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RESTRUCTURING | 9 Months Ended
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Sep. 28, 2019
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 1.0") and concluded in the Third Quarter. As part of NWF 1.0, the Company worked to improve operating profit and support sales growth through a leaner infrastructure and an enhanced business model. Restructuring costs under the program included store impairment, lease exit obligations and termination fees and accelerated depreciation. NWF 1.0 restructuring charges of approximately $10.8 million, $46.6 million and $48.2 million were recorded during the Year To Date period, fiscal year 2018 and fiscal year 2017, respectively. The following tables show a rollforward of the accrued liability related to the Company’s NWF 1.0 restructuring plan (in thousands):
| For the 13 Weeks Ended September 28, 2019
| Liabilities |  |  |  |  |  |  |  | Liabilities
| June 29, 2019 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 28, 2019
Store closures | $ | 2,354 |  |  | $ | — |  |  | $ | 192 |  |  | $ | — |  |  | $ | 2,162 |
Professional services | 1,397 |  |  | — |  |  | 82 |  |  | — |  |  | 1,315 |
Severance and employee-related benefits | 2,354 |  |  | — |  |  | 685 |  |  | — |  |  | 1,669 |
Total | $ | 6,105 |  |  | $ | — |  |  | $ | 959 |  |  | $ | — |  |  | $ | 5,146 |
| For the 13 Weeks Ended September 29, 2018
| Liabilities |  |  |  |  |  |  |  | Liabilities
| June 30, 2018 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 29, 2018
Store closures | $ | 5,415 |  |  | $ | 665 |  |  | $ | 810 |  |  | $ | 7 |  |  | $ | 5,263 |
Professional services | 1,518 |  |  | 4,133 |  |  | 3,650 |  |  | — |  |  | 2,001 |
Severance and employee-related benefits | 2,836 |  |  | 1,277 |  |  | 1,271 |  |  | — |  |  | 2,842 |
Total | $ | 9,769 |  |  | $ | 6,075 |  |  | $ | 5,731 |  |  | $ | 7 |  |  | $ | 10,106 |
| For the 39 Weeks Ended September 28, 2019
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 29, 2018 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 28, 2019
Store closures | $ | 2,818 |  |  | $ | 2,971 |  |  | $ | 1,374 |  |  | $ | 2,253 |  |  | $ | 2,162 |
Professional services | 2,198 |  |  | 485 |  |  | 1,368 |  |  | — |  |  | 1,315 |
Severance and employee-related benefits | 3,011 |  |  | 7,349 |  |  | 6,323 |  |  | 2,368 |  |  | 1,669 |
Total | $ | 8,027 |  |  | $ | 10,805 |  |  | $ | 9,065 |  |  | $ | 4,621 |  |  | $ | 5,146 |
| For the 39 Weeks Ended September 29, 2018
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 30, 2017 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 29, 2018
Store closures | $ | 2,973 |  |  | $ | 15,655 |  |  | $ | 11,413 |  |  | $ | 1,952 |  |  | $ | 5,263 |
Professional services | 185 |  |  | 9,410 |  |  | 7,594 |  |  | — |  |  | 2,001 |
Severance and employee-related benefits | 1,317 |  |  | 16,877 |  |  | 9,894 |  |  | 5,458 |  |  | 2,842 |
Total | $ | 4,475 |  |  | $ | 41,942 |  |  | $ | 28,901 |  |  | $ | 7,410 |  |  | $ | 10,106 |
NWF 1.0 restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended September 28, 2019 |  | For the 13 Weeks Ended September 29, 2018 |  | For the 39 Weeks Ended September 28, 2019 |  | For the 39 Weeks Ended September 29, 2018
Americas | $ | — |  |  | $ | 444 |  |  | $ | 2,941 |  |  | $ | 16,981 |
Europe | — |  |  | 1,761 |  |  | 1,272 |  |  | 7,479 |
Asia | — |  |  | 382 |  |  | 793 |  |  | 1,714 |
Corporate | — |  |  | 3,488 |  |  | 5,799 |  |  | 15,768 |
Consolidated | $ | — |  |  | $ | 6,075 |  |  | $ | 10,805 |  |  | $ | 41,942 |
Additionally, during the first quarter of fiscal 2019, the Company launched a new restructuring program, New World Fossil 2.0 (“NWF 2.0”), which is focused on optimizing the Company’s operating structure 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 following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands):
| For the 13 Weeks Ended September 28, 2019
| Liabilities |  |  |  |  |  | Liabilities
| June 29, 2019 |  | Charges |  | Cash Payments |  | September 28, 2019
Professional services | 730 |  |  | 2,411 |  |  | 962 |  |  | 2,179 |
Severance and employee-related benefits | 3,772 |  |  | 4,568 |  |  | 3,086 |  |  | 5,254 |
Total | $ | 4,502 |  |  | $ | 6,979 |  |  | $ | 4,048 |  |  | $ | 7,433 |
| For the 39 Weeks Ended September 28, 2019
| Liabilities |  |  |  |  |  | Liabilities
| December 29, 2018 |  | Charges |  | Cash Payments |  | September 28, 2019
Professional services and other | — |  |  | 5,049 |  |  | 2,870 |  |  | 2,179 |
Severance and employee-related benefits | — |  |  | 8,629 |  |  | 3,375 |  |  | 5,254 |
Total | $ | — |  |  | $ | 13,678 |  |  | $ | 6,245 |  |  | $ | 7,433 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended September 28, 2019 |  | For the 39 Weeks Ended September 28, 2019
Americas | $ | 549 |  |  | $ | 549 |
Europe | 3,286 |  |  | 8,680 |
Asia | 136 |  |  | 136 |
Corporate | 3,008 |  |  | 4,313 |
Consolidated | $ | 6,979 |  |  | $ | 13,678 |

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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 + Details
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