| Capital and Accumulated Other Comprehensive Income (Loss) |
Note J – Capital and Accumulated Other Comprehensive
Income (Loss)
During the first nine months of 2016, the Company purchased
15.9 million shares of Common Stock in open market
transactions for $1.0 billion 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 2016,
VF restored 16.0 million treasury shares to an unissued
status, after which they were no longer recognized as shares held
in treasury. There were 2,600 shares held in treasury at the end of
September 2016, no shares held in treasury at the end of December
2015, and 1,900 shares held in treasury at the end of September
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 nine months of 2016, the
Company purchased 4,000 shares of Common Stock in open market
transactions for $0.2 million. Balances related to shares held for
deferred compensation plans were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands, except share
amounts |
|
September 2016 |
|
|
December 2015 |
|
|
September 2015 |
|
|
Shares held for deferred compensation plans
|
|
|
450,067 |
|
|
|
562,649 |
|
|
|
560,049 |
|
|
Cost of shares held for deferred compensation plans
|
|
$ |
5,434 |
|
|
$ |
6,823 |
|
|
$ |
6,651 |
|
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 |
|
September 2016 |
|
|
December 2015 |
|
|
September 2015 |
|
|
Foreign currency translation and other
|
|
$ |
(670,551 |
) |
|
$ |
(718,169 |
) |
|
$ |
(585,275 |
) |
|
Defined benefit pension plans
|
|
|
(340,891 |
) |
|
|
(372,195 |
) |
|
|
(348,537 |
) |
|
Derivative financial instruments
|
|
|
13,422 |
|
|
|
47,142 |
|
|
|
35,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
$ |
(998,020 |
) |
|
$ |
(1,043,222 |
) |
|
$ |
(898,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated OCI, net of related taxes, are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September
2016 |
|
| In thousands |
|
Foreign
Currency
Translation
and Other |
|
|
Defined
Benefit
Pension Plans
|
|
|
Derivative
Financial
Instruments |
|
|
Total |
|
|
Balance, June 2016
|
|
$ |
(675,213 |
) |
|
$ |
(351,298 |
) |
|
$ |
25,056 |
|
|
$ |
(1,001,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
4,662 |
|
|
|
— |
|
|
|
5,896 |
|
|
|
10,558 |
|
|
Amounts reclassified from accumulated other
comprehensive income (loss)
|
|
|
— |
|
|
|
10,407 |
|
|
|
(17,530 |
) |
|
|
(7,123 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
4,662 |
|
|
|
10,407 |
|
|
|
(11,634 |
) |
|
|
3,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2016
|
|
$ |
(670,551 |
) |
|
$ |
(340,891 |
) |
|
$ |
13,422 |
|
|
$ |
(998,020 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September
2015 |
|
| In thousands |
|
Foreign
Currency
Translation
and Other |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Total |
|
|
Balance, June 2015
|
|
$ |
(599,297 |
) |
|
$ |
(360,125 |
) |
|
$ |
45,796 |
|
|
$ |
(913,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before
reclassification
|
|
|
14,022 |
|
|
|
— |
|
|
|
3,456 |
|
|
|
17,478 |
|
|
Amounts reclassified from accumulated other
comprehensive income (loss)
|
|
|
— |
|
|
|
11,588 |
|
|
|
(14,215 |
) |
|
|
(2,627 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
14,022 |
|
|
|
11,588 |
|
|
|
(10,759 |
) |
|
|
14,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2015
|
|
$ |
(585,275 |
) |
|
$ |
(348,537 |
) |
|
$ |
35,037 |
|
|
$ |
(898,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September
2016 |
|
| In thousands |
|
Foreign
Currency
Translation
and Other |
|
|
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
|
|
|
47,618 |
|
|
|
— |
|
|
|
20,331 |
|
|
|
67,949 |
|
|
Amounts reclassified from accumulated other
comprehensive income (loss)
|
|
|
— |
|
|
|
31,304 |
|
|
|
(54,051 |
) |
|
|
(22,747 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
47,618 |
|
|
|
31,304 |
|
|
|
(33,720 |
) |
|
|
45,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2016
|
|
$ |
(670,551 |
) |
|
$ |
(340,891 |
) |
|
$ |
13,422 |
|
|
$ |
(998,020 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September
2015 |
|
| In thousands |
|
Foreign
Currency
Translation
and Other |
|
|
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
|
|
|
(228,334 |
) |
|
|
— |
|
|
|
31,925 |
|
|
|
300 |
|
|
|
(196,109 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
28,597 |
|
|
|
(28,277 |
) |
|
|
(714 |
) |
|
|
(394 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(228,334 |
) |
|
|
28,597 |
|
|
|
3,648 |
|
|
|
(414 |
) |
|
|
(196,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 2015
|
|
$ |
(585,275 |
) |
|
$ |
(348,537 |
) |
|
$ |
35,037 |
|
|
$ |
— |
|
|
$ |
(898,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications out of accumulated OCI are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands |
|
Affected Line Item in the
Consolidated Statements
of Income
|
|
Three Months Ended September
|
|
|
Nine Months Ended September
|
|
| Details About Accumulated
Other |
|
|
|
|
Comprehensive Income (Loss) Components
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Amortization of defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial losses
|
|
(a) |
|
$ |
(16,303 |
) |
|
$ |
(15,493 |
) |
|
$ |
(48,928 |
) |
|
$ |
(46,485 |
) |
|
Deferred prior service costs
|
|
(a) |
|
|
(645 |
) |
|
|
(760 |
) |
|
|
(1,937 |
) |
|
|
(2,281 |
) |
|
Pension settlement charges
|
|
Selling, general and administrative
expenses |
|
|
— |
|
|
|
(2,400 |
) |
|
|
— |
|
|
|
(3,992 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
(16,948 |
) |
|
|
(18,653 |
) |
|
|
(50,865 |
) |
|
|
(52,758 |
) |
|
|
Tax benefit |
|
|
6,541 |
|
|
|
7,065 |
|
|
|
19,561 |
|
|
|
24,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
(10,407 |
) |
|
|
(11,588 |
) |
|
|
(31,304 |
) |
|
|
(28,597 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Net sales |
|
|
14,676 |
|
|
|
(22,434 |
) |
|
|
11,997 |
|
|
|
(51,279 |
) |
|
Foreign exchange contracts
|
|
Cost of goods sold |
|
|
15,485 |
|
|
|
39,142 |
|
|
|
80,094 |
|
|
|
80,633 |
|
|
Foreign exchange contracts
|
|
Selling, general and administrative
expenses |
|
|
(1,098 |
) |
|
|
— |
|
|
|
(3,611 |
) |
|
|
— |
|
|
Foreign exchange contracts
|
|
Other income (expense), net |
|
|
526 |
|
|
|
7,541 |
|
|
|
2,653 |
|
|
|
20,515 |
|
|
Interest rate contracts
|
|
Interest expense |
|
|
(1,131 |
) |
|
|
(1,078 |
) |
|
|
(3,356 |
) |
|
|
(3,200 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
28,458 |
|
|
|
23,171 |
|
|
|
87,777 |
|
|
|
46,669 |
|
|
|
Tax expense |
|
|
(10,928 |
) |
|
|
(8,956 |
) |
|
|
(33,726 |
) |
|
|
(18,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
17,530 |
|
|
|
14,215 |
|
|
|
54,051 |
|
|
|
28,277 |
|
|
Gains (losses) on sales of marketable securities
|
|
Other income (expense), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,177 |
|
|
|
Tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period
|
|
Net of tax |
|
$ |
7,123 |
|
|
$ |
2,627 |
|
|
$ |
22,747 |
|
|
$ |
394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
These accumulated OCI components are
included in the computation of net periodic pension cost (see Note
I for additional details). |
|