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RESTRUCTURING

6 Months Ended

Jul. 01, 2017

Restructuring and Related Activities [Abstract]

RESTRUCTURING

RESTRUCTURING

The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF"). As part of NWF, the Company targets to improve operating profit and support sales growth through a leaner infrastructure and an enhanced business model. The Company is working to achieve greater efficiencies from production to distribution through activities such as organizational changes, reducing its overall product assortment, optimizing its base cost structure and consolidating facilities. The Company also intends to build a quicker and more responsive operating platform. The Company is reducing its retail footprint to reflect the evolving shopping habits of today's consumer, which includes restructuring costs, such as store impairment, recorded lease obligations and termination fees and accelerated depreciation. Of the total estimated $150 million restructuring charges, approximately $27.8 million and $36.0 million were recorded during fiscal year 2016 and the Year To Date period, respectively. The Company estimates total fiscal year 2017 NWF restructuring charges of $45 million.

The following table shows a rollforward of the accrued liability related to the Company’s restructuring plan (in thousands):

	For the 13 Weeks Ended July 1, 2017
	Liabilities																Liabilities
	April 1, 2017				Charges				Cash Payments				Non-cash Items				July 1, 2017
Store closures	$	5,501			$	3,017			$	1,060			$	2,565			$	4,893
Professional services	92				856				832				—				116
Severance and employee-related benefits	2,103				5,892				5,256				1,204				1,535
Total	$	7,696			$	9,765			$	7,148			$	3,769			$	6,544

	For the 26 Weeks Ended July 1, 2017
	Liabilities																Liabilities
	December 31, 2016				Charges				Cash Payments				Non-cash Items				July 1, 2017
Store closures	$	4,546			$	5,741			$	2,178			$	3,216			$	4,893
Professional services	794				1,430				2,108				—				116
Severance and employee-related benefits	—				28,878				26,139				1,204				1,535
Total	$	5,340			$	36,049			$	30,425			$	4,420			$	6,544

Restructuring charges by operating segment were as follows (in thousands):

	For the 13 Weeks Ended July 1, 2017				For the 26 Weeks Ended July 1, 2017
Americas	$	2,179			$	7,796
Europe	2,160				7,682
Asia	3,353				8,139
Corporate	2,073				12,432
Consolidated	$	9,765			$	36,049

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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