Annual report pursuant to Section 13 and 15(d)

Property, Plant And Equipment

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Property, Plant And Equipment
 12 Months Ended
Dec. 31, 2011
Property, Plant And Equipment [Abstract]  
Property, Plant And Equipment

Note E — Property, Plant and Equipment

 

     2011      2010  
     In thousands  

Land

    $ 53,138       $ 48,158   

Buildings and improvements

      754,391         606,532   

Machinery and equipment

      1,022,510         1,008,609   
  

 

 

     

 

 

  

Property, plant and equipment, at cost

      1,830,039         1,663,299   

Less accumulated depreciation and amortization

      1,092,588         1,060,391   
  

 

 

     

 

 

  

Property, plant and equipment, net

    $ 737,451       $ 602,908   
  

 

 

     

 

 

  

Assets under capital leases, primarily buildings and improvements, are included in Property, Plant and Equipment at a cost of $43.6 million, less accumulated amortization of $16.2 million, at the end of 2011, and a cost of $45.3 million, less accumulated amortization of $15.4 million, at the end of 2010. Amortization expense for assets under capital leases is included in depreciation expense.

Property, Plant and Equipment at the end of 2011 includes $22.6 million of land and buildings owned by an independent contractor. When the contractor completes construction in 2012, VF has an obligation to purchase these assets at an estimated $38.3 million. The purchase obligation, representing the portion of the construction completed by the contractor through the end of 2011, has been recorded in Accrued Liabilities (Note J).

Assets subject to a mortgage have a cost of $21.2 million, less accumulated depreciation of $2.0 million and $1.5 million at the end of 2011 and 2010, respectively. All other Property, Plant and Equipment is unencumbered.