VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Pension Plans

Pension Plans

6 Months Ended

Jul. 02, 2016

Note H – Pension Plans

The components of pension cost for VF’s defined benefit plans were as follows:


	Three Months Ended June						Six Months Ended June
In thousands	2016			2015			2016			2015
Service cost – benefits earned during the period	$	6,507		$	7,344		$	12,956		$	14,679
Interest cost on projected benefit obligations		17,041			19,411			34,075			38,814
Expected return on plan assets		(24,926	)		(27,779	)		(49,845	)		(55,550	)
Amortization of deferred amounts:
Net deferred actuarial losses		16,319			15,495			32,625			30,992
Deferred prior service costs		645			759			1,292			1,521

Net periodic pension cost	$	15,586		$	15,230		$	31,103		$	30,456

VF contributed $11.1 million to its defined benefit plans during the first six months of 2016, and intends to make approximately $4.0 million of additional contributions during the remainder of 2016.

During the second quarter of 2015, VF incurred a $1.6 million settlement charge related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits to participants in VF’s supplemental defined benefit pension plan. No settlement charges were incurred during the first six months of 2016.