| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
During the year ended March 2019, the Company purchased 1.9 million shares of Common Stock in open market transactions for $150.0 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 year ended March 2019, the three months ended March 2018 and the years ended December 2017 and 2016, VF restored 2.2 million, 3.4 million, 22.3 million and 16.1 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 March 2019, March 2018, December 2017 or December 2016. 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 was also held by the Company’s deferred compensation plans (Note 15) and was treated as treasury shares for financial reporting purposes. During the year ended March 2019, the Company purchased 7,680 shares of Common Stock in open market transactions for $0.7 million. As of March 2019, there were no shares held in the Company's deferred compensation plans.
Balances related to shares held for deferred compensation plans were as follows:
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Year Ended March |
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Three Months
Ended March
(Transition Period)
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Year Ended December |
(In thousands, except share amounts) |
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2019 |
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2018 |
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2017 |
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2016 |
Shares held for deferred compensation plans |
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— |
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284,785 |
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317,515 |
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|
439,667 |
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Cost of shares held for deferred compensation plans |
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$ |
— |
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$ |
3,621 |
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$ |
3,901 |
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$ |
5,464 |
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Accumulated Other Comprehensive Income (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:
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(In thousands) |
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March 2019 |
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March 2018 |
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December 2017 |
Foreign currency translation and other |
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$ |
(725,679 |
) |
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$ |
(476,869 |
) |
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$ |
(546,201 |
) |
Defined benefit pension plans |
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(243,184 |
) |
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|
(289,618 |
) |
|
(291,949 |
) |
Derivative financial instruments |
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66,788 |
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(97,543 |
) |
|
(87,990 |
) |
Accumulated other comprehensive income (loss) |
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$ |
(902,075 |
) |
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$ |
(864,030 |
) |
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$ |
(926,140 |
) |
The changes in accumulated OCI, net of related taxes, are as follows:
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(In thousands) |
Foreign Currency Translation and Other |
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Defined
Benefit
Pension Plans |
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Derivative
Financial
Instruments |
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Total |
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Balance, December 2015 |
$ |
(718,169 |
) |
|
$ |
(372,195 |
) |
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$ |
47,142 |
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|
$ |
(1,043,222 |
) |
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Other comprehensive income (loss) before reclassifications |
(76,410 |
) |
|
(4,357 |
) |
|
81,036 |
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|
269 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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73,855 |
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(72,365 |
) |
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1,490 |
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Net other comprehensive income (loss) |
(76,410 |
) |
|
69,498 |
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|
8,671 |
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|
1,759 |
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Balance, December 2016 |
(794,579 |
) |
|
(302,697 |
) |
|
55,813 |
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|
(1,041,463 |
) |
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Other comprehensive income (loss) before reclassifications |
248,378 |
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(17,970 |
) |
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(123,080 |
) |
|
107,328 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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28,718 |
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(20,723 |
) |
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7,995 |
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Net other comprehensive income (loss) |
248,378 |
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10,748 |
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(143,803 |
) |
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115,323 |
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Balance, December 2017 |
(546,201 |
) |
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(291,949 |
) |
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(87,990 |
) |
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(926,140 |
) |
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Other comprehensive income (loss) before reclassifications |
69,332 |
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(4,852 |
) |
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(21,078 |
) |
|
43,402 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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|
7,183 |
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|
11,525 |
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|
18,708 |
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Net other comprehensive income (loss) |
69,332 |
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|
2,331 |
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|
(9,553 |
) |
|
62,110 |
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Balance, March 2018 |
(476,869 |
) |
|
(289,618 |
) |
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(97,543 |
) |
|
(864,030 |
) |
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Other comprehensive income (loss) before reclassifications |
(248,810 |
) |
|
10,444 |
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137,218 |
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(101,148 |
) |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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35,990 |
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27,113 |
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63,103 |
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Net other comprehensive income (loss) |
(248,810 |
) |
|
46,434 |
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164,331 |
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|
(38,045 |
) |
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Balance, March 2019 |
$ |
(725,679 |
) |
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$ |
(243,184 |
) |
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$ |
66,788 |
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|
$ |
(902,075 |
) |
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Reclassifications out of accumulated OCI are as follows:
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(In thousands) |
Affected Line Item in the Consolidated Statements of Income |
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Year Ended March |
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Three Months
Ended March
(Transition Period)
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Year Ended December |
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Details About Accumulated Other
Comprehensive Income (Loss) Components |
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2019 |
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2018 |
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2017 |
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2016 |
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Amortization of defined benefit pension plans: |
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Net deferred actuarial losses |
Other income (expense), net |
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$ |
(28,474 |
) |
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$ |
(8,548 |
) |
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$ |
(41,440 |
) |
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$ |
(65,212 |
) |
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Deferred prior service costs |
Other income (expense), net |
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(494 |
) |
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|
(647 |
) |
|
(2,646 |
) |
|
(2,584 |
) |
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Pension settlement charges |
Other income (expense), net |
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(8,856 |
) |
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|
— |
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— |
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(50,922 |
) |
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Pension curtailment losses |
Other income (expense), net |
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(9,530 |
) |
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— |
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(566 |
) |
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— |
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Pension curtailment loss |
Income (loss) from discontinued operations, net of tax |
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— |
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— |
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(1,105 |
) |
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— |
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| |
| |
Total before tax |
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(47,354 |
) |
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(9,195 |
) |
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(45,757 |
) |
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(118,718 |
) |
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Tax benefit |
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11,364 |
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|
2,012 |
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|
17,039 |
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|
44,863 |
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Net of tax |
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(35,990 |
) |
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(7,183 |
) |
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(28,718 |
) |
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(73,855 |
) |
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Gains (losses) on derivative financial instruments: |
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Foreign exchange contracts |
Net revenues |
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1,774 |
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4,948 |
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33,641 |
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|
28,798 |
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Foreign exchange contracts |
Cost of goods sold |
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(20,686 |
) |
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(13,286 |
) |
|
610 |
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84,613 |
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Foreign exchange contracts |
Selling, general and administrative expenses |
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(4,772 |
) |
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(1,981 |
) |
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(3,610 |
) |
|
(4,314 |
) |
| |
| |
Foreign exchange contracts |
Other income (expense), net |
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|
355 |
|
|
|
(2,427 |
) |
|
(1,851 |
) |
|
2,864 |
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| |
Interest rate contracts |
Interest expense |
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(5,012 |
) |
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|
(1,214 |
) |
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(4,723 |
) |
|
(4,504 |
) |
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Total before tax |
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(28,341 |
) |
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(13,960 |
) |
|
24,067 |
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|
107,457 |
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Tax benefit (expense) |
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|
1,228 |
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|
2,435 |
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(3,344 |
) |
|
(35,092 |
) |
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Net of tax |
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(27,113 |
) |
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|
(11,525 |
) |
|
20,723 |
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|
72,365 |
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Total reclassifications for the period, net of tax |
|
|
$ |
(63,103 |
) |
|
|
$ |
(18,708 |
) |
|
$ |
(7,995 |
) |
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$ |
(1,490 |
) |
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