|
Income Taxes
|
3 Months Ended |
|---|---|
|
Mar. 31, 2012
|
|
| Income Taxes [Abstract] | |
| Income Taxes |
Note J — Income Taxes The effective income tax rate was 26.7% in the first quarter of 2012, compared with 21.9% in the first quarter of 2011. The first quarter of 2011 included $8.2 million in tax benefits related to settlements of prior years' tax audits and $2.8 million of tax benefits related to the realization of unrecognized tax benefits resulting from the expiration of statutes of limitations. The effective income tax rate for the full year 2011 was 23.6%. VF files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous states and foreign jurisdictions. In addition, Timberland filed a consolidated U.S. federal income tax return through the time of acquisition. The United States Internal Revenue Service ("IRS") is currently examining VF's tax years 2007, 2008 and 2009 and Timberland's tax years 2008 and 2009. VF is currently subject to examination by various state tax authorities. While the outcome of any one examination is not expected to have a material impact on VF's consolidated financial statements, management regularly assesses the outcomes of both ongoing and future examinations to ensure VF's provision for income taxes is sufficient. Management believes that some of these audits and negotiations will conclude during the next 12 months. During the first quarter of 2012, the amount of unrecognized tax benefits and associated interest decreased by $1.6 million to $101.1 million. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits may decrease during the next 12 months by approximately $12.2 million related to the completion of audits and other settlements with tax authorities and the expiration of statutes of limitations. Of the $12.2 million, $12.0 million would reduce income tax expense. |