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RESTRUCTURING

3 Months Ended

Apr. 03, 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 customer-centric focus. In addition to optimizing the way the Company goes to market, the Company pursued additional gross margin expansion opportunities. The Company has taken 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 changed its 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. Total NWF 2.0 charges since inception in fiscal year 2019 are $62.8 million, of which $7.5 million, $36.5 million and $18.8 million were recorded during the First Quarter, fiscal year 2020 and fiscal year 2019, respectively.

    The following table shows a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands):

			For the 13 Weeks Ended April 3, 2021
			Liabilities																								Liabilities
			January 2, 2021						Charges						Cash Payments						Non-cash Items						April 3, 2021
Store closures			$	240					$	222					$	190					$	221					$	51
Professional services			2,280						586						2,325						—						541
Severance and employee-related benefits			7,741						6,712						5,901						—						8,552
Total			$	10,261					$	7,520					$	8,416					$	221					$	9,144

			For the 14 Weeks Ended April 4, 2020
			Liabilities																								Liabilities
			December 28, 2019						Charges						Cash Payments						Non-cash Items						April 4, 2020
Store closures			$	22					$	732					$	42					$	684					$	28
Professional services			2,824						3,189						3,963						—						2,050
Severance and employee-related benefits			4,238						5,454						5,782						—						3,910
Total			$	7,084					$	9,375					$	9,787					$	684					$	5,988

    NWF 2.0 restructuring charges by operating segment were as follows (in thousands):

			For the 13 Weeks Ended April 3, 2021						For the 14 Weeks Ended April 4, 2020
Americas			$	672					$	1,136
Europe			5,263						766
Asia			275						1,623
Corporate			1,310						5,850
Consolidated			$	7,520					$	9,375

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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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