Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING

v3.19.2
RESTRUCTURING
 6 Months Ended
Jun. 29, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING

The Company typically incurs restructuring charges related to cost optimization of business activities. Of the $1.7 million and $24.6 million of restructuring charges recognized during the three and six months ended June 2019, respectively, the Company recognized $1.7 million and $13.8 million in "selling, general and administrative expenses" during the three and six months ended June 2019, respectively, and $10.8 million in "cost of goods sold" during the six months ended June 2019.

The Company did not incur significant incremental costs related to the previously approved initiatives during the three and six months ended June 2019. All of the $12.8 million total restructuring accrual reported in the Company's balance sheet at June 2019 is expected to be paid out within the next 12 months and is classified within "accrued liabilities."


The components of the restructuring charges are as follows:
(in thousands)
 
Three Months Ended June 2019

Six Months Ended June 2019
 
Severance and employee-related benefits
 
$
1,746

 
$
14,903

 
Asset impairments
 
—

 
1,596

 
Inventory write-downs
 
—

 
4,403

 
Other
 
—

 
3,660

 
Total restructuring charges
 
$
1,746

 
$
24,562

 

Restructuring costs by business segment are as follows:
(in thousands)
 
Three Months Ended June 2019
 
Six Months Ended June 2019
 
Wrangler
 
$
1,191

 
$
17,613

 
Lee
 
461

 
6,685

 
Other
 
94

 
264

 
Total
 
$
1,746

 
$
24,562

 

The activity in the restructuring accrual for the six-month period ended June 2019 is as follows:
(in thousands)
Severance
 
Other
 
Total
 
Accrual at December 2018
$
23,249

 
$
—

 
$
23,249

 
Charges
14,903

 
3,660

 
18,563

 
Cash payments
(18,951
)
 
(839
)
 
(19,790
)
 
Adjustments to accruals
83

 
—

 
83

 
Currency translation
(58
)
 
(197
)
 
(255
)
 
Adjustment at Separation
(6,384
)
 
(2,624
)
 
(9,008
)
 
Accrual at June 2019
$
12,842

 
$
—

 
$
12,842