Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.20.4
RESTRUCTURING
 12 Months Ended
Jan. 02, 2021
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities. In 2020, costs primarily related to the decision to exit certain VF OutletTM stores and the transition of our India business to a licensing model, as well as COVID-19 impacts. In 2019, costs primarily related to the transition of our CASA business to a licensing model and closures of certain manufacturing facilities. In 2018, costs primarily related to pre-Separation cost optimization of business activities.
Of the $25.4 million of restructuring charges recognized during 2020, $20.8 million were reflected within "selling, general and administrative expenses" and $4.6 million within "cost of goods sold." Of the $24.6 million of restructuring charges recognized during 2019, $13.8 million were reflected within "selling, general and administrative expenses" and $10.8 million within "cost of goods sold." Of the $20.4 million of restructuring charges recognized during 2018, $9.1 million were reflected within "selling, general and administrative expenses" and $11.3 million within "cost of goods sold."
Of the $6.7 million total restructuring accrual reported in the Company's balance sheet at December 2020, $6.5 million is expected to be paid out within the next 12 fiscal months and is classified within "accrued liabilities." The remaining $0.2 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:
Year Ended December
(In thousands)
 2020 2019 2018
Severance and employee-related benefits $ 14,725  $ 14,903  $ 20,385 
Asset impairments 4,587  1,596  — 
Inventory write-downs 3,645  4,403  — 
Other 2,486  3,660  — 
Total restructuring charges $ 25,443  $ 24,562  $ 20,385 
The following table presents the restructuring costs by business segment:
Year Ended December
(In thousands)
 2020 2019 2018
Wrangler $ 6,616  $ 17,613  $ 13,358 
Lee 5,702  6,685  6,592 
Corporate and other 13,125  264  435 
Total $ 25,443  $ 24,562  $ 20,385 
The following table presents activity in the restructuring accrual for the years ending December 2020 and December 2019:
(In thousands)
Severance
Other
 Total
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 
Charges 14,725  —  14,725 
Cash payments (8,390) —  (8,390)
Adjustments to accruals (1,847) —  (1,847)
Currency translation 81  —  81 
Accrual at December 2020 $ 6,741  $ —  $ 6,741