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RESTRUCTURING | 9 Months Ended
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Oct. 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 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 $74.0 million, of which $18.7 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 October 2, 2021
| Liabilities |  |  |  |  |  |  |  | Liabilities
| July 3, 2021 |  | Charges |  | Cash Payments |  | Non-cash Items |  | October 2, 2021
Store closures | $ | 19 |  |  | $ | 244 |  |  | $ | 201 |  |  | $ | 47 |  |  | $ | 15 |
Professional services | 2,076 |  |  | 1,405 |  |  | 2,264 |  |  | — |  |  | 1,217 |
Severance and employee-related benefits | 5,756 |  |  | 3,798 |  |  | 4,667 |  |  | — |  |  | 4,887 |
Total | $ | 7,851 |  |  | $ | 5,447 |  |  | $ | 7,132 |  |  | $ | 47 |  |  | $ | 6,119 |
| For the 13 Weeks Ended October 3, 2020
| Liabilities |  |  |  |  |  |  |  | Liabilities
| July 4, 2020 |  | Charges |  | Cash Payments |  | Non-cash Items |  | October 3, 2020
Store closures | $ | 583 |  |  | $ | 731 |  |  | $ | 802 |  |  | $ | 512 |  |  | $ | — |
Professional services | 323 |  |  | 515 |  |  | 456 |  |  | — |  |  | 382 |
Severance and employee-related benefits | 6,348 |  |  | 4,467 |  |  | 6,427 |  |  | — |  |  | 4,388 |
Total | $ | 7,254 |  |  | $ | 5,713 |  |  | $ | 7,685 |  |  | $ | 512 |  |  | $ | 4,770 |
| For the 39 Weeks Ended October 2, 2021
| Liabilities |  |  |  |  |  |  |  | Liabilities
| January 2, 2021 |  | Charges |  | Cash Payments |  | Non-cash Items |  | October 2, 2021
Store closures | $ | 240 |  |  | $ | 1,913 |  |  | $ | 391 |  |  | $ | 1,747 |  |  | $ | 15 |
Professional services | 2,280 |  |  | 4,812 |  |  | 5,875 |  |  | — |  |  | 1,217 |
Severance and employee-related benefits | 7,741 |  |  | 11,991 |  |  | 14,845 |  |  | — |  |  | 4,887 |
Total | $ | 10,261 |  |  | $ | 18,716 |  |  | $ | 21,111 |  |  | $ | 1,747 |  |  | $ | 6,119 |
| For the 40 Weeks Ended October 3, 2020
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 28, 2019 |  | Charges |  | Cash Payments |  | Non-cash Items |  | October 3, 2020
Store closures | $ | 22 |  |  | $ | 3,424 |  |  | $ | 1,525 |  |  | $ | 1,921 |  |  | $ | — |
Professional services | $ | 2,824 |  |  | $ | 5,177 |  |  | $ | 7,619 |  |  | — |  |  | $ | 382 |
Severance and employee-related benefits | 4,238 |  |  | 17,019 |  |  | 16,869 |  |  | — |  |  | 4,388 |
Total | $ | 7,084 |  |  | $ | 25,620 |  |  | $ | 26,013 |  |  | $ | 1,921 |  |  | $ | 4,770 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended October 2, 2021 |  | For the 13 Weeks Ended October 3, 2020 |  | For the 39 Weeks Ended October 2, 2021 |  | For the 40 Weeks Ended October 3, 2020 |  |  |  |  |  |  |
Americas | $ | 737 |  |  | $ | 415 |  |  | $ | 2,116 |  |  | $ | 4,372 |  |  |  |  |  |  |  |
Europe | 1,828 |  |  | 2,869 |  |  | 8,872 |  |  | 6,551 |  |  |  |  |  |  |  |
Asia | 1,484 |  |  | 2,331 |  |  | 3,289 |  |  | 6,776 |  |  |  |  |  |  |  |
Corporate | 1,398 |  |  | 98 |  |  | 4,439 |  |  | 7,921 |  |  |  |  |  |  |  |
Consolidated | $ | 5,447 |  |  | $ | 5,713 |  |  | $ | 18,716 |  |  | $ | 25,620 |  |  |  |  |  |  |  |

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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://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
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