Annual report pursuant to Section 13 and 15(d)

Capital and Accumulated Other Comprehensive Loss

v3.6.0.2
Capital and Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Capital and Accumulated Other Comprehensive Loss
Capital and Accumulated Other Comprehensive Loss
Common Stock
During 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 2016, 2015 and 2014, VF restored 16.1 million, 10.1 million and 12.1 million treasury shares, respectively, 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 2016, 2015 or 2014. 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 (Note M) and is treated as treasury shares for financial reporting purposes. During 2016, the Company purchased 8,300 shares of Common Stock in open market transactions for $0.5 million. Balances related to shares held for deferred compensation plans are as follows:
 
 
2016
 
2015
 
2014
 
In thousands, except share amounts
Shares held for deferred compensation plans
439,667

 
562,649

 
637,504

Cost of shares held for deferred compensation plans
$
5,464

 
$
6,823

 
$
7,724


Accumulated Other Comprehensive Loss
Comprehensive income consists of net income and specified components of 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:
 
 
2016
 
2015
 
In thousands
Foreign currency translation and other
$
(794,579
)
 
$
(718,169
)
Defined benefit pension plans
(302,697
)
 
(372,195
)
Derivative financial instruments
55,813

 
47,142

Accumulated other comprehensive loss
$
(1,041,463
)
 
$
(1,043,222
)

 
The changes in accumulated OCI, net of related taxes, are as follows:
 
 
Foreign Currency Translation and Other
 
Defined
Benefit
Pension Plans
 
Derivative
Financial
Instruments
 
Marketable
Securities
 
Total
 
In thousands
Balance, December 2013
$
106,647

 
$
(277,451
)
 
$
(41,754
)
 
$
838

 
$
(211,720
)
Other comprehensive income (loss) before reclassifications
(463,588
)
 
(126,275
)
 
53,651

 
(424
)
 
(536,636
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
26,592

 
19,492

 
—

 
46,084

Net other comprehensive income (loss)
(463,588
)
 
(99,683
)
 
73,143

 
(424
)
 
(490,552
)
Balance, December 2014
(356,941
)
 
(377,134
)
 
31,389

 
414

 
(702,272
)
Other comprehensive income (loss) before reclassifications
(361,228
)
 
(37,238
)
 
55,325

 
300

 
(342,841
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
42,177

 
(39,572
)
 
(714
)
 
1,891

Net other comprehensive income (loss)
(361,228
)
 
4,939

 
15,753

 
(414
)
 
(340,950
)
Balance, December 2015
(718,169
)
 
(372,195
)
 
47,142

 
—

 
(1,043,222
)
Other comprehensive income (loss) before reclassifications
(76,410
)
 
(4,357
)
 
81,036

 
—

 
269

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
73,855

 
(72,365
)
 
—

 
1,490

Net other comprehensive income (loss)
(76,410
)
 
69,498

 
8,671

 
—

 
1,759

Balance, December 2016
$
(794,579
)
 
$
(302,697
)
 
$
55,813

 
$
—

 
$
(1,041,463
)

 
Reclassifications out of accumulated OCI are as follows:
 
 
Details About Accumulated Other
Comprehensive Income (Loss) Components
Affected Line Item in the
Consolidated Statements of
Income
 
2016
 
2015
 
2014
 
 
 
 
In thousands
 
Amortization of defined benefit pension plans:
 
 
 
 
 
 
 
 
Net deferred actuarial losses
(a) 
 
$
(65,212
)
 
$
(61,966
)
 
$
(37,518
)
 
Deferred prior service costs
(a) 
 
(2,584
)
 
(3,038
)
 
(5,445
)
 
Pension settlement charges
Selling, general and administrative expenses
 
(50,922
)
 
(4,062
)
 
—

 
 
 
Total before tax
 
(118,718
)
 
(69,066
)
 
(42,963
)
 
 
Tax benefit
 
44,863

 
26,889

 
16,371

 
 
Net of tax
 
(73,855
)
 
(42,177
)
 
(26,592
)
 
Gains (losses) on derivative financial instruments:
 
 
 
 
 
 
 
 
Foreign exchange contracts
Net sales
 
28,798

 
(68,543
)
 
(18,071
)
 
Foreign exchange contracts
Cost of goods sold
 
84,613

 
132,432

 
(8,756
)
 
Foreign exchange contracts
Selling, general and administrative expenses
 
(4,314
)
 
(1,885
)
 
—

 
 
Foreign exchange contracts
Other income (expense), net
 
2,864

 
7,267

 
(1,189
)
 
Interest rate contracts
Interest expense
 
(4,504
)
 
(4,295
)
 
(4,095
)
 
 
Total before tax
 
107,457

 
64,976

 
(32,111
)
 
 
Tax benefit (expense)
 
(35,092
)
 
(25,404
)
 
12,619

 
 
Net of tax
 
72,365

 
39,572

 
(19,492
)
 
Gains (losses) on sale of marketable securities:
Other income (expense), net
 
—

 
1,177

 
—

 
 
Tax expense
 
—

 
(463
)
 
—

 
 
Net of tax
 
—

 
714

 
—

 
Total reclassifications for the year
Net of tax
 
$
(1,490
)
 
$
(1,891
)
 
$
(46,084
)
(a) 
These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note M for additional details).