Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments and Hedging Activities (Tables)

v2.4.0.6
Derivative Financial Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 30, 2013
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    March
2013		      December
2012		      March
2012		      March
2013		      December
2012		      March
2012		  

Foreign exchange contracts designated as hedging instruments

    $ 48,156       $ 15,847       $ 25,568       $ 8,933       $ 27,267       $ 13,598   

Foreign exchange contracts dedesignated as hedging instruments

      571         15         335         864         2,160         1,070   

Foreign exchange contracts not designated as hedging instruments

      90         291         132         78         41         265   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives

    $ 48,817       $ 16,153       $ 26,035       $ 9,875       $ 29,468       $ 14,933   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Outstanding Derivatives Classified as Current or Noncurrent Based on Derivatives' Maturity Dates

Outstanding derivatives have been included in the Consolidated Balance Sheets and classified as current or noncurrent based on the derivatives’ maturity dates, as follows:

 

In thousands    March
2013		     December
2012		     March
2012		  

Other current assets

    $ 36,830      $ 13,629      $ 23,874   

Accrued liabilities (current)

      (8,018 )      (22,013 )      (13,315 ) 

Other assets (noncurrent)

      11,987        2,524        2,161   

Other liabilities (noncurrent)

      (1,857 )      (7,455 )      (1,618 ) 
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 March		  

Cash Flow Hedging Relationships

    2013     2012  

Foreign exchange

    $ 55,493      $ (7,711 ) 
  

 

 

    

 

 

  

Total

    $ 55,493      $ (7,711 ) 
  

 

 

    

 

 

  
In thousands    Gain (Loss) Reclassified from
Accumulated OCI into Income
Three  Months Ended March		  

Location of Gain (Loss)

    2013     2012  

Net sales

    $ (155 )      704   

Cost of goods sold

      3,858        314   

Other income (expense), net

      1,092        (667 ) 

Interest expense

      (957 )      (911 ) 
  

 

 

    

 

 

  

Total

    $ 3,838      $ (560 ) 
  

 

 

    

 

 

  
Effects of Fair Value Hedging Included in Consolidated Statements of Income

Following is a summary of these hedges included in VF’s Consolidated Statements of Income:

 

    

Location of Gain (Loss) on Derivatives

Recognized in Income

    Gain (Loss) on Derivatives Recognized in Income
Three Months Ended March 		 

Derivatives Not Designated as Hedges

       2013      2012  

Foreign exchange

    Other income (expense), net    $ 1,269       $ 955