XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Discontinued Operations | 6 Months Ended
--- | ---
Jul. 02, 2016
Discontinued Operations | Note B – Discontinued Operations On June 29, 2016, VF signed a definitive agreement to sell the businesses in our Contemporary Brands coalition to Delta Galil Industries, Ltd. for $120.0 million in cash, subject to working capital adjustments. The Contemporary Brands coalition includes the businesses of the 7 For All Mankind®, Splendid® and Ella Moss® brands (the “Businesses”), and was previously disclosed as a separate reportable segment of VF. The transaction is expected to close in the third quarter of 2016 upon the satisfaction of customary closing conditions. Management determined that the expected disposal met the criteria for presentation as discontinued operations in the second quarter of 2016. Accordingly, the results of the Businesses have been presented as discontinued operations in VF’s Consolidated Statements of Income beginning in the second quarter of 2016, and thus have been excluded from continuing operations and segment results for all periods presented. In addition, the related assets and liabilities of the Businesses have been classified as held for sale on VF’s Consolidated Balance Sheets for all periods presented. Certain corporate overhead costs and interest expense previously allocated to the Contemporary Brands coalition for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. In addition, goodwill and intangible asset impairment charges related to the Contemporary Brands coalition, previously excluded from the calculation of coalition profit, have been reallocated to discontinued operations. VF’s preliminary estimate of the after-tax loss on the sale of the Businesses is $100.6 million, which has been included in the loss from discontinued operations for the second quarter of 2016. Under the terms of a delayed transfer provision, the Company will continue to operate the assets and liabilities of the 7 For All Mankind® brand in Europe for a limited period of time from the closing date of the transaction. In addition, the Company expects to provide certain support services pursuant to transition services agreements for a limited period of time from the closing date of the transaction. The following table summarizes the major line items included in the income (loss) from discontinued operations for each of the periods presented.
|  | Three Months Ended June |  |  | Six Months Ended June |
In thousands |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Revenues |  | $ | 70,279 |  |  | $ | 86,874 |  |  | $ | 144,635 |  |  | $ | 174,411 |
Cost of goods sold |  |  | 29,507 |  |  |  | 39,408 |  |  |  | 65,104 |  |  |  | 78,003 |
Selling, general and administrative expenses |  |  | 38,473 |  |  |  | 43,419 |  |  |  | 73,233 |  |  |  | 85,875 |
Interest income (expense), net |  |  | — |  |  |  | (163 | ) |  |  | (108 | ) |  |  | (322 | )
Other income (expense), net |  |  | (2 | ) |  |  | (2 | ) |  |  | (4 | ) |  |  | 3 |
Pre-tax income from discontinued operations |  |  | 2,297 |  |  |  | 3,882 |  |  |  | 6,186 |  |  |  | 10,214 |
Pre-tax estimated loss on the disposal of discontinued operations |  |  | (149,836 | ) |  |  | — |  |  |  | (149,836 | ) |  |  | — |
Total pre-tax income (loss) from discontinued operations |  |  | (147,539 | ) |  |  | 3,882 |  |  |  | (143,650 | ) |  |  | 10,214 |
Income tax benefit (expense) |  |  | 50,260 |  |  |  | (913 | ) |  |  | 49,774 |  |  |  | (1,661 | )
Income (loss) from discontinued operations |  | $ | (97,279 | ) |  | $ | 2,969 |  |  | $ | (93,876 | ) |  | $ | 8,553 |
The following table summarizes the carrying amounts of major classes of assets and liabilities classified as held for sale for each of the periods presented.
In thousands |  | June 2016 |  |  | December 2015 |  |  | June 2015 |
Accounts receivable, net |  | $ | 24,656 |  |  | $ | 29,596 |  |  | $ | 30,091 |
Inventories |  |  | 58,450 |  |  |  | 56,634 |  |  |  | 67,618 |
Other current assets, including cash and equivalents |  |  | 3,408 |  |  |  | 2,946 |  |  |  | 5,106 |
Property, plant and equipment |  |  | 38,716 |  |  |  | 42,668 |  |  |  | 48,532 |
Intangible assets |  |  | 164,659 |  |  |  | 164,008 |  |  |  | 308,833 |
Other assets |  |  | 3,114 |  |  |  | 3,355 |  |  |  | 3,302 |
Allowance to reduce assets to estimated fair value, less costs of disposal |  |  | (149,836 | ) |  |  | — |  |  |  | — |
Total assets held for sale(a) |  | $ | 143,167 |  |  | $ | 299,207 |  |  | $ | 463,482 |
Current portion of long-term debt |  | $ | — |  |  | $ | 9,928 |  |  | $ | 10,035 |
Accounts payable |  |  | 8,289 |  |  |  | 8,988 |  |  |  | 8,650 |
Accrued liabilities |  |  | 7,262 |  |  |  | 7,102 |  |  |  | 7,747 |
Other liabilties |  |  | 10,552 |  |  |  | 10,915 |  |  |  | 11,703 |
Total liabilities held for sale(a) |  | $ | 26,103 |  |  | $ | 36,933 |  |  | $ | 38,135 |
(a) | Amounts at December 2015 and June 2015 have been classified as current and long-term in the Consolidated Balance Sheets.
Because the cash flows of the Businesses were not material for any of the periods presented, we have not segregated them in our Consolidated Statements of Cash Flows.

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration