VF Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock-based Compensation (Tables)

Stock-based Compensation (Tables)

12 Months Ended

Dec. 29, 2012

Schedule of Assumption Used And Resulting Weighted Average Fair Value of Stock Option Granted

The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows:


	2012	2011	2010
Expected volatility	27% to 31%	27% to 38%	24% to 39%
Weighted average expected volatility	30%	34%	35%
Expected term (in years)	5.6 to 7.5	5.6 to 7.5	5.5 to 7.6
Dividend yield	2.5%	3.1%	3.7%
Risk-free interest rate	0.1% to 2.1%	0.2% to 3.5%	0.2% to 3.7%
Weighted average grant date fair value	$33.44	$25.12	$18.46

Stock Option Activity

Stock option activity for 2012 is summarized as follows:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (In thousands)
Outstanding, December 2011		4,801,101		$	72.62
Granted		870,195			145.59
Exercised		(1,280,531	)		63.22
Forfeited/cancelled		(80,206	)		108.75

Outstanding, December 2012		4,310,559			89.48		6.7	$	253,525

Exercisable, December 2012		2,541,943		$	71.52		5.6	$	195,141

RSU Activity

RSU activity for 2012 is summarized as follows:


	Performance-based					Nonperformance-based
	Number Outstanding			Weighted Average Grant Date Fair Value		Number Outstanding			Weighted Average Grant Date Fair Value
Outstanding, December 2011		821,211		$	73.11		152,760		$	99.57
Granted		195,290			145.47		10,345			142.09
Issued as Common Stock		(312,791	)		57.51		(25,760	)		83.54
Forfeited/cancelled		(16,451	)		114.81		(3,000	)		130.37

Outstanding, December 2012		687,259			99.77		134,345			105.23

Vested, December 2012		414,305			86.73		4,345			145.58

Restricted Stock Activity

Restricted stock activity for 2012 is summarized below:


	Nonvested Shares Outstanding			Weighted Average Grant Date Fair Value
Nonvested shares, December 2011		180,337		$	93.41
Granted		12,500			140.54
Dividend equivalents		3,443			149.12
Vested		(16,802	)		76.98
Forfeited		(9,368	)		97.27

Nonvested shares, December 2012		170,110			99.41

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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