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Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended
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Jul. 02, 2016
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 |  | June 2016 |  |  | December 2015 |  |  | June 2015 |  |  | June 2016 |  |  | December 2015 |  |  | June 2015 |
Foreign currency exchange contracts designated as hedging instruments |  | $ | 91,691 |  |  | $ | 105,536 |  |  | $ | 136,265 |  |  | $ | (33,171 | ) |  | $ | (27,896 | ) |  | $ | (56,786 | )
Foreign currency exchange contracts not designated as hedging instruments |  |  | — |  |  |  | 255 |  |  |  | 400 |  |  |  | (280 | ) |  |  | (136 | ) |  |  | (43 | )
Total derivatives |  | $ | 91,691 |  |  | $ | 105,791 |  |  | $ | 136,665 |  |  | $ | (33,451 | ) |  | $ | (28,032 | ) |  | $ | (56,829 | )
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. However, if VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
|  | June 2016 |  |  | December 2015 |  |  | June 2015 |
In thousands |  | Derivative Asset |  |  | Derivative Liability |  |  | Derivative Asset |  |  | Derivative Liability |  |  | Derivative Asset |  |  | Derivative Liability |
Gross amounts presented in the Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance Sheets |  | $ | 91,691 |  |  | $ | (33,451 | ) |  | $ | 105,791 |  |  | $ | (28,032 | ) |  | $ | 136,665 |  |  | $ | (56,829 | )
Gross amounts not offset in the Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance Sheets |  |  | (20,145 | ) |  |  | 20,145 |  |  |  | (22,213 | ) |  |  | 22,213 |  |  |  | (52,154 | ) |  |  | 52,154 |
Net amounts |  | $ | 71,546 |  |  | $ | (13,306 | ) |  | $ | 83,578 |  |  | $ | (5,819 | ) |  | $ | 84,511 |  |  | $ | (4,675 | )
Derivative Assets and Liabilities Presented in Consolidated Balance Sheet Adjusted from Current Gross | VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. However, if VF were to offset and record the asset and liability balances of its forward foreign currency exchange contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
|  | June 2016 |  |  | December 2015 |  |  | June 2015 |
In thousands |  | Derivative Asset |  |  | Derivative Liability |  |  | Derivative Asset |  |  | Derivative Liability |  |  | Derivative Asset |  |  | Derivative Liability |
Gross amounts presented in the Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance Sheets |  | $ | 91,691 |  |  | $ | (33,451 | ) |  | $ | 105,791 |  |  | $ | (28,032 | ) |  | $ | 136,665 |  |  | $ | (56,829 | )
Gross amounts not offset in the Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance Sheets |  |  | (20,145 | ) |  |  | 20,145 |  |  |  | (22,213 | ) |  |  | 22,213 |  |  |  | (52,154 | ) |  |  | 52,154 |
Net amounts |  | $ | 71,546 |  |  | $ | (13,306 | ) |  | $ | 83,578 |  |  | $ | (5,819 | ) |  | $ | 84,511 |  |  | $ | (4,675 | )
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | Derivatives are classified as current or noncurrent based on maturity dates, as follows:
In thousands |  | June 2016 |  |  | December 2015 |  |  | June 2015 |
Other current assets |  | $ | 78,021 |  |  | $ | 92,796 |  |  | $ | 122,749 |
Accrued liabilities |  |  | (27,329 | ) |  |  | (25,776 | ) |  |  | (49,522 | )
Other assets |  |  | 13,670 |  |  |  | 12,995 |  |  |  | 13,916 |
Other liabilities |  |  | (6,122 | ) |  |  | (2,256 | ) |  |  | (7,307 | )
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 |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Foreign currency exchange |  | $ | 39,049 |  |  | $ | (21,576 | ) |  | $ | 23,266 |  |  | $ | 46,434 |
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) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Net sales |  | $ | 2,284 |  |  | $ | (11,790 | ) |  | $ | (2,679 | ) |  | $ | (28,845 | )
Cost of goods sold |  |  | 20,772 |  |  |  | 22,123 |  |  |  | 64,609 |  |  |  | 41,491 |
Selling, general and administrative expenses |  |  | (1,535 | ) |  |  | — |  |  |  | (2,513 | ) |  |  | — |
Other income (expense), net |  |  | 624 |  |  |  | 6,139 |  |  |  | 2,127 |  |  |  | 12,974 |
Interest expense |  |  | (1,121 | ) |  |  | (1,069 | ) |  |  | (2,225 | ) |  |  | (2,122 | )
Total |  | $ | 21,024 |  |  | $ | 15,403 |  |  | $ | 59,319 |  |  | $ | 23,498 |
Effects of Fair Value Hedging Included in Consolidated Statements of Income | Following is a summary of these derivatives included in VF’s Consolidated Statements of Income:
In thousands Derivatives Not Designated as Hedges |  | Location of Gain (Loss) on Derivatives Recognized in Income |  | Gain (Loss) on Derivatives Recognized in Income Three Months Ended June |  |  | Gain (Loss) on Derivatives Recognized in Income Six Months Ended June |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Foreign currency exchange |  | Cost of goods sold |  | $ | (769 | ) |  | $ | — |  |  | $ | 735 |  |  | $ | — |
Foreign currency exchange |  | Other income (expense), net |  |  | 199 |  |  |  | (1,430 | ) |  |  | (1,086 | ) |  |  | (2,461 | )
Total |  |  |  | $ | (570 | ) |  | $ | (1,430 | ) |  | $ | (351 | ) |  | $ | (2,461 | )

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- Definition Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in cash flow hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41678-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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