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