Quarterly report [Sections 13 or 15(d)]

RESTRUCTURING

v3.25.3
RESTRUCTURING
 9 Months Ended
Sep. 27, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. In the three months ended September 2025, charges primarily relate to the decision to close a portion of our manufacturing facilities, resulting in severance and employee-related charges of $32.2 million, asset impairments of $3.9 million and other facility termination costs of $1.9 million, all of which was recorded within 'cost of goods sold' in the Company's statement of operations.
During the three and nine months ended September 2025 and September 2024, the Company also incurred restructuring and transformation charges related to business optimization and other actions to streamline and transfer select production within our internal manufacturing network.
The following table summarizes the restructuring charges recorded during the three and nine months ended September 2025 and September 2024:
Three Months Ended September Nine Months Ended September
(In thousands)
2025 2024 2025 2024
Severance and employee-related benefits $ 34,297  $ 386  $ 39,577  $ 4,371 
Asset impairments 3,864  49  3,864  650 
Inventory write-downs —  —  —  1,902 
Other 2,318  1,712  3,679  3,139 
Total restructuring charges $ 40,479  $ 2,147  $ 47,120  $ 10,062 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended September Nine Months Ended September
(In thousands) 2025 2024 2025 2024
Cost of goods sold $ 38,409  $ 2,049  $ 40,001  $ 8,259 
Selling, general, and administrative expenses 2,070  98  7,119  1,803 
Total $ 40,479  $ 2,147  $ 47,120  $ 10,062 
The following table presents these restructuring costs by business segment:
Three Months Ended September Nine Months Ended September
(In thousands)
2025 2024 2025 2024
Wrangler $ 424  $ 1,823  $ 1,880  $ 7,954 
Lee —  —  —  40 
Corporate and other 40,055  324  45,240  2,068 
Total $ 40,479  $ 2,147  $ 47,120  $ 10,062 
The following table presents activity in the restructuring accrual for the nine-month period ended September 2025:
(In thousands)
Accrual at December 2024 $ 1,895 
Charges(1)
41,667 
Cash payments (20,518)
Adjustments to accruals (398)
Currency translation 43 
Balance, September 2025 $ 22,689 
(1) The Company also recorded approximately $5.5 million of non-cash and other charges related to the closure of a portion of our manufacturing facilities and streamlining and transferring select production within our internal manufacturing network.
Of the $22.7 million restructuring accrual reported in the Company's balance sheet at September 2025, $22.2 million is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities," and the remaining $0.5 million was classified within "other 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."