Annual report pursuant to Section 13 and 15(d)

Accounts Receivable

v3.6.0.2
Accounts Receivable
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Accounts Receivable
Accounts Receivable
 
 
2016
 
2015
 
In thousands
Trade
$
1,147,942

 
$
1,240,654

Royalty and other
70,867

 
72,583

Total accounts receivable
1,218,809

 
1,313,237

Less allowance for doubtful accounts
21,131

 
23,275

Accounts receivable, net
$
1,197,678

 
$
1,289,962


VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. This agreement was amended in January 2016 to permit up to $367.5 million of VF’s accounts receivable to be sold to the financial institution and remain outstanding at any point in time, compared to the $237.5 million limit in place at December 2015. VF removes the accounts receivable from the Consolidated Balance Sheets at the time of sale. VF does not retain any interests in the sold accounts receivable but continues to service and collect outstanding accounts receivable on behalf of the financial institution. During 2016 and 2015, VF sold total accounts receivable of $1,333.9 million and $1,340.9 million, respectively. As of December 2016 and 2015, $209.5 million and $144.9 million, respectively, of the sold accounts receivable had been removed from the Consolidated Balance Sheets but remained outstanding with the financial institution. The funding fee charged by the financial institution is included in the other income (expense), net line item in the Consolidated Statements of Income, and was $3.4 million in 2016, $1.9 million in 2015 and $1.7 million in 2014. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.