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v3.3.1.900

Retirement and Savings Benefit Plans (Tables) | 12 Months Ended
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Jan. 02, 2016
Components of Pension Cost | The components of pension cost for VF’s defined benefit plans were as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | In thousands |
Service cost — benefits earned during the year |  | $ | 29,223 |  |  | $ | 24,163 |  |  | $ | 25,445 |
Interest cost on projected benefit obligations |  |  | 77,620 |  |  |  | 81,496 |  |  |  | 72,003 |
Expected return on plan assets |  |  | (111,095 | ) |  |  | (90,674 | ) |  |  | (94,585 | )
Settlement charges |  |  | 4,062 |  |  |  | — |  |  |  | — |
Amortization of deferred amounts: |  |  |  |  |  |  |  |  |  |  |  |
Net deferred actuarial losses |  |  | 61,966 |  |  |  | 37,518 |  |  |  | 85,356 |
Deferred prior service costs |  |  | 3,038 |  |  |  | 5,445 |  |  |  | 1,270 |
Total pension expense |  | $ | 64,814 |  |  | $ | 57,948 |  |  | $ | 89,489 |
Weighted average actuarial assumptions used to determine pension expense: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 3.93 | % |  |  | 4.64 | % |  |  | 3.91 | %
Expected long-term return on plan assets |  |  | 6.05 | % |  |  | 4.73 | % |  |  | 5.70 | %
Rate of compensation increase |  |  | 3.91 | % |  |  | 3.53 | % |  |  | 3.82 | %
Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations | The following provides a reconciliation of the changes in fair value of VF’s defined benefit plan assets and projected benefit obligations for each year, and the funded status at the end of each year:
|  | 2015 |  |  | 2014 |
|  | In thousands |
Fair value of plan assets, beginning of year |  | $ | 1,628,254 |  |  | $ | 1,467,526 |
Actual return on plan assets |  |  | (56,624 | ) |  |  | 189,824 |
VF contributions |  |  | 273,520 |  |  |  | 67,808 |
Participant contributions |  |  | 3,483 |  |  |  | 3,429 |
Benefits paid |  |  | (87,994 | ) |  |  | (88,746 | )
Currency translation |  |  | (5,265 | ) |  |  | (11,587 | )
Fair value of plan assets, end of year |  |  | 1,755,374 |  |  |  | 1,628,254 |
Projected benefit obligations, beginning of year |  |  | 1,999,947 |  |  |  | 1,688,701 |
Service cost |  |  | 29,223 |  |  |  | 24,163 |
Interest cost |  |  | 77,620 |  |  |  | 81,496 |
Participant contributions |  |  | 3,483 |  |  |  | 3,429 |
Actuarial (gain) loss |  |  | (101,387 | ) |  |  | 306,797 |
Benefits paid |  |  | (87,994 | ) |  |  | (88,746 | )
Plan amendments |  |  | (1,510 | ) |  |  | 263 |
Currency translation |  |  | (7,367 | ) |  |  | (16,156 | )
Projected benefit obligations, end of year |  |  | 1,912,015 |  |  |  | 1,999,947 |
Funded status, end of year |  | $ | (156,641 | ) |  | $ | (371,693 | )
Pension benefits are reported in the balance sheet as a net asset or liability based on the overfunded or underfunded status of the defined benefit plans, assessed on a plan-by-plan basis.
|  | 2015 |  |  | 2014 |
|  | In thousands |
Amounts included in Consolidated Balance Sheets: |  |  |  |  |  |  |  |
Noncurrent assets (Note G) |  | $ | 9,273 |  |  | $ | 1,491 |
Current liabilities (Note I) |  |  | (8,480 | ) |  |  | (8,880 | )
Noncurrent liabilities (Note K) |  |  | (157,434 | ) |  |  | (364,304 | )
Funded status |  | $ | (156,641 | ) |  | $ | (371,693 | )
Accumulated other comprehensive (income) loss, pretax: |  |  |  |  |  |  |  |
Net deferred actuarial losses |  | $ | 586,828 |  |  | $ | 588,847 |
Deferred prior service costs |  |  | 17,459 |  |  |  | 21,950 |
Total accumulated other comprehensive (income) loss, pretax |  | $ | 604,287 |  |  | $ | 610,797 |
Accumulated benefit obligations |  | $ | 1,827,521 |  |  | $ | 1,916,070 |
Weighted average actuarial assumptions used to determine pension obligations: |  |  |  |  |  |  |  |
Discount rate |  |  | 4.29 | % |  |  | 3.47 | %
Rate of compensation increase |  |  | 3.90 | % |  |  | 3.34 | %
Fair Value of Investments Held by Pension Plan | The fair value of investments held by VF’s defined benefit plans at December 2015 and 2014, by asset class, is summarized below. See Note S for a description of the three levels of the fair value measurement hierarchy.
|  | Total Plan Assets |  |  | Fair Value Measurements |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | In thousands |
December 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plan assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 2,790 |  |  | $ | 2,790 |  |  | $ | — |  |  | $ | — |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 11 |  |  |  | — |  |  |  | 11 |  |  |  | — |
Insurance contracts |  |  | 50,856 |  |  |  | — |  |  |  | 50,856 |  |  |  | — |
Commodities |  |  | (439 | ) |  |  | (439 | ) |  |  | — |  |  |  | — |
Total plan assets in the fair value hierarchy |  |  | 53,218 |  |  | $ | 2,351 |  |  | $ | 50,867 |  |  | $ | — |
Plan assets measured at net asset value (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  |  | 23,538 |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | 107,190 |  |  |  |  |  |  |  |  |  |  |  |  |
International |  |  | 179,256 |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and international bonds |  |  | 1,232,691 |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative investments |  |  | 159,481 |  |  |  |  |  |  |  |  |  |  |  |  |
Total plan assets measured at net asset value |  |  | 1,702,156 |  |  |  |  |  |  |  |  |  |  |  |  |
Total plan assets |  | $ | 1,755,374 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Total Plan Assets |  |  | Fair Value Measurements |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | In thousands |
December 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plan assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 3,220 |  |  | $ | 3,220 |  |  | $ | — |  |  | $ | — |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 16 |  |  |  | — |  |  |  | 16 |  |  |  | — |
Insurance contracts |  |  | 46,059 |  |  |  | — |  |  |  | 46,059 |  |  |  | — |
Commodities |  |  | (1,393 | ) |  |  | (1,393 | ) |  |  | — |  |  |  | — |
Total plan assets in the fair value hierarchy |  |  | 47,902 |  |  | $ | 1,827 |  |  | $ | 46,075 |  |  | $ | — |
Plan assets measured at net asset value (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  |  | 61,788 |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | 180,258 |  |  |  |  |  |  |  |  |  |  |  |  |
International |  |  | 219,259 |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and international bonds |  |  | 986,125 |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative investments |  |  | 132,922 |  |  |  |  |  |  |  |  |  |  |  |  |
Total plan assets measured at net asset value |  |  | 1,580,352 |  |  |  |  |  |  |  |  |  |  |  |  |
Total plan assets |  | $ | 1,628,254 |  |  |  |  |  |  |  |  |  |  |  |  |
(a) | As discussed in Note A, investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been removed from the total plan assets in the fair value hierarchy.

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- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=58740216&loc=d3e2439-114920 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=58740216&loc=d3e2417-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=58740216&loc=d3e2410-114920 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=58242635&loc=d3e4179-114921 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=58740216&loc=d3e1928-114920 + Details
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