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