Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.20.2
RESTRUCTURING
 6 Months Ended
Jun. 27, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities, which primarily included severance and impairment charges related to COVID-19 and our VF OutletTM business during the three and six months ended June 2020.
Of the $5.8 million and $11.6 million of restructuring charges recognized during the three and six months ended June 2020, respectively, $5.8 million and $11.1 million were reflected within "selling, general and administrative expenses." Restructuring charges of $0.5 million were reflected within "cost of goods sold" during the six months ended June 2020.
Of the $1.7 million and $24.6 million of restructuring charges recognized during the three and six months ended June 2019, respectively, $1.7 million and $13.8 million were reflected within "selling, general and administrative expenses." Restructuring charges of $10.8 million were reflected within "cost of goods sold" during the six months ended June 2019.
Of the $7.4 million total restructuring accrual reported in the Company's balance sheet at June 2020, $7.3 million is expected to be paid out within the next 12 fiscal months and is classified within "accrued liabilities." The remaining $0.1 million is classified within "other liabilities." All of the $2.2 million total restructuring accrual reported in the Company's balance sheet at December 2019 was classified within "accrued liabilities."
The following table presents the components of restructuring charges:
Three Months Ended Six Months Ended
(In thousands)
June 2020 June 2019 June 2020 June 2019
Severance and employee-related benefits $ 4,215    $ 1,746    $ 10,010    $ 14,903   
Asset impairments 1,579    —    1,579    1,596   
Inventory write-downs —    —    —    4,403   
Other —    —    —    3,660   
Total restructuring charges $ 5,794    $ 1,746    $ 11,589    $ 24,562   
The following table presents the restructuring costs by business segment:
Three Months Ended Six Months Ended
(In thousands)
June 2020 June 2019 June 2020 June 2019
Wrangler $ 478    $ 1,191    $ 3,656    $ 17,613   
Lee 514    461    3,131    6,685   
Corporate and other 4,802    94    4,802    264   
Total $ 5,794    $ 1,746    $ 11,589    $ 24,562   
The following table presents activity in the restructuring accrual for the six-month period ended June 2020:
(In thousands) Total
Accrual at December 2019 $ 2,172   
Charges 10,010   
Cash payments (4,610)  
Adjustments to accruals (179)  
Accrual at June 2020 $ 7,393