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STOCKHOLDERS' EQUITY
 6 Months Ended
Jul. 04, 2015
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 Year To Date Period, the Company effectively retired 2.5 million shares of common stock repurchased under its repurchase programs. The effective retirement of repurchased common stock decreased common stock by approximately $25,500, additional paid-in capital by $0.6 million, retained earnings by $216.4 million and treasury stock by $217.0 million. At January 3, 2015 and July 4, 2015, all treasury stock had been effectively retired. As of July 4, 2015, the Company had $841.7 million of repurchase authorizations remaining under its combined repurchase programs.

 

The following tables reflect the Company’s common stock repurchase activity for the periods indicated (in millions):

 

 

 

 

 

 

 

For the 13 Weeks Ended

 

For the 13 Weeks Ended

 

 

 

 

 

 

 

July 4, 2015

 

July 5, 2014

 

Fiscal Year
Authorized

 

Dollar Value
Authorized

 

Termination Date

 

Number of
Shares
Repurchased

 

Dollar Value
Repurchased

 

Number of
Shares
Repurchased

 

Dollar Value
Repurchased

 

2014

 

$
1,000.0 

 

December 2018

 
1.3 

 

$
102.5 

 
0.0 

 

$
0.0 

 

2012

 

$
1,000.0 

 

December 2016 (1)

 
0.0 

 

$
0.0 

 
0.6 

 

$
67.3 

 

2010

 

$
30.0 

 

None

 
0.0 

 

$
0.0 

 
0.0 

 

$
0.0 

 

 

 

 

 

 

 

 

For the 26 Weeks Ended

 

For the 27 Weeks Ended

 

 

 

 

 

 

 

July 4, 2015

 

July 5, 2014

 

Fiscal Year
Authorized

 

Dollar Value
Authorized

 

Termination Date

 

Number of
Shares
Repurchased

 

Dollar Value
Repurchased

 

Number of
Shares
Repurchased

 

Dollar Value
Repurchased

 

2014

 

$
1,000.0 

 

December 2018

 
2.2 

 

$
188.2 

 
0.0 

 

$
0.0 

 

2012

 

$
1,000.0 

 

December 2016 (1)

 
0.3 

 

$
28.8 

 
1.6 

 

$
184.6 

 

2010

 

$
30.0 

 

None

 
0.0 

 

$
0.0 

 
0.0 

 

$
0.0 

 

 

 

(1) In the first quarter of fiscal year 2015, 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 January 3, 2015

 

$
977,860

 

$
5,941

 

$
983,801

 

Net income

 
92,718

 
4,740

 
97,458

 

Currency translation adjustment

 
(27,947

)
0

 
(27,947

)

Derivative instruments-net change

 
(185

)
0

 
(185

)

Common stock issued upon exercise of stock options

 
582

 
0

 
582

 

Tax expense derived from stock-based compensation

 
(699

)
0

 
(699

)

Distribution of noncontrolling interest earnings

 
0

 
(5,056

)
(5,056

)

Business acquisition

 
0

 
5,831

 
5,831

 

Acquisition of common stock

 
(218,659

)
0

 
(218,659

)

Stock-based compensation expense

 
9,276

 
0

 
9,276

 

 

 

 

 

 

 

 

 

Balance at July 4, 2015

 

$
832,946

 

$
11,456

 

$
844,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
118,860

 
5,201

 
124,061

 

Currency translation adjustment

 
399

 
0

 
399

 

Derivative instruments-net change

 
(412

)
0

 
(412

)

Common stock issued upon exercise of stock options

 
1,508

 
0

 
1,508

 

Tax benefit derived from stock-based compensation

 
950

 
0

 
950

 

Distribution of noncontrolling interest earnings and other.

 
0

 
(5,392

)
(5,392

)

Pension plan activity

 
(3,293

)
0

 
(3,293

)

Acquisition of common stock

 
(187,158

)
0

 
(187,158

)

Stock-based compensation expense

 
9,637

 
0

 
9,637

 

 

 

 

 

 

 

 

 

Balance at July 5, 2014

 

$
1,009,168

 

$
6,499

 

$
1,015,667