|
Retirement and Savings Benefit Plans (Tables)
|
12 Months Ended |
|
Dec. 28, 2013
|
| Components of Pension Cost |
The components
of pension cost for VF’s defined benefit plans were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
In
thousands |
|
|
Service cost —
benefits earned during the year
|
|
$ |
25,445 |
|
|
$ |
23,198 |
|
|
$ |
20,867 |
|
|
Interest cost on projected
benefit obligations
|
|
|
72,003 |
|
|
|
77,013 |
|
|
|
78,859 |
|
|
Expected return on plan
assets
|
|
|
(94,585 |
) |
|
|
(80,619 |
) |
|
|
(89,689 |
) |
|
Amortization of deferred
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
|
85,356 |
|
|
|
69,744 |
|
|
|
43,088 |
|
|
Deferred prior service
costs
|
|
|
1,270 |
|
|
|
3,357 |
|
|
|
3,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pension
expense
|
|
$ |
89,489 |
|
|
$ |
92,693 |
|
|
$ |
56,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average actuarial
assumptions used to determine pension expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
3.91 |
% |
|
|
4.94 |
% |
|
|
5.40 |
% |
|
Expected long-term return
on plan assets
|
|
|
5.70 |
% |
|
|
6.38 |
% |
|
|
6.10 |
% |
|
Rate of compensation
increase
|
|
|
3.82 |
% |
|
|
3.85 |
% |
|
|
3.80 |
% |
|
| Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations |
The following
provides a reconciliation of the changes in fair value of
VF’s defined benefit plan assets and projected benefit
obligations for each year, and the funded status at the end of each
year:
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
In
thousands |
|
|
Fair value of plan assets,
beginning of year
|
|
$ |
1,332,211 |
|
|
$ |
1,144,178 |
|
|
Actual return on plan
assets
|
|
|
84,882 |
|
|
|
146,079 |
|
|
VF contributions
|
|
|
117,591 |
|
|
|
112,892 |
|
|
Participant
contributions
|
|
|
2,975 |
|
|
|
2,677 |
|
|
Benefits paid
|
|
|
(73,308 |
) |
|
|
(76,813 |
) |
|
Currency
translation
|
|
|
3,175 |
|
|
|
3,198 |
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets,
end of year
|
|
|
1,467,526 |
|
|
|
1,332,211 |
|
|
|
|
|
|
|
|
|
|
|
Projected benefit
obligations, beginning of year
|
|
|
1,815,128 |
|
|
|
1,546,896 |
|
|
Service cost
|
|
|
25,445 |
|
|
|
23,198 |
|
|
Interest cost
|
|
|
72,003 |
|
|
|
77,013 |
|
|
Participant
contributions
|
|
|
2,975 |
|
|
|
2,677 |
|
|
Actuarial (gain)
loss
|
|
|
(178,414 |
) |
|
|
243,766 |
|
|
Benefits paid
|
|
|
(73,308 |
) |
|
|
(76,813 |
) |
|
Plan amendments
|
|
|
21,321 |
|
|
|
(5,518 |
) |
|
Currency
translation
|
|
|
3,551 |
|
|
|
3,909 |
|
|
|
|
|
|
|
|
|
|
|
Projected benefit
obligations, end of year
|
|
|
1,688,701 |
|
|
|
1,815,128 |
|
|
|
|
|
|
|
|
|
|
|
Funded status, end of
year
|
|
$ |
(221,175 |
) |
|
$ |
(482,917 |
) |
|
|
|
|
|
|
|
|
|
Pension
benefits are reported in the balance sheet as a net asset or
liability based on the overfunded or underfunded status of the
defined benefit plans, assessed on a plan-by-plan basis.
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
In
thousands |
|
|
Amounts
included in Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
$ |
2,272 |
|
|
$ |
— |
|
|
Current liabilities (Note
J)
|
|
|
(9,016 |
) |
|
|
(8,742 |
) |
|
Noncurrent liabilities
(Note L)
|
|
|
(214,431 |
) |
|
|
(474,175 |
) |
|
|
|
|
|
|
|
|
|
|
Funded status
|
|
$ |
(221,175 |
) |
|
$ |
(482,917 |
) |
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive (income) loss, pretax:
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
$ |
422,932 |
|
|
$ |
676,373 |
|
|
Deferred prior service
costs
|
|
|
27,594 |
|
|
|
7,525 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
450,526 |
|
|
$ |
683,898 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated benefit
obligations
|
|
$ |
1,610,369 |
|
|
$ |
1,751,741 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average actuarial
assumptions used to determine pension obligations:
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
4.63 |
% |
|
|
3.92 |
% |
|
Rate of compensation
increase
|
|
|
3.39 |
% |
|
|
3.83 |
% |
|
| Fair Value of Investments Held by Pension Plan |
The fair value
of investments held by VF’s defined benefit plans at December
2013 and 2012, by asset class, is summarized below. See Note T for
a description of the three levels of the fair value measurement
hierarchy. Level 2 securities generally represent institutional
funds measured at their daily net asset value derived from quoted
prices of the underlying investments. Level 3 securities represent
alternative investments primarily in funds of hedge funds
(“FoHFs”), which are comprised of different and
independent hedge funds with various investment strategies. The
administrators of the FoHFs utilize unobservable inputs to
calculate the net asset value of the FoHFs on a monthly
basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Plan
Assets
|
|
|
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level
3)
|
|
|
|
In
thousands |
|
|
December
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents
(a)
|
|
$ |
35,082 |
|
|
$ |
5,322 |
|
|
$ |
29,760 |
|
|
$ |
— |
|
|
Equity
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
165,550 |
|
|
|
— |
|
|
|
165,550 |
|
|
|
— |
|
|
International
|
|
|
213,580 |
|
|
|
— |
|
|
|
213,580 |
|
|
|
— |
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and
government agencies
|
|
|
22 |
|
|
|
— |
|
|
|
22 |
|
|
|
— |
|
|
Corporate and international
bonds
|
|
|
884,453 |
|
|
|
— |
|
|
|
884,453 |
|
|
|
— |
|
|
Alternative
investments
|
|
|
125,624 |
|
|
|
— |
|
|
|
— |
|
|
|
125,624 |
|
|
Insurance
contracts
|
|
|
44,720 |
|
|
|
— |
|
|
|
44,720 |
|
|
|
— |
|
|
Commodities
(b)
|
|
|
(1,505 |
) |
|
|
(1,505 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,467,526 |
|
|
$ |
3,817 |
|
|
$ |
1,338,085 |
|
|
$ |
125,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents
(a)
|
|
$ |
119,962 |
|
|
$ |
1,837 |
|
|
$ |
118,125 |
|
|
$ |
— |
|
|
Equity
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
314,052 |
|
|
|
— |
|
|
|
314,052 |
|
|
|
— |
|
|
International
|
|
|
344,840 |
|
|
|
— |
|
|
|
344,840 |
|
|
|
— |
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and
government agencies
|
|
|
39,361 |
|
|
|
39,331 |
|
|
|
30 |
|
|
|
— |
|
|
Corporate and international
bonds
|
|
|
432,410 |
|
|
|
— |
|
|
|
432,410 |
|
|
|
— |
|
|
Real estate
|
|
|
45,922 |
|
|
|
— |
|
|
|
45,922 |
|
|
|
— |
|
|
Insurance
contracts
|
|
|
34,843 |
|
|
|
— |
|
|
|
34,843 |
|
|
|
— |
|
|
Commodities
(b)
|
|
|
821 |
|
|
|
821 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,332,211 |
|
|
$ |
41,989 |
|
|
$ |
1,290,222 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Includes cash held by individual investment managers of other
asset classes for liquidity purposes. Level 2 includes an
institutional fund that invests primarily in short-term U.S.
government securities.
|
| (b) |
Consists of derivative commodity futures.
|
|
| Summary of Changes in Fair Value of Pension Assets |
The table below
summarizes changes in the fair value of Level 3 pension assets in
2013:
|
|
|
|
|
|
|
Alternative
Investments |
|
|
|
In
thousands |
|
|
Balance, December
2012
|
|
$ |
— |
|
|
Purchase of
assets
|
|
|
122,980 |
|
|
Actual return on
assets
|
|
|
2,644 |
|
|
|
|
|
|
|
Balance, December
2013
|
|
$ |
125,624 |
|
|
|
|
|
|
|