VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

RESTRUCTURING

6 Months Ended

Sep. 28, 2019

Restructuring and Related Activities [Abstract]

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 and six months ended September 2019, VF leadership approved $1.0 million and $5.8 million, respectively, of restructuring charges. VF recognized $3.4 million in selling, general and administrative expenses for the six months ended September 2019, and $1.0 million and $2.4 million in cost of goods sold for the three and six months ended September 2019,

respectively. The Company has not recognized significant incremental costs related to the actions for the year ended March 2019 or prior periods.

Of the $40.5 million total restructuring accrual at September 2019, $39.4 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $1.1 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 six-month period ended September 2019 was as follows:



(In thousands)	Severance			Other			Total
Accrual at March 2019	$	58,106		$	11,035		$	69,141
Charges	3,257			2,564			5,821
Cash payments	(23,186		)	(10,711		)	(33,897		)
Adjustments to accruals	1,721			724			2,445
Currency translation	(2,289		)	(693		)	(2,982		)
Accrual at September 2019	$	37,609		$	2,919		$	40,528

Restructuring charges were incurred as follows:



	Three Months Ended September				Six Months Ended September

(In thousands)	2019		2018		2019		2018
Outdoor	$	515	$	9,997	$	4,730	$	12,895
Active	447		493		467		3,052
Work	71		1,111		624		3,939
Corporate and other	—		995		—		2,501
Total	$	1,033	$	12,596	$	5,821	$	22,387