Quarterly report [Sections 13 or 15(d)]

PENSION PLANS

v3.25.4
PENSION PLANS
 9 Months Ended
Dec. 27, 2025
Retirement Benefits [Abstract]  
PENSION PLANS PENSION PLANS
The components of pension cost for VF’s defined benefit plans were as follows:
  Three Months Ended December Nine Months Ended December
(In thousands) 2025 2024 2025 2024
Service cost – benefits earned during the period $ 2,771  $ 2,475  $ 7,877  $ 7,381 
Interest cost on projected benefit obligations 11,107  11,700  33,432  35,095 
Expected return on plan assets (15,029) (15,320) (45,075) (45,950)
Settlement charges 34,192  —  34,533  — 
Curtailments —  (638) (531) (638)
Amortization of deferred amounts:
Net deferred actuarial losses 4,886  5,049  14,631  15,146 
Deferred prior service credits (159) (148) (470) (442)
Net periodic pension cost $ 37,768  $ 3,118  $ 44,397  $ 10,592 

VF has reported the service cost component of net periodic pension cost in operating income and the other components, which include interest cost, expected return on plan assets, settlement charges, curtailments and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations.
VF contributed $14.0 million to its defined benefit plans during the nine months ended December 2025, and intends to make approximately $4.8 million of contributions during the remainder of Fiscal 2026.
In May 2025 VF executed a resolution to terminate the U.S. qualified plan, which is frozen and no longer accrues benefits. As of December 2025, the fair value of the plan's assets exceeded its benefit obligation. The termination of the plan was effective July 31, 2025, is subject to the appropriate regulatory approvals, and is expected to be completed in Fiscal 2026. VF currently estimates total non-cash settlement charges to be between $200.0 and $300.0 million in Fiscal 2026, which is inclusive of the non-cash settlement charge recorded in the third quarter of Fiscal 2026, as described below. VF's settlement obligations and related charges will depend upon both the nature and timing of participant settlements and prevailing market conditions.
In conjunction with the termination of the U.S. qualified plan, VF offered participants the option to elect lump-sum payouts in exchange for future benefit obligations. VF recorded a $34.0
million non-cash settlement charge in the other income (expense), net line item in the Consolidated Statements of Operations during the three and nine months ended December 2025 to recognize the related deferred actuarial losses in accumulated other comprehensive loss (“OCL”) resulting from lump-sum payments of retirement benefits. Actuarial assumptions used in the interim valuation were reviewed and revised as appropriate. The discount rate used to determine the pension obligation as of December 2025 was 5.32%.
Additionally, VF recorded $0.2 million and $0.5 million of settlement charges in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2025, 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.
VF recorded $0.5 million in curtailment gains in the other income (expense), net line item in the Consolidated Statement of Operations for the nine months ended December 2025 and $0.6 million in curtailment gains in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2024. The curtailment gains were related to employee exits from an international plan resulting from restructuring actions.