Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.24.4
RESTRUCTURING
 9 Months Ended
Dec. 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 nine months ended December 2024, $37.4 million of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges related to Reinvent within VF's Consolidated Statement of Operations for the three and nine months ended December 2024 and 2023, and the cumulative charges recorded since the inception of Reinvent were as follows:
Three Months Ended December Nine Months Ended December Cumulative Charges
(In thousands) 2024 2023 2024 2023
Type of Cost Location
Severance and employee-related benefits SG&A expenses $ 16,976  $ 27,392  $ 36,275  $ 27,392  $ 101,097 
Severance and employee-related benefits Cost of goods sold —  4,210  181  4,210  4,691 
Contract termination and other SG&A expenses —  —  737  —  737 
Contract termination and other Cost of goods sold —  —  157  —  157 
Asset impairments and write-downs SG&A expenses —  18,739  500  18,739  39,886 
Pension withdrawal SG&A expenses —  —  3,619  —  3,619 
Curtailment gains Other income (expense), net (638) —  (638) —  (638)
Accelerated depreciation SG&A expenses 50  —  929  —  929 
Accelerated depreciation Cost of goods sold —  —  17  —  17 
Total Reinvent Restructuring Charges $ 16,388  $ 50,341  $ 41,777  $ 50,341  $ 150,495 
All restructuring charges related to Reinvent recognized in the three and nine months ended December 2024 and December 2023 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 within VF's Consolidated Statement of Operations for the three and nine months ended December 2024 and 2023 were as follows:
Three Months Ended December Nine Months Ended December
(In thousands) 2024 2023 2024 2023
Type of Cost Location
Severance and employee-related benefits SG&A expenses $ —  $ —  $ —  $ 676 
Contract termination and other SG&A expenses —  435  591  889 
Total Other Restructuring Charges $ —  $ 435  $ 591  $ 1,565 
Other Restructuring Charges by business segment were as follows:
Three Months Ended December Nine Months Ended December
(In thousands) 2024 2023 2024 2023
Outdoor $ —  $ —  $ —  $ 242 
Active —  —  —  434 
Work —  —  —  — 
Corporate and other —  435  591  889 
Total $ —  $ 435  $ 591  $ 1,565 
Consolidated Restructuring Charges
The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges for the nine-month period ended December 2024 was as follows:
(In thousands) Severance Other Total
Accrual at March 2024 $ 60,160  $ 345  $ 60,505 
Charges 36,456  894  37,350 
Cash payments and settlements (39,761) (902) (40,663)
Adjustments to accruals (1,647) —  (1,647)
Impact of foreign currency (595) —  (595)
Accrual at December 2024 $ 54,613  $ 337  $ 54,950 
Of the $55.0 million total restructuring accrual at December 2024, $53.5 million is expected to be paid within the next 12 months and is classified within accrued liabilities. The remaining $1.5 million will be paid beyond the next 12 months and 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.