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. 28, 2019
Equity [Abstract]  
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Common Stock

During the nine months ended December 2019, the Company purchased 5.8 million shares of Common Stock in open market transactions for $500.0 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 2019, VF restored 5.8 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 2019, March 2019 or December 2018. 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.
Prior to March 2019, VF Common Stock was also held by the Company’s deferred compensation plans and was treated as treasury shares for financial reporting purposes. As of December 2019, there were no shares held in the Company's deferred compensation plans.

Balances related to shares held for deferred compensation plans were as follows:
(In thousands, except share amounts)
 
December 2019
 
 
March 2019
 
December 2018
Shares held for deferred compensation plans
 

 
 

 
147,464

Cost of shares held for deferred compensation plans
 
$

 
 
$

 
$
2,126



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 2019
 
 
March 2019
 
December 2018
Foreign currency translation and other
 
$
(663,319
)
 
 
$
(725,679
)
 
$
(737,127
)
Defined benefit pension plans
 
(249,530
)
 
 
(243,184
)
 
(219,644
)
Derivative financial instruments
 
17,477

 
 
66,788

 
70,206

Accumulated other comprehensive income (loss)
 
$
(895,372
)
 
 
$
(902,075
)
 
$
(886,565
)

The changes in accumulated OCI, net of related taxes, were as follows:
 
Three Months Ended December 2019
 
(In thousands)
Foreign Currency Translation and Other
 
Defined Benefit Pension Plans
 
Derivative Financial Instruments
 
Total
 
Balance, September 2019
$
(715,286
)
 
$
(298,326
)
 
$
82,887

 
$
(930,725
)
 
Other comprehensive income (loss) before reclassifications
51,967

 
26,827

 
(46,536
)
 
32,258

 
Amounts reclassified from accumulated other comprehensive income (loss)

 
21,969

 
(18,874
)
 
3,095

 
Net other comprehensive income (loss)
51,967

 
48,796

 
(65,410
)
 
35,353

 
Balance, December 2019
$
(663,319
)
 
$
(249,530
)
 
$
17,477

 
$
(895,372
)
 
 
 
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
)
 
Nine Months Ended December 2019
 
In thousands
Foreign Currency Translation and Other
 
Defined Benefit Pension Plans
 
Derivative Financial Instruments
 
Total
 
Balance, Balance, March 2019
$
(725,679
)
 
$
(243,184
)
 
$
66,788

 
$
(902,075
)
 
Adoption of new accounting standard, ASU 2018-02
(9,088
)
 
(50,402
)
 
(2,371
)
 
(61,861
)
 
Other comprehensive income (loss) before reclassifications
(11,646
)
 
15,108

 
8,712

 
12,174

 
Amounts reclassified from accumulated other comprehensive income (loss)

 
28,154

 
(47,057
)
 
(18,903
)
 
Spin-off of Jeans Business
83,094

 
794

 
(8,595
)
 
75,293

 
Net other comprehensive income (loss)
62,360

 
(6,346
)
 
(49,311
)
 
6,703

 
Balance, December 2019
$
(663,319
)
 
$
(249,530
)
 
$
17,477

 
$
(895,372
)
 
 
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
)
Reclassifications out of accumulated OCI were 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Amortization of defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net deferred actuarial losses
Other income (expense), net
 
 
$
(4,203
)
 
 
$
(6,676
)
 
 
$
(12,236
)
 
 
$
(22,153
)
 
Deferred prior service (costs) credits
Other income (expense), net
 
 
(13
)
 
 
58

 
 
(38
)
 
 
(552
)
 
Pension curtailment losses and settlement charges
Other income (expense), net
 
 
(24,943
)
 
 
(662
)
 
 
(25,462
)
 
 
(18,329
)
 
Total before tax
 
 
 
(29,159
)
 
 
(7,280
)
 
 
(37,736
)
 
 
(41,034
)
 
Tax benefit
 
 
 
7,190

 
 
1,950

 
 
9,582

 
 
10,937

 
Net of tax
 
 
 
(21,969
)
 
 
(5,330
)
 
 
(28,154
)
 
 
(30,097
)
 
Gains (losses) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Net sales
 
 
(5,507
)
 
 
772

 
 
(11,226
)
 
 
6,244

 
Foreign exchange contracts
Cost of goods sold
 
 
27,157

 
 
(4,570
)
 
 
60,989

 
 
(31,146
)
 
Foreign exchange contracts
Selling, general and administrative expenses
 
 
1,231

 
 
(1,020
)
 
 
3,329

 
 
(5,240
)
 
Foreign exchange contracts
Other income (expense), net
 
 
1,006

 
 
690

 
 
7,574

 
 
(1,673
)
 
Interest rate contracts
Interest expense
 
 
(1,324
)
 
 
(1,263
)
 
 
(3,920
)
 
 
(3,739
)
 
Total before tax
 
 
 
22,563

 
 
(5,391
)
 
 
56,746

 
 
(35,554
)
 
Tax (expense) benefit
 
 
 
(3,689
)
 
 
889

 
 
(9,689
)
 
 
2,846

 
Net of tax
 
 
 
18,874

 
 
(4,502
)
 
 
47,057

 
 
(32,708
)
 
Total reclassifications for the period, net of tax
 
 
$
(3,095
)
 
 
$
(9,832
)
 
 
$
18,903

 
 
$
(62,805
)