Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.20.2
RESTRUCTURING
 3 Months Ended
Jun. 27, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company typically 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 2020, VF recognized $22.5 million of restructuring charges related to approved restructuring initiatives. Of the $22.5 million of restructuring charges recognized in the three months ended June 2020, $8.5 million were reflected in selling, general and administrative expenses and $14.0 million in cost of goods sold. The Company
has not recognized any significant incremental costs related to accruals for the year ended March 2020 or prior periods.
Of the $49.9 million total restructuring accrual at June 2020, $49.6 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $0.3 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) 2020 2019
Severance and employee-related benefits $ 18,509    $ 2,224   
Accelerated depreciation 3,807    —   
Contract termination and other 141    2,121   
Total restructuring charges $ 22,457    $ 4,345   
Restructuring costs by business segment are as follows:
Three Months Ended June
(In thousands) 2020 2019
Outdoor $ 4,750    $ 4,215   
Active 370    20   
Work 429    110   
Corporate and other 16,908    —   
Total $ 22,457    $ 4,345   
The activity in the restructuring accrual for the three-month period ended June 2020 was as follows:
(In thousands) Severance Other Total
Accrual at March 2020 $ 38,052    $ 2,888    $ 40,940   
Charges 18,509    141    18,650   
Cash payments (8,806)   (421)   (9,227)  
Adjustments to accruals 173    —    173   
Impact of foreign currency (639)   34    (605)  
Accrual at June 2020 $ 47,289    $ 2,642    $ 49,931