Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.20.2
RESTRUCTURING
 9 Months Ended
Sep. 26, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
The Company generally incurs restructuring charges related to cost optimization of business activities, which primarily included severance and impairment charges related to COVID-19 and our VF OutletTM business during the three and nine months ended September 2020.
Of the $2.3 million and $13.9 million of restructuring charges recognized during the three and nine months ended September 2020, respectively, $1.9 million and $13.0 million were reflected within "selling, general and administrative expenses" and $0.4 million and $0.9 million were reflected within "cost of goods sold," respectively.
Of the $24.6 million of restructuring charges recognized during the nine months ended September 2019, $13.8 million were reflected within "selling, general and administrative expenses" and $10.8 million were reflected within "cost of goods sold."
Of the $7.2 million total restructuring accrual reported in the Company's balance sheet at September 2020, $7.0 million is expected to be paid out within the next 12 fiscal months and is classified within "accrued liabilities." The remaining $0.2 million is classified within "other liabilities." All of the $2.2 million total restructuring accrual reported in the Company's balance sheet at December 2019 was classified within "accrued liabilities."
The following table presents the components of restructuring charges:
Three Months Ended Nine Months Ended
(In thousands)
September 2020 September 2019 September 2020 September 2019
Severance and employee-related benefits $ 2,314  $ —  $ 12,324  $ 14,903 
Asset impairments —  —  1,579  1,596 
Inventory write-downs —  —  —  4,403 
Other —  —  —  3,660 
Total restructuring charges $ 2,314  $ —  $ 13,903  $ 24,562 
The following table presents the restructuring costs by business segment:
Three Months Ended Nine Months Ended
(In thousands)
September 2020 September 2019 September 2020 September 2019
Wrangler $ —  $ —  $ 3,656  $ 17,613 
Lee —  —  3,131  6,685 
Corporate and other 2,314  —  7,116  264 
Total $ 2,314  $ —  $ 13,903  $ 24,562 
The following table presents activity in the restructuring accrual for the nine-month period ended September 2020:
(In thousands) Total
Accrual at December 2019 $ 2,172 
Charges 12,324 
Cash payments (6,550)
Adjustments to accruals (740)
Accrual at September 2020 $ 7,206