RESTRUCTURING

3 Months Ended

Apr. 04, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

RESTRUCTURING

The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF 1.0") and concluded in fiscal year 2019. The remaining liability under NWF 1.0 is $3.7 million.

In fiscal 2019, the Company launched New World Fossil 2.0 - Transform to Grow Program (“NWF 2.0”), which is 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 is also pursuing additional gross margin expansion opportunities. The Company is taking 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 plans to change to overall business processes and resources, creating a more centrally directed operating model, reducing complexity and redundancy, and operating at a lower cost base.

The following table shows a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands):

	For the 14 Weeks Ended April 4, 2020
	Liabilities								Liabilities
	December 28, 2019		Charges		Cash Payments		Non-cash Items		April 4, 2020
Store closures	$	22	$	732	$	42	$	684	$	28
Professional services	2,824		3,189		3,963		—		2,050
Severance and employee-related benefits	4,238		5,454		5,782		—		3,910
Total	$	7,084	$	9,375	$	9,787	$	684	$	5,988

NWF 2.0 restructuring charges by operating segment were as follows (in thousands):

	For the 14 Weeks Ended April 4, 2020
Americas	$	1,136
Europe	766
Asia	1,623
Corporate	5,850
Consolidated	$	9,375

Additionally, the NWF 2.0 restructuring program will be expanded to address additional challenges posed by COVID-19. The program will include additional organizational efficiencies, cost savings measures, and accelerating digital initiatives. The Company estimates total NWF 2.0 charges of $50 million to $70 million, with approximately $25 million of those charges in fiscal year 2020.