Kontoor Brands, Inc.

NOTE 21 —LEASES

The following table presents lease-related assets and liabilities recorded in the Company's balance sheets:

(a) "Operating lease assets, noncurrent" at December 2025 includes $85.8 million related to Helly Hansen.

(b) "Operating lease liabilities, current" at December 2025 includes $14.2 million related to Helly Hansen.

(c) "Operating lease liabilities, noncurrent" at December 2025 includes $77.2 million related to Helly Hansen.

Kontoor Brands, Inc. 2025 Form 10-K 91

Lease costs

The following table presents certain information related to lease costs for operating leases:

(a) "Operating lease costs" for the year ended December 2025 include $13.9 million related to Helly Hansen.

The following table presents supplemental cash flow and non-cash information related to operating leases:

(a)Includes $96.6 million related to the right-of-use operating lease assets obtained in the Acquisition on May 31, 2025

The following table presents future maturities of operating lease liabilities as of December 2025:

As of December 2025, the Company hadnot entered into any operating lease arrangements that had not yet commenced. The Company continuously monitors lease contracts and may negotiate amendments that include extensions or modifications to existing leases.

Refer to Note 15 to the Company's financial statements in this Form 10-K for additional information on the related fair value measurements.

NOTE 22 —COMMITMENTS

The Company is obligated under noncancelable operating leases. Refer to Note 21 to the Company's financial statements in this Form 10-K for additional information related to future lease payments.

The Company has entered into licensing agreements that provide the Company rights to market products under trademarks owned by other parties. Royalties under these agreements are recognized within "cost of goods sold" in the statements of operations. Certain of these agreements contain minimum royalty and minimum advertising requirements. As of December 2025, future minimum

92 Kontoor Brands, Inc. 2025 Form 10-K royalty payments, including any required advertising payments, are $2.2 million, $1.4 million, $1.2 million, $0.1 million and $0.1 million for 2026 through 2030, respectively. There are currently $0.2 million in contractual payments due beyond 2030.

In the ordinary course of business, the Company has entered into purchase commitments for raw materials, contract production and finished products. As of December 2025, these agreements will require total payments of $576.1 million, $1.6 million, $1.6 million and $0.4 million for 2026 through 2029, respectively.

The Company has entered into commitments for (i) service and maintenance agreements related to management information systems, (ii) capital spending and (iii) advertising. As of December 2025, future payments under these agreements are $38.1 million, $21.1 million, $11.3 million, $2.7 million and $1.6 million for 2026 through 2030, respectively. There are currently $0.9 million in contractual payments due beyond 2030.

Surety bonds, customs bonds, standby letters of credit and international bank guarantees, all of which represent contingent guarantees of performance under self-insurance and other programs, totaled $52.6 million as of December 2025. These commitments would only be drawn upon if the Company were to fail to meet related claims or other obligations.

NOTE 23 —RESTRUCTURING

Restructuring charges relate to costs associated with exit or disposal activities. In 2025, the Company incurred charges of $43.5 million primarily related to the decision to close a portion of our manufacturing facilities, resulting in severance and employee-related charges and asset impairments. The Company also incurred other restructuring charges related to business optimization activities related to Project Jeanius. In 2024, the Company incurred restructuring charges related to actions to streamline and transfer select production within our internal manufacturing network and other business optimization activities. In 2023, the Company took actions to drive efficiencies in our operations, which included reducing our global workforce and streamlining and transferring select production within our internal manufacturing network.

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

The following table presents the components of restructuring charges:

The following table presents the restructuring costs by business segment:

Kontoor Brands, Inc. 2025 Form 10-K 93

The following table presents activity in the restructuring accrual, primarily related to severance and employee-related benefits, for the years ended December 2025 and December 2024:

(a)The Company also recorded approximately $7.8 million and $9.5 million of non-cash and other charges for 2025 and 2024, respectively.

Of the $8.5 million total restructuring accrual reported in the Company's balance sheet at December 2025, $8.3 million is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities," and the remaining $0.2 million was classified within "other liabilities." Of the $1.9 million total restructuring accrual reported in the Company's balance sheet at December 2024, $1.8 million was classified within "accrued and other current liabilities," and the remaining $0.1 million was classified within "other liabilities."