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Retirement and Savings Benefit Plans (Tables) | 12 Months Ended
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Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract] |
Components of Pension Cost | The components of pension cost for VF’s defined benefit plans were as follows:
| 2016 |  | 2015 |  | 2014
| In thousands
Service cost — benefits earned during the year | $ | 25,839 |  |  | $ | 29,223 |  |  | $ | 24,163 |
Interest cost on projected benefit obligations | 68,020 |  |  | 77,620 |  |  | 81,496 |
Expected return on plan assets | (99,540 | ) |  | (111,095 | ) |  | (90,674 | )
Settlement charges | 50,922 |  |  | 4,062 |  |  | — |
Amortization of deferred amounts: |  |  |  |  |
Net deferred actuarial losses | 65,212 |  |  | 61,966 |  |  | 37,518 |
Deferred prior service costs | 2,584 |  |  | 3,038 |  |  | 5,445 |
Total pension expense | $ | 113,037 |  |  | $ | 64,814 |  |  | $ | 57,948 |
Weighted average actuarial assumptions used to determine pension expense: |  |  |  |  |
Discount rate in effect for determining service cost | 4.54 | % |  | 3.93 | % |  | 4.64 | %
Discount rate in effect for determining interest cost | 3.56 | % |  | 3.93 | % |  | 4.64 | %
Expected long-term return on plan assets | 5.81 | % |  | 6.05 | % |  | 4.73 | %
Rate of compensation increase | 3.90 | % |  | 3.91 | % |  | 3.53 | %
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:
| 2016 |  | 2015
| In thousands
Fair value of plan assets, beginning of year | $ | 1,755,374 |  |  | $ | 1,628,254 |
Actual return on plan assets | 191,219 |  |  | (56,624 | )
VF contributions | 24,031 |  |  | 273,520 |
Participant contributions | 3,644 |  |  | 3,483 |
Benefits paid | (286,271 | ) |  | (87,994 | )
Currency translation | (14,700 | ) |  | (5,265 | )
Fair value of plan assets, end of year | 1,673,297 |  |  | 1,755,374 |
Projected benefit obligations, beginning of year | 1,912,015 |  |  | 1,999,947 |
Service cost | 25,839 |  |  | 29,223 |
Interest cost | 68,020 |  |  | 77,620 |
Participant contributions | 3,644 |  |  | 3,483 |
Actuarial loss (gain) | 100,242 |  |  | (101,387 | )
Benefits paid | (286,271 | ) |  | (87,994 | )
Plan amendments | — |  |  | (1,510 | )
Currency translation | (15,162 | ) |  | (7,367 | )
Projected benefit obligations, end of year | 1,808,327 |  |  | 1,912,015 |
Funded status, end of year | $ | (135,030 | ) |  | $ | (156,641 | )
Pension benefits are reported in the Consolidated Balance Sheets 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.
| 2016 |  | 2015
| In thousands
Amounts included in Consolidated Balance Sheets: |  |  |
Noncurrent assets (Note H) | $ | 41,281 |  |  | $ | 9,273 |
Current liabilities (Note J) | (10,669 | ) |  | (8,480 | )
Noncurrent liabilities (Note L) | (165,642 | ) |  | (157,434 | )
Funded status | $ | (135,030 | ) |  | $ | (156,641 | )
Accumulated other comprehensive loss, pre-tax: |  |  |
Net deferred actuarial losses | $ | 476,071 |  |  | $ | 586,828 |
Deferred prior service costs | 14,883 |  |  | 17,459 |
Total accumulated other comprehensive loss, pre-tax | $ | 490,954 |  |  | $ | 604,287 |
Accumulated benefit obligations | $ | 1,717,786 |  |  | $ | 1,827,521 |
Weighted average actuarial assumptions used to determine pension obligations: |  |  |
Discount rate | 3.87 | % |  | 4.29 | %
Rate of compensation increase | 3.78 | % |  | 3.90 | %
Fair Value of Investments Held by Pension Plan | The fair value of investments held by VF’s defined benefit plans at December 2016 and 2015, by asset class, is summarized below. Refer to Note T 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 2016 |  |  |  |  |  |  |
Plan assets |  |  |  |  |  |  |
Cash equivalents | $ | 2,896 |  |  | $ | 2,896 |  |  | $ | — |  |  | $ | — |
Fixed income securities: |  |  |  |  |  |  |
U.S. Treasury and government agencies | 10 |  |  | — |  |  | 10 |  |  | — |
Insurance contracts | 63,013 |  |  | — |  |  | 63,013 |  |  | — |
Commodities | 506 |  |  | 506 |  |  | — |  |  | — |
Total plan assets in the fair value hierarchy | 66,425 |  |  | $ | 3,402 |  |  | $ | 63,023 |  |  | $ | — |
Plan assets measured at net asset value |  |  |  |  |  |  |
Cash equivalents | 27,486 |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Domestic | 134,254 |  |  |  |  |  |  |
International | 142,772 |  |  |  |  |  |  |
Fixed income securities: |  |  |  |  |  |  |
Corporate and international bonds | 1,140,894 |  |  |  |  |  |  |
Alternative investments | 161,466 |  |  |  |  |  |  |
Total plan assets measured at net asset value | 1,606,872 |  |  |  |  |  |  |
Total plan assets | $ | 1,673,297 |  |  |  |  |  |  |
| 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 |  |  |  |  |  |  |
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 |  |  |  |  |  |  |

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