|
Derivative Financial Instruments and Hedging Activities (Tables)
|
6 Months Ended |
|
Jun. 30, 2012
|
| Outstanding Derivatives on Individual Contract Basis |
The following table
presents outstanding derivatives on an individual contract
basis:
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|
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|
|
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|
|
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|
|
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| |
|
Fair Value of Derivatives
with |
|
|
Fair Value of Derivatives
with |
|
| |
|
Unrealized
Gains |
|
|
Unrealized
Losses |
|
| |
|
June |
|
|
December |
|
|
June |
|
|
June |
|
|
December |
|
|
June |
|
| In thousands |
|
2012 |
|
|
2011 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
2011 |
|
|
Foreign exchange contracts
designated as hedging instruments
|
|
$ |
56,894 |
|
|
$ |
45,071 |
|
|
$ |
22,141 |
|
|
$ |
18,977 |
|
|
$ |
22,406 |
|
|
$ |
63,722 |
|
|
Foreign exchange contracts
dedesignated as hedging instruments
|
|
|
170 |
|
|
|
1,245 |
|
|
|
1,698 |
|
|
|
2,427 |
|
|
|
930 |
|
|
|
184 |
|
|
Foreign exchange contracts
not designated as hedging instruments
|
|
|
71 |
|
|
|
12 |
|
|
|
— |
|
|
|
214 |
|
|
|
177 |
|
|
|
— |
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|
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|
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|
Total
derivatives
|
|
$ |
57,135 |
|
|
$ |
46,328 |
|
|
$ |
23,839 |
|
|
$ |
21,618 |
|
|
$ |
23,513 |
|
|
$ |
63,906 |
|
|
|
|
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| Outstanding Derivatives Classified as Current or Noncurrent Based on Derivatives' Maturity Dates |
Outstanding derivatives
have been included in the Consolidated Balance Sheets and
classified as current or noncurrent based on the derivatives’
maturity dates, as follows:
|
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|
|
|
|
|
|
|
|
|
|
| In thousands |
|
June
2012
|
|
|
December
2011
|
|
|
June
2011
|
|
|
Other current
assets
|
|
$ |
50,313 |
|
|
$ |
39,076 |
|
|
$ |
21,421 |
|
|
Accrued current
liabilities
|
|
|
(18,739 |
) |
|
|
(19,326 |
) |
|
|
(58,040 |
) |
|
Other assets
(noncurrent)
|
|
|
6,822 |
|
|
|
7,252 |
|
|
|
2,418 |
|
|
Other liabilities
(noncurrent)
|
|
|
(2,879 |
) |
|
|
(4,187 |
) |
|
|
(5,866 |
) |
|
| Effects of Fair Value Hedging included in Consolidated Statements of Income |
VF’s Consolidated
Statements of Income include the following effects related to fair
value hedging:
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|
Location of
Gain
(Loss)
on Derivatives
Recognized
in
Income
|
|
|
|
|
|
|
|
Hedged Items
in Fair Value
Hedge
Relationships
|
|
Location of
Gain
(Loss)
Recognized
on Related
Hedged
Items
|
|
|
|
|
|
|
| In thousands |
|
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|
|
|
|
|
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|
Gain (Loss)
on |
|
| |
|
|
Gain (Loss) on Derivatives |
|
|
|
|
Related Hedged Items |
|
|
Fair Value
Hedging
Relationships
|
|
|
Recognized
in Income |
|
|
|
|
Recognized in Income |
|
| |
|
Three
Months |
|
|
Six
Months |
|
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|
Three
Months |
|
|
Six
Months |
|
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Periods ended June
2012
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|
| Foreign exchange |
|
Miscellaneous
income
(expense) |
|
$ |
— |
|
|
$ |
— |
|
|
Advances –
intercompany |
|
Miscellaneous
income
(expense) |
|
$ |
— |
|
|
$ |
— |
|
|
Periods ended June
2011
|
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Foreign exchange
|
|
Miscellaneous
income
(expense) |
|
$ |
(3,817 |
) |
|
$ |
(5,047 |
) |
|
Advances –
intercompany |
|
Miscellaneous
income
(expense) |
|
$ |
2,829 |
|
|
$ |
3,799 |
|
|
| Effects of Cash Flow Hedging included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income |
The effects of cash flow
hedging included in VF’s Consolidated Statements of Income
and Consolidated Statements of Comprehensive Income are summarized
as follows:
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| In thousands |
|
Gain (Loss) on |
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|
Gain (Loss) Reclassified |
|
| |
|
Derivatives |
|
|
|
|
from
Accumulated |
|
| Cash Flow
Hedging |
|
Recognized in OCI |
|
|
Location of Gain (Loss) |
|
OCI into Income |
|
| |
Three |
|
|
Six |
|
|
Reclassification From |
|
Three |
|
|
Six |
|
|
Relationships
|
|
Months |
|
|
Months |
|
|
Accumulated OCI into Income |
|
Months |
|
|
Months |
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|
Periods ended June
2012
|
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|
Foreign exchange
|
|
$ |
26,386 |
|
|
$ |
18,675 |
|
|
Net sales |
|
$ |
(2,484 |
) |
|
$ |
(1,780 |
) |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
283 |
|
|
|
597 |
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income (expense) |
|
|
553 |
|
|
|
(114 |
) |
|
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|
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|
|
|
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|
Interest expense |
|
|
(927 |
) |
|
|
(1,838 |
) |
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Total
|
|
$ |
26,386 |
|
|
$ |
18,675 |
|
|
Total |
|
$ |
(2,575 |
) |
|
$ |
(3,135 |
) |
|
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|
Periods ended June
2011
|
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|
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|
|
Foreign exchange
|
|
$ |
(8,370 |
) |
|
$ |
(34,552 |
) |
|
Net sales |
|
$ |
1,627 |
|
|
$ |
1,231 |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
(338 |
) |
|
|
4,804 |
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income (expense) |
|
|
(1,591 |
) |
|
|
(3,536 |
) |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
29 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Total
|
|
$ |
(8,370 |
) |
|
$ |
(34,552 |
) |
|
Total |
|
$ |
(273 |
) |
|
$ |
2,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not Designated as Hedging Instrument
|
|
| Effects of Fair Value Hedging included in Consolidated Statements of Income |
Following is a summary of
these hedges included in VF’s Consolidated Statements of
Income:
|
|
|
|
|
|
|
|
|
|
|
| |
|
Location of Gain (Loss) |
|
Gain
(Loss) on Derivatives |
|
| Derivatives
Not |
|
on Derivatives |
|
Recognized in Income |
|
|
Designated
as Hedges
|
|
Recognized in Income |
|
2012 |
|
|
2011 |
|
|
Foreign exchange
|
|
Miscellaneous income (expense) |
|
$ |
1,376 |
|
|
$ |
— |
|
|