| Capital and Accumulated Other Comprehensive Income (Loss) |
Note I – Capital and Accumulated Other Comprehensive
Income (Loss)
During the first six months of 2016, the Company purchased
13.2 million shares of Common Stock in open market
transactions for $833.7 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 six months of 2016, VF
restored 13.3 million treasury shares to an unissued status,
after which they were no longer recognized as shares held in
treasury. There were no shares held in treasury at the end of June
2016 or December 2015, and 23,400 shares held in treasury
at the end of June 2015. 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 half of 2016, the Company
purchased 2,900 shares of Common Stock in open market transactions
for $0.1 million. Balances related to shares held for deferred
compensation plans are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands, except share
amounts |
|
June 2016 |
|
|
December 2015 |
|
|
June 2015 |
|
|
Shares held for deferred compensation plans
|
|
|
477,867 |
|
|
|
562,649 |
|
|
|
565,549 |
|
|
Cost of shares held for deferred compensation plans
|
|
$ |
5,754 |
|
|
$ |
6,823 |
|
|
$ |
6,667 |
|
Accumulated Other Comprehensive Income (Loss)
Comprehensive income consists of net income and specified
components of other comprehensive income (“OCI”), which
relates to 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 OCI in stockholders’ equity, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands |
|
June 2016 |
|
|
December 2015 |
|
|
June 2015 |
|
|
Foreign currency translation
|
|
$ |
(675,213 |
) |
|
$ |
(718,169 |
) |
|
$ |
(599,297 |
) |
|
Defined benefit pension plans
|
|
|
(351,298 |
) |
|
|
(372,195 |
) |
|
|
(360,125 |
) |
|
Derivative financial instruments
|
|
|
25,056 |
|
|
|
47,142 |
|
|
|
45,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
$ |
(1,001,455 |
) |
|
$ |
(1,043,222 |
) |
|
$ |
(913,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated OCI, net of related taxes, are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June
2016 |
|
| In thousands |
|
Foreign
Currency
Translation
|
|
|
Defined
Benefit
Pension Plans
|
|
|
Derivative
Financial
Instruments
|
|
|
Total |
|
|
Balance, March 2016
|
|
$ |
(602,890 |
) |
|
$ |
(361,311 |
) |
|
$ |
13,916 |
|
|
$ |
(950,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
(72,323 |
) |
|
|
— |
|
|
|
24,133 |
|
|
|
(48,190 |
) |
|
Amounts reclassified from accumulated other
comprehensive income (loss)
|
|
|
— |
|
|
|
10,013 |
|
|
|
(12,993 |
) |
|
|
(2,980 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(72,323 |
) |
|
|
10,013 |
|
|
|
11,140 |
|
|
|
(51,170 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 2016
|
|
$ |
(675,213 |
) |
|
$ |
(351,298 |
) |
|
$ |
25,056 |
|
|
$ |
(1,001,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June
2015 |
|
| In thousands |
|
Foreign
Currency
Translation
|
|
|
Defined
Benefit
Pension Plans
|
|
|
Derivative
Financial
Instruments
|
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, March 2015
|
|
$ |
(603,022 |
) |
|
$ |
(367,841 |
) |
|
$ |
67,757 |
|
|
$ |
714 |
|
|
$ |
(902,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
3,725 |
|
|
|
— |
|
|
|
(12,813 |
) |
|
|
— |
|
|
|
(9,088 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
7,716 |
|
|
|
(9,148 |
) |
|
|
(714 |
) |
|
|
(2,146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
3,725 |
|
|
|
7,716 |
|
|
|
(21,961 |
) |
|
|
(714 |
) |
|
|
(11,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 2015
|
|
$ |
(599,297 |
) |
|
$ |
(360,125 |
) |
|
$ |
45,796 |
|
|
$ |
— |
|
|
$ |
(913,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended June 2016 |
|
| In thousands |
|
Foreign
Currency
Translation
|
|
|
Defined
Benefit
Pension Plans
|
|
|
Derivative
Financial
Instruments
|
|
|
Total |
|
|
Balance, December 2015
|
|
$ |
(718,169 |
) |
|
$ |
(372,195 |
) |
|
$ |
47,142 |
|
|
$ |
(1,043,222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
42,956 |
|
|
|
— |
|
|
|
14,435 |
|
|
|
57,391 |
|
|
Amounts reclassified from accumulated other
comprehensive income (loss)
|
|
|
— |
|
|
|
20,897 |
|
|
|
(36,521 |
) |
|
|
(15,624 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
42,956 |
|
|
|
20,897 |
|
|
|
(22,086 |
) |
|
|
41,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 2016
|
|
$ |
(675,213 |
) |
|
$ |
(351,298 |
) |
|
$ |
25,056 |
|
|
$ |
(1,001,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended June 2015 |
|
| In thousands |
|
Foreign
Currency
Translation
|
|
|
Defined
Benefit
Pension Plans
|
|
|
Derivative
Financial
Instruments
|
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, December 2014
|
|
$ |
(356,941 |
) |
|
$ |
(377,134 |
) |
|
$ |
31,389 |
|
|
$ |
414 |
|
|
$ |
(702,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
(242,356 |
) |
|
|
— |
|
|
|
28,469 |
|
|
|
300 |
|
|
|
(213,587 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
17,009 |
|
|
|
(14,062 |
) |
|
|
(714 |
) |
|
|
2,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(242,356 |
) |
|
|
17,009 |
|
|
|
14,407 |
|
|
|
(414 |
) |
|
|
(211,354 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 2015
|
|
$ |
(599,297 |
) |
|
$ |
(360,125 |
) |
|
$ |
45,796 |
|
|
$ |
— |
|
|
$ |
(913,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications out of accumulated OCI are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
Details About Accumulated Other
|
|
Affected Line Item in the
Consolidated Statements
of Income
|
|
Three Months Ended June
|
|
|
Six Months Ended June
|
|
|
Comprehensive Income (Loss) Components
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Amortization of defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial losses
|
|
(a) |
|
$ |
(16,319 |
) |
|
$ |
(15,495 |
) |
|
$ |
(32,625 |
) |
|
$ |
(30,992 |
) |
|
Deferred prior service costs
|
|
(a) |
|
|
(645 |
) |
|
|
(759 |
) |
|
|
(1,292 |
) |
|
|
(1,521 |
) |
|
Pension settlement charge
|
|
Selling, general and administrative
expenses |
|
|
— |
|
|
|
(1,592 |
) |
|
|
— |
|
|
|
(1,592 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
(16,964 |
) |
|
|
(17,846 |
) |
|
|
(33,917 |
) |
|
|
(34,105 |
) |
|
|
Tax benefit |
|
|
6,951 |
|
|
|
10,130 |
|
|
|
13,020 |
|
|
|
17,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
(10,013 |
) |
|
|
(7,716 |
) |
|
|
(20,897 |
) |
|
|
(17,009 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Net sales |
|
|
2,284 |
|
|
|
(11,790 |
) |
|
|
(2,679 |
) |
|
|
(28,845 |
) |
|
Foreign exchange contracts
|
|
Cost of goods sold |
|
|
20,772 |
|
|
|
22,123 |
|
|
|
64,609 |
|
|
|
41,491 |
|
|
Foreign exchange contracts
|
|
Selling, general and administrative
expenses |
|
|
(1,535 |
) |
|
|
— |
|
|
|
(2,513 |
) |
|
|
— |
|
|
Foreign exchange contracts
|
|
Other income (expense), net |
|
|
624 |
|
|
|
6,139 |
|
|
|
2,127 |
|
|
|
12,974 |
|
|
Interest rate contracts
|
|
Interest expense |
|
|
(1,121 |
) |
|
|
(1,069 |
) |
|
|
(2,225 |
) |
|
|
(2,122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
21,024 |
|
|
|
15,403 |
|
|
|
59,319 |
|
|
|
23,498 |
|
|
|
Tax expense |
|
|
(8,031 |
) |
|
|
(6,255 |
) |
|
|
(22,798 |
) |
|
|
(9,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
12,993 |
|
|
|
9,148 |
|
|
|
36,521 |
|
|
|
14,062 |
|
|
Gains (losses) on sales of marketable securities
|
|
Other income (expense), net |
|
|
— |
|
|
|
1,177 |
|
|
|
— |
|
|
|
1,177 |
|
|
|
Tax expense |
|
|
— |
|
|
|
(463 |
) |
|
|
— |
|
|
|
(463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
— |
|
|
|
714 |
|
|
|
— |
|
|
|
714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period
|
|
Net of tax |
|
$ |
2,980 |
|
|
$ |
2,146 |
|
|
$ |
15,624 |
|
|
$ |
(2,233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
These accumulated OCI components are
included in the computation of net periodic pension cost (see Note
H for additional details). |
|