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STOCKHOLDERS' EQUITY
 3 Months Ended
Apr. 05, 2014
STOCKHOLDERS' EQUITY  
STOCKHOLDERS' EQUITY

6. STOCKHOLDERS’ EQUITY

 

Common Stock Repurchase Programs. Purchases of the Company’s common stock are made from time to time pursuant to its repurchase programs, subject to market conditions and at prevailing market prices, through the open market. Repurchased shares of common stock are recorded at cost and become authorized but unissued shares which may be issued in the future for general corporate or other purposes. The Company may terminate or limit its stock repurchase program at any time. In the event the repurchased shares are cancelled, the Company accounts for retirements by allocating the repurchase price to common stock, additional paid-in capital and retained earnings.  The repurchase price allocation is based upon the equity contribution associated with historical issuances. The repurchase programs are conducted pursuant to Rule 10b-18 of the Securities Exchange Act of 1934.

 

During the First Quarter, the Company effectively retired 1.0 million shares of common stock repurchased under its repurchase programs. The effective retirement of repurchased common stock decreased common stock by $10,000, additional paid-in capital by $0.8 million, retained earnings by $116.5 million and treasury stock by $117.3 million. At December 28, 2013 and April 5, 2014, all treasury stock had been effectively retired. As of April 5, 2014, the Company had $376.4 million of repurchase authorizations remaining under its combined repurchase plans.

 

The following table reflects the Company’s common stock repurchase activity for the period indicated (in millions):

 

 

 

 

 

 

 

For the 14 Weeks Ended 
April 5, 2014

 

For the 13 Weeks Ended 
March 30, 2013

 

Fiscal Year Authorized

 

Dollar Value 
Authorized

 

Termination Date

 

Number of 
Shares 
Repurchased

 

Dollar Value 
Repurchased

 

Number of 
Shares 
Repurchased

 

Dollar Value 
Repurchased

 

2012

 

$

1,000.0

 

December 2016

 

1.0

 

$

117.3

 

0.2

 

$

18.0

 

2010

 

$

30.0

 

None

 

0.0

 

$

0.0

 

0.0

 

$

0.0

 

2010

 

$

750.0

 

December 2013 (1)

 

0.0

 

$

0.0

 

0.4

 

$

38.6

 

 

(1)         In the Prior Year Quarter, the Company completed this repurchase plan.

 

Controlling and Noncontrolling Interest. The following tables summarize the changes in equity attributable to controlling and noncontrolling interest (in thousands):

 

 

 

Fossil Group,

 

 

 

 

 

 

 

Inc.

 

 

 

Total

 

 

 

Stockholders’

 

Noncontrolling

 

Stockholders’

 

 

 

Equity

 

Interest

 

Equity

 

Balance at December 28, 2013

 

$

1,068,677

 

$

6,690

 

$

1,075,367

 

Net income

 

66,343

 

2,818

 

69,161

 

Currency translation adjustment

 

(1,125

)

0

 

(1,125

)

Derivative instruments - net change

 

239

 

0

 

239

 

Common stock issued upon exercise of stock options and stock appreciation rights

 

759

 

0

 

759

 

Tax benefit derived from stock-based compensation

 

938

 

0

 

938

 

Distribution of noncontrolling interest earnings and other

 

0

 

(5,391

)

(5,391

)

Acquisition of common stock

 

(119,715

)

0

 

(119,715

)

Stock-based compensation expense

 

4,978

 

0

 

4,978

 

Balance at April 5, 2014

 

$

1,021,094

 

$

4,117

 

$

1,025,211

 

 

 

 

Fossil Group,

 

 

 

 

 

 

 

Inc.

 

 

 

Total

 

 

 

Stockholders’

 

Noncontrolling

 

Stockholders’

 

 

 

Equity

 

Interest

 

Equity

 

Balance at December 29, 2012

 

$

1,233,535

 

$

6,929

 

$

1,240,464

 

Net income

 

72,186

 

1,794

 

73,980

 

Currency translation adjustment

 

(19,837

)

0

 

(19,837

)

Unrealized loss on securities available for sale

 

(71

)

0

 

(71

)

Forward contracts hedging intercompany foreign currency payments - change in fair values

 

3,391

 

0

 

3,391

 

Common stock issued upon exercise of stock options and stock appreciation rights

 

1,991

 

0

 

1,991

 

Tax benefit derived from stock-based compensation

 

4,082

 

0

 

4,082

 

Distribution of noncontrolling interest earnings

 

0

 

(4

)

(4

)

Acquisition of common stock

 

(61,188

)

0

 

(61,188

)

Stock-based compensation expense

 

2,546

 

0

 

2,546

 

Balance at March 30, 2013

 

$

1,236,635

 

$

8,719

 

$

1,245,354