Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

v3.19.2
PENSION PLANS
 3 Months Ended
Jun. 29, 2019
Retirement Benefits [Abstract]  
PENSION PLANS PENSION PLANS
The components of pension (income) cost for VF’s defined benefit plans were as follows:
 
 
Three Months Ended June
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
Service cost – benefits earned during the period
 
$
3,381

 
 
$
6,224

Interest cost on projected benefit obligations
 
14,761

 
 
16,013

Expected return on plan assets
 
(23,178
)
 
 
(23,834
)
Settlement charges
 
—

 
 
6,842

Curtailments
 
—

 
 
9,483

Amortization of deferred amounts:
 
 
 
 

Net deferred actuarial losses
 
4,019

 
 
8,822

Deferred prior service costs
 
13

 
 
669

Net periodic pension (income) cost
 
$
(1,004
)
 
 
$
24,219


The amounts reported in these disclosures for prior periods have not been segregated between continuing and discontinued operations.

VF has reported the service cost component of net periodic pension (income) cost in operating income and the other components (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and actuarial gains and losses) in the other income (expense), net line item in the Consolidated Statements of Income.

VF contributed $1.8 million to its defined benefit plans during the three months ended June 2019, and intends to make approximately $22.6 million of contributions during the remainder of Fiscal 2020.
In the first quarter of Fiscal 2019, VF approved a freeze of all future benefit accruals under the U.S. qualified defined benefit pension
plan and the supplemental defined benefit pension plan, effective December 31, 2018. Accordingly, the Company recognized a $9.5 million pension curtailment loss in the other income (expense), net line item in the Consolidated Statement of Income for the three months ended June 2018.
Additionally, VF reported $6.8 million in settlement charges in the other income (expense), net line item in the Consolidated Statement of Income for the three months ended June 2018 related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan.