| 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, ±«ÓãÖ±²¥ introduced Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow ±«ÓãÖ±²¥ to achieve its full potential. The Company currently estimates it will incur approximately $200.0Ìýmillion to $210.0Ìýmillion 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, $53.3Ìýmillion of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges related to Reinvent within ±«ÓãÖ±²¥'s Consolidated Statements of Operations for the years ended March 2025 and 2024, and the cumulative charges recorded since the inception of Reinvent were as follows:
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Year Ended March |
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Cumulative Charges
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| (In thousands) |
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2025 |
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2024 |
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| Type of Cost |
Location |
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| Severance and employee-related benefits |
SG&A expenses |
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$ |
66,002Ìý |
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$ |
64,822Ìý |
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$ |
130,824Ìý |
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| Severance and employee-related benefits |
CostÌýofÌýgoodsÌýsold |
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1,673Ìý |
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4,510Ìý |
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6,183Ìý |
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| Contract termination and other |
SG&A expenses |
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737Ìý |
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—Ìý |
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737Ìý |
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| Contract termination and other |
CostÌýofÌýgoodsÌýsold |
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157Ìý |
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—Ìý |
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157Ìý |
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| Asset impairments and write-downs |
SG&A expenses |
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8,783Ìý |
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39,386Ìý |
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48,169Ìý |
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| Pension withdrawal |
SG&A expenses |
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3,619Ìý |
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—Ìý |
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3,619Ìý |
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| Curtailment gains |
Other income (expense), net |
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(936) |
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—Ìý |
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(936) |
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| Accelerated depreciation |
SG&A expenses |
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1,317Ìý |
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—Ìý |
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1,317Ìý |
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| Accelerated depreciation |
CostÌýofÌýgoodsÌýsold |
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17Ìý |
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—Ìý |
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17Ìý |
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| Total Reinvent Restructuring Charges |
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$ |
81,369Ìý
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$ |
108,718Ìý
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$ |
190,087Ìý
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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 ±«ÓãÖ±²¥'s Consolidated Statements of Operations for the years ended March 2025, 2024 and 2023 were as follows:
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Year Ended March |
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| (In thousands) |
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2025 |
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2024 |
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2023 |
| Type of Cost |
Location |
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| Severance and employee-related benefits |
SG&A expenses |
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$ |
—Ìý |
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$ |
676Ìý |
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$ |
52,999Ìý |
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| Severance and employee-related benefits |
CostÌýofÌýgoodsÌýsold |
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—Ìý |
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—Ìý |
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3,481Ìý |
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| Accelerated depreciation |
SG&A expenses |
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—Ìý |
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—Ìý |
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6,645Ìý |
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| Accelerated depreciation |
CostÌýofÌýgoodsÌýsold |
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—Ìý |
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—Ìý |
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1,371Ìý |
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| Contract termination and other |
SG&A expenses |
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591Ìý |
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1,326Ìý |
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10,289Ìý |
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| Total Other Restructuring Charges |
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$ |
591Ìý
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$ |
2,002Ìý
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$ |
74,785Ìý
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Other Restructuring Charges by business segment were as follows:
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Year Ended March |
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| (In thousands) |
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2025 |
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2024 |
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2023 |
| Outdoor |
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$ |
—Ìý |
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$ |
242Ìý |
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$ |
1,088Ìý |
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| Active |
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—Ìý |
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434Ìý |
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1,478Ìý |
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| Work |
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—Ìý |
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—Ìý |
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9Ìý |
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| Corporate and other |
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591Ìý |
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1,326Ìý |
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72,210Ìý |
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| Total |
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$ |
591Ìý
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$ |
2,002Ìý
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$ |
74,785Ìý
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Consolidated Restructuring Charges
The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges was as follows:
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| (In thousands) |
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Severance |
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Other |
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Total |
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| Accrual at March 2023 |
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$ |
37,768Ìý
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$ |
6,545Ìý
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$ |
44,313Ìý
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| Charges |
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70,008Ìý |
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—Ìý |
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70,008Ìý |
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| Cash payments and settlements |
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(41,902) |
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(5,923) |
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(47,825) |
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| Adjustments to accruals |
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(5,660) |
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(287) |
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(5,947) |
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| Impact of foreign currency |
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(54) |
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10Ìý |
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(44) |
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| Accrual at March 2024 |
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60,160Ìý
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345Ìý
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60,505Ìý
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| Charges |
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67,675Ìý |
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894Ìý |
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68,569Ìý |
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| Cash payments and settlements |
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(55,935) |
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(902) |
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(56,837) |
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| Adjustments to accruals |
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(6,432) |
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—Ìý |
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(6,432) |
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| Impact of foreign currency |
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(218) |
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—Ìý |
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(218) |
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| Accrual at March 2025 |
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$ |
65,250Ìý
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$ |
337Ìý
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$ |
65,587Ìý
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