Annual report [Section 13 and 15(d), not S-K Item 405]

RETIREMENT AND SAVINGS BENEFIT PLANS

v3.26.1
RETIREMENT AND SAVINGS BENEFIT PLANS
 12 Months Ended
Mar. 28, 2026
Retirement Benefits [Abstract]  
RETIREMENT AND SAVINGS BENEFIT PLANS RETIREMENT AND SAVINGS BENEFIT PLANS
VF has various retirement and savings benefit plans covering eligible employees. VF retains the right to curtail or discontinue any of the plans, subject to local regulations.
U.S. Qualified Pension Plan Termination
In May 2025, VF executed a resolution to terminate the U.S. qualified plan, which was previously frozen and no longer accruing benefits. In February 2026, the Company completed the termination of the plan through a combination of lump-sum payments to eligible participants and the purchase of group annuity contracts to settle the remaining benefit obligations.
In the third quarter of Fiscal 2026, 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 Statement of Operations for the year ended March 2026 to recognize the related deferred actuarial losses in accumulated OCL resulting from lump-sum payments of retirement benefits. Actuarial assumptions used in the interim valuation were reviewed and revised as appropriate.
In the fourth quarter of Fiscal 2026, VF purchased a group annuity contract to transfer the remaining benefit obligation to an insurance company. The purchase of the group annuity contract was fully funded directly by plan assets. As a result, VF recorded a $158.1 million non-cash settlement charge in the other income (expense), net line item in the Consolidated Statement of Operations for the year ended March 2026 to recognize the remaining deferred actuarial losses in OCL.
In the fourth quarter of Fiscal 2026, VF transferred approximately $83.5 million of funds from plan assets to a
qualified replacement plan managed by the Company which will be used to fund future incremental annual Company contributions to VF's U.S. 401(k) program. As of March 2026, $11.9 million was recorded in other current assets (Note 6) and $71.6 million was recorded in other assets (Note 11). The remaining plan assets reverted to the Company as part of the final termination process. As a result, approximately $125.4 million reverted to the Company resulting in $25.1 million of excise tax being paid and recorded in the other income (expense), net line item in the Consolidated Statement of Operations for the year ended March 2026.
Defined Benefit Pension Plans
Defined benefit plans provide pension benefits based on participant compensation and years of service. VF sponsors an unfunded supplemental defined benefit pension plan that provides benefits in excess of limitations imposed by income tax regulations (the “U.S. nonqualified plan”) and various non-U.S. defined benefit pension plans. As of December 31, 2018, the U.S. nonqualified plan was frozen for all future benefit accruals.
VF was in a net underfunded status at the end of Fiscal 2026 primarily due to the unfunded U.S. nonqualified plan and differences in actuarial assumptions and plan classification relative to local statutory accounting standards, which generally result in higher reported benefit obligations under U.S. GAAP. A March 31 measurement date is used to value plan assets and obligations for all pension plans.
The amounts reported in these disclosures have not been segregated between continuing and discontinued operations.
The components of pension cost for VF’s defined benefit plans were as follows:
Year Ended March
(In thousands) 2026 2025 2024
Service cost — benefits earned during the period $ 10,073  $ 9,796  $ 8,924 
Interest cost on projected benefit obligations 40,496  46,789  47,079 
Expected return on plan assets (53,399) (61,225) (63,569)
Settlement charges 193,199  —  3,538 
Divestiture (718) —  — 
Curtailments (1,520) (936) — 
Amortization of deferred amounts:
Net deferred actuarial losses 18,236  20,205  16,656 
Deferred prior service credits (339) (589) (541)
Net periodic pension cost $ 206,028  $ 14,040  $ 12,087 
Weighted average actuarial assumptions used to determine pension cost:
Discount rate in effect for determining service cost 1.99  % 2.05  % 2.50  %
Discount rate in effect for determining interest cost 4.75  % 4.59  % 4.85  %
Expected long-term return on plan assets 4.03  % 5.90  % 5.99  %
Rate of compensation increase (a)
2.00  % 2.15  % 2.19  %
(a)Rate of compensation increase is calculated as the weighted average rate of compensation increase for active plans. Frozen plans are excluded from the calculation.
In addition to the settlement charges totaling $192.1 million related to the termination of the U.S. qualified plan in the year ended March 2026, as discussed above, VF also recorded $1.1 million and $3.5 million of settlement charges in the other income (expense), net line item in the Consolidated Statements of Operations for the years ended March 2026 and 2024, respectively. These settlement charges related to the recognition of deferred actuarial losses resulting from lump-
sum payments of retirement benefits in the U.S. nonqualified plan.
VF recorded $1.5 million and $0.9 million in curtailment gains in the other income (expense), net line item in the Consolidated Statements of Operations for the years ended March 2026 and 2025, respectively, primarily related to employee exits from an international plan resulting from restructuring.
The following provides a reconciliation of the changes in fair value of VF’s defined benefit plan assets and projected benefit obligations for each period, and the funded status at the end of each period:
(In thousands) March 2026 March 2025
Fair value of plan assets, beginning of period $ 1,077,015  $ 1,085,242 
Actual return on plan assets 44,190  33,976 
VF contributions 19,325  15,478 
Participant contributions 5,657  5,469 
Settlement (701,053) — 
Benefits paid (58,034) (66,132)
Reversion of plan assets (208,955) — 
Divestiture (1,409) — 
Currency translation 11,534  2,982 
Fair value of plan assets, end of period 188,270  1,077,015 
Projected benefit obligations, beginning of period 982,006  995,357 
Service cost 10,073  9,796 
Interest cost 40,496  46,789 
Participant contributions 5,657  5,469 
Actuarial gain (21,903) (12,184)
Settlement (701,053) — 
Benefits paid (58,034) (66,132)
Plan amendments 276  129 
Curtailments (4,745) (781)
Divestiture (2,127) — 
Currency translation 14,889  3,563 
Projected benefit obligations, end of period
265,535  982,006 
Funded status, end of period $ (77,265) $ 95,009 
Pension benefits are reported in the Consolidated Balance Sheets as a net asset or liability based on the overfunded or underfunded status of the defined benefit plans, assessed on a plan-by-plan basis.
(In thousands) March 2026 March 2025
Amounts included in Consolidated Balance Sheets:
Other assets (Note 11)
 $ 2,005 $ 179,596 
Accrued liabilities (Note 14)
 (6,281) (6,899)
Other liabilities (Note 16)
 (72,989) (77,688)
Funded status $ (77,265) $ 95,009 
Accumulated other comprehensive loss, pretax:
Net deferred actuarial losses $ 28,848 $ 256,027 
Net deferred prior service credits (3,151) (3,666)
Total accumulated other comprehensive loss, pretax $ 25,697 $ 252,361 
Accumulated benefit obligations $ 247,149 $ 963,373 
Weighted average actuarial assumptions used to determine pension obligations:
Discount rate 3.27  % 5.05  %
Rate of compensation increase (a)
1.90  % 1.98  %
(a)Rate of compensation increase is calculated as the weighted average rate of compensation increase for active plans. Frozen plans are excluded from the calculation.
The actuarial model utilizes discount rates, which are used to estimate the present value of future cash outflows necessary to meet the projected benefit obligations for VF's defined benefit plans. The discount rates reflect the estimated interest rate that VF could use to settle its projected benefit obligations at the valuation date. The discount rate assumption is based on current market interest rates. VF selects a discount rate for each defined benefit pension plan by matching high quality corporate bond yields to the timing of the projected benefit payments to participants in each plan. VF uses the spot rate approach to measure the projected benefit obligations and service and interest costs. Under the spot rate approach, the full yield curve is applied separately to cash flows for each projected benefit obligation, service cost, and interest cost for a more precise calculation.
Accumulated benefit obligations at any measurement date are the present value of vested and unvested pension benefits
earned, without considering projected future compensation increases. Projected benefit obligations are the present value of vested and unvested pension benefits earned, considering projected future compensation increases.
Deferred actuarial gains and losses are changes in the amount of either the benefit obligation or the value of plan assets resulting from differences between expected amounts for a year using actuarial assumptions and the actual results for that year. These amounts are deferred as a component of accumulated OCL and amortized to pension cost in future years.
Deferred prior service credits related to plan amendments are also recorded in accumulated OCL and amortized to pension cost on a straight-line basis over the average remaining years of service for active employees.
The following provides information for VF's defined benefit plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets:
(In thousands) March 2026 March 2025
Projected benefit obligations $ 194,044  $ 190,404 
Accumulated benefit obligations 175,647  171,771 
Fair value of plan assets 114,774  105,817 
The net amount of projected benefit obligations and plan assets for underfunded defined benefit plans was $79.3 million and $84.6 million as of March 2026 and 2025, respectively, and was reported in accrued liabilities and other liabilities in the Consolidated Balance Sheets.

Management’s investment objectives are to invest plan assets in a diversified portfolio of securities to provide long-term growth, minimize the volatility of the value of plan assets relative to plan liabilities, and to ensure plan assets are sufficient to pay the benefit obligations. Investment strategies focus on diversification among multiple asset classes, a balance of long-term investment return at an acceptable level of risk and
liquidity to meet benefit payments. The primary objective of the investment strategies is to more closely align plan assets with plan liabilities by utilizing dynamic asset allocation targets dependent upon changes in the plan’s funded ratio, capital market expectations and risk tolerance.
Plan assets, across all plans, are primarily composed of common collective trust funds that invest in liquid securities diversified across equity, fixed-income and other asset classes. Fund assets are allocated among independent investment managers who have full discretion to manage their portion of the fund’s assets, subject to strategy and risk guidelines established with each manager. The overall strategy, the resulting allocations of plan assets and the performance of funds and individual investment managers are continually monitored. Derivative financial instruments may be used by investment managers for hedging purposes. There are no direct
investments in VF debt or equity securities and no significant concentrations of security risk.
The expected long-term rate of return on plan assets was based on an evaluation of the weighted average expected returns for the major asset classes in which the plans have invested. Expected returns by asset class were developed through analysis of historical market returns, current market conditions, inflation expectations and equity and credit risks. Inputs from various investment advisors on long-term capital market returns and other variables were also considered where appropriate.
The fair value of investments held by VF’s defined benefit plans at March 2026 and March 2025, by asset class, is summarized below. Refer to Note 24 for a description of the three levels of the fair value measurement hierarchy.
  Total Plan
Assets		 Fair Value Measurements
(In thousands) Level 1 Level 2 Level 3
March 2026
Plan assets
Cash equivalents $ 5,021  $ 5,021  $ —  $ — 
Fixed income securities:
U.S. Treasury and government agencies 2  —  2  — 
Insurance contracts 122,053  —  122,053  — 
Total plan assets in the fair value hierarchy 127,076  $ 5,021  $ 122,055  $ — 
Plan assets measured at net asset value
Cash equivalents 14,251 
Equity securities:
International 26,471 
Fixed income securities:
Corporate and international bonds 13,888 
Alternative investments 6,584 
Total plan assets measured at net asset value 61,194 
Total plan assets $ 188,270 
  Total Plan
Assets		 Fair Value Measurements
(In thousands) Level 1 Level 2 Level 3
March 2025
Plan assets
Cash equivalents $ 16,716  $ 16,716  $ —  $ — 
Fixed income securities:
U.S. Treasury and government agencies 2  —  2  — 
Insurance contracts 111,992  —  111,992  — 
Futures contracts 1,900  1,900  —  — 
Total plan assets in the fair value hierarchy 130,610  $ 18,616  $ 111,994  $ — 
Plan assets measured at net asset value
Cash equivalents 121,450 
Equity securities:
Domestic 5,109 
International 27,324 
Fixed income securities:
Corporate and international bonds 784,724 
Alternative investments 7,798 
Total plan assets measured at net asset value 946,405 
Total plan assets $ 1,077,015 

Cash equivalents include cash held by individual investment managers of other asset classes for liquidity purposes (Level 1). The fair values of insurance contracts are provided by the insurance companies and are primarily based on accumulated contributions plus returns guaranteed by the insurers (Level 2). Equity and fixed-income securities generally represent institutional funds measured at their daily net asset value derived from quoted prices of the underlying investments. As of both March 2026 and 2025, alternative investments are primarily investments in gold, insurance-linked securities and derivatives.
VF makes contributions to its defined benefit plans sufficient to meet minimum funding requirements under applicable laws, plus discretionary amounts as determined by management. VF intends to make approximately $16.1 million of contributions to its defined benefit plans during Fiscal 2027. The estimated future benefit payments for all of VF’s defined benefit plans, are approximately $29.7 million in Fiscal 2027, $16.5 million in Fiscal 2028, $15.8 million in Fiscal 2029, $16.1 million in Fiscal 2030, $16.4 million in Fiscal 2031 and $85.3 million for Fiscal 2032 through 2036.
Other Retirement and Savings Plans
VF sponsors a nonqualified retirement savings plan for employees whose contributions to a 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer a portion of their compensation and to receive matching contributions for a portion of the deferred amounts. Participants earn a return on their deferred compensation based on their selection of a hypothetical portfolio of publicly traded mutual funds. Changes in the fair value of the participants’ hypothetical investments are recorded as an adjustment to deferred compensation liabilities and compensation expense. Expense under this plan was $0.6
million, $0.3 million and $0.4 million in the years ended March 2026, 2025 and 2024, respectively. Deferred compensation, including accumulated earnings, is distributable in cash at participant-specified dates upon retirement, death, disability or termination of employment. VF sponsors a similar nonqualified plan that permits non-employee members of the Board of Directors to defer their Board compensation. VF also has remaining obligations under other deferred compensation plans, primarily related to acquired companies. At March 2026, VF’s liability to participants under all deferred compensation plans was $68.9 million, of which $12.2 million was recorded in accrued liabilities (Note 14) and $56.7 million was recorded in other liabilities (Note 16).
VF has purchased (i) publicly traded mutual funds in the same amounts as most of the participant-directed hypothetical investments underlying the deferred compensation liabilities, and (ii) variable life insurance contracts that invest in institutional funds that are substantially the same as the participant-directed hypothetical investments. These investment securities and earnings thereon are intended to provide a source of funds to meet the deferred compensation obligations, and serve as an economic hedge of the financial impact of changes in deferred compensation liabilities. They are held in an irrevocable trust but are subject to claims of creditors in the event of VF’s insolvency. VF also has assets related to deferred compensation plans of acquired companies, which are primarily invested in life insurance contracts. At March 2026, the value of investments held for all deferred compensation plans was $73.4 million, of which $12.2 million was recorded in other current assets (Note 6) and $61.2 million was recorded in other assets (Note 11). Realized and unrealized gains and losses on these deferred compensation assets are recorded in compensation expense in the Consolidated Statements of Operations and substantially
offset losses and gains resulting from changes in deferred compensation liabilities to participants.
VF sponsors 401(k) plans as well as other domestic and foreign retirement and savings plans. Expense for these plans totaled
$38.5 million, $40.8 million and $42.2 million in the years ended March 2026, 2025 and 2024, respectively.