Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.20.1
RESTRUCTURING
 12 Months Ended
Dec. 28, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company incurs restructuring charges related to cost optimization of business activities, primarily related to severance and employee-related benefits. Of the $24.6 million of restructuring charges recognized during 2019, $13.8 million was reflected within "selling, general and administrative expenses" and $10.8 million within "costs of goods sold" in the statements of income. Of the $20.4 million of restructuring charges recognized during 2018, $9.1 million was reflected within "selling, general and administrative expenses" and $11.3 million within "cost of goods sold." Of the $9.5 million of restructuring charges recognized during 2017, $6.5 million was reflected within "selling, general and administrative expenses" and $3.0 million within "cost of goods sold."
All of the $2.2 million total restructuring accrual reported in the Company's balance sheet at December 2019 is expected to be paid out within the next 12 months and is classified within "accrued liabilities." Of the $23.2 million total restructuring accrual at December 2018, $21.2 million was classified within "accrued liabilities" and the remaining $2.0 million to be paid out beyond the next 12 months was classified within "other liabilities."
The following table presents the components of restructuring charges:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands)
 
 2019
 
 
2018
 
2017
Severance and employee-related benefits
 
$
14,903

 
 
$
20,385

 
$
9,541

Asset impairments
 
1,596

 
 
—

 
—

Inventory write-downs
 
4,403

 
 
—

 
—

Other
 
3,660

 
 
—

 
—

Total restructuring charges
 
$
24,562

 
 
$
20,385

 
$
9,541

The following table presents the restructuring charges by business segment:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
2017
Wrangler
 
$
17,613

 
 
$
13,358

 
$
3,367

Lee
 
6,685

 
 
6,592

 
6,174

Other
 
264

 
 
435

 
—

Total
 
$
24,562

 
 
$
20,385

 
$
9,541


The following table presents activity in the restructuring accrual for the periods ending December 2019 and December 2018:
(In thousands)
 
Severance
 
Other
 
Total
 
Accrual at December 2017
 
$
11,007

 
$
—

 
$
11,007

 
Charges
 
20,385

 
—

 
20,385

 
Cash payments
 
(6,586
)
 
—

 
(6,586
)
 
Adjustments to accruals
 
(1,540
)
 
—

 
(1,540
)
 
Currency translation
 
(17
)
 
—

 
(17
)
 
Accrual at December 2018
 
$
23,249

 
$
—

 
$
23,249

 
Charges
 
14,903

 
3,660

 
18,563

 
Cash payments
 
(31,201
)
 
(839
)
 
(32,040
)
 
Adjustments to accruals
 
1,663

 
—

 
1,663

 
Currency translation
 
(58
)
 
(197
)
 
(255
)
 
Adjustment at Separation
 
(6,384
)
 
(2,624
)
 
(9,008
)
 
Accrual at December 2019
 
$
2,172

 
$
—

 
$
2,172