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RESTRUCTURING | 6 Months Ended
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Jul. 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 $7.0 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 July 2, 2022
| Liabilities |  |  |  |  |  |  |  | Liabilities
| April 2, 2022 |  | Charges |  | Cash Payments |  | Non-cash Items |  | July 2, 2022
Store closures | $ | 264 |  |  | $ | — |  |  | $ | 264 |  |  | $ | — |  |  | $ | — |
Professional services | 357 |  |  | — |  |  | 227 |  |  | — |  |  | 130 |
Severance and employee-related benefits | 4,528 |  |  | 2,887 |  |  | 3,014 |  |  | 785 |  |  | 3,616 |
Total | $ | 5,149 |  |  | $ | 2,887 |  |  | $ | 3,505 |  |  | $ | 785 |  |  | $ | 3,746 |
| 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 26 Weeks Ended July 2, 2022
| Liabilities |  |  |  |  |  |  |  | Liabilities
| January 1, 2022 |  | Charges |  | Cash Payments |  | Non-cash Items |  | July 2, 2022
Store closures | $ | 300 |  |  | $ | 405 |  |  | $ | 613 |  |  | $ | 92 |  |  | $ | — |
Professional services | 643 |  |  | 135 |  |  | 648 |  |  | — |  |  | 130 |
Severance and employee-related benefits | 4,388 |  |  | 4,898 |  |  | 4,885 |  |  | 785 |  |  | 3,616 |
Total | $ | 5,331 |  |  | $ | 5,438 |  |  | $ | 6,146 |  |  | $ | 877 |  |  | $ | 3,746 |
| 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 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended July 2, 2022 |  | For the 13 Weeks Ended July 3, 2021 |  | For the 26 Weeks Ended July 2, 2022 |  | For the 26 Weeks Ended July 3, 2021 |
Americas | $ | 36 |  |  | $ | 707 |  |  | $ | 83 |  |  | $ | 1,379 |  |
Europe | 282 |  |  | 1,781 |  |  | 1,531 |  |  | 7,044 |  |
Asia | 40 |  |  | 895 |  |  | 1,204 |  |  | 1,806 |  |
Corporate | 2,529 |  |  | 2,366 |  |  | 2,620 |  |  | 3,041 |  |
Consolidated | $ | 2,887 |  |  | $ | 5,749 |  |  | $ | 5,438 |  |  | $ | 13,270 |  |

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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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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