|
Derivative Financial Instruments and Hedging Activities (Tables)
|
6 Months Ended |
|
Jun. 28, 2014
|
| Outstanding Derivatives on Individual Contract Basis at Gross Amounts |
The following table presents outstanding derivatives on a gross
basis by individual contract:
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Fair Value of
Derivatives with |
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Fair Value of
Derivatives with |
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| |
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Unrealized Gains |
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Unrealized Losses |
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| |
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June |
|
|
December |
|
|
June |
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|
June |
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December |
|
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June |
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| In thousands |
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2014 |
|
|
2013 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2013 |
|
|
Foreign currency exchange contracts designated as hedging
instruments
|
|
$ |
11,635 |
|
|
$ |
15,964 |
|
|
$ |
41,472 |
|
|
$ |
(40,191 |
) |
|
$ |
(46,627 |
) |
|
$ |
(10,629 |
) |
|
Foreign currency exchange contracts dedesignated as hedging
instruments
|
|
|
— |
|
|
|
— |
|
|
|
355 |
|
|
|
— |
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|
|
— |
|
|
|
(133 |
) |
|
Foreign currency exchange contracts not designated as hedging
instruments
|
|
|
— |
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|
|
124 |
|
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|
416 |
|
|
|
(607 |
) |
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|
(164 |
) |
|
|
(91 |
) |
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Total derivatives
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$ |
11,635 |
|
|
$ |
16,088 |
|
|
$ |
42,243 |
|
|
$ |
(40,798 |
) |
|
$ |
(46,791 |
) |
|
$ |
(10,853 |
) |
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| Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross |
VF records and presents the fair values of all of its derivative
assets and liabilities in the Consolidated Balance Sheets on a
gross basis, even though they are subject to master netting
agreements. However, if VF were to offset and record the asset and
liability balances of all of its forward foreign currency exchange
contracts on a net basis in accordance with the terms of its master
netting agreements, the amounts presented in the Consolidated
Balance Sheets as of June 2014, December 2013 and June 2013
would be adjusted from the current gross presentation to the net
amounts as detailed in the following table:
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June 2014 |
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December 2013
|
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June 2013 |
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| |
|
Derivative
|
|
|
Derivative
|
|
|
Derivative
|
|
|
Derivative
|
|
|
Derivative
|
|
|
Derivative
|
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| In thousands |
|
Asset |
|
|
Liability |
|
|
Asset |
|
|
Liability |
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|
Asset |
|
|
Liability |
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|
Gross amounts presented in the Consolidated Balance Sheets
|
|
$ |
11,635 |
|
|
$ |
(40,798 |
) |
|
$ |
16,088 |
|
|
$ |
(46,791 |
) |
|
$ |
42,243 |
|
|
$ |
(10,853 |
) |
|
Gross amounts not offset in the Consolidated Balance Sheets
|
|
|
(10,380 |
) |
|
|
10,380 |
|
|
|
(11,641 |
) |
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|
11,641 |
|
|
|
(9,130 |
) |
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|
9,130 |
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Net amounts
|
|
$ |
1,255 |
|
|
$ |
(30,418 |
) |
|
$ |
4,447 |
|
|
$ |
(35,150 |
) |
|
$ |
33,113 |
|
|
$ |
(1,723 |
) |
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| Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross |
VF records and presents the fair values of all of its derivative
assets and liabilities in the Consolidated Balance Sheets on a
gross basis, even though they are subject to master netting
agreements. However, if VF were to offset and record the asset and
liability balances of all of its forward foreign currency exchange
contracts on a net basis in accordance with the terms of its master
netting agreements, the amounts presented in the Consolidated
Balance Sheets as of June 2014, December 2013 and June 2013
would be adjusted from the current gross presentation to the net
amounts as detailed in the following table:
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June 2014 |
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December 2013
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June 2013 |
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Derivative
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|
Derivative
|
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|
Derivative
|
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|
Derivative
|
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|
Derivative
|
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|
Derivative
|
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| In thousands |
|
Asset |
|
|
Liability |
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|
Asset |
|
|
Liability |
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|
Asset |
|
|
Liability |
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|
Gross amounts presented in the Consolidated Balance Sheets
|
|
$ |
11,635 |
|
|
$ |
(40,798 |
) |
|
$ |
16,088 |
|
|
$ |
(46,791 |
) |
|
$ |
42,243 |
|
|
$ |
(10,853 |
) |
|
Gross amounts not offset in the Consolidated Balance Sheets
|
|
|
(10,380 |
) |
|
|
10,380 |
|
|
|
(11,641 |
) |
|
|
11,641 |
|
|
|
(9,130 |
) |
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|
9,130 |
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Net amounts
|
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$ |
1,255 |
|
|
$ |
(30,418 |
) |
|
$ |
4,447 |
|
|
$ |
(35,150 |
) |
|
$ |
33,113 |
|
|
$ |
(1,723 |
) |
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| Derivatives Classified as Current or Noncurrent Based on Maturity Dates |
Derivatives are classified as current or noncurrent based on their
maturity dates, as follows:
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June |
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December |
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June |
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| In thousands |
|
2014 |
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2013 |
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|
2013 |
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|
Other current assets
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|
$ |
7,866 |
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|
$ |
12,699 |
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$ |
33,463 |
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|
Accrued liabilities (current)
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(34,289 |
) |
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(36,622 |
) |
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|
(8,685 |
) |
|
Other assets (noncurrent)
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|
3,769 |
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|
3,389 |
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|
8,780 |
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Other liabilities (noncurrent)
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|
(6,509 |
) |
|
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(10,169 |
) |
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|
(2,168 |
) |
|
| 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 Derivatives
Recognized in OCI
Three Months Ended June
|
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|
Gain (Loss) on Derivatives
Recognized in OCI
Six Months Ended June
|
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|
Cash Flow Hedging Relationships
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Foreign currency exchange
|
|
$ |
(11,461 |
) |
|
$ |
(3,093 |
) |
|
$ |
(7,765 |
) |
|
$ |
52,400 |
|
|
|
|
| In thousands |
|
Gain (Loss) Reclassified from
Accumulated OCI into Income
Three Months Ended June
|
|
|
Gain (Loss) Reclassified from
Accumulated OCI into Income
Six Months Ended June
|
|
|
Location of Gain (Loss)
|
|
2014 |
|
|
2013 |
|
|
2014 |
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|
2013 |
|
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Net sales
|
|
$ |
(1,542 |
) |
|
$ |
1,378 |
|
|
$ |
118 |
|
|
$ |
1,223 |
|
|
Cost of goods sold
|
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|
(4,339 |
) |
|
|
3,683 |
|
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|
(9,703 |
) |
|
|
7,541 |
|
|
Other income (expense), net
|
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|
(507 |
) |
|
|
1,209 |
|
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|
(1,215 |
) |
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|
2,301 |
|
|
Interest expense
|
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|
(1,019 |
) |
|
|
(972 |
) |
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|
(2,023 |
) |
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(1,929 |
) |
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Total
|
|
$ |
(7,407 |
) |
|
$ |
5,298 |
|
|
$ |
(12,823 |
) |
|
$ |
9,136 |
|
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| Effects of Fair Value Hedging Included in Consolidated Statements of Income |
Following is a summary of these derivatives included in VF’s
Consolidated Statements of Income:
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Gain (Loss) on Derivatives
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|
Gain (Loss) on Derivatives
|
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| |
|
Location of Gain (Loss)
|
|
Recognized in Income
|
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|
Recognized in Income
|
|
| In thousands |
|
on Derivatives |
|
Three Months Ended June
|
|
|
Six Months Ended June
|
|
|
Derivatives Not Designated as Hedges
|
|
Recognized in Income |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Foreign currency exchange
|
|
Other income (expense), net |
|
$ |
(4,014 |
) |
|
$ |
2,729 |
|
|
$ |
(4,870 |
) |
|
$ |
3,998 |
|
|