Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

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RESTRUCTURING
 9 Months Ended
Dec. 30, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities. Beginning in the three months ended December 2023, restructuring costs include charges related to Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow VF to achieve its full potential. The Company currently estimates that it will incur approximately $80.0 million to $130.0 million in restructuring and restructuring-related charges in connection with Reinvent, and that substantially all actions will be completed by the end of Fiscal 2025. Of the total estimated charges, the Company anticipates that approximately one-half will relate to severance and employee-related benefits and that the remainder will relate to asset impairments and other non-cash write-downs. Cash payments are generally expected to be paid within one year of charges incurred. During the three and nine months ended December 2023, VF recorded $50.3 million of charges in connection with Reinvent, of which $31.6 million related to severance and employee-related benefits and $18.7 million related to non-cash asset write-downs. As of December 2023,
$3.7 million of cash payments related to the Reinvent charges have been made.
During the three and nine months ended December 2023, VF recognized $50.8 million and $51.9 million, respectively, of total restructuring charges, related to approved initiatives. Of the total restructuring charges recognized in the three and nine months ended December 2023, $46.6 million and $47.7 million were reflected in selling, general and administrative expenses, respectively, and $4.2 million in cost of goods sold in both periods. The Company has not recognized any significant incremental costs related to accruals for the year ended March 2023 or prior periods.
Of the $45.2 million total restructuring accrual at December 2023, $43.7 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $1.5 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 December Nine Months Ended December
(In thousands) 2023 2022 2023 2022
Severance and employee-related benefits $ 31,602  $ 10,607  $ 32,278  $ 50,165 
Asset impairments and write-downs 18,739  —  18,739  — 
Accelerated depreciation —  25  —  7,276 
Contract termination and other 435  460  889  5,563 
Total restructuring charges $ 50,776  $ 11,092  $ 51,906  $ 63,004 
Restructuring costs by business segment are as follows:
Three Months Ended December Nine Months Ended December
(In thousands) 2023 2022 2023 2022
Outdoor $ —  $ 391  $ 242  $ 887 
Active —  —  434  1,478 
Work —  —  —  9 
Corporate and other 50,776  10,701  51,230  60,630 
Total $ 50,776  $ 11,092  $ 51,906  $ 63,004 
The activity in the restructuring accrual for the nine-month period ended December 2023 was as follows:
(In thousands) Severance Other Total
Accrual at March 2023 $ 38,721  $ 6,545  $ 45,266 
Charges 32,278  —  32,278 
Cash payments and settlements (24,574) (4,839) (29,413)
Adjustments to accruals (2,398) (582) (2,980)
Impact of foreign currency 37  26  63 
Accrual at December 2023 $ 44,064  $ 1,150  $ 45,214