Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.19.2
RESTRUCTURING
 3 Months Ended
Jun. 29, 2019
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. During the three months ended June 2019, VF leadership approved $4.8 million of restructuring charges, of which $3.4 million was recognized in selling, general and administrative expenses and $1.4 million in cost of goods sold. The Company has not recognized significant incremental costs related to the actions for the year ended March 2019 or prior periods.
Of the $57.9 million total restructuring accrual at June 2019, $55.3 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $2.6 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 2019 was as follows:
(In thousands)
Severance
 
Other
 
Total
 
Accrual at March 2019
$
58,106

 
$
11,035

 
$
69,141

 
Charges
2,224

 
2,564

 
4,788

 
Cash payments
(8,887
)
 
(8,335
)
 
(17,222
)
 
Adjustments to accruals
1,303

 
—

 
1,303

 
Currency translation
11

 
(97
)
 
(86
)
 
Accrual at June 2019
$
52,757

 
$
5,167

 
$
57,924

 


Restructuring charges were incurred as follows:
(In thousands)
 
Three Months Ended June 2019
 
 
Three Months Ended June 2018
Outdoor
 
$
4,215

 
 
$
2,898

Active
 
20

 
 
2,559

Work
 
553

 
 
2,828

Corporate and other
 
—

 
 
1,506

Total
 
$
4,788

 
 
$
9,791