| Capital and Accumulated Other Comprehensive Income (Loss) |
Note H – Capital and Accumulated Other Comprehensive
Income (Loss)
During the first nine months of 2014, the Company purchased
12.0 million shares of Common Stock in open market
transactions for $725.5 million under its share repurchase program
authorized by VF’s Board of Directors. These transactions
were treated as treasury stock transactions.
Common Stock outstanding is net of shares held in treasury which
are, in substance, retired. During the first nine months of 2014,
VF restored 12.1 million treasury shares to an unissued
status; accordingly, they are no longer recognized as shares held
in treasury. There were no shares held in treasury at the end of
September 2014 or December 2013, and 17.0 million shares held
in treasury at the end of September 2013 which were restored to an
unissued status during the following quarter. 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.
VF Common Stock is also held by the Company’s deferred
compensation plans and is treated as treasury shares for financial
reporting purposes. During the first nine months of 2014, the
Company purchased 33,300 shares of Common Stock in open market
transactions for $2.0 million. Balances related to shares held for
deferred compensation plans are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In millions, except share amounts |
|
September
2014
|
|
|
December
2013
|
|
|
September
2013
|
|
|
Shares held for deferred compensation plans
|
|
|
640,404 |
|
|
|
704,104 |
|
|
|
705,664 |
|
|
Cost of shares held for deferred compensation plans
|
|
$ |
7.6 |
|
|
$ |
8.4 |
|
|
$ |
8.2 |
|
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 OCI are reported, net of related income taxes, in
accumulated other comprehensive income (loss) in
stockholders’ equity, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands |
|
September
2014
|
|
|
December
2013
|
|
|
September
2013
|
|
|
Foreign currency translation
|
|
$ |
(161,259 |
) |
|
$ |
106,647 |
|
|
$ |
55,746 |
|
|
Defined benefit pension plans
|
|
|
(257,962 |
) |
|
|
(277,451 |
) |
|
|
(381,608 |
) |
|
Derivative financial instruments
|
|
|
324 |
|
|
|
(41,754 |
) |
|
|
(40,199 |
) |
|
Marketable securities
|
|
|
662 |
|
|
|
838 |
|
|
|
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
$ |
(418,235 |
) |
|
$ |
(211,720 |
) |
|
$ |
(365,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated other comprehensive income (loss), net
of related taxes, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September
2014 |
|
| In thousands |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, June 2014
|
|
$ |
70,525 |
|
|
$ |
(264,187 |
) |
|
$ |
(38,684 |
) |
|
$ |
134 |
|
|
$ |
(232,212 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
(231,784 |
) |
|
|
— |
|
|
|
31,171 |
|
|
|
528 |
|
|
|
(200,085 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
6,225 |
|
|
|
7,837 |
|
|
|
— |
|
|
|
14,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(231,784 |
) |
|
|
6,225 |
|
|
|
39,008 |
|
|
|
528 |
|
|
|
(186,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2014
|
|
$ |
(161,259 |
) |
|
$ |
(257,962 |
) |
|
$ |
324 |
|
|
$ |
662 |
|
|
$ |
(418,235 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September
2013 |
|
| In thousands |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, June 2013
|
|
$ |
(42,716 |
) |
|
$ |
(394,785 |
) |
|
$ |
(3,170 |
) |
|
$ |
(200 |
) |
|
$ |
(440,871 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
98,462 |
|
|
|
— |
|
|
|
(33,041 |
) |
|
|
291 |
|
|
|
65,712 |
|
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
13,177 |
|
|
|
(3,988 |
) |
|
|
— |
|
|
|
9,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
98,462 |
|
|
|
13,177 |
|
|
|
(37,029 |
) |
|
|
291 |
|
|
|
74,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2013
|
|
$ |
55,746 |
|
|
$ |
(381,608 |
) |
|
$ |
(40,199 |
) |
|
$ |
91 |
|
|
$ |
(365,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September
2014 |
|
| In thousands |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, December 2013
|
|
$ |
106,647 |
|
|
$ |
(277,451 |
) |
|
$ |
(41,754 |
) |
|
$ |
838 |
|
|
$ |
(211,720 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
(267,906 |
) |
|
|
— |
|
|
|
26,457 |
|
|
|
(176 |
) |
|
|
(241,625 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
19,489 |
|
|
|
15,621 |
|
|
|
— |
|
|
|
35,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(267,906 |
) |
|
|
19,489 |
|
|
|
42,078 |
|
|
|
(176 |
) |
|
|
(206,515 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2014
|
|
$ |
(161,259 |
) |
|
$ |
(257,962 |
) |
|
$ |
324 |
|
|
$ |
662 |
|
|
$ |
(418,235 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September
2013 |
|
| In thousands |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, December 2012
|
|
$ |
(4,068 |
) |
|
$ |
(420,538 |
) |
|
$ |
(29,430 |
) |
|
$ |
141 |
|
|
$ |
(453,895 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
59,814 |
|
|
|
— |
|
|
|
(1,235 |
) |
|
|
(50 |
) |
|
|
58,529 |
|
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
38,930 |
|
|
|
(9,534 |
) |
|
|
— |
|
|
|
29,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
59,814 |
|
|
|
38,930 |
|
|
|
(10,769 |
) |
|
|
(50 |
) |
|
|
87,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2013
|
|
$ |
55,746 |
|
|
$ |
(381,608 |
) |
|
$ |
(40,199 |
) |
|
$ |
91 |
|
|
$ |
(365,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications out of accumulated other comprehensive income
(loss) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
Details About Accumulated Other
|
|
Affected Line Item in the
Consolidated Statements
of Income
|
|
Three Months Ended
September
|
|
|
Nine Months Ended
September
|
|
|
Comprehensive Income (Loss) Components
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Amortization of defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial losses
|
|
(a) |
|
$ |
(9,385 |
) |
|
$ |
(21,333 |
) |
|
$ |
(28,158 |
) |
|
$ |
(64,021 |
) |
|
Deferred prior service costs
|
|
(a) |
|
|
(1,361 |
) |
|
|
(317 |
) |
|
|
(4,085 |
) |
|
|
(974 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
(10,746 |
) |
|
|
(21,650 |
) |
|
|
(32,243 |
) |
|
|
(64,995 |
) |
|
|
Tax benefit (expense) |
|
|
4,521 |
|
|
|
8,473 |
|
|
|
12,754 |
|
|
|
26,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
$ |
(6,225 |
) |
|
$ |
(13,177 |
) |
|
$ |
(19,489 |
) |
|
$ |
(38,930 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Net sales |
|
$ |
(7,657 |
) |
|
$ |
6,195 |
|
|
$ |
(7,539 |
) |
|
$ |
7,418 |
|
|
Foreign exchange contracts
|
|
Cost of goods sold |
|
|
(3,496 |
) |
|
|
3,574 |
|
|
|
(13,199 |
) |
|
|
11,115 |
|
|
Foreign exchange contracts
|
|
Other income (expense), net |
|
|
(730 |
) |
|
|
(2,218 |
) |
|
|
(1,945 |
) |
|
|
83 |
|
|
Interest rate contracts
|
|
Interest expense |
|
|
(1,028 |
) |
|
|
(980 |
) |
|
|
(3,051 |
) |
|
|
(2,909 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
(12,911 |
) |
|
|
6,571 |
|
|
|
(25,734 |
) |
|
|
15,707 |
|
|
|
Tax benefit (expense) |
|
|
5,074 |
|
|
|
(2,583 |
) |
|
|
10,113 |
|
|
|
(6,173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
$ |
(7,837 |
) |
|
$ |
3,988 |
|
|
$ |
(15,621 |
) |
|
$ |
9,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period
|
|
Net of tax |
|
$ |
(14,062 |
) |
|
$ |
(9,189 |
) |
|
$ |
(35,110 |
) |
|
$ |
(29,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
These accumulated other comprehensive
income (loss) components are included in the computation of net
periodic pension cost (see Note G for additional details). |
|