| Capital and Accumulated Other Comprehensive Income (Loss) |
Note N — Capital
and Accumulated Other Comprehensive Income (Loss)
Common
Stock
During 2014,
the Company purchased 12.0 million shares of Common Stock in
open market transactions for $725.5 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 2014, 2013 and 2012, VF restored
12,103,600, 17,016,484 and 76,000,000 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 2014 or 2013 and 10,121,604 shares
held in treasury at the end of 2012 which were restored to an
unissued status during the following year. 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
(Note M) and is treated as treasury shares for financial reporting
purposes. During 2014, the Company purchased 37,000 shares of
Common Stock in open market transactions for $2.3 million. Balances
related to shares held for deferred compensation plans are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
|
2013 |
|
|
2012 |
|
| |
|
In millions, except
share amounts |
|
|
Shares held for deferred
compensation plans
|
|
|
637,504 |
|
|
|
704,104 |
|
|
|
749,824 |
|
|
Cost of shares held for
deferred compensation plans
|
|
$ |
7.7 |
|
|
$ |
8.4 |
|
|
$ |
8.8 |
|
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 OCI
are reported, net of related income taxes, in accumulated other
comprehensive income (loss) in stockholders’ equity, as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
| |
|
In
thousands |
|
|
Foreign currency
translation
|
|
$ |
(356,941 |
) |
|
$ |
106,647 |
|
|
Defined benefit pension
plans
|
|
|
(377,134 |
) |
|
|
(277,451 |
) |
|
Derivative financial
instruments
|
|
|
31,389 |
|
|
|
(41,754 |
) |
|
Marketable
securities
|
|
|
414 |
|
|
|
838 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
$ |
(702,272 |
) |
|
$ |
(211,720 |
) |
|
|
|
|
|
|
|
|
|
The changes in
accumulated other comprehensive income (loss), net of related
taxes, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Foreign |
|
|
Defined |
|
|
Derivative |
|
|
|
|
|
|
|
| |
|
Currency |
|
|
Benefit |
|
|
Financial |
|
|
Marketable |
|
|
|
|
| |
|
Translation |
|
|
Pension Plans |
|
|
Instruments |
|
|
Securities |
|
|
Total |
|
| |
|
In
thousands |
|
|
Balance, December
2012
|
|
$ |
(4,068 |
) |
|
$ |
(420,538 |
) |
|
$ |
(29,430 |
) |
|
$ |
141 |
|
|
$ |
(453,895 |
) |
|
Other comprehensive income
(loss) before reclassifications
|
|
|
110,715 |
|
|
|
89,873 |
|
|
|
(4,937 |
) |
|
|
697 |
|
|
|
196,348 |
|
|
Amounts reclassified from
accumulated other comprehensive income (loss)
|
|
|
— |
|
|
|
53,214 |
|
|
|
(7,387 |
) |
|
|
— |
|
|
|
45,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive
income (loss)
|
|
|
110,715 |
|
|
|
143,087 |
|
|
|
(12,324 |
) |
|
|
697 |
|
|
|
242,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2013
|
|
$ |
106,647 |
|
|
$ |
(277,451 |
) |
|
$ |
(41,754 |
) |
|
$ |
838 |
|
|
$ |
(211,720 |
) |
|
Other comprehensive income
(loss) before reclassifications
|
|
|
(463,588 |
) |
|
|
(126,275 |
) |
|
|
53,651 |
|
|
|
(424 |
) |
|
|
(536,636 |
) |
|
Amounts reclassified from
accumulated other comprehensive income (loss)
|
|
|
— |
|
|
|
26,592 |
|
|
|
19,492 |
|
|
|
— |
|
|
|
46,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive
income (loss)
|
|
|
(463,588 |
) |
|
|
(99,683 |
) |
|
|
73,143 |
|
|
|
(424 |
) |
|
|
(490,552 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2014
|
|
$ |
(356,941 |
) |
|
$ |
(377,134 |
) |
|
$ |
31,389 |
|
|
$ |
414 |
|
|
$ |
(702,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
December 2014 |
|
|
December 2013 |
|
| |
|
|
|
In
thousands
|
|
|
Amortization of defined
benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
(a) |
|
$ |
(37,518 |
) |
|
$ |
(85,356 |
) |
|
Deferred prior service
costs
|
|
(a) |
|
|
(5,445 |
) |
|
|
(1,270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before
tax |
|
|
(42,963 |
) |
|
|
(86,626 |
) |
|
|
Tax benefit (expense) |
|
|
16,371 |
|
|
|
33,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
(26,592 |
) |
|
|
(53,214 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on
derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
contracts
|
|
Net sales |
|
|
(18,071 |
) |
|
|
12,917 |
|
|
Foreign exchange
contracts
|
|
Cost of goods
sold |
|
|
(8,756 |
) |
|
|
4,208 |
|
|
Foreign exchange
contracts
|
|
Other income (expense), net |
|
|
(1,189 |
) |
|
|
(1,051 |
) |
|
Interest rate
contracts
|
|
Interest
expense |
|
|
(4,095 |
) |
|
|
(3,905 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before
tax |
|
|
(32,111 |
) |
|
|
12,169 |
|
|
|
Tax benefit
(expense) |
|
|
12,619 |
|
|
|
(4,782 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
(19,492 |
) |
|
|
7,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for
the year
|
|
Net of tax |
|
$ |
(46,084 |
) |
|
$ |
(45,827 |
) |
|
|
|
|
|
|
|
|
|
|
|
| (a) |
These accumulated other comprehensive income (loss) components
are included in the computation of net periodic pension cost (see
Note M for additional details).
|
|