North Face 2015 Annual Report Download - page 96

VF CORPORATION
Notes to Consolidated Financial Statements
December 2015
VF did not record any impairment charges in 2015 or 2013 based on the results of its annual goodwill
impairment testing. In 2014, VF recorded an impairment charge of $142.4 million to write off the goodwill in the
Splendid®and Ella Moss®reporting unit, which is part of the Contemporary Brands coalition. Accumulated
impairment charges for the Contemporary Brands coalition were $337.5 million as of December 2015 and 2014,
and $195.2 million as of December 2013. Accumulated impairment charges for the Outdoor & Action Sports and
Sportswear coalitions were $43.4 million and $58.5 million, respectively, for all of the periods presented above.
See Note S for additional information on the fair value measurements.
Note G — Other Assets
2015 2014
In thousands
Investments held for deferred compensation plans (Note L) .............. $205,283 $227,510
Other investments ............................................... 10,706 15,666
Deferred income taxes (Note O) .................................... 39,246 49,431
Computer software, net of accumulated amortization of $99,124 in 2015 and
$54,936 in 2014 ............................................... 177,642 170,269
Partnership stores and shop-in-shop costs, net of accumulated amortization
of $96,819 in 2015 and $78,321 in 2014 ............................ 45,514 44,581
Pension assets (Note L) ........................................... 9,273 1,491
Deferred line of credit issuance costs ................................ 1,596 540
Derivative financial instruments (Note T) ............................ 12,995 20,269
Deposits ....................................................... 37,347 33,880
Other ......................................................... 47,619 49,405
Other assets .................................................... $587,221 $613,042
Note H — Short-term Borrowings
2015 2014
In thousands
Commercial paper borrowings ...................................... $423,000 $ —
International borrowing arrangements ................................ 26,590 21,822
Short-term borrowings ............................................ $449,590 $21,822
In April 2015, VF entered into a $1.75 billion senior unsecured revolving line of credit (the “Global Credit
Facility”) which supports the $1.75 billion U.S. commercial paper program described below. The Global Credit
Facility expires in April 2020 and VF may request two extensions of one year each, subject to stated terms and
conditions. The Global Credit Facility replaced VF’s $1.25 billion revolving credit facility that was scheduled to
expire in December 2016. The Global Credit Facility may be used to borrow funds in both U.S. dollar and non-
U.S. dollar currencies, and has a $50.0 million letter of credit sublimit. Borrowings under the Global Credit
Facility are priced at a credit spread of 80.5 basis points over the appropriate LIBOR benchmark for each
currency. VF is also required to pay a facility fee to the lenders, currently equal to 7.0 basis points of the
committed amount of the facility. The credit spread and facility fee are subject to adjustment based on VF’s
credit ratings.
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