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

Jan. 02, 2016

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

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


	2015		2014		2013
	In thousands
Stock-based compensation cost	$	73,420	$	104,313	$	87,118
Income tax benefits		28,090		41,725		32,059
Stock-based compensation costs included in inventory		1,345		797		119

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:


	2015	2014	2013
Expected volatility	19% to 29%	23% to 29%	24% to 29%
Weighted average expected volatility	22%	26%	27%
Expected term (in years)	5.9 to 7.5	5.5 to 7.3	5.6 to 7.4
Weighted average dividend yield	2.0%	2.1%	2.3%
Risk-free interest rate	0.7% to 2.3%	0.1% to 2.7%	0.1% to 2.0%
Weighted average fair value at date of grant	$13.72	$12.01	$8.34

Stock Option Activity

Stock option activity for 2015 is summarized as follows:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (In thousands)
Outstanding, December 2014		15,135,028		$	33.42
Granted		2,472,074			75.33
Exercised		(2,703,881	)		24.60
Forfeited/cancelled		(187,811	)		60.91

Outstanding, December 2015		14,715,410			41.73		6.5	$	333,241

Exercisable, December 2015		9,621,016			30.89		5.4	$	301,757

RSU Activity

RSU activity for 2015 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 2014		1,940,661		$	43.73		386,595		$	34.86
Granted		456,009			75.33		81,856			71.17
Issued as Common Stock		(701,739	)		36.41		(183,595	)		28.86
Forfeited/cancelled		(45,301	)		58.22		(10,000	)		36.12

Outstanding, December 2015		1,649,630			55.18		274,856			49.64

Vested, December 2015		665,290			54.19		11,556			75.35

Restricted Stock Activity

Restricted stock activity for 2015 is summarized below:


	Nonvested Shares Outstanding			Weighted Average Grant Date Fair Value
Nonvested shares, December 2014		704,490		$	40.62
Granted		111,500			71.09
Dividend equivalents		13,139			69.30
Vested		(225,864	)		29.77
Forfeited		(8,628	)		65.28

Nonvested shares, December 2015		594,637			50.73