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Restructuring | 12 Months Ended
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Jan. 02, 2021
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring In fiscal year 2019, the Company launched New World Fossil 2.0 - Transform to Grow Program (“NWF 2.0”), which is focused on optimizing the Company’s operating structure to be more efficient, with faster decision-making and a more consumer-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 also plans to change overall business processes and resources, creating a more centrally directed operating model, reducing complexity and redundancy, and operating at a lower cost base. The NWF 2.0 restructuring program was expanded to address additional challenges posed by COVID-19, including a number of cost saving measures such as store closures. The Company estimates total NWF 2.0 charges of $75 million to $85 million. The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands):
| Fiscal Year 2020
| Liabilities |  |  |  | Cash Payments |  | Non-cash Items |  | Liabilities
| December 28, 2019 |  | Charges |  |  |  | January 2, 2021
Store closures | $ | 22 |  |  | $ | 4,347 |  |  | $ | 1,597 |  |  | $ | 2,532 |  |  | $ | 240 |
Professional services | 2,824 |  |  | 7,503 |  |  | 8,047 |  |  | — |  |  | 2,280 |
Severance and employee-related benefits | 4,238 |  |  | 24,658 |  |  | 21,155 |  |  | — |  |  | 7,741 |
Total | $ | 7,084 |  |  | $ | 36,508 |  |  | $ | 30,799 |  |  | $ | 2,532 |  |  | $ | 10,261 |
| Fiscal Year 2019
| Liabilities |  |  |  | Cash Payments |  | Non-cash Items |  | Liabilities
| December 29, 2018 |  | Charges |  |  |  | December 28, 2019
Store closures | $ | — |  |  | $ | 597 |  |  | $ | — |  |  | $ | 575 |  |  | $ | 22 |
Professional services | — |  |  | 8,039 |  |  | 5,215 |  |  | — |  |  | 2,824 |
Severance and employee-related benefits | — |  |  | 10,195 |  |  | 5,957 |  |  | — |  |  | 4,238 |
Total | $ | — |  |  | $ | 18,831 |  |  | $ | 11,172 |  |  | $ | 575 |  |  | $ | 7,084 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| 2020 |  | 2019 |  |  |  |
Americas | $ | 4,969 |  |  | $ | 2,048 |  |  |  |  |
Europe | 12,630 |  |  | 9,333 |  |  |  |  |
Asia | 8,823 |  |  | 773 |  |  |  |  |
Corporate | 10,086 |  |  | 6,677 |  |  |  |  |
Consolidated | $ | 36,508 |  |  | $ | 18,831 |  |  |  |  |
The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF 1.0") and concluded in fiscal 2019. The remaining liability under NWF 1.0 is no longer material as of January 2, 2021, therefore the rollforward of the liability is not presented below. The following table shows a rollforward of the accrued liability related to the Company’s NWF 1.0 restructuring plan (in thousands):
| Fiscal Year 2019
| Liabilities |  |  |  | Cash Payments |  | Non-cash Items |  | Liabilities
| December 29, 2018 |  | Charges |  |  |  | December 28, 2019
Store closures | $ | 2,818 |  |  | $ | 2,971 |  |  | $ | 1,673 |  |  | $ | 2,253 |  |  | $ | 1,863 |
Professional services | 2,198 |  |  | 485 |  |  | 1,368 |  |  | — |  |  | 1,315 |
Severance and employee-related benefits | 3,011 |  |  | 7,349 |  |  | 7,460 |  |  | 2,368 |  |  | 532 |
Total | $ | 8,027 |  |  | $ | 10,805 |  |  | $ | 10,501 |  |  | $ | 4,621 |  |  | $ | 3,710 |
NWF 1.0 restructuring charges by operating segment were as follows (in thousands):
| 2019 |  | 2018
Americas | $ | 2,941 |  |  | $ | 17,197 |
Europe | 1,272 |  |  | 10,116 |
Asia | 793 |  |  | 2,946 |
Corporate | 5,799 |  |  | 16,371 |
Consolidated | $ | 10,805 |  |  | $ | 46,630 |

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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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