STOCKHOLDERS' EQUITY

3 Months Ended

Apr. 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 First Quarter, the Company effectively retired 1.3 million shares of common stock repurchased under its repurchase programs. The effective retirement of repurchased common stock decreased common stock by approximately $13,000, additional paid-in capital by $0.4 million, retained earnings by $114.1 million and treasury stock by $114.5 million. At January 3, 2105 and April 4, 2015, all treasury stock had been effectively retired. As of April 4, 2015, the Company had $944.2 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 14 Weeks Ended
					April 4, 2015			April 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		1.0	$	85.7	0.0	$	0.0
2012	$	1,000.0	December 2016	(1)	0.3	$	28.8	1.0	$	117.3
2010	$	30.0	None		0.0	$	0.0	0.0	$	0.0

(1)  In the First Quarter, we 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	38,070			2,568			40,638
Currency translation adjustment	(33,506		)	0			(33,506		)
Derivative instruments-net change	61			0			61
Common stock issued upon exercise of stock options	444			0			444
Tax expense derived from stock-based compensation	(306		)	0			(306		)
Distribution of noncontrolling interest earnings	0			(5,056		)	(5,056		)
Business acquisition	0			5,886			5,886
Acquisition of common stock	(116,047		)	0			(116,047		)
Stock-based compensation expense	4,346			0			4,346
Balance at April 4, 2015	$	870,922		$	9,339		$	880,261

	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	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