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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] Ìý
RESTRUCTURING RESTRUCTURING
The ±¬×ߺÚÁÏ 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 $0.7Ìýmillion 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 ±¬×ߺÚÁÏ has not recognized any significant
incremental costs related to accruals for the year ended March 2023 or prior periods.
Of the $30.5Ìýmillion 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 $ 676Ìý $ 2,094Ìý
Accelerated depreciation —Ìý 3,668Ìý
Contract termination and other 19Ìý 344Ìý
Total restructuring charges $ 695Ìý $ 6,106Ìý
Restructuring costs by business segment are as follows:
Three Months Ended June
(In thousands) 2023 2022
Outdoor $ 242Ìý $ —Ìý
Active 434Ìý —Ìý
Work —Ìý —Ìý
Corporate and other 19Ìý 6,106Ìý
Total $ 695Ìý $ 6,106Ìý
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 $ 38,721Ìý $ 6,545Ìý $ 45,266Ìý
Charges 676Ìý —Ìý 676Ìý
Cash payments and settlements (9,305) (4,041) (13,346)
Adjustments to accruals (1,587) (585) (2,172)
Impact of foreign currency 15Ìý 16Ìý 31Ìý
Accrual at June 2023 $ 28,520Ìý $ 1,935Ìý $ 30,455Ìý