RESTRUCTURING (Tables)

9 Months Ended

Sep. 27, 2025

Restructuring and Related Activities [Abstract]

Schedule of Components of Restructuring Charges

The following table summarizes the restructuring charges recorded during the three and nine months ended September 2025 and September 2024:



	Three Months Ended September				Nine Months Ended September
(In thousands)
	2025		2024		2025		2024
Severance and employee-related benefits	$	34,297	$	386	$	39,577	$	4,371
Asset impairments	3,864		49		3,864		650
Inventory write-downs	—		—		—		1,902
Other	2,318		1,712		3,679		3,139
Total restructuring charges	$	40,479	$	2,147	$	47,120	$	10,062

The following table presents the classification of these restructuring costs in the Company's statements of operations:


	Three Months Ended September				Nine Months Ended September

(In thousands)	2025		2024		2025		2024
Cost of goods sold	$	38,409	$	2,049	$	40,001	$	8,259
Selling, general, and administrative expenses	2,070		98		7,119		1,803

Total	$	40,479	$	2,147	$	47,120	$	10,062

The following table presents these restructuring costs by business segment:



	Three Months Ended September				Nine Months Ended September
(In thousands)
	2025		2024		2025		2024
Wrangler	$	424	$	1,823	$	1,880	$	7,954
Lee	—		—		—		40

Corporate and other	40,055		324		45,240		2,068

Total	$	40,479	$	2,147	$	47,120	$	10,062

Schedule of Activity in Restructuring

The following table presents activity in the restructuring accrual for the nine-month period ended September 2025:


(In thousands)
Accrual at December 2024	$	1,895
Charges(1)	41,667

Cash payments	(20,518)
Adjustments to accruals	(398)
Currency translation	43
Balance, September 2025	$	22,689

(1) The Company also recorded approximately $5.5 million of non-cash and other charges related to the closure of a portion of our manufacturing facilities and streamlining and transferring select production within our internal manufacturing network.

Kontoor Brands, Inc. 10-Q