Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.21.1
RESTRUCTURING
 12 Months Ended
Apr. 03, 2021
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.
Of the $119.0 million of restructuring charges recognized in the year ended March 2021, $75.1 million were reflected in selling, general and administrative expenses and $43.9 million in cost of goods sold. Of the $31.8 million of restructuring charges recognized in the year ended March 2020, $12.4 million were reflected in selling, general and administrative expenses and $19.4 million in cost of goods sold. Of the $63.1 million of restructuring charges recognized in the year ended March 2019,
$48.5 million were reflected in selling, general and administrative expenses and $14.6 million in cost of goods sold. The Company has not recognized any significant incremental costs related to the accruals for the year ended March 2020 or prior periods.
Of the total restructuring accrual at March 2021, $63.8 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $3.0 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:
Year Ended March
(In thousands) 2021 2020 2019
Severance and employee-related benefits $ 64,972  $ 21,899  $ 46,724 
Asset impairments 23,087  5,211  4,109 
Accelerated depreciation 11,266  —  — 
Inventory write-downs 10,658  1,119  2,171 
Contract termination and other 9,023  3,618  10,092 
Total restructuring charges $ 119,006  $ 31,847  $ 63,096 
Restructuring costs by business segment are as follows:
Year Ended March
(In thousands) 2021 2020 2019
Outdoor $ 14,081  $ 7,094  $ 38,952 
Active 20,958  3,210  13,579 
Work 31,907  2,193  5,587 
Other 52,060  19,350  4,978 
Total $ 119,006  $ 31,847  $ 63,096 
The activity in the restructuring accrual is as follows:
(In thousands) Severance Other Total
Accrual at March 2019 $ 56,218  $ 11,002  $ 67,220 
Charges 21,899  3,618  25,517 
Cash payments and settlements (39,728) (11,997) (51,725)
Adjustments to accruals 2,181  1,159  3,340 
Impact of foreign currency (2,518) (894) (3,412)
Accrual at March 2020 38,052  2,888  40,940 
Charges 64,972  9,393  74,365 
Cash payments and settlements (46,258) (4,285) (50,543)
Adjustments to accruals 3,206  (1,218) 1,988 
Impact of foreign currency (162) 166  4 
Accrual at March 2021 $ 59,810  $ 6,944  $ 66,754 

The Company has incurred costs associated with the relocation of VF's global headquarters and certain brands to Denver, Colorado. The total amount of charges recognized for the years ended March 2020 and 2019 were $41.5 million and $47.4 million, respectively, of which $18.8 million for the year ended March 2019 related to severance and employee-related benefits and is included in the tables above. The remaining amounts for the years ended March 2020 and 2019 related to other relocation costs, the majority of which have been paid.