| RESTRUCTURING The ±¬×ߺÚÁÏ 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 ±¬×ߺÚÁÏ currently estimates it will incur approximately $190.0Ìýmillion to $210.0Ìýmillion 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 ±¬×ߺÚÁÏ 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, $21.3Ìýmillion of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges related to Reinvent for the three and six months ended September 2024, and the cumulative charges recorded since the inception of Reinvent were as follows:
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| (In thousands) |
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Three Months Ended September 2024 |
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Six Months Ended September 2024 |
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Cumulative Charges
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| Type of Cost |
Statement of Operations Location |
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| Severance and employee-related benefits |
Selling, general and administrative expenses |
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$ |
8,158Ìý |
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$ |
19,299Ìý |
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$ |
84,121Ìý |
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| Severance and employee-related benefits |
CostÌýofÌýgoodsÌýsold |
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—Ìý |
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181Ìý |
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4,691Ìý |
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| Contract termination and other |
Selling, general and administrative expenses |
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—Ìý |
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737Ìý |
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737Ìý |
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| Contract termination and other |
CostÌýofÌýgoodsÌýsold |
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—Ìý |
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157Ìý |
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157Ìý |
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| Asset impairments and write-downs |
Selling, general and administrative expenses |
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—Ìý |
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500Ìý |
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39,886Ìý |
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| Pension withdrawal |
Selling, general and administrative expenses |
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3,619Ìý |
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3,619Ìý |
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3,619Ìý |
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| Accelerated depreciation |
Selling, general and administrative expenses |
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18Ìý |
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879Ìý |
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879Ìý |
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| Accelerated depreciation |
CostÌýofÌýgoodsÌýsold |
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—Ìý |
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17Ìý |
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17Ìý |
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| Total Reinvent Restructuring Charges |
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$ |
11,795Ìý
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$ |
25,389Ìý
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$ |
134,107Ìý
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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:
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Three Months Ended September |
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Six Months Ended September |
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| (In thousands) |
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2024 |
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2023 |
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2024 |
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2023 |
| Type of Cost |
Statement of Operations Location |
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| Severance and employee-related benefits |
Selling, general and administrative expenses |
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$ |
—Ìý |
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$ |
—Ìý |
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$ |
—Ìý |
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$ |
676Ìý |
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| Contract termination and other |
Selling, general and administrative expenses |
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154Ìý |
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435Ìý |
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591Ìý |
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454Ìý |
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| Total Other Restructuring Charges |
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$ |
154Ìý
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$ |
435Ìý
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$ |
591Ìý
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$ |
1,130Ìý
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Other Restructuring Charges by business segment were as follows:
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Three Months Ended September |
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Six Months Ended September |
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| (In thousands) |
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2024 |
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2023 |
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2024 |
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2023 |
| Outdoor |
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$ |
—Ìý |
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$ |
—Ìý |
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$ |
—Ìý |
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$ |
242Ìý |
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| Active |
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—Ìý |
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—Ìý |
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—Ìý |
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434Ìý |
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| Work |
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—Ìý |
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—Ìý |
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—Ìý |
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—Ìý |
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| Corporate and other |
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154Ìý |
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435Ìý |
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591Ìý |
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454Ìý |
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| Total |
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$ |
154Ìý
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$ |
435Ìý
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$ |
591Ìý
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$ |
1,130Ìý
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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:
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| (In thousands) |
Severance |
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Other |
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Total |
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| Accrual at March 2024 |
$ |
60,160Ìý
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$ |
345Ìý
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$ |
60,505Ìý
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| Charges |
19,480Ìý |
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894Ìý |
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20,374Ìý |
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| Cash payments and settlements |
(23,041) |
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(902) |
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(23,943) |
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| Adjustments to accruals |
(292) |
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—Ìý |
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(292) |
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| Impact of foreign currency |
56Ìý |
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—Ìý |
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56Ìý |
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| Accrual at September 2024 |
$ |
56,363Ìý
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$ |
337Ìý
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$ |
56,700Ìý
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