v3.26.3
RESTRUCTURING
 9 Months Ended
Oct. 03, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. During the three and nine months ended September 2026 and September 2025, the Company incurred restructuring and transformation charges as part of Project Jeanius related to the closure and sale of a manufacturing facility. During the nine months ended September 2026, we sold the manufacturing facility for a gain of $15.4 million included in "cost of goods sold" in the Company's statements of operations and as part of "corporate and other" in the Company's business segment information.
The following table summarizes the restructuring charges (gains) recorded during the three and nine months ended September 2026 and September 2025:
Three Months Ended SeptemberNine Months Ended September
(In thousands)
2026202520262025
Severance and employee-related benefits$189 $34,297 $1,324 $39,577 
Asset impairments— 3,864 — 3,864 
Other1,591 2,318 (9,383)3,679 
Total restructuring charges (gains)$1,780 $40,479 $(8,059)$47,120 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended SeptemberNine Months Ended September
(In thousands)2026202520262025
Cost of goods sold$1,735 $38,409 $(8,615)$40,001 
Selling, general, and administrative expenses45 2,070 556 7,119 
Total restructuring charges (gains)$1,780 $40,479 $(8,059)$47,120 
The following table presents these restructuring costs by business segment:
Three Months Ended SeptemberNine Months Ended September
(In thousands)
2026202520262025
Wrangler$921 $424 $1,339 $1,880 
Helly Hansen859 — 1,180 — 
Corporate and other— 40,055 (10,578)45,240 
Total restructuring charges (gains)$1,780 $40,479 $(8,059)$47,120 
The following table presents activity in the restructuring accrual for the nine-month period ended September 2026:
(In thousands)
Accrual at December 2025$8,516 
Charges(1)
5,332 
Cash payments(8,291)
Adjustments to accruals(1,694)
Currency translation5 
Balance, September 2026$3,868 
(1) For the nine months ended September 2026, in addition to the $5.3 million in charges recorded to the restructuring accrual, the Company recorded approximately $2.0 million of non-cash and other charges related to the closure of a manufacturing facility and streamlining and transferring select production within our internal manufacturing network offset by a gain related to the sale of the manufacturing facility of $15.4 million.
All of the $3.9 million restructuring accrual reported in the Company's balance sheet at September 2026 is expected to be paid out within the next 12 months and is classified within "accrued and other current liabilities." Of the $8.5 million restructuring accrual reported in the Company's balance sheet at December 2025, $8.2 million was classified within "accrued and other current liabilities," and the remaining $0.3 million was classified within "other liabilities."