Quarterly report [Sections 13 or 15(d)]

RESTRUCTURING

v3.25.1
RESTRUCTURING
 3 Months Ended
Mar. 29, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. During the three months ended March 2025 and March 2024, the Company incurred the following charges related to business optimization and actions to streamline and transfer select production within our internal manufacturing network:
Three Months Ended March
(In thousands)
2025 2024
Severance and employee-related benefits $ 2,479  $ 1,981 
Asset impairments —  168 
Inventory write-downs —  1,683 
Other 843  779 
Total restructuring charges $ 3,322  $ 4,611 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended March
(In thousands) 2025 2024
Cost of goods sold $ 1,077  $ 3,039 
Selling, general, and administrative expenses 2,245  1,572 
Total $ 3,322  $ 4,611 
The following table presents these restructuring costs by business segment:
Three Months Ended March
(In thousands)
2025 2024
Wrangler $ 938  $ 3,249 
Lee —  40 
Corporate and other 2,384  1,322 
Total $ 3,322  $ 4,611 
The following table presents activity in the restructuring accrual for the three-month period ended March 2025:
(In thousands)
Accrual at December 2024 $ 1,895 
Charges 2,926 
Cash payments (1,820)
Balance, March 2025 $ 3,001 
All of the $3.0 million restructuring accrual reported in the Company's balance sheet at March 2025 is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities." Of the $1.9 million restructuring accrual reported in the Company's balance sheet at December 2024, $1.8 million was classified within "accrued and other current liabilities," and the remaining $0.1 million was classified within "other liabilities."