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Restructuring

12 Months Ended

Jan. 01, 2022

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 was 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 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. The Company estimates NWF 2.0 charges of $5 million for fiscal year 2022.

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

			Fiscal Year 2021
			Liabilities												Cash Payments						Non-cash Items						Liabilities
			January 2, 2021						Charges																		January 1, 2022
Store closures			$	240					$	1,215					$	500					$	655					$	300
Professional services			2,280						5,695						7,332						—						643
Severance and employee-related benefits			7,741						14,979						18,332						—						4,388
Total			$	10,261					$	21,889					$	26,164					$	655					$	5,331

			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):

			2021						2020						2019
Americas			$	2,356					$	4,969					$	2,048
Europe			9,868						12,630						9,333
Asia			5,072						8,823						773
Corporate			4,593						10,086						6,677
Consolidated			$	21,889					$	36,508					$	18,831

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- References

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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

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