XML 21 R9.htm IDEA: XBRL DOCUMENT
v3.8.0.1

ACQUISITIONS | 3 Months Ended
--- | ---
Mar. 31, 2018
Business Combinations [Abstract] |
ACQUISITIONS | ACQUISITIONS Williamson-Dickie On October 2, 2017, VF acquired 100% of the outstanding shares of Williamson-Dickie Mfg. Co. (“Williamson-Dickie”) for $800.7 million in cash, subject to working capital and other adjustments. The purchase price was primarily funded with short-term borrowings. During the three months ended March 2018, the purchase consideration was reduced by $2.3 million associated with the final working capital adjustment, resulting in a revised purchase price of $798.4 million. Williamson-Dickie was a privately held company based in Ft. Worth, Texas, and is one of the largest companies in the workwear sector with a portfolio of brands including Dickies®, Workrite®, Kodiak®, Terra® and Walls®. The acquisition of Williamson-Dickie brings together complementary assets and capabilities, and creates a workwear business that will now serve an even broader set of consumers and industries around the world. For the three months ended March 2018, Williamson-Dickie contributed revenues of $233.1 million and net income of $10.7 million, excluding restructuring charges. The allocation of the purchase price is preliminary and subject to change, primarily for certain income tax matters. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the acquisition date. Goodwill decreased by $10.0 million during the three months ended March 2018, $2.3 million of which related to the final working capital adjustment and $7.7 million of which related to a measurement period adjustment of an acquired income tax balance. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
(In thousands) |  | October 2, 2017 |
Cash and equivalents |  | $ | 60,172 |  |
Accounts receivable |  | 146,403 |  |
Inventories |  | 251,778 |  |
Other current assets |  | 8,447 |  |
Property, plant and equipment |  | 105,119 |  |
Intangible assets |  | 397,755 |  |
Other assets |  | 9,665 |  |
Total assets acquired |  | 979,339 |  |
Short-term borrowings |  | 17,565 |  |
Accounts payable |  | 88,052 |  |
Other current liabilities |  | 109,964 |  |
Deferred income tax liabilities |  | 15,160 |  |
Other non-current liabilities |  | 33,066 |  |
Total liabilities assumed |  | 263,807 |  |
Net assets acquired |  | 715,532 |  |
Goodwill |  | 82,863 |  |
Purchase price |  | $ | 798,395 |  |
The goodwill is attributable to the acquired workforce of Williamson-Dickie and the significant synergies expected to arise as a result of the acquisition. All of the goodwill was assigned to the Imagewear coalition and $52.3 million is expected to be deductible for tax purposes. The Dickies®, Kodiak®, Terra® and Walls® trademarks, which management believes to have indefinite lives, have been valued at $316.1 million. The Workrite® trademark, valued at $0.8 million, is being amortized over three years. Amortizable intangible assets have been assigned values of $78.6 million for customer relationships and $2.3 million for distribution agreements. Customer relationships are being amortized using an accelerated method over periods ranging from 10-13 years. Distribution agreements are being amortized on a straight-line basis over four years. Total transaction expenses for the Williamson-Dickie acquisition were $15.0 million, all of which were recognized in the year ended December 2017 as selling, general and administrative expenses in VF's Consolidated Statements of Income. The following unaudited pro forma summary presents consolidated information of VF as if the acquisition of Williamson-Dickie had occurred on January 3, 2016:
(In thousands) | Three Months Ended April 1, 2017 (unaudited)
Total revenues | $ | 2,709,111 |
Income from continuing operations | 219,469 |
Earnings per common share from continuing operations |
Basic | $ | 0.53 |
Diluted | 0.53 |
These pro forma amounts have been calculated after applying VF’s accounting policies and adjusting the results of Williamson-Dickie to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant, and equipment and intangible assets had been applied from January 3, 2016, with related tax effects. Pro forma financial information is not necessarily indicative of VF’s operating results if the acquisition had been effected at the date indicated, nor is it necessarily indicative of future operating results. Amounts do not include any marketing leverage, operating efficiencies or cost savings that VF believes are achievable. Icebreaker Holdings Limited On November 1, 2017, VF entered into a definitive merger agreement to acquire 100% of the stock of Icebreaker Holdings Limited, a privately held company based in Auckland, New Zealand. The acquisition was completed on April 3, 2018 for NZ$274.4 million ($199.3 million) of cash, which is subject to working capital and other adjustments. The purchase price was primarily funded with short-term borrowings. Icebreaker® is an outdoor brand specializing in high-performance apparel based on natural fibers, including Merino wool, plant-based fibers and recycled fibers. It is an ideal complement to VF's Smartwool® brand, which also features Merino wool in its clothing and accessories. Together, the Smartwool® and Icebreaker® brands will position VF as a global leader in the Merino wool and natural fiber categories. The Company is still in the process of aligning accounting policies and valuing the assets acquired and liabilities assumed, and as such, certain disclosures regarding this transaction have not been included herein. Total transaction expenses for the Icebreaker® acquisition of $3.3 million have been recognized in selling, general and administrative expenses in the Consolidated Statements of Income, of which $1.4 million was recognized during the three months ended March 2018. In addition, the Company has recognized a $9.6 million gain on derivatives used to hedge the purchase price of Icebreaker® in the other income (expense), net line item in the Consolidated Statements of Income, of which $4.3 million was recognized during the three months ended March 2018. Altra® On March 10, 2018, VF entered into a definitive merger agreement to acquire Altra®, an athletic and performance-based lifestyle footwear brand based in Logan, Utah. The purchase price is $135.0 million, subject to working capital and other adjustments. The acquisition is expected to close in the first quarter of Fiscal 2019, subject to satisfaction of customary closing conditions.

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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