| Capital and Accumulated Other Comprehensive Income (Loss) |
Note M — Capital
and Accumulated Other Comprehensive Income (Loss)
Common
Stock
During 2015,
the Company purchased 10.0 million shares of Common Stock in
open market transactions for $730.1 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 2015, 2014 and 2013, VF restored
10.1 million, 12.1 million and 17.0 million 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 2015, 2014 or 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
(Note L) and is treated as treasury shares for financial reporting
purposes. During 2015, the Company purchased 36,100 shares of
Common Stock in open market transactions for $2.5 million. Balances
related to shares held for deferred compensation plans are as
follows:
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|
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|
|
|
|
|
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| |
|
2015 |
|
|
2014 |
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|
2013 |
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| |
|
In thousands, except
share amounts |
|
|
Shares held for deferred
compensation plans
|
|
|
562,649 |
|
|
|
637,504 |
|
|
|
704,104 |
|
|
Cost of shares held for
deferred compensation plans
|
|
$ |
6,823 |
|
|
$ |
7,724 |
|
|
$ |
8,396 |
|
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:
|
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|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
| |
|
In
thousands |
|
|
Foreign currency
translation
|
|
$ |
(718,169 |
) |
|
$ |
(356,941 |
) |
|
Defined benefit pension
plans
|
|
|
(372,195 |
) |
|
|
(377,134 |
) |
|
Derivative financial
instruments
|
|
|
47,142 |
|
|
|
31,389 |
|
|
Marketable
securities
|
|
|
— |
|
|
|
414 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
$ |
(1,043,222 |
) |
|
$ |
(702,272 |
) |
|
|
|
|
|
|
|
|
|
The changes in
accumulated OCI, net of related taxes, are as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| |
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Foreign
Currency
Translation |
|
|
Defined
Benefit
Pension Plans |
|
|
Derivative
Financial
Instruments |
|
|
Marketable
Securities
|
|
|
Total |
|
| |
|
In
thousands |
|
|
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 |
) |
|
Other comprehensive income
(loss) before reclassifications
|
|
|
(361,228 |
) |
|
|
(37,238 |
) |
|
|
55,325 |
|
|
|
300 |
|
|
|
(342,841 |
) |
|
Amounts reclassified from
accumulated other comprehensive income (loss)
|
|
|
— |
|
|
|
42,177 |
|
|
|
(39,572 |
) |
|
|
(714 |
) |
|
|
1,891 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net other comprehensive
income (loss)
|
|
|
(361,228 |
) |
|
|
4,939 |
|
|
|
15,753 |
|
|
|
(414 |
) |
|
|
(340,950 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2015
|
|
$ |
(718,169 |
) |
|
$ |
(372,195 |
) |
|
$ |
47,142 |
|
|
$ |
— |
|
|
$ |
(1,043,222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Reclassifications out of accumulated OCI are as
follows:
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Details About
Accumulated Other
Comprehensive Income (Loss) Components
|
|
Affected Line Item in the
Consolidated Statements of
Income (Loss)
|
|
2015 |
|
|
2014 |
|
| |
|
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In
thousands |
|
|
Amortization of defined
benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
(a) |
|
$ |
(61,966 |
) |
|
$ |
(37,518 |
) |
|
Deferred prior service
costs
|
|
(a) |
|
|
(3,038 |
) |
|
|
(5,445 |
) |
|
Pension settlement
charges
|
|
Selling, general and |
|
|
|
|
|
|
|
|
|
|
administrative expenses |
|
|
(4,062 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total before tax |
|
|
(69,066 |
) |
|
|
(42,963 |
) |
|
|
Tax benefit |
|
|
26,889 |
|
|
|
16,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
(42,177 |
) |
|
|
(26,592 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on
derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
contracts
|
|
Net sales |
|
|
(68,543 |
) |
|
|
(18,071 |
) |
|
Foreign exchange
contracts
|
|
Cost of goods sold |
|
|
132,432 |
|
|
|
(8,756 |
) |
|
Foreign exchange
contracts
|
|
Selling, general and |
|
|
|
|
|
|
|
|
|
|
administrative expenses |
|
|
(1,885 |
) |
|
|
— |
|
|
Foreign exchange
contracts
|
|
Other income (expense), net |
|
|
7,267 |
|
|
|
(1,189 |
) |
|
Interest rate
contracts
|
|
Interest expense |
|
|
(4,295 |
) |
|
|
(4,095 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total before tax |
|
|
64,976 |
|
|
|
(32,111 |
) |
|
|
Tax benefit (expense) |
|
|
(25,404 |
) |
|
|
12,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
39,572 |
|
|
|
(19,492 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on sale of
marketable securities:
|
|
Other income (expense), net |
|
|
1,177 |
|
|
|
— |
|
|
|
Tax expense |
|
|
(463 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of tax |
|
|
714 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for
the year
|
|
Net of tax |
|
$ |
(1,891 |
) |
|
$ |
(46,084 |
) |
|
|
|
|
|
|
|
|
|
|
|
| (a) |
These accumulated OCI components are included in the
computation of net periodic pension cost (see Note L for additional
details).
|
|