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RESTRUCTURING | 12 Months Ended
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Mar. 30, 2024
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 third quarter of Fiscal 2024, 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 it will incur approximately $130.0 million to $150.0 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 more than one-half will relate to severance and employee-related benefits and 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 year ended March 2024, VF recorded $108.7 million of charges in connection with Reinvent, of which $69.3 million related to severance and employee-related benefits and $39.4 million related to non-cash asset write-downs. As of March 2024, $19.0 million of cash payments related to the Reinvent charges have been made. During the years ended March 2024, 2023 and 2022, VF recognized $110.7 million, $75.7 million and $20.0 million, respectively, of total restructuring charges related to approved initiatives. Of the restructuring charges recognized in the year ended March 2024, $106.2 million were reflected in selling, general and administrative expenses and $4.5 million in cost of goods sold. Of the restructuring charges recognized in the year ended March 2023, $70.9 million were reflected in selling, general and administrative expenses and $4.8 million in cost of goods sold. Of the restructuring charges recognized in the year ended March 2022, $18.3 million were reflected in selling, general and administrative expenses and $1.7 million in cost of goods sold. The Company has not recognized any significant incremental costs related to the accruals for the year ended March 2023 or prior periods. Of the total restructuring accrual at March 2024, $52.5 million is expected to be paid out within the next 12 months and is classified within accrued liabilities (Note 14). The remaining $8.2 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:
|  | Year Ended March
(In thousands) |  | 2024 |  |  | 2023 |  | 2022
Severance and employee-related benefits |  | $ | 70,008 |  |  |  | $ | 57,433 |  |  | $ | 12,283 |
Asset impairments and write-downs |  | 39,386 |  |  |  | — |  |  | — |
Accelerated depreciation |  | — |  |  |  | 8,016 |  |  | 7,016 |
Contract termination and other |  | 1,326 |  |  |  | 10,289 |  |  | 703 |
Total restructuring charges |  | $ | 110,720 |  |  |  | $ | 75,738 |  |  | $ | 20,002 |
Restructuring costs by business segment are as follows:
|  | Year Ended March
(In thousands) |  | 2024 |  |  | 2023 |  | 2022
Outdoor |  | $ | 242 |  |  |  | $ | 1,088 |  |  | $ | 4,523 |
Active |  | 434 |  |  |  | 1,478 |  |  | 1,008 |
Work |  | — |  |  |  | 9 |  |  | 2,315 |
Corporate and other |  | 110,044 |  |  |  | 73,163 |  |  | 12,156 |
Total |  | $ | 110,720 |  |  |  | $ | 75,738 |  |  | $ | 20,002 |
The activity in the restructuring accrual was as follows:
(In thousands) |  | Severance |  | Other |  | Total |
Accrual at March 2022 |  | $ | 25,640 |  |  | $ | 1,211 |  |  | $ | 26,851 |  |
Charges |  | 57,433 |  |  | 5,190 |  |  | 62,623 |  |
Cash payments and settlements |  | (41,338) |  |  | (345) |  |  | (41,683) |  |
Adjustments to accruals |  | (3,236) |  |  | 40 |  |  | (3,196) |  |
Impact of foreign currency |  | 222 |  |  | 449 |  |  | 671 |  |
Accrual at March 2023 |  | 38,721 |  |  | 6,545 |  |  | 45,266 |  |
Charges |  | 70,008 |  |  | — |  |  | 70,008 |  |
Cash payments and settlements |  | (42,684) |  |  | (5,923) |  |  | (48,607) |  |
Adjustments to accruals |  | (5,660) |  |  | (287) |  |  | (5,947) |  |
Impact of foreign currency |  | (54) |  |  | 10 |  |  | (44) |  |
Accrual at March 2024 |  | $ | 60,331 |  |  | $ | 345 |  |  | $ | 60,676 |  |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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