XML 34 R22.htm IDEA: XBRL DOCUMENT v3.21.2

RESTRUCTURING

6 Months Ended

Jul. 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 $68.6 million, of which $13.3 million, $36.5 million and $18.8 million were recorded during the Year to Date Period, 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 July 3, 2021
			Liabilities																								Liabilities
			April 3, 2021						Charges						Cash Payments						Non-cash Items						July 3, 2021
Store closures			$	51					$	1,447					$	—					$	1,479					$	19
Professional services			541						2,821						1,286						—						2,076
Severance and employee-related benefits			8,552						1,481						4,277						—						5,756
Total			$	9,144					$	5,749					$	5,563					$	1,479					$	7,851

			For the 13 Weeks Ended July 4, 2020
			Liabilities																								Liabilities
			April 4, 2020						Charges						Cash Payments						Non-cash Items						July 4, 2020
Store closures			$	28					$	1,961					$	681					$	725					$	583
Professional services			2,050						1,473						3,200						—						323
Severance and employee-related benefits			3,910						7,098						4,660						—						6,348
Total			$	5,988					$	10,532					$	8,541					$	725					$	7,254

			For the 26 Weeks Ended July 3, 2021
			Liabilities																								Liabilities
			January 2, 2021						Charges						Cash Payments						Non-cash Items						July 3, 2021
Store closures			$	240					$	1,670					$	190					$	1,701					$	19
Professional services			2,280						3,407						3,611						—						2,076
Severance and employee-related benefits			7,741						8,193						10,178						—						5,756
Total			$	10,261					$	13,270					$	13,979					$	1,701					$	7,851

			For the 27 Weeks Ended July 4, 2020
			Liabilities																								Liabilities
			December 29, 2019						Charges						Cash Payments						Non-cash Items						July 4, 2020
Store closures			$	22					$	2,693					$	723					$	1,409					$	583
Professional services			$	2,824					$	4,662					$	7,163					—						$	323
Severance and employee-related benefits			4,238						12,552						10,442						—						6,348
Total			$	7,084					$	19,907					$	18,328					$	1,409					$	7,254

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

			For the 13 Weeks Ended July 3, 2021						For the 13 Weeks Ended July 4, 2020						For the 26 Weeks Ended July 3, 2021						For the 27 Weeks Ended July 4, 2020
Americas			$	707					$	2,821					$	1,379					$	3,957
Europe			1,781						2,916						7,044						3,682
Asia			895						2,822						1,806						4,445
Corporate			2,366						1,973						3,041						7,823
Consolidated			$	5,749					$	10,532					$	13,270					$	19,907

X

- References

No definition available.

+ Details

Name:	us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

+ Details

Name:	us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration