Quarterly report pursuant to Section 13 or 15(d)

CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
9 Months Ended
Dec. 29, 2018
Equity [Abstract]  
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Common Stock

During the nine months ended December 2018, the Company purchased 1.9 million shares of Common Stock in open market transactions for $150.0 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 the nine months ended December 2018, VF restored 2.0 million treasury shares 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 December 2018, March 2018 or December 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 nine months ended December 2018, the Company purchased 7,680 shares of Common Stock in open market transactions related to its deferred compensation plans for $0.7 million.

Balances related to shares held for deferred compensation plans were as follows:
(In thousands, except share amounts)
 
December 2018
 
 
March 2018
 
December 2017
Shares held for deferred compensation plans
 
147,464

 
 
284,785

 
317,515

Cost of shares held for deferred compensation plans
 
$
2,126

 
 
$
3,621

 
$
3,901



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:
(In thousands)
 
December 2018
 
 
March 2018
 
December 2017
Foreign currency translation and other
 
$
(737,127
)
 
 
$
(476,869
)
 
$
(546,201
)
Defined benefit pension plans
 
(219,644
)
 
 
(289,618
)
 
(291,949
)
Derivative financial instruments
 
70,206

 
 
(97,543
)
 
(87,990
)
Accumulated other comprehensive income (loss)
 
$
(886,565
)
 
 
$
(864,030
)
 
$
(926,140
)

The changes in accumulated OCI, net of related taxes, were as follows:
 
Three Months Ended December 2018
 
(In thousands)
Foreign Currency Translation and Other
 
Defined Benefit Pension Plans
 
Derivative Financial Instruments
 
Total
 
Balance, September 2018
$
(665,962
)
 
$
(226,039
)
 
$
29,085

 
$
(862,916
)
 
Other comprehensive income (loss) before reclassifications
(71,165
)
 
1,065

 
36,619

 
(33,481
)
 
Amounts reclassified from accumulated other comprehensive income (loss)

 
5,330

 
4,502

 
9,832

 
Net other comprehensive income (loss)
(71,165
)
 
6,395

 
41,121

 
(23,649
)
 
Balance, December 2018
$
(737,127
)
 
$
(219,644
)
 
$
70,206

 
$
(886,565
)
 
 

 
Three Months Ended December 2017
 
(In thousands)
Foreign Currency Translation and Other
 
Defined Benefit Pension Plans
 
Derivative Financial Instruments
 
Total
 
Balance, September 2017
$
(567,964
)
 
$
(268,159
)
 
$
(78,773
)
 
$
(914,896
)
 
Other comprehensive income (loss) before reclassifications
21,763

 
(30,223
)
 
(15,244
)
 
(23,704
)
 
Amounts reclassified from accumulated other comprehensive income (loss)

 
6,433

 
6,027

 
12,460

 
Net other comprehensive income (loss)
21,763

 
(23,790
)
 
(9,217
)
 
(11,244
)
 
Balance, December 2017
$
(546,201
)
 
$
(291,949
)
 
$
(87,990
)
 
$
(926,140
)
 
 

 
Nine Months Ended December 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
(260,258
)
 
39,877

 
135,041

 
(85,340
)
 
Amounts reclassified from accumulated other comprehensive income (loss)

 
30,097

 
32,708

 
62,805

 
Net other comprehensive income (loss)
(260,258
)
 
69,974

 
167,749

 
(22,535
)
 
Balance, December 2018
$
(737,127
)
 
$
(219,644
)
 
$
70,206

 
$
(886,565
)
 

 
Nine Months Ended December 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
196,080

 
(30,223
)
 
(115,546
)
 
50,311

 
Amounts reclassified from accumulated other comprehensive income (loss)

 
19,995

 
(8,406
)
 
11,589

 
Net other comprehensive income (loss)
196,080

 
(10,228
)
 
(123,952
)
 
61,900

 
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
 
 
Three Months Ended December
 
 
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Amortization of defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net deferred actuarial losses
Other income (expense), net
 
 
$
(6,676
)
 
 
$
(10,026
)
 
 
$
(22,153
)
 
 
$
(30,058
)
 
Deferred prior service (costs) credits
Other income (expense), net
 
 
58

 
 
(646
)
 
 
(552
)
 
 
(1,934
)
 
Pension curtailment losses and settlement charges
Other income (expense), net
 
 
(662
)
 
 
(566
)
 
 
(18,329
)
 
 
(566
)
 
Total before tax
 
 
 
(7,280
)
 
 
(11,238
)
 
 
(41,034
)
 
 
(32,558
)
 
Tax benefit
 
 
 
1,950

 
 
4,805

 
 
10,937

 
 
12,563

 
Net of tax
 
 
 
(5,330
)
 
 
(6,433
)
 
 
(30,097
)
 
 
(19,995
)
 
Gains (losses) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Net sales
 
 
772

 
 
8,567

 
 
6,244

 
 
27,228

 
Foreign exchange contracts
Cost of goods sold
 
 
(4,570
)
 
 
(12,153
)
 
 
(31,146
)
 
 
(10,664
)
 
Foreign exchange contracts
Selling, general and administrative expenses
 
 
(1,020
)
 
 
(2,398
)
 
 
(5,240
)
 
 
(3,523
)
 
Foreign exchange contracts
Other income (expense), net
 
 
690

 
 
(1,163
)
 
 
(1,673
)
 
 
(1,900
)
 
Interest rate contracts
Interest expense
 
 
(1,263
)
 
 
(1,205
)
 
 
(3,739
)
 
 
(3,565
)
 
Total before tax
 
 
 
(5,391
)
 
 
(8,352
)
 
 
(35,554
)
 
 
7,576

 
Tax benefit
 
 
 
889

 
 
2,325

 
 
2,846

 
 
830

 
Net of tax
 
 
 
(4,502
)
 
 
(6,027
)
 
 
(32,708
)
 
 
8,406

 
Total reclassifications for the period, net of tax
 
 
$
(9,832
)
 
 
$
(12,460
)
 
 
$
(62,805
)
 
 
$
(11,589
)