Quarterly report pursuant to Section 13 or 15(d)

Capital and Accumulated Other Comprehensive Income (Loss)

v2.4.0.6
Capital and Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 30, 2013
Capital and Accumulated Other Comprehensive Income (Loss)

Note J — Capital and Accumulated Other Comprehensive Income (Loss)

Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were 4,240,051 treasury shares at March 2013, 2,530,401 at December 2012 and 21,462,952 at March 2012. During 2012, VF restored 19,000,000 shares of treasury stock to an unissued status. The excess of the cost of treasury shares acquired over the $1 per share stated value of Common Stock is deducted from retained earnings. In addition, 183,176 shares of Common Stock at March 2013, 187,456 shares at December 2012 and 239,345 shares at March 2012 were held in connection with deferred compensation plans. These shares, having a cost of $8.5 million, $8.8 million and $11.2 million at the respective dates, are treated as treasury shares for financial reporting purposes.

The deferred components of other comprehensive income (loss) are reported in accumulated other comprehensive income (loss) in stockholders’ equity, net of related income taxes, as follows:

 

In thousands    March
2013		     December
2012		     March
2012		  

Foreign currency translation

    $ (17,866 )    $ (4,068 )    $ (13,487 ) 

Defined benefit pension plans

      (407,679 )      (420,538 )      (345,193 ) 

Derivative financial instruments

      1,924        (29,430 )      (18,562 ) 

Marketable securities

      486        141        263   
  

 

 

    

 

 

    

 

 

  

Accumulated other comprehensive income (loss)

    $ (423,135 )    $ (453,895 )    $ (376,979 ) 
  

 

 

    

 

 

    

 

 

  

 

The changes in accumulated other comprehensive income (loss) are as follows:

 

In thousands    Foreign
Currency
Translation		     Defined
Benefit
Pension Plans		     Derivative
Financial
Instruments		     Marketable
Securities		      Total  

Beginning balance, December 2012

    $ (4,068 )    $ (420,538 )    $ (29,430 )    $ 141       $ (453,895 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Other comprehensive income (loss) before reclassifications

      (13,798 )      —          33,684        345         20,231   

Amounts reclassified from accumulated other comprehensive income (loss)

      —          12,859        (2,330 )      —           10,529   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net other comprehensive income (loss)

      (13,798 )      12,859        31,354        345         30,760   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Ending balance, March 2013

    $ (17,866 )    $ (407,679 )    $ 1,924      $ 486       $ (423,135 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Reclassifications out of accumulated other comprehensive income (loss) are as follows:

 

Details About Accumulated Other
Comprehensive Income (Loss) Components

   

Affected Line Item in the
Consolidated Statements
of Income (Loss)

    Amount Reclassified From Accumulated
Other Comprehensive Income (Loss)
Three Months Ended March 2013		  

Gains and losses on derivative financial instruments:

      

Foreign exchange contracts

    Net sales    $ (155 ) 

Foreign exchange contracts

    Cost of goods sold      3,858   

Foreign exchange contracts

    Other income (expense), net      1,092   

Interest rate contracts

    Interest expense      (957 ) 
     

 

 

  
   Total before tax      3,838   
   Tax benefit (expense)      (1,508 ) 
     

 

 

  
   Net of tax    $ 2,330   
     

 

 

  

Amortization of defined benefit pension plans:

      

Net deferred actuarial losses

    (a)    $ (21,362 ) 

Deferred prior service cost

    (a)      (341 ) 
     

 

 

  
   Total before tax      (21,703 ) 
   Tax benefit (expense)      8,844   
     

 

 

  
   Net of tax      (12,859 ) 
     

 

 

  

Total reclassifications for the period

    Net of tax    $ (10,529 ) 
     

 

 

  

 

(a) 

These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note H for additional details).