Kontoor Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 27, 2020

The following table presents deferred components of AOCL in equity, net of related taxes:


(In thousands)	June 2020		December 2019		June 2019
Foreign currency translation	$	(108,129)	$	(84,118)	$	(81,841)
Defined benefit pension plans	(2,289)		(2,301)		(1,072)
Derivative financial instruments	(20,880)		6,721		9,225
Accumulated other comprehensive loss	$	(131,298)	$	(79,698)	$	(73,688)

The following tables present changes in AOCL, net of related tax impact:


	Three Months Ended June 2020
	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments
(In thousands)									Total

Balance, March 2020	$	(111,328)	$	(2,272)	$	(19,862)	$	(133,462)
Other comprehensive income (loss) before reclassifications	3,199		(27)		(820)		2,352
Amounts reclassified from accumulated other comprehensive income (loss)	—		10		(198)		(188)
Net other comprehensive (loss) income	3,199		(17)		(1,018)		2,164

Balance, June 2020	$	(108,129)	$	(2,289)	$	(20,880)	$	(131,298)


	Three Months Ended June 2019
	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments
(In thousands)									Total
Balance, March 2019	$	(144,424)	$	—	$	—	$	(144,424)
Other comprehensive income (loss) before reclassifications	4,686		(14)		(2,058)		2,614
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(362)		(362)
Net other comprehensive income (loss)	4,686		(14)		(2,420)		2,252
Amounts transferred from former parent	57,897		(1,058)		11,645		68,484
Balance, June 2019	$	(81,841)	$	(1,072)	$	9,225	$	(73,688)


	Six Months Ended June 2020
	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments
(In thousands)									Total

Balance, December 2019	$	(84,118)	$	(2,301)	$	6,721	$	(79,698)
Other comprehensive income (loss) before reclassifications	(24,011)		(8)		(24,475)		(48,494)
Amounts reclassified from accumulated other comprehensive income (loss)	—		20		(3,126)		(3,106)
Net other comprehensive income (loss)	(24,011)		12		(27,601)		(51,600)
Balance, June 2020	$	(108,129)	$	(2,289)	$	(20,880)	$	(131,298)


	Six Months Ended June 2019
	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments
(In thousands)									Total
Balance, December 2018	$	(145,182)	$	—	$	—	$	(145,182)
Other comprehensive income (loss) before reclassifications	5,444		(14)		(2,058)		3,372
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(362)		(362)
Net other comprehensive income (loss)	5,444		(14)		(2,420)		3,010
Amounts transferred from former parent	57,897		(1,058)		11,645		68,484
Balance, June 2019	$	(81,841)	$	(1,072)	$	9,225	$	(73,688)


(In thousands)		Three Months Ended June													Six Months Ended June

Details About Accumulated Other Comprehensive Loss Reclassifications	Affected Line Item in the Financial Statements
							2020				2019				2020				2019
Defined benefit pension plans:
Net change in deferred actuarial losses	Selling, general and administrative expenses		$	(14)			$	—			$	(28)			$	—



Total before tax			(14)				—				(28)				—
Tax benefit	Income taxes		4				—				8				—
Net of tax			(10)				—				(20)				—
Gains (losses) on derivative financial instruments:
Foreign currency exchange contracts	Net revenues		$	(194)			$	(96)			$	(552)			$	(96)
Foreign currency exchange contracts	Cost of goods sold		1,615				415				5,356				415

Foreign currency exchange contracts	Other expense, net		141				43				137				43
Interest rate swap agreements	Interest expense		(1,349)				—				(1,580)				—
Total before tax			213				362				3,361				362
Tax expense	Income taxes		(15)				—				(235)				—
Net of tax			198				362				3,126				362
Total reclassifications for the period, net of tax					$	188			$	362			$	3,106			$	362