| Schedule of Components of Pension Cost |
The components of pension cost for VF’s defined benefit plans were as follows:
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Year Ended March |
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| (In thousands) |
|
2026 |
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|
2025 |
|
2024 |
| Service cost — benefits earned during the period |
|
$ |
10,073 |
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|
|
$ |
9,796 |
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|
$ |
8,924 |
|
| Interest cost on projected benefit obligations |
|
40,496 |
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|
|
46,789 |
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|
47,079 |
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| Expected return on plan assets |
|
(53,399) |
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|
|
(61,225) |
|
|
(63,569) |
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| Settlement charges |
|
193,199 |
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|
|
— |
|
|
3,538 |
|
| Divestiture |
|
(718) |
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|
|
— |
|
|
— |
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| Curtailments |
|
(1,520) |
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|
|
(936) |
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|
— |
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| Amortization of deferred amounts: |
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| Net deferred actuarial losses |
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18,236 |
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|
20,205 |
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|
16,656 |
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| Deferred prior service credits |
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(339) |
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(589) |
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(541) |
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| Net periodic pension cost |
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$ |
206,028
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|
$ |
14,040
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$ |
12,087
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| Weighted average actuarial assumptions used to determine pension cost: |
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| 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)
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|
2.00 |
% |
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|
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.
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| Schedule of Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations |
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:
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| (In thousands) |
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March 2026 |
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March 2025 |
| Fair value of plan assets, beginning of period |
|
$ |
1,077,015 |
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$ |
1,085,242 |
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| Actual return on plan assets |
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44,190 |
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|
|
33,976 |
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| VF contributions |
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19,325 |
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|
15,478 |
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| Participant contributions |
|
5,657 |
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|
5,469 |
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| Settlement |
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(701,053) |
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— |
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| Benefits paid |
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(58,034) |
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(66,132) |
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| Reversion of plan assets |
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(208,955) |
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— |
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| Divestiture |
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(1,409) |
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— |
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| Currency translation |
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11,534 |
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2,982 |
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| Fair value of plan assets, end of period |
|
188,270 |
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|
1,077,015 |
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| Projected benefit obligations, beginning of period |
|
982,006 |
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|
995,357 |
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| Service cost |
|
10,073 |
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|
9,796 |
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| Interest cost |
|
40,496 |
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|
46,789 |
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| Participant contributions |
|
5,657 |
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|
5,469 |
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| Actuarial gain |
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(21,903) |
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(12,184) |
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| Settlement |
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(701,053) |
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— |
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| Benefits paid |
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(58,034) |
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(66,132) |
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| Plan amendments |
|
276 |
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|
129 |
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| Curtailments |
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(4,745) |
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(781) |
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| Divestiture |
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(2,127) |
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— |
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| Currency translation |
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14,889 |
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|
3,563 |
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Projected benefit obligations, end of period |
|
265,535 |
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|
982,006 |
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| Funded status, end of period |
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$ |
(77,265) |
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$ |
95,009
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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.
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| (In thousands) |
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March 2026 |
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March 2025 |
| Amounts included in Consolidated Balance Sheets: |
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Other assets (Note 11) |
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$ |
2,005 |
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$ |
179,596 |
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Accrued liabilities (Note 14) |
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(6,281) |
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(6,899) |
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Other liabilities (Note 16) |
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(72,989) |
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(77,688) |
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| Funded status |
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$ |
(77,265) |
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$ |
95,009
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| Accumulated other comprehensive loss, pretax: |
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| Net deferred actuarial losses |
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$ |
28,848 |
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$ |
256,027 |
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| Net deferred prior service credits |
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(3,151) |
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|
(3,666) |
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| Total accumulated other comprehensive loss, pretax |
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$ |
25,697 |
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$ |
252,361
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| Accumulated benefit obligations |
|
$ |
247,149 |
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|
$ |
963,373
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| Weighted average actuarial assumptions used to determine pension obligations: |
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| Discount rate |
|
3.27 |
% |
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|
5.05 |
% |
Rate of compensation increase (a)
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|
1.90 |
% |
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|
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.
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| Schedule of Fair Value of Investments Held by Pension Plan |
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.
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| |
Total Plan
Assets |
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Fair Value Measurements |
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| (In thousands) |
Level 1 |
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Level 2 |
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Level 3 |
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| March 2026 |
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| Plan assets |
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| Cash equivalents |
$ |
5,021 |
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$ |
5,021 |
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$ |
— |
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$ |
— |
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| Fixed income securities: |
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| U.S. Treasury and government agencies |
2 |
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|
— |
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|
2 |
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— |
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| Insurance contracts |
122,053 |
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— |
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|
122,053 |
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— |
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| Total plan assets in the fair value hierarchy |
127,076
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$ |
5,021
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$ |
122,055
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$ |
—
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| Plan assets measured at net asset value |
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| Cash equivalents |
14,251 |
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| Equity securities: |
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| International |
26,471 |
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| Fixed income securities: |
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| Corporate and international bonds |
13,888 |
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| Alternative investments |
6,584 |
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| Total plan assets measured at net asset value |
61,194 |
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| Total plan assets |
$ |
188,270
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Total Plan
Assets |
|
Fair Value Measurements |
| (In thousands) |
Level 1 |
|
Level 2 |
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Level 3 |
| March 2025 |
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| Plan assets |
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| Cash equivalents |
$ |
16,716 |
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|
$ |
16,716 |
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|
$ |
— |
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|
$ |
— |
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| Fixed income securities: |
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| U.S. Treasury and government agencies |
2 |
|
|
— |
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|
2 |
|
|
— |
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| Insurance contracts |
111,992 |
|
|
— |
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|
111,992 |
|
|
— |
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| Futures contracts |
1,900 |
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|
1,900 |
|
|
— |
|
|
— |
|
| Total plan assets in the fair value hierarchy |
130,610
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|
$ |
18,616
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|
$ |
111,994
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|
|
$ |
—
|
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| Plan assets measured at net asset value |
|
|
|
|
|
|
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| Cash equivalents |
121,450 |
|
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| Equity securities: |
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| Domestic |
5,109 |
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| International |
27,324 |
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| Fixed income securities: |
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| Corporate and international bonds |
784,724 |
|
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|
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| Alternative investments |
7,798 |
|
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| Total plan assets measured at net asset value |
946,405 |
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| Total plan assets |
$ |
1,077,015
|
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