|9 Months Ended|
Dec. 28, 2019
|Retirement Benefits [Abstract]|
The components of pension cost (income) for VF’s defined benefit plans were as follows:
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 $13.1 million to its defined benefit plans during the nine months ended December 2019, and intends to make approximately $13.2 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 nine months ended December 2018.
During the three months ended December 2019, the Company offered former employees in the U.S. qualified plan a one-time option to receive a distribution of their deferred vested benefits.
Approximately 2,400 participants accepted a distribution, representing approximately 40% of offered participants and an approximate 10% reduction in the total number of plan participants. In December 2019, the plan paid approximately $130 million in lump-sum distributions to settle approximately $170 million of projected benefit obligations related to these participants. VF recorded a $22.9 million settlement charge in the other income (expense), net line item in the Consolidated Statement of Income during the three months ended December 2019 to recognize the related deferred actuarial losses in accumulated OCI.
Additionally, VF reported $2.0 million and $2.5 million of settlement charges in the other income (expense), net line item in the Consolidated Statements of Income for the three and nine months ended December 2019, respectively, as well as $0.7 million and $8.8 million for the three and nine months ended December 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.
Actuarial assumptions used in the interim valuations were reviewed and revised as appropriate. The discount rates used to determine the pension obligations were as follows:
The entire disclosure for pension and other postretirement benefits.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef