Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 29, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VFC | |
Entity Registrant Name | V F CORP | |
Entity Central Index Key | 103,379 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 400,456,972 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Current assets | |||
Cash and equivalents | $ 604,444 | $ 1,227,862 | $ 585,365 |
Accounts receivable, less allowance for doubtful accounts of: March 2017 – $19,844; December 2016 – $20,539; March 2016 – $26,777 | 1,253,423 | 1,161,393 | 1,222,162 |
Inventories | 1,645,484 | 1,471,300 | 1,613,756 |
Other current assets | 353,733 | 296,698 | 323,817 |
Current assets of discontinued operations | 235,066 | 135,845 | 227,774 |
Total current assets | 4,092,150 | 4,293,098 | 3,972,874 |
Property, plant and equipment | 914,244 | 926,010 | 930,145 |
Intangible assets | 1,814,098 | 1,797,271 | 1,957,965 |
Goodwill | 1,715,121 | 1,708,323 | 1,775,458 |
Other assets | 710,665 | 929,190 | 894,019 |
Other assets of discontinued operations | 0 | 85,395 | 301,802 |
Total assets | 9,246,278 | 9,739,287 | 9,832,263 |
Current liabilities | |||
Short-term borrowings | 288,677 | 26,029 | 1,137,205 |
Current portion of long-term debt | 253,736 | 253,689 | 3,489 |
Accounts payable | 438,300 | 642,970 | 408,156 |
Accrued liabilities | 833,825 | 827,507 | 950,312 |
Current liabilities of discontinued operations | 21,321 | 35,205 | 30,305 |
Total current liabilities | 1,835,859 | 1,785,400 | 2,529,467 |
Long-term debt | 2,051,482 | 2,039,180 | 1,401,233 |
Other liabilities | 985,880 | 977,076 | 1,000,253 |
Other liabilities of discontinued operations | 0 | (3,290) | 7,364 |
Commitments and contingencies | |||
Total liabilities | 4,873,221 | 4,798,366 | 4,938,317 |
Stockholders’ equity | |||
Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding at March 2017, December 2016 or March 2016 | 0 | 0 | 0 |
Common Stock, stated value $0.25; shares authorized, 1,200,000,000; shares outstanding at March 2017 – 406,964,289; December 2016 – 414,012,954; March 2016 – 417,005,209 | 101,741 | 103,503 | 104,251 |
Additional paid-in capital | 3,367,026 | 3,333,423 | 3,239,792 |
Accumulated other comprehensive loss | (988,040) | (1,041,463) | (950,285) |
Retained earnings | 1,892,330 | 2,545,458 | 2,500,188 |
Total stockholders’ equity | 4,373,057 | 4,940,921 | 4,893,946 |
Total liabilities and stockholders’ equity | $ 9,246,278 | $ 9,739,287 | $ 9,832,263 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowance for doubtful accounts | $ 19,844 | $ 20,539 | $ 26,777 |
Preferred Stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, stated value (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 |
Common Stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common Stock, shares outstanding (in shares) | 406,964,289 | 414,012,954 | 417,005,209 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 2,555,693 | $ 2,606,982 |
Royalty income | 25,984 | 27,435 |
Total revenues | 2,581,677 | 2,634,417 |
Costs and operating expenses | ||
Cost of goods sold | 1,286,685 | 1,350,700 |
Selling, general and administrative expenses | 1,003,518 | 971,920 |
Total costs and operating expenses | 2,290,203 | 2,322,620 |
Operating income | 291,474 | 311,797 |
Interest income | 3,518 | 2,008 |
Interest expense | (23,706) | (22,028) |
Other income (expense), net | (67) | 1,292 |
Income from continuing operations before income taxes | 271,219 | 293,069 |
Income taxes | 56,540 | 51,134 |
Income from continuing operations | 214,679 | 241,935 |
Income (loss) from discontinued operations, net of tax | (5,516) | 18,334 |
Net income | $ 209,163 | $ 260,269 |
Earnings per common share - basic | ||
Continuing operations (in USD per share) | $ 0.52 | $ 0.57 |
Discontinued operations (in USD per share) | (0.01) | 0.04 |
Total earnings per common share - basic (in USD per share) | 0.51 | 0.62 |
Earnings per common share - diluted | ||
Continuing operations (in USD per share) | 0.52 | 0.56 |
Discontinued operations (in USD per share) | (0.01) | 0.04 |
Total earnings per common share - diluted (in USD per share) | 0.50 | 0.61 |
Cash dividends per common share (in USD per share) | $ 0.42 | $ 0.37 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 209,163 | $ 260,269 |
Foreign currency translation and other | ||
Gains (losses) arising during the period | 47,825 | 117,557 |
Less income tax effect | 4,473 | (2,278) |
Defined benefit pension plans | ||
Amortization of net deferred actuarial losses | 11,382 | 16,306 |
Amortization of deferred prior service costs | 712 | 647 |
Current year actuarial gains (losses) and curtailment loss | 20,996 | 0 |
Less income tax effect | (12,114) | (6,069) |
Derivative financial instruments | ||
Gains (losses) arising during the period | (10,094) | (15,783) |
Less income tax effect | 2,560 | 6,085 |
Reclassification to net income for (gains) losses realized | (16,491) | (38,295) |
Less income tax effect | 4,174 | 14,767 |
Other comprehensive income (loss) | 53,423 | 92,937 |
Comprehensive income | $ 262,586 | $ 353,206 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 | |
Operating activities | ||||||
Net income | $ 209,163 | $ 260,269 | ||||
Adjustments to reconcile net income to cash used by operating activities: | ||||||
Depreciation and amortization | 66,438 | 68,030 | ||||
Stock-based compensation | 15,041 | 21,151 | ||||
Provision for doubtful accounts | 2,690 | 5,815 | ||||
Pension expense in excess of contributions | 7,781 | 9,731 | ||||
Loss on sale of businesses | 2,415 | 0 | ||||
Other, net | 19,310 | (22,789) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (84,229) | 43,153 | ||||
Inventories | (159,712) | (134,713) | ||||
Accounts payable | (207,233) | (263,167) | ||||
Income taxes | (34,056) | 4,413 | ||||
Accrued liabilities | (22,721) | (88,214) | ||||
Other assets and liabilities | (25,049) | (49,247) | ||||
Cash used by operating activities | (210,162) | (145,568) | ||||
Investing activities | ||||||
Capital expenditures | (40,856) | (36,336) | ||||
Software purchases | (20,657) | (6,335) | ||||
Other, net | (6,824) | (587) | ||||
Cash used by investing activities | (68,337) | (43,258) | ||||
Financing activities | ||||||
Net increase in short-term borrowings | 262,156 | 685,985 | ||||
Payments on long-term debt | (904) | (10,695) | ||||
Purchases of treasury stock | (438,297) | (713,767) | ||||
Cash dividends paid | (172,713) | (155,584) | ||||
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 3,283 | 4,102 | ||||
Cash used by financing activities | (346,475) | (189,959) | ||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 2,228 | 19,033 | ||||
Net change in cash, cash equivalents and restricted cash | (622,746) | (359,752) | ||||
Cash, cash equivalents and restricted cash – beginning of year | 1,231,026 | 946,396 | $ 946,396 | |||
Cash, cash equivalents and restricted cash – end of period | 608,280 | 586,644 | 1,231,026 | |||
Balances per Consolidated Balance Sheets: | ||||||
Cash and cash equivalents | $ 604,444 | $ 1,227,862 | $ 585,365 | |||
Other current assets | 3,174 | 0 | ||||
Current assets of discontinued operations | 0 | 470 | ||||
Other assets | 662 | 809 | ||||
Total cash, cash equivalents and restricted cash | $ 1,231,026 | $ 946,396 | $ 946,396 | $ 608,280 | $ 1,231,026 | $ 586,644 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Jan. 02, 2016 | 426,614,274 | ||||
Balance at Jan. 02, 2016 | $ 106,654 | $ 3,192,675 | $ (1,043,222) | $ 3,128,731 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 260,269 | ||||
Balance at Apr. 02, 2016 | 4,893,946 | (950,285) | |||
Balance (in shares) at Jan. 02, 2016 | 426,614,274 | ||||
Balance at Jan. 02, 2016 | $ 106,654 | 3,192,675 | (1,043,222) | 3,128,731 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,074,106 | ||||
Dividends on Common Stock | (635,994) | ||||
Purchases of treasury stock (in shares) | (15,932,075) | ||||
Purchase of treasury stock | $ (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 | ||||
Balance (in shares) at Dec. 31, 2016 | 414,012,954 | ||||
Balance at Dec. 31, 2016 | 4,940,921 | $ 103,503 | 3,333,423 | (1,041,463) | 2,545,458 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | (237,764) | ||||
Net income | $ 209,163 | 209,163 | |||
Dividends on Common Stock | (172,713) | ||||
Purchases of treasury stock (in shares) | (8,200,000) | (8,219,389) | |||
Purchase of treasury stock | $ (438,200) | $ (2,055) | (436,242) | ||
Stock-based compensation, net (in shares) | 1,170,724 | ||||
Stock-based compensation, net | $ 293 | 33,603 | (15,572) | ||
Foreign currency translation and other | 52,298 | ||||
Defined benefit pension plans | 20,976 | ||||
Derivative financial instruments | (19,851) | ||||
Balance (in shares) at Apr. 01, 2017 | 406,964,289 | ||||
Balance at Apr. 01, 2017 | $ 4,373,057 | $ 101,741 | $ 3,367,026 | $ (988,040) | $ 1,892,330 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation VF Corporation (together with its subsidiaries, collectively known as “VF” or “the Company”) uses a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended March 2017 , December 2016 and March 2016 relate to the fiscal periods ended on April 1, 2017 , December 31, 2016 and April 2, 2016 , respectively. During the first quarter of 2017, the Company approved a change in fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31. Accordingly, the Company’s 2017 fiscal year will end as planned on December 30, 2017, followed by a three-month transition period from December 31, 2017 through March 31, 2018. The Company’s next fiscal year will run from April 1, 2018 through March 30, 2019 (“fiscal 2019”). During the first quarter of 2017, VF began to separately report the results of our Licensed Sports Group (“LSG”) and JanSport ® collegiate businesses (together the “Licensing Business”) as discontinued operations in our Consolidated Statements of Income, and present the related assets and liabilities as held-for-sale in the Consolidated Balance Sheets. These changes have been applied for all periods presented. In addition, VF completed the disposal of its Contemporary Brands coalition on August 26, 2016, and has reported the operating results for this business in the income (loss) from discontinued operations, net of tax line in the Consolidated Statement of Income for the three months ended March 2016. The related assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheet at March 2016. 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. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the December 2016 consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three months ended March 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 30, 2017 . For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended December 2016 (“ 2016 Form 10-K”). |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Apr. 01, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Divestiture of the Licensing Business The Company continuously assesses the composition of our portfolio to ensure it is aligned with our strategic objectives and positioned to maximize growth and return to our shareholders. In the first quarter of 2016, the Company began exploring strategic options for our LSG business. On April 3, 2017, VF signed a definitive agreement to sell LSG to Fanatics, Inc. for $225.0 million in cash, subject to working capital adjustments. The sale transaction was completed on April 28, 2017. LSG includes the Majestic ® brand, which supplies apparel and fanware through licensing agreements with U.S. and international professional sports leagues and teams, and was previously included within our Imagewear coalition. Under the terms of the transition services agreement, the Company will provide certain support services for periods ranging from three to 24 months from the closing date of the transaction. In conjunction with the LSG divestiture, VF executed its plan to entirely exit all of its licensing businesses and hold the assets of the JanSport ® collegiate licensing business for sale. The JanSport ® collegiate business was previously included within our Outdoor & Action Sports coalition. Management determined that the expected disposals met the criteria for presentation as discontinued operations in the first quarter of 2017. Accordingly, the results of the Licensing Business have been presented as discontinued operations in VF’s Consolidated Statements of Income beginning in the first quarter of 2017, and thus have been excluded from continuing operations and segment results for all periods presented. In addition, the related assets and liabilities of the Licensing Business have been classified as held-for-sale in VF’s Consolidated Balance Sheets for all periods presented. Certain corporate overhead and other costs previously allocated to this business for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. In the first quarter of 2017, the Company recognized an after-tax estimated loss on the sale of the Licensing Business of $2.4 million , which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income. Divestiture of the Contemporary Brands Coalition 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 was included in the loss from discontinued operations, net of tax line item in the 2016 Consolidated Statement of Income. VF has reported the results of the Businesses in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income for the quarter ended March 2016 and excluded them from continuing operations and segment results. The after-tax income included in income (loss) from discontinued operations for the first quarter of 2016 was $3.4 million . The assets and liabilities of the Businesses have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheet at March 2016. 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 for the 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 Consolidation Statement of Income for the three months ended March 2017. Summarized Discontinued Operations Financial Information The following table summarizes the major line items included in the income (loss) from discontinued operations for the divestitures of the Licensing Business and Contemporary Brands coalition: Three Months Ended March In thousands 2017 2016 Revenues $ 121,330 $ 204,883 Cost of goods sold 88,221 121,306 Selling, general and administrative expenses 25,637 59,122 Interest expense, net (18 ) (135 ) Other income (expense), net — (2 ) Income from discontinued operations before income taxes 7,454 24,318 Estimated loss on the disposal of discontinued operations before income taxes (3,531 ) — Total income from discontinued operations before income taxes 3,923 24,318 Income tax expense (a) (9,439 ) (5,984 ) Income (loss) from discontinued operations, net of tax $ (5,516 ) $ 18,334 (a) Income tax expense for the three months ended March 2017 includes $7.5 million of deferred tax expense related to GAAP and tax basis differences for LSG. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. In thousands March 2017 December 2016 March 2016 Accounts receivable, net $ 44,281 $ 36,285 $ 71,113 Inventories 94,718 98,025 148,812 Other current assets, including cash and equivalents 14,650 1,535 7,849 Property, plant and equipment 11,696 13,640 56,017 Intangible assets 40,164 42,427 212,852 Goodwill 28,636 28,636 28,636 Other assets 921 692 4,297 Total assets of discontinued operations (a) $ 235,066 $ 221,240 $ 529,576 Accounts payable $ 21,789 $ 21,674 $ 21,538 Accrued liabilities 2,849 13,531 8,767 Other liabilities 763 791 11,504 Deferred income tax liabilities (b) (4,080 ) (4,081 ) (4,140 ) Total liabilities of discontinued operations (a) $ 21,321 $ 31,915 $ 37,669 (a) Amounts at December 2016 and March 2016 have been classified as current and long-term in the Consolidated Balance Sheets. (b) Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows. There were no significant capital expenditures and operating noncash items for any periods presented. Depreciation and amortization expense was $3.0 million and $4.8 million for the three months ended March 2017 and 2016, respectively. |
Sale of Accounts Receivable
Sale of Accounts Receivable | 3 Months Ended |
Apr. 01, 2017 | |
Receivables [Abstract] | |
Sale of Accounts Receivable | Sale of Accounts Receivable VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under the agreement, up to $367.5 million of VF’s accounts receivable may be sold to the financial institution and remain outstanding at any point in time. VF removes the accounts receivable from the Consolidated Balance Sheets at the time of sale. VF does not retain any interests in the sold accounts receivable but continues to service and collect outstanding accounts receivable on behalf of the financial institution. During the first quarter of 2017 , VF sold total accounts receivable of $285.1 million . As of March 2017 , December 2016 and March 2016 , $145.3 million , $209.5 million and $241.7 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 $0.9 million and $0.8 million for the first quarter of 2017 and 2016 , respectively. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories In thousands March 2017 December 2016 March 2016 Finished products $ 1,452,623 $ 1,278,504 $ 1,432,829 Work-in-process 96,903 97,725 88,848 Raw materials 95,958 95,071 92,079 Total inventories $ 1,645,484 $ 1,471,300 $ 1,613,756 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets March 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 245,970 $ 119,018 $ 126,952 $ 128,422 License agreements 28 years Accelerated and straight-line 108,736 59,964 48,772 49,682 Trademark 16 years Straight-line 58,132 4,541 53,591 54,499 Other 8 years Straight-line 9,108 3,051 6,057 3,297 Amortizable intangible assets, net 235,372 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,578,726 1,561,371 Intangible assets, net $ 1,814,098 $ 1,797,271 Amortization expense for the first quarter of 2017 was $5.3 million . Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five 12-month periods beginning in 2017 is $21.0 million , $20.5 million , $19.9 million , $19.0 million and $18.2 million , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in goodwill are summarized by business segment as follows: In thousands Outdoor & Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2016 $ 1,310,133 $ 210,765 $ 30,111 $ 157,314 $ 1,708,323 Currency translation 5,049 1,749 — — 6,798 Balance, March 2017 $ 1,315,182 $ 212,514 $ 30,111 $ 157,314 $ 1,715,121 Accumulated impairment charges were $82.7 million for the Outdoor & Action Sports coalition and $58.5 million for the Sportswear coalition as of the dates presented above. No impairment charges were recorded in the first quarter of 2017 . |
Pension Plans
Pension Plans | 3 Months Ended |
Apr. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Pension Plans The components of pension cost for VF’s defined benefit plans were as follows: Three Months Ended March In thousands 2017 2016 Service cost – benefits earned during the period $ 6,416 $ 6,449 Interest cost on projected benefit obligations 14,815 17,034 Expected return on plan assets (23,355 ) (24,919 ) Amortization of deferred amounts: Net deferred actuarial losses 11,382 16,306 Deferred prior service costs 712 647 Net periodic pension cost $ 9,970 $ 15,517 VF contributed $2.2 million to its defined benefit plans during the first three months of 2017 , and intends to make approximately $8.5 million of additional contributions during the remainder of 2017 . In conjunction with the sale of the Licensing Business, the Company recognized a $1.1 million pension curtailment loss in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Income in the first quarter of 2017. |
Capital and Accumulated Other C
Capital and Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Capital and Accumulated Other Comprehensive Loss | Capital and Accumulated Other Comprehensive Loss During the first quarter of 2017 , the Company purchased 8.2 million shares of Common Stock in open market transactions for $438.2 million under its share repurchase program authorized by VF’s Board of Directors. These transactions were treated as treasury stock transactions. Common Stock outstanding is net of shares held in treasury which are, in substance, retired. During the first quarter of 2017 , VF restored 8.2 million treasury shares 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 March 2017 , December 2016 or March 2016 . The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings. VF Common Stock is also held by the Company’s deferred compensation plans and is treated as treasury shares for financial reporting purposes. During the first quarter of 2017 , the Company purchased 1,400 shares of Common Stock in open market transactions for $0.1 million . Balances related to shares held for deferred compensation plans were as follows: In thousands, except share amounts March 2017 December 2016 March 2016 Shares held for deferred compensation plans 427,567 439,667 550,149 Cost of shares held for deferred compensation plans $ 5,304 $ 5,464 $ 6,614 Accumulated Other Comprehensive Loss Comprehensive income consists of net income and specified components of other comprehensive income (“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: In thousands March 2017 December 2016 March 2016 Foreign currency translation and other $ (742,281 ) $ (794,579 ) $ (602,890 ) Defined benefit pension plans (281,721 ) (302,697 ) (361,311 ) Derivative financial instruments 35,962 55,813 13,916 Accumulated other comprehensive loss $ (988,040 ) $ (1,041,463 ) $ (950,285 ) The changes in accumulated OCI, net of related taxes, are as follows: Three Months Ended March 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ (1,041,463 ) Other comprehensive income (loss) before reclassifications 52,298 12,253 (7,534 ) 57,017 Amounts reclassified from accumulated other comprehensive income (loss) — 8,723 (12,317 ) (3,594 ) Net other comprehensive income (loss) 52,298 20,976 (19,851 ) 53,423 Balance, March 2017 $ (742,281 ) $ (281,721 ) $ 35,962 $ (988,040 ) Three Months Ended March 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2015 $ (718,169 ) $ (372,195 ) $ 47,142 $ (1,043,222 ) Other comprehensive income (loss) before reclassifications 115,279 — (9,698 ) 105,581 Amounts reclassified from accumulated other comprehensive income (loss) — 10,884 (23,528 ) (12,644 ) Net other comprehensive income (loss) 115,279 10,884 (33,226 ) 92,937 Balance, March 2016 $ (602,890 ) $ (361,311 ) $ 13,916 $ (950,285 ) Reclassifications out of accumulated OCI are as follows: In thousands Affected Line Item in the Consolidated Statements of Income Three Months Ended March Details About Accumulated Other Comprehensive Income (Loss) Components 2017 2016 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (11,382 ) $ (16,306 ) Deferred prior service costs (a) (712 ) (647 ) Pension curtailment loss Income (loss) from discontinued operations, net of tax (1,105 ) — Total before tax (13,199 ) (16,953 ) Tax benefit 4,476 6,069 Net of tax (8,723 ) (10,884 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 6,413 (4,963 ) Foreign exchange contracts Cost of goods sold 11,274 43,837 Foreign exchange contracts Selling, general and administrative expenses (87 ) (978 ) Foreign exchange contracts Other income (expense), net 49 1,503 Interest rate contracts Interest expense (1,158 ) (1,104 ) Total before tax 16,491 38,295 Tax expense (4,174 ) (14,767 ) Net of tax 12,317 23,528 Total reclassifications for the period Net of tax $ 3,594 $ 12,644 (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note G for additional details). |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation During the first quarter of 2017 , VF granted stock options to employees and nonemployee members of VF’s Board of Directors to purchase 3,407,216 shares of its Common Stock at an exercise price of $53.47 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Employee stock options vest in equal annual installments over three years . Stock options granted to nonemployee members of VF’s Board of Directors become exercisable one year from the date of grant. The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows: Options Granted Three Months Ended March 2017 Expected volatility 23% to 29% Weighted average expected volatility 24% Expected term (in years) 6.3 to 7.7 Weighted average dividend yield 2.8% Risk-free interest rate 0.7% to 2.4% Weighted average fair value at date of grant $9.88 Also, during the first quarter of 2017 , VF granted 597,121 performance-based restricted stock units (“RSU”) to employees that enable them to receive shares of VF Common Stock at the end of a three -year period. Each performance-based 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 fair market value of VF Common Stock at the date the units were granted was $53.47 per share. The actual number of performance-based RSUs earned may also be adjusted upward or downward by 25% of the target award, based on how VF’s total shareholder return (“TSR”) over the three -year period compares to the TSR for companies included in the Standard & Poor’s 500 Index. The grant date fair value of the TSR-based adjustment related to the 2017 performance-based RSU grants was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs, and was $2.67 per share. VF granted 17,964 nonperformance-based RSUs to nonemployee members of the Board of Directors during the first quarter of 2017 . These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant. The fair market value of VF Common Stock at the date the units were granted was $53.47 per share. VF granted 76,702 nonperformance-based RSUs to certain key employees in international jurisdictions during the first quarter of 2017 . These units vest four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $53.47 . VF granted 263,770 restricted shares of VF Common Stock to certain members of management during the first quarter of 2017 . These shares vest over periods of up to five years from the date of grant. The fair market value of VF Common Stock at the date the shares were granted was $53.47 per share. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate for the first quarter of 2017 was 20.8% compared to 17.4% in the first quarter of 2016 . The first quarter of 2017 included a net discrete tax benefit of $1.1 million , which included a $3.0 million tax benefit related to stock compensation and a $1.9 million net tax expense related to unrecognized tax benefits and interest. The $1.1 million net discrete tax benefit in 2017 reduced the effective income tax rate by 0.4% . The first quarter of 2016 included a net discrete tax benefit of $19.5 million , which included a $15.7 million tax benefit related to the early adoption of the accounting standards update on stock compensation and $3.8 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest. The $19.5 million net discrete tax benefit in 2016 reduced the effective income tax rate by 6.7% . Without discrete items, the effective income tax rate for the first quarter of 2017 decreased by 2.9% compared with the 2016 period primarily due to a higher percentage of income in lower tax rate jurisdictions and the impact of early adopting the accounting standards update regarding intra-entity asset transfers . 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 . 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. 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 was recorded as an income tax receivable 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. During the first quarter of 2017 , the amount of net unrecognized tax benefits and associated interest increased by $4.5 million to $155.0 million . Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $28.3 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $25.4 million would reduce income tax expense. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 01, 2017 | |
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. Financial information for VF’s reportable segments is as follows: Three Months Ended March In thousands 2017 2016 Coalition revenues: Outdoor & Action Sports $ 1,678,810 $ 1,639,085 Jeanswear 647,442 710,590 Imagewear 134,966 141,811 Sportswear 98,317 118,397 Other 22,142 24,534 Total coalition revenues $ 2,581,677 $ 2,634,417 Coalition profit: (a) Outdoor & Action Sports $ 230,944 $ 228,110 Jeanswear 118,019 137,294 Imagewear 24,400 26,139 Sportswear (1,069 ) 4,776 Other (2,195 ) (2,608 ) Total coalition profit 370,099 393,711 Corporate and other expenses (a) (78,692 ) (80,622 ) Interest expense, net (b) (20,188 ) (20,020 ) Income from continuing operations before income taxes $ 271,219 $ 293,069 (a) Certain corporate overhead and other costs of $8.5 million for the three months ended March 2016, previously allocated to the Contemporary Brands, Imagewear and Outdoor & Action Sports coalitions for segment reporting purposes, have been reallocated to continuing operations as discussed in Note B. (b) Interest expense of $0.5 million for the three months ended March 2016, previously allocated to the Contemporary Brands coalition for segment reporting purposes, has been reallocated to continuing operations as discussed in Note B. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended March In thousands, except per share amounts 2017 2016 Earnings per share – basic: Income from continuing operations $ 214,679 $ 241,935 Weighted average common shares outstanding 411,990 421,748 Earnings per share from continuing operations $ 0.52 $ 0.57 Earnings per share – diluted: Income from continuing operations $ 214,679 $ 241,935 Weighted average common shares outstanding 411,990 421,748 Incremental shares from stock options and other dilutive securities 3,970 7,385 Adjusted weighted average common shares outstanding 415,960 429,133 Earnings per share from continuing operations $ 0.52 $ 0.56 Outstanding options to purchase 10.6 million and 5.5 million shares of Common Stock were excluded from the calculations of diluted earnings per share for the three -month periods ended March 2017 and March 2016 , respectively, because the effect of their inclusion would have been antidilutive to those periods. In addition, 1.1 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three -month periods ended March 2017 and March 2016 , respectively, because these units were not considered to be contingent outstanding shares in those periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2017 | |
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. The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 March 2017 Financial assets: Cash equivalents: Money market funds $ 302,043 $ 302,043 $ — $ — Time deposits 24,195 24,195 — — Derivative financial instruments 72,306 — 72,306 — Investment securities 204,391 188,796 15,595 — Financial liabilities: Derivative financial instruments 25,673 — 25,673 — Deferred compensation 239,974 — 239,974 — 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 — (a) There were no transfers among the levels within the fair value hierarchy during the first quarter of 2017 or the year ended December 2016 . VF’s cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of forward foreign currency exchange contracts, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. Investment securities are held in VF’s deferred compensation plans as an economic hedge of the related deferred compensation liabilities. These investments are classified as trading securities and primarily include mutual funds (Level 1) that are valued based on quoted prices in active markets and a separately managed fixed-income fund (Level 2) 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. 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 March 2017 and December 2016 , their carrying values approximated their fair values. Additionally, at March 2017 and December 2016 , the carrying values of VF’s long-term debt, including the current portion, were $2,305.2 million and $2,292.9 million , respectively, compared with fair values of $2,490.7 million and $2,486.6 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Apr. 01, 2017 | |
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 March 2017 , $2.2 billion at December 2016 and $2.3 billion at March 2016 , consisting primarily of contracts hedging exposures to the euro, British pound, Canadian dollar, Swiss franc, Mexican peso, Japanese yen, Swedish krona 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 In thousands March 2017 December 2016 March 2016 March 2017 December 2016 March 2016 Foreign currency exchange contracts designated as hedging instruments $ 72,306 $ 103,340 $ 71,007 $ (25,460 ) $ (25,292 ) $ (43,149 ) Foreign currency exchange contracts not designated as hedging instruments — — 609 (213 ) (282 ) (507 ) Total derivatives $ 72,306 $ 103,340 $ 71,616 $ (25,673 ) $ (25,574 ) $ (43,656 ) VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. However, if VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: March 2017 December 2016 March 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 72,306 $ (25,673 ) $ 103,340 $ (25,574 ) $ 71,616 $ (43,656 ) Gross amounts not offset in the Consolidated Balance Sheets (25,316 ) 25,316 (22,341 ) 22,341 (36,554 ) 36,554 Net amounts $ 46,990 $ (357 ) $ 80,999 $ (3,233 ) $ 35,062 $ (7,102 ) Derivatives are classified as current or noncurrent based on maturity dates, as follows: In thousands March 2017 December 2016 March 2016 Other current assets $ 63,986 $ 84,519 $ 64,429 Accrued liabilities (19,630 ) (18,574 ) (31,369 ) Other assets 8,320 18,821 7,187 Other liabilities (6,043 ) (7,000 ) (12,287 ) 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: In thousands Gain (Loss) on Derivatives Recognized in OCI Three Months Ended March Cash Flow Hedging Relationships 2017 2016 Foreign currency exchange $ (10,094 ) $ (15,783 ) In thousands Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended March Location of Gain (Loss) 2017 2016 Net sales $ 6,413 $ (4,963 ) Cost of goods sold 11,274 43,837 Selling, general and administrative expenses (87 ) (978 ) Other income (expense), net 49 1,503 Interest expense (1,158 ) (1,104 ) Total $ 16,491 $ 38,295 Derivative Contracts Not Designated as Hedges 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: In thousands Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income Three Months Ended March 2017 2016 Foreign currency exchange Cost of goods sold $ 274 $ 1,504 Foreign currency exchange Other income (expense), net (469 ) (1,285 ) Total $ (195 ) $ 219 Other Derivative Information There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during the three -month periods ended March 2017 and March 2016 . At March 2017 , accumulated OCI included $47.3 million of pre-tax net deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during the next 12 months . The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled. VF entered into interest rate swap derivative contracts in 2011 and 2003 to hedge the interest rate risk for issuance of long-term debt due in 2021 and 2033 , respectively. In each case, the contracts were terminated concurrent with the issuance of the debt, and the realized gain or loss was deferred in accumulated OCI. The remaining pre-tax net deferred loss in accumulated OCI was $21.5 million at March 2017 , which will be reclassified into interest expense in the Consolidated Statements of Income over the remaining terms of the associated debt instruments. VF reclassified $1.2 million and $1.1 million of net deferred losses from accumulated OCI into interest expense for the three -month periods ended March 2017 and March 2016 , respectively. VF expects to reclassify $4.8 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 the first quarter of 2017 , the Company recognized a $12.7 million pre-tax loss in OCI related to the net investment hedge. 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 in the first quarter of 2017 . |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards 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 became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. The guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance became effective in the first quarter of 2017, but did not impact 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 became effective in the first quarter of 2017, but did not impact 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 became effective in the first quarter of 2017, but did not impact 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. The Company early adopted 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 cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet was a reduction in both the other assets and retained earnings line items of $237.8 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 became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents 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. The Company early adopted this guidance in the first quarter of 2017 on a retrospective basis and the Statement of Cash Flows included herein reflects $3.8 million and $0.8 million of restricted cash for March 2017 and March 2016, respectively. The Company’s restricted cash is generally held as collateral for certain transactions. 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 for VF in the first quarter of fiscal 2019 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 fiscal 2019. 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 for VF in the first quarter of fiscal 2019 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 for VF in the first quarter of fiscal 2020 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the Company’s significant number of leases, 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. The 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 for VF in the first quarter of fiscal 2019 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 for VF in the first quarter of fiscal 2021 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 for VF in the first quarter of fiscal 2019 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 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 for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company will apply this guidance to any transactions after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. 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 for VF in the first quarter of fiscal 2021 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 impairment analyses after adoption, which may have a significant impact on the calculated impairment charges, if any are required. In March 2017, the FASB issued an update which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest cost, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside of operating income. The amendments in this update specify that only the service cost component is eligible for capitalization, which is consistent with VF’s current practice. The presentation change in the Consolidated Statements of Income will be applied on a retrospective basis. This guidance will be effective for VF beginning in the first quarter of fiscal 2019 with early adoption permitted. Upon adoption, VF will reclassify the other components of net periodic benefit costs from the selling, general and administrative expenses line item in the Consolidated Statements of Income. Except for the reclassification within the Consolidated Statements of Income noted above, the Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the fourth quarter of 2016, VF leadership approved restructuring charges related to cost alignment initiatives, and recognized $58.1 million of restructuring charges. The Company did not recognize additional costs associated with these actions in the first quarter of 2017 and does not expect to recognize material additional costs relating to these actions in 2017. The Company expects a substantial amount of the restructuring activities to be completed by the end of 2017. The activity in the restructuring accrual for the three months ended March 2017 is as follows: In thousands Severance Other Total Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 Cash payments (5,762 ) — (5,762 ) Adjustments to accruals 90 — 90 Currency translation (115 ) — (115 ) Amounts recorded in accrued liabilities at March 2017 $ 46,933 $ 878 $ 47,811 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 01, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 25, 2017 , VF’s Board of Directors declared a quarterly cash dividend of $0.42 per share, payable on June 19, 2017 to stockholders of record on June 9, 2017 . On April 28, 2017, VF completed the sale of LSG to Fanatics, Inc. for $225.0 million , subject to working capital adjustments. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the December 2016 consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three months ended March 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 30, 2017 . For further information, refer to the consolidated financial statements and notes included in VF’s Annual Report on Form 10-K for the year ended December 2016 (“ 2016 Form 10-K”). |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards 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 became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In March 2016, the FASB issued an update to their accounting guidance on equity method accounting. The guidance eliminates the requirement to retroactively apply the equity method when an entity obtains significant influence over a previously held investment. This guidance became effective in the first quarter of 2017, but did not impact 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 became effective in the first quarter of 2017, but did not impact 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 became effective in the first quarter of 2017, but did not impact 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. The Company early adopted 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 cumulative adjustment to the January 1, 2017 Consolidated Balance Sheet was a reduction in both the other assets and retained earnings line items of $237.8 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 became effective in the first quarter of 2017, but did not impact VF’s consolidated financial statements. In November 2016, the FASB issued an update that requires restricted cash and restricted cash equivalents 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. The Company early adopted this guidance in the first quarter of 2017 on a retrospective basis and the Statement of Cash Flows included herein reflects $3.8 million and $0.8 million of restricted cash for March 2017 and March 2016, respectively. The Company’s restricted cash is generally held as collateral for certain transactions. 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 for VF in the first quarter of fiscal 2019 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 fiscal 2019. 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 for VF in the first quarter of fiscal 2019 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 for VF in the first quarter of fiscal 2020 with early adoption permitted. The standard requires use of the modified retrospective transition approach. Given the Company’s significant number of leases, 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. The 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 for VF in the first quarter of fiscal 2019 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 for VF in the first quarter of fiscal 2021 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 for VF in the first quarter of fiscal 2019 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 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 for VF in the first quarter of fiscal 2019 with early adoption permitted. The Company will apply this guidance to any transactions after adoption but does not expect it to have a significant impact on VF’s consolidated financial statements. 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 for VF in the first quarter of fiscal 2021 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 impairment analyses after adoption, which may have a significant impact on the calculated impairment charges, if any are required. In March 2017, the FASB issued an update which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest cost, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside of operating income. The amendments in this update specify that only the service cost component is eligible for capitalization, which is consistent with VF’s current practice. The presentation change in the Consolidated Statements of Income will be applied on a retrospective basis. This guidance will be effective for VF beginning in the first quarter of fiscal 2019 with early adoption permitted. Upon adoption, VF will reclassify the other components of net periodic benefit costs from the selling, general and administrative expenses line item in the Consolidated Statements of Income. Except for the reclassification within the Consolidated Statements of Income noted above, the Company does not expect the adoption of this accounting guidance to have a significant impact on VF’s consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Presented in Financial Statements | The following table summarizes the major line items included in the income (loss) from discontinued operations for the divestitures of the Licensing Business and Contemporary Brands coalition: Three Months Ended March In thousands 2017 2016 Revenues $ 121,330 $ 204,883 Cost of goods sold 88,221 121,306 Selling, general and administrative expenses 25,637 59,122 Interest expense, net (18 ) (135 ) Other income (expense), net — (2 ) Income from discontinued operations before income taxes 7,454 24,318 Estimated loss on the disposal of discontinued operations before income taxes (3,531 ) — Total income from discontinued operations before income taxes 3,923 24,318 Income tax expense (a) (9,439 ) (5,984 ) Income (loss) from discontinued operations, net of tax $ (5,516 ) $ 18,334 (a) Income tax expense for the three months ended March 2017 includes $7.5 million of deferred tax expense related to GAAP and tax basis differences for LSG. The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented. In thousands March 2017 December 2016 March 2016 Accounts receivable, net $ 44,281 $ 36,285 $ 71,113 Inventories 94,718 98,025 148,812 Other current assets, including cash and equivalents 14,650 1,535 7,849 Property, plant and equipment 11,696 13,640 56,017 Intangible assets 40,164 42,427 212,852 Goodwill 28,636 28,636 28,636 Other assets 921 692 4,297 Total assets of discontinued operations (a) $ 235,066 $ 221,240 $ 529,576 Accounts payable $ 21,789 $ 21,674 $ 21,538 Accrued liabilities 2,849 13,531 8,767 Other liabilities 763 791 11,504 Deferred income tax liabilities (b) (4,080 ) (4,081 ) (4,140 ) Total liabilities of discontinued operations (a) $ 21,321 $ 31,915 $ 37,669 (a) Amounts at December 2016 and March 2016 have been classified as current and long-term in the Consolidated Balance Sheets. (b) Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | In thousands March 2017 December 2016 March 2016 Finished products $ 1,452,623 $ 1,278,504 $ 1,432,829 Work-in-process 96,903 97,725 88,848 Raw materials 95,958 95,071 92,079 Total inventories $ 1,645,484 $ 1,471,300 $ 1,613,756 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | March 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 245,970 $ 119,018 $ 126,952 $ 128,422 License agreements 28 years Accelerated and straight-line 108,736 59,964 48,772 49,682 Trademark 16 years Straight-line 58,132 4,541 53,591 54,499 Other 8 years Straight-line 9,108 3,051 6,057 3,297 Amortizable intangible assets, net 235,372 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,578,726 1,561,371 Intangible assets, net $ 1,814,098 $ 1,797,271 |
Indefinite Lived Intangible Assets | March 2017 December 2016 In thousands Weighted Average Amortization Period Amortization Methods Cost Accumulated Amortization Net Carrying Amount Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years Accelerated $ 245,970 $ 119,018 $ 126,952 $ 128,422 License agreements 28 years Accelerated and straight-line 108,736 59,964 48,772 49,682 Trademark 16 years Straight-line 58,132 4,541 53,591 54,499 Other 8 years Straight-line 9,108 3,051 6,057 3,297 Amortizable intangible assets, net 235,372 235,900 Indefinite-lived intangible assets: Trademarks and trade names 1,578,726 1,561,371 Intangible assets, net $ 1,814,098 $ 1,797,271 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill are summarized by business segment as follows: In thousands Outdoor & Action Sports Jeanswear Imagewear Sportswear Total Balance, December 2016 $ 1,310,133 $ 210,765 $ 30,111 $ 157,314 $ 1,708,323 Currency translation 5,049 1,749 — — 6,798 Balance, March 2017 $ 1,315,182 $ 212,514 $ 30,111 $ 157,314 $ 1,715,121 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Pension Cost | The components of pension cost for VF’s defined benefit plans were as follows: Three Months Ended March In thousands 2017 2016 Service cost – benefits earned during the period $ 6,416 $ 6,449 Interest cost on projected benefit obligations 14,815 17,034 Expected return on plan assets (23,355 ) (24,919 ) Amortization of deferred amounts: Net deferred actuarial losses 11,382 16,306 Deferred prior service costs 712 647 Net periodic pension cost $ 9,970 $ 15,517 |
Capital and Accumulated Other31
Capital and Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Shares Held for Deferred Compensation Plans | During the first quarter of 2017 , the Company purchased 1,400 shares of Common Stock in open market transactions for $0.1 million . Balances related to shares held for deferred compensation plans were as follows: In thousands, except share amounts March 2017 December 2016 March 2016 Shares held for deferred compensation plans 427,567 439,667 550,149 Cost of shares held for deferred compensation plans $ 5,304 $ 5,464 $ 6,614 |
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in Accumulated OCI | The changes in accumulated OCI, net of related taxes, are as follows: Three Months Ended March 2017 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2016 $ (794,579 ) $ (302,697 ) $ 55,813 $ (1,041,463 ) Other comprehensive income (loss) before reclassifications 52,298 12,253 (7,534 ) 57,017 Amounts reclassified from accumulated other comprehensive income (loss) — 8,723 (12,317 ) (3,594 ) Net other comprehensive income (loss) 52,298 20,976 (19,851 ) 53,423 Balance, March 2017 $ (742,281 ) $ (281,721 ) $ 35,962 $ (988,040 ) Three Months Ended March 2016 In thousands Foreign Currency Translation and Other Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2015 $ (718,169 ) $ (372,195 ) $ 47,142 $ (1,043,222 ) Other comprehensive income (loss) before reclassifications 115,279 — (9,698 ) 105,581 Amounts reclassified from accumulated other comprehensive income (loss) — 10,884 (23,528 ) (12,644 ) Net other comprehensive income (loss) 115,279 10,884 (33,226 ) 92,937 Balance, March 2016 $ (602,890 ) $ (361,311 ) $ 13,916 $ (950,285 ) The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows: In thousands March 2017 December 2016 March 2016 Foreign currency translation and other $ (742,281 ) $ (794,579 ) $ (602,890 ) Defined benefit pension plans (281,721 ) (302,697 ) (361,311 ) Derivative financial instruments 35,962 55,813 13,916 Accumulated other comprehensive loss $ (988,040 ) $ (1,041,463 ) $ (950,285 ) |
Reclassifications Out of Accumulated OCI | Reclassifications out of accumulated OCI are as follows: In thousands Affected Line Item in the Consolidated Statements of Income Three Months Ended March Details About Accumulated Other Comprehensive Income (Loss) Components 2017 2016 Amortization of defined benefit pension plans: Net deferred actuarial losses (a) $ (11,382 ) $ (16,306 ) Deferred prior service costs (a) (712 ) (647 ) Pension curtailment loss Income (loss) from discontinued operations, net of tax (1,105 ) — Total before tax (13,199 ) (16,953 ) Tax benefit 4,476 6,069 Net of tax (8,723 ) (10,884 ) Gains (losses) on derivative financial instruments: Foreign exchange contracts Net sales 6,413 (4,963 ) Foreign exchange contracts Cost of goods sold 11,274 43,837 Foreign exchange contracts Selling, general and administrative expenses (87 ) (978 ) Foreign exchange contracts Other income (expense), net 49 1,503 Interest rate contracts Interest expense (1,158 ) (1,104 ) Total before tax 16,491 38,295 Tax expense (4,174 ) (14,767 ) Net of tax 12,317 23,528 Total reclassifications for the period Net of tax $ 3,594 $ 12,644 (a) These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note G for additional details). |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted | The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows: Options Granted Three Months Ended March 2017 Expected volatility 23% to 29% Weighted average expected volatility 24% Expected term (in years) 6.3 to 7.7 Weighted average dividend yield 2.8% Risk-free interest rate 0.7% to 2.4% Weighted average fair value at date of grant $9.88 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for VF’s reportable segments is as follows: Three Months Ended March In thousands 2017 2016 Coalition revenues: Outdoor & Action Sports $ 1,678,810 $ 1,639,085 Jeanswear 647,442 710,590 Imagewear 134,966 141,811 Sportswear 98,317 118,397 Other 22,142 24,534 Total coalition revenues $ 2,581,677 $ 2,634,417 Coalition profit: (a) Outdoor & Action Sports $ 230,944 $ 228,110 Jeanswear 118,019 137,294 Imagewear 24,400 26,139 Sportswear (1,069 ) 4,776 Other (2,195 ) (2,608 ) Total coalition profit 370,099 393,711 Corporate and other expenses (a) (78,692 ) (80,622 ) Interest expense, net (b) (20,188 ) (20,020 ) Income from continuing operations before income taxes $ 271,219 $ 293,069 (a) Certain corporate overhead and other costs of $8.5 million for the three months ended March 2016, previously allocated to the Contemporary Brands, Imagewear and Outdoor & Action Sports coalitions for segment reporting purposes, have been reallocated to continuing operations as discussed in Note B. (b) Interest expense of $0.5 million for the three months ended March 2016, previously allocated to the Contemporary Brands coalition for segment reporting purposes, has been reallocated to continuing operations as discussed in Note B. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended March In thousands, except per share amounts 2017 2016 Earnings per share – basic: Income from continuing operations $ 214,679 $ 241,935 Weighted average common shares outstanding 411,990 421,748 Earnings per share from continuing operations $ 0.52 $ 0.57 Earnings per share – diluted: Income from continuing operations $ 214,679 $ 241,935 Weighted average common shares outstanding 411,990 421,748 Incremental shares from stock options and other dilutive securities 3,970 7,385 Adjusted weighted average common shares outstanding 415,960 429,133 Earnings per share from continuing operations $ 0.52 $ 0.56 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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: Total Fair Value Fair Value Measurement Using (a) In thousands Level 1 Level 2 Level 3 March 2017 Financial assets: Cash equivalents: Money market funds $ 302,043 $ 302,043 $ — $ — Time deposits 24,195 24,195 — — Derivative financial instruments 72,306 — 72,306 — Investment securities 204,391 188,796 15,595 — Financial liabilities: Derivative financial instruments 25,673 — 25,673 — Deferred compensation 239,974 — 239,974 — 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 — (a) There were no transfers among the levels within the fair value hierarchy during the first quarter of 2017 or the year ended December 2016 . |
Derivative Financial Instrume36
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 In thousands March 2017 December 2016 March 2016 March 2017 December 2016 March 2016 Foreign currency exchange contracts designated as hedging instruments $ 72,306 $ 103,340 $ 71,007 $ (25,460 ) $ (25,292 ) $ (43,149 ) Foreign currency exchange contracts not designated as hedging instruments — — 609 (213 ) (282 ) (507 ) Total derivatives $ 72,306 $ 103,340 $ 71,616 $ (25,673 ) $ (25,574 ) $ (43,656 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. However, if VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: March 2017 December 2016 March 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 72,306 $ (25,673 ) $ 103,340 $ (25,574 ) $ 71,616 $ (43,656 ) Gross amounts not offset in the Consolidated Balance Sheets (25,316 ) 25,316 (22,341 ) 22,341 (36,554 ) 36,554 Net amounts $ 46,990 $ (357 ) $ 80,999 $ (3,233 ) $ 35,062 $ (7,102 ) |
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. However, if VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table: March 2017 December 2016 March 2016 In thousands Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the Consolidated Balance Sheets $ 72,306 $ (25,673 ) $ 103,340 $ (25,574 ) $ 71,616 $ (43,656 ) Gross amounts not offset in the Consolidated Balance Sheets (25,316 ) 25,316 (22,341 ) 22,341 (36,554 ) 36,554 Net amounts $ 46,990 $ (357 ) $ 80,999 $ (3,233 ) $ 35,062 $ (7,102 ) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows: In thousands March 2017 December 2016 March 2016 Other current assets $ 63,986 $ 84,519 $ 64,429 Accrued liabilities (19,630 ) (18,574 ) (31,369 ) Other assets 8,320 18,821 7,187 Other liabilities (6,043 ) (7,000 ) (12,287 ) |
Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The effects of cash flow hedging included in VF’s Consolidated Statements of Income and Consolidated Statements of Comprehensive Income are summarized as follows: In thousands Gain (Loss) on Derivatives Recognized in OCI Three Months Ended March Cash Flow Hedging Relationships 2017 2016 Foreign currency exchange $ (10,094 ) $ (15,783 ) In thousands Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended March Location of Gain (Loss) 2017 2016 Net sales $ 6,413 $ (4,963 ) Cost of goods sold 11,274 43,837 Selling, general and administrative expenses (87 ) (978 ) Other income (expense), net 49 1,503 Interest expense (1,158 ) (1,104 ) Total $ 16,491 $ 38,295 |
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: In thousands Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income Three Months Ended March 2017 2016 Foreign currency exchange Cost of goods sold $ 274 $ 1,504 Foreign currency exchange Other income (expense), net (469 ) (1,285 ) Total $ (195 ) $ 219 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Activity in Restructuring Accrual | The activity in the restructuring accrual for the three months ended March 2017 is as follows: In thousands Severance Other Total Amounts recorded in accrued liabilities at December 2016 $ 52,720 $ 878 $ 53,598 Cash payments (5,762 ) — (5,762 ) Adjustments to accruals 90 — 90 Currency translation (115 ) — (115 ) Amounts recorded in accrued liabilities at March 2017 $ 46,933 $ 878 $ 47,811 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | Apr. 28, 2017 | Aug. 26, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 |
Licensing Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Estimated loss on sale | $ (3,531) | ||||
After-tax income (loss) on sale | (2,400) | ||||
Depreciation and amortization | $ 3,000 | ||||
Contemporary Brands | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
After-tax income (loss) on sale | $ 3,400 | $ (104,400) | |||
Proceeds from sale of business | $ 116,900 | ||||
Contemporary Brands and Licensing Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Estimated loss on sale | 0 | ||||
Depreciation and amortization | $ 4,800 | ||||
Subsequent Event | Licensing Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration for sale of business | $ 225,000 | ||||
Minimum | Subsequent Event | Licensing Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Support services period (up to) | 3 months | ||||
Maximum | Subsequent Event | Licensing Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Support services period (up to) | 24 months |
Discontinued Operations - Summa
Discontinued Operations - Summary of Major Line Items included in Income (Loss) from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Licensing Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | $ 121,330 | |
Cost of goods sold | 88,221 | |
Selling, general and administrative expenses | 25,637 | |
Interest expense, net | (18) | |
Other income (expense), net | 0 | |
Income from discontinued operations before income taxes | 7,454 | |
Estimated loss on the disposal of discontinued operations before income taxes | (3,531) | |
Total income from discontinued operations before income taxes | 3,923 | |
Income tax expense | (9,439) | |
Income (loss) from discontinued operations, net of tax | (5,516) | |
Deferred tax expense related to GAAP and tax basis differences | $ 7,500 | |
Contemporary Brands and Licensing Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | $ 204,883 | |
Cost of goods sold | 121,306 | |
Selling, general and administrative expenses | 59,122 | |
Interest expense, net | (135) | |
Other income (expense), net | (2) | |
Income from discontinued operations before income taxes | 24,318 | |
Estimated loss on the disposal of discontinued operations before income taxes | 0 | |
Total income from discontinued operations before income taxes | 24,318 | |
Income tax expense | (5,984) | |
Income (loss) from discontinued operations, net of tax | $ 18,334 |
Discontinued Operations - Sum40
Discontinued Operations - Summary of Carrying Amounts of Assets and Liabilities for Discontinued Operations (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other assets | $ 0 | $ 85,395 | $ 301,802 |
Licensing Business | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts receivable, net | 44,281 | 36,285 | |
Inventories | 94,718 | 98,025 | |
Other current assets, including cash and equivalents | 14,650 | 1,535 | |
Property, plant and equipment | 11,696 | 13,640 | |
Intangible assets | 40,164 | 42,427 | |
Goodwill | 28,636 | 28,636 | |
Other assets | 921 | 692 | |
Total assets of discontinued operations | 235,066 | 221,240 | |
Accounts payable | 21,789 | 21,674 | |
Accrued liabilities | 2,849 | 13,531 | |
Other liabilities | 763 | 791 | |
Deferred income tax liabilities | (4,080) | (4,081) | |
Total liabilities of discontinued operations | $ 21,321 | $ 31,915 | |
Contemporary Brands and Licensing Business | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts receivable, net | 71,113 | ||
Inventories | 148,812 | ||
Other current assets, including cash and equivalents | 7,849 | ||
Property, plant and equipment | 56,017 | ||
Intangible assets | 212,852 | ||
Goodwill | 28,636 | ||
Other assets | 4,297 | ||
Total assets of discontinued operations | 529,576 | ||
Accounts payable | 21,538 | ||
Accrued liabilities | 8,767 | ||
Other liabilities | 11,504 | ||
Deferred income tax liabilities | (4,140) | ||
Total liabilities of discontinued operations | $ 37,669 |
Sale of Accounts Receivable - A
Sale of Accounts Receivable - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Maximum amount of accounts receivable sold at any point in time (up to) | $ 367.5 | $ 367.5 | |
Sale of accounts receivable | 285.1 | ||
Accounts receivable removed related to sale of accounts receivable | 145.3 | 241.7 | $ 209.5 |
Funding fee | $ 0.9 | $ 0.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 1,452,623 | $ 1,278,504 | $ 1,432,829 |
Work-in-process | 96,903 | 97,725 | 88,848 |
Raw materials | 95,958 | 95,071 | 92,079 |
Total inventories | $ 1,645,484 | $ 1,471,300 | $ 1,613,756 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, net carrying amount | $ 235,372 | $ 235,900 | |
Indefinite-lived intangible assets: Trademarks and trade names | 1,578,726 | 1,561,371 | |
Intangible assets, net | $ 1,814,098 | 1,797,271 | $ 1,957,965 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 20 years | ||
Amortizable intangible assets, cost | $ 245,970 | ||
Amortizable intangible assets, accumulated amortization | 119,018 | ||
Amortizable intangible assets, net carrying amount | $ 126,952 | 128,422 | |
License agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 28 years | ||
Amortizable intangible assets, cost | $ 108,736 | ||
Amortizable intangible assets, accumulated amortization | 59,964 | ||
Amortizable intangible assets, net carrying amount | $ 48,772 | 49,682 | |
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 | 4,541 | ||
Amortizable intangible assets, net carrying amount | $ 53,591 | 54,499 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, weighted average amortization period (in years) | 8 years | ||
Amortizable intangible assets, cost | $ 9,108 | ||
Amortizable intangible assets, accumulated amortization | 3,051 | ||
Amortizable intangible assets, net carrying amount | $ 6,057 | $ 3,297 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization of intangible assets | $ 5.3 |
Estimated amortization expense, 2017 | 21 |
Estimated amortization expense, 2018 | 20.5 |
Estimated amortization expense, 2019 | 19.9 |
Estimated amortization expense, 2020 | 19 |
Estimated amortization expense, 2021 | $ 18.2 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,708,323 |
Currency translation | 6,798 |
Goodwill, ending balance | 1,715,121 |
Outdoor & Action Sports | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,310,133 |
Currency translation | 5,049 |
Goodwill, ending balance | 1,315,182 |
Jeanswear | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 210,765 |
Currency translation | 1,749 |
Goodwill, ending balance | 212,514 |
Imagewear | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 30,111 |
Currency translation | 0 |
Goodwill, ending balance | 30,111 |
Sportswear | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 157,314 |
Currency translation | 0 |
Goodwill, ending balance | $ 157,314 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Goodwill [Line Items] | |
Impairment charges | $ 0 |
Outdoor & Action Sports | |
Goodwill [Line Items] | |
Accumulated impairment charges | 82,700,000 |
Sportswear | |
Goodwill [Line Items] | |
Accumulated impairment charges | $ 58,500,000 |
Pension Plans - Components of P
Pension Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost – benefits earned during the period | $ 6,416 | $ 6,449 |
Interest cost on projected benefit obligations | 14,815 | 17,034 |
Expected return on plan assets | (23,355) | (24,919) |
Amortization of deferred amounts: | ||
Net deferred actuarial losses | 11,382 | 16,306 |
Deferred prior service costs | 712 | 647 |
Net periodic pension cost | $ 9,970 | $ 15,517 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined benefit pension plan contributed | $ 2.2 |
Defined benefit pension plan additional contributions to make during the remainder of the year | 8.5 |
Discontinued Operations, Disposed of by Sale | Licensing Business | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension curtailment | $ 1.1 |
Capital and Accumulated Other49
Capital and Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 | |
Equity [Abstract] | |||
Common Stock, shares, purchased (in shares) | 8,200,000 | ||
Common Stock, value, purchased | $ 438.2 | ||
Treasury shares restored as unissued status (in shares) | 8,200,000 | ||
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, shares (in shares) | 1,400 | ||
Common Stock held in trust for deferred compensation plan | $ 0.1 |
Capital and Accumulated Other50
Capital and Accumulated Other Comprehensive Loss - Shares Held for Deferred Compensation Plans (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Equity [Abstract] | |||
Shares held for deferred compensation plans | 427,567 | 439,667 | 550,149 |
Cost of shares held for deferred compensation plans | $ 5,304 | $ 5,464 | $ 6,614 |
Capital and Accumulated Other51
Capital and Accumulated Other Comprehensive Loss - Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 | Jan. 02, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 4,373,057 | $ 4,940,921 | $ 4,893,946 | |
Foreign currency translation and other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (742,281) | (794,579) | (602,890) | |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (281,721) | (302,697) | (361,311) | $ (372,195) |
Derivative Financial Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 35,962 | 55,813 | 13,916 | 47,142 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (988,040) | $ (1,041,463) | $ (950,285) | $ (1,043,222) |
Capital and Accumulated Other52
Capital and Accumulated Other Comprehensive Loss - Changes in Accumulated OCI, Net of Related Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ 4,940,921 | |
Other comprehensive income (loss) before reclassifications | 57,017 | $ 105,581 |
Amounts reclassified from accumulated other comprehensive income (loss) | (3,594) | (12,644) |
Net other comprehensive income (loss) | 53,423 | 92,937 |
Balance | 4,373,057 | 4,893,946 |
Foreign Currency Translation and Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (794,579) | (718,169) |
Other comprehensive income (loss) before reclassifications | 52,298 | 115,279 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income (loss) | 52,298 | 115,279 |
Balance | (742,281) | (602,890) |
Defined Benefit Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (302,697) | (372,195) |
Other comprehensive income (loss) before reclassifications | 12,253 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 8,723 | 10,884 |
Net other comprehensive income (loss) | 20,976 | 10,884 |
Balance | (281,721) | (361,311) |
Derivative Financial Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | 55,813 | 47,142 |
Other comprehensive income (loss) before reclassifications | (7,534) | (9,698) |
Amounts reclassified from accumulated other comprehensive income (loss) | (12,317) | (23,528) |
Net other comprehensive income (loss) | (19,851) | (33,226) |
Balance | 35,962 | 13,916 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (1,041,463) | (1,043,222) |
Balance | $ (988,040) | $ (950,285) |
Capital and Accumulated Other53
Capital and Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | $ 3,594 | $ 12,644 |
Net sales | 2,555,693 | 2,606,982 |
Cost of goods sold | (1,286,685) | (1,350,700) |
Selling, general and administrative expenses | (1,003,518) | (971,920) |
Other income (expense), net | (67) | 1,292 |
Interest expense | (23,706) | (22,028) |
Income from continuing operations before income taxes | 271,219 | 293,069 |
Tax expense | (56,540) | (51,134) |
Net income | 209,163 | 260,269 |
Net deferred actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | (11,382) | (16,306) |
Deferred prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | (712) | (647) |
Defined Benefit Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | (13,199) | (16,953) |
Tax benefit | 4,476 | 6,069 |
Total reclassifications for the period | (8,723) | (10,884) |
Pension curtailment loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | (1,105) | 0 |
Gains (losses) on derivative financial instruments: | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 6,413 | (4,963) |
Cost of goods sold | 11,274 | 43,837 |
Selling, general and administrative expenses | (87) | (978) |
Other income (expense), net | 49 | 1,503 |
Interest expense | (1,158) | (1,104) |
Income from continuing operations before income taxes | 16,491 | 38,295 |
Tax expense | (4,174) | (14,767) |
Net income | $ 12,317 | $ 23,528 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) | 3 Months Ended |
Apr. 01, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted in period (in shares) | 3,407,216 |
Weighted exercise price of options granted (in USD per share) | $ / shares | $ 53.47 |
Share based compensation vesting period | 3 years |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 3 years |
Restricted stock units granted in period (in shares) | 597,121 |
Award expiration period from grant date | 3 years |
Baseline profitability goal period | 3 years |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 53.47 |
Percentage of targets award adjusted to actual number of shares earned | 25.00% |
Performance period | 3 years |
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) | $ / shares | $ 2.67 |
Nonperformance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 4 years |
Restricted stock units granted in period (in shares) | 76,702 |
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 53.47 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation vesting period | 5 years |
Restricted stock units granted in period (in shares) | 263,770 |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 53.47 |
Nonemployee 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 |
Nonemployee Board of Directors | Nonperformance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted in period (in shares) | 17,964 |
Award expiration period from grant date | 1 year |
Grant date fair value of each restricted units granted (in USD per share) | $ / shares | $ 53.47 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted (Details) | 3 Months Ended |
Apr. 01, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 23.00% |
Expected volatility, maximum | 29.00% |
Weighted average expected volatility | 24.00% |
Weighted average dividend yield | 2.80% |
Risk-free interest rate, minimum | 0.70% |
Risk-free interest rate, maximum | 2.40% |
Weighted average fair value at date of grant (in USD per share) | $ 9.88 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 3 months 18 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 7 years 8 months 12 days |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) € in Millions, $ in Millions | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Jan. 10, 2017EUR (€) |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 20.80% | 17.40% | |||
Net discrete tax Benefits | $ 1.1 | $ 19.5 | |||
Tax benefit related to stock compensation | 15.7 | ||||
Tax benefit related to the early adoption | 3 | ||||
Realization of unrecognized net tax expense (benefit) | $ 1.9 | $ (3.8) | |||
Tax reduction due to discrete items | 0.40% | 6.70% | |||
Change in effective income tax rate without discrete items | 2.90% | ||||
Increase in unrecognized tax benefits and associated interest | $ 4.5 | ||||
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 155 | ||||
Possible decrease in unrecognized income tax benefits | 28.3 | ||||
Reduction in income tax expenses | $ 25.4 | ||||
VF Europe BVBA | Domestic Tax Authority | Administration of the Treasury, Belgium | |||||
Income Tax Contingency [Line Items] | |||||
Tax and interest from settlement | € | € 31.9 | ||||
Tax remitted | $ 33.9 | € 31.9 |
Business Segment Information -
Business Segment Information - Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,581,677 | $ 2,634,417 |
Operating income | 291,474 | 311,797 |
Corporate and other expenses | (78,692) | (80,622) |
Interest expense, net | (20,188) | (20,020) |
Income from continuing operations before income taxes | 271,219 | 293,069 |
Outdoor & Action Sports | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,678,810 | 1,639,085 |
Operating income | 230,944 | 228,110 |
Jeanswear | ||
Segment Reporting Information [Line Items] | ||
Revenues | 647,442 | 710,590 |
Operating income | 118,019 | 137,294 |
Imagewear | ||
Segment Reporting Information [Line Items] | ||
Revenues | 134,966 | 141,811 |
Operating income | 24,400 | 26,139 |
Sportswear | ||
Segment Reporting Information [Line Items] | ||
Revenues | 98,317 | 118,397 |
Operating income | (1,069) | 4,776 |
Other Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22,142 | 24,534 |
Operating income | (2,195) | (2,608) |
Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Certain corporate overhead costs allocated to selling, general, and administrative expense | 8,500 | |
Interest expense | 500 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ 370,099 | $ 393,711 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Earnings per share – basic: | ||
Income from continuing operations | $ 214,679 | $ 241,935 |
Weighted average common shares outstanding (in shares) | 411,990 | 421,748 |
Earnings per share from continuing operations (in USD per share) | $ 0.52 | $ 0.57 |
Earnings per share – diluted: | ||
Income from continuing operations | $ 214,679 | $ 241,935 |
Weighted average common shares outstanding (in shares) | 411,990 | 421,748 |
Incremental shares from stock options and other dilutive securities (in shares) | 3,970 | 7,385 |
Adjusted weighted average common shares outstanding (in shares) | 415,960 | 429,133 |
Earnings per share from continuing operations (in USD per share) | $ 0.52 | $ 0.56 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Employees And Non Employees Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from computation of earnings per share | 10.6 | 5.5 |
Performance-Based Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from computation of earnings per share | 1.1 | 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 | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Cash equivalents: | |||
Cash equivalents, money market funds | $ 302,043 | $ 840,842 | |
Cash equivalents, time deposits | 24,195 | 14,774 | |
Derivative financial instruments | 72,306 | 103,340 | $ 71,616 |
Investment securities | 204,391 | 196,738 | |
Financial Liabilities Fair Value Disclosure [Abstract] | |||
Derivative financial instruments | 25,673 | 25,574 | $ 43,656 |
Deferred compensation | 239,974 | 232,214 | |
Level 1 | |||
Cash equivalents: | |||
Cash equivalents, money market funds | 302,043 | 840,842 | |
Cash equivalents, time deposits | 24,195 | 14,774 | |
Investment securities | 188,796 | 179,673 | |
Level 2 | |||
Cash equivalents: | |||
Derivative financial instruments | 72,306 | 103,340 | |
Investment securities | 15,595 | 17,065 | |
Financial Liabilities Fair Value Disclosure [Abstract] | |||
Derivative financial instruments | 25,673 | 25,574 | |
Deferred compensation | $ 239,974 | $ 232,214 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, carrying values | $ 2,305.2 | $ 2,292.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair values | $ 2,490.7 | $ 2,486.6 |
Derivative Financial Instrume62
Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) € in Millions | 3 Months Ended | |||
Apr. 01, 2017USD ($) | Apr. 01, 2017EUR (€) | Apr. 02, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative contract maturity (up to) | 24 months | 24 months | ||
No significant amounts recognized in earnings for the ineffective portion | $ 0 | $ 0 | ||
Net pretax deferred gains for foreign currency exchange contracts that are expected to be reclassified to earnings during next 12 months | 47,300,000 | |||
Remaining pretax deferred net loss in Accumulated OCI | 21,500,000 | |||
Net deferred loss in accumulated OCI reclassified to earnings | 1,200,000 | 1,100,000 | ||
Net deferred loss in accumulated OCI expected to be reclassified to earnings over remainder of year | 4,800,000 | |||
Foreign Currency Exchange Contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount of foreign currency derivatives | 2,200,000,000 | $ 2,300,000,000 | $ 2,200,000,000 | |
Net Investment Hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount of nonderivative instruments | € | € 850 | |||
Recognized loss in OCI related to net investment hedge | 12,700,000 | |||
Amount of ineffectiveness on net investment hedges | $ 0 |
Derivative Financial Instrume63
Derivative Financial Instruments and Hedging Activities - Outstanding Derivatives on Individual Contract Basis at Gross Amounts (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | $ 72,306 | $ 103,340 | $ 71,616 |
Fair value of derivatives with unrealized losses | (25,673) | (25,574) | (43,656) |
Foreign exchange contracts designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | 72,306 | 103,340 | 71,007 |
Fair value of derivatives with unrealized losses | (25,460) | (25,292) | (43,149) |
Foreign exchange contracts not designated as hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of derivatives with unrealized gains | 0 | 0 | 609 |
Fair value of derivatives with unrealized losses | $ (213) | $ (282) | $ (507) |
Derivative Financial Instrume64
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Derivative Asset | |||
Gross amounts presented in the Consolidated Balance Sheets | $ 72,306 | $ 103,340 | $ 71,616 |
Gross amounts not offset in the Consolidated Balance Sheets | (25,316) | (22,341) | (36,554) |
Net amounts | 46,990 | 80,999 | 35,062 |
Derivative Liability | |||
Gross amounts presented in the Consolidated Balance Sheets | (25,673) | (25,574) | (43,656) |
Gross amounts not offset in the Consolidated Balance Sheets | 25,316 | 22,341 | 36,554 |
Net amounts | $ (357) | $ (3,233) | $ (7,102) |
Derivative Financial Instrume65
Derivative Financial Instruments and Hedging Activities - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other current assets | $ 63,986 | $ 84,519 | $ 64,429 |
Accrued liabilities | (19,630) | (18,574) | (31,369) |
Other assets | 8,320 | 18,821 | 7,187 |
Other liabilities | $ (6,043) | $ (7,000) | $ (12,287) |
Derivative Financial Instrume66
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 | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ 16,491 | $ 38,295 |
Foreign Currency Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivatives Recognized in OCI | (10,094) | (15,783) |
Foreign Currency Exchange Contract | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 6,413 | (4,963) |
Foreign Currency Exchange Contract | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 11,274 | 43,837 |
Foreign Currency Exchange Contract | Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | (87) | (978) |
Foreign Currency Exchange Contract | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 49 | 1,503 |
Interest Rate Contract | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ (1,158) | $ (1,104) |
Derivative Financial Instrume67
Derivative Financial Instruments and Hedging Activities - Hedges Included in Consolidated Statements of Income (Details) - Foreign exchange contracts not designated as hedging - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivatives Recognized in Income | $ (195) | $ 219 |
Cost of goods sold | Foreign Currency Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivatives Recognized in Income | 274 | 1,504 |
Other income (expense), net | Foreign Currency Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivatives Recognized in Income | $ (469) | $ (1,285) |
Recently Adopted and Issued A68
Recently Adopted and Issued Accounting Standards - Additional Information (Details) - New Accounting Pronouncement, Early Adoption, Effect - USD ($) $ in Millions | Apr. 01, 2017 | Jan. 01, 2017 | Apr. 02, 2016 |
Accounting Standards Update 2016-18 | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Restricted cash | $ 3.8 | $ 0.8 | |
Other Assets | Accounting Standards Update 2016-16 | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Adoption of new accounting standard | $ 237.8 | ||
Retained Earnings | Accounting Standards Update 2016-16 | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Adoption of new accounting standard | $ (237.8) |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 58,100 | |
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2016 | $ 53,598 | |
Adjustments to accruals | (5,762) | |
Cash payments | 90 | |
Currency translation | (115) | |
Amounts recorded in accrued liabilities at March 2017 | 47,811 | 53,598 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2016 | 52,720 | |
Adjustments to accruals | (5,762) | |
Cash payments | 90 | |
Currency translation | (115) | |
Amounts recorded in accrued liabilities at March 2017 | 46,933 | 52,720 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Amounts recorded in accrued liabilities at December 2016 | 878 | |
Adjustments to accruals | 0 | |
Cash payments | 0 | |
Currency translation | 0 | |
Amounts recorded in accrued liabilities at March 2017 | $ 878 | $ 878 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Apr. 28, 2017 | Apr. 25, 2017 |
Dividend Declared | ||
Subsequent Event [Line Items] | ||
Cash dividend (in USD per share) | $ 0.42 | |
Licensing Business | Discontinued Operations, Disposed of by Sale | ||
Subsequent Event [Line Items] | ||
Consideration for sale of business | $ 225 |