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RESTRUCTURING | 9 Months Ended
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Sep. 28, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING In fiscal year 2023, 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. The Company expanded the scope and duration of TAG to focus on a more comprehensive review of its global business operations. The expansion of TAG will put greater emphasis on initiatives to exit or minimize certain product offerings, brands and distribution, and to strengthen gross margin and increase the level of operating expense efficiencies. TAG is estimated to generate approximately $300 million of annualized operating benefits by the end of 2025. The Company estimates approximately $100 million to $120 million in total charges over the duration of TAG, with approximately $40 million in fiscal year 2024. The following table shows a summary of TAG plan charges (in thousands):
| For the 13 Weeks Ended September 28, 2024 |  | For the 13 Weeks Ended September 30, 2023 |  | For the 39 Weeks Ended September 28, 2024 |  | For the 39 Weeks Ended September 30, 2023
Cost of sales | $ | — |  |  | $ | (1,347) |  |  | $ | (241) |  |  | $ | 6,827 |
Selling, general and administrative expenses | 4,849 |  |  | 16,003 |  |  | 31,575 |  |  | 27,732 |
Consolidated | $ | 4,849 |  |  | $ | 14,656 |  |  | $ | 31,334 |  |  | $ | 34,559 |
The following table shows a rollforward of the accrued liability related to the Company’s TAG plan (in thousands):
| For the 13 Weeks Ended September 28, 2024
| Liabilities |  |  |  |  |  |  |  | Liabilities
| June 29, 2024 |  | Charges |  | Cash Payments |  |  |  | September 28, 2024
Professional services | $ | 11,319 |  |  | $ | 3,667 |  |  | $ | 11,149 |  |  |  |  | $ | 3,837 |
Severance and employee-related benefits | 8,349 |  |  | 1,182 |  |  | 3,656 |  |  |  |  | 5,875 |
Charges related to exits of certain product offerings | 300 |  |  | — |  |  | — |  |  |  |  | 300 |
Total | $ | 19,968 |  |  | $ | 4,849 |  |  | $ | 14,805 |  |  |  |  | $ | 10,012 |
| For the 13 Weeks Ended September 30, 2023
| Liabilities |  |  |  |  |  |  |  | Liabilities
| July 1, 2023 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 30, 2023
Stores and facilities closures | $ | — |  |  | $ | 4,730 |  |  | $ | — |  |  | $ | 4,730 |  |  | $ | — |
Professional services | 898 |  |  | 3,298 |  |  | 2,268 |  |  | — |  |  | 1,928 |
Severance and employee-related benefits | 4,813 |  |  | 7,975 |  |  | 6,424 |  |  | 318 |  |  | 6,046 |
Charges related to exits of certain product offerings | 7,474 |  |  | (1,347) |  |  | — |  |  | — |  |  | 6,127 |
Total | $ | 13,185 |  |  | $ | 14,656 |  |  | $ | 8,692 |  |  | $ | 5,048 |  |  | $ | 14,101 |
| For the 39 Weeks Ended September 28, 2024
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 30, 2023 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 28, 2024
Stores and facilities closures | $ | — |  |  | $ | 143 |  |  | $ | 7 |  |  | $ | 136 |  |  | $ | — |
Professional services | 117 |  |  | 17,719 |  |  | 13,999 |  |  | — |  |  | 3,837 |
Severance and employee-related benefits | 8,117 |  |  | 13,713 |  |  | 15,590 |  |  | 365 |  |  | 5,875 |
Charges related to exits of certain product offerings | 3,821 |  |  | (241) |  |  | 3,280 |  |  | — |  |  | 300 |
Total | $ | 12,055 |  |  | $ | 31,334 |  |  | $ | 32,876 |  |  | $ | 501 |  |  | $ | 10,012 |
| For the 39 Weeks Ended September 30, 2023
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 31, 2022 |  | Charges |  | Cash Payments |  | Non-cash Items |  | September 30, 2023
Stores and facilities closures | $ | — |  |  | $ | 4,730 |  |  | $ | — |  |  | $ | 4,730 |  |  | $ | — |
Professional services | — |  |  | 4,300 |  |  | 2,372 |  |  | — |  |  | 1,928 |
Severance and employee-related benefits | — |  |  | 18,702 |  |  | 12,338 |  |  | 318 |  |  | 6,046 |
Charges related to exits of certain product offerings | — |  |  | 6,827 |  |  | 700 |  |  | — |  |  | 6,127 |
Total | $ | — |  |  | $ | 34,559 |  |  | $ | 15,410 |  |  | 5,048 |  |  | $ | 14,101 |
TAG plan restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended September 28, 2024 |  | For the 13 Weeks Ended September 30, 2023 |  | For the 39 Weeks Ended September 28, 2024 |  | For the 39 Weeks Ended September 30, 2023
Americas | $ | 652 |  |  | $ | (488) |  |  | $ | 1,174 |  |  | $ | 4,005 |
Europe | 179 |  |  | (368) |  |  | 5,531 |  |  | 6,973 |
Asia | 597 |  |  | 2,556 |  |  | 1,830 |  |  | 8,510 |
Corporate | 3,421 |  |  | 12,956 |  |  | 22,799 |  |  | 15,071 |
Consolidated | $ | 4,849 |  |  | $ | 14,656 |  |  | $ | 31,334 |  |  | $ | 34,559 |
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 September 30, 2023 |  |
| Liabilities |  |  |  |  |  |  |  | Liabilities |  |
| July 1, 2023 |  |  |  | Cash Payments |  |  |  | September 30, 2023 |  |
Professional services | $ | 47 |  |  |  |  | $ | 47 |  |  |  |  | $ | — |  |  |
Severance and employee-related benefits | 260 |  |  |  |  | 124 |  |  |  |  | 136 |  |  |
Total | $ | 307 |  |  |  |  | $ | 171 |  |  |  |  | $ | 136 |  |  |
| For the 39 Weeks Ended September 30, 2023
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 31, 2022 |  |  |  | Cash Payments |  |  |  | September 30, 2023
Professional services | $ | 74 |  |  |  |  | $ | 74 |  |  |  |  | $ | — |
Severance and employee-related benefits | 2,821 |  |  |  |  | 2,685 |  |  |  |  | 136 |
Total | $ | 2,895 |  |  |  |  | $ | 2,759 |  |  |  |  | $ | 136 |

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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