Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

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RESTRUCTURING
 9 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company 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 2022, VF recognized $11.1 million and $63.0 million, respectively, of restructuring charges, related to approved initiatives. Of the restructuring charges recognized in the three and nine months ended December 2022, $10.4 million and $58.9 million were reflected in selling, general and administrative expenses and $0.7 million
and $4.1 million in cost of goods sold, respectively. The Company has not recognized any significant incremental costs related to accruals for the year ended March 2022 or prior periods.
Of the $48.9 million total restructuring accrual at December 2022, $45.8 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $3.1 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 December Nine Months Ended December
(In thousands) 2022 2021 2022 2021
Severance and employee-related benefits $ 10,607  $ 3,056  $ 50,165  $ 7,352 
Accelerated depreciation 25  590  7,276  4,057 
Contract termination and other 460  —  5,563  — 
Total restructuring charges $ 11,092  $ 3,646  $ 63,004  $ 11,409 
Restructuring costs by business segment are as follows:
Three Months Ended December Nine Months Ended December
(In thousands) 2022 2021 2022 2021
Outdoor $ 391  $ 1,529  $ 887  $ 4,206 
Active —  —  1,478  1,008 
Work —  1,527  9  2,315 
Corporate and other 10,701  590  60,630  3,880 
Total $ 11,092  $ 3,646  $ 63,004  $ 11,409 
The activity in the restructuring accrual for the nine-month period ended December 2022 was as follows:
(In thousands) Severance Other Total
Accrual at March 2022 $ 25,640  $ 1,211  $ 26,851 
Charges 50,165  5,563  55,728 
Cash payments and settlements (30,598) (457) (31,055)
Adjustments to accruals (3,205) 53  (3,152)
Impact of foreign currency 192  363  555 
Accrual at December 2022 $ 42,194  $ 6,733  $ 48,927