Annual report pursuant to Section 13 and 15(d)

Accounts Receivable

v2.4.1.9
Accounts Receivable
 12 Months Ended
Jan. 03, 2015
Accounts Receivable

Note C — Accounts Receivable

 

     2014      2013  
     In thousands  

Trade

    $ 1,223,627       $ 1,320,669   

Royalty and other

      79,291         85,124   
  

 

 

     

 

 

  

Total accounts receivable

      1,302,918         1,405,793   

Less allowance for doubtful accounts

      26,694         45,350   
  

 

 

     

 

 

  

Accounts receivable, net

    $ 1,276,224       $ 1,360,443   
  

 

 

     

 

 

  

VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under the agreement, up to $237.5 million of VF’s accounts receivable may be sold to the financial institution and remain outstanding at any point in time. 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 2014 and 2013, VF sold total accounts receivable of $1,247.4 million and $1,259.7 million, respectively. As of December 2014 and 2013, $130.3 million and $136.4 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 other income (expense), net, and was $1.7 million in 2014, $1.8 million in 2013 and $2.0 million in 2012. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.