Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.19.3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Sep. 28, 2019
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)
 
September 2019
 
 
March 2019
 
September 2018
 
 
September 2019
 
 
March 2019
 
September 2018
Foreign currency exchange contracts designated as hedging instruments
 
$
82,756

 
 
$
92,356

 
$
58,646

 
 
$
(10,944
)
 
 
$
(21,798
)
 
$
(15,218
)
Foreign currency exchange contracts not designated as hedging instruments
 
7,706

 
 
415

 
—

 
 
(1,408
)
 
 
(539
)
 
(146
)
Total derivatives
 
$
90,462

 
 
$
92,771

 
$
58,646

 
 
$
(12,352
)
 
 
$
(22,337
)
 
$
(15,364
)

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:
 
 
September 2019
 
 
March 2019
 
September 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
Derivative
Asset
 
Derivative
Liability
 
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
Gross amounts presented in the Consolidated Balance Sheets
 
$
90,462

 
$
(12,352
)
 
 
$
92,771

 
$
(22,337
)
 
$
58,646

 
$
(15,364
)
Gross amounts not offset in the Consolidated Balance Sheets
 
(12,283
)
 
12,283

 
 
(22,274
)
 
22,274

 
(15,281
)
 
15,281

Net amounts
 
$
78,179

 
$
(69
)
 
 
$
70,497

 
$
(63
)
 
$
43,365

 
$
(83
)

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:
 
 
September 2019
 
 
March 2019
 
September 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
Derivative
Asset
 
Derivative
Liability
 
 
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
Gross amounts presented in the Consolidated Balance Sheets
 
$
90,462

 
$
(12,352
)
 
 
$
92,771

 
$
(22,337
)
 
$
58,646

 
$
(15,364
)
Gross amounts not offset in the Consolidated Balance Sheets
 
(12,283
)
 
12,283

 
 
(22,274
)
 
22,274

 
(15,281
)
 
15,281

Net amounts
 
$
78,179

 
$
(69
)
 
 
$
70,497

 
$
(63
)
 
$
43,365

 
$
(83
)

Derivatives Classified as Current or Noncurrent Based on Maturity Dates
Derivatives are classified as current or non-current based on maturity dates, as follows:
(In thousands)
 
September 2019
 
 
March 2019
 
September 2018
Other current assets
 
$
81,279

 
 
$
83,582

 
$
48,957

Accrued liabilities
 
(10,106
)
 
 
(18,590
)
 
(12,349
)
Other assets
 
9,183

 
 
9,189

 
9,689

Other liabilities
 
(2,246
)
 
 
(3,747
)
 
(3,015
)

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 September
 
 
Gain (Loss) on Derivatives Recognized in OCI
Six Months Ended September
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Hedging Relationships
 
2019
 
 
2018
 
 
2019
 
 
2018
Foreign currency exchange
 
$
51,396

 
 
$
15,240

 
 
$
66,170

 
 
$
109,869

(In thousands)
 
Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended September
 
 
Gain (Loss) Reclassified from Accumulated OCI into Income Six Months Ended September
 
 
 
 
 
 
 
 
 
 
 
 
Location of Gain (Loss)
 
2019
 
 
2018
 
 
2019
 
 
2018
Net sales
 
$
(2,814
)
 
 
$
4,527

 
 
$
(5,719
)
 
 
$
5,472

Cost of goods sold
 
22,727

 
 
(14,638
)
 
 
33,832

 
 
(26,576
)
Selling, general and administrative expenses
 
1,382

 
 
(1,522
)
 
 
2,098

 
 
(4,220
)
Other income (expense), net
 
3,696

 
 
(970
)
 
 
6,568

 
 
(2,363
)
Interest expense
 
(1,303
)
 
 
(1,243
)
 
 
(2,596
)
 
 
(2,476
)
Total
 
$
23,688

 
 
$
(13,846
)
 
 
$
34,183

 
 
$
(30,163
)


Effects of Fair Value Hedging Included in Consolidated Statements of Income
The changes in fair value of derivative contracts not designated as hedges that have been recognized as gains or losses in VF's Consolidated Statements of Income were not material for the three and six months ended September 2019 and September 2018.