its credit risk, VF continually monitors the credit risks of its counterparties, limits its exposure in the aggregate and to any single counterparty, and adjusts its hedging positions as appropriate. The impact of VF’s credit risk and the credit risk of its counterparties, as well as the ability of each party to fulfill its obligations under the contracts, is considered in determining the fair value of the derivative contracts. Credit risk has not had a significant effect on the fair value of VF’s derivative contracts. VF does not have any credit risk-related contingent features or collateral requirements with its derivative contracts. |
Revenue Recognition | Revenue Recognition Revenue is recognized when (i) there is a contract or other arrangement of sale, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured. Sales to wholesale customers are recognized when title and the risks and rewards of ownership have passed to the customer, based on the terms of sale. E-commerce sales are generally recognized when the product has been received by the customer. Sales at VF-operated and concession retail stores are recognized at the time products are purchased by consumers. Revenue from the sale of gift cards is deferred until the gift card is redeemed by the customer or the Company determines that the likelihood of redemption is remote and that it does not have a legal obligation to remit the value of the unredeemed gift card to any jurisdiction under unclaimed property regulations. Various VF brands maintain customer loyalty programs where customers earn rewards from qualifying purchases. VF recognizes revenue when (i) rewards are redeemed by the customer, (ii) points or certificates expire or (iii) a breakage factor is applied based on historical redemption patterns. Net sales reflect adjustments for estimated allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and returns. These allowances are estimated based on evaluations of specific product and customer circumstances, historical and anticipated trends and current economic conditions. Shipping and handling costs billed to customers are included in net sales. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from net sales. Royalty income is recognized as earned based on the greater of the licensees’ sales of licensed products at rates specified in the licensing contracts or contractual minimum royalty levels |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold for VF-manufactured goods includes all materials, labor and overhead costs incurred in the production process. Cost of goods sold for purchased finished goods includes the purchase costs and related overhead. In both cases, overhead includes all costs related to manufacturing or purchasing finished goods, including costs of planning, purchasing, quality control, depreciation, freight, duties, royalties paid to third parties and shrinkage. For product lines with a warranty, a provision for estimated future repair or replacement costs, based on historical and anticipated trends, is recorded when these products are sold. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include costs of product development, selling, marketing and advertising, VF-operated retail stores, concession retail stores, warehousing, distribution, shipping and handling, licensing and administration. Advertising costs are expensed as incurred and totaled $676.4 million in 2016 , $693.4 million in 2015 and $691.2 million in 2014 . Advertising costs include cooperative advertising payments made to VF’s customers as reimbursement for their costs of advertising VF’s products, and totaled $55.8 million in 2016 , $59.3 million in 2015 and $60.2 million in 2014 . Shipping and handling costs for delivery of products to customers totaled $326.9 million in 2016 , $344.5 million in 2015 and $305.9 million in 2014 . Expenses related to royalty income, including amortization of licensed intangible assets, were $11.3 million in 2016 and $12.8 million in 2015 and 2014 . |
Rent Expense | Rent Expense VF enters into noncancelable operating leases for retail stores, office space, distribution facilities and equipment. Leases for real estate typically have initial terms ranging from 3 to 15 years, generally with renewal options. Leases for equipment typically have initial terms ranging from 2 to 5 years. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. Contingent rent expense, owed when sales at individual retail store locations exceed a stated base amount, is recognized when the liability is probable. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the lease term beginning with the earlier of the lease commencement date or the date VF takes possession or control of the leased premises. The amount of the excess straight-line rent expense over scheduled payments is recorded as a deferred liability. |
Self-insurance | Self-insurance VF is self-insured for a significant portion of its employee medical, workers’ compensation, vehicle, property and general liability exposures. Liabilities for self-insured exposures are accrued at the present value of amounts expected to be paid based on historical claims experience and actuarial data for forecasted settlements of claims filed and for incurred but not yet reported claims. Accruals for self-insured exposures are included in current and noncurrent liabilities based on the expected periods of payment. Excess liability insurance has been purchased to limit the amount of self-insured risk on claims. |
Income Taxes | Income Taxes Income taxes are provided on pre-tax income for financial reporting purposes. Income taxes are based on amounts of taxes payable or refundable in the current year and on expected future tax consequences of events that are recognized in the consolidated financial statements in different periods than they are recognized in tax returns. As a result of timing of recognition and measurement differences between financial accounting standards and income tax laws, temporary differences arise between amounts of pre-tax financial statement income and taxable income, and between reported amounts of assets and liabilities in the Consolidated Balance Sheets and their respective tax bases. Deferred income tax assets and liabilities reported in the Consolidated Balance Sheets reflect the estimated future tax impact of these temporary differences and net operating loss and net capital loss carryforwards, based on tax rates currently enacted for the years in which the differences are expected to be settled or realized. Realization of deferred tax assets is dependent on future taxable income in specific jurisdictions. Valuation allowances are used to reduce deferred tax assets to amounts considered more likely than not to be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested. Accrued income taxes in the Consolidated Balance Sheets include unrecognized income tax benefits, along with related interest and penalties, appropriately classified as current or noncurrent. All deferred tax assets and liabilities are classified as noncurrent in the Consolidated Balance Sheets. The provision for income taxes also includes estimated interest and penalties related to uncertain tax positions. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive securities such as stock options, restricted stock and restricted stock units. |
Concentration of Risks | Concentration of Risks VF markets products to a broad customer base throughout the world. Products are sold at a range of price points through multiple wholesale and direct-to-consumer channels. VF’s ten largest customers, all U.S.-based retailers, accounted for 21% of 2016 total revenues, and sales to VF’s largest customer accounted for 9% of 2016 total revenues. Sales are generally made on an unsecured basis under customary terms that may vary by product, channel of distribution or geographic region. VF continuously monitors the creditworthiness of its customers and has established internal policies regarding customer credit limits. The breadth of product offerings, combined with the large number and geographic diversity of its customers, limits VF’s concentration of risks. |
Legal and Other Contingencies | Legal and Other Contingencies Management periodically assesses liabilities and contingencies in connection with legal proceedings and other claims that may arise from time to time. When it is probable that a loss has been or will be incurred, an estimate of the loss is recorded in the consolidated financial statements. Estimates of losses are adjusted when additional information becomes available or circumstances change. A contingent liability is disclosed when there is at least a reasonable possibility that a material loss may have been incurred. Management believes that the outcome of any outstanding or pending matters, individually and in the aggregate, will not have a material adverse effect on the consolidated financial statements. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with the 2016 presentation, as discussed below in Recently Adopted Accounting Standards . |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“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 became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In February 2015, the FASB issued an update to their existing consolidation model that changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In April 2015, the FASB issued new guidance related to a customer’s accounting for fees paid in a cloud computing arrangement. This guidance provides clarification on whether a cloud computing arrangement should be treated as a software license or a service contract. This guidance became effective in the first quarter of 2016, but did not impact 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. This 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 became effective in the first quarter of 2016, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on stock compensation that intends to simplify and improve the accounting and statement of cash flow presentation for income taxes at settlement, forfeitures, and net settlements for withholding tax. The Company early adopted this guidance as of the beginning of the first quarter of 2016. Accordingly, VF recognized $29.3 million of excess tax benefits in our provision for income taxes, rather than paid-in capital, in 2016. Also, starting in the first quarter of 2016, the Company changed its earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method, which had a minimal impact on diluted shares. The Company has elected to continue its existing practice of estimating expected forfeitures in determining compensation cost. VF did not have any awards that were subject to the amendments regarding employee shares eligible for tax withholding, and no changes were required related to the classification of employee taxes paid for withheld shares in the Consolidated Statements of Cash Flows since VF has historically classified these within financing cash flows. The Company began to present excess tax benefits as an operating cash flow in 2016 as required by the updated guidance, and elected to retrospectively adjust 2015 and 2014 operating and financing cash flows, as follows: Statement of Cash Flows Consolidated Statement of Cash Flows (As Previously Reported) Reclassification of Tax Benefits of Stock-based Compensation Increase (Decrease) Consolidated Statement of Cash Flows (Reclassified) In thousands 2015 Cash provided by operating activities $ 1,146,510 $ 56,920 $ 1,203,430 Cash used by financing activities (783,295 ) (56,920 ) (840,215 ) 2014 Cash provided by operating activities 1,697,629 64,437 1,762,066 Cash used by financing activities (1,107,421 ) (64,437 ) (1,171,858 ) Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The standard prescribes a five-step approach to revenue recognition: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company has established a cross-functional implementation team to address the standard and has completed VF’s initial impact analysis. The new guidance is not expected to have a material impact on VF’s significant revenue streams within the wholesale, direct-to-consumer and royalty channels. VF is continuing to evaluate the impact on less significant revenue streams within those channels. The Company expects to adopt the new standard utilizing the modified retrospective method in the first quarter of 2018. In July 2015, the FASB issued an update to their accounting guidance related to inventory that changes the measurement principle from lower of cost or market to lower of cost or net realizable value. This guidance will be effective in the first quarter of 2017 with early adoption permitted, and will not impact VF’s consolidated financial statements. In January 2016, the FASB issued an update to their accounting guidance related to the recognition and measurement of certain financial instruments. This guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In February 2016, the FASB issued a new accounting standard on leasing. This new standard will require companies to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the significant amount of leases the Company is party to, VF expects this standard will have a material impact on VF’s Consolidated Balance Sheets but does not expect it to have a material impact on the Consolidated Statements of Income. The Company is still assessing the expected timing of adoption. In March 2016, the FASB issued an update to their accounting guidance on extinguishments of financial liabilities that exempts prepaid stored-value products, or gift cards, from the existing guidance. This updated guidance requires that gift card liabilities be subject to breakage accounting, consistent with the new revenue recognition standard discussed above. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. This guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments when there is a change in the counterparty to a derivative contract (novation). The new guidance clarifies that the novation of a derivative contract that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on derivative financial instruments that clarifies the steps required to determine bifurcation of an embedded derivative. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. In June 2016, the FASB issued an update to their accounting guidance on the measurement of credit losses on financial instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. This guidance will be effective in the first quarter of 2020 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on VF’s consolidated financial statements. In August 2016, the FASB issued an update to their accounting guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In October 2016, the FASB issued an update to their accounting guidance on the recognition of current and deferred income taxes for intra-entity asset transfers. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance will be effective in the first quarter of 2018 and the Company will early adopt this guidance in the first quarter of 2017 using the modified retrospective method, which requires a cumulative adjustment to retained earnings as of the beginning of the period of adoption. The Company anticipates the cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet will be a reduction in both the other assets and retained earnings line items of $234.0 million . In October 2016, the FASB issued an update to their accounting guidance that changes how a single decision maker will consider its indirect interests when performing the primary beneficiary analysis under the variable interest entity model. This guidance will be effective in the first quarter of 2017 with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents in the statement of cash flows to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company will early adopt the presentation change in the Consolidated Statements of Cash Flows to include restricted cash and restricted cash equivalents beginning the first quarter of 2017, but does not expect the impact to be material. In January 2017, the FASB issued an update that simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. The single quantitative step test requires companies to compare the fair value of a reporting unit with its carrying amount and record an impairment charge for the amount that the carrying amount exceeds the fair value, up to the total amount of goodwill allocated to that reporting unit. VF will continue to have the option of first performing a qualitative assessment to determine whether it is necessary to complete the quantitative goodwill impairment test. This guidance will be effective in the first quarter of 2020 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will apply this guidance on any future impairment analyses, which may have a significant impact on the calculated impairment charges, if any are required. In January 2017, the FASB issued an update that provides a more narrow framework to be used in evaluating whether a set of assets and activities constitutes a business. This guidance will be effective in the first quarter of 2018 with early adoption permitted. The Company will apply this guidance to any future transactions but does not expect it to have a significant impact on VF’s consolidated financial statements. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Impact of Accounting Standards on Cash Flow Provided by Operating and Financing Activities | The Company began to present excess tax benefits as an operating cash flow in 2016 as required by the updated guidance, and elected to retrospectively adjust 2015 and 2014 operating and financing cash flows, as follows: Statement of Cash Flows Consolidated Statement of Cash Flows (As Previously Reported) Reclassification of Tax Benefits of Stock-based Compensation Increase (Decrease) Consolidated Statement of Cash Flows (Reclassified) In thousands 2015 Cash provided by operating activities $ 1,146,510 $ 56,920 $ 1,203,430 Cash used by financing activities (783,295 ) (56,920 ) (840,215 ) 2014 Cash provided by operating activities 1,697,629 64,437 1,762,066 Cash used by financing activities (1,107,421 ) (64,437 ) (1,171,858 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for each of the periods presented: 2016 2015 2014 In thousands Depreciation and amortization $ 4,581 $ 17,673 $ 24,006 Capital expenditures 719 5,663 10,308 Impairment of goodwill and intangible assets — 143,562 396,362 The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. 2016 2015 In thousands Accounts receivable, net $ — $ 29,596 Inventories — 56,634 Other current assets, including cash and equivalents — 2,946 Property, plant and equipment — 42,668 Intangible assets — 164,008 Other assets — 3,355 Total assets of discontinued operations (a) $ — $ 299,207 Current portion of long-term debt $ — $ 9,928 Accounts payable — 8,988 Accrued liabilities — 7,102 Other liabilities — 10,915 Total liabilities of discontinued operations (a) $ — $ 36,933 (a) Amounts at December 2015 have been classified as current and long-term in the Consolidated Balance Sheet. The following table summarizes the major line items included in the loss from discontinued operations for each of the periods presented. 2016 2015 2014 In thousands Revenues $ 187,821 $ 344,089 $ 400,431 Cost of goods sold 85,303 158,101 175,310 Selling, general and administrative expenses 99,295 169,357 189,349 Impairment of goodwill and intangible assets — 143,562 396,362 Interest income (expense), net (109 ) (642 ) (621 ) Other income (expense), net 3 627 1 Pre-tax income (loss) from discontinued operations 3,117 (126,946 ) (361,210 ) Pre-tax loss on the disposal of discontinued operations (154,275 ) — — Total pre-tax loss from discontinued operations (151,158 ) (126,946 ) (361,210 ) Income tax benefit 52,737 43,408 80,966 Loss from discontinued operations, net of tax $ (98,421 ) $ (83,538 ) $ (280,244 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | 2016 2015 In thousands Trade $ 1,147,942 $ 1,240,654 Royalty and other 70,867 72,583 Total accounts receivable 1,218,809 1,313,237 Less allowance for doubtful accounts 21,131 23,275 Accounts receivable, net $ 1,197,678 $ 1,289,962 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 2016 2015 In thousands Finished products $ 1,321,511 $ 1,313,646 Work-in-process 99,536 94,355 Raw materials 148,278 147,359 Total inventories $ 1,569,325 $ 1,555,360 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2016 2015 In thousands Land and improvements $ 87,510 $ 93,923 Buildings and improvements 998,999 983,666 Machinery and equipment 1,288,873 1,233,656 Property, plant and equipment, at cost 2,375,382 2,311,245 Less accumulated depreciation and amortization 1,435,732 1,365,754 Property, plant and equipment, net $ 939,650 $ 945,491 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite Lived Intangible Assets | Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2016 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 268,417 $ 131,029 $ 137,388 License agreements 23 years Accelerated and straight-line 175,084 97,941 77,143 Trademark 16 years Straight-line 58,132 3,633 54,499 Other 10 years Straight-line 6,036 2,739 3,297 Amortizable intangible assets, net 272,327 Indefinite-lived intangible assets: Trademarks and trade names 1,567,371 Intangible assets, net $ 1,839,698 Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2015 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 275,385 $ 119,338 $ 156,047 License agreements 24 years Accelerated and straight-line 179,626 93,086 86,540 Other 11 years Straight-line 5,636 2,193 3,443 Amortizable intangible assets, net 246,030 Indefinite-lived intangible assets: Trademarks and trade names 1,702,581 Intangible assets, net $ 1,948,611 |
Finite Lived Intangible Assets | Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2016 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 268,417 $ 131,029 $ 137,388 License agreements 23 years Accelerated and straight-line 175,084 97,941 77,143 Trademark 16 years Straight-line 58,132 3,633 54,499 Other 10 years Straight-line 6,036 2,739 3,297 Amortizable intangible assets, net 272,327 Indefinite-lived intangible assets: Trademarks and trade names 1,567,371 Intangible assets, net $ 1,839,698 Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount In thousands December 2015 Amortizable intangible assets: Customer relationships 20 years Accelerated $ 275,385 $ 119,338 $ 156,047 License agreements 24 years Accelerated and straight-line 179,626 93,086 86,540 Other 11 years Straight-line 5,636 2,193 3,443 Amortizable intangible assets, net 246,030 Indefinite-lived intangible assets: Trademarks and trade names 1,702,581 Intangible assets, net $ 1,948,611 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill are summarized by business segment as follows: Outdoor & Action Sports Jeanswear Imagewear Sportswear Total In thousands Balance, December 2014 $ 1,389,453 $ 219,442 $ 58,747 $ 157,314 $ 1,824,956 Currency translation (29,978 ) (6,571 ) — — (36,549 ) Balance, December 2015 1,359,475 212,871 58,747 157,314 1,788,407 Impairment charge (39,344 ) — — — (39,344 ) Currency translation (9,998 ) (2,106 ) — — (12,104 ) Balance, December 2016 $ 1,310,133 $ 210,765 $ 58,747 $ 157,314 $ 1,736,959 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | 2016 2015 In thousands Deferred charge (Note P) $ 276,473 $ — Computer software, net of accumulated amortization of $133,324 in 2016 and $99,069 in 2015 195,176 177,642 Investments held for deferred compensation plans (Note M) 194,362 205,283 Deferred income taxes (Note P) 42,231 39,246 Pension assets (Note M) 41,281 9,273 Deposits 36,318 36,485 Partnership stores and shop-in-shop costs, net of accumulated amortization of $110,765 in 2016 and $96,546 in 2015 35,298 45,365 Derivative financial instruments (Note U) 18,821 12,995 Other investments 11,217 10,706 Deferred line of credit issuance costs 1,545 1,596 Other 77,160 45,275 Other assets $ 929,882 $ 583,866 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | 2016 2015 In thousands Commercial paper borrowings $ — $ 423,000 International borrowing arrangements 26,029 26,590 Short-term borrowings $ 26,029 $ 449,590 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 2016 2015 In thousands Compensation $ 159,298 $ 169,047 Other taxes 129,340 123,051 Income taxes 70,154 59,779 Restructuring (Note W) 53,598 — Customer discounts and allowances 45,277 35,179 Advertising 43,520 56,338 Freight, duties and postage 43,247 51,447 Deferred compensation (Note M) 34,498 29,491 Interest 19,899 16,918 Derivative financial instruments (Note U) 18,574 25,776 Insurance 17,541 16,669 Product warranty claims (Note L) 12,993 13,550 Pension liabilities (Note M) 10,669 8,480 Other 182,430 176,423 Accrued liabilities $ 841,038 $ 782,148 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | 2016 2015 In thousands 5.95% notes, due 2017 $ 249,823 $ 249,586 3.50% notes, due 2021 497,128 496,566 0.625% notes, due 2023 889,760 — 6.00% notes, due 2033 292,251 291,948 6.45% notes, due 2037 346,112 345,925 Capital leases 17,795 21,146 Total long-term debt 2,292,869 1,405,171 Less current portion 253,689 3,351 Long-term debt, due beyond one year $ 2,039,180 $ 1,401,820 |
Payments of Long-term Debt and Future Minimum Lease Payments | The scheduled payments of long-term debt and future minimum lease payments for capital leases at the end of 2016 are summarized as follows: Notes and Other Capital Leases Total In thousands 2017 $ 250,000 $ 4,504 $ 254,504 2018 — 4,504 4,504 2019 — 4,504 4,504 2020 — 4,504 4,504 2021 500,000 1,877 501,877 Thereafter 1,546,495 — 1,546,495 2,296,495 19,893 2,316,388 Less unamortized debt discount 7,630 — 7,630 Less unamortized debt issuance costs 13,791 — 13,791 Less amounts representing interest — 2,098 2,098 Total long-term debt 2,275,074 17,795 2,292,869 Less current portion 250,000 3,689 253,689 Long-term debt, due beyond one year $ 2,025,074 $ 14,106 $ 2,039,180 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | 2016 2015 In thousands Deferred income taxes (Note P) $ 220,618 $ 241,409 Deferred compensation (Note M) 198,256 223,232 Income taxes 181,629 79,975 Pension liabilities (Note M) 165,642 157,434 Deferred rent credits 89,835 84,960 Product warranty claims 49,879 49,564 Derivative financial instruments (Note U) 7,000 2,256 Other 60,927 61,426 Other liabilities $ 973,786 $ 900,256 |
Activity Relating to Accrued Product Warranty Claims | Activity relating to accrued product warranty claims is summarized as follows: 2016 2015 2014 In thousands Balance, beginning of year $ 63,114 $ 62,288 $ 57,139 Accrual for products sold during the year 12,022 16,673 20,971 Repair or replacement costs incurred (11,956 ) (14,136 ) (13,660 ) Currency translation (308 ) (1,711 ) (2,162 ) Balance, end of year 62,872 63,114 62,288 Less current portion (Note J) 12,993 13,550 14,467 Long-term portion $ 49,879 $ 49,564 $ 47,821 |
Retirement and Savings Benefi47
Retirement and Savings Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Pension Cost | The components of pension cost for VF’s defined benefit plans were as follows: 2016 2015 2014 In thousands Service cost — benefits earned during the year $ 25,839 $ 29,223 $ 24,163 Interest cost on projected benefit obligations 68,020 77,620 81,496 Expected return on plan assets (99,540 ) (111,095 ) (90,674 ) Settlement charges 50,922 4,062 — Amortization of deferred amounts: Net deferred actuarial losses 65,212 61,966 37,518 Deferred prior service costs 2,584 3,038 5,445 Total pension expense $ 113,037 $ 64,814 $ 57,948 Weighted average actuarial assumptions used to determine pension expense: Discount rate in effect for determining service cost 4.54 % 3.93 % 4.64 % Discount rate in effect for determining interest cost 3.56 % 3.93 % 4.64 % Expected long-term return on plan assets 5.81 % 6.05 % 4.73 % Rate of compensation increase 3.90 % 3.91 % 3.53 % |
Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations | The following provides a reconciliation of the changes in fair value of VF’s defined benefit plan assets and projected benefit obligations for each year, and the funded status at the end of each year: 2016 2015 In thousands Fair value of plan assets, beginning of year $ 1,755,374 $ 1,628,254 Actual return on plan assets 191,219 (56,624 ) VF contributions 24,031 273,520 Participant contributions 3,644 3,483 Benefits paid (286,271 ) (87,994 ) Currency translation (14,700 ) (5,265 ) Fair value of plan assets, end of year 1,673,297 1,755,374 Projected benefit obligations, beginning of year 1,912,015 1,999,947 Service cost 25,839 29,223 Interest cost 68,020 77,620 Participant contributions 3,644 3,483 Actuarial loss (gain) 100,242 (101,387 ) Benefits paid (286,271 ) (87,994 ) Plan amendments — (1,510 ) Currency translation (15,162 ) (7,367 ) Projected benefit obligations, end of year 1,808,327 1,912,015 Funded status, end of year $ (135,030 ) $ (156,641 ) Pension benefits are reported in the Consolidated Balance Sheets as a net asset or liability based on the overfunded or underfunded status of the defined benefit plans, assessed on a plan-by-plan basis. 2016 2015 In thousands Amounts included in Consolidated Balance Sheets: Noncurrent assets (Note H) $ 41,281 $ 9,273 Current liabilities (Note J) (10,669 ) (8,480 ) Noncurrent liabilities (Note L) (165,642 ) (157,434 ) Funded status $ (135,030 ) $ (156,641 ) Accumulated other comprehensive loss, pre-tax: Net deferred actuarial losses $ 476,071 $ 586,828 Deferred prior service costs 14,883 17,459 Total accumulated other comprehensive loss, pre-tax $ 490,954 $ 604,287 Accumulated benefit obligations $ 1,717,786 $ 1,827,521 Weighted average actuarial assumptions used to determine pension obligations: Discount rate 3.87 % 4.29 % Rate of compensation increase 3.78 % 3.90 % |
Fair Value of Investments Held by Pension Plan | The fair value of investments held by VF’s defined benefit plans at December 2016 and 2015 , by asset class, is summarized below. Refer to Note T for a description of the three levels of the fair value measurement hierarchy. Total Plan Assets Fair Value Measurements Level 1 Level 2 Level 3 In thousands December 2016 Plan assets Cash equivalents $ 2,896 $ 2,896 $ — $ — Fixed income securities: U.S. Treasury and government agencies 10 — 10 — Insurance contracts 63,013 — 63,013 — Commodities 506 506 — — Total plan assets in the fair value hierarchy 66,425 $ 3,402 $ 63,023 $ — Plan assets measured at net asset value Cash equivalents 27,486 Equity securities: Domestic 134,254 International 142,772 Fixed income securities: Corporate and international bonds 1,140,894 Alternative investments 161,466 Total plan assets measured at net asset value 1,606,872 Total plan assets $ 1,673,297 Total Plan Assets Fair Value Measurements Level 1 Level 2 Level 3 In thousands December 2015 Plan assets Cash equivalents $ 2,790 $ 2,790 $ — $ — Fixed income securities: U.S. Treasury and government agencies 11 — 11 — Insurance contracts 50,856 — 50,856 — Commodities (439 ) (439 ) — — Total plan assets in the fair value hierarchy 53,218 $ 2,351 $ 50,867 $ — Plan assets measured at net asset value Cash equivalents 23,538 Equity securities: Domestic 107,190 International 179,256 Fixed income securities: Corporate and international bonds 1,232,691 Alternative investments 159,481 Total plan assets measured at net asset value 1,702,156 Total plan assets $ 1,755,374 |
Capital and Accumulated Other48
Capital and Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shares Held for Deferred Compensation Plans | Balances related to shares held for deferred compensation plans are as follows: 2016 2015 2014 In thousands, except share amounts Shares held for deferred compensation plans 439,667 562,649 637,504 Cost of shares held for deferred compensation plans $ 5,464 $ 6,823 $ 7,724 |
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in AOCI | The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: 2016 2015 In thousands Foreign currency translation and other $ (794,579 ) $ (718,169 ) Defined benefit pension plans (302,697 ) (372,195 ) Derivative financial instruments 55,813 47,142 Accumulated other comprehensive loss $ (1,041,463 ) $ (1,043,222 ) The changes in accumulated OCI, net of related taxes, are as follows: Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Marketable Securities Total In thousands Balance, December 2013 $ 106,647 $ (277,451 ) $ (41,754 ) $ 838 $ (211,720 ) Other comprehensive income (loss) before reclassifications (463,588 ) (126,275 ) 53,651 (424 ) (536,636 ) Amounts reclassified from accumulated other comprehensive income (loss) — 26,592 19,492 — 46,084 Net other comprehensive income (loss) (463,588 ) (99,683 ) 73,143 (424 ) (490,552 ) Balance, December 2014 (356,941 ) (377,134 ) 31,389 414 (702,272 ) Other comprehensive income (loss) before reclassifications (361,228 ) (37,238 ) 55,325 300 (342,841 ) Amounts reclassified from accumulated other comprehensive income (loss) — 42,177 (39,572 ) (714 ) 1,891 Net other comprehensive income (loss) (361,228 ) 4,939 15,753 (414 ) (340,950 ) Balance, December 2015 (718,169 ) (372,195 ) 47,142 — (1,043,222 ) Other comprehensive income (loss) before reclassifications (76,410 ) (4,357 ) 81,036 — 269 Amounts reclassified from accumulated other comprehensive income (loss) — 73,855 (72,365 ) — 1,490 Net other comprehensive income (loss) (76,410 ) 69,498 8,671 — 1,759 Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ — $ (1,041,463 ) |
Reclassifications Out of Accumulated OCI | Reclassifications out of accumulated OCI are as follows: Details About Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income 2016 2015 2014 In thousands Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (65,212 ) $ (61,966 ) $ (37,518 ) Deferred prior service costs (a) (2,584 ) (3,038 ) (5,445 ) Pension settlement charges Selling, general and administrative expenses (50,922 ) (4,062 ) — Total before tax (118,718 ) (69,066 ) (42,963 ) Tax benefit 44,863 26,889 16,371 Net of tax (73,855 ) (42,177 ) (26,592 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 28,798 (68,543 ) (18,071 ) Foreign exchange contracts Cost of goods sold 84,613 132,432 (8,756 ) Foreign exchange contracts Selling, general and administrative expenses (4,314 ) (1,885 ) — Foreign exchange contracts Other income (expense), net 2,864 7,267 (1,189 ) Interest rate contracts Interest expense (4,504 ) (4,295 ) (4,095 ) Total before tax 107,457 64,976 (32,111 ) Tax benefit (expense) (35,092 ) (25,404 ) 12,619 Net of tax 72,365 39,572 (19,492 ) Gains (losses) on sale of marketable securities: Other income (expense), net — 1,177 — Tax expense — (463 ) — Net of tax — 714 — Total reclassifications for the year Net of tax $ (1,490 ) $ (1,891 ) $ (46,084 ) (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note M for additional details). |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory | Total stock-based compensation cost and the associated income tax benefits recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, are as follows: 2016 2015 2014 In thousands Stock-based compensation cost $ 67,762 $ 73,420 $ 104,313 Income tax benefits 22,870 28,090 41,725 Stock-based compensation costs included in inventory 1,332 1,345 797 |
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: 2016 2015 2014 Expected volatility 21% to 29% 19% to 29% 23% to 29% Weighted average expected volatility 24% 22% 26% Expected term (in years) 6.3 to 7.6 5.9 to 7.5 5.5 to 7.3 Weighted average dividend yield 2.2% 2.0% 2.1% Risk-free interest rate 0.4% to 1.7% 0.1% to 2.3% 0.1% to 2.7% Weighted average fair value at date of grant $12.08 $13.72 $12.01 |
Stock Option Activity | Stock option activity for 2016 is summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 2015 14,715,410 $ 41.73 Granted 3,132,609 61.31 Exercised (2,515,180 ) 28.47 Forfeited/cancelled (552,656 ) 62.04 Outstanding, December 2016 14,780,183 47.38 6.4 $ 180,400 Exercisable, December 2016 9,694,433 38.37 5.3 $ 180,394 |
RSU Activity | RSU activity for 2016 is summarized as follows: Performance-based Nonperformance-based Number Outstanding Weighted Average Grant Date Fair Value Number Outstanding Weighted Average Grant Date Fair Value Outstanding, December 2015 1,649,630 $ 55.18 274,856 $ 49.64 Granted 605,658 61.31 82,113 61.83 Issued as Common Stock (672,883 ) 40.64 (25,556 ) 53.19 Forfeited/cancelled (87,780 ) 64.15 (32,500 ) 48.95 Outstanding, December 2016 1,494,625 63.68 298,913 52.76 Vested, December 2016 924,326 61.50 13,013 61.29 |
Restricted Stock Activity | Restricted stock activity for 2016 is summarized below: Nonvested Shares Outstanding Weighted Average Grant Date Fair Value Nonvested shares, December 2015 594,637 $ 50.73 Granted 128,737 61.66 Dividend equivalents 15,931 59.85 Vested (72,862 ) 43.87 Forfeited (43,751 ) 58.83 Nonvested shares, December 2016 622,692 53.45 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes was Computed Based on Amounts of Income Before Income Taxes | The provision for income taxes was computed based on the following amounts of income from continuing operations before income taxes: 2016 2015 2014 In thousands Domestic $ 404,878 $ 853,630 $ 815,081 Foreign 1,010,713 853,705 898,495 Income before income taxes $ 1,415,591 $ 1,707,335 $ 1,713,576 |
Provision for Income Taxes | The provision for income taxes consisted of: 2016 2015 2014 In thousands Current: Federal $ 150,428 $ 234,325 $ 280,999 Foreign 124,871 113,812 138,552 State 39,390 36,979 44,340 314,689 385,116 463,891 Deferred: Federal and state (63,610 ) 401 (78,362 ) Foreign (8,015 ) 6,687 298 Income taxes $ 243,064 $ 392,204 $ 385,827 |
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements | The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense reported in the consolidated financial statements are as follows: 2016 2015 2014 In thousands Tax at federal statutory rate $ 495,457 $ 597,567 $ 599,752 State income taxes, net of federal tax benefit 25,783 23,917 29,118 Foreign rate differences (271,198 ) (202,420 ) (234,773 ) Stock compensation (federal) (26,553 ) — — Other 19,575 (26,860 ) (8,270 ) Income taxes $ 243,064 $ 392,204 $ 385,827 |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following: 2016 2015 In thousands Deferred income tax assets: Inventories $ 40,468 $ 38,897 Deferred compensation 88,249 96,397 Other employee benefits 79,834 88,359 Stock compensation 69,010 67,551 Other accrued expenses 168,908 154,337 Operating loss carryforwards 152,587 139,634 Gross deferred income tax assets 599,056 585,175 Valuation allowances (114,990 ) (100,951 ) Net deferred income tax assets 484,066 484,224 Deferred income tax liabilities: Depreciation 33,919 27,756 Intangible assets 569,767 591,615 Other deferred tax liabilities 58,767 67,016 Deferred income tax liabilities 662,453 686,387 Net deferred income tax assets (liabilities) $ (178,387 ) $ (202,163 ) Amounts included in the Consolidated Balance Sheets: Noncurrent assets (Note H) $ 42,231 $ 39,246 Noncurrent liabilities (Note L) (220,618 ) (241,409 ) $ (178,387 ) $ (202,163 ) |
Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits | A reconciliation of the change in the accrual for unrecognized income tax benefits is as follows: Unrecognized Income Tax Benefits Accrued Interest and Penalties Unrecognized Income Tax Benefits Including Interest and Penalties In thousands Balance, December 2013 $ 118,514 $ 17,474 $ 135,988 Additions for current year tax positions 12,850 — 12,850 Additions for prior year tax positions 5,252 5,033 10,285 Reductions for prior year tax positions (12,898 ) (2,780 ) (15,678 ) Reductions due to statute expirations (9,159 ) (647 ) (9,806 ) Payments in settlement (657 ) (1,742 ) (2,399 ) Currency translation (298 ) (119 ) (417 ) Balance, December 2014 113,604 17,219 130,823 Additions for current year tax positions 13,470 — 13,470 Additions for prior year tax positions 4,396 3,188 7,584 Reductions for prior year tax positions (32,432 ) (6,350 ) (38,782 ) Reductions due to statute expirations (11,780 ) (2,528 ) (14,308 ) Payments in settlement (11,437 ) (2,065 ) (13,502 ) Currency translation (144 ) (95 ) (239 ) Balance, December 2015 75,677 9,369 85,046 Additions for current year tax positions 121,025 — 121,025 Additions for prior year tax positions 6,164 2,880 9,044 Reductions for prior year tax positions (4,798 ) (1,362 ) (6,160 ) Reductions due to statute expirations (14,985 ) (1,335 ) (16,320 ) Payments in settlement (6,108 ) (829 ) (6,937 ) Currency translation (9 ) (14 ) (23 ) Balance, December 2016 $ 176,966 $ 8,709 $ 185,675 |
Amounts Included in Consolidated Balance Sheets | 2016 2015 In thousands Amounts included in the Consolidated Balance Sheets: Unrecognized income tax benefits, including interest and penalties $ 185,675 $ 85,046 Less deferred tax benefits 35,141 11,973 Total unrecognized tax benefits $ 150,534 $ 73,073 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF’s reportable segments is as follows: 2016 2015 2014 In thousands Coalition revenues: Outdoor & Action Sports $ 7,533,145 $ 7,400,446 $ 7,198,994 Jeanswear 2,737,701 2,792,244 2,801,754 Imagewear 1,103,813 1,082,565 1,104,038 Sportswear 536,302 635,056 650,203 Other 108,042 122,344 126,741 Total coalition revenues $ 12,019,003 $ 12,032,655 $ 11,881,730 Coalition profit: (a) Outdoor & Action Sports $ 1,226,208 $ 1,266,763 $ 1,312,963 Jeanswear 491,912 535,385 527,972 Imagewear 179,793 157,959 164,352 Sportswear 36,648 78,879 77,972 Other (b) (4,403 ) 15,135 (2,600 ) Total coalition profit 1,930,158 2,054,121 2,080,659 Impairment of goodwill and intangible assets (c) (79,644 ) — — Corporate and other expenses (d) (e) (349,287 ) (265,166 ) (287,890 ) Interest expense, net (f) (85,636 ) (81,620 ) (79,193 ) Income from continuing operations before income taxes $ 1,415,591 $ 1,707,335 $ 1,713,576 (a) Reflects restructuring costs in 2016 totaling $43.3 million as follows: Outdoor and Action Sports - $17.4 million ; Jeanswear - $20.4 million ; Imagewear - $1.3 million ; Sportswear - $2.9 million ; and Other - $1.3 million (Note W). (b) Reflects a $16.6 million gain in 2015 recognized on the sale of a VF Outlet ® location. (c) Represents goodwill and intangible asset impairment charges in 2016 related to the Outdoor & Action Sports coalition (Notes F, G and T). (d) Reflects a $ 50.9 million pension settlement charge (Note M) and $14.8 million in restructuring charges (Note W) in 2016. (e) Certain corporate overhead costs of $5.8 million , $11.4 million and $12.4 million in 2016, 2015 and 2014, respectively, previously allocated to the Contemporary Brands coalition for segment reporting purposes have been reallocated to continuing operations as discussed in Note B. (f) Interest expense of $2.3 million and $1.9 million in 2015 and 2014, respectively, previously allocated to the Contemporary Brands coalition for segment reporting purposes has been reallocated to continuing operations as discussed in Note B. |
Reconciliation Assets | 2016 2015 In thousands Coalition assets: Outdoor & Action Sports $ 2,424,830 $ 2,436,788 Jeanswear 943,764 951,411 Imagewear 355,707 366,062 Sportswear 130,233 140,458 Other 63,351 63,162 Total coalition assets 3,917,885 3,957,881 Cash and equivalents 1,227,862 944,423 Intangible assets and goodwill 3,576,657 3,737,018 Deferred income taxes 42,231 39,246 Corporate assets 974,652 661,767 Assets of discontinued operations — 299,207 Consolidated assets $ 9,739,287 $ 9,639,542 |
Supplemental Information (with Revenues by Geographic Area Based on Location of Customer) | Supplemental information (with revenues by geographic area based on the location of the customer) is as follows: 2016 2015 2014 In thousands Total revenues: U.S. $ 7,444,594 $ 7,631,476 $ 7,292,051 Foreign, primarily Europe 4,574,409 4,401,179 4,589,679 $ 12,019,003 $ 12,032,655 $ 11,881,730 Property, plant and equipment: U.S. $ 590,593 $ 591,981 Foreign, primarily Europe 349,057 353,510 $ 939,650 $ 945,491 |
Reconciliation of Capital Expenditures and Depreciation and Amortization Expense | 2016 2015 2014 In thousands Capital expenditures: (a) Outdoor & Action Sports $ 114,430 $ 166,267 $ 111,020 Jeanswear 38,802 31,844 31,586 Imagewear 5,244 6,959 6,356 Sportswear 4,944 8,771 22,814 Other 2,390 2,679 2,489 Corporate 9,311 32,318 49,504 $ 175,121 $ 248,838 $ 223,769 Depreciation and amortization expense: (b) Outdoor & Action Sports $ 138,387 $ 129,986 $ 131,166 Jeanswear 47,726 41,823 43,189 Imagewear 13,013 11,608 11,602 Sportswear 17,042 15,358 14,334 Other 3,537 4,510 5,231 Corporate 57,291 51,117 45,355 $ 276,996 $ 254,402 $ 250,877 (a) Excludes $0.7 million , $5.7 million and $10.3 million of capital expenditures related to the Contemporary Brands coalition for 2016, 2015 and 2014, respectively. These amounts are included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note B). (b) Excludes $4.6 million , $17.7 million and $24.0 million of depreciation and amortization related to the Contemporary Brands coalition for 2016, 2015 and 2014, respectively. These amounts are included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note B). |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rent Expense, Net of Sublease Income Included in Income Statement | Rent expense, net of sublease income that was not significant in any period, was included in the Consolidated Statements of Income as follows: 2016 2015 2014 In thousands Minimum rent expense $ 360,226 $ 318,402 $ 305,149 Contingent rent expense 19,549 25,467 22,399 Rent expense $ 379,775 $ 343,869 $ 327,548 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | 2016 2015 2014 In thousands, except per share amounts Earnings per share — basic: Income from continuing operations $ 1,172,527 $ 1,315,131 $ 1,327,749 Weighted average common shares outstanding 416,103 425,408 432,611 Earnings per share from continuing operations $ 2.82 $ 3.09 $ 3.07 Earnings per share — diluted: Income from continuing operations $ 1,172,527 $ 1,315,131 $ 1,327,749 Weighted average common shares outstanding 416,103 425,408 432,611 Incremental shares from stock options and other dilutive securities 5,978 6,671 7,542 Adjusted weighted average common shares outstanding 422,081 432,079 440,153 Earnings per share from continuing operations $ 2.78 $ 3.04 $ 3.02 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Fair Value Measurement Using (a) Total Fair Value Level 1 Level 2 Level 3 In thousands December 2016 Financial assets: Cash equivalents: Money market funds $ 840,842 $ 840,842 $ — $ — Time deposits 14,774 14,774 — — Derivative financial instruments 103,340 — 103,340 — Investment securities 196,738 179,673 17,065 — Financial liabilities: Derivative financial instruments 25,574 — 25,574 — Deferred compensation 232,214 — 232,214 — December 2015 Financial assets: Cash equivalents: Money market funds $ 495,264 $ 495,264 $ — $ — Time deposits 39,813 39,813 — — Derivative financial instruments 105,791 — 105,791 — Investment securities 203,797 190,792 13,005 — Financial liabilities: Derivative financial instruments 28,032 — 28,032 — Deferred compensation 252,723 — 252,723 — (a) There were no transfers among the levels within the fair value hierarchy during 2016 or 2015 . |
Derivative Financial Instrume55
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Derivatives on Individual Contract Basis | The following table presents outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses 2016 2015 2016 2015 In thousands Foreign currency exchange contracts designated as hedging instruments $ 103,340 $ 105,536 $ (25,292 ) $ (27,896 ) Foreign currency exchange contracts not designated as hedging instruments — 255 (282 ) (136 ) Total derivatives $ 103,340 $ 105,791 $ (25,574 ) $ (28,032 ) |
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 as of December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 2016 2015 Derivative Asset Derivative Liability Derivative Asset Derivative Liability In thousands Gross amounts presented in the Consolidated Balance Sheets $ 103,340 $ (25,574 ) $ 105,791 $ (28,032 ) Gross amounts not offset in the Consolidated Balance Sheets (22,341 ) 22,341 (22,213 ) 22,213 Net amounts $ 80,999 $ (3,233 ) $ 83,578 $ (5,819 ) 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 as of December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 2016 2015 Derivative Asset Derivative Liability Derivative Asset Derivative Liability In thousands Gross amounts presented in the Consolidated Balance Sheets $ 103,340 $ (25,574 ) $ 105,791 $ (28,032 ) Gross amounts not offset in the Consolidated Balance Sheets (22,341 ) 22,341 (22,213 ) 22,213 Net amounts $ 80,999 $ (3,233 ) $ 83,578 $ (5,819 ) |
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 as of December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 2016 2015 Derivative Asset Derivative Liability Derivative Asset Derivative Liability In thousands Gross amounts presented in the Consolidated Balance Sheets $ 103,340 $ (25,574 ) $ 105,791 $ (28,032 ) Gross amounts not offset in the Consolidated Balance Sheets (22,341 ) 22,341 (22,213 ) 22,213 Net amounts $ 80,999 $ (3,233 ) $ 83,578 $ (5,819 ) 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 as of December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table: 2016 2015 Derivative Asset Derivative Liability Derivative Asset Derivative Liability In thousands Gross amounts presented in the Consolidated Balance Sheets $ 103,340 $ (25,574 ) $ 105,791 $ (28,032 ) Gross amounts not offset in the Consolidated Balance Sheets (22,341 ) 22,341 (22,213 ) 22,213 Net amounts $ 80,999 $ (3,233 ) $ 83,578 $ (5,819 ) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows: 2016 2015 In thousands Other current assets $ 84,519 $ 92,796 Accrued liabilities (Note J) (18,574 ) (25,776 ) Other assets (Note H) 18,821 12,995 Other liabilities (Note L) (7,000 ) (2,256 ) |
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: Cash Flow Hedging Relationships Gain (Loss) on Derivatives Recognized in OCI 2016 2015 2014 In thousands Foreign currency exchange $ 90,708 $ 89,993 $ 88,387 Gain (Loss) Reclassified from Accumulated OCI into Income Location of Gain (Loss) 2016 2015 2014 In thousands Net sales $ 28,798 $ (68,543 ) $ (18,071 ) Cost of goods sold 84,613 132,432 (8,756 ) Selling, general and administrative expenses (4,314 ) (1,885 ) — Other income (expense), net 2,864 7,267 (1,189 ) Interest expense (4,504 ) (4,295 ) (4,095 ) Total $ 107,457 $ 64,976 $ (32,111 ) |
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: Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income 2016 2015 2014 In thousands Foreign currency exchange Cost of goods sold $ 1,674 $ (4,179 ) $ — Foreign currency exchange Other income (expense), net 83 2,806 (707 ) Total $ 1,757 $ (1,373 ) $ (707 ) |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 2016 2015 2014 In thousands Income taxes paid, net of refunds $ 434,795 $ 339,010 $ 370,202 Interest paid, net of amounts capitalized 87,521 83,850 82,280 Noncash transactions: Property, plant and equipment expenditures included in accounts payable or accrued liabilities 28,103 9,445 9,529 Computer software costs included in accounts payable or accrued liabilities 15,143 4,394 27,555 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Components of Restructuring Charges | Restructuring costs by business segment are as follows: 2016 Charges In thousands Outdoor & Action Sports $ 17,401 Jeanswear 20,357 Imagewear 1,308 Sportswear 2,921 Other 1,277 Corporate 14,827 Total $ 58,091 The components of the restructuring charges in 2016 are as follows: 2016 Charges In thousands Severance and employee-related benefits $ 53,387 Asset impairments 3,394 Other 1,310 Total restructuring charges $ 58,091 |
Activity in Restructuring Accrual | The activity in the restructuring accrual for December 2016 is as follows: Severance Other Total In thousands Amounts recorded in accrued liabilities at December 2015 $ — $ — $ — Charges 53,387 1,310 54,697 Cash payments 667 432 1,099 Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 |
Quarterly Results of Operatio58
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | First Second Third Fourth (a) Full In thousands, except per share amounts 2016 Total revenues $ 2,764,944 $ 2,445,259 $ 3,488,226 $ 3,320,574 $ 12,019,003 Operating income 332,253 211,424 635,428 320,121 1,499,226 Income from continuing operations 256,866 148,294 503,034 264,333 1,172,527 Income (loss) from discontinued operations, net of tax 3,403 (97,279 ) (4,545 ) — (98,421 ) Net income $ 260,269 $ 51,015 $ 498,489 $ 264,333 $ 1,074,106 Earnings per common share - basic (b) Continuing operations $ 0.61 $ 0.35 $ 1.22 $ 0.64 $ 2.82 Discontinued operations 0.01 (0.23 ) (0.01 ) — (0.24 ) Total earnings per common share - basic $ 0.62 $ 0.12 $ 1.21 $ 0.64 $ 2.58 Earnings per common share - diluted (b) Continuing operations $ 0.60 $ 0.35 $ 1.20 $ 0.63 $ 2.78 Discontinued operations 0.01 (0.23 ) (0.01 ) — (0.24 ) Total earnings per common share - diluted $ 0.61 $ 0.12 $ 1.19 $ 0.63 $ 2.54 Dividends per common share $ 0.37 $ 0.37 $ 0.37 $ 0.42 $ 1.53 2015 Total revenues $ 2,749,764 $ 2,426,986 $ 3,529,626 $ 3,326,279 $ 12,032,655 Operating income 391,349 218,980 639,563 538,035 1,787,927 Income from continuing operations 283,125 167,842 457,635 406,529 1,315,131 Income (loss) from discontinued operations, net of tax 5,584 2,969 2,229 (94,320 ) (83,538 ) Net income $ 288,709 $ 170,811 $ 459,864 $ 312,209 $ 1,231,593 Earnings per common share - basic (b) Continuing operations $ 0.67 $ 0.39 $ 1.08 $ 0.95 $ 3.09 Discontinued operations 0.01 0.01 — (0.22 ) (0.19 ) Total earnings per common share - basic $ 0.68 $ 0.40 $ 1.08 $ 0.73 $ 2.90 Earnings per common share - diluted (b) Continuing operations $ 0.66 $ 0.39 $ 1.06 $ 0.94 $ 3.04 Discontinued operations 0.01 0.01 0.01 (0.22 ) (0.19 ) Total earnings per common share - diluted $ 0.67 $ 0.40 $ 1.07 $ 0.72 $ 2.85 Dividends per common share $ 0.32 $ 0.32 $ 0.32 $ 0.37 $ 1.33 (a) VF recorded the following charges during the fourth quarter of 2016: restructuring — $58.1 million ( $43.7 million after-tax), goodwill and intangible asset impairment charges — $79.6 million ( $64.1 million after-tax) and pension settlement charge — $50.9 million ( $31.4 million after-tax). (b) Per share amounts are computed independently for each quarter presented using unrounded numbers. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and roundin |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Narrative (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Customer | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Jan. 01, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Foreign currency transaction gains (losses), net of related hedging impact | $ (9,200) | $ (9,100) | $ 5,700 | |
Cash equivalents | 855,600 | 535,100 | ||
Advertising expense | 676,400 | 693,400 | 691,200 | |
Cooperate advertising expense | 55,800 | 59,300 | 60,200 | |
Shipping and handling cost | 326,900 | 344,500 | 305,900 | |
Royalty expenses | $ 11,300 | 12,800 | 12,800 | |
Number of largest customers | Customer | 10 | |||
Excess tax benefits | $ 29,300 | |||
Excess tax benefits | 22,870 | 28,090 | $ 41,725 | |
Retained earnings | $ 2,545,458 | $ 3,128,731 | ||
Sales Revenue, Net | Customer Concentration Risk | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk, percentage | 21.00% | |||
Sales Revenue, Net | Customer Concentration Risk | Largest Customer | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk, percentage | 9.00% | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of intangible assets | 3 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of intangible assets | 30 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 10 years | |||
Building | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 40 years | |||
Land and Building | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Leases term | 3 years | |||
Land and Building | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Leases term | 15 years | |||
Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Leases term | 2 years | |||
Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Leases term | 5 years | |||
New Accounting Pronouncement, Early Adoption, Effect | Subsequent Event | Accounting Standards Update 2016-16 | ||||
Property, Plant and Equipment [Line Items] | ||||
Other assets | $ 234,000 | |||
Retained earnings | $ (234,000) |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Impact of Accounting Standards on Cash Flow Provided by Operating and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash provided by operating activities | $ 1,477,919 | $ 1,203,430 | $ 1,762,066 |
Cash used by financing activities | $ (1,076,879) | (840,215) | (1,171,858) |
Accounting Standards Update 2016-09 | As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash provided by operating activities | 1,146,510 | 1,697,629 | |
Cash used by financing activities | (783,295) | (1,107,421) | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash provided by operating activities | 56,920 | 64,437 | |
Cash used by financing activities | $ (56,920) | $ (64,437) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations - Contemporary Brands - USD ($) $ in Millions | Aug. 26, 2016 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of business | $ 116.9 | |
After-tax loss on sale | $ 104.4 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Major Line Items included in Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss from discontinued operations, net of tax | $ 0 | $ (4,545) | $ (97,279) | $ 3,403 | $ (94,320) | $ 2,229 | $ 2,969 | $ 5,584 | $ (98,421) | $ (83,538) | $ (280,244) |
Contemporary Brands | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | 187,821 | 344,089 | 400,431 | ||||||||
Cost of goods sold | 85,303 | 158,101 | 175,310 | ||||||||
Selling, general and administrative expenses | 99,295 | 169,357 | 189,349 | ||||||||
Impairment of goodwill and intangible assets | 0 | 143,562 | 396,362 | ||||||||
Interest income (expense), net | (109) | (642) | (621) | ||||||||
Other income (expense), net | 3 | 627 | 1 | ||||||||
Pre-tax income (loss) from discontinued operations | 3,117 | (126,946) | (361,210) | ||||||||
Pre-tax loss on the disposal of discontinued operations | (154,275) | 0 | 0 | ||||||||
Total pre-tax loss from discontinued operations | (151,158) | (126,946) | (361,210) | ||||||||
Income tax benefit | 52,737 | 43,408 | 80,966 | ||||||||
Loss from discontinued operations, net of tax | $ (98,421) | $ (83,538) | $ (280,244) |
Discontinued Operations - Sum63
Discontinued Operations - Summary of Carrying Amounts of Assets and Liabilities for Discontinued Operations (Details) - Contemporary Brands - Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 0 | $ 29,596 |
Inventories | 0 | 56,634 |
Other current assets, including cash and equivalents | 0 | 2,946 |
Property, plant and equipment | 0 | 42,668 |
Intangible assets | 0 | 164,008 |
Other assets | 0 | 3,355 |
Total assets of discontinued operations | 0 | 299,207 |
Current portion of long-term debt | 0 | 9,928 |
Accounts payable | 0 | 8,988 |
Accrued liabilities | 0 | 7,102 |
Other liabilities | 0 | 10,915 |
Total liabilities of discontinued operations | $ 0 | $ 36,933 |
Discontinued Operations - Sum64
Discontinued Operations - Summary of Cash Flows Line Items for Discontinued Operations (Details) - Contemporary Brands - Discontinued Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation and amortization | $ 4,581 | $ 17,673 | $ 24,006 |
Capital expenditures | 719 | 5,663 | 10,308 |
Impairment of goodwill and intangible assets | $ 0 | $ 143,562 | $ 396,362 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 1,218,809 | $ 1,313,237 |
Less allowance for doubtful accounts | 21,131 | 23,275 |
Accounts receivable, net | 1,197,678 | 1,289,962 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 1,147,942 | 1,240,654 |
Royalty and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 70,867 | $ 72,583 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2015 | |
Receivables [Abstract] | ||||
Maximum amount of accounts receivable sold at any point in time | $ 367.5 | $ 237.5 | ||
Decrease in receivables related to balances sold | 209.5 | $ 144.9 | ||
Sale of accounts receivable | 1,333.9 | 1,340.9 | ||
Funding fee | $ 3.4 | $ 1.9 | $ 1.7 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,321,511 | $ 1,313,646 |
Work-in-process | 99,536 | 94,355 |
Raw materials | 148,278 | 147,359 |
Total inventories | $ 1,569,325 | $ 1,555,360 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 2,375,382 | $ 2,311,245 |
Less accumulated depreciation and amortization | 1,435,732 | 1,365,754 |
Property, plant and equipment, net | 939,650 | 945,491 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 87,510 | 93,923 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 998,999 | 983,666 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 1,288,873 | $ 1,233,656 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Apr. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, net carrying amount | $ 272,327 | $ 246,030 | |
Intangible assets, net | $ 1,839,698 | $ 1,948,611 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 20 years | 20 years | |
Amortizable intangible assets, cost | $ 268,417 | $ 275,385 | |
Amortizable intangible assets, accumulated amortization | 131,029 | 119,338 | |
Amortizable intangible assets, net carrying amount | $ 137,388 | $ 156,047 | |
License agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 23 years | 24 years | |
Amortizable intangible assets, cost | $ 175,084 | $ 179,626 | |
Amortizable intangible assets, accumulated amortization | 97,941 | 93,086 | |
Amortizable intangible assets, net carrying amount | $ 77,143 | $ 86,540 | |
Trademark | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 16 years | ||
Amortizable intangible assets, cost | $ 58,132 | ||
Amortizable intangible assets, accumulated amortization | 3,633 | ||
Amortizable intangible assets, net carrying amount | $ 54,499 | $ 58,100 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 10 years | 11 years | |
Amortizable intangible assets, cost | $ 6,036 | $ 5,636 | |
Amortizable intangible assets, accumulated amortization | 2,739 | 2,193 | |
Amortizable intangible assets, net carrying amount | 3,297 | 3,443 | |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets: Trademarks and trade names | $ 1,567,371 | $ 1,702,581 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Apr. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets balance | $ 272,327,000 | $ 272,327,000 | $ 246,030,000 | ||
Impairment of intangible assets | 0 | $ 0 | |||
Amortization of intangible assets | 28,400,000 | $ 25,100,000 | $ 29,900,000 | ||
Estimated amortization expense, 2017 | 30,700,000 | 30,700,000 | |||
Estimated amortization expense, 2018 | 30,100,000 | 30,100,000 | |||
Estimated amortization expense, 2019 | 29,400,000 | 29,400,000 | |||
Estimated amortization expense, 2020 | 21,500,000 | 21,500,000 | |||
Estimated amortization expense, 2021 | 20,500,000 | 20,500,000 | |||
Trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets balance | 54,499,000 | $ 54,499,000 | $ 58,100,000 | ||
Estimated useful lives of intangible assets | 16 years | ||||
lucy | Trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of indefinite lived intangible assets | $ 40,300,000 | ||||
Outdoor & Action Sports | lucy | Trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of indefinite lived intangible assets | $ 40,300,000 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 1,788,407,000 | $ 1,824,956,000 | |
Impairment charge | (39,344,000) | 0 | $ 0 |
Currency translation | (12,104,000) | (36,549,000) | |
Goodwill, ending balance | 1,736,959,000 | 1,788,407,000 | 1,824,956,000 |
Outdoor & Action Sports | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,359,475,000 | 1,389,453,000 | |
Impairment charge | (39,344,000) | ||
Currency translation | (9,998,000) | (29,978,000) | |
Goodwill, ending balance | 1,310,133,000 | 1,359,475,000 | 1,389,453,000 |
Jeanswear | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 212,871,000 | 219,442,000 | |
Impairment charge | 0 | ||
Currency translation | (2,106,000) | (6,571,000) | |
Goodwill, ending balance | 210,765,000 | 212,871,000 | 219,442,000 |
Imagewear | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 58,747,000 | 58,747,000 | |
Impairment charge | 0 | ||
Currency translation | 0 | 0 | |
Goodwill, ending balance | 58,747,000 | 58,747,000 | 58,747,000 |
Sportswear | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 157,314,000 | 157,314,000 | |
Impairment charge | 0 | ||
Currency translation | 0 | 0 | |
Goodwill, ending balance | $ 157,314,000 | $ 157,314,000 | $ 157,314,000 |
Goodwill - Narrative (Detail)
Goodwill - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Goodwill [Line Items] | ||||
Goodwill impairment charges | $ 39,344,000 | $ 0 | $ 0 | |
Outdoor & Action Sports | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charges | 39,344,000 | |||
Cumulative impairment charges | $ 82,700,000 | 82,700,000 | 43,400,000 | |
Sportswear | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charges | 0 | |||
Cumulative impairment charges | 58,500,000 | 58,500,000 | $ 58,500,000 | |
lucy | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charges | $ 39,300,000 | $ 39,300,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Other Assets [Abstract] | ||
Deferred charge (Note P) | $ 276,473 | $ 0 |
Computer software, net of accumulated amortization of $133,324 in 2016 and $99,069 in 2015 | 195,176 | 177,642 |
Investments held for deferred compensation plans (Note M) | 194,362 | 205,283 |
Deferred income taxes (Note P) | 42,231 | 39,246 |
Pension assets (Note M) | 41,281 | 9,273 |
Deposits | 36,318 | 36,485 |
Partnership stores and shop-in-shop costs, net of accumulated amortization of $110,765 in 2016 and $96,546 in 2015 | 35,298 | 45,365 |
Derivative financial instruments (Note U) | 18,821 | 12,995 |
Other investments | 11,217 | 10,706 |
Deferred line of credit issuance costs | 1,545 | 1,596 |
Other | 77,160 | 45,275 |
Other assets | $ 929,882 | $ 583,866 |
Other Assets - Schedule of Ot74
Other Assets - Schedule of Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Other Assets [Abstract] | ||
Computer software, accumulated amortization | $ 133,324 | $ 99,069 |
Partnership stores and shop-in-shop costs, accumulated amortization | $ 110,765 | $ 96,546 |
Short-term Borrowings - Summary
Short-term Borrowings - Summary of Short-Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Disclosure [Abstract] | ||
Commercial paper borrowings | $ 0 | $ 423,000 |
International borrowing arrangements | 26,029 | 26,590 |
Short-term borrowings | $ 26,029 | $ 449,590 |
Short-term Borrowings - Narrati
Short-term Borrowings - Narrative (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($)extension | Jun. 30, 2016USD ($) | Jan. 02, 2016USD ($) | Apr. 30, 2015USD ($) | |
Short-term Debt [Line Items] | ||||
Number of credit facility extensions | extension | 2 | |||
Extension period | 1 year | |||
Restricted covenants | 60.00% | |||
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Credit facility amount outstanding | $ 0 | $ 423,000,000 | ||
Global Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility fee | 7.00% | |||
Credit facility amount available for borrowing | $ 2,230,000,000 | |||
Global Credit Facility | Letter of Credit | ||||
Short-term Debt [Line Items] | ||||
Letter of credit sublimit | $ 50,000,000 | |||
Global Credit Facility | LIBOR | ||||
Short-term Debt [Line Items] | ||||
Debt instrument basis spread on variable rate | 80.50% | |||
International Lending Agreements | ||||
Short-term Debt [Line Items] | ||||
Debt capacity | $ 120,100,000 | |||
Credit facility amount outstanding | $ 26,000,000 | $ 26,600,000 | ||
Weighted average interest rate of international bank borrowings | 7.20% | 6.00% | ||
Senior Unsecured | Global Credit Facility | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Debt capacity | $ 1,750,000,000 | |||
Senior Unsecured | Global Credit Facility | Letter of Credit | ||||
Short-term Debt [Line Items] | ||||
Debt capacity | $ 16,100,000 | |||
Senior Unsecured | Global Credit Facility | Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Debt capacity | $ 2,250,000,000 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Accrued Liabilities [Abstract] | |||
Compensation | $ 159,298 | $ 169,047 | |
Other taxes | 129,340 | 123,051 | |
Income taxes | 70,154 | 59,779 | |
Restructuring (Note W) | 53,598 | 0 | |
Customer discounts and allowances | 45,277 | 35,179 | |
Advertising | 43,520 | 56,338 | |
Freight, duties and postage | 43,247 | 51,447 | |
Deferred compensation (Note M) | 34,498 | 29,491 | |
Interest | 19,899 | 16,918 | |
Derivative financial instruments (Note U) | 18,574 | 25,776 | |
Insurance | 17,541 | 16,669 | |
Product warranty claims (Note L) | 12,993 | 13,550 | $ 14,467 |
Pension liabilities (Note M) | 10,669 | 8,480 | |
Other | 182,430 | 176,423 | |
Accrued liabilities | $ 841,038 | $ 782,148 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||
Capital leases | $ 17,795 | $ 21,146 |
Total long-term debt | 2,292,869 | 1,405,171 |
Less current portion | 253,689 | 3,351 |
Long-term debt, due beyond one year | 2,039,180 | 1,401,820 |
Notes Payable | 5.95% notes, due 2017 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 249,823 | 249,586 |
Notes Payable | 3.50% notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 497,128 | 496,566 |
Notes Payable | 6.00% notes, due 2033 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 292,251 | 291,948 |
Notes Payable | 6.45% notes, due 2037 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 346,112 | 345,925 |
0.625% notes, due 2023 | Notes Payable | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 889,760 | $ 0 |
Long-term Debt - Schedule of 79
Long-term Debt - Schedule of Long-term Debt - Additional Information (Detail) - Notes Payable | Dec. 31, 2016 | Sep. 30, 2016 | Jan. 02, 2016 |
5.95% notes, due 2017 | |||
Debt Instrument [Line Items] | |||
Notes, stated percentage | 5.95% | 5.95% | |
3.50% notes, due 2021 | |||
Debt Instrument [Line Items] | |||
Notes, stated percentage | 3.50% | 3.50% | |
6.00% notes, due 2033 | |||
Debt Instrument [Line Items] | |||
Notes, stated percentage | 6.00% | 6.00% | |
6.45% notes, due 2037 | |||
Debt Instrument [Line Items] | |||
Notes, stated percentage | 6.45% | 6.45% | |
0.625% notes, due 2023 | |||
Debt Instrument [Line Items] | |||
Notes, stated percentage | 0.625% | 0.625% |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Sep. 30, 2016EUR (€) | Jan. 02, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.00% | |||
Assets under capital lease | $ 42,700,000 | |||
Accumulated amortization of assets under capital lease | 30,300,000 | $ 27,400,000 | ||
Notes Payable | 6.00% notes, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Long - term debt, face amount | $ 300,000,000 | |||
Notes, stated percentage | 6.00% | 6.00% | 6.00% | |
Cross - acceleration trigger, other note | $ 50,000,000 | |||
Additional Basis point | 15.00% | |||
Effective annual interest rate | 6.19% | 6.19% | ||
Notes Payable | 5.95% notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long - term debt, face amount | $ 250,000,000 | |||
Notes, stated percentage | 5.95% | 5.95% | 5.95% | |
Cross - acceleration trigger, other note | $ 100,000,000 | |||
Repurchase obligation percentage | 101.00% | |||
Additional Basis point | 20.00% | |||
Notes Payable | 3.50% notes, due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long - term debt, face amount | $ 500,000,000 | |||
Notes, stated percentage | 3.50% | 3.50% | 3.50% | |
Cross - acceleration trigger, other note | $ 100,000,000 | |||
Repurchase obligation percentage | 101.00% | |||
Redemption price percentage | 100.00% | |||
Additional Basis point | 20.00% | |||
Effective annual interest rate | 4.69% | 4.69% | ||
Notes Payable | 6.45% notes, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long - term debt, face amount | $ 350,000,000 | |||
Notes, stated percentage | 6.45% | 6.45% | 6.45% | |
Cross - acceleration trigger, other note | $ 100,000,000 | |||
Repurchase obligation percentage | 101.00% | |||
Additional Basis point | 25.00% | |||
Capital Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Effective annual interest rate | 5.06% | 5.06% | ||
0.625% notes, due 2023 | Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Long - term debt, face amount | € | € 850,000,000 | € 850,000,000 | ||
Notes, stated percentage | 0.625% | 0.625% | 0.625% | |
Cross - acceleration trigger, other note | $ 100,000,000 | |||
Repurchase obligation percentage | 101.00% | |||
Redemption price percentage | 100.00% | |||
Additional Basis point | 15.00% | |||
Effective annual interest rate | 0.712% | 0.712% |
Long-term Debt - Schedule of 81
Long-term Debt - Schedule of Long-term Debt and Future Minimum Lease Payments for Capital Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Debt Disclosure [Abstract] | ||
2017, Notes and Other | $ 250,000 | |
2018, Notes and Other | 0 | |
2019, Notes and Other | 0 | |
2020, Notes and Other | 0 | |
2021, Notes and Other | 500,000 | |
Thereafter, notes and other | 1,546,495 | |
Total, notes and other | 2,296,495 | |
Less unamortized debt discount, notes and other | 7,630 | |
Less unamortized debt issuance costs | 13,791 | |
Less amounts representing interest, notes and other | 0 | |
Total long-term debt, notes and other | 2,275,074 | |
Less current portion, notes and other | 250,000 | |
Long-term debt, due beyond one year, notes and other | 2,025,074 | |
2017, Capital Lease | 4,504 | |
2018, Capital Lease | 4,504 | |
2019, Capital Lease | 4,504 | |
2020, Capital Lease | 4,504 | |
2021, Capital Lease | 1,877 | |
Thereafter, capital lease | 0 | |
Total, capital leases | 19,893 | |
Less amounts representing interest, capital lease | 2,098 | |
Total long-term debt, capital lease | 17,795 | $ 21,146 |
Less current portion, capital lease | 3,689 | |
Long-term debt, due beyond one year, capital lease | 14,106 | |
2017, Total | 254,504 | |
2018, Total | 4,504 | |
2019, Total | 4,504 | |
2020, Total | 4,504 | |
2021, Total | 501,877 | |
Thereafter, total | 1,546,495 | |
Total | 2,316,388 | |
Less unamortized debt discount, total | 7,630 | |
Less unamortized debt issuance costs | 13,791 | |
Less amounts representing interest, total | 2,098 | |
Total long-term debt | 2,292,869 | 1,405,171 |
Less current portion, total | 253,689 | 3,351 |
Long-term debt, due beyond one year, total | $ 2,039,180 | $ 1,401,820 |
Other Liabilities - Components
Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Other Liabilities Disclosure [Abstract] | |||
Deferred income taxes (Note P) | $ 220,618 | $ 241,409 | |
Deferred compensation (Note M) | 198,256 | 223,232 | |
Income taxes | 181,629 | 79,975 | |
Pension liabilities (Note M) | 165,642 | 157,434 | |
Deferred rent credits | 89,835 | 84,960 | |
Product warranty claims | 49,879 | 49,564 | $ 47,821 |
Derivative financial instruments (Note U) | 7,000 | 2,256 | |
Other | 60,927 | 61,426 | |
Other liabilities | $ 973,786 | $ 900,256 |
Other Liabilities - Accrued Pro
Other Liabilities - Accrued Product Warranty Claims (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance, beginning of year | $ 63,114 | $ 62,288 | $ 57,139 |
Accrual for products sold during the year | 12,022 | 16,673 | 20,971 |
Repair or replacement costs incurred | (11,956) | (14,136) | (13,660) |
Currency translation | (308) | (1,711) | (2,162) |
Balance, end of year | 62,872 | 63,114 | 62,288 |
Less current portion | 12,993 | 13,550 | 14,467 |
Long-term portion | $ 49,879 | $ 49,564 | $ 47,821 |
Retirement and Savings Benefi84
Retirement and Savings Benefit Plans - Narrative (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($)participant | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of U.S. plan | 92.00% | 92.00% | ||
Projected benefit obligation | 90.00% | |||
Project benefit obligation amortized over five years minimum | 20.00% | |||
Number of years amortized | 5 years | |||
Projected benefit obligations amortized over the expected average remaining service of active participants minimum | 10.00% | |||
Projected benefit obligations amortized over the expected average remaining service of active participants maximum | 20.00% | |||
Plan assets or projected benefit obligations unamortized, maximum percentage | 10.00% | |||
Deferred actuarial losses to be amortized to pension expenses | $ 45,400 | |||
Estimated amortization of prior service cost, next period | 2,900 | |||
VF contributions | $ 250,000 | |||
Estimated future benefit payments, 2017 | $ 89,700 | 89,700 | ||
Estimated future benefit payments, 2018 | 93,000 | 93,000 | ||
Estimated future benefit payments, 2019 | 96,400 | 96,400 | ||
Estimated future benefit payments, 2020 | 100,500 | 100,500 | ||
Estimated future benefit payments, 2021 | 103,100 | 103,100 | ||
Estimated future benefit payments, 2022-2026 | 543,000 | 543,000 | ||
VF's current liability to participants of the deferred compensation plans | 34,498 | 34,498 | 29,491 | |
VF's liability to participants of the deferred compensation plans, expected to be paid beyond one year | 198,256 | $ 198,256 | 223,232 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of participants that accepted a distribution | participant | 9,400 | |||
Percentage of eligible participants | 66.00% | |||
Reduction in the total number of participants | (23.00%) | |||
Lump-sum distribution | 197,100 | |||
Settled projected benefit obligation | 224,700 | |||
Pension settlement charge | $ (50,922) | (4,062) | $ 0 | |
VF contributions | 24,031 | 273,520 | ||
Other Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
VF contribution, next fiscal year | 17,000 | |||
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plans expense | 1,800 | 2,500 | 5,700 | |
Deferred compensation liability, current and noncurrent | 232,800 | 232,800 | ||
VF's current liability to participants of the deferred compensation plans | 34,500 | 34,500 | ||
VF's liability to participants of the deferred compensation plans, expected to be paid beyond one year | 198,300 | 198,300 | ||
Fair value of investments | 225,400 | 225,400 | ||
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans expense | 45,200 | $ 47,000 | $ 31,600 | |
Other Current Assets | Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of investments | 31,000 | 31,000 | ||
Other Assets | Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of investments | $ 194,400 | $ 194,400 |
Retirement and Savings Benefi85
Retirement and Savings Benefit Plans - Components of Pension Cost (Detail) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost — benefits earned during the year | $ 25,839 | $ 29,223 | $ 24,163 |
Interest cost on projected benefit obligations | 68,020 | 77,620 | 81,496 |
Expected return on plan assets | (99,540) | (111,095) | (90,674) |
Settlement charges | 50,922 | 4,062 | 0 |
Amortization of deferred amounts, Net deferred actuarial losses | 65,212 | 61,966 | 37,518 |
Amortization of deferred amounts, Deferred prior service costs | 2,584 | 3,038 | 5,445 |
Total pension expense | $ 113,037 | $ 64,814 | $ 57,948 |
Weighted average actuarial assumptions used to determine pension expense: | |||
Discount rate in effect for determining service cost | 4.54% | 3.93% | 4.64% |
Discount rate in effect for determining interest cost | 3.56% | 3.93% | 4.64% |
Expected long-term return on plan assets | 5.81% | 6.05% | 4.73% |
Rate of compensation increase | 3.90% | 3.91% | 3.53% |
Retirement and Savings Benefi86
Retirement and Savings Benefit Plans - Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Fair value of plan assets | |||
VF contributions | $ 250,000 | ||
Amounts included in Consolidated Balance Sheets: | |||
Noncurrent assets | $ 41,281 | 9,273 | |
Current liabilities | (10,669) | (8,480) | |
Noncurrent liabilities | (165,642) | (157,434) | |
Pension Plan | |||
Fair value of plan assets | |||
Fair value of plan assets, beginning of year | 1,755,374 | 1,628,254 | |
Actual return on plan assets | 191,219 | (56,624) | |
VF contributions | 24,031 | 273,520 | |
Participant contributions | 3,644 | 3,483 | |
Benefits paid | (286,271) | (87,994) | |
Currency translation | (14,700) | (5,265) | |
Fair value of plan assets, end of year | 1,673,297 | 1,755,374 | $ 1,628,254 |
Projected benefit obligations | |||
Projected benefit obligations, beginning of year | 1,912,015 | 1,999,947 | |
Service cost | 25,839 | 29,223 | 24,163 |
Interest cost | 68,020 | 77,620 | 81,496 |
Participant contributions | 3,644 | 3,483 | |
Actuarial loss (gain) | 100,242 | (101,387) | |
Benefits paid | (286,271) | (87,994) | |
Plan amendments | 0 | (1,510) | |
Currency translation | (15,162) | (7,367) | |
Projected benefit obligations, end of year | 1,808,327 | 1,912,015 | $ 1,999,947 |
Funded status, end of year | (135,030) | (156,641) | |
Amounts included in Consolidated Balance Sheets: | |||
Noncurrent assets | 41,281 | 9,273 | |
Current liabilities | (10,669) | (8,480) | |
Noncurrent liabilities | (165,642) | (157,434) | |
Funded status | (135,030) | (156,641) | |
Accumulated other comprehensive loss, pre-tax: | |||
Net deferred actuarial losses | 476,071 | 586,828 | |
Deferred prior service costs | 14,883 | 17,459 | |
Total accumulated other comprehensive loss, pre-tax | 490,954 | 604,287 | |
Accumulated benefit obligations | $ 1,717,786 | $ 1,827,521 | |
Weighted average actuarial assumptions used to determine pension obligations: | |||
Discount rate | 3.87% | 4.29% | |
Rate of compensation increase | 3.78% | 3.90% |
Retirement and Savings Benefi87
Retirement and Savings Benefit Plans - Fair Value of Investments Held by Defined Benefit Plan (Detail) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets in the fair value hierarchy | $ 66,425 | $ 53,218 | |
Total plan assets measured at net asset value | 1,606,872 | 1,702,156 | |
Total plan assets | 1,673,297 | 1,755,374 | $ 1,628,254 |
Cash equivalents | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets measured at net asset value | 27,486 | 23,538 | |
Total plan assets | 2,896 | 2,790 | |
U.S. Treasury and government agencies | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 10 | 11 | |
Corporate and international bonds | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets measured at net asset value | 1,140,894 | 1,232,691 | |
Alternative investments | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets measured at net asset value | 161,466 | 159,481 | |
Insurance contracts | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 63,013 | 50,856 | |
Commodities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 506 | (439) | |
Domestic | Equity Securities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets measured at net asset value | 134,254 | 107,190 | |
International | Equity Securities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets measured at net asset value | 142,772 | 179,256 | |
Level 1 | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 3,402 | 2,351 | |
Level 1 | Cash equivalents | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 2,896 | 2,790 | |
Level 1 | U.S. Treasury and government agencies | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 1 | Insurance contracts | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 1 | Commodities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 506 | (439) | |
Level 2 | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 63,023 | 50,867 | |
Level 2 | Cash equivalents | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 2 | U.S. Treasury and government agencies | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 10 | 11 | |
Level 2 | Insurance contracts | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 63,013 | 50,856 | |
Level 2 | Commodities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 3 | Cash equivalents | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 3 | U.S. Treasury and government agencies | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 3 | Insurance contracts | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | 0 | 0 | |
Level 3 | Commodities | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Total plan assets | $ 0 | $ 0 |
Capital and Accumulated Other88
Capital and Accumulated Other Comprehensive Loss - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Equity [Abstract] | |||
Common Stock, shares, purchased (in shares) | 15,900,000 | ||
Common Stock, value, purchased | $ 1,000 | ||
Treasury shares restored as unissued status (in shares) | 16,055,057 | 10,100,000 | 12,100,000 |
Treasury shares (in shares) | 0 | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common Stock held in trust for deferred compensation plans (in shares) | 8,300 | ||
Common Stock held in trust for deferred compensation plan | $ 0.5 |
Capital and Accumulated Other89
Capital and Accumulated Other Comprehensive Loss - Shares Held for Deferred Compensation Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Equity [Abstract] | |||
Shares held for deferred compensation plans (in shares) | 439,667 | 562,649 | 637,504 |
Cost of shares held for deferred compensation plans | $ 5,464 | $ 6,823 | $ 7,724 |
Capital and Accumulated Other90
Capital and Accumulated Other Comprehensive Loss - Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Equity [Abstract] | ||
Foreign currency translation and other | $ (794,579) | $ (718,169) |
Defined benefit pension plans | (302,697) | (372,195) |
Derivative financial instruments | 55,813 | 47,142 |
Accumulated other comprehensive loss | $ (1,041,463) | $ (1,043,222) |
Capital and Accumulated Other91
Capital and Accumulated Other Comprehensive Loss - Changes in Accumulated OCI, Net of Related Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 5,384,838 | ||
Other comprehensive income (loss) before reclassifications | 269 | $ (342,841) | $ (536,636) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,490 | 1,891 | 46,084 |
Other comprehensive income (loss) | 1,759 | (340,950) | (490,552) |
Ending balance | 4,940,921 | 5,384,838 | |
Foreign Currency Translation and Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (718,169) | (356,941) | 106,647 |
Other comprehensive income (loss) before reclassifications | (76,410) | (361,228) | (463,588) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Other comprehensive income (loss) | (76,410) | (361,228) | (463,588) |
Ending balance | (794,579) | (718,169) | (356,941) |
Defined Benefit Pension Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (372,195) | (377,134) | (277,451) |
Other comprehensive income (loss) before reclassifications | (4,357) | (37,238) | (126,275) |
Amounts reclassified from accumulated other comprehensive income (loss) | 73,855 | 42,177 | 26,592 |
Other comprehensive income (loss) | 69,498 | 4,939 | (99,683) |
Ending balance | (302,697) | (372,195) | (377,134) |
Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 47,142 | 31,389 | (41,754) |
Other comprehensive income (loss) before reclassifications | 81,036 | 55,325 | 53,651 |
Amounts reclassified from accumulated other comprehensive income (loss) | (72,365) | (39,572) | 19,492 |
Other comprehensive income (loss) | 8,671 | 15,753 | 73,143 |
Ending balance | 55,813 | 47,142 | 31,389 |
Marketable Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 414 | 838 |
Other comprehensive income (loss) before reclassifications | 0 | 300 | (424) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (714) | 0 |
Other comprehensive income (loss) | 0 | (414) | (424) |
Ending balance | 0 | 0 | 414 |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,043,222) | (702,272) | (211,720) |
Ending balance | $ (1,041,463) | $ (1,043,222) | $ (702,272) |
Capital and Accumulated Other92
Capital and Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net deferred actuarial losses | $ 65,212 | $ 61,966 | $ 37,518 | ||||||||
Deferred prior service costs | 2,584 | 3,038 | 5,445 | ||||||||
Selling, general and administrative expenses | (4,243,798) | (4,009,029) | (3,970,536) | ||||||||
Net sales | 11,902,314 | 11,909,635 | 11,757,399 | ||||||||
Cost of goods sold | (6,196,335) | (6,235,699) | (6,112,880) | ||||||||
Other income (expense), net | 2,001 | 1,028 | (5,545) | ||||||||
Interest expense | (94,730) | (88,772) | (86,104) | ||||||||
Income from continuing operations before income taxes | 1,415,591 | 1,707,335 | 1,713,576 | ||||||||
Tax benefit (expense) | (243,064) | (392,204) | (385,827) | ||||||||
Net income | $ 264,333 | $ 498,489 | $ 51,015 | $ 260,269 | $ 312,209 | $ 459,864 | $ 170,811 | $ 288,709 | 1,074,106 | 1,231,593 | 1,047,505 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | (1,490) | (1,891) | (46,084) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pension plans | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net deferred actuarial losses | (65,212) | (61,966) | (37,518) | ||||||||
Deferred prior service costs | (2,584) | (3,038) | (5,445) | ||||||||
Selling, general and administrative expenses | (50,922) | (4,062) | 0 | ||||||||
Income from continuing operations before income taxes | (118,718) | (69,066) | (42,963) | ||||||||
Tax benefit (expense) | 44,863 | 26,889 | 16,371 | ||||||||
Net income | (73,855) | (42,177) | (26,592) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on derivative financial instruments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative expenses | (4,314) | (1,885) | 0 | ||||||||
Net sales | 28,798 | (68,543) | (18,071) | ||||||||
Cost of goods sold | 84,613 | 132,432 | (8,756) | ||||||||
Other income (expense), net | 2,864 | 7,267 | (1,189) | ||||||||
Interest expense | (4,504) | (4,295) | (4,095) | ||||||||
Income from continuing operations before income taxes | 107,457 | 64,976 | (32,111) | ||||||||
Tax benefit (expense) | (35,092) | (25,404) | 12,619 | ||||||||
Net income | 72,365 | 39,572 | (19,492) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on sale of marketable securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense), net | 0 | 1,177 | 0 | ||||||||
Tax benefit (expense) | 0 | (463) | 0 | ||||||||
Net income | $ 0 | $ 714 | $ 0 |
Stock-based Compensation - Tota
Stock-based Compensation - Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation cost | $ 67,762 | $ 73,420 | $ 104,313 |
Income tax benefits | 22,870 | 28,090 | 41,725 |
Stock-based compensation costs included in inventory | $ 1,332 | $ 1,345 | $ 797 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost related to nonvested stock-based compensation | $ 37.5 | ||
Total unrecognized compensation cost related to nonvested stock-based compensation, period of recognition (years) | 1 year | ||
Shares available for future grant (in shares) | 38,898,271 | ||
Share based compensation vesting period | 3 years | ||
Award expiration period from grant date | 10 years | ||
Total fair value of stock option vested | $ 26.7 | $ 25.9 | $ 22.6 |
Total intrinsic value of stock options exercised | $ 86.6 | $ 132.8 | $ 143.7 |
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] | |||
Share based compensation vesting period | 3 years | ||
Award expiration period from grant date | 3 years | ||
Baseline profitability goal period | 3 years | ||
Performance period, years | 3 years | ||
Percentage of targets award adjusted to actual number of shares earned | 25.00% | ||
Grant date fair value of each restricted units granted (in USD per share) | $ 61.31 | $ 75.33 | $ 56.86 |
Total market value of awards outstanding | $ 79.7 | ||
Share earned in period (in shares) | 480,855 | 1,067,426 | 1,290,354 |
Market value of shares vested | $ 24.3 | $ 61.9 | $ 88.4 |
Performance-Based Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 0 | ||
Performance-Based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 2 | ||
TSR Adjustment Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of each restricted units granted (in USD per share) | $ 4.48 | $ 3.78 | $ 1.41 |
Nonperformance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation vesting period | 4 years | ||
Grant date fair value of each restricted units granted (in USD per share) | $ 61.83 | $ 71.17 | $ 58 |
Total market value of awards outstanding | $ 15.9 | ||
Nonperformance-Based Restricted Stock Units | Non employee Members of Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period from grant date | 1 year | ||
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of each restricted units granted (in USD per share) | $ 61.66 | ||
Share earned in period (in shares) | 72,862 | ||
Market value of shares vested | $ 3.9 | $ 14.1 | $ 20.1 |
Fair value of restricted stock | $ 33.2 | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation vesting period | 5 years |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 21.00% | 19.00% | 23.00% |
Expected volatility, maximum | 29.00% | 29.00% | 29.00% |
Weighted average expected volatility | 24.00% | 22.00% | 26.00% |
Weighted average dividend yield | 2.20% | 2.00% | 2.10% |
Risk-free interest rate, minimum | 0.40% | 0.70% | 0.10% |
Risk-free interest rate, maximum | 1.70% | 2.30% | 2.70% |
Weighted average fair value at date of grant (in USD per share) | $ 12.08 | $ 13.72 | $ 12.01 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months 18 days | 5 years 10 months 24 days | 5 years 6 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 7 years 7 months 6 days | 7 years 6 months | 7 years 3 months 18 days |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 14,715,410 |
Granted (in shares) | shares | 3,132,609 |
Exercised (in shares) | shares | (2,515,180) |
Forfeited/cancelled (in shares) | shares | (552,656) |
Outstanding, ending balance (in shares) | shares | 14,780,183 |
Exercisable (in shares) | shares | 9,694,433 |
Weighted Average Exercise Price | |
Outstanding, beginning balance (in USD per share) | $ / shares | $ 41.73 |
Granted (in USD per share) | $ / shares | 61.31 |
Exercised (in USD per share) | $ / shares | 28.47 |
Forfeited/cancelled (in USD per share) | $ / shares | 62.04 |
Outstanding, ending balance (in USD per share) | $ / shares | 47.38 |
Exercisable, ending balance (in USD per share) | $ / shares | $ 38.37 |
Options outstanding, remaining contractual term | 6 years 5 months |
Options exercisable, remaining contractual term | 5 years 3 months |
Options outstanding, intrinsic value | $ | $ 180,400 |
Options exercisable, intrinsic value | $ | $ 180,394 |
Stock-based Compensation - RSU
Stock-based Compensation - RSU Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Performance-Based Restricted Stock Units | |||
Number Outstanding | |||
Nonvested shares, Beginning balance (in shares) | 1,649,630 | ||
Granted (in shares) | 605,658 | ||
Issued as Common Stock (in shares) | (672,883) | ||
Forfeited/cancelled (in shares) | (87,780) | ||
Nonvested shares, Ending balance (in shares) | 1,494,625 | 1,649,630 | |
Vested (in shares) | 924,326 | ||
Weighted Average Grant Date Fair Value | |||
Nonvested shares, Beginning balance (in USD per share) | $ 55.18 | ||
Granted (in USD per share) | 61.31 | $ 75.33 | $ 56.86 |
Issued as Common Stock (in USD per share) | 40.64 | ||
Forfeited/cancelled (in USD per share) | 64.15 | ||
Nonvested shares, Ending balance (in USD per share) | 63.68 | $ 55.18 | |
Vested (in USD per share) | $ 61.50 | ||
Nonperformance-Based Restricted Stock Units | |||
Number Outstanding | |||
Nonvested shares, Beginning balance (in shares) | 274,856 | ||
Granted (in shares) | 82,113 | ||
Issued as Common Stock (in shares) | (25,556) | ||
Forfeited/cancelled (in shares) | (32,500) | ||
Nonvested shares, Ending balance (in shares) | 298,913 | 274,856 | |
Vested (in shares) | 13,013 | ||
Weighted Average Grant Date Fair Value | |||
Nonvested shares, Beginning balance (in USD per share) | $ 49.64 | ||
Granted (in USD per share) | 61.83 | $ 71.17 | $ 58 |
Issued as Common Stock (in USD per share) | 53.19 | ||
Forfeited/cancelled (in USD per share) | 48.95 | ||
Nonvested shares, Ending balance (in USD per share) | 52.76 | $ 49.64 | |
Vested (in USD per share) | $ 61.29 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Detail) - Restricted Stock | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number Outstanding | |
Nonvested shares, Beginning balance (in shares) | shares | 594,637 |
Granted (in shares) | shares | 128,737 |
Dividend equivalents (in shares) | shares | 15,931 |
Vested (in shares) | shares | (72,862) |
Forfeited (in shares) | shares | (43,751) |
Nonvested shares, Ending balance (in shares) | shares | 622,692 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, Beginning balance (in USD per share) | $ / shares | $ 50.73 |
Granted (in USD per share) | $ / shares | 61.66 |
Dividend equivalents (in USD per share) | $ / shares | 59.85 |
Vested (in USD per share) | $ / shares | 43.87 |
Forfeited (in USD per share) | $ / shares | 58.83 |
Nonvested shares, Ending balance (in USD per share) | $ / shares | $ 53.45 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes, Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 404,878 | $ 853,630 | $ 815,081 |
Foreign | 1,010,713 | 853,705 | 898,495 |
Income from continuing operations before income taxes | $ 1,415,591 | $ 1,707,335 | $ 1,713,576 |
Income Taxes - Provision for100
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Current: | |||
Federal | $ 150,428 | $ 234,325 | $ 280,999 |
Foreign | 124,871 | 113,812 | 138,552 |
State | 39,390 | 36,979 | 44,340 |
Current Income Tax Expense (Benefit), Total | 314,689 | 385,116 | 463,891 |
Deferred: | |||
Federal and state | (63,610) | 401 | (78,362) |
Foreign | (8,015) | 6,687 | 298 |
Income taxes | $ 243,064 | $ 392,204 | $ 385,827 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported In Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ 495,457 | $ 597,567 | $ 599,752 |
State income taxes, net of federal tax benefit | 25,783 | 23,917 | 29,118 |
Foreign rate differences | (271,198) | (202,420) | (234,773) |
Stock compensation (federal) | (26,553) | 0 | 0 |
Other | 19,575 | (26,860) | (8,270) |
Income taxes | $ 243,064 | $ 392,204 | $ 385,827 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) $ / shares in Units, $ in Thousands, € in Millions | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Dec. 31, 2016USD ($)$ / shares | Jan. 02, 2016USD ($)$ / shares | Jan. 03, 2015USD ($)$ / shares | Jan. 10, 2017EUR (€) |
Operating Loss Carryforwards [Line Items] | ||||||
Foreign rate differences | $ 19,400 | $ 40,500 | $ 14,700 | |||
Amortization period of deferred charge | 20 years | |||||
Deferred charge | $ 14,600 | |||||
Foreign jurisdiction income tax reduction | $ 14,900 | |||||
Income tax reduction per diluted share (in USD per share) | $ / shares | $ 0.03 | |||||
Income taxes paid, net of refunds | 434,795 | 339,010 | $ 370,202 | |||
Undistributed earnings of international subsidiaries | 4,400,000 | |||||
Potential tax benefits for federal capital loss carryforwards, foreign operations | 121,300 | |||||
Portion of foreign operating loss carry forwards with unlimited carry forward life | 117,000 | |||||
Federal operating loss carry forwards | 2,100 | |||||
State operating loss carry forwards | 29,200 | |||||
Net increase in valuation allowance related to state operating loss and carryforwards | 4,500 | |||||
Net increase in valuation allowance related to foreign carryforwards and other deferred tax asset | 9,500 | |||||
Net unrecognized tax benefits including interest and penalties if recognized, would reduce the annual effective tax rate | 150,534 | 73,073 | ||||
Possible decrease in unrecognized income tax benefits | 27,900 | |||||
Reduction in income tax expenses | 25,200 | |||||
Foreign | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carry forwards valuation allowance | 91,300 | |||||
Other Foreign | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Foreign jurisdiction income tax reduction | $ 12,000 | $ 3,200 | $ 6,000 | |||
Income tax reduction per diluted share (in USD per share) | $ / shares | $ 0.03 | $ 0.01 | $ 0.01 | |||
Operating loss carry forwards valuation allowance | $ 6,800 | |||||
State | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carry forwards valuation allowance | 16,900 | |||||
Other Assets | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred charge | $ 291,100 | |||||
Belgium tax authority | VF Europe BVBA | Subsequent Event | Domestic Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax and interest related to excess profits | € | € 31.9 | |||||
Income taxes paid, net of refunds | $ 33,900 | € 31.9 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Deferred income tax assets: | ||
Inventories | $ 40,468 | $ 38,897 |
Deferred compensation | 88,249 | 96,397 |
Other employee benefits | 79,834 | 88,359 |
Stock compensation | 69,010 | 67,551 |
Other accrued expenses | 168,908 | 154,337 |
Operating loss carryforwards | 152,587 | 139,634 |
Gross deferred income tax assets | 599,056 | 585,175 |
Valuation allowances | (114,990) | (100,951) |
Net deferred income tax assets | 484,066 | 484,224 |
Deferred income tax liabilities: | ||
Depreciation | 33,919 | 27,756 |
Intangible assets | 569,767 | 591,615 |
Other deferred tax liabilities | 58,767 | 67,016 |
Deferred income tax liabilities | 662,453 | 686,387 |
Net deferred income tax assets (liabilities) | (178,387) | (202,163) |
Amounts included in the Consolidated Balance Sheets: | ||
Noncurrent assets | 42,231 | 39,246 |
Noncurrent liabilities | (220,618) | (241,409) |
Net deferred income tax assets (liabilities) | $ (178,387) | $ (202,163) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 85,046 | $ 130,823 | $ 135,988 |
Additions for current year tax positions | 121,025 | 13,470 | 12,850 |
Additions for prior year tax positions | 9,044 | 7,584 | 10,285 |
Reductions for prior year tax positions | (6,160) | (38,782) | (15,678) |
Reductions due to statute expirations | (16,320) | (14,308) | (9,806) |
Payments in settlement | (6,937) | (13,502) | (2,399) |
Currency translation | (23) | (239) | (417) |
Ending Balance | 185,675 | 85,046 | 130,823 |
Unrecognized Income Tax Benefits | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | 75,677 | 113,604 | 118,514 |
Additions for current year tax positions | 121,025 | 13,470 | 12,850 |
Additions for prior year tax positions | 6,164 | 4,396 | 5,252 |
Reductions for prior year tax positions | (4,798) | (32,432) | (12,898) |
Reductions due to statute expirations | (14,985) | (11,780) | (9,159) |
Payments in settlement | (6,108) | (11,437) | (657) |
Currency translation | (9) | (144) | (298) |
Ending Balance | 176,966 | 75,677 | 113,604 |
Accrued Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | 9,369 | 17,219 | 17,474 |
Additions for current year tax positions | 0 | 0 | 0 |
Additions for prior year tax positions | 2,880 | 3,188 | 5,033 |
Reductions for prior year tax positions | (1,362) | (6,350) | (2,780) |
Reductions due to statute expirations | (1,335) | (2,528) | (647) |
Payments in settlement | (829) | (2,065) | (1,742) |
Currency translation | (14) | (95) | (119) |
Ending Balance | $ 8,709 | $ 9,369 | $ 17,219 |
Income Taxes - Amounts Included
Income Taxes - Amounts Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized income tax benefits, including interest and penalties | $ 185,675 | $ 85,046 | $ 130,823 | $ 135,988 |
Less deferred tax benefits | 35,141 | 11,973 | ||
Total unrecognized tax benefits | $ 150,534 | $ 73,073 |
Business Segment Information -
Business Segment Information - Financial Information for Reportable Segments (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,320,574,000 | $ 3,488,226,000 | $ 2,445,259,000 | $ 2,764,944,000 | $ 3,326,279,000 | $ 3,529,626,000 | $ 2,426,986,000 | $ 2,749,764,000 | $ 12,019,003,000 | $ 12,032,655,000 | $ 11,881,730,000 |
Operating income | 320,121,000 | $ 635,428,000 | $ 211,424,000 | $ 332,253,000 | $ 538,035,000 | $ 639,563,000 | $ 218,980,000 | $ 391,349,000 | 1,499,226,000 | 1,787,927,000 | 1,798,314,000 |
Impairment of goodwill and intangible assets | (79,600,000) | (79,644,000) | 0 | 0 | |||||||
Corporate and other expenses | (349,287,000) | (265,166,000) | (287,890,000) | ||||||||
Interest expense, net | (85,636,000) | (81,620,000) | (79,193,000) | ||||||||
Income from continuing operations before income taxes | 1,415,591,000 | 1,707,335,000 | 1,713,576,000 | ||||||||
Restructuring charges | $ 58,100,000 | 54,697,000 | |||||||||
Restructuring costs and asset impairments | 58,091,000 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 1,930,158,000 | 2,054,121,000 | 2,080,659,000 | ||||||||
Restructuring charges | 43,300,000 | ||||||||||
Operating Segments | Outdoor & Action Sports | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,533,145,000 | 7,400,446,000 | 7,198,994,000 | ||||||||
Operating income | 1,226,208,000 | 1,266,763,000 | 1,312,963,000 | ||||||||
Restructuring costs and asset impairments | 17,401,000 | ||||||||||
Operating Segments | Jeanswear | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,737,701,000 | 2,792,244,000 | 2,801,754,000 | ||||||||
Operating income | 491,912,000 | 535,385,000 | 527,972,000 | ||||||||
Restructuring costs and asset impairments | 20,357,000 | ||||||||||
Operating Segments | Imagewear | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,103,813,000 | 1,082,565,000 | 1,104,038,000 | ||||||||
Operating income | 179,793,000 | 157,959,000 | 164,352,000 | ||||||||
Restructuring costs and asset impairments | 1,308,000 | ||||||||||
Operating Segments | Sportswear | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 536,302,000 | 635,056,000 | 650,203,000 | ||||||||
Operating income | 36,648,000 | 78,879,000 | 77,972,000 | ||||||||
Restructuring costs and asset impairments | 2,921,000 | ||||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 108,042,000 | 122,344,000 | 126,741,000 | ||||||||
Operating income | (4,403,000) | 15,135,000 | (2,600,000) | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring costs and asset impairments | 14,827,000 | ||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on sale of property | 16,600,000 | ||||||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Overhead costs | 5,800,000 | 11,400,000 | 12,400,000 | ||||||||
Interest expense | 2,300,000 | 1,900,000 | |||||||||
Pension Plan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pension settlement charge | $ (50,922,000) | $ (4,062,000) | $ 0 |
Business Segment Information107
Business Segment Information - Reconciliation Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 9,739,287 | $ 9,639,542 |
Cash and equivalents | 1,227,862 | 944,423 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,917,885 | 3,957,881 |
Operating Segments | Outdoor & Action Sports | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,424,830 | 2,436,788 |
Operating Segments | Jeanswear | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 943,764 | 951,411 |
Operating Segments | Imagewear | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 355,707 | 366,062 |
Operating Segments | Sportswear | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 130,233 | 140,458 |
Operating Segments | Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 63,351 | 63,162 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash and equivalents | 1,227,862 | 944,423 |
Intangible assets and goodwill | 3,576,657 | 3,737,018 |
Deferred income taxes | 42,231 | 39,246 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 974,652 | 661,767 |
Assets of discontinued operations | $ 0 | $ 299,207 |
Business Segment Information108
Business Segment Information - Reconciliation of Capital Expenditures and Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 175,121 | $ 248,838 | $ 223,769 |
Depreciation and amortization expense | 276,996 | 254,402 | 250,877 |
Operating Segments | Outdoor & Action Sports | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 114,430 | 166,267 | 111,020 |
Depreciation and amortization expense | 138,387 | 129,986 | 131,166 |
Operating Segments | Jeanswear | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 38,802 | 31,844 | 31,586 |
Depreciation and amortization expense | 47,726 | 41,823 | 43,189 |
Operating Segments | Imagewear | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 5,244 | 6,959 | 6,356 |
Depreciation and amortization expense | 13,013 | 11,608 | 11,602 |
Operating Segments | Sportswear | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 4,944 | 8,771 | 22,814 |
Depreciation and amortization expense | 17,042 | 15,358 | 14,334 |
Operating Segments | Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 2,390 | 2,679 | 2,489 |
Depreciation and amortization expense | 3,537 | 4,510 | 5,231 |
Corporate, Non-Segment | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 9,311 | 32,318 | 49,504 |
Depreciation and amortization expense | 57,291 | 51,117 | 45,355 |
Discontinued Operations | Contemporary Brands | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures related to discontinued operations | 719 | 5,663 | 10,308 |
Depreciation and amortization expense related to discontinued operations | $ 4,581 | $ 17,673 | $ 24,006 |
Business Segment Information109
Business Segment Information - Supplemental Information (with Revenues by Geographic Area Based on Location of Customer) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,320,574 | $ 3,488,226 | $ 2,445,259 | $ 2,764,944 | $ 3,326,279 | $ 3,529,626 | $ 2,426,986 | $ 2,749,764 | $ 12,019,003 | $ 12,032,655 | $ 11,881,730 |
Property, plant and equipment | 939,650 | 945,491 | 939,650 | 945,491 | |||||||
Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,444,594 | 7,631,476 | 7,292,051 | ||||||||
Property, plant and equipment | 590,593 | 591,981 | 590,593 | 591,981 | |||||||
Foreign, primarily Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,574,409 | 4,401,179 | $ 4,589,679 | ||||||||
Property, plant and equipment | $ 349,057 | $ 353,510 | $ 349,057 | $ 353,510 |
Business Segment Information110
Business Segment Information - Narrative (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting [Abstract] | |||
Customer accounted for 10% of total revenue | 0 | 0 | 0 |
Commitments - Schedule of Rent
Commitments - Schedule of Rent Expense, Net of Sublease Income Included in Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum rent expense | $ 360,226 | $ 318,402 | $ 305,149 |
Contingent rent expense | 19,549 | 25,467 | 22,399 |
Rent expense | $ 379,775 | $ 343,869 | $ 327,548 |
Commitments - Narrative (Detail
Commitments - Narrative (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Other Commitments [Line Items] | |
Future minimum lease payments 2017 | $ 344 |
Future minimum lease payments 2018 | 272.9 |
Future minimum lease payments 2019 | 205.3 |
Future minimum lease payments 2020 | 149.7 |
Future minimum lease payments 2021 | 96.2 |
Future minimum lease payments thereafter | 150.8 |
Future minimum royalty payments 2017 | 81.8 |
Future minimum royalty payments 2018 | 106.5 |
Future minimum royalty payments 2019 | 103.8 |
Future minimum royalty payments 2020 | 47.3 |
Future minimum royalty payments 2021 | 48.6 |
Future minimum royalty payments thereafter | 0.2 |
Total payments for purchase commitments 2017 | 1,700 |
Total payments for purchase commitments 2018 | 2.7 |
Future payments under purchase commitments 2017 | 141.6 |
Future payments under purchase commitments 2018 | 38.9 |
Future payments under purchase commitments 2019 | 6.7 |
Future payments under purchase commitments 2020 | 4.3 |
Future payments under purchase commitments 2021 | 1.8 |
Future payments under purchase commitments thereafter | 0.3 |
Surety bonds, standby letters of credit and international bank guarantees | $ 122.2 |
Minimum | |
Other Commitments [Line Items] | |
Service period of purchase commitments | 2 months |
Maximum | |
Other Commitments [Line Items] | |
Service period of purchase commitments | 6 months |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Earnings per common share - basic | |||||||||||
Income from continuing operations | $ 264,333 | $ 503,034 | $ 148,294 | $ 256,866 | $ 406,529 | $ 457,635 | $ 167,842 | $ 283,125 | $ 1,172,527 | $ 1,315,131 | $ 1,327,749 |
Weighted average common shares outstanding, basic (in shares) | 416,103 | 425,408 | 432,611 | ||||||||
Earnings per share from continuing operations, basic (in USD per share) | $ 0.64 | $ 1.22 | $ 0.35 | $ 0.61 | $ 0.95 | $ 1.08 | $ 0.39 | $ 0.67 | $ 2.82 | $ 3.09 | $ 3.07 |
Earnings per common share - diluted | |||||||||||
Weighted average common shares outstanding (in shares) | 416,103 | 425,408 | 432,611 | ||||||||
Incremental shares from stock options and other dilutive securities (in shares) | 5,978 | 6,671 | 7,542 | ||||||||
Adjusted weighted average common shares outstanding (in shares) | 422,081 | 432,079 | 440,153 | ||||||||
Earnings per share from continuing operations, diluted (in USD per share) | $ 0.63 | $ 1.20 | $ 0.35 | $ 0.60 | $ 0.94 | $ 1.06 | $ 0.39 | $ 0.66 | $ 2.78 | $ 3.04 | $ 3.02 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options excluded from computation of earnings per share | 5.8 | 2.4 | 1.4 |
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 | 0.9 | 0.9 | 1.1 |
Fair Value Measurements - Class
Fair Value Measurements - Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Cash equivalents: | ||
Cash equivalents, money market funds | $ 840,842 | $ 495,264 |
Cash equivalents, time deposits | 14,774 | 39,813 |
Derivative financial instruments | 103,340 | 105,791 |
Investment securities | 196,738 | 203,797 |
Financial liabilities: | ||
Derivative financial instruments | 25,574 | 28,032 |
Deferred compensation | 232,214 | 252,723 |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents, money market funds | 840,842 | 495,264 |
Cash equivalents, time deposits | 14,774 | 39,813 |
Investment securities | 179,673 | 190,792 |
Level 2 | ||
Cash equivalents: | ||
Derivative financial instruments | 103,340 | 105,791 |
Investment securities | 17,065 | 13,005 |
Financial liabilities: | ||
Derivative financial instruments | 25,574 | 28,032 |
Deferred compensation | $ 232,214 | $ 252,723 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jul. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash proceeds from available-for-sale securities | $ 5,900,000 | ||||
Long-term debt, carrying values | $ 2,292,869,000 | $ 2,292,869,000 | $ 1,405,171,000 | ||
Long-term debt, fair values | 2,486,600,000 | 2,486,600,000 | 1,582,500,000 | ||
Impairment charges for property, plant and equipment | $ 9,336,456 | 0 | $ 0 | ||
Percentage of fair value in excess of carrying value | 45.00% | ||||
Impairment of goodwill and intangible assets | 79,600,000 | $ 79,644,000 | 0 | 0 | |
Impairment charges of goodwill | 39,344,000 | 0 | $ 0 | ||
Other income (expense), net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain recognized from sale of available-for-sale securities | 1,500,000 | ||||
lucy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment charges for property, plant and equipment | $ 2,600,000 | ||||
Impairment of goodwill and intangible assets | 79,600,000 | ||||
Impairment charges of goodwill | 39,300,000 | $ 39,300,000 | |||
Trademark | lucy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment charges of intangible assets excluding goodwill | $ 40,300,000 |
Derivative Financial Instrum117
Derivative Financial Instruments and Hedging Activities - Narrative (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Dec. 31, 2016EUR (€) | Sep. 30, 2016EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | $ 63.1 | ||||
Remaining pretax deferred net loss in Accumulated OCI | 22.7 | ||||
Net deferred loss in accumulated OCI reclassified to earnings | 4.5 | $ 4.3 | $ 4.1 | ||
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | 4.7 | ||||
Foreign Currency Exchange Contract | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 2,200 | $ 2,400 | |||
Maximum | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative contract maturity (up to) | 24 months | ||||
0.625% notes, due 2023 | Notes Payable | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Bonds designated as net investment hedge | € | € 850,000,000 | € 850,000,000 | |||
Net Investment Hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain on net investment hedge transaction | $ 55.9 | ||||
Amount of ineffectiveness on net investment hedge | $ 0 | ||||
Net Investment Hedging | 0.625% notes, due 2023 | Notes Payable | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Bonds designated as net investment hedge | € | € 850,000,000 |
Derivative Financial Instrum118
Derivative Financial Instruments and Hedging Activities - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives with Unrealized Gains | $ 103,340 | $ 105,791 |
Fair Value of Derivatives with Unrealized Losses | (25,574) | (28,032) |
Foreign currency exchange contracts designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives with Unrealized Gains | 103,340 | 105,536 |
Fair Value of Derivatives with Unrealized Losses | (25,292) | (27,896) |
Foreign currency exchange contracts not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives with Unrealized Gains | 0 | 255 |
Fair Value of Derivatives with Unrealized Losses | $ (282) | $ (136) |
Derivative Financial Instrum119
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts presented in the Consolidated Balance Sheets, Derivative Asset | $ 103,340 | $ 105,791 |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Asset | (22,341) | (22,213) |
Net amounts | 80,999 | 83,578 |
Gross amounts presented in the Consolidated Balance Sheets, Derivative Liabilities | (25,574) | (28,032) |
Gross amounts not offset in the Consolidated Balance Sheets, Derivative Liabilities | 22,341 | 22,213 |
Net amounts | $ (3,233) | $ (5,819) |
Derivative Financial Instrum120
Derivative Financial Instruments and Hedging Activities - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Other current assets | $ 84,519 | $ 92,796 |
Accrued liabilities | (18,574) | (25,776) |
Other assets | 18,821 | 12,995 |
Other liabilities | $ (7,000) | $ (2,256) |
Derivative Financial Instrum121
Derivative Financial Instruments and Hedging Activities - Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ 107,457 | $ 64,976 | $ (32,111) |
Foreign Currency Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in OCI | 90,708 | 89,993 | 88,387 |
Foreign Currency Exchange Contract | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | 28,798 | (68,543) | (18,071) |
Foreign Currency Exchange Contract | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | 84,613 | 132,432 | (8,756) |
Foreign Currency Exchange Contract | Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | (4,314) | (1,885) | 0 |
Foreign Currency Exchange Contract | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | 2,864 | 7,267 | (1,189) |
Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ (4,504) | $ (4,295) | $ (4,095) |
Derivative Financial Instrum122
Derivative Financial Instruments and Hedging Activities - Hedges Included in Consolidated Statements of Income (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | $ 1,757 | $ (1,373) | $ (707) |
Cost of goods sold | Foreign Currency Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | 1,674 | (4,179) | 0 |
Other income (expense), net | Foreign Currency Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | $ 83 | $ 2,806 | $ (707) |
Supplemental Cash Flow Infor123
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Income taxes paid, net of refunds | $ 434,795 | $ 339,010 | $ 370,202 |
Interest paid, net of amounts capitalized | 87,521 | 83,850 | 82,280 |
Computer Software | |||
Noncash transactions: | |||
Expenditures included in accounts payable or accrued liabilities | 15,143 | 4,394 | 27,555 |
Property, Plant and Equipment | |||
Noncash transactions: | |||
Expenditures included in accounts payable or accrued liabilities | $ 28,103 | $ 9,445 | $ 9,529 |
Restructuring - Components of R
Restructuring - Components of Restructuring Charges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring and Related Activities [Abstract] | |
Severance and employee-related benefits | $ 53,387 |
Asset impairments | 3,394 |
Other | 1,310 |
Total restructuring charges | $ 58,091 |
Restructuring - Restructuring b
Restructuring - Restructuring by Business Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Charges | $ 58,091 |
Operating Segments | Outdoor & Action Sports | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 17,401 |
Operating Segments | Jeanswear | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 20,357 |
Operating Segments | Imagewear | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 1,308 |
Operating Segments | Sportswear | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 2,921 |
Operating Segments | Other | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 1,277 |
Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Charges | $ 14,827 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs and asset impairments | $ 58,091 | |
Restructuring charges | $ 58,100 | 54,697 |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 34,800 | |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 23,300 |
Restructuring - Schedule of Act
Restructuring - Schedule of Activity in Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2015 | $ 0 | |
Charges | $ 58,100 | 54,697 |
Cash payments | 1,099 | |
Amounts recorded in accrued liabilities at December 2016 | 53,598 | 53,598 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2015 | 0 | |
Charges | 53,387 | |
Cash payments | 667 | |
Amounts recorded in accrued liabilities at December 2016 | 52,720 | 52,720 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2015 | 0 | |
Charges | 1,310 | |
Cash payments | 432 | |
Amounts recorded in accrued liabilities at December 2016 | $ 878 | $ 878 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Detail) - $ / shares | Feb. 14, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||
Options granted in period (in shares) | 3,132,609 | |
Performance-Based Restricted Stock Units | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 605,658 | |
Nonperformance-Based Restricted Stock Units | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 82,113 | |
Restricted Stock | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 128,737 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Options granted in period (in shares) | 3,300,000 | |
Subsequent Event | Performance-Based Restricted Stock Units | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 600,000 | |
Subsequent Event | Nonperformance-Based Restricted Stock Units | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 30,000 | |
Subsequent Event | Restricted Stock | ||
Subsequent Event [Line Items] | ||
Restricted stock units granted in period (in shares) | 77,000 | |
Subsequent Event | Dividend Declared | ||
Subsequent Event [Line Items] | ||
Cash dividend (in USD per share) | $ 0.42 |
Quarterly Results of Operati129
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 3,320,574 | $ 3,488,226 | $ 2,445,259 | $ 2,764,944 | $ 3,326,279 | $ 3,529,626 | $ 2,426,986 | $ 2,749,764 | $ 12,019,003 | $ 12,032,655 | $ 11,881,730 |
Operating income | 320,121 | 635,428 | 211,424 | 332,253 | 538,035 | 639,563 | 218,980 | 391,349 | 1,499,226 | 1,787,927 | 1,798,314 |
Income from continuing operations | 264,333 | 503,034 | 148,294 | 256,866 | 406,529 | 457,635 | 167,842 | 283,125 | 1,172,527 | 1,315,131 | 1,327,749 |
Income (loss) from discontinued operations, net of tax | 0 | (4,545) | (97,279) | 3,403 | (94,320) | 2,229 | 2,969 | 5,584 | (98,421) | (83,538) | (280,244) |
Net income | $ 264,333 | $ 498,489 | $ 51,015 | $ 260,269 | $ 312,209 | $ 459,864 | $ 170,811 | $ 288,709 | $ 1,074,106 | $ 1,231,593 | $ 1,047,505 |
Earnings per common share from continuing operations | |||||||||||
Earnings per common share - basic, continuing operations (in USD per share) | $ 0.64 | $ 1.22 | $ 0.35 | $ 0.61 | $ 0.95 | $ 1.08 | $ 0.39 | $ 0.67 | $ 2.82 | $ 3.09 | $ 3.07 |
Earnings per common share - basic, discontinued operations (in USD per share) | 0 | (0.01) | (0.23) | 0.01 | (0.22) | 0 | 0.01 | 0.01 | (0.24) | (0.19) | (0.65) |
Total earnings per common share - basic (in USD per share) | 0.64 | 1.21 | 0.12 | 0.62 | 0.73 | 1.08 | 0.40 | 0.68 | 2.58 | 2.90 | 2.42 |
Earnings per share from continuing operations, diluted (in USD per share) | 0.63 | 1.20 | 0.35 | 0.60 | 0.94 | 1.06 | 0.39 | 0.66 | 2.78 | 3.04 | 3.02 |
Earnings per common share - diluted, discontinued operations (in USD per share) | 0 | (0.01) | (0.23) | 0.01 | (0.22) | 0.01 | 0.01 | 0.01 | (0.24) | (0.19) | (0.64) |
Total earnings per common share - diluted (in USD per share) | 0.63 | 1.19 | 0.12 | 0.61 | 0.72 | 1.07 | 0.40 | 0.67 | 2.54 | 2.85 | 2.38 |
Dividends per common share (in USD per share) | $ 0.42 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.32 | $ 0.32 | $ 0.32 | $ 1.53 | $ 1.3300 | $ 1.1075 |
Quarterly Results of Operati130
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Footnotes) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Restructuring charges | $ 58,100,000 | $ 54,697,000 | ||
Restructuring, after-tax | 43,700,000 | |||
Impairment of goodwill and intangible assets | 79,600,000 | $ 79,644,000 | $ 0 | $ 0 |
Goodwill and intangible asset impairment charges, after-tax | 64,100,000 | |||
Pension settlement charge | 50,900,000 | |||
Pension settlement charge, after-tax | $ 31,400,000 |
Schedule II _ Valuation and 131
Schedule II — Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of period | $ 23,275 | $ 25,458 | $ 43,338 |
Charged to costs and expenses | 17,263 | 12,048 | (2,036) |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 19,407 | 14,231 | 15,844 |
Balance at end of period | 21,131 | 23,275 | 25,458 |
Other accounts receivable allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of period | 187,530 | 177,535 | 160,789 |
Charged to costs and expenses | 1,528,313 | 1,378,288 | 1,261,684 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 1,528,169 | 1,368,293 | 1,244,938 |
Balance at end of period | 187,674 | 187,530 | 177,535 |
Valuation allowance for deferred income tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of period | 100,951 | 96,802 | 107,521 |
Charged to costs and expenses | 0 | 0 | 0 |
Charged to other accounts | 14,039 | 4,149 | (10,719) |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 114,990 | $ 100,951 | $ 96,802 |