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RESTRUCTURING | 3 Months Ended
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Apr. 01, 2023
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING In the First Quarter, 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"), that is 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 TAG Plan will also include the exit of certain product offerings. The Company estimates approximately $25 million to $30 million in total charges associated with the TAG Plan, all expected to be incurred during fiscal 2023. The following table shows a summary of TAG Plan charges (in thousands):
| For the 13 Weeks Ended April 1, 2023 |  |
Cost of sales | $ | 5,264 |  |  |
Selling, general and administrative expenses | 7,097 |  |  |
Total | $ | 12,361 |  |  |
The following table shows a rollforward of the accrued liability related to the Company’s TAG Plan (in thousands):
| For the 13 Weeks Ended April 1, 2023
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 31, 2022 |  | Charges |  | Cash Payments |  |  |  | April 1, 2023
Professional services | — |  |  | 36 |  |  | 16 |  |  |  |  | 20 |
Severance and employee-related benefits | — |  |  | 7,061 |  |  | 2,561 |  |  |  |  | 4,500 |
Charges related to exits of certain product offerings | — |  |  | 5,264 |  |  | — |  |  |  |  | 5,264 |
Total | $ | — |  |  | $ | 12,361 |  |  | $ | 2,577 |  |  |  |  | $ | 9,784 |
TAG Plan restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended April 1, 2023
Americas | $ | 2,959 |
Europe | 3,955 |
Asia | 4,268 |
Corporate | 1,179 |
Consolidated | $ | 12,361 |
In fiscal year 2022, the Company completed its New World Fossil 2.0 (“NWF 2.0”) restructuring program it launched in 2019. 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 1, 2023
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 31, 2022 |  |  |  | Cash Payments |  |  |  | April 1, 2023
Professional services | $ | 74 |  |  |  |  | $ | 14 |  |  |  |  | $ | 60 |
Severance and employee-related benefits | 2,821 |  |  |  |  | 2,234 |  |  |  |  | 587 |
Total | $ | 2,895 |  |  |  |  | $ | 2,248 |  |  |  |  | $ | 647 |
| For the 13 Weeks Ended April 2, 2022
| Liabilities |  |  |  |  |  |  |  | Liabilities
| January 2, 2021 |  | 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 |
NWF 2.0 restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended April 2, 2022 |  |  |  |  |  |
Americas | $ | 47 |  |  |  |  |  |  |
Europe | 1,250 |  |  |  |  |  |  |
Asia | 1,163 |  |  |  |  |  |  |
Corporate | 91 |  |  |  |  |  |  |
Consolidated | $ | 2,551 |  |  |  |  |  |  |

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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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