Annual report [Section 13 and 15(d), not S-K Item 405]

RESTRUCTURING

v3.25.1
RESTRUCTURING
 12 Months Ended
Mar. 29, 2025
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 $200.0 million to $210.0 million in restructuring charges in connection with Reinvent, and actions are expected to be completed by the end of the first quarter of Fiscal 2026.
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 year ended March 2025, $53.3 million of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges related to Reinvent within VF's Consolidated Statements of Operations for the years ended March 2025 and 2024, and the cumulative charges recorded since the inception of Reinvent were as follows:
Year Ended March
Cumulative Charges
(In thousands) 2025 2024
Type of Cost Location
Severance and employee-related benefits SG&A expenses $ 66,002  $ 64,822  $ 130,824 
Severance and employee-related benefits Cost of goods sold 1,673  4,510  6,183 
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 8,783  39,386  48,169 
Pension withdrawal SG&A expenses 3,619  —  3,619 
Curtailment gains Other income (expense), net (936) —  (936)
Accelerated depreciation SG&A expenses 1,317  —  1,317 
Accelerated depreciation Cost of goods sold 17  —  17 
Total Reinvent Restructuring Charges $ 81,369  $ 108,718  $ 190,087 
All restructuring charges related to Reinvent recognized in the years ended March 2025 and 2024 were reported within 'Corporate and other' expenses in Note 21, 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 Statements of Operations for the years ended March 2025, 2024 and 2023 were as follows:
Year Ended March
(In thousands) 2025 2024 2023
Type of Cost Location
Severance and employee-related benefits SG&A expenses $ —  $ 676  $ 52,999 
Severance and employee-related benefits Cost of goods sold —  —  3,481 
Accelerated depreciation SG&A expenses —  —  6,645 
Accelerated depreciation Cost of goods sold —  —  1,371 
Contract termination and other SG&A expenses 591  1,326  10,289 
Total Other Restructuring Charges $ 591  $ 2,002  $ 74,785 
Other Restructuring Charges by business segment were as follows:
Year Ended March
(In thousands) 2025 2024 2023
Outdoor $ —  $ 242  $ 1,088 
Active —  434  1,478 
Work —  —  9 
Corporate and other 591  1,326  72,210 
Total $ 591  $ 2,002  $ 74,785 
Consolidated Restructuring Charges
The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges was as follows:
(In thousands) Severance Other Total
Accrual at March 2023 $ 37,768  $ 6,545  $ 44,313 
Charges 70,008  —  70,008 
Cash payments and settlements (41,902) (5,923) (47,825)
Adjustments to accruals (5,660) (287) (5,947)
Impact of foreign currency (54) 10  (44)
Accrual at March 2024 60,160  345  60,505 
Charges 67,675  894  68,569 
Cash payments and settlements (55,935) (902) (56,837)
Adjustments to accruals (6,432) —  (6,432)
Impact of foreign currency (218) —  (218)
Accrual at March 2025 $ 65,250  $ 337  $ 65,587 
Of the $65.6 million total restructuring accrual at March 2025, $64.9 million is expected to be paid within the next 12 months and is classified within accrued liabilities. The remaining $0.7 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.