Annual report pursuant to Section 13 and 15(d)

Retirement And Savings Benefit Plans (Tables)

v2.4.0.6
Retirement And Savings Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2011
Retirement And Savings Benefit Plans [Abstract]  
Effect Of Defined Benefit Pension Plans On Income
      2011     2010     2009  
     Dollars in thousands  

Service cost — benefits earned during the year

    $ 20,867      $ 18,085      $ 14,904   

Interest cost on projected benefit obligations

      78,859        76,691        71,799   

Expected return on plan assets

      (89,689 )      (76,846 )      (53,515 ) 

Amortization of deferred amounts:

       

Net deferred actuarial losses

      43,088        45,731        60,525   

Deferred prior service cost

      3,453        3,948        4,266   
  

 

 

    

 

 

    

 

 

  

Total pension expense

    $ 56,578      $ 67,609      $ 97,979   
  

 

 

    

 

 

    

 

 

  

Assumptions used to determine domestic pension expense:

       

Discount rate

      5.65 %      6.05 %      6.50 % 

Expected long-term return on plan assets

      7.75 %      7.75 %      8.00 % 

Rate of compensation increase

      4.00 %      4.00 %      4.00 % 
Reconciliation Of The Changes In Fair Value Of The Pension Plans Assets And Projected Benefit Obligations
      2011     2010  
     Dollars in thousands  

Fair value of plan assets, beginning of year

    $ 1,211,588      $ 1,034,368   

Actual return on plan assets

      4,029        126,396   

VF contributions

      10,232        113,460   

Participant contributions

      2,455        1,946   

Benefits paid

      (82,787 )      (62,712 ) 

Currency translation

      (1,339 )      (1,870 ) 
  

 

 

    

 

 

  

Fair value of plan assets, end of year

      1,144,178        1,211,588   
  

 

 

    

 

 

  

Projected benefit obligations, beginning of year

      1,418,960        1,285,253   

Service cost

      20,867        18,085   

Interest cost

      78,859        76,691   

Participant contributions

      2,455        1,946   

Actuarial loss

      110,254        101,669   

Benefits paid

      (82,787 )      (62,712 ) 

Currency translation

      (1,712 )      (1,972 ) 
  

 

 

    

 

 

  

Projected benefit obligations, end of year

      1,546,896        1,418,960   
  

 

 

    

 

 

  

Funded status, end of year

    $ (402,718 )    $ (207,372 ) 
  

 

 

    

 

 

  
      2011     2010  
     Dollars in thousands  

Amounts included in Consolidated Balance Sheets:

     

Current liabilities (Note J)

    $ (7,965 )    $ (5,873 ) 

Noncurrent liabilities (Note L)

      (394,753 )      (201,499 ) 
  

 

 

    

 

 

  

Funded status

    $ (402,718 )    $ (207,372 ) 
  

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss):

     

Net deferred actuarial losses

    $ 567,864      $ 415,153   

Deferred prior service cost

      15,176        18,629   
  

 

 

    

 

 

  
   $ 583,040      $ 433,782   
  

 

 

    

 

 

  

Accumulated benefit obligations

    $ 1,498,583      $ 1,367,777   
  

 

 

    

 

 

  

Assumptions used to determine obligations for domestic defined benefit plans:

     

Discount rate

      5.10 %      5.65 % 

Rate of compensation increase

      4.00 %      4.00 % 
Target Allocation Of Investments By Asset Class
     Target
Allocation		  

Equity securities

      46 - 60 % 

Fixed income securities

      25 - 35 % 

Real estate securities

      8 - 12 % 

Commodities and other*

      0 - 10 % 

Liquidity/cash equivalents

      0 - 7 % 

 

* Includes commodity-linked investments and U.S. government fixed income investments, including Treasury inflation-protected securities ("TIPS").
Schedule Of Fair Value Of Investments Held By VF's Pension Plans By Type Of Security
     Total Plan
Assets		     Quote
Prices in
Active
Markets for
Identical
Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  
     Dollars in thousands  

December 2011

         

Cash equivalents(a)

    $ 38,200      $ 6,086      $ 32,114      $ —   

Equity securities:

         

Domestic

      330,663        329,455        1,208        —   

International

      229,580        101,452        128,128        —   

Fixed income securities:

         

U.S. Treasury and government agencies

      132,696        114,026        18,670        —   

Corporate and international bonds

      393,884        —        393,884        —   

Real estate

      38,512        38,512        —        —   

Insurance contracts

      28,779        —        28,779        —   

Commodities(c)

      (236 )      (236 )      —        —   

Payable for securities(d)

      (47,900 )      —        (47,900 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 1,144,178      $ 589,295      $ 554,883      $ —   
  

 

 

    

 

 

    

 

 

    

 

 

  
     Total Plan
Assets		      Quote
Prices in
Active
Markets for
Identical
Assets
(Level 1)		      Significant
Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  
     Dollars in thousands  

December 2010

            

Cash equivalents(a)

    $ 150,666       $ 1,220       $ 149,446       $   —   

Equity securities:

            

Domestic

      428,127         427,120         1,007         —   

International

      185,459         113,410         72,049         —   

Fixed income securities:

            

U.S. Treasury and government agencies

      107,823         88,634         19,189         —   

Corporate and international bonds

      290,698         —         290,698         —   

Real estate(b)

      22,368         2,000         20,368         —   

Insurance contracts

      23,555         —         23,555         —   

Commodities(c)

      2,892         2,892         —      
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,211,588       $ 635,276       $ 576,312       $ —   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) Both years include cash held by individual investment managers of other asset classes for liquidity purposes. Level 2 includes an institutional fund that invests primarily in short-term U.S. government securities. 2010 includes $100.0 million contributed to the plan by VF in late 2010 that had not been allocated to individual investment managers.

 

(b) 2010 includes institutional funds that invest directly in U.S. real estate properties and U.S. real estate securities.

 

(c) Consists of derivative commodity futures.

 

(d) Represents payable for purchased securities not yet settled.