Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

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RESTRUCTURING
 9 Months Ended
Dec. 28, 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 and nine months ended December 2019, VF leadership approved $3.9 million and $9.7 million, respectively, of restructuring charges. VF recognized $3.7 million and $7.1 million in selling, general and administrative expenses for the three and nine months ended December 2019, respectively, and $0.2 million and $2.6 million in cost of goods sold for the three and nine months
ended December 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 $34.9 million total restructuring accrual at December 2019, $34.2 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 activity in the restructuring accrual for the nine-month period ended December 2019 was as follows:
(In thousands)
Severance
 
Other
 
Total
 
Accrual at March 2019
$
58,106

 
$
11,035

 
$
69,141

 
Charges
7,116

 
2,564

 
9,680

 
Cash payments
(33,965
)
 
(11,246
)
 
(45,211
)
 
Adjustments to accruals
3,101

 
1,144

 
4,245

 
Impact of foreign currency
(2,285
)
 
(713
)
 
(2,998
)
 
Accrual at December 2019
$
32,073

 
$
2,784

 
$
34,857

 


Restructuring charges were incurred as follows:
 
 
Three Months Ended December
 
 
Nine Months Ended December
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
 
2019
 
 
2018
Outdoor
 
$
1,670

 
 
$
2,276

 
 
$
6,400

 
 
$
15,171

Active
 
322

 
 
485

 
 
789

 
 
3,537

Work
 
1,460

 
 
—

 
 
2,084

 
 
3,939

Corporate and other
 
407

 
 
1,045

 
 
407

 
 
3,546

Total
 
$
3,859

 
 
$
3,806

 
 
$
9,680

 
 
$
26,193