Quarterly report pursuant to Section 13 or 15(d)

Change in Accounting Principle

 v2.3.0.11
Change in Accounting Principle
 6 Months Ended
Jul. 02, 2011
Change in Accounting Principle [Abstract]  
Change in Accounting Principle
Note B — Change in Accounting Principle
VF has historically valued inventories using both the first-in, first out ("FIFO") and last-in, first-out ("LIFO") methods. At the end of December 2010, approximately 25% of total inventories were valued using the LIFO method. On January 2, 2011, VF changed its method of accounting for inventories previously valued on the LIFO method to the FIFO method. This change is preferable because the FIFO inventory valuation (i) better reflects the current value of inventories on the Consolidated Balance Sheets, (ii) provides for a single inventory valuation method for all business units globally, and (iii) enhances comparability with the reporting of VF's peers.
The effect of retrospectively applying this change in accounting principle on previously reported financial statements was not material and therefore those periods have not been restated. The impact of recording this change in the Consolidated Statement of Income for the six months ended June 2011 was as follows:
         
    Increase
In thousands except per share amounts   (Decrease)
Cost of goods sold
   $ (8,027 )
Income before income taxes
     8,027  
Income tax expense
     3,160  
Net income attributable to VF Corporation
     4,867  
 
Basic earnings per common share attributable to
        
VF Corporation common stockholders
   $ 0.04  
Diluted earnings per common share attributable to
        
VF Corporation common stockholders
     0.04  
The impact of recording this change in the Consolidated Balance Sheet as of January 2, 2011 was as follows:
         
In thousands Increase
Inventories
   $ 8,027  
Accrued liabilities
     3,160  
Retained earnings
     4,867  
The impact of continuing to account for inventory on a LIFO instead of FIFO basis, had VF not made this change in accounting principle, would not have been material to the financial position, results of operations, cash flows and earnings per common share attributable to VF Corporation common stockholders for the three or six months ended June 2011.