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RESTRUCTURING

9 Months Ended

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

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