Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.24.3
RESTRUCTURING
 9 Months Ended
Sep. 28, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
During the three and nine months ended September 2024, the Company incurred restructuring charges related to actions to streamline and transfer select production within our internal manufacturing network and other business optimization activities.
Of the $2.1 million and $10.1 million of restructuring charges recognized during the three and nine months ended September 2024, respectively, $0.1 million and $1.8 million were reflected within "selling, general and administrative expenses" and $2.0 million and $8.3 million were reflected within "cost of goods sold," respectively. Of the $7.8 million of restructuring charges recognized during the nine months ended September 2023, $5.4 million were reflected within "selling, general and administrative expenses" and $2.4 million were reflected within "cost of goods sold."
Of the $2.0 million restructuring accrual reported in the Company's balance sheet at September 2024, $1.7 million is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities," and the remaining $0.3 million was classified within "other liabilities." All of the $0.8 million restructuring accrual reported in the Company's balance sheet at December 2023 was classified within "accrued and other current liabilities."
The following table presents the components of restructuring charges:
Three Months Ended September Nine Months Ended September
(In thousands)
2024 2023 2024 2023
Severance and employee-related benefits $ 386  $ —  $ 4,371  $ 6,614 
Asset impairments 49  —  650  — 
Inventory write-downs —  —  1,902  — 
Other 1,712  —  3,139  1,182 
Total restructuring charges $ 2,147  $ —  $ 10,062  $ 7,796 
The following table presents the restructuring costs by business segment:
Three Months Ended September Nine Months Ended September
(In thousands)
2024 2023 2024 2023
Wrangler $ 1,823  $ —  $ 7,954  $ 995 
Lee —  —  40  187 
Corporate and other 324  —  2,068  6,614 
Total $ 2,147  $ —  $ 10,062  $ 7,796 
The following table presents activity in the restructuring accrual for the nine-month period ended September 2024:
(In thousands) Total
Accrual at December 2023 $ 827 
Charges 6,731 
Cash payments (5,269)
Adjustments to accruals (300)
Currency translation (8)
Balance, September 2024 $ 1,981