Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.22.2
RESTRUCTURING
 3 Months Ended
Jul. 02, 2022
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 months ended June 2022, VF recognized $6.1 million of restructuring charges, related to approved initiatives. Of the restructuring charges recognized in the three months ended June 2022, $4.7 million were reflected in selling, general and administrative expenses and $1.4 million in cost of goods sold. The Company has not recognized any significant incremental
costs related to accruals for the year ended March 2022 or prior periods.
Of the $21.2 million total restructuring accrual at June 2022, $20.5 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $0.7 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) 2022 2021
Severance and employee-related benefits $ 2,094  $ 2,874 
Accelerated depreciation 3,668  1,431 
Contract termination and other 344  — 
Total restructuring charges $ 6,106  $ 4,305 
Restructuring costs by business segment are as follows:
Three Months Ended June
(In thousands) 2022 2021
Outdoor $ —  $ 2,223 
Active —  732 
Work —  — 
Other 6,106  1,350 
Total $ 6,106  $ 4,305 
The activity in the restructuring accrual for the three-month period ended June 2022 was as follows:
(In thousands) Severance Other Total
Accrual at March 2022 $ 25,640  $ 1,211  $ 26,851 
Charges 2,094  344  2,438 
Cash payments and settlements (7,773) (84) (7,857)
Adjustments to accruals (150) 62  (88)
Impact of foreign currency (93) (45) (138)
Accrual at June 2022 $ 19,718  $ 1,488  $ 21,206