Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.23.2
RESTRUCTURING
 3 Months Ended
Jul. 01, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities, primarily related to severance and employee-related benefits. During the three months ended June 2023, VF recognized $0.7 million of restructuring charges, related to approved initiatives. All restructuring charges recognized in the three months ended June 2023, were reflected in selling, general and administrative expenses. The Company has not recognized any significant
incremental costs related to accruals for the year ended March 2023 or prior periods.
Of the $30.5 million total restructuring accrual at June 2023, $29.2 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $1.3 million will be paid out beyond the next 12 months and thus is classified within other liabilities.
The components of the restructuring charges are as follows:
Three Months Ended June
(In thousands) 2023 2022
Severance and employee-related benefits $ 676  $ 2,094 
Accelerated depreciation —  3,668 
Contract termination and other 19  344 
Total restructuring charges $ 695  $ 6,106 
Restructuring costs by business segment are as follows:
Three Months Ended June
(In thousands) 2023 2022
Outdoor $ 242  $ — 
Active 434  — 
Work —  — 
Corporate and other 19  6,106 
Total $ 695  $ 6,106 
The activity in the restructuring accrual for the three-month period ended June 2023 was as follows:
(In thousands) Severance Other Total
Accrual at March 2023 $ 38,721  $ 6,545  $ 45,266 
Charges 676  —  676 
Cash payments and settlements (9,305) (4,041) (13,346)
Adjustments to accruals (1,587) (585) (2,172)
Impact of foreign currency 15  16  31 
Accrual at June 2023 $ 28,520  $ 1,935  $ 30,455