Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.24.0.1
RESTRUCTURING
 12 Months Ended
Dec. 30, 2023
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. In 2023, the Company took actions to drive efficiencies in our operations, which included reducing our global workforce and streamlining and transferring select production within our internal manufacturing network. In 2022, restructuring costs related to the globalization of the Company's operating model and relocation of the European headquarters to Geneva, Switzerland. In 2021, 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. We do not expect material charges in future periods related to the initiatives discussed above.
Of the $11.5 million of restructuring charges recognized during the year ended December 2023, $5.7 million were reflected within "selling, general and administrative expenses" and $5.8 million within "cost of goods sold." All of the $13.7 million of restructuring charges recognized during the year ended December 2022 were reflected within "selling, general and administrative expenses." The Company also recognized a $2.6 million pension curtailment gain within "other expense, net" during the year ended December 2022. Refer to Note 13 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."
All of the $0.8 million restructuring accrual reported in the Company's balance sheet at December 2023 is expected to be paid out within the next 12 months and is classified within "accrued liabilities." All of the $10.7 million restructuring accrual reported in the Company's balance sheet at December 2022 was classified within "accrued liabilities."
The following table presents the components of restructuring charges:
Year Ended December
(In thousands) 2023 2022 2021
Severance and employee-related benefits $ 7,223  $ 13,688  $ 992 
Asset impairments 3,064  —  — 
Pension curtailment gain —  (2,581) — 
Other 1,182  —  — 
Total restructuring charges $ 11,469  $ 11,107  $ 992 
The following table presents the restructuring costs by business segment:
Year Ended December
(In thousands) 2023 2022 2021
Wrangler $ 4,564  $ —  $ 305 
Lee 43  —  331 
Corporate and other 6,862  11,107  356 
Total $ 11,469  $ 11,107  $ 992 
The following table presents activity in the restructuring accrual for the years ended December 2023 and December 2022:
(In thousands) Severance
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 
Charges 7,223 
Cash payments (17,338)
Adjustments to accruals 6 
Currency translation 241 
Accrual at December 2023 $ 827