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

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2023

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


(In thousands)	September 2023		December 2022		September 2022
Foreign currency translation	$	(101,526)	$	(107,462)	$	(121,582)
Defined benefit pension plans	2,136		2,243		(2,160)
Derivative financial instruments	28,557		25,554		31,459
Accumulated other comprehensive loss	$	(70,833)	$	(79,665)	$	(92,283)

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


	Three Months Ended September 2023

(In thousands)	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments		Total

Balance, June 2023	$	(94,610)	$	2,173	$	32,344	$	(60,093)
Other comprehensive income (loss) due to gains (losses) arising before reclassifications	(6,916)		—		5,176		(1,740)
Reclassifications to net income of previously deferred (gains) losses	—		(37)		(8,963)		(9,000)
Net other comprehensive income (loss)	(6,916)		(37)		(3,787)		(10,740)
Balance, September 2023	$	(101,526)	$	2,136	$	28,557	$	(70,833)


	Three Months Ended September 2022

(In thousands)	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments		Total
Balance, June 2022	$	(110,014)	$	(2,166)	$	20,223	$	(91,957)
Other comprehensive income (loss) due to gains (losses) arising before reclassifications	(11,568)		—		15,078		3,510
Reclassifications to net income of previously deferred (gains) losses	—		6		(3,842)		(3,836)
Net other comprehensive income (loss)	(11,568)		6		11,236		(326)
Balance, September 2022	$	(121,582)	$	(2,160)	$	31,459	$	(92,283)



	Nine Months Ended September 2023

(In thousands)	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments		Total

Balance, December 2022	$	(107,462)	$	2,243	$	25,554	$	(79,665)
Other comprehensive income (loss) due to gains (losses) arising before reclassifications	5,936		—		24,910		30,846
Reclassifications to net income of previously deferred (gains) losses	—		(107)		(21,907)		(22,014)
Net other comprehensive income (loss)	5,936		(107)		3,003		8,832
Balance, September 2023	$	(101,526)	$	2,136	$	28,557	$	(70,833)



	Nine Months Ended September 2022

(In thousands)	Foreign Currency Translation		Defined Benefit Pension Plans		Derivative Financial Instruments		Total
Balance, December 2021	$	(93,125)	$	(2,177)	$	2,546	$	(92,756)
Other comprehensive income (loss) due to gains (losses) arising before reclassifications	(28,457)		—		35,444		6,987
Reclassifications to net income of previously deferred (gains) losses	—		17		(6,531)		(6,514)
Net other comprehensive income (loss)	(28,457)		17		28,913		473
Balance, September 2022	$	(121,582)	$	(2,160)	$	31,459	$	(92,283)

The following table presents reclassifications out of AOCL:


(In thousands)		Three Months Ended September					Nine Months Ended September
Details About Accumulated Other Comprehensive Loss Reclassifications	Affected Line Item in the Financial Statements

			2023		2022			2023		2022
Defined benefit pension plans:
Net change in deferred gains (losses) during the period	Selling, general and administrative expenses		$	49	$	(8)		$	142	$	(23)
Total before tax			49		(8)			142		(23)
Income taxes	Income taxes		(12)		2			(35)		6
Net of tax			37		(6)			107		(17)
Gains (losses) on derivative financial instruments:
Foreign currency exchange contracts	Net revenues		$	(37)	$	(401)		$	(270)	$	(794)
Foreign currency exchange contracts	Cost of goods sold		7,095		4,228			17,343		8,954

Foreign currency exchange contracts	Other expense, net		128		168			424		67
Interest rate swap agreements	Interest expense		2,664		346			7,200		(1,665)
Total before tax			9,850		4,341			24,697		6,562
Income taxes	Income taxes		(887)		(499)			(2,790)		(31)
Net of tax			8,963		3,842			21,907		6,531
Total reclassifications for the period, net of tax			$	9,000	$	3,836		$	22,014	$	6,514