Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.22.4
RESTRUCTURING
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities. In 2022, restructuring costs related to the globalization of the Company's operating model and relocation of the European headquarters to Geneva, Switzerland ("EMEA restructuring"). In 2021 and 2020, restructuring costs primarily related to the decision to exit certain company-owned outlet stores and the transition of our India business to a licensing model, as well as COVID-19 impacts. We do not expect material charges related to these initiatives in future periods.
All of the $13.7 million of restructuring charges recognized during the year ended December 2022 were reflected within "selling, general and administrative expenses," and related to the EMEA restructuring. The Company also recognized a $2.6 million pension curtailment gain within "other expense, net" during the year ended December 2022 attributable to employee restructuring in EMEA. Refer to Note 12 to the Company's financial statements for additional information related to pension charges. All of the $1.0 million of restructuring charges recognized during the year ended December 2021 were reflected within "selling, general and administrative expenses," and primarily related to previously approved initiatives. 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."
All of the $10.7 million restructuring accrual reported in the Company's balance sheet at December 2022 is expected to be paid out within the next 12 months and is classified within "accrued liabilities." All of the $1.1 million total restructuring accrual reported in the Company's balance sheet at December 2021 was classified within "accrued liabilities."
The following table presents the components of restructuring charges:
Year Ended December
(In thousands) 2022 2021 2020
Severance and employee-related benefits $ 13,688  $ 992  $ 14,725 
Asset impairments —  —  4,587 
Inventory write-downs —  —  3,645 
Pension curtailment gain (2,581) —  — 
Other —  —  2,486 
Total restructuring charges $ 11,107  $ 992  $ 25,443 
The following table presents the restructuring costs by business segment:
Year Ended December
(In thousands) 2022 2021 2020
Wrangler $ —  $ 305  $ 6,616 
Lee —  331  5,702 
Corporate and other 11,107  356  13,125 
Total $ 11,107  $ 992  $ 25,443 
The following table presents activity in the restructuring accrual for the years ended December 2022 and December 2021:
(In thousands) Severance
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 
Charges 13,688 
Cash payments (4,956)
Adjustments to accruals 166 
Currency translation 718 
Accrual at December 2022 $ 10,695