Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments and Hedging Activities (Tables)

v3.6.0.2
Derivative Financial Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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
 
2016
 
2015
 
2016
 
2015
 
In thousands
Foreign currency exchange contracts designated as hedging instruments
$
103,340

 
$
105,536

 
$
(25,292
)
 
$
(27,896
)
Foreign currency exchange contracts not designated as hedging instruments
—

 
255

 
(282
)
 
(136
)
Total derivatives
$
103,340

 
$
105,791

 
$
(25,574
)
 
$
(28,032
)
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 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 December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
2016
 
2015
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
 
In thousands
Gross amounts presented in the Consolidated Balance Sheets
$
103,340

 
$
(25,574
)
 
$
105,791

 
$
(28,032
)
Gross amounts not offset in the Consolidated Balance Sheets
(22,341
)
 
22,341

 
(22,213
)
 
22,213

Net amounts
$
80,999

 
$
(3,233
)
 
$
83,578

 
$
(5,819
)
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 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 December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
2016
 
2015
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
 
In thousands
Gross amounts presented in the Consolidated Balance Sheets
$
103,340

 
$
(25,574
)
 
$
105,791

 
$
(28,032
)
Gross amounts not offset in the Consolidated Balance Sheets
(22,341
)
 
22,341

 
(22,213
)
 
22,213

Net amounts
$
80,999

 
$
(3,233
)
 
$
83,578

 
$
(5,819
)
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 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 December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
2016
 
2015
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
 
In thousands
Gross amounts presented in the Consolidated Balance Sheets
$
103,340

 
$
(25,574
)
 
$
105,791

 
$
(28,032
)
Gross amounts not offset in the Consolidated Balance Sheets
(22,341
)
 
22,341

 
(22,213
)
 
22,213

Net amounts
$
80,999

 
$
(3,233
)
 
$
83,578

 
$
(5,819
)
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 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 December 2016 and December 2015 would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
2016
 
2015
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
 
In thousands
Gross amounts presented in the Consolidated Balance Sheets
$
103,340

 
$
(25,574
)
 
$
105,791

 
$
(28,032
)
Gross amounts not offset in the Consolidated Balance Sheets
(22,341
)
 
22,341

 
(22,213
)
 
22,213

Net amounts
$
80,999

 
$
(3,233
)
 
$
83,578

 
$
(5,819
)
Derivatives Classified as Current or Noncurrent Based on Maturity Dates
Derivatives are classified as current or noncurrent based on maturity dates, as follows:
 
 
2016
 
2015
 
In thousands
Other current assets
$
84,519

 
$
92,796

Accrued liabilities (Note J)
(18,574
)
 
(25,776
)
Other assets (Note H)
18,821

 
12,995

Other liabilities (Note L)
(7,000
)
 
(2,256
)
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:
 
Cash Flow Hedging Relationships
Gain (Loss) on Derivatives
Recognized in OCI
2016
 
2015
 
2014
 
In thousands
Foreign currency exchange
$
90,708

 
$
89,993

 
$
88,387

 
  
Gain (Loss) Reclassified
from Accumulated OCI into Income
Location of Gain (Loss)
2016
 
2015
 
2014
 
In thousands
Net sales
$
28,798

 
$
(68,543
)
 
$
(18,071
)
Cost of goods sold
84,613

 
132,432

 
(8,756
)
Selling, general and administrative expenses
(4,314
)
 
(1,885
)
 
—

Other income (expense), net
2,864

 
7,267

 
(1,189
)
Interest expense
(4,504
)
 
(4,295
)
 
(4,095
)
Total
$
107,457

 
$
64,976

 
$
(32,111
)
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:
 
Derivatives Not Designated as Hedges
Location of Gain (Loss) on
Derivatives
Recognized in Income
Gain (Loss) on Derivatives
Recognized in Income
2016
 
2015
 
2014
 
 
In thousands
Foreign currency exchange
Cost of goods sold
$
1,674

 
$
(4,179
)
 
$
—

Foreign currency exchange
Other income (expense), net
83

 
2,806

 
(707
)
Total
 
$
1,757

 
$
(1,373
)
 
$
(707
)