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Business Segment Information | 12 Months Ended
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Jan. 03, 2015
Business Segment Information | Note Q — Business Segment Information VF’s businesses are grouped into product categories, and by brands within those product categories, for internal financial reporting used by management. These groupings of businesses within VF are referred to as “coalitions” and are the basis for VF’s reportable segments, as described below:
• Outdoor & Action Sports |  | High performance outdoor apparel and footwear, backpacks, bags and technical equipment
• Jeanswear |  | Denim and casual apparel
• Imagewear |  | Occupational workwear and athletic apparel
• Sportswear |  | Fashion sportswear apparel and accessories
• Contemporary Brands |  | Premium denim and lifestyle apparel
• Other |  | Primarily sales of non-VF products at VF Outlet® stores
Management at each of the coalitions has direct control over and responsibility for its revenues, operating income and assets, hereinafter termed “coalition revenues,” “coalition profit” and “coalition assets,” respectively. VF management evaluates operating performance and makes investment and other decisions based on coalition revenues and coalition profit. Accounting policies used for internal management reporting at the individual coalitions are consistent with those in Note A, except as stated below. Common costs such as information systems processing, retirement benefits and insurance are allocated to the coalitions based on appropriate metrics such as usage or employment. Corporate costs (other than allocated costs directly related to the coalitions), impairment charges and net interest expense are not controlled by coalition management and therefore are excluded from the measurement of coalition profit. Corporate and other expenses consists of corporate headquarters expenses that are not allocated to the coalitions (including compensation and benefits of corporate management and staff, certain legal and professional fees, and administrative and general) and other expenses related to but not allocated to the coalitions for internal management reporting (including a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of VF’s trademarks, and miscellaneous consolidated costs). Defined benefit pension plans in the U.S. are centrally managed. The current year service cost component of pension cost is allocated to the coalitions, while other pension cost components are reported in corporate and other expenses. Coalition assets, for internal management purposes, are those used directly in or resulting from the operations of each business unit, such as accounts receivable, inventories and property, plant and equipment. Corporate assets primarily include corporate facilities, investments held in trust for deferred compensation plans and information systems. Financial information for VF’s reportable segments is as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Coalition revenues: |  |  |  |  |  |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 7,198,994 |  |  | $ | 6,379,167 |  |  | $ | 5,866,071 |
Jeanswear |  |  | 2,801,754 |  |  |  | 2,810,994 |  |  |  | 2,789,293 |
Imagewear |  |  | 1,104,038 |  |  |  | 1,065,952 |  |  |  | 1,075,677 |
Sportswear |  |  | 650,203 |  |  |  | 624,693 |  |  |  | 577,317 |
Contemporary Brands (a) |  |  | 400,431 |  |  |  | 415,053 |  |  |  | 445,960 |
Other |  |  | 126,741 |  |  |  | 123,789 |  |  |  | 125,537 |
Total coalition revenues |  | $ | 12,282,161 |  |  | $ | 11,419,648 |  |  | $ | 10,879,855 |
Coalition profit: |  |  |  |  |  |  |  |  |  |  |  |
Outdoor & Action Sports (b) |  | $ | 1,312,963 |  |  | $ | 1,106,384 |  |  | $ | 1,019,425 |
Jeanswear |  |  | 527,972 |  |  |  | 544,882 |  |  |  | 466,960 |
Imagewear |  |  | 164,352 |  |  |  | 152,203 |  |  |  | 145,053 |
Sportswear |  |  | 77,972 |  |  |  | 88,157 |  |  |  | 72,978 |
Contemporary Brands (a) |  |  | 23,420 |  |  |  | 38,825 |  |  |  | 49,182 |
Other |  |  | (2,600 | ) |  |  | (562 | ) |  |  | (232 | )
Total coalition profit |  |  | 2,104,079 |  |  |  | 1,929,889 |  |  |  | 1,753,366 |
Impairment of goodwill and intangible assets (c) |  |  | (396,362 | ) |  |  | — |  |  |  | — |
Corporate and other expenses (b) |  |  | (275,537 | ) |  |  | (286,767 | ) |  |  | (241,239 | )
Interest expense, net |  |  | (79,814 | ) |  |  | (80,632 | ) |  |  | (90,252 | )
Income before income taxes |  | $ | 1,352,366 |  |  | $ | 1,562,490 |  |  | $ | 1,421,875 |
(a) | Excludes operating results of John Varvatos Enterprises, Inc. since its disposition date of April 30, 2012.
(b) | Includes expenses related to the acquisition of Timberland as follows:
2013 — $10.7 million reported in Outdoor & Action Sports 2012 — $30.8 million reported in Outdoor & Action Sports ($22.1 million) and Corporate ($8.7 million)
(c) | Reflects impairment charges related to the Contemporary Brands coalition. See Notes F, G and T for additional information.
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Coalition assets: |  |  |  |  |  |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 2,211,232 |  |  | $ | 2,133,447 |  |  | $ | 1,944,822 |
Jeanswear |  |  | 904,933 |  |  |  | 943,011 |  |  |  | 870,302 |
Imagewear |  |  | 349,254 |  |  |  | 334,864 |  |  |  | 341,588 |
Sportswear |  |  | 147,091 |  |  |  | 156,107 |  |  |  | 131,393 |
Contemporary Brands |  |  | 172,687 |  |  |  | 187,116 |  |  |  | 172,564 |
Other |  |  | 63,549 |  |  |  | 74,043 |  |  |  | 66,774 |
Total coalition assets |  |  | 3,848,746 |  |  |  | 3,828,588 |  |  |  | 3,527,443 |
Cash and equivalents |  |  | 971,895 |  |  |  | 776,403 |  |  |  | 597,461 |
Intangible assets and goodwill |  |  | 4,258,508 |  |  |  | 4,981,951 |  |  |  | 4,926,815 |
Deferred income taxes |  |  | 174,537 |  |  |  | 185,858 |  |  |  | 167,685 |
Corporate assets |  |  | 726,454 |  |  |  | 542,643 |  |  |  | 413,617 |
Consolidated assets |  | $ | 9,980,140 |  |  | $ | 10,315,443 |  |  | $ | 9,633,021 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 111,020 |  |  | $ | 139,428 |  |  | $ | 155,522 |
Jeanswear |  |  | 31,586 |  |  |  | 49,763 |  |  |  | 67,239 |
Imagewear |  |  | 6,356 |  |  |  | 3,793 |  |  |  | 4,967 |
Sportswear |  |  | 22,814 |  |  |  | 6,074 |  |  |  | 5,279 |
Contemporary Brands |  |  | 10,308 |  |  |  | 13,679 |  |  |  | 6,766 |
Other |  |  | 2,489 |  |  |  | 3,953 |  |  |  | 5,418 |
Corporate |  |  | 49,504 |  |  |  | 54,463 |  |  |  | 6,749 |
|  | $ | 234,077 |  |  | $ | 271,153 |  |  | $ | 251,940 |
Depreciation and amortization expense: |  |  |  |  |  |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 131,166 |  |  | $ | 122,385 |  |  | $ | 114,483 |
Jeanswear |  |  | 43,189 |  |  |  | 41,742 |  |  |  | 39,520 |
Imagewear |  |  | 11,602 |  |  |  | 11,481 |  |  |  | 11,733 |
Sportswear |  |  | 14,334 |  |  |  | 12,195 |  |  |  | 11,639 |
Contemporary Brands |  |  | 24,006 |  |  |  | 24,309 |  |  |  | 24,915 |
Other |  |  | 5,231 |  |  |  | 4,608 |  |  |  | 5,517 |
Corporate |  |  | 45,355 |  |  |  | 36,553 |  |  |  | 30,149 |
|  | $ | 274,883 |  |  | $ | 253,273 |  |  | $ | 237,956 |
Supplemental information (with revenues by geographic area based on the location of the customer) is as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Total revenues: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 7,574,546 |  |  | $ | 7,124,781 |  |  | $ | 6,903,269 |
Foreign, primarily Europe |  |  | 4,707,615 |  |  |  | 4,294,867 |  |  |  | 3,976,586 |
|  | $ | 12,282,161 |  |  | $ | 11,419,648 |  |  | $ | 10,879,855 |
Property, plant and equipment: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 577,669 |  |  | $ | 549,420 |  |  | $ | 513,282 |
Foreign, primarily Europe |  |  | 364,512 |  |  |  | 383,372 |  |  |  | 314,936 |
|  | $ | 942,181 |  |  | $ | 932,792 |  |  | $ | 828,218 |
No single customer accounted for 10% or more of the Company’s total revenues in 2014, 2013 and 2012.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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