Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

v3.10.0.1
PENSION PLANS
 6 Months Ended
Sep. 29, 2018
Retirement Benefits [Abstract]  
PENSION PLANS
PENSION PLANS
The components of pension cost for VF’s defined benefit plans were as follows:
 
 
Three Months Ended September
 
 
Six Months Ended September
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
2018
 
 
2017
 
 
2018
 
 
2017
Service cost – benefits earned during the period
 
$
5,561

 
 
$
6,202

 
 
$
11,785

 
 
$
12,317

Interest cost on projected benefit obligations
 
15,818

 
 
14,730

 
 
31,831

 
 
29,439

Expected return on plan assets
 
(23,197
)
 
 
(23,825
)
 
 
(47,031
)
 
 
(47,622
)
Pension settlement charges
 
1,342

 
 
—

 
 
8,184

 
 
—

Pension curtailment losses
 
—

 
 
—

 
 
9,483

 
 
—

Amortization of deferred amounts:
 
 
 
 
 
 
 
 
 
 
 
Net deferred actuarial losses
 
6,655

 
 
10,030

 
 
15,477

 
 
20,032

Deferred prior service costs (credits)
 
(59
)
 
 
643

 
 
610

 
 
1,288

Net periodic pension cost
 
$
6,120

 
 
$
7,780

 
 
$
30,339

 
 
$
15,454


The amounts reported in these disclosures have not been segregated between continuing and discontinued operations.

On April 1, 2018, VF adopted ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost", which requires the Company to disaggregate the service cost component from other components of net periodic pension cost. Accordingly, in the Consolidated Statements of Income, VF has reported the service cost component within operating income and the other components of net periodic pension cost (which include interest cost, expected return on plan assets, amortization of prior service costs or credits and actuarial gains and losses) in the other income (expense), net line item.
VF contributed $28.7 million to its defined benefit plans during the six months ended September 2018, and intends to make approximately $12.2 million of contributions during the remainder of Fiscal 2019.
In the first quarter of Fiscal 2019, VF approved a freeze of all future benefit accruals under the U.S. qualified defined benefit pension plan and the supplemental defined benefit pension plan, effective December 31, 2018. Accordingly, the Company recognized a $9.5 million pension curtailment loss in the other income (expense), net line item in the Consolidated Statement of Income for the three months ended June 2018. Actuarial valuations were obtained as of June 30, 2018 ("June 2018").
Additionally, VF reported $1.3 million and $8.2 million in settlement charges in the other income (expense), net line item in the Consolidated Statements of Income for the three and six months ended September 2018, respectively, related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan. Actuarial valuations were obtained as of April 30, 2018 ("April 2018") and September 29, 2018.
Actuarial assumptions used in the interim valuations were reviewed and revised as appropriate. The discount rates used to determine pension obligations were as follows:
 
 
September 2018
 
 
June 2018
 
April 2018
U.S. qualified defined benefit pension plan
 
N/A

 
 
4.25
%
 
N/A

Supplemental defined benefit pension plan
 
4.29
%
 
 
4.24
%
 
4.22
%