XML 42 R27.htm IDEA: XBRL DOCUMENT
v3.22.4

Restructuring | 12 Months Ended
--- | ---
Dec. 31, 2022
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring In fiscal year 2022, the Company completed its New World Fossil 2.0 (“NWF 2.0”) restructuring program it launched in 2019, 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 announced its Transform and Grow strategy ("TAG") designed to reduce operating costs, improve operating margins, and advance the Company’s commitment to profitable growth. Included in this strategy is a new restructuring plan (the "TAG Plan") beginning in fiscal year 2023, intended to lower operating expenses and reduce working capital. TAG is expected to be implemented over a two year period and is intended to generate estimated annualized benefits of at least $100 million by the end of 2024. The TAG Plan includes a reduction of the Company’s current global workforce in 2023 by approximately eight percent, which includes employee reductions resulting from store closures. The Company estimates approximately $25 million to $30 million in charges in connection with the TAG Plan, which are expected to be incurred during fiscal 2023. The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands):
| Fiscal Year 2022
| Liabilities |  |  |  | Cash Payments |  | Non-cash Items |  | Liabilities
| January 1, 2022 |  | Charges |  |  |  | December 31, 2022
Store closures | $ | 300 |  |  | $ | 787 |  |  | $ | 612 |  |  | $ | 475 |  |  | $ | — |
Professional services | 643 |  |  | 166 |  |  | 735 |  |  | — |  |  | 74 |
Severance and employee-related benefits | 4,388 |  |  | 5,168 |  |  | 6,431 |  |  | 304 |  |  | 2,821 |
Total | $ | 5,331 |  |  | $ | 6,121 |  |  | $ | 7,778 |  |  | $ | 779 |  |  | $ | 2,895 |
| 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 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| 2022 |  | 2021 |  | 2020 |  |
Americas | $ | 234 |  |  | $ | 2,356 |  |  | $ | 4,969 |  |  |
Europe | 1,754 |  |  | 9,868 |  |  | 12,630 |  |  |
Asia | 1,610 |  |  | 5,072 |  |  | 8,823 |  |  |
Corporate | 2,523 |  |  | 4,593 |  |  | 10,086 |  |  |
Consolidated | $ | 6,121 |  |  | $ | 21,889 |  |  | $ | 36,508 |  |  |

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