Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.10.0.1
RESTRUCTURING
 3 Months Ended
Jun. 30, 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 June 2018, VF leadership approved $10.7 million of restructuring charges related to cost optimization activities, of which $7.9 million was recognized in selling, general and administrative expenses and $2.8 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 $48.7 million total restructuring accrual at June 2018, $41.3 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $7.4 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 June 2018 is as follows:
(In thousands)
Severance
 
Other
 
Total
Accrual at March 2018
$
43,145

 
$
444

 
$
43,589

Charges
9,915

 
748

 
10,663

Cash payments
(5,404
)
 
(444
)
 
(5,848
)
Adjustments to accruals
490

 
—

 
490

Currency translation
(157
)
 
—

 
(157
)
Accrual at June 2018
$
47,989

 
$
748

 
$
48,737



Restructuring charges were incurred as follows:
(In thousands)
 
Three Months Ended June 2018
 
Outdoor
 
$
2,898

 
Active
 
2,559

 
Work
 
2,828

 
Jeans
 
872

 
Corporate and other
 
1,506

 
Total
 
$
10,663