Annual report pursuant to Section 13 and 15(d)

Capital and Accumulated Other Comprehensive Income (Loss)

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Capital and Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 28, 2013
Capital and Accumulated Other Comprehensive Income (Loss)

Note N — Capital and Accumulated Other Comprehensive Income (Loss)

Common Stock

Common Stock outstanding is net of shares held in treasury which are, in substance, retired. During 2013 and 2012, VF restored 17,016,484 and 76,000,000 treasury shares, respectively, to an unissued status. There were no shares held in treasury at the end of 2013, 10,121,604 shares held in treasury at the end of 2012 and 77,158,760 shares held in treasury at the end of 2011. The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings.

In addition, VF Common Stock is held by the Company’s deferred compensation plans (Note M) and is treated as treasury shares for financial reporting purposes, as follows:

2013 2012 2011
In millions, except share amounts

Shares held for deferred compensation plans

 704,104 749,824 953,100

Cost of shares held for deferred compensation plans

 $ 8.4 $ 8.8 $ 11.0

Accumulated Other Comprehensive Income (Loss)

Comprehensive income consists of net income and specified components of other comprehensive income (“OCI”). OCI consists of changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income is presented in the Consolidated Statements of Comprehensive Income. The deferred components of other comprehensive income (loss) are reported, net of related income taxes, in accumulated other comprehensive income (loss) in stockholders’ equity, as follows:

2013 2012
In thousands

Foreign currency translation

 $ 106,647 $ (4,068 )

Defined benefit pension plans

 (277,451 ) (420,538 )

Derivative financial instruments

 (41,754 ) (29,430 )

Marketable securities

 838 141

Accumulated other comprehensive income (loss)

 $ (211,720 ) $ (453,895 )

The changes in accumulated other comprehensive income (loss), net of related taxes, are as follows:

December 2013
Foreign Defined Derivative
Currency Benefit Financial Marketable
Translation Pension Plans Instruments Securities Total
In thousands

Balance, December 2012

 $ (4,068 ) $ (420,538 ) $ (29,430 ) $ 141 $ (453,895 )

Other comprehensive income (loss) before reclassifications

 110,715 89,873 (4,937 ) 697 196,348

Amounts reclassified from accumulated other comprehensive income (loss)

 — 53,214 (7,387 ) — 45,827

Net other comprehensive income (loss)

 110,715 143,087 (12,324 ) 697 242,175

Balance, December 2013

 $ 106,647 $ (277,451 ) $ (41,754 ) $ 838 $ (211,720 )

Reclassifications out of accumulated other comprehensive income (loss) are as follows:

Details About Accumulated Other

Comprehensive Income (Loss) Components

Affected Line Item in the
Consolidated Statements of
Income (Loss)

 December 2013
In thousands

Amortization of defined benefit pension plans:

Net deferred actuarial losses

 (a) $ (85,356 )

Deferred prior service costs

 (a) (1,270 )

Total before tax (86,626 )
Tax benefit (expense) 33,412

Net of tax $ (53,214 )

Gains (losses) on derivative financial instruments:

Foreign exchange contracts

 Net sales $ 12,917

Foreign exchange contracts

 Cost of goods sold 4,208

Foreign exchange contracts

 Other income (expense), net (1,051 )

Interest rate contracts

 Interest expense (3,905 )

Total before tax 12,169
Tax benefit (expense) (4,782 )

Net of tax 7,387

Total reclassifications for the year

 Net of tax $ (45,827 )

(a)

These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note M for additional details).