VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Capital and Accumulated Other Comprehensive Income (Loss) (Tables)

Capital and Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jul. 02, 2016

Shares Held for Deferred Compensation Plans

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

Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity

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	)

Changes in Accumulated OCI, Net of Related Taxes

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

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).

- Definition

Tabular disclosure of an equity-based arrangement (such as stock or unit options and stock or unit awards) with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain equity-based awards at future dates, sometimes including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares or units issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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