Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.21.2
RESTRUCTURING
 3 Months Ended
Jul. 03, 2021
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 2021, VF recognized $4.3 million of restructuring charges, related to approved initiatives. Of the restructuring charges recognized in the three months ended June 2021, $2.9 million were reflected in selling, general and administrative expenses, and $1.4 million in cost of goods sold, respectively. The Company has not recognized any
significant incremental costs related to accruals for the year ended March 2021 or prior periods.
Of the $54.9 million total restructuring accrual at June 2021, $52.8 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $2.1 million will be paid out beyond the next 12 months and thus is classified within other liabilities.
The components of the restructuring charges are as follows:
Three Months Ended June
(In thousands) 2021 2020
Severance and employee-related benefits $ 2,874  $ 18,509 
Accelerated depreciation 1,431  3,807 
Contract termination and other —  141 
Total restructuring charges $ 4,305  $ 22,457 
Restructuring costs by business segment are as follows:
Three Months Ended June
(In thousands) 2021 2020
Outdoor $ 2,223  $ 4,750 
Active 732  370 
Work —  429 
Other 1,350  16,908 
Total $ 4,305  $ 22,457 
The activity in the restructuring accrual for the three-month period ended June 2021 was as follows:
(In thousands) Severance Other Total
Accrual at March 2021 $ 59,810  $ 6,944  $ 66,754 
Charges 2,874  —  2,874 
Cash payments and settlements (12,929) (3,223) (16,152)
Adjustments to accruals 1,352  5  1,357 
Impact of foreign currency 63  5  68 
Accrual at June 2021 $ 51,170  $ 3,731  $ 54,901