XML 44 R26.htm IDEA: XBRL DOCUMENT
v3.8.0.1

BUSINESS SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 30, 2017
Segment Reporting [Abstract] |
BUSINESS SEGMENT INFORMATION | 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, handbags and technical equipment
• Jeanswear |  | Denim and casual apparel
• Imagewear |  | Occupational workwear
• Other |  | Sales of non-VF products at VF Outlet® stores
The results of Williamson-Dickie have been included in the Imagewear coalition since the October 2, 2017 acquisition date. The results of Kipling North America, which were previously included in the Sportswear coalition, have been included in the Outdoor & Action Sports coalition for all periods presented. 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. In light of recent activity related to our active portfolio management strategy, along with recently announced organizational realignments, we are evaluating whether changes may need to be made to our internal reporting structure to better support and assess the operations of our business going forward. If changes are made, we will assess the resulting effect on our reportable segments, operating segments and reporting units, if any. Accounting policies used for internal management reporting at the individual coalitions are consistent with those in Note A, except as stated below. Corporate costs (other than common costs allocated 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. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the coalitions based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the coalitions consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs) and other expenses which include 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 the remaining 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:
(In thousands) |  | 2017 |  |  | 2016 |  | 2015
Coalition revenues: |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 8,212,456 |  |  |  | $ | 7,618,564 |  |  | $ | 7,492,789 |
Jeanswear |  | 2,655,361 |  |  |  | 2,737,701 |  |  | 2,792,244 |
Imagewear |  | 830,215 |  |  |  | 551,808 |  |  | 577,462 |
Other |  | 113,145 |  |  |  | 118,074 |  |  | 133,898 |
Total coalition revenues |  | $ | 11,811,177 |  |  |  | $ | 11,026,147 |  |  | $ | 10,996,393 |
Coalition profit: |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 1,378,294 |  |  |  | $ | 1,243,201 |  |  | $ | 1,288,789 |
Jeanswear |  | 421,945 |  |  |  | 491,912 |  |  | 535,385 |
Imagewear |  | 113,252 |  |  |  | 104,023 |  |  | 105,946 |
Other (a) |  | (3,086 | ) |  |  | (4,817 | ) |  | 14,979 |
Total coalition profit |  | 1,910,405 |  |  |  | 1,834,319 |  |  | 1,945,099 |
Impairment of goodwill and intangible assets (b) |  | — |  |  |  | (79,644 | ) |  | — |
Corporate and other expenses (c) (d) |  | (408,030 | ) |  |  | (384,413 | ) |  | (299,243 | )
Interest expense, net (e) |  | (85,880 | ) |  |  | (85,546 | ) |  | (81,599 | )
Income from continuing operations before income taxes |  | $ | 1,416,495 |  |  |  | $ | 1,284,716 |  |  | $ | 1,564,257 |
(a) | Reflects a $16.6 million gain in 2015 recognized on the sale of a VF Outlet® location.
(b) | Represents goodwill and intangible asset impairment charges in 2016 related to the Outdoor & Action Sports coalition (Notes G, H and U). The impairment charges were excluded from the profit of the Outdoor & Action Sports coalition since they are not part of the ongoing operations of the business.
(c) | Reflects a $50.9 million pension settlement charge in 2016 (Note N).
(d) | Certain corporate overhead and other costs of $16.6 million, $44.3 million and $48.2 million in 2017, 2016 and 2015, respectively, previously allocated to the Sportswear, Imagewear, Outdoor & Action Sports and Contemporary Brands coalitions for segment reporting purposes, have been reallocated to continuing operations as discussed in Note C.
(e) | Interest expense of $2.3 million in 2015, previously allocated to the Contemporary Brands coalition for segment reporting purposes, has been reallocated to continuing operations as discussed in Note C.
(In thousands) |  | 2017 |  |  | 2016
Coalition assets: |  |  |  |  |
Outdoor & Action Sports |  | $ | 2,560,648 |  |  |  | $ | 2,442,882 |
Jeanswear |  | 1,055,004 |  |  |  | 943,764 |
Imagewear |  | 713,082 |  |  |  | 207,104 |
Other |  | 60,128 |  |  |  | 63,351 |
Total coalition assets |  | 4,388,862 |  |  |  | 3,657,101 |
Cash and equivalents |  | 566,075 |  |  |  | 1,227,862 |
Intangible assets and goodwill |  | 3,782,425 |  |  |  | 3,088,595 |
Deferred income taxes |  | 103,601 |  |  |  | 42,231 |
Corporate assets |  | 715,474 |  |  |  | 986,196 |
Assets of discontinued operations |  | 402,065 |  |  |  | 737,302 |
Consolidated assets |  | $ | 9,958,502 |  |  |  | $ | 9,739,287 |
(In thousands) |  | 2017 |  |  | 2016 |  | 2015
Capital expenditures: (a) |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 104,230 |  |  |  | $ | 115,508 |  |  | $ | 168,679 |
Jeanswear |  | 30,726 |  |  |  | 38,802 |  |  | 31,844 |
Imagewear |  | 7,794 |  |  |  | 5,034 |  |  | 5,445 |
Other |  | 1,981 |  |  |  | 2,390 |  |  | 2,679 |
Corporate |  | 22,087 |  |  |  | 9,311 |  |  | 32,318 |
|  | $ | 166,818 |  |  |  | $ | 171,045 |  |  | $ | 240,965 |
Depreciation and amortization expense: (b) |  |  |  |  |  |  |
Outdoor & Action Sports |  | $ | 140,682 |  |  |  | $ | 141,799 |  |  | $ | 131,877 |
Jeanswear |  | 53,205 |  |  |  | 47,726 |  |  | 41,823 |
Imagewear |  | 11,682 |  |  |  | 3,863 |  |  | 3,559 |
Other |  | 3,560 |  |  |  | 3,537 |  |  | 4,510 |
Corporate |  | 68,016 |  |  |  | 57,291 |  |  | 51,117 |
|  | $ | 277,145 |  |  |  | $ | 254,216 |  |  | $ | 232,886 |
(a) | Excludes $2.6 million, $4.8 million and $13.5 million of capital expenditures related to discontinued operations in 2017, 2016 and 2015, respectively. These amounts are included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note C).
(b) | Excludes $14.0 million, $27.4 million and $39.2 million of depreciation and amortization related to discontinued operations in 2017, 2016 and 2015, respectively. These amounts are included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note C).
Supplemental information (with revenues by geographic area based on the location of the customer) is as follows:
(In thousands) |  | 2017 |  |  | 2016 |  | 2015
Total revenues: |  |  |  |  |  |  |
U.S. |  | $ | 6,785,196 |  |  |  | $ | 6,526,223 |  |  | $ | 6,654,226 |
Foreign, primarily Europe |  | 5,025,981 |  |  |  | 4,499,924 |  |  | 4,342,167 |
|  | $ | 11,811,177 |  |  |  | $ | 11,026,147 |  |  | $ | 10,996,393 |
Property, plant and equipment: |  |  |  |  |  |  |
U.S. |  | $ | 595,499 |  |  |  | $ | 547,036 |  |  |
Foreign, primarily Europe |  | 407,201 |  |  |  | 348,924 |  |  |
|  | $ | 1,002,700 |  |  |  | $ | 895,960 |  |  |
No single customer accounted for 10% or more of the Company’s total revenues in 2017, 2016 and 2015.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration