|
Retirement and Savings Benefit Plans (Tables)
|
12 Months Ended |
|
Dec. 29, 2012
|
| Components of Pension Cost |
The components
of pension cost for all of VF’s defined benefit plans were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
| |
|
In
thousands |
|
|
Service cost —
benefits earned during the year
|
|
$ |
23,198 |
|
|
$ |
20,867 |
|
|
$ |
18,085 |
|
|
Interest cost on projected
benefit obligations
|
|
|
77,013 |
|
|
|
78,859 |
|
|
|
76,691 |
|
|
Expected return on plan
assets
|
|
|
(80,619 |
) |
|
|
(89,689 |
) |
|
|
(76,846 |
) |
|
Amortization of deferred
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
|
69,744 |
|
|
|
43,088 |
|
|
|
45,731 |
|
|
Deferred prior service
cost
|
|
|
3,357 |
|
|
|
3,453 |
|
|
|
3,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pension
expense
|
|
$ |
92,693 |
|
|
$ |
56,578 |
|
|
$ |
67,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following actuarial
assumptions were used to determine pension expense for the domestic
plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
5.10 |
% |
|
|
5.65 |
% |
|
|
6.05 |
% |
|
Expected long-term return
on plan assets
|
|
|
7.50 |
% |
|
|
7.75 |
% |
|
|
7.75 |
% |
|
Rate of compensation
increase
|
|
|
4.00 |
% |
|
|
4.00 |
% |
|
|
4.00 |
% |
|
| Reconciliation of changes in Fair Value of Pension Plans' Assets and Projected Benefit Obligations |
The following
provides a reconciliation of the changes in fair value of all of
VF’s defined benefit plan assets and projected benefit
obligations for each year, and the funded status at the end of each
year:
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2011 |
|
| |
|
In
thousands |
|
|
Fair value of plan assets,
beginning of year
|
|
$ |
1,144,178 |
|
|
$ |
1,211,588 |
|
|
Actual return on plan
assets
|
|
|
146,079 |
|
|
|
4,029 |
|
|
VF contributions
|
|
|
112,892 |
|
|
|
10,232 |
|
|
Participant
contributions
|
|
|
2,677 |
|
|
|
2,455 |
|
|
Benefits paid
|
|
|
(76,813 |
) |
|
|
(82,787 |
) |
|
Currency
translation
|
|
|
3,198 |
|
|
|
(1,339 |
) |
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets,
end of year
|
|
|
1,332,211 |
|
|
|
1,144,178 |
|
|
|
|
|
|
|
|
|
|
|
Projected benefit
obligations, beginning of year
|
|
|
1,546,896 |
|
|
|
1,418,960 |
|
|
Service cost
|
|
|
23,198 |
|
|
|
20,867 |
|
|
Interest cost
|
|
|
77,013 |
|
|
|
78,859 |
|
|
Participant
contributions
|
|
|
2,677 |
|
|
|
2,455 |
|
|
Actuarial loss
|
|
|
243,766 |
|
|
|
110,254 |
|
|
Benefits paid
|
|
|
(76,813 |
) |
|
|
(82,787 |
) |
|
Plan amendments
|
|
|
(5,518 |
) |
|
|
— |
|
|
Currency
translation
|
|
|
3,909 |
|
|
|
(1,712 |
) |
|
|
|
|
|
|
|
|
|
|
Projected benefit
obligations, end of year
|
|
|
1,815,128 |
|
|
|
1,546,896 |
|
|
|
|
|
|
|
|
|
|
|
Funded status, end of
year
|
|
$ |
(482,917 |
) |
|
$ |
(402,718 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2011 |
|
| |
|
Dollars in
thousands |
|
|
Amounts included in
Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
Current liabilities (Note
J)
|
|
$ |
(8,742 |
) |
|
$ |
(7,965 |
) |
|
Noncurrent liabilities
(Note L)
|
|
|
(474,175 |
) |
|
|
(394,753 |
) |
|
|
|
|
|
|
|
|
|
|
Funded status
|
|
$ |
(482,917 |
) |
|
$ |
(402,718 |
) |
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss:
|
|
|
|
|
|
|
|
|
|
Net deferred actuarial
losses
|
|
$ |
676,373 |
|
|
$ |
567,864 |
|
|
Deferred prior service
cost
|
|
|
7,525 |
|
|
|
15,176 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
683,898 |
|
|
$ |
583,040 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated benefit
obligations
|
|
$ |
1,751,741 |
|
|
$ |
1,498,583 |
|
|
|
|
|
|
|
|
|
|
|
Assumptions used to
determine obligations for domestic plans:
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
4.05 |
% |
|
|
5.10 |
% |
|
Rate of compensation
increase
|
|
|
4.00 |
% |
|
|
4.00 |
% |
|
| Fair Value of Investments Held by Pension Plan |
The fair value
of investments held by all of VF’s defined benefit plans at
December 2012 and 2011, by asset class, is summarized below. See
Note T for a description of the three levels of the fair value
measurement hierarchy. Level 2 securities generally represent
institutional funds measured at their daily net asset value derived
from quoted prices of the underlying investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Plan
Assets |
|
|
Quoted
Prices
in
Active
Markets for
Identical
Assets
(Level
1)
|
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level
3)
|
|
| |
|
In
thousands |
|
|
December
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
equivalents(a)
|
|
$ |
119,962 |
|
|
$ |
1,837 |
|
|
$ |
118,125 |
|
|
$ |
— |
|
|
Equity
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
314,052 |
|
|
|
— |
|
|
|
314,052 |
|
|
|
— |
|
|
International
|
|
|
344,840 |
|
|
|
— |
|
|
|
344,840 |
|
|
|
— |
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and
government agencies
|
|
|
39,361 |
|
|
|
39,331 |
|
|
|
30 |
|
|
|
— |
|
|
Corporate and international
bonds
|
|
|
432,410 |
|
|
|
— |
|
|
|
432,410 |
|
|
|
— |
|
|
Real estate
|
|
|
45,922 |
|
|
|
— |
|
|
|
45,922 |
|
|
|
— |
|
|
Insurance
contracts
|
|
|
34,843 |
|
|
|
— |
|
|
|
34,843 |
|
|
|
— |
|
|
Commodities(b)
|
|
|
821 |
|
|
|
821 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,332,211 |
|
|
$ |
41,989 |
|
|
$ |
1,290,222 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(b)
|
|
|
(236 |
) |
|
|
(236 |
) |
|
|
— |
|
|
|
— |
|
|
Payable for
securities(c)
|
|
|
(47,900 |
) |
|
|
— |
|
|
|
(47,900 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,144,178 |
|
|
$ |
589,295 |
|
|
$ |
554,883 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Includes 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.
|
| (b) |
Consists of derivative commodity futures.
|
| (c) |
Represents payable for purchased securities not yet
settled.
|
|