V F CORP | 2013 | FY | 3


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:

2013 2012
In thousands

Fair value of plan assets, beginning of year

$ 1,332,211 $ 1,144,178

Actual return on plan assets

84,882 146,079

VF contributions

117,591 112,892

Participant contributions

2,975 2,677

Benefits paid

(73,308 ) (76,813 )

Currency translation

3,175 3,198

Fair value of plan assets, end of year

1,467,526 1,332,211

Projected benefit obligations, beginning of year

1,815,128 1,546,896

Service cost

25,445 23,198

Interest cost

72,003 77,013

Participant contributions

2,975 2,677

Actuarial (gain) loss

(178,414 ) 243,766

Benefits paid

(73,308 ) (76,813 )

Plan amendments

21,321 (5,518 )

Currency translation

3,551 3,909

Projected benefit obligations, end of year

1,688,701 1,815,128

Funded status, end of year

$ (221,175 ) $ (482,917 )

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.

2013 2012
In thousands

Amounts included in Consolidated Balance Sheets:

Current assets

$ 2,272 $

Current liabilities (Note J)

(9,016 ) (8,742 )

Noncurrent liabilities (Note L)

(214,431 ) (474,175 )

Funded status

$ (221,175 ) $ (482,917 )

Accumulated other comprehensive (income) loss, pretax:

Net deferred actuarial losses

$ 422,932 $ 676,373

Deferred prior service costs

27,594 7,525

$ 450,526 $ 683,898

Accumulated benefit obligations

$ 1,610,369 $ 1,751,741

Weighted-average actuarial assumptions used to determine pension obligations:

Discount rate

4.63 % 3.92 %

Rate of compensation increase

3.39 % 3.83 %

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