Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments and Hedging Activities (Tables)

v2.4.0.8
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 29, 2013
Outstanding Derivatives on Individual Contract Basis at Gross Amounts

The following table presents outstanding derivatives on an individual contract basis at their gross amounts:

 

     Fair Value of Derivatives with
Unrealized Gains		      Fair Value of Derivatives with
Unrealized Losses		  
In thousands    June
2013		      December
2012		      June
2012		      June
2013		      December
2012		      June
2012		  

Foreign exchange contracts designated as hedging instruments

    $ 41,472       $ 15,847       $ 56,894       $ 10,629       $ 27,267       $ 18,977   

Foreign exchange contracts dedesignated as hedging instruments

      355         15         170         133         2,160         2,427   

Foreign exchange contracts not designated as hedging instruments

      416         291         71         91         41         214   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives

    $ 42,243       $ 16,153       $ 57,135       $ 10,853       $ 29,468       $ 21,618   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Derivatives Classified as Current or Noncurrent Based on Maturity Dates

Derivatives are classified as current or noncurrent based on their maturity dates, as follows:

 

In thousands    June
2013		     December
2012		     June
2012		  

Other current assets

    $ 33,463      $ 13,629      $ 50,313   

Accrued liabilities (current)

      (8,685 )      (22,013 )      (18,739 ) 

Other assets (noncurrent)

      8,780        2,524        6,822   

Other liabilities (noncurrent)

      (2,168 )      (7,455 )      (2,879 ) 
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 June 		    Gain (Loss) on  Derivatives
Recognized in OCI
Six Months Ended June 		 

Cash Flow Hedging Relationships

    2013     2012     2013     2012  

Foreign exchange

    $ (3,093 )    $ 26,386      $ 52,400      $ 18,675   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ (3,093 )    $ 26,386      $ 52,400      $ 18,675   
  

 

 

    

 

 

    

 

 

    

 

 

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

Location of Gain (Loss)

        2013             2012             2013             2012      

Net sales

    $ 1,378      $ (2,484 )    $ 1,223      $ (1,780 ) 

Cost of goods sold

      3,683        283        7,541        597   

Other income (expense), net

      1,209        553        2,301        (114 ) 

Interest expense

      (972 )      (927 )      (1,929 )      (1,838 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 5,298      $ (2,575 )    $ 9,136      $ (3,135 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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:

 

In thousands

         Gain (Loss) on Derivatives      Gain (Loss) on Derivatives  
     Location of Gain (Loss)    Recognized in Income      Recognized in Income  
     on Derivatives    Three Months Ended June      Six Months Ended June  

Derivatives Not Designated as Hedges

   

Recognized in Income

    2013      2012      2013      2012  

Foreign exchange

   

Other income (expense), net

    $ 2,729       $ 421       $ 3,998       $ 1,376