Quarterly report pursuant to Section 13 or 15(d)

PENSION PLANS

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PENSION PLANS
 6 Months Ended
Sep. 30, 2023
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) 2023 2022 2023 2022
Service cost – benefits earned during the period $ 2,237  $ 2,626  $ 4,429  $ 5,272 
Interest cost on projected benefit obligations 11,775  10,680  23,587  23,311 
Expected return on plan assets (15,902) (14,752) (31,779) (33,612)
Settlement charges 7  1,141  3,299  92,902 
Amortization of deferred amounts:
Net deferred actuarial losses 4,170  3,953  8,402  7,674 
Deferred prior service credits (137) (111) (272) (223)
Net periodic pension cost $ 2,150  $ 3,537  $ 7,666  $ 95,324 
VF has reported the service cost component of net periodic pension cost in operating income (loss) and the other components, which include interest cost, expected return on plan assets, settlement charges and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations.
VF contributed $17.8 million to its defined benefit plans during the six months ended September 2023, and intends to make approximately $12.1 million of contributions during the remainder of Fiscal 2024.
VF recorded $3.3 million in settlement charges in the other income (expense), net line item in the Consolidated Statement of Operations for the six months ended September 2023, as well as $1.1 million for both the three and six months ended September 2022. 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 rate used to
determine the supplemental defined benefit pension obligation as of September 2023 and June 2023 was 6.10% and 5.44%, respectively.
Additionally, in the first quarter of Fiscal 2023, VF entered into an agreement with The Prudential Insurance Company of America (“Prudential”) to purchase an irrevocable group annuity contract relating to approximately $330.0 million of the U.S. qualified defined benefit pension plan obligations. The transaction closed on June 30, 2022 and was funded entirely by existing assets of the plan. Under the group annuity contract, Prudential assumed responsibility for benefit payments and annuity administration for approximately 17,700 retirees and beneficiaries. The transaction did not change the amount or timing of monthly retirement benefit payments. VF recorded a $91.8 million settlement charge in the other income (expense), net line item in the Consolidated Statement of Operations during the six months ended September 2022 to recognize the related deferred actuarial losses in accumulated other comprehensive loss (“OCL”).