Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

v3.20.4
PENSION PLANS
 9 Months Ended
Dec. 26, 2020
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 December Nine Months Ended December
(In thousands) 2020 2019 2020 2019
Service cost – benefits earned during the period $ 3,837  $ 3,401  $ 11,252  $ 10,192 
Interest cost on projected benefit obligations 11,764  14,581  35,693  44,085 
Expected return on plan assets (20,586) (23,176) (61,696) (69,505)
Settlement charges 544  24,943  1,116  25,462 
Amortization of deferred amounts:
Net deferred actuarial losses 3,020  4,203  8,781  12,236 
Deferred prior service costs (credits) (19) 13  (53) 38 
Net periodic pension cost (income) $ (1,440) $ 23,965  $ (4,907) $ 22,508 
The amounts reported in these disclosures 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, settlement charges and amortization of deferred actuarial losses and prior service costs (credits), in the other income (expense), net line item in the Consolidated Statements of Operations.
VF contributed $7.3 million to its defined benefit plans during the nine months ended December 2020, and intends to make
approximately $11.5 million of contributions during the remainder of Fiscal 2021.
VF recorded $0.5 million and $1.1 million in settlement charges in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2020, 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 rate used to determine the supplemental defined benefit pension obligation was 2.62% and 2.87% as of December 2020 and September 2020, respectively.
Additionally, during the three months ended December 2019, the Company offered former employees in the U.S. qualified defined benefit pension plan a one-time option to receive a distribution of their deferred vested benefits. As a result, VF recorded a $22.9 million settlement charge in the other income (expense),
net line item in the Consolidated Statement of Operations during the three months ended December 2019 to recognize the related deferred actuarial losses in accumulated other comprehensive income (loss). VF also recorded $2.0 million and $2.5 million in settlement charges for the three and nine months ended December 2019, respectively, related to the supplemental defined benefit pension plan.