Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.21.2
RESTRUCTURING
 6 Months Ended
Oct. 02, 2021
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company 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 2021, VF recognized $3.5 million and $7.8 million, respectively, of restructuring charges, related to approved initiatives. Of the restructuring charges recognized in the three and six months ended September 2021, $3.4 million and $6.3 million were reflected in selling, general and administrative expenses, respectively, and $0.1 million and $1.5 million in cost of goods sold, respectively.
The Company has not recognized any significant incremental costs related to accruals for the year ended March 2021 or prior periods.
Of the $43.3 million total restructuring accrual at September 2021, $43.0 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 September Six Months Ended September
(In thousands) 2021 2020 2021 2020
Severance and employee-related benefits $ 1,422  $ 9,883  $ 4,296  $ 28,392 
Asset impairments —  10,557  —  10,557 
Accelerated depreciation 2,036  2,857  3,467  6,664 
Contract termination and other —  76  —  217 
Total restructuring charges $ 3,458  $ 23,373  $ 7,763  $ 45,830 
Restructuring costs by business segment are as follows:
Three Months Ended September Six Months Ended September
(In thousands) 2021 2020 2021 2020
Outdoor $ 454  $ 1,845  $ 2,677  $ 6,595 
Active 276  293  1,008  663 
Work 788  18,378  788  18,807 
Other 1,940  2,857  3,290  19,765 
Total $ 3,458  $ 23,373  $ 7,763  $ 45,830 
The activity in the restructuring accrual for the six-month period ended September 2021 was as follows:
(In thousands) Severance Other Total
Accrual at March 2021 $ 59,810  $ 6,944  $ 66,754 
Charges 4,296  —  4,296 
Cash payments and settlements (23,961) (3,666) (27,627)
Adjustments to accruals 2  (40) (38)
Impact of foreign currency (66) (50) (116)
Accrual at September 2021 $ 40,081  $ 3,188  $ 43,269