VF 401K SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Note A - Description of the Plan
The following description of the VF 401K Savings Plan (the 'Plan') provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions.
The Plan, which is sponsored by VF Corporation ('VF' or the 'Company'), is a defined contribution plan under Section 401(k) of the Internal Revenue Code ('IRC') covering substantially all U.S. employees of VF and its subsidiaries. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ('ERISA'). The Plan Administrator is the VF Retirement Plans Committee (the 'Committee').
Effective January 1, 2018, the Williamson-Dickie Manufacturing Company Employee Profit Sharing and Retirement Plan was merged into the Plan. Williamson-Dickie Manufacturing Company was acquired by VF Corporation on October 1, 2017. The amendment date to merge the Plans was December 15, 2017. As a result of the merger, the net assets available for benefits totaling $55,529,258 and related participant accounts were transferred into the Plan. In addition, $1,604,722 in loan balances accompanied by applicable security were transferred to the Plan.
Eligible employees may elect to contribute between 1% and 50% of their annual compensation on a pre-taxor Roth 401K basis or any combination of the two, as defined in the Plan, subject to certain IRC limitations. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-upcontributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Plan utilizes a safe harbor design under Internal Revenue Service ('IRS') regulations in which employee pre-taxand employer matching contributions are not subject to discrimination testing. The Company matches 100% on the first 6% of compensation that a participant contributes to the Plan. Effective January 1, 2018, the Plan was amended to include an eligible automatic enrollment contribution arrangement. Participants are automatically enrolled at a 2% deferral contribution upon attainment of the eligibility requirements, unless the Plan receives documentation from the participant before this date to do otherwise. Effective September 1, 2018, the Plan was amended to include Roth 401K contributions and rollovers.
Individual accounts are maintained by the Plan's record-keeper for each Plan participant. Each participant's account is credited with the participant's contributions, the Company's matching contributions, and an allocation of investment funds' earnings, and is charged with an allocation of administrative expenses, investment funds' losses, and withdrawals including benefit payments. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
Participants immediately vest in their contributions, and in the Company's safe harbor matching contributions, plus actual earnings thereon. Participants vest ratably by month in the Company's contributions made prior to 2015, plus actual earnings thereon, and are fully vested after 5 years of service or upon normal retirement, disability or death.
Fidelity Management Trust Company ('Fidelity') currently serves as trustee for all Plan investments. Participants may direct the investment of their contributions and the Company's safe harbor matching contributions into one or more formal investment options offered by the Plan, including various mutual funds, collective investment trusts, a separately managed fixed income fund, and the VF Corporation Common Stock fund, or into various other mutual funds and exchange-traded funds available through a self-directed brokerage account. The terms of the Plan also contain Employee Stock Ownership Plan ('ESOP') features that are not currently elected by the Plan. As part of the ESOP terms, participants may elect to have dividends from the VF Corporation Common Stock fund paid to them outside of the Plan in cash instead of being reinvested in their Plan account. For the year ended December 31, 2018, approximately $109,000 in dividends were paid to participants in cash.