| Capital and Accumulated Other Comprehensive Income (Loss) |
Note H – Capital and Accumulated Other Comprehensive
Income (Loss)
During the first quarter of 2014, the Company repurchased
9.1 million shares of Common Stock in open market transactions
for $552.8 million under its share repurchase program authorized by
VF’s Board of Directors. These transactions were treated as
treasury stock transactions in the first quarter of 2014. Due to
the three-day settlement period on stock trades, $40.8 million of
this cash (related to the repurchase of 667,500 shares) was not
transferred to the broker until the second quarter of 2014, and
thus has been excluded from financing activities in the
Consolidated Statement of Cash Flows for the first quarter of
2014.
Common Stock outstanding is net of shares held in treasury which
are, in substance, retired. During the first quarter of 2014, VF
restored 7,640,470 treasury shares to an unissued status. There
were 1,500,631 shares held in treasury at the end of March 2014, no
shares held in treasury at the end of December 2013, and 16,960,204
shares held in treasury at the end of March 2013. 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 and is treated as treasury shares for financial
reporting purposes. During the first quarter of 2014, the Company
purchased 30,800 shares of Common Stock for $1.8 million. Balances
related to shares held for deferred compensation plans are as
follows:
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|
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|
|
|
|
|
|
|
|
| In millions, except share amounts |
|
March
2014 |
|
|
December
2013 |
|
|
March
2013 |
|
|
Shares held for deferred compensation plans
|
|
|
725,504 |
|
|
|
704,104 |
|
|
|
732,704 |
|
|
Cost of shares held for deferred compensation plans
|
|
$ |
9.8 |
|
|
$ |
8.4 |
|
|
$ |
8.5 |
|
Accumulated Other Comprehensive Income (Loss)
Comprehensive income consists of net income and specified
components of other comprehensive income (“OCI”). OCI
consists of 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 other comprehensive income (loss) are reported, net
of related income taxes, in accumulated other comprehensive income
(loss) in stockholders’ equity, as follows:
|
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|
|
|
|
|
|
|
|
|
|
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| In thousands |
|
March
2014 |
|
|
December
2013 |
|
|
March
2013 |
|
|
Foreign currency translation
|
|
$ |
97,060 |
|
|
$ |
106,647 |
|
|
$ |
(17,866 |
) |
|
Defined benefit pension plans
|
|
|
(270,830 |
) |
|
|
(277,451 |
) |
|
|
(407,679 |
) |
|
Derivative financial instruments
|
|
|
(36,223 |
) |
|
|
(41,754 |
) |
|
|
1,924 |
|
|
Marketable securities
|
|
|
504 |
|
|
|
838 |
|
|
|
486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
$ |
(209,489 |
) |
|
$ |
(211,720 |
) |
|
$ |
(423,135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated other comprehensive income (loss), net
of related taxes, are as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In thousands |
|
Three Months Ended March
2014 |
|
| |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
Balance, December 2013
|
|
$ |
106,647 |
|
|
$ |
(277,451 |
) |
|
$ |
(41,754 |
) |
|
$ |
838 |
|
|
$ |
(211,720 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
(9,587 |
) |
|
|
— |
|
|
|
2,243 |
|
|
|
(334 |
) |
|
|
(7,678 |
) |
|
Amounts reclassified from accumulated other comprehensive income
(loss)
|
|
|
— |
|
|
|
6,621 |
|
|
|
3,288 |
|
|
|
— |
|
|
|
9,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive income (loss)
|
|
|
(9,587 |
) |
|
|
6,621 |
|
|
|
5,531 |
|
|
|
(334 |
) |
|
|
2,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 2014
|
|
$ |
97,060 |
|
|
$ |
(270,830 |
) |
|
$ |
(36,223 |
) |
|
$ |
504 |
|
|
$ |
(209,489 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended March
2013 |
|
| |
|
Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities |
|
|
Total |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 2013
|
|
$ |
(17,866 |
) |
|
$ |
(407,679 |
) |
|
$ |
1,924 |
|
|
$ |
486 |
|
|
$ |
(423,135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications out of accumulated other comprehensive income
(loss) are as follows:
|
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|
|
|
|
|
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|
| In thousands |
|
Affected Line Item in the
|
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|
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|
| Details About Accumulated Other |
|
Consolidated Statements
|
|
Three Months Ended March
|
|
|
Comprehensive Income (Loss) Components
|
|
of Income (Loss)
|
|
2014 |
|
|
2013 |
|
|
Amortization of defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial losses
|
|
(a)
|
|
$ |
(9,384 |
) |
|
$ |
(21,362 |
) |
|
Deferred prior service costs
|
|
(a)
|
|
|
(1,362 |
) |
|
|
(341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax
|
|
|
(10,746 |
) |
|
|
(21,703 |
) |
|
|
Tax benefit (expense)
|
|
|
4,125 |
|
|
|
8,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax
|
|
$ |
(6,621 |
) |
|
$ |
(12,859 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Net sales
|
|
$ |
1,660 |
|
|
$ |
(155 |
) |
|
Foreign exchange contracts
|
|
Cost of goods sold
|
|
|
(5,364 |
) |
|
|
3,858 |
|
|
Foreign exchange contracts
|
|
Other income (expense), net
|
|
|
(708 |
) |
|
|
1,092 |
|
|
Interest rate contracts
|
|
Interest expense
|
|
|
(1,004 |
) |
|
|
(957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax
|
|
|
(5,416 |
) |
|
|
3,838 |
|
|
|
Tax benefit (expense)
|
|
|
2,128 |
|
|
|
(1,508 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax
|
|
$ |
(3,288 |
) |
|
$ |
2,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period
|
|
Net of tax
|
|
$ |
(9,909 |
) |
|
$ |
(10,529 |
) |
|
|
|
|
|
|
|
|
|
|
|
| (a) |
These accumulated other comprehensive
income (loss) components are included in the computation of net
periodic pension cost (see Note G for additional details). |
|