Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

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PENSION PLANS
 9 Months Ended
Dec. 28, 2019
Retirement Benefits [Abstract]  
PENSION PLANS PENSION PLANS
The components of pension cost (income) for VF’s defined benefit plans were as follows:
 
 
Three Months Ended December
 
 
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
 
2019
 
 
2018
Service cost – benefits earned during the period
 
$
3,401

 
 
$
6,097

 
 
$
10,192

 
 
$
17,882

Interest cost on projected benefit obligations
 
14,581

 
 
15,807

 
 
44,085

 
 
47,638

Expected return on plan assets
 
(23,176
)
 
 
(23,185
)
 
 
(69,505
)
 
 
(70,216
)
Settlement charges
 
24,943

 
 
662

 
 
25,462

 
 
8,846

Curtailments
 
—

 
 
—

 
 
—

 
 
9,483

Amortization of deferred amounts:
 
 
 
 

 
 
 
 
 
 
Net deferred actuarial losses
 
4,203

 
 
6,676

 
 
12,236

 
 
22,153

Deferred prior service costs (credits)
 
13

 
 
(58
)
 
 
38

 
 
552

Net periodic pension cost (income)
 
$
23,965

 
 
$
5,999

 
 
$
22,508

 
 
$
36,338


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

VF has reported the service cost component of net periodic pension cost (income) in operating income and the other components (which include interest cost, expected return on plan assets, amortization of prior service costs (credits) and actuarial losses) in the other income (expense), net line item in the Consolidated Statements of Income.

VF contributed $13.1 million to its defined benefit plans during the nine months ended December 2019, and intends to make approximately $13.2 million of contributions during the remainder of Fiscal 2020.
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 nine months ended December 2018.
During the three months ended December 2019, the Company offered former employees in the U.S. qualified plan a one-time option to receive a distribution of their deferred vested benefits.
Approximately 2,400 participants accepted a distribution, representing approximately 40% of offered participants and an approximate 10% reduction in the total number of plan participants. In December 2019, the plan paid approximately $130 million in lump-sum distributions to settle approximately $170 million of projected benefit obligations related to these participants. VF recorded a $22.9 million settlement charge in the other income (expense), net line item in the Consolidated Statement of Income during the three months ended December 2019 to recognize the related deferred actuarial losses in accumulated OCI.
Additionally, VF reported $2.0 million and $2.5 million of settlement charges in the other income (expense), net line item in the Consolidated Statements of Income for the three and nine months ended December 2019, respectively, as well as $0.7 million and $8.8 million for the three and nine months ended December 2018, respectively. The settlement charges related to the recognition of deferred actuarial losses resulting from lump sum payments of retirement benefits in the supplemental defined benefit pension plan.
Actuarial assumptions used in the interim valuations were reviewed and revised as appropriate. The discount rates used to determine the pension obligations were as follows:
 
 
December 31, 2019
 
 
September 30, 2019
U.S. qualified defined benefit pension plan
 
3.34
%
 
 
N/A

Supplemental defined benefit pension plan
 
3.35
%
 
 
3.23
%