| 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 ֱ’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, ֱ 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 $0.25 per share stated value of Common Stock is deducted from retained earnings.
Prior to March 2019, ֱ Common Stock was also held by the Company’s deferred compensation plans and was treated as treasury shares for financial reporting purposes. As of December 2019, there were no shares held in the Company's deferred compensation plans.
Balances related to shares held for deferred compensation plans were as follows:
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(In thousands, except share amounts) |
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December 2019 |
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March 2019 |
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December 2018 |
Shares held for deferred compensation plans |
|
— |
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— |
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|
147,464 |
|
Cost of shares held for deferred compensation plans |
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$ |
— |
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$ |
— |
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$ |
2,126 |
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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. ֱ’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) |
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December 2019 |
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March 2019 |
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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:
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Three Months Ended December 2019 |
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(In thousands) |
Foreign Currency Translation and Other |
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Defined Benefit PensionPlans |
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Derivative Financial Instruments |
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Total |
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Balance, September 2019 |
$ |
(715,286 |
) |
|
$ |
(298,326 |
) |
|
$ |
82,887 |
|
|
$ |
(930,725 |
) |
|
Other comprehensive income (loss) before reclassifications |
51,967 |
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|
26,827 |
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|
(46,536 |
) |
|
32,258 |
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|
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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|
21,969 |
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|
(18,874 |
) |
|
3,095 |
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Net other comprehensive income (loss) |
51,967 |
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|
48,796 |
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|
(65,410 |
) |
|
35,353 |
|
|
Balance, December 2019 |
$ |
(663,319 |
) |
|
$ |
(249,530 |
) |
|
$ |
17,477 |
|
|
$ |
(895,372 |
) |
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Three Months Ended December 2018 |
(In thousands) |
Foreign Currency Translation and Other |
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Defined Benefit PensionPlans |
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Derivative Financial Instruments |
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Total |
Balance, September 2018 |
$ |
(665,962 |
) |
|
$ |
(226,039 |
) |
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$ |
29,085 |
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|
$ |
(862,916 |
) |
Other comprehensive income (loss) before reclassifications |
(71,165 |
) |
|
1,065 |
|
|
36,619 |
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|
(33,481 |
) |
Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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|
5,330 |
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|
4,502 |
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|
9,832 |
|
Net other comprehensive income (loss) |
(71,165 |
) |
|
6,395 |
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|
41,121 |
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|
(23,649 |
) |
Balance, December 2018 |
$ |
(737,127 |
) |
|
$ |
(219,644 |
) |
|
$ |
70,206 |
|
|
$ |
(886,565 |
) |
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Nine Months Ended December 2019 |
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In thousands |
Foreign Currency Translation and Other |
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Defined Benefit PensionPlans |
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Derivative Financial Instruments |
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Total |
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Balance, Balance, March 2019 |
$ |
(725,679 |
) |
|
$ |
(243,184 |
) |
|
$ |
66,788 |
|
|
$ |
(902,075 |
) |
|
Adoption of new accounting standard, ASU 2018-02 |
(9,088 |
) |
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(50,402 |
) |
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(2,371 |
) |
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(61,861 |
) |
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Other comprehensive income (loss) before reclassifications |
(11,646 |
) |
|
15,108 |
|
|
8,712 |
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|
12,174 |
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Amounts reclassified from accumulated other comprehensive income (loss) |
— |
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|
28,154 |
|
|
(47,057 |
) |
|
(18,903 |
) |
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Spin-off of Jeans Business |
83,094 |
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|
794 |
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|
(8,595 |
) |
|
75,293 |
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Net other comprehensive income (loss) |
62,360 |
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|
(6,346 |
) |
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(49,311 |
) |
|
6,703 |
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Balance, December 2019 |
$ |
(663,319 |
) |
|
$ |
(249,530 |
) |
|
$ |
17,477 |
|
|
$ |
(895,372 |
) |
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Nine Months Ended December 2018 |
In thousands |
Foreign Currency Translation and Other |
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Defined Benefit PensionPlans |
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Derivative Financial Instruments |
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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 |
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|
62,805 |
|
Net other comprehensive income (loss) |
(260,258 |
) |
|
69,974 |
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|
167,749 |
|
|
(22,535 |
) |
Balance, December 2018 |
$ |
(737,127 |
) |
|
$ |
(219,644 |
) |
|
$ |
70,206 |
|
|
$ |
(886,565 |
) |
Reclassifications out of accumulated OCI were as follows:
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(In thousands)
Details About Accumulated Other Comprehensive Income (Loss) Components
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AffectedLineIteminthe Consolidated Statements of Income |
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Three Months Ended December |
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Nine Months Ended December |
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2019 |
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2018 |
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2019 |
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2018 |
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Amortization of defined benefit pension plans: |
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Net deferred actuarial losses |
Other income (expense), net |
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$ |
(4,203 |
) |
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$ |
(6,676 |
) |
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$ |
(12,236 |
) |
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$ |
(22,153 |
) |
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Deferred prior service (costs) credits |
Other income (expense), net |
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(13 |
) |
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|
58 |
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(38 |
) |
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|
(552 |
) |
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Pension curtailment losses and settlement charges |
Other income (expense), net |
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(24,943 |
) |
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|
(662 |
) |
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(25,462 |
) |
|
|
(18,329 |
) |
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Totalbeforetax |
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(29,159 |
) |
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|
(7,280 |
) |
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(37,736 |
) |
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(41,034 |
) |
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Taxbenefit |
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7,190 |
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1,950 |
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|
9,582 |
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|
10,937 |
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Net of tax |
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(21,969 |
) |
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(5,330 |
) |
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(28,154 |
) |
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(30,097 |
) |
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Gains (losses) on derivative financial instruments: |
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Foreign exchange contracts |
Net sales |
|
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(5,507 |
) |
|
|
772 |
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|
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(11,226 |
) |
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|
6,244 |
|
|
Foreign exchange contracts |
Costofgoodssold |
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|
27,157 |
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|
(4,570 |
) |
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|
60,989 |
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(31,146 |
) |
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Foreign exchange contracts |
Selling, general and administrative expenses |
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1,231 |
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|
(1,020 |
) |
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|
3,329 |
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(5,240 |
) |
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Foreign exchange contracts |
Otherincome(expense),net |
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|
1,006 |
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|
|
690 |
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|
7,574 |
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|
(1,673 |
) |
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Interest rate contracts |
Interest expense |
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(1,324 |
) |
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|
(1,263 |
) |
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(3,920 |
) |
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|
(3,739 |
) |
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Total before tax |
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22,563 |
|
|
|
(5,391 |
) |
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|
56,746 |
|
|
|
(35,554 |
) |
|
Tax(expense) benefit |
|
|
|
(3,689 |
) |
|
|
889 |
|
|
|
(9,689 |
) |
|
|
2,846 |
|
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Net of tax |
|
|
|
18,874 |
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|
(4,502 |
) |
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|
47,057 |
|
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(32,708 |
) |
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Total reclassifications for the period, net of tax |
|
|
$ |
(3,095 |
) |
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|
$ |
(9,832 |
) |
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|
$ |
18,903 |
|
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|
$ |
(62,805 |
) |
|