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 | % | ||||