Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.10.0.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Dec. 29, 2018
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
December 2018
 
 
March 2018
 
December 2017
 
 
December 2018
 
 
March 2018
 
December 2017
Foreign currency exchange contracts designated as hedging instruments
 
$
88,910

 
 
$
21,496

 
$
17,639

 
 
$
(7,197
)
 
 
$
(105,795
)
 
$
(99,606
)
Foreign currency exchange contracts not designated as hedging instruments
 
—

 
 
9,904

 
5,331

 
 
(164
)
 
 
(379
)
 
(432
)
Total derivatives
 
$
88,910

 
 
$
31,400

 
$
22,970

 
 
$
(7,361
)
 
 
$
(106,174
)
 
$
(100,038
)
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. If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
December 2018
 
 
March 2018
 
December 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
Derivative
Asset
 
Derivative
Liability
 
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
Gross amounts presented in the Consolidated Balance Sheets
 
$
88,910

 
$
(7,361
)
 
 
$
31,400

 
$
(106,174
)
 
$
22,970

 
$
(100,038
)
Gross amounts not offset in the Consolidated Balance Sheets
 
(7,273
)
 
7,273

 
 
(20,918
)
 
20,918

 
(18,313
)
 
18,313

Net amounts
 
$
81,637

 
$
(88
)
 
 
$
10,482

 
$
(85,256
)
 
$
4,657

 
$
(81,725
)
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. If VF were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
December 2018
 
 
March 2018
 
December 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
Derivative
Asset
 
Derivative
Liability
 
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
Gross amounts presented in the Consolidated Balance Sheets
 
$
88,910

 
$
(7,361
)
 
 
$
31,400

 
$
(106,174
)
 
$
22,970

 
$
(100,038
)
Gross amounts not offset in the Consolidated Balance Sheets
 
(7,273
)
 
7,273

 
 
(20,918
)
 
20,918

 
(18,313
)
 
18,313

Net amounts
 
$
81,637

 
$
(88
)
 
 
$
10,482

 
$
(85,256
)
 
$
4,657

 
$
(81,725
)
Derivatives Classified as Current or Noncurrent Based on Maturity Dates
Derivatives are classified as current or noncurrent based on maturity dates, as follows:
(In thousands)
 
December 2018
 
 
March 2018
 
December 2017
Other current assets
 
$
78,594

 
 
$
26,741

 
$
20,771

Accrued liabilities
 
(5,540
)
 
 
(96,087
)
 
(87,205
)
Other assets
 
10,316

 
 
4,659

 
2,199

Other liabilities
 
(1,821
)
 
 
(10,087
)
 
(12,833
)
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:
(In thousands)
 
Gain (Loss) on Derivatives Recognized in OCI
Three Months Ended December
 
 
Gain (Loss) on Derivatives Recognized in OCI
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Hedging Relationships
 
2018
 
 
2017
 
 
2018
 
 
2017
Foreign currency exchange
 
$
43,836

 
 
$
(21,136
)
 
 
$
153,705

 
 
$
(128,622
)
(In thousands)
 
Gain (Loss) Reclassified from Accumulated OCI into Income
Three Months Ended December
 
 
Gain (Loss) Reclassified from
Accumulated OCI into Income
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
Location of Gain (Loss)
 
2018
 
 
2017
 
 
2018
 
 
2017
Net sales
 
$
772

 
 
$
8,567

 
 
$
6,244

 
 
$
27,228

Cost of goods sold
 
(4,570
)
 
 
(12,153
)
 
 
(31,146
)
 
 
(10,664
)
Selling, general and administrative expenses
 
(1,020
)
 
 
(2,398
)
 
 
(5,240
)
 
 
(3,523
)
Other income (expense), net
 
690

 
 
(1,163
)
 
 
(1,673
)
 
 
(1,900
)
Interest expense
 
(1,263
)
 
 
(1,205
)
 
 
(3,739
)
 
 
(3,565
)
Total
 
$
(5,391
)
 
 
$
(8,352
)
 
 
$
(35,554
)
 
 
$
7,576

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:
(In thousands)
 
Location of Gain (Loss)
on Derivatives
Recognized in Income
 
 
Gain (Loss) on Derivatives
Recognized in Income
Three Months Ended December
 
 
Gain (Loss) on Derivatives
Recognized in Income
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
 
2018
 
 
2017
 
 
2018
 
 
2017
Foreign currency exchange
 
Cost of goods sold
 
 
$
(1,565
)
 
 
$
(1,635
)
 
 
$
(2,195
)
 
 
$
(2,203
)
Foreign currency exchange
 
Other income (expense), net
 
 
(35
)
 
 
3,106

 
 
634

 
 
1,497

Total
 
 
 
 
$
(1,600
)
 
 
$
1,471

 
 
$
(1,561
)
 
 
$
(706
)