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RESTRUCTURING

9 Months Ended

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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- References

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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

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