North Face 2015 Annual Report Download - page 97
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VF CORPORATION
Notes to Consolidated Financial Statements
December 2015
The Global Credit Facility contains certain restrictive covenants, which include maintenance of a
consolidated indebtedness to consolidated capitalization ratio, as defined therein, equal to or below 60%. If VF
fails in the performance of any covenants, the lenders may terminate their obligation to make advances and
declare any outstanding obligations to be immediately due and payable. At the end of 2015, VF was in
compliance with all covenants.
VF has a commercial paper program that allows for borrowings of up to $1.75 billion to the extent that it has
borrowing capacity under the Global Credit Facility. As of December 2015 and 2014, outstanding commercial
paper borrowings totaled $423.0 million and $0, respectively. The Global Credit Facility also had $17.3 million
of outstanding standby letters of credit issued on behalf of VF, leaving $1,309.7 million available for borrowing
against this facility as of December 2015.
VF has $110.1 million of international lines of credit with various banks, which are uncommitted and may
be terminated at any time by either VF or the banks. Borrowings under these arrangements had a weighted
average interest rate of 6.0% and 5.3% at December 2015 and 2014, respectively, excluding accepted letters of
credit which are non-interest bearing to VF. Total outstanding balances under these arrangements were
$26.6 million and $21.8 million at December 2015 and 2014, respectively.
Note I — Accrued Liabilities
2015 2014
In thousands
Compensation .................................................. $172,901 $210,652
Deferred compensation (Note L) .................................... 29,491 31,773
Income taxes ................................................... 59,779 98,860
Other taxes ..................................................... 123,161 141,613
Advertising .................................................... 56,338 52,155
Customer discounts and allowances ................................. 36,013 34,209
Interest ........................................................ 16,918 16,443
Derivative financial instruments (Note T) ............................ 25,776 26,968
Insurance ...................................................... 16,669 15,332
Product warranty claims (Note K) .................................. 13,550 14,467
Pension liabilities (Note L) ........................................ 8,480 8,880
Freight, duties and postage ........................................ 51,657 50,651
Other ......................................................... 178,517 195,423
Accrued liabilities ............................................... $789,250 $897,426
F-21