VF Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock-based Compensation (Tables)

Stock-based Compensation (Tables)

12 Months Ended

Dec. 28, 2013

Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory

Total stock-based compensation cost and the associated income tax benefits related to stock-based compensation arrangements recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, are as follows:


	2013		2012		2011
	In thousands
Stock-based compensation cost	$	87,118	$	92,814	$	76,739
Income tax benefits		32,059		34,156		28,240
Stock-based compensation cost included in inventory		119		221		261

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:


	2013	2012	2011
Expected volatility	24% to 29%	27% to 31%	27% to 38%
Weighted average expected volatility	27%	30%	34%
Expected term (in years)	5.6 to 7.4	5.6 to 7.5	5.6 to 7.5
Dividend yield	2.3%	2.5%	3.1%
Risk-free interest rate	0.1% to 2.0%	0.1% to 2.1%	0.2% to 3.5%
Weighted average fair value at date of grant	$8.34	$8.36	$6.28

Stock Option Activity

Stock option activity for 2013 is summarized as follows:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (In thousands)
Outstanding, December 2012		17,242,236		$	22.37
Granted		3,600,472			40.64
Exercised		(4,557,832	)		18.57
Forfeited/cancelled		(239,568	)		42.50

Outstanding, December 2013		16,045,308			27.25		6.8	$	550,843

Exercisable, December 2013		9,411,248		$	20.66		5.5	$	385,069

RSU Activity

RSU activity for 2013 is summarized as follows:


	Performance-based					Nonperformance-based
	Number Outstanding			Weighted Average Grant Date Fair Value		Number Outstanding			Weighted Average Grant Date Fair Value
Outstanding, December 2012		2,749,036		$	24.96		537,380		$	26.31
Granted		737,068			40.64		186,324			39.21
Issued as Common Stock		(1,115,392	)		18.07		(87,380	)		33.35
Forfeited/cancelled		(67,520	)		34.00		(22,000	)		32.59

Outstanding, December 2013		2,303,192			33.04		614,324			28.99

Vested, December 2013		1,361,935		$	29.21		16,324		$	40.49

Restricted Stock Activity

Restricted stock activity for 2013 is summarized below:


	Nonvested Shares Outstanding			Weighted Average Grant Date Fair Value
Nonvested shares, December 2012		680,440		$	24.85
Granted		320,000			38.79
Dividend equivalents		16,698			49.00
Vested		(156,988	)		23.72
Forfeited		(20,708	)		32.83

Nonvested shares, December 2013		839,442		$	30.66

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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