Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.20.2
RESTRUCTURING
 6 Months Ended
Sep. 26, 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 and six months ended September 2020, VF recognized $23.4 million and $45.8 million of restructuring charges, respectively, related to approved initiatives. Of the restructuring charges recognized in the three and six months ended September 2020, $20.2 million and $28.7 million were reflected in selling, general and administrative expenses, respectively, and $3.2 million and $17.1 million in cost of goods
sold, respectively. The Company has not recognized any significant incremental costs related to accruals for the year ended March 2020 or prior periods.
Of the $47.3 million total restructuring accrual at September 2020, $45.0 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $2.3 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 September Six Months Ended September
(In thousands) 2020 2019 2020 2019
Severance and employee-related benefits $ 9,883  $ 1,033  $ 28,392  $ 3,257 
Asset impairments 10,557  —  10,557  — 
Accelerated depreciation 2,857  —  6,664  — 
Contract termination and other 76  —  217  2,121 
Total restructuring charges $ 23,373  $ 1,033  $ 45,830  $ 5,378 
Restructuring costs by business segment are as follows:
Three Months Ended September Six Months Ended September
(In thousands) 2020 2019 2020 2019
Outdoor $ 1,845  $ 515  $ 6,595  $ 4,730 
Active 293  447  663  467 
Work 18,378  71  18,807  181 
Corporate and other 2,857  —  19,765  — 
Total $ 23,373  $ 1,033  $ 45,830  $ 5,378 
The activity in the restructuring accrual for the six-month period ended September 2020 was as follows:
(In thousands) Severance Other Total
Accrual at March 2020 $ 38,052  $ 2,888  $ 40,940 
Charges 28,392  217  28,609 
Cash payments (20,490) (1,368) (21,858)
Adjustments to accruals (50) 189  139 
Impact of foreign currency (561) 76  (485)
Accrual at September 2020 $ 45,343  $ 2,002  $ 47,345