| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Common Stock
During the three months ended June 2020, the Company did not purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased.
Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of June 2020, March 2020 or June 2019. The excess of the cost of treasury shares acquired over the $0.25 per share stated value of Common Stock is deducted from retained earnings.
Accumulated Other Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and specified components of other comprehensive income (“OCI”), which relates to changes in assets and liabilities that are not included in net income (loss) under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income (loss) is presented in the Consolidated Statements of Comprehensive Income (Loss). The deferred components of OCI are reported, net of related income taxes, in accumulated OCI in stockholders’ equity, as follows:
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| (In thousands) |
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June 2020 |
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March 2020 |
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June 2019 |
| Foreign currency translation and other |
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$ |
(685,236) |
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$ |
(737,709) |
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$ |
(635,901) |
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| Defined benefit pension plans |
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(259,290) |
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(262,472) |
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(290,468) |
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| Derivative financial instruments |
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46,985 |
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69,223 |
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58,983 |
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| Accumulated other comprehensive income (loss) |
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$ |
(897,541) |
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$ |
(930,958) |
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$ |
(867,386) |
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The changes in accumulated OCI, net of related taxes, were as follows:
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Three Months Ended June 2020 |
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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, March 2020 |
$ |
(737,709) |
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$ |
(262,472) |
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$ |
69,223 |
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$ |
(930,958) |
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Other comprehensive income (loss) before reclassifications |
10,109 |
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987 |
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(6,065) |
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5,031 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
42,364 |
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2,195 |
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(16,173) |
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28,386 |
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Net other comprehensive income (loss) |
52,473 |
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3,182 |
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(22,238) |
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33,417 |
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| Balance, June 2020 |
$ |
(685,236) |
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$ |
(259,290) |
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$ |
46,985 |
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$ |
(897,541) |
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Three Months Ended June 2019 |
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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 |
| 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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Adoption of new accounting standard, ASU 2018-02 |
(9,088) |
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(50,402) |
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(2,371) |
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(61,861) |
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Other comprehensive income (loss) before reclassifications |
15,772 |
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(823) |
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10,900 |
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25,849 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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3,147 |
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(7,739) |
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(4,592) |
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Spin-off of Jeans Business |
83,094 |
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794 |
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(8,595) |
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75,293 |
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Net other comprehensive income (loss) |
89,778 |
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(47,284) |
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(7,805) |
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34,689 |
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| Balance, June 2019 |
$ |
(635,901) |
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$ |
(290,468) |
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$ |
58,983 |
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$ |
(867,386) |
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Reclassifications out of accumulated OCI were as follows:
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(In thousands)
Details About Accumulated Other Comprehensive Income (Loss) Components
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Affected Line Item in the Consolidated Statements of Operations |
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Three Months Ended June |
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2020 |
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2019 |
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| Losses on foreign currency translation and other: |
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Liquidation of foreign entities |
Other income (expense), net |
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$ |
(42,364) |
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$ |
— |
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Total before tax |
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(42,364) |
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— |
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Tax (expense) benefit |
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— |
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— |
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Net of tax |
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(42,364) |
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— |
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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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(2,863) |
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(4,019) |
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Deferred prior service (costs) credits |
Other income (expense), net |
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17 |
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(13) |
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Total before tax |
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(2,846) |
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(4,032) |
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Tax benefit |
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651 |
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885 |
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Net of tax |
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(2,195) |
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(3,147) |
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| Gains (losses) on derivative financial instruments: |
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Foreign exchange contracts |
Net revenues |
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171 |
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(2,905) |
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Foreign exchange contracts |
Cost of goods sold |
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16,705 |
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11,105 |
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Foreign exchange contracts |
Selling, general and administrative expenses |
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1,607 |
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716 |
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Foreign exchange contracts |
Other income (expense), net |
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1,770 |
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2,872 |
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Interest rate contracts |
Interest expense |
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27 |
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(1,293) |
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Total before tax |
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20,280 |
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10,495 |
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Tax expense |
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(4,107) |
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(2,756) |
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Net of tax |
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16,173 |
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7,739 |
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| Total reclassifications for the period, net of tax |
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$ |
(28,386) |
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$ |
4,592 |
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