| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
During the six months ended September 2018, the Company did not purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors.
Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no shares held in treasury at the end of September 2018, March 2018 or September 2017. 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 six months ended September 2018, the Company purchased 5,210 shares of Common Stock in open market transactions related to its deferred compensation plans for $0.5 million.
Balances related to shares held for deferred compensation plans were as follows:
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(In thousands, except share amounts) |
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September 2018 |
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|
March 2018 |
|
September 2017 |
Shares held for deferred compensation plans |
|
169,114 |
|
|
|
284,785 |
|
|
320,615 |
|
Cost of shares held for deferred compensation plans |
|
$ |
2,561 |
|
|
|
$ |
3,621 |
|
|
$ |
3,973 |
|
Accumulated Other Comprehensive Income (Loss)
Comprehensive income consists of net income and specified components of other comprehensive income (“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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(In thousands) |
|
September 2018 |
|
|
March 2018 |
|
September 2017 |
Foreign currency translation and other |
|
$ |
(665,962 |
) |
|
|
$ |
(476,869 |
) |
|
$ |
(567,964 |
) |
Defined benefit pension plans |
|
(226,039 |
) |
|
|
(289,618 |
) |
|
(268,159 |
) |
Derivative financial instruments |
|
29,085 |
|
|
|
(97,543 |
) |
|
(78,773 |
) |
Accumulated other comprehensive income (loss) |
|
$ |
(862,916 |
) |
|
|
$ |
(864,030 |
) |
|
$ |
(914,896 |
) |
The changes in accumulated OCI, net of related taxes, are as follows:
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Three Months Ended September 2018 |
(In thousands) |
Foreign Currency Translation and Other |
|
Defined Benefit Pension Plans |
|
Derivative Financial Instruments |
|
Total |
Balance, June 2018 |
$ |
(651,739 |
) |
|
$ |
(230,517 |
) |
|
$ |
178 |
|
|
$ |
(882,078 |
) |
Other comprehensive income (loss) before reclassifications |
(14,223 |
) |
|
(1,416 |
) |
|
15,151 |
|
|
(488 |
) |
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
5,894 |
|
|
13,756 |
|
|
19,650 |
|
Net other comprehensive income (loss) |
(14,223 |
) |
|
4,478 |
|
|
28,907 |
|
|
19,162 |
|
Balance, September 2018 |
$ |
(665,962 |
) |
|
$ |
(226,039 |
) |
|
$ |
29,085 |
|
|
$ |
(862,916 |
) |
|
|
|
|
|
|
|
|
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|
Three Months Ended September 2017 |
(In thousands) |
Foreign Currency Translation and Other |
|
Defined Benefit Pension Plans |
|
Derivative Financial Instruments |
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Total |
Balance, June 2017 |
$ |
(633,209 |
) |
|
$ |
(275,089 |
) |
|
$ |
(22,299 |
) |
|
$ |
(930,597 |
) |
Other comprehensive income (loss) before reclassifications |
65,245 |
|
|
— |
|
|
(51,826 |
) |
|
13,419 |
|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
6,930 |
|
|
(4,648 |
) |
|
2,282 |
|
Net other comprehensive income (loss) |
65,245 |
|
|
6,930 |
|
|
(56,474 |
) |
|
15,701 |
|
Balance, September 2017 |
$ |
(567,964 |
) |
|
$ |
(268,159 |
) |
|
$ |
(78,773 |
) |
|
$ |
(914,896 |
) |
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|
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|
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|
Six Months Ended September 2018 |
(In thousands) |
Foreign Currency Translation and Other |
|
Defined Benefit Pension Plans |
|
Derivative Financial Instruments |
|
Total |
Balance, March 2018 |
$ |
(476,869 |
) |
|
$ |
(289,618 |
) |
|
$ |
(97,543 |
) |
|
$ |
(864,030 |
) |
Other comprehensive income (loss) before reclassifications |
(189,093 |
) |
|
38,812 |
|
|
98,422 |
|
|
(51,859 |
) |
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
24,767 |
|
|
28,206 |
|
|
52,973 |
|
Net other comprehensive income (loss) |
(189,093 |
) |
|
63,579 |
|
|
126,628 |
|
|
1,114 |
|
Balance, September 2018 |
$ |
(665,962 |
) |
|
$ |
(226,039 |
) |
|
$ |
29,085 |
|
|
$ |
(862,916 |
) |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
Six Months Ended September 2017 |
(In thousands) |
Foreign Currency Translation and Other |
|
Defined Benefit Pension Plans |
|
Derivative Financial Instruments |
|
Total |
Balance, March 2017 |
$ |
(742,281 |
) |
|
$ |
(281,721 |
) |
|
$ |
35,962 |
|
|
$ |
(988,040 |
) |
Other comprehensive income (loss) before reclassifications |
174,317 |
|
|
— |
|
|
(100,302 |
) |
|
74,015 |
|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
|
|
13,562 |
|
|
(14,433 |
) |
|
(871 |
) |
Net other comprehensive income (loss) |
174,317 |
|
|
13,562 |
|
|
(114,735 |
) |
|
73,144 |
|
Balance, September 2017 |
$ |
(567,964 |
) |
|
$ |
(268,159 |
) |
|
$ |
(78,773 |
) |
|
$ |
(914,896 |
) |
Reclassifications out of accumulated OCI are as follows:
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(In thousands)
Details About Accumulated Other Comprehensive Income (Loss) Components
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Affected Line Item in the Consolidated Statements of Income |
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Three Months Ended September |
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Six Months Ended September |
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2018 |
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2017 |
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2018 |
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|
2017 |
| |
Amortization of defined benefit pension plans: |
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|
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| |
Net deferred actuarial losses |
Other income (expense), net |
|
|
$ |
(6,655 |
) |
|
|
$ |
(10,030 |
) |
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|
$ |
(15,477 |
) |
|
|
$ |
(20,032 |
) |
| |
Deferred prior service (costs) credits |
Other income (expense), net |
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|
59 |
|
|
|
(643 |
) |
|
|
(610 |
) |
|
|
(1,288 |
) |
| |
Pension curtailment losses and settlement charges |
Other income (expense), net |
|
|
(1,342 |
) |
|
|
— |
|
|
|
(17,667 |
) |
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|
— |
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| |
Total before tax |
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|
(7,938 |
) |
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|
(10,673 |
) |
|
|
(33,754 |
) |
|
|
(21,320 |
) |
| |
Tax benefit |
|
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|
2,044 |
|
|
|
3,743 |
|
|
|
8,987 |
|
|
|
7,758 |
|
| |
Net of tax |
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|
|
(5,894 |
) |
|
|
(6,930 |
) |
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|
(24,767 |
) |
|
|
(13,562 |
) |
| |
Gains (losses) on derivative financial instruments: |
|
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| |
Foreign exchange contracts |
Net sales |
|
|
4,527 |
|
|
|
11,614 |
|
|
|
5,472 |
|
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|
18,661 |
|
| |
Foreign exchange contracts |
Cost of goods sold |
|
|
(14,638 |
) |
|
|
(4,164 |
) |
|
|
(26,576 |
) |
|
|
1,489 |
|
| |
Foreign exchange contracts |
Selling, general and administrative expenses |
|
|
(1,522 |
) |
|
|
(882 |
) |
|
|
(4,220 |
) |
|
|
(1,125 |
) |
| |
Foreign exchange contracts |
Other income (expense), net |
|
|
(970 |
) |
|
|
(774 |
) |
|
|
(2,363 |
) |
|
|
(737 |
) |
| |
Interest rate contracts |
Interest expense |
|
|
(1,243 |
) |
|
|
(1,185 |
) |
|
|
(2,476 |
) |
|
|
(2,360 |
) |
| |
Total before tax |
|
|
|
(13,846 |
) |
|
|
4,609 |
|
|
|
(30,163 |
) |
|
|
15,928 |
|
| |
Tax benefit (expense) |
|
|
|
90 |
|
|
|
39 |
|
|
|
1,957 |
|
|
|
(1,495 |
) |
| |
Net of tax |
|
|
|
(13,756 |
) |
|
|
4,648 |
|
|
|
(28,206 |
) |
|
|
14,433 |
|
| |
Total reclassifications for the period, net of tax |
|
|
$ |
(19,650 |
) |
|
|
$ |
(2,282 |
) |
|
|
$ |
(52,973 |
) |
|
|
$ |
871 |
|
|