Quarterly report pursuant to Section 13 or 15(d)

Change In Accounting Principle

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Change In Accounting Principle
 9 Months Ended
Oct. 01, 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 nine months ended September 2011 was as follows:

 

$(8,027)
In thousands except per share amounts    Increase
(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:

 

$(8,027)
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 nine months ended September 2011.