VF Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock-based Compensation (Tables)

Stock-based Compensation (Tables)

12 Months Ended

Jan. 03, 2015

Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory

Total stock-based compensation cost and the associated income tax benefits related to stock-based compensation arrangements recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, are as follows:


	2014		2013		2012
	In thousands
Stock-based compensation cost	$	104,313	$	87,118	$	92,814
Income tax benefits		41,725		32,059		34,156
Stock-based compensation costs included in inventory		797		119		221

Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted

The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows:


	2014	2013	2012
Expected volatility	23% to 29%	24% to 29%	27% to 31%
Weighted average expected volatility	26%	27%	30%
Expected term (in years)	5.5 to 7.3	5.6 to 7.4	5.6 to 7.5
Dividend yield	2.1%	2.3%	2.5%
Risk-free interest rate	0.1% to 2.7%	0.1% to 2.0%	0.1% to 2.1%
Weighted average fair value at date of grant	$12.01	$8.34	$8.36

Stock Option Activity

Stock option activity for 2014 is summarized as follows:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (In thousands)
Outstanding, December 2013		16,045,308		$	27.25
Granted		2,825,207			56.86
Exercised		(3,410,967	)		22.44
Forfeited/cancelled		(324,520	)		47.81

Outstanding, December 2014		15,135,028			33.42		6.6		610,572

Exercisable, December 2014		9,324,005			24.74		5.5		457,018

RSU Activity

RSU activity for 2014 is summarized as follows:


	Performance-based					Nonperformance-based
	Number Outstanding			Weighted Average Grant Date Fair Value		Number Outstanding			Weighted Average Grant Date Fair Value
Outstanding, December 2013		2,303,192		$	33.04		614,324		$	28.99
Granted		586,769			56.86		29,595			58.00
Issued as Common Stock		(865,445	)		23.94		(244,324	)		22.86
Forfeited/cancelled		(83,855	)		46.36		(13,000	)		35.90

Outstanding, December 2014		1,940,661			43.73		386,595			34.86

Vested, December 2014		1,169,587			40.78		12,595			56.79

Restricted Stock Activity

Restricted stock activity for 2014 is summarized below:


	Nonvested Shares Outstanding			Weighted Average Grant Date Fair Value
Nonvested shares, December 2013		839,442		$	30.66
Granted		151,100			60.14
Dividend equivalents		13,075			65.99
Vested		(272,482	)		22.03
Forfeited		(26,645	)		40.26

Nonvested shares, December 2014		704,490			40.62

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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