| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
During the years ended March 2020 and 2019, the three months ended March 2018 and the year ended December 2017, the Company purchased 12.0 million, 1.9 million, 3.4 million and 22.2 million shares of Common Stock, respectively, in open market transactions for $1.0 billion, $150.0 million, $250.0 million and $1.2 billion, respectively, 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 years ended March 2020 and 2019, the three months ended March 2018 and the year ended
December 2017, VF restored 12.0 million, 2.2 million, 3.4 million and 22.3 million treasury shares, including shares held by the Company's deferred compensation plans, 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 2020, March 2019, March 2018 or December 2017. 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.
As of March 2020 and March 2019, there were no shares held in the Company's deferred compensation plans.
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:
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
March 2020 |
|
|
March 2019 |
Foreign currency translation and other |
|
$ |
(737,709 |
) |
|
|
$ |
(725,679 |
) |
Defined benefit pension plans |
|
(262,472 |
) |
|
|
(243,184 |
) |
Derivative financial instruments |
|
69,223 |
|
|
|
66,788 |
|
Accumulated other comprehensive income (loss) |
|
$ |
(930,958 |
) |
|
|
$ |
(902,075 |
) |
The changes in accumulated OCI, net of related taxes, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Foreign Currency Translation and Other |
|
Defined
Benefit
Pension Plans |
|
Derivative
Financial
Instruments |
|
Total |
|
Balance, December 2016 |
$ |
(794,579 |
) |
|
$ |
(302,697 |
) |
|
$ |
55,813 |
|
|
$ |
(1,041,463 |
) |
|
Other comprehensive income (loss) before reclassifications |
248,378 |
|
|
(17,970 |
) |
|
(123,080 |
) |
|
107,328 |
|
|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
28,718 |
|
|
(20,723 |
) |
|
7,995 |
|
|
Net other comprehensive income (loss) |
248,378 |
|
|
10,748 |
|
|
(143,803 |
) |
|
115,323 |
|
|
Balance, December 2017 |
(546,201 |
) |
|
(291,949 |
) |
|
(87,990 |
) |
|
(926,140 |
) |
|
Other comprehensive income (loss) before reclassifications |
69,332 |
|
|
(4,852 |
) |
|
(21,078 |
) |
|
43,402 |
|
|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
7,183 |
|
|
11,525 |
|
|
18,708 |
|
|
Net other comprehensive income (loss) |
69,332 |
|
|
2,331 |
|
|
(9,553 |
) |
|
62,110 |
|
|
Balance, March 2018 |
(476,869 |
) |
|
(289,618 |
) |
|
(97,543 |
) |
|
(864,030 |
) |
|
Other comprehensive income (loss) before reclassifications |
(248,810 |
) |
|
10,444 |
|
|
137,218 |
|
|
(101,148 |
) |
|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
35,990 |
|
|
27,113 |
|
|
63,103 |
|
|
Net other comprehensive income (loss) |
(248,810 |
) |
|
46,434 |
|
|
164,331 |
|
|
(38,045 |
) |
|
Balance, March 2019 |
(725,679 |
) |
|
(243,184 |
) |
|
66,788 |
|
|
(902,075 |
) |
|
Adoption of new accounting standard, ASU 2018-02 |
(9,088 |
) |
|
(50,402 |
) |
|
(2,371 |
) |
|
(61,861 |
) |
|
Other comprehensive income (loss) before reclassifications |
(134,297 |
) |
|
(2,757 |
) |
|
76,797 |
|
|
(60,257 |
) |
|
Amounts reclassified from accumulated other comprehensive income (loss) |
48,261 |
|
|
33,077 |
|
|
(63,396 |
) |
|
17,942 |
|
|
Spin-off of Jeans Business |
83,094 |
|
|
794 |
|
|
(8,595 |
) |
|
75,293 |
|
|
Net other comprehensive income (loss) |
(12,030 |
) |
|
(19,288 |
) |
|
2,435 |
|
|
(28,883 |
) |
|
Balance, March 2020 |
$ |
(737,709 |
) |
|
$ |
(262,472 |
) |
|
$ |
69,223 |
|
|
$ |
(930,958 |
) |
|
Reclassifications out of accumulated OCI are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(In thousands) |
Affected Line Item in the Consolidated Statements of Income |
|
|
Year Ended March |
|
Three Months
Ended March
(Transition Period)
|
|
Year Ended December |
| |
Details About Accumulated Other
Comprehensive Income (Loss) Components |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
2020 |
|
|
2019 |
|
2018 |
|
2017 |
| |
Losses on foreign currency translation and other: |
|
|
|
|
|
|
|
|
|
|
| |
Liquidation of foreign entities |
Other income (expense), net |
|
|
$ |
(48,261 |
) |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
Total before tax |
|
|
|
(48,261 |
) |
|
|
— |
|
|
— |
|
|
— |
|
| |
Tax (expense) benefit |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
| |
Net of tax |
|
|
|
(48,261 |
) |
|
|
— |
|
|
— |
|
|
— |
|
| |
Amortization of defined benefit pension plans: |
|
|
|
|
|
|
|
|
|
|
| |
Net deferred actuarial losses |
Other income (expense), net |
|
|
(14,848 |
) |
|
|
(28,474 |
) |
|
(8,548 |
) |
|
(41,440 |
) |
| |
Deferred prior service costs |
Other income (expense), net |
|
|
(1,887 |
) |
|
|
(494 |
) |
|
(647 |
) |
|
(2,646 |
) |
| |
Pension settlement charges |
Other income (expense), net |
|
|
(27,443 |
) |
|
|
(8,856 |
) |
|
— |
|
|
— |
|
| |
Pension curtailment losses |
Other income (expense), net |
|
|
— |
|
|
|
(9,530 |
) |
|
— |
|
|
(566 |
) |
| |
Pension curtailment loss |
Income from discontinued operations, net of tax |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(1,105 |
) |
| |
| |
Total before tax |
|
|
|
(44,178 |
) |
|
|
(47,354 |
) |
|
(9,195 |
) |
|
(45,757 |
) |
| |
Tax benefit |
|
|
|
11,101 |
|
|
|
11,364 |
|
|
2,012 |
|
|
17,039 |
|
| |
Net of tax |
|
|
|
(33,077 |
) |
|
|
(35,990 |
) |
|
(7,183 |
) |
|
(28,718 |
) |
| |
Gains (losses) on derivative financial instruments: |
|
|
|
|
|
|
|
|
|
|
| |
Foreign exchange contracts |
Net revenues |
|
|
(18,076 |
) |
|
|
1,774 |
|
|
4,948 |
|
|
33,641 |
|
| |
Foreign exchange contracts |
Cost of goods sold |
|
|
94,376 |
|
|
|
(20,686 |
) |
|
(13,286 |
) |
|
610 |
|
| |
Foreign exchange contracts |
Selling, general and administrative expenses |
|
|
5,084 |
|
|
|
(4,772 |
) |
|
(1,981 |
) |
|
(3,610 |
) |
| |
| |
Foreign exchange contracts |
Other income (expense), net |
|
|
10,304 |
|
|
|
355 |
|
|
(2,427 |
) |
|
(1,851 |
) |
| |
Interest rate contracts |
Interest expense |
|
|
(13,177 |
) |
|
|
(5,012 |
) |
|
(1,214 |
) |
|
(4,723 |
) |
| |
Total before tax |
|
|
|
78,511 |
|
|
|
(28,341 |
) |
|
(13,960 |
) |
|
24,067 |
|
| |
Tax (expense) benefit |
|
|
|
(15,115 |
) |
|
|
1,228 |
|
|
2,435 |
|
|
(3,344 |
) |
| |
Net of tax |
|
|
|
63,396 |
|
|
|
(27,113 |
) |
|
(11,525 |
) |
|
20,723 |
|
| |
Total reclassifications for the period, net of tax |
|
|
$ |
(17,942 |
) |
|
|
$ |
(63,103 |
) |
|
$ |
(18,708 |
) |
|
$ |
(7,995 |
) |
|