RESTRUCTURING

The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF 1.0"). As part of NWF 1.0, 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, lease exit obligations and termination fees and accelerated depreciation. The Company is on track to spend a total estimated $150 million in restructuring charges under its NWF 1.0 program. NWF 1.0 restructuring charges of approximately $9.3 million, $46.6 million and $48.2 million were recorded during the First Quarter, fiscal year 2018 and fiscal year 2017, respectively.

The following table shows a rollforward of the accrued liability related to the Company’s NWF 1.0 restructuring plan (in thousands):



	For the 13 Weeks Ended March 30, 2019
	Liabilities								Liabilities
	December 29, 2018		Charges		Cash Payments		Non-cash Items		March 30, 2019
Store closures	$	2,818	$	2,664	$	482	$	1,953	$	3,047
Professional services	2,198		485		819		—		1,864
Severance and employee-related benefits	3,011		6,197		3,013		2,283		3,912
Total	$	8,027	$	9,346	$	4,314	$	4,236	$	8,823



	For the 13 Weeks Ended March 31, 2018
	Liabilities								Liabilities
	December 30, 2017		Charges		Cash Payments		Non-cash Items		March 31, 2018
Store closures	$	2,973	$	8,556	$	5,413	$	1,711	$	4,405
Professional services	185		1,158		645		—		698
Severance and employee-related benefits	1,317		11,604		4,128		5,458		3,335
Total	$	4,475	$	21,318	$	10,186	$	7,169	$	8,438

NWF 1.0 restructuring charges by operating segment were as follows (in thousands):



	For the 13 Weeks Ended March 30, 2019		For the 13 Weeks Ended March 31, 2018
Americas	$	2,662	$	8,124
Europe	1,234		3,367
Asia	547		695
Corporate	4,903		9,132
Consolidated	$	9,346	$	21,318

Additionally, during the First Quarter the Company launched a new restructuring program, New World Fossil 2.0 (“NWF 2.0”), which is focused on optimizing the Company’s structures to be more efficient, with faster decision-making and a more customer-centric focus. In addition to optimizing the way the Company goes to market, the Company is also pursuing additional gross margin expansion opportunities. The Company is taking a zero based budgeting approach to adjust its business model to enable more investment in digital capabilities and marketing, move closer to the consumer and react more quickly to the ever-evolving consumer shopping patterns. The Company recorded restructuring expenses of $0.8 million under this new NWF 2.0 restructuring program during the First Quarter.