Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

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RESTRUCTURING
 9 Months Ended
Dec. 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 nine months ended December 2020, VF recognized $38.2 million and $84.0 million of restructuring charges, respectively, related to approved initiatives. Of the restructuring charges recognized in the three and nine months ended December 2020, $15.7 million and $44.4 million were reflected in selling, general and administrative expenses, respectively, and $22.5 million and $39.6 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 $60.0 million total restructuring accrual at December 2020, $54.8 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $5.2 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 December Nine Months Ended December
(In thousands) 2020 2019 2020 2019
Severance and employee-related benefits $ 24,545  $ 3,859  $ 52,937  $ 7,116 
Asset impairments —  —  10,557  — 
Accelerated depreciation 3,429  —  10,093  — 
Inventory write-downs 7,115  —  7,115  — 
Contract termination and other 3,107  —  3,324  2,121 
Total restructuring charges $ 38,196  $ 3,859  $ 84,026  $ 9,237 
Restructuring costs by business segment are as follows:
Three Months Ended December Nine Months Ended December
(In thousands) 2020 2019 2020 2019
Outdoor $ 2,676  $ 1,670  $ 9,271  $ 6,400 
Active 3,275  322  3,938  789 
Work 8,409  1,460  27,216  1,641 
Corporate and other 23,836  407  43,601  407 
Total $ 38,196  $ 3,859  $ 84,026  $ 9,237 
The activity in the restructuring accrual for the nine-month period ended December 2020 was as follows:
(In thousands) Severance Other Total
Accrual at March 2020 $ 38,052  $ 2,888  $ 40,940 
Charges 52,937  3,693  56,630 
Cash payments (35,393) (2,392) (37,785)
Adjustments to accruals (166) 189  23 
Impact of foreign currency 15  170  185 
Accrual at December 2020 $ 55,445  $ 4,548  $ 59,993