Transition report pursuant to Rule 13a-10 or 15d-10

RESTRUCTURING

v3.8.0.1
RESTRUCTURING
 3 Months Ended
Mar. 31, 2018
Restructuring and Related Activities [Abstract]  
RESTRUCTURING
RESTRUCTURING

The Company typically incurs restructuring charges related to the cost optimization of business activities. During the three months ended March 2018, VF leadership approved $14.9 million of restructuring charges related to cost optimization activities, of which $10.8 million was recognized in selling, general and administrative expenses and $4.1 million in cost of goods sold. The Company has not recognized significant incremental costs related to the 2016 and 2017 initiatives. Management expects to recognize additional expense for cost optimization activities during Fiscal 2019.
Of the $43.6 million total restructuring accrual at March 2018, $36.4 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $7.2 million will be paid out beyond the next 12 months and thus is classified within other liabilities.
The activity in the restructuring accrual for the three-month period ended March 2018 is as follows:
(In thousands)
Severance
 
Other
 
Total
Accrual at December 2017
$
33,808

 
$
4,436

 
$
38,244

Charges
14,927

 
—

 
14,927

Cash payments
(4,658
)
 
(3,992
)
 
(8,650
)
Adjustments to accruals
(1,033
)
 
—

 
(1,033
)
Currency translation
101

 
—

 
101

Accrual at March 2018
$
43,145

 
$
444

 
$
43,589



Restructuring costs by business segment are as follows:
(In thousands)
 
2018 Charges
 
Outdoor & Action Sports
 
$
4,550

 
Jeanswear
 
2,575

 
Imagewear
 
7,802

 
Total
 
$
14,927