SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2004
Commission file number: 1-5256
VF CORPORATION
105 Corporate Center Blvd.
Greensboro, NC 27408
(Address of principal executive offices)
(336) 424-6000
(Registrants telephone number, including area code)
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
Table of contents
Page No. | ||||
Report of Independent Registered Public Accounting Firm | 4 | |||
Statements of Net Assets Available for Benefits, December 31, 2004 and December 31, 2003 | 5 | |||
Statement of Changes in Net Assets Available for Benefits For the Year Ended December 31, 2004 | 6 | |||
Notes to Financial Statements | 7 | |||
Supplemental Schedules*: | ||||
12 | ||||
Exhibit 23.1 Consent of Independent Registered Public Accounting Firm | 13 |
* |
Other schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the VF Corporation Pension Plan Committee has duly caused this annual report to be signed by the undersigned thereunto duly authorized.
VF Corporation Tax-Advantaged Savings Plan for Hourly Employees |
||||
By: | /s/ Frank C. Pickard III | |||
Frank C. Pickard III | ||||
Vice President, Treasurer VF Corporation |
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Date: June 29, 2005
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Report of Independent Registered Public Accounting Firm
To the Participants and Administrator of
VF Corporation Tax-Advantaged Savings Plan for Hourly Employees
In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the VF Corporation Tax-Advantaged Savings Plan for Hourly Employees (the Plan) at December 31, 2004 and 2003, and the changes in net assets available for benefits for the year ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H Line 4i - Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plans management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
Greensboro, NC
June 27, 2005
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
December 31 | ||||||||
2004 | 2003 | |||||||
ASSETS |
||||||||
Investments, at fair value |
||||||||
VF Corporation common stock -
34,743 shares in 2004
35,767 shares in 2003 |
$ | 1,924,095 | $ | 1,546,561 | ||||
Other securities |
11,516,797 | 11,466,647 | ||||||
Total investments |
13,440,892 | 13,013,208 | ||||||
Loans receivable from participants |
639,038 | 574,936 | ||||||
Net assets available for benefits |
$ | 14,079,930 | $ | 13,588,144 | ||||
See notes to financial statements.
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
Year Ended | ||||
December 31, 2004 | ||||
Investment income |
||||
Net realized and unrealized appreciation
in fair value of investments |
$ | 1,152,132 | ||
Dividends on VF Corporation common stock |
36,206 | |||
Income from mutual funds and bank common
trust funds |
237,288 | |||
1,425,626 | ||||
Interest on participant loans |
22,459 | |||
Participant contributions |
846,469 | |||
2,294,554 | ||||
Benefits paid to participants |
(1,802,768 | ) | ||
Net increase |
491,786 | |||
Net assets available for benefits |
||||
Beginning of period |
13,588,144 | |||
End of period |
$ | 14,079,930 | ||
See notes to financial statements.
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
NOTE A DESCRIPTION OF THE PLAN
Effective April 1, 1998, VF Corporation (the Corporation) adopted the VF Corporation Tax-Advantaged Savings Plan for Hourly Employees (the Plan), which is a cash or deferred plan under Section 401(k) of the Internal Revenue Code (IRC). Under the Plan, certain hourly employees of specified subsidiaries, having at least one year of credited service, may elect to contribute between 2% and 50% of their compensation to the Plan. Employees remain fully vested in their contributions to the Plan.
Employee contributions are invested at the direction of the employee in one or more of the funds administered by the Plans trustees. All Plan assets are trusteed by Fidelity Management Trust Company (Fidelity) with the exception of the Fixed Income Fund which is trusteed by UMB Bank, n.a. (UMB Bank) The investment programs and investment objectives of the Plan funds are as follows:
(a) | Money Market Fund: Monies are invested in a money market fund. | |||
(b) | Fixed Income Fund: Monies are invested in investments that provide a fixed rate of return. | |||
(c) | Balanced Fund: Monies are invested in investments to obtain as much income as possible, consistent with the preservation and conservation of capital. | |||
(d) | Equity Growth & Income Fund: Monies are invested in investments that are currently paying dividends and/or offer prospects for growth of capital and future income, with emphasis on capital appreciation. | |||
(e) | Index 500 Fund: Monies are invested in the 500 stocks that make up the S&P 500 Stock Price Index. | |||
(f) | Dividend Growth Fund: Monies are invested in stocks of companies that have the potential to increase the amount of their dividends or begin paying them if none are being paid now. | |||
(g) | Small-Cap Value Fund: Monies are invested in U.S. common stocks of small companies whose price is undervalued. | |||
(h) | Small-Cap Growth Fund: Monies invested in small and medium size companies with undervalued assets or favorable growth prospects. | |||
(i) | Foreign Fund: Monies are invested in stocks and debt obligations of companies and governments outside the United States. | |||
(j) | VF Corporation Common Stock Fund: Monies are invested in common stock of the Corporation purchased at prevailing prices on the New York Stock Exchange on the date of purchase. Employees can direct no more than 50% of their contributions to the VF Corporation Common Stock Fund. | |||
(k) | Various Mutual Funds: Participants can select from an additional 250 mutual funds offered through Fidelity Investments Funds Net Program and additional Fidelity Fund options with various investment objectives. |
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE A DESCRIPTION OF THE PLAN (Continued)
Individual accounts are maintained for each participant; each account includes the individuals contributions and investment funds earnings. Accounts become payable upon retirement, disability, death or termination of employment. Participants may also withdraw all or a portion of their accounts by filing a written request that demonstrates financial hardship. Participants may elect to receive distributions in a lump sum, or accounts may be rolled over into another IRS-approved tax deferral vehicle.
Participants may borrow up to 50% of the participants total account balance. Participants are charged interest at the Morgan Guaranty Published prime rate at the time of the loan and repay the principal within 60 months, or 120 months if the loan is for the purchase of their primary residence. Payment in full is required at termination of employment. There were 477 and 458 loans outstanding at December 31, 2004 and December 31, 2003 respectively.
Although it has no intent to do so, the Corporation may terminate the Plan in whole or in part at any time.
NOTE B SIGNIFICANT ACCOUNTING POLICIES
Investments are stated at fair value. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the plan year. General market fixed income securities are valued by a national pricing service, based on standardized pricing methodology. For government guaranteed loans, UMB Bank values the loans at cost as they are guaranteed by the full faith and credit of the United States Federal Government. The fair value of the participation units owned by the Plan in mutual funds and bank common trust funds is based on quoted redemption values on the last business day of the Plan year. Purchases and sales of securities, including gains and losses thereon, are recorded as of the trade date. Dividends are recorded on the ex-dividend date.
The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains or losses and unrealized appreciation or depreciation on those investments.
Administrative expenses consisting primarily of fees for legal, accounting and other services are paid by the Corporation in accordance with the Plan.
Payment of Benefits: Benefits are recorded when paid.
Use of Estimates: In preparing financial statements in accordance with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE B SIGNIFICANT ACCOUNTING POLICIES (Continued)
Risks and Uncertainties: The Plan provides for various mutual fund investment options in stocks, bonds and fixed income securities. The Plan also provides for investment in VF Corporation common stock. Investments are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants account balances and the amounts reported in the statements of net assets available for benefits and the statement of changes in net assets available for benefits.
NOTE C INCOME TAX STATUS
The Internal Revenue Service has issued a favorable determination letter dated September 23, 2002 stating that the Plan qualifies under the appropriate sections of the IRC and is, therefore, not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The VF Corporation Pension Plan Committee is not aware of any action or series of events that have occurred that might adversely affect the Plans qualified status. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plans tax counsel believe that the Plan is currently designed and is currently being operated in compliance with the applicable requirements of the IRC.
NOTE D - RELATED PARTY TRANSACTIONS
Related parties to the Plan include VF Corporation, the Plan sponsor, Fidelity and UMB Bank, the Plans trustees. Certain plan investments are funds managed by Fidelity and UMB Bank, and therefore these transactions qualify as party-in-interest.
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTE E INVESTMENTS
Net realized and unrealized appreciation and year-end fair value of investments included in Plan equity includes the following:
Net Realized | ||||||||||||
Appreciation in | Fair Value | |||||||||||
Fair Value for the Year | At December 31 | |||||||||||
Ended December 31, 2004 | 2004 | 2003 | ||||||||||
Fair value as determined by
quoted market or stated
redemption price: |
||||||||||||
VF Corporation Common
Stock |
$ | 436,089 | $ | 1,924,095 | $ | 1,546,561 | ||||||
Mutual funds and
bank common trust funds |
516,945 | 7,684,345 | 7,296,269 | |||||||||
953,034 | 9,608,440 | 8,842,830 | ||||||||||
Fair value as determined by |
||||||||||||
Plan trustee: |
||||||||||||
Mutual funds and
bank common trust funds |
199,098 | 3,832,452 | 4,170,378 | |||||||||
199,098 | 3,832,452 | 4,170,378 | ||||||||||
$ | 1,152,132 | $ | 13,440,892 | $ | 13,013,208 | |||||||
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VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE E INVESTMENTS (Continued)
The fair value of investments that individually represent 5% or more of the Plans net assets at December 31 of one or both years are as follows:
2004 | 2003 | |||||||
Fidelity Growth & Income Fund (39,152 shares and 40,194 shares) |
$ | 1,496,008 | $ | 1,425,866 | ||||
Fidelity Puritan Fund (43,886 shares and 44,382 shares) |
831,646 | 819,743 | ||||||
Fidelity US Equity Index Commingled Pool (33,131 shares and 35,220 shares) |
1,239,767 | 1,189,375 | ||||||
VF Corporation Common Stock (34,743 shares and 35,767 shares) |
1,981,960 | 1,546,561 | ||||||
Fidelity Retirement Money Market Portfolio (1,260,617 shares and 1,308,799 shares) |
1,260,617 | 1,308,799 | ||||||
ProCapp Fixed Income Fund (283,675 shares and 324,291 shares) |
3,832,452 | 4,170,378 | ||||||
Baron Asset Fund (15,372 shares and 14,963 shares) |
807,350 | 655,858 |
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VF Corporation Tax-Advantaged Savings Plan
For Hourly Employees
Schedule H Line 4i Schedule of Assets (Held at End of Year)
At December 31, 2004
Identity of issue, borrower, | Number of | Current | ||||||
lessor, or similar party | Shares | Value | ||||||
*Fidelity Puritan Fund |
43,886 | $ | 831,646 | |||||
*Fidelity Growth & Income Fund |
39,152 | 1,496,008 | ||||||
*Fidelity Diversified International Fund |
11,872 | 340,037 | ||||||
*Fidelity Dividend Growth Fund |
2,239 | 63,786 | ||||||
*Fidelity Retirement Money Market Portfolio |
1,260,617 | 1,260,617 | ||||||
*Fidelity U.S. Equity Index Commingled Pool |
33,131 | 1,239,767 | ||||||
Baron Asset Fund |
15,372 | 807,350 | ||||||
Longleaf Small Cap Fund |
18,926 | 564,962 | ||||||
*UMB Bank ProCapp Fixed Income Fund |
283,675 | 3,832,452 | ||||||
*VF Corporation Common Stock Fund |
34,743 | 1,981,960 | ||||||
*Various Mutual Funds |
N/A | 1,022,307 | ||||||
Loans Receivable from Participants
(with interest rates from 4% to 9.5%) |
N/A | 639,038 | ||||||
$ | 14,079,930 | |||||||
* | represents a party-in-interest |
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