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RESTRUCTURING

3 Months Ended

Apr. 02, 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 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. The Company estimates NWF 2.0 total charges of $5 million for fiscal year 2022, which will conclude this program.

    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 2, 2022
			Liabilities																								Liabilities
			January 1, 2022						Charges						Cash Payments						Non-cash Items						April 2, 2022
Store closures			$	300					$	405					$	349					$	92					$	264
Professional services			643						135						421						—						357
Severance and employee-related benefits			4,388						2,011						1,871						—						4,528
Total			$	5,331					$	2,551					$	2,641					$	92					$	5,149

			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

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

			For the 13 Weeks Ended April 2, 2022						For the 13 Weeks Ended April 3, 2021
Americas			$	47					$	672
Europe			1,250						5,263
Asia			1,163						275
Corporate			91						1,310
Consolidated			$	2,551					$	7,520

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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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