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Restructuring

12 Months Ended

Dec. 29, 2018

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 results in restructuring costs, such as store impairment, recorded lease obligations and termination fees and accelerated depreciation.

Of the total estimated $150 million restructuring charges, approximately $46.6 million, $48.2 million and $27.8 million were recorded during fiscal year 2018, 2017 and 2016, respectively.

The following tables show a rollforward of the liabilities incurred under the Company's restructuring plans (in thousands):

	Fiscal Year 2018
	Liabilities								Cash payments				Non-cash items				Liabilities
	December 30, 2017				Charges												December 29, 2018
Store closures	$	2,973			$	14,906			$	14,141			$	920			$	2,818
Professional services	185				12,439				10,426				—				2,198
Severance and employee-related benefits	1,317				19,285				12,259				5,332				3,011
Total	$	4,475			$	46,630			$	36,826			$	6,252			$	8,027

	Fiscal Year 2017
	Liabilities								Cash payments				Non-cash items				Liabilities
	December 31, 2016				Charges												December 30, 2017
Store closures	$	4,546			$	13,045			$	6,636			$	7,982			$	2,973
Professional services and other	794				3,507				2,618				1,498				185
Severance and employee-related benefits	—				31,619				29,098				1,204				1,317
Total	$	5,340			$	48,171			$	38,352			$	10,684			$	4,475

	Fiscal Year 2016
	Liabilities								Cash payments				Non-cash items				Liabilities
	January 2, 2016				Charges												December 31, 2016
Store closures	$	—			$	22,247			$	3,430			$	14,271			$	4,546
Professional services	—				4,057				3,263				—				794
Supply chain relocation	—				1,474				—				1,474				—
Total	$	—			$	27,778			$	6,693			$	15,745			$	5,340

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

	2018				2017				2016
Americas	$	17,197			$	12,964			$	19,745
Europe	10,116				12,606				1,888
Asia	2,946				9,894				746
Corporate	16,371				12,707				5,399
Consolidated	$	46,630			$	48,171			$	27,778

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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