V F CORP - FORM 8-K - EX-99 - EXHIBIT 99 - June 21, 2017

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8-K - V.F. CORPORATION 8-K - V F CORPa51577708.htm
Exhibit 99
 
 
VF CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)

   
2016 (a)
  
   
First
Quarter
    
Second
Quarter
    
Third
Quarter
    
Fourth
Quarter
    
Full
Year
  
                               
Net sales
  
$
2,606,982
    
$
2,294,762
    
$
3,298,484
    
$
3,138,251
    
$
11,338,479
  
Royalty income
    
27,435
      
25,704
      
29,232
      
27,732
      
110,103
  
Total revenues
    
2,634,417
      
2,320,466
      
3,327,716
      
3,165,983
      
11,448,582
  
                                         
Costs and operating expenses
                                        
    Cost of goods sold
    
1,350,700
      
1,185,247
      
1,693,071
      
1,591,228
      
5,820,246
  
    Selling, general and administrative expenses
    
971,920
      
940,797
      
1,026,398
      
1,204,708
      
4,143,823
  
    Impairment of goodwill and intangible assets
    
-
      
-
      
-
      
79,644
      
79,644
  
    Total costs and operating expenses
    
2,322,620
      
2,126,044
      
2,719,469
      
2,875,580
      
10,043,713
  
                                         
Operating income
    
311,797
      
194,422
      
608,247
      
290,403
      
1,404,869
  
                                         
Interest, net
    
(20,020
)
    
(21,394
)
    
(22,568
)
    
(21,564
)
    
(85,546
)
Other income (expense), net
    
1,292
      
1,501
      
(1,097
)
    
305
      
2,001
  
                                         
Income from continuing operations before income taxes
    
293,069
      
174,529
      
584,582
      
269,144
      
1,321,324
  
                                         
Income taxes
    
51,134
      
38,036
      
99,358
      
16,060
      
204,588
  
                                         
Income from continuing operations
    
241,935
      
136,493
      
485,224
      
253,084
      
1,116,736
  
Income (loss) from discontinued operations, net of tax
    
18,334
      
(85,478
)
    
13,265
      
11,249
      
(42,630
)
Net income
  
$
260,269
    
$
51,015
    
$
498,489
    
$
264,333
    
$
1,074,106
  
                                         
Earnings (loss) per common share - basic (b)
                                        
    Continuing operations
  
$
0.57
    
$
0.33
    
$
1.17
    
$
0.61
    
$
2.68
  
    Discontinued operations
    
0.04
      
(0.21
)
    
0.03
      
0.03
      
(0.10
)
Total earnings per common share - basic
  
$
0.62
    
$
0.12
    
$
1.21
    
$
0.64
    
$
2.58
  
                                         
Earnings (loss) per common share - diluted (b)
                                        
    Continuing operations
  
$
0.56
    
$
0.32
    
$
1.16
    
$
0.61
    
$
2.65
  
    Discontinued operations
    
0.04
      
(0.20
)
    
0.03
      
0.03
      
(0.10
)
Total earnings per common share - diluted
  
$
0.61
    
$
0.12
    
$
1.19
    
$
0.63
    
$
2.54
  
                                         
Weighted average shares outstanding
                                        
    Basic
    
421,748
      
415,991
      
413,461
      
413,214
      
416,103
  
    Diluted
    
429,133
      
422,059
      
419,240
      
417,891
      
422,081
  
                                         
Cash dividends per common share
  
$
0.37
    
$
0.37
    
$
0.37
    
$
0.42
    
$
1.53
  
                                         
 
Basis of presentation of unaudited Condensed Consolidated Statements of Income: VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to First Quarter, Second Quarter, Third Quarter, Fourth Quarter and Full Year 2016 relate to the 13-week fiscal periods ended April 2, 2016, July 2, 2016, October 1, 2016, December 31, 2016 and the 52-week fiscal period ended December 31, 2016, respectively.
 
(a) In order to assist investors in understanding the impact of dispositions on VF's results of operations, VF has retrospectively revised its 2016 unaudited Condensed Consolidated Statements of Income to reflect discontinued operations of the Licensing Business, which comprises the Licensed Sports Group and JanSport® brand collegiate businesses, and the Contemporary Brands coalition, which included the 7 For All Mankind®, Splendid® and Ella Moss® brands.
(b) Amounts have been calculated using unrounded numbers.
VF CORPORATION
Supplemental Financial Information
GAAP Continuing Operations EPS to Non-GAAP Continuing Operations EPS
(Unaudited)
 
   
Twelve Months Ended December
  
   
2016
  
       
Diluted earnings per share from continuing operations
  
$
2.65
  
         
Adjusted amounts (a)
  
$
0.33
  
         
Diluted earnings per share from continuing operations - adjusted
  
$
2.98
  
         
Contribution from Licensing Business (b)
  
$
0.13
  
         
Adjusted diluted earnings per share from continuing operations including contribution from Licensing Business
  
$
3.11
  
 
Non-GAAP Financial Information
 
The financial information above has been presented on a GAAP basis and on an adjusted basis, which is described below in (a) and (b). Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations.
 
While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.
 
(a) Adjusted amounts in 2016 represent restructuring charges of $58.1 million (net of $14.4 million tax), goodwill and intangible asset impairment charges of $79.6 million (net of $15.5 million tax) and a pension settlement charge of $50.9 million (net of $19.5 million tax). The EPS impact was calculated using 422,081,000 weighted average common shares. Excluding these charges, adjusted operating income from continuing operations in 2016 was $1.6 billion. Adjusted operating margin from continuing operations in 2016 was 14%.
 
(b) In the first quarter of 2017, the Licensing Business met the criteria for discontinued operations reporting and this adjusted amount represents the results of our Licensing Business as if the business was not reported as discontinued operations. The per share amounts were calculated using weighted average common shares of 422,081,000.
 
Following is the reconciliation of diluted earnings per share from discontinued operations to the adjusted amounts:
 
   
Twelve Months Ended
  
   
December 2016
  
Diluted loss per share from discontinued operations, as reported under GAAP
  
$
(0.10
)
Diluted loss per share related to discontinued operations of Contemporary Brands in 2016
    
0.23
  
Diluted per share contribution from Licensing Business reported in discontinued operations
  
$
0.13
  

V F CORP Reports