Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING

v3.8.0.1
RESTRUCTURING
 12 Months Ended
Dec. 30, 2017
Restructuring and Related Activities [Abstract]  
RESTRUCTURING
RESTRUCTURING

The Company typically incurs restructuring costs related to the cost optimization of ongoing business activities and the integration of acquired businesses.
Of the $27.0 million of restructuring charges recognized in 2017, $20.2 million were reflected in selling, general and administrative expenses and $6.8 million in cost of goods sold. Of the $55.1 million of restructuring charges recognized in 2016, $31.8 million were reflected in selling, general and administrative expenses and $23.3 million in cost of goods sold.
The Company did not recognize significant incremental costs relating to the 2016 actions during 2017, and has completed most of the related restructuring activities as of December 2017. Of the $38.2 million total restructuring accrual at December 2017, $27.2 million is expected to be paid out within the next 12 months and is classified within accrued liabilities. The remaining $11.0 million will be paid out beyond the next 12 months and thus is classified within other liabilities.
The components of the restructuring charges in 2017 and 2016 are as follows:
(In thousands)
 
2017 Charges
 
 
2016 Charges
Severance and employee-related benefits
 
$
22,611

 
 
$
50,395

Asset impairments
 
—

 
 
3,394

Other
 
4,436

 
 
1,310

Total restructuring charges
 
$
27,047

 
 
$
55,099


Restructuring costs by business segment are as follows:
(In thousands)
 
2017 Charges
 
 
2016 Charges
Outdoor & Action Sports
 
$
12,793

 
 
$
18,083

Jeanswear
 
6,993

 
 
20,357

Imagewear
 
3,895

 
 
1,308

Other
 
—

 
 
1,277

Corporate
 
3,366

 
 
14,074

Total
 
$
27,047

 
 
$
55,099


The activity in the restructuring accrual for December 2017 and 2016 is as follows:
(In thousands)
 
Severance
 
Other
 
Total
Accrual at December 2015
 
$
—

 
$
—

 
$
—

Charges
 
50,395

 
1,310

 
51,705

Cash payments
 
(667
)
 
(432
)
 
(1,099
)
Accrual at December 2016
 
49,728

 
878

 
50,606

Charges
 
22,611

 
4,436

 
27,047

Cash payments
 
(37,349
)
 
(878
)
 
(38,227
)
Adjustments to accruals
 
(2,783
)
 
—

 
(2,783
)
Currency translation
 
1,601

 
—

 
1,601

Accrual at December 2017
 
$
33,808

 
$
4,436

 
$
38,244