Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.21.2
RESTRUCTURING
 6 Months Ended
Jul. 03, 2021
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities, primarily related to severance and employee-related benefits.
All of the $0.3 million and $1.0 million of restructuring charges recognized during the three and six months ended June 2021, respectively, were reflected within "selling, general and administrative expenses," and primarily related to previously approved initiatives. All of the $5.8 million of restructuring charges recognized during the three months ended June 2020 were reflected within "selling, general and administrative expenses." Of the $11.6 million of restructuring charges recognized during the six months ended June 2020, $11.1 million was reflected within "selling, general and administrative expenses" and $0.5 million was reflected within "cost of goods sold."
Of the $2.6 million total restructuring accrual reported in the Company's balance sheet at June 2021, $2.5 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." Of the $6.7 million total restructuring accrual reported in the Company's balance sheet at December 2020, $6.5 million was expected to be paid out within the next 12 fiscal months and was classified within "accrued liabilities," and the remaining $0.2 million was classified within "other liabilities."
The following table presents the components of restructuring charges:
Three Months Ended Six Months Ended
(In thousands)
June 2021 June 2020 June 2021 June 2020
Severance and employee-related benefits $ 273  $ 4,215  $ 992  $ 10,010 
Asset impairments —  1,579  —  1,579 
Total restructuring charges $ 273  $ 5,794  $ 992  $ 11,589 
The following table presents the restructuring costs by business segment:
Three Months Ended Six Months Ended
(In thousands)
June 2021 June 2020 June 2021 June 2020
Wrangler $ 123  $ 478  $ 306  $ 3,656 
Lee 148  514  331  3,131 
Corporate and other 2  4,802  355  4,802 
Total $ 273  $ 5,794  $ 992  $ 11,589 
The following table presents activity in the restructuring accrual for the six-month period ended June 2021:
(In thousands) Total
Accrual at December 2020 $ 6,741 
Charges 992 
Cash payments (5,196)
Adjustments to accruals 55 
Accrual at June 2021 $ 2,592