Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

v3.19.3
PENSION PLANS
 6 Months Ended
Sep. 28, 2019
Retirement Benefits [Abstract]  
PENSION PLANS PENSION PLANS
The components of pension cost (income) for VF’s defined benefit plans were as follows:
 
 
Three Months Ended September
 
 
Six Months Ended September
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
 
2019
 
 
2018
Service cost – benefits earned during the period
 
$
3,410

 
 
$
5,561

 
 
$
6,791

 
 
$
11,785

Interest cost on projected benefit obligations
 
14,743

 
 
15,818

 
 
29,504

 
 
31,831

Expected return on plan assets
 
(23,151
)
 
 
(23,197
)
 
 
(46,329
)
 
 
(47,031
)
Settlement charges
 
519

 
 
1,342

 
 
519

 
 
8,184

Curtailments
 
—

 
 
—

 
 
—

 
 
9,483

Amortization of deferred amounts:
 
 
 
 

 
 
 
 
 
 
Net deferred actuarial losses
 
4,014

 
 
6,655

 
 
8,033

 
 
15,477

Deferred prior service costs (credits)
 
12

 
 
(59
)
 
 
25

 
 
610

Net periodic pension cost (income)
 
$
(453
)
 
 
$
6,120

 
 
$
(1,457
)
 
 
$
30,339


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

VF contributed $4.7 million to its defined benefit plans during the six months ended September 2019, and intends to make approximately $21.5 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 six months ended September 2018.
Additionally, VF reported $0.5 million in settlement charges in the other income (expense), net line item in the Consolidated Statements of Income for the three and six months ended September 2019, as well as $1.3 million and $8.2 million for the three and six months ended September 2018, respectively. The settlement charges related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan.