Annual report pursuant to Section 13 and 15(d)

Accounts Receivable

v3.3.1.900
Accounts Receivable
 12 Months Ended
Jan. 02, 2016
Accounts Receivable

Note B — Accounts Receivable

 

     2015      2014  
     In thousands  

Trade

    $ 1,265,758       $ 1,223,627   

Royalty and other

      77,719         79,291   
  

 

 

     

 

 

  

Total accounts receivable

      1,343,477         1,302,918   

Less allowance for doubtful accounts

      23,919         26,694   
  

 

 

     

 

 

  

Accounts receivable, net

    $ 1,319,558       $ 1,276,224   
  

 

 

     

 

 

  

VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under the agreement in place at December 2015, up to $237.5 million of VF’s accounts receivable could be sold to the financial institution and remain outstanding at any point in time. This agreement was amended in January 2016 to permit up to $367.5 million of VF’s sold accounts receivable to 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 2015 and 2014, VF sold total accounts receivable of $1,340.9 million and $1,247.4 million, respectively. As of December 2015 and 2014, $144.9 million and $130.3 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 $1.9 million in 2015, $1.7 million in 2014 and $1.8 million in 2013. Net proceeds of this program are classified in operating activities in the Consolidated Statements of Cash Flows.