Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.19.2
RESTRUCTURING
 3 Months Ended
Mar. 30, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING

The Company typically incurs restructuring charges related to cost optimization of business activities. Of the $22.8 million of restructuring charges recognized during the three months ended March 2019, $12.0 million were reflected in "selling, general and administrative expenses" and $10.8 million were reflected in "cost of goods sold". Additionally, all of the $1.9 million of restructuring charges recognized during the three months ended March 2018 was reflected in "selling, general and administrative expenses."

The Company did not incur significant incremental costs related to the previously approved initiatives during the three months ended March 2019. Of the $36.6 million total restructuring accrual reported in the combined balance sheet at March 2019, $35.8 million is expected to be paid out within the next 12 months and is classified within "accrued liabilities". The remaining $0.8 million is expected be paid out beyond the next 12 months and thus is classified within "other liabilities".


The components of the restructuring charges are as follows:
 
 
Three Months Ended
 
 
 
 
 
 
(in thousands)
 
March 2019
 
 
March 2018
Severance and employee-related benefits
 
$
13,157

 
 
$
1,936

Asset impairments
 
1,596

 
 
—

Inventory write-downs
 
4,403

 
 
—

Other
 
3,660

 
 
—

Total restructuring charges
 
$
22,816

 
 
$
1,936


Restructuring costs by business segment are as follows:
 
 
Three Months Ended
 
 
 
 
 
 
(In thousands)
 
March 2019
 
 
March 2018
Wrangler
 
$
16,422

 
 
$
826

Lee
 
6,224

 
 
677

Other
 
170

 
 
433

Total
 
$
22,816

 
 
$
1,936


The activity in the restructuring accrual for the three-month periods ended March 2019 and 2018 is as follows:
(In thousands)
Severance
 
Other
 
Total
Accrual at December 2018
$
23,249

 
$
—

 
$
23,249

Charges
13,157

 
3,660

 
16,817

Cash payments
(3,046
)
 
—

 
(3,046
)
Adjustments to accruals
(230
)
 
—

 
(230
)
Currency translation
(17
)
 
(197
)
 
(214
)
Accrual at March 2019
$
33,113

 
$
3,463

 
$
36,576



(in thousands)
Severance

Other

Total
Accrual at December 2017
$
11,007


$
—


$
11,007

Charges
1,936


—


1,936

Cash payments
(837
)

—


(837
)
Adjustments to accruals
(197
)

—


(197
)
Currency translation
4


—


4

Accrual at March 2018
$
11,913


$
—


$
11,913