Annual report pursuant to Section 13 and 15(d)

CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.8.0.1
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
12 Months Ended
Dec. 30, 2017
Equity [Abstract]  
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Common Stock

During 2017, the Company purchased 22.2 million shares of Common Stock in open market transactions for $1.2 billion 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 2017, 2016 and 2015, VF restored 22.3 million, 16.1 million and 10.1 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 2017, 2016 or 2015. 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 N) and is treated as treasury shares for financial reporting purposes. During 2017, the Company purchased 6,540 shares of Common Stock in open market transactions for $0.4 million.
Balances related to shares held for deferred compensation plans are as follows:
(In thousands, except share amounts)
 
2017
 
 
2016
 
2015
Shares held for deferred compensation plans
 
317,515

 
 
439,667

 
562,649

Cost of shares held for deferred compensation plans
 
$
3,901

 
 
$
5,464

 
$
6,823


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:
(In thousands)
 
2017
 
 
2016
Foreign currency translation and other
 
$
(546,201
)
 
 
$
(794,579
)
Defined benefit pension plans
 
(291,949
)
 
 
(302,697
)
Derivative financial instruments
 
(87,990
)
 
 
55,813

Accumulated other comprehensive income (loss)
 
$
(926,140
)
 
 
$
(1,041,463
)

 
The changes in accumulated OCI, net of related taxes, are as follows:
(In thousands)
Foreign Currency Translation and Other
 
Defined
Benefit
Pension Plans
 
Derivative
Financial
Instruments
 
Marketable
Securities
 
Total
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

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
)
Other comprehensive income (loss) before reclassifications
(76,410
)
 
(4,357
)
 
81,036

 

 
269

Amounts reclassified from accumulated other comprehensive income (loss)

 
73,855

 
(72,365
)
 

 
1,490

Net other comprehensive income (loss)
(76,410
)
 
69,498

 
8,671

 

 
1,759

Balance, December 2016
(794,579
)
 
(302,697
)
 
55,813

 

 
(1,041,463
)
Other comprehensive income (loss) before reclassifications
248,378

 
(17,970
)
 
(123,080
)
 

 
107,328

Amounts reclassified from accumulated other comprehensive income (loss)

 
28,718

 
(20,723
)
 

 
7,995

Net other comprehensive income (loss)
248,378

 
10,748

 
(143,803
)
 

 
115,323

Balance, December 2017
$
(546,201
)
 
$
(291,949
)
 
$
(87,990
)
 
$

 
$
(926,140
)

 
Reclassifications out of accumulated OCI are as follows:
 
(In thousands)

Details About Accumulated Other
Comprehensive Income (Loss) Components
Affected Line Item in the Consolidated Statements of Income
 
 
2017
 
 
2016
 
2015
 
Amortization of defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
Net deferred actuarial losses
(a) 
 
 
$
(41,440
)
 
 
$
(65,212
)
 
$
(61,966
)
 
Deferred prior service costs
(a) 
 
 
(2,646
)
 
 
(2,584
)
 
(3,038
)
 
Pension settlement charges
Selling, general and administrative expenses
 
 

 
 
(50,922
)
 
(4,062
)
 
Pension curtailment loss
Income (loss) from discontinued operations, net of tax
 
 
(1,105
)
 
 

 

 
 
Pension curtailment loss
Selling, general and administrative expenses
 
 
(566
)
 
 

 

 
 
Total before tax
 
 
(45,757
)
 
 
(118,718
)
 
(69,066
)
 
 
Tax benefit
 
 
17,039

 
 
44,863

 
26,889

 
 
Net of tax
 
 
(28,718
)
 
 
(73,855
)
 
(42,177
)
 
Gains (losses) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Net sales
 
 
33,641

 
 
28,798

 
(68,543
)
 
Foreign exchange contracts
Cost of goods sold
 
 
610

 
 
84,613

 
132,432

 
Foreign exchange contracts
Selling, general and administrative expenses
 
 
(3,610
)
 
 
(4,314
)
 
(1,885
)
 
 
Foreign exchange contracts
Other income (expense), net
 
 
(1,851
)
 
 
2,864

 
7,267

 
Interest rate contracts
Interest expense
 
 
(4,723
)
 
 
(4,504
)
 
(4,295
)
 
 
Total before tax
 
 
24,067

 
 
107,457

 
64,976

 
 
Tax expense
 
 
(3,344
)
 
 
(35,092
)
 
(25,404
)
 
 
Net of tax
 
 
20,723

 
 
72,365

 
39,572

 
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
 
 
$
(7,995
)
 
 
$
(1,490
)
 
$
(1,891
)
(a) 
These accumulated OCI components are included in the computation of net periodic pension cost (refer to Note N for additional details).