Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.22.0.1
RESTRUCTURING
 12 Months Ended
Jan. 01, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities. In 2021 and 2020, costs primarily related to the decision to exit certain VF Outlet 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.
All of the $1.0 million of restructuring charges recognized during the year ended December 2021 were reflected within "selling, general and administrative expenses." Of the $25.4 million of restructuring charges recognized during the year ended December 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 the year ended December 2019, $13.8 million were reflected within "selling, general and administrative expenses" and $10.8 million within "cost of goods sold."
All of the $1.1 million total restructuring accrual reported in the Company's balance sheet at December 2021 is expected to be paid out within the next 12 months and is classified within "accrued liabilities." Of the $6.7 million total restructuring accrual reported in the Company's balance sheet at December 2020, $6.5 million 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:
Year Ended December
(In thousands) 2021 2020 2019
Severance and employee-related benefits $ 992  $ 14,725  $ 14,903 
Asset impairments —  4,587  1,596 
Inventory write-downs —  3,645  4,403 
Other —  2,486  3,660 
Total restructuring charges $ 992  $ 25,443  $ 24,562 
The following table presents the restructuring costs by business segment:
Year Ended December
(In thousands) 2021 2020 2019
Wrangler $ 305  $ 6,616  $ 17,613 
Lee 331  5,702  6,685 
Corporate and other 356  13,125  264 
Total $ 992  $ 25,443  $ 24,562 
The following table presents activity in the restructuring accrual for the years ended December 2021 and December 2020:
(In thousands) Severance
Accrual at December 2019 $ 2,172 
Charges 14,725 
Cash payments (8,390)
Adjustments to accruals (1,847)
Currency translation 81 
Accrual at December 2020 $ 6,741 
Charges 992 
Cash payments (6,673)
Adjustments to accruals 6 
Currency translation 13 
Accrual at December 2021 $ 1,079