Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.24.3
RESTRUCTURING
 6 Months Ended
Sep. 28, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities. A description of significant restructuring programs and other restructuring charges is provided below.

Reinvent

On October 30, 2023, VF introduced 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 it will incur approximately $190.0 million to $210.0 million in restructuring 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 70% will relate to severance and employee-related benefits and the remainder will primarily relate to asset impairments and write-downs. Cash payments are generally expected to be paid within one year of charges incurred. During the six months ended September 2024, $21.3 million of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges related to Reinvent for the three and six months ended September 2024, and the cumulative charges recorded since the inception of Reinvent were as follows:
(In thousands) Three Months Ended September 2024 Six Months Ended September 2024
Cumulative Charges
Type of Cost Statement of Operations Location
Severance and employee-related benefits Selling, general and administrative expenses $ 8,158  $ 19,299  $ 84,121 
Severance and employee-related benefits Cost of goods sold —  181  4,691 
Contract termination and other Selling, general and administrative expenses —  737  737 
Contract termination and other Cost of goods sold —  157  157 
Asset impairments and write-downs Selling, general and administrative expenses —  500  39,886 
Pension withdrawal Selling, general and administrative expenses 3,619  3,619  3,619 
Accelerated depreciation Selling, general and administrative expenses 18  879  879 
Accelerated depreciation Cost of goods sold —  17  17 
Total Reinvent Restructuring Charges $ 11,795  $ 25,389  $ 134,107 
All restructuring charges related to Reinvent recognized in the three and six months ended September 2024 were reported within 'Corporate and other' expenses in Note 14, Reportable Segment Information.
Other Restructuring Charges

Other Restructuring Charges are related to various approved initiatives. The type of cost and respective location of Other Restructuring Charges for the three and six months ended September 2024 and 2023 were as follows:
Three Months Ended September Six Months Ended September
(In thousands) 2024 2023 2024 2023
Type of Cost Statement of Operations Location
Severance and employee-related benefits Selling, general and administrative expenses $ —  $ —  $ —  $ 676 
Contract termination and other Selling, general and administrative expenses 154  435  591  454 
Total Other Restructuring Charges $ 154  $ 435  $ 591  $ 1,130 
Other Restructuring Charges by business segment were as follows:
Three Months Ended September Six Months Ended September
(In thousands) 2024 2023 2024 2023
Outdoor $ —  $ —  $ —  $ 242 
Active —  —  —  434 
Work —  —  —  — 
Corporate and other 154  435  591  454 
Total $ 154  $ 435  $ 591  $ 1,130 
Consolidated Restructuring Charges
The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges for the six-month period ended September 2024 was as follows:
(In thousands) Severance Other Total
Accrual at March 2024 $ 60,160  $ 345  $ 60,505 
Charges 19,480  894  20,374 
Cash payments and settlements (23,041) (902) (23,943)
Adjustments to accruals (292) —  (292)
Impact of foreign currency 56  —  56 
Accrual at September 2024 $ 56,363  $ 337  $ 56,700 
Of the $56.7 million total restructuring accrual at September 2024, $54.8 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $1.9 million will be paid out beyond the next 12 months and thus is classified within other liabilities. The Company has not recognized any significant incremental costs related to the accruals for the year ended March 2024 or prior periods.