|
Derivative Financial Instruments and Hedging Activities (Tables)
|
9 Months Ended |
|
Sep. 29, 2012
|
| Outstanding Derivatives on Individual Contract Basis |
The following table
presents outstanding derivatives on an individual contract
basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value of
Derivatives with
Unrealized Gains |
|
|
Fair Value of
Derivatives with
Unrealized Losses |
|
| In thousands |
|
September
2012 |
|
|
December
2011 |
|
|
September
2011 |
|
|
September
2012 |
|
|
December
2011 |
|
|
September
2011 |
|
|
Foreign exchange contracts
designated as hedging instruments
|
|
$ |
26,664 |
|
|
$ |
45,071 |
|
|
$ |
29,073 |
|
|
$ |
22,910 |
|
|
$ |
22,406 |
|
|
$ |
24,231 |
|
|
Foreign exchange contracts
dedesignated as hedging instruments
|
|
|
64 |
|
|
|
1,245 |
|
|
|
2,220 |
|
|
|
4,976 |
|
|
|
930 |
|
|
|
201 |
|
|
Foreign exchange contracts
not dedesignated as hedging instruments
|
|
|
115 |
|
|
|
12 |
|
|
|
81 |
|
|
|
569 |
|
|
|
177 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
derivatives
|
|
$ |
26,843 |
|
|
$ |
46,328 |
|
|
$ |
31,374 |
|
|
$ |
28,455 |
|
|
$ |
23,513 |
|
|
$ |
24,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands |
|
September
2012 |
|
|
December
2011 |
|
|
September
2011 |
|
|
Other current
assets
|
|
$ |
23,648 |
|
|
$ |
39,076 |
|
|
$ |
26,100 |
|
|
Accrued current
liabilities
|
|
|
(22,766 |
) |
|
|
(19,326 |
) |
|
|
(18,260 |
) |
|
Other assets
(noncurrent)
|
|
|
3,195 |
|
|
|
7,252 |
|
|
|
5,274 |
|
|
Other liabilities
(noncurrent)
|
|
|
(5,689 |
) |
|
|
(4,187 |
) |
|
|
(6,349 |
) |
|
| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gain (Loss) on
Derivatives Recognized in OCI |
|
| In thousands |
|
Three Months ended
September |
|
|
Nine Months ended
September |
|
|
Cash Flow
Hedging Relationships
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
Foreign exchange
|
|
$ |
(15,829 |
) |
|
$ |
23,048 |
|
|
$ |
2,846 |
|
|
$ |
(11,504 |
) |
|
Interest rate
|
|
|
— |
|
|
|
(48,266 |
) |
|
|
— |
|
|
|
(48,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
(15,829 |
) |
|
$ |
(25,218 |
) |
|
$ |
2,846 |
|
|
$ |
(59,770 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
| |
|
Gain (Loss) Reclassified
from Accumulated OCI
into Income |
|
| In thousands |
|
Three Months ended
September |
|
|
Nine Months ended
September |
|
|
Location of
Gain (Loss) Reclassified From Accumulated OCI into
Income
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
Net sales
|
|
$ |
(2,150 |
) |
|
$ |
3,034 |
|
|
$ |
(3,931 |
) |
|
$ |
4,265 |
|
|
Cost of goods
sold
|
|
|
9,694 |
|
|
|
(10,293 |
) |
|
|
10,291 |
|
|
|
(5,489 |
) |
|
Other income (expense),
net
|
|
|
1,890 |
|
|
|
(3,484 |
) |
|
|
1,777 |
|
|
|
(7,020 |
) |
|
Interest expense
|
|
|
(934 |
) |
|
|
(1,578 |
) |
|
|
(2,772 |
) |
|
|
(1,520 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
8,500 |
|
|
$ |
(12,321 |
) |
|
$ |
5,365 |
|
|
$ |
(9,764 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effects of Fair Value Hedging Included in Consolidated Statements of Income |
VF’s Consolidated
Statements of Income include the following effects related to
designated fair value hedging:
|
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|
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|
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|
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| |
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|
|
Gain (Loss) on
Derivative and Related
Hedged Items Recognized in Income |
|
| In thousands |
|
|
|
Three Months
ended
September
|
|
|
Nine Months
ended
September
|
|
|
Fair Value
Hedging Relationships
|
|
Location of Gain
(Loss)
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Foreign exchange (expense),
net
|
|
Other income
|
|
$ |
— |
|
|
$ |
6,716 |
|
|
$ |
— |
|
|
$ |
1,669 |
|
|
|
|
|
|
|
|
Advances -
intercompany
|
|
Other income (expense),
net
|
|
$ |
— |
|
|
$ |
(6,606 |
) |
|
$ |
— |
|
|
$ |
(2,807 |
) |
|
|
Foreign exchange contracts not dedesignated as hedging instruments
|
|
| 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:
|
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|
|
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|
|
|
|
|
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|
|
|
| |
|
|
|
Gain (Loss) on
Derivatives
Recognized in Income |
|
| |
|
|
|
Three months
ended
September
|
|
|
Nine months ended
September |
|
|
Derivatives
Not Designated as Hedges
|
|
Location of Gain (Loss)
on Derivatives Recognized
in Income
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Foreign exchange
contracts
|
|
Other income (expense), net |
|
$ |
(2,253 |
) |
|
$ |
— |
|
|
$ |
(877 |
) |
|
$ |
— |
|
|