Fossil (FOSL) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2016	Aug. 05, 2016
Document and Entity Information
Entity Registrant Name	Fossil Group, Inc.
Entity Central Index Key	883,569
Document Type	10-Q
Document Period End Date	Jul. 2, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,129,755
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 231,836	$ 289,275
Accounts receivable - net of allowances of $60,219 and $84,558, respectively	257,053	370,761
Inventories	661,748	625,344
Prepaid expenses and other current assets	161,723	157,290
Total current assets	1,312,360	1,442,670
Property, plant and equipment - net of accumulated depreciation of $430,761 and $398,068, respectively	328,004	326,370
Goodwill	364,158	359,394
Intangible and other assets-net	222,016	227,227
Total long-term assets	914,178	912,991
Total assets	2,226,538	2,355,661
Current liabilities:
Accounts payable	195,259	208,083
Short-term and current portion of long-term debt	26,302	23,159
Accrued expenses:
Compensation	53,288	61,496
Royalties	21,086	38,359
Co-op advertising	18,687	28,918
Transaction taxes	25,721	44,425
Other	71,109	76,592
Income taxes payable	249	8,497
Total current liabilities	411,701	489,529
Long-term income taxes payable	20,716	20,634
Deferred income tax liabilities	70,692	75,165
Long-term debt	708,664	785,076
Other long-term liabilities	59,251	52,714
Total long-term liabilities	859,323	933,589
Commitments and contingencies
Stockholders’ equity:
Common stock, 48,127 and 48,125 shares issued and outstanding at July 2, 2016 and January 2, 2016, respectively	481	481
Additional paid-in capital	201,169	187,456
Retained earnings	820,771	813,957
Accumulated other comprehensive income (loss)	(77,172)	(80,506)
Total Fossil Group, Inc. stockholders’ equity	945,249	921,388
Noncontrolling interest	10,265	11,155
Total stockholders’ equity	955,514	932,543
Total liabilities and stockholders’ equity	$ 2,226,538	$ 2,355,661

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Accounts receivable - allowances	$ 60,219	$ 84,558
Property, plant and equipment, accumulated depreciation	$ 430,761	$ 398,068
Common stock, shares issued (in shares)	48,127	48,125
Common stock, shares outstanding (in shares)	48,127	48,125

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Income Statement [Abstract]
Net sales	$ 685,368	$ 739,975	$ 1,345,216	$ 1,465,060
Cost of sales	329,618	330,510	641,129	654,870
Gross profit	355,750	409,465	704,087	810,190
Operating expenses:
Selling, general and administrative expenses	340,300	332,560	674,233	665,042
Restructuring charges	0	6,471	0	18,559
Total operating expenses	340,300	339,031	674,233	683,601
Operating income	15,450	70,434	29,854	126,589
Interest expense	6,421	5,014	12,420	9,193
Other income (expense) - net	2,542	14,294	4,812	21,479
Income before income taxes	11,571	79,714	22,246	138,875
Provision for income taxes	3,499	22,894	6,778	41,417
Net income	8,072	56,820	15,468	97,458
Less: Net income attributable to noncontrolling interest	2,051	2,172	3,654	4,740
Net income attributable to Fossil Group, Inc.	6,021	54,648	11,814	92,718
Other comprehensive income (loss), net of taxes:
Currency translation adjustment	(9,500)	5,559	7,721	(27,947)
Cash flow hedges - net change	4,331	(246)	(6,101)	(185)
Pension plan activity	0	0	1,714	0
Total other comprehensive income (loss)	(5,169)	5,313	3,334	(28,132)
Total comprehensive income	2,903	62,133	18,802	69,326
Less: Comprehensive income attributable to noncontrolling interest	2,051	2,172	3,654	4,740
Comprehensive income attributable to Fossil Group, Inc.	$ 852	$ 59,961	$ 15,148	$ 64,586
Earnings per share:
Basic (in dollars per share)	$ 0.13	$ 1.12	$ 0.25	$ 1.87
Diluted (in dollars per share)	$ 0.12	$ 1.12	$ 0.24	$ 1.87
Weighted average common shares outstanding:
Basic (in shares)	48,119	48,634	48,125	49,464
Diluted (in shares)	48,207	48,744	48,229	49,615

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015
Operating Activities:
Net income	$ 15,468	$ 97,458
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	49,666	43,650
Stock-based compensation	16,463	9,276
Decrease in allowance for returns-net of inventory in transit	(15,473)	(8,438)
Loss on disposal of assets	1,151	2,519
Impairment losses	0	6,602
Decrease in allowance for doubtful accounts	(4,841)	(2,006)
Excess tax benefits from stock-based compensation	(5)	(170)
Deferred income taxes and other	(443)	6,804
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	139,765	183,993
Inventories	(41,107)	(91,020)
Prepaid expenses and other current assets	(8,656)	(19,666)
Accounts payable	(17,106)	(1,040)
Accrued expenses	(54,285)	(50,563)
Income taxes payable	(8,650)	(14,898)
Net cash provided by operating activities	71,947	162,501
Investing Activities:
Additions to property, plant and equipment	(39,313)	(32,464)
Decrease (increase) in intangible and other assets	786	(1,400)
Skagen Designs arbitration settlement	0	5,968
Misfit working capital settlement	788	0
Proceeds from the sale of property, plant and equipment	1,955	0
Business acquisitions-net of cash acquired	0	(4,820)
Net investment hedge settlement	752	0
Net cash used in investing activities	(35,032)	(32,716)
Financing Activities:
Acquisition of common stock	(6,418)	(218,659)
Distribution of noncontrolling interest earnings	(4,544)	(5,056)
Excess tax benefits from stock-based compensation	5	170
Debt borrowings	424,800	1,482,165
Debt payments	(498,848)	(1,419,161)
Proceeds from exercise of stock options	57	582
Payment for shares of Fossil, S.L.	(8,657)	0
Net cash used in financing activities	(93,605)	(159,959)
Effect of exchange rate changes on cash and cash equivalents	(749)	3,777
Net decrease in cash and cash equivalents	(57,439)	(26,397)
Cash and cash equivalents:
Beginning of period	289,275	276,261
End of period	$ 231,836	$ 249,864

FINANCIAL STATEMENT POLICIES

FINANCIAL STATEMENT POLICIES	6 Months Ended
	Jul. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
FINANCIAL STATEMENT POLICIES	FINANCIAL STATEMENT POLICIES Basis of Presentation. The condensed consolidated financial statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its wholly and majority-owned subsidiaries (the “Company”). The condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s financial position as of July 2, 2016 , and the results of operations for the thirteen-week periods ended July 2, 2016 (“ Second Quarter”) and July 4, 2015 (“Prior Year Quarter”), respectively, and the twenty-six week periods ended July 2, 2016 (“Year To Date Period”) and July 4, 2015 (“Prior Year YTD Period”). All adjustments are of a normal, recurring nature. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K filed by the Company pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the fiscal year ended January 2, 2016 (the “ 2015 Form 10-K”). Operating results for the Second Quarter and Year To Date Period are not necessarily indicative of the results to be achieved for the full fiscal year. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company has not made any changes in its significant accounting policies from those disclosed in the 2015 Form 10-K. Business. The Company is a global design, marketing and distribution company that specializes in consumer fashion accessories. Its principal offerings include an extensive line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts and sunglasses. In the watch and jewelry product categories, the Company has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed. The Company's products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company does not maintain a physical presence. The Company's products are offered at varying price points to meet the needs of its customers, whether they are value-conscious or luxury oriented. Based on its extensive range of accessory products, brands, distribution channels and price points, the Company is able to target style-conscious consumers across a wide age spectrum on a global basis. Hedging Instruments. The Company is exposed to certain market risks relating to foreign exchange rates and interest rates. The Company actively monitors and attempts to manage these exposures using derivative instruments including foreign exchange forward contracts (" forward contracts ") and interest rate swaps. The Company’s foreign subsidiaries periodically enter into forward contracts to hedge the future payment of intercompany inventory transactions denominated in U.S. dollars. Additionally, during the first quarter of fiscal year 2016, the Company entered into forward contracts to manage fluctuations in Japanese yen exchange rates that will be used to settle future third-party inventory component purchases by a U.S. dollar functional currency subsidiary. If the Company was to settle its euro, British pound, Canadian dollar, Japanese yen, Mexican peso, Australian dollar and U.S dollar forward contracts as of July 2, 2016 , the result would have been a net gain of approximately $3.8 million , net of taxes. This unrealized gain is recognized in other comprehensive income (loss), net of taxes on the Company's consolidated statements of income and comprehensive income. Additionally, to the extent that any of these contracts are not considered to be perfectly effective in offsetting the change in the value of the cash flows being hedged, any changes in fair value relating to the ineffective portion of these contracts would be recognized in other income (expense)-net on the Company's consolidated statements of income and comprehensive income. Also, the Company has entered into interest rate swap agreements to effectively convert portions of its variable rate debt obligations to fixed rates. Changes in the fair value of the interest rate swaps are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity, and are recognized in interest expense in the period in which the payment is settled. To reduce exposure to changes in currency exchange rates adversely affecting the Company’s investment in foreign currency-denominated subsidiaries, the Company periodically enters into forward contracts designated as net investment hedges. Both realized and unrealized gains and losses from net investment hedges are recognized in the cumulative translation adjustment component of other comprehensive income (loss), and will be reclassified into earnings in the event the Company's underlying investments are liquidated or disposed. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. See “Note 10—Derivatives and Risk Management” for additional disclosures about the Company’s use of derivatives. Operating expenses. Operating expenses include selling, general and administrative expenses (“SG&A”) and restructuring charges. SG&A expenses include selling and distribution expenses primarily consisting of sales and distribution labor costs, sales distribution center and warehouse facility costs, depreciation expense related to sales distribution and warehouse facilities, the four-wall operating costs of the Company’s retail stores, point-of-sale expenses, advertising expenses and art, design and product development labor costs. SG&A also includes general and administrative expenses primarily consisting of administrative support labor and “back office” or support costs such as treasury, legal, information services, accounting, internal audit, human resources, executive management costs and costs associated with stock-based compensation. Restructuring charges include costs to reorganize, refine and optimize the Company’s infrastructure and store closures. Earnings Per Share (“EPS”). Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method. The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Numerator: Net income attributable to Fossil Group, Inc. $ 6,021 $ 54,648 $ 11,814 $ 92,718 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 48,119 48,634 48,125 49,464 Basic EPS $ 0.13 $ 1.12 $ 0.25 $ 1.87 Diluted EPS computation: Basic weighted average common shares outstanding 48,119 48,634 48,125 49,464 Effect of stock options, stock appreciation rights, restricted stock units and performance restricted stock units 88 110 104 151 Diluted weighted average common shares outstanding 48,207 48,744 48,229 49,615 Diluted EPS $ 0.12 $ 1.12 $ 0.24 $ 1.87 Approximately 1.9 million, 0.6 million , 1.7 million and 0.4 million weighted shares issuable under stock-based awards were not included in the diluted EPS calculation at the end of the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period, respectively, because they were antidilutive. Approximately 1.1 million weighted performance shares were not included in the diluted EPS calculation at the end of the Second Quarter and Year to Date Period as the performance targets were not met. Recently Issued Accounting Standards. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for annual periods, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-09. In March 2016, the FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20)- Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 is effective for annual periods, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-04. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification® (“ASU 2016-02”), which supersedes the existing guidance for lease accounting, Leases (Topic 840) . ASU 2016-02 requires lessees to recognize leases on their balance sheets, and modifies accounting, presentation and disclosure for both lessors and lessees. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. ASU 2016-02 is effective for annual periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-02. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for annual periods beginning after December 15, 2016, with early adoption permitted. This standard will not have a material impact on the Company’s consolidated results of operations or financial position. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), to provide guidance on management’s responsibility to perform interim and annual assessments of an entity’s ability to continue as a going concern and to provide related disclosure. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. This standard will not have a material impact on the Company’s consolidated results of operations or financial position. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), deferring the effective date of ASU 2014-09. The new revenue standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and allows either a full retrospective adoption to all periods presented or a modified retrospective adoption approach with the cumulative effect of initial application of the revised guidance recognized at the date of initial application. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. Early adoption is permitted for periods beginning after December 15, 2016. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). ASU 2016-12 clarifies three aspects of Topic 606, including the objective of the collectability criterion, the measurement date for noncash consideration and the requirements for a completed contract. ASU 2016-12 also includes a practical expedient for contract modifications. Additionally, the amendments allow an entity to exclude all sales taxes collected from customers from the transaction price. The Company is evaluating the effect of adopting ASU 2014-09 and related ASUs. Recently Adopted Accounting Standards. In accordance with U.S. GAAP, the following provisions, which had no material impact on the Company’s financial position, results of operations or cash flows, were adopted effective the first quarter of fiscal year 2016: • ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis • ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

ACQUISITIONS AND GOODWILL

ACQUISITIONS AND GOODWILL	6 Months Ended
	Jul. 02, 2016
Business Combinations [Abstract]
ACQUISITIONS AND GOODWILL	ACQUISITIONS AND GOODWILL Fossil Spain Acquisition. On August 10, 2012, the Company’s joint venture company, Fossil, S.L. (“Fossil Spain”), entered into a Framework Agreement (the “Framework Agreement”) with several related and unrelated parties, including General De Relojeria, S.A. (“General De Relojeria”), the Company’s joint venture partner. Pursuant to the Framework Agreement, Fossil Spain was granted the right to acquire the outstanding 50% of its shares owned by General De Relojeria upon the expiration of the joint venture agreement on December 31, 2015. The Company completed the acquisition of these shares in the Second Quarter, at which time Fossil Spain became a wholly-owned subsidiary of the Company. The fixed and previously remaining variable components of the purchase price were settled in the amounts of 4.3 million euros (approximately $4.8 million ) and 3.5 million euros (approximately $3.9 million ), respectively. As of January 1, 2013, pursuant to the Framework Agreement, the Company assumed control over the board of directors and the day-to-day management of Fossil Spain, and began consolidating Fossil Spain, instead of treating it as an equity method investment. Misfit, Inc. Acquisition. On December 22, 2015, the Company acquired Misfit, Inc. ("Misfit"), an innovator and distributor of wearable technology and stylish connected devices. Misfit was a U.S.-based, privately held company. The primary purpose of the acquisition was to acquire a scalable technology platform that can be integrated across the Company's multi-brand portfolio, a native wearable technology brand and a pipeline of innovative products. Misfit’s position in the wearable technology space combined with their software and hardware engineering teams enables the Company to expand its addressable market with new distribution channels, products, brands and enterprise partnerships. The purchase price was $215.4 million in cash, net of cash acquired and subject to working capital adjustments, and $1.7 million in replacement awards attributable to precombination service. At closing, $12.5 million of the cash payment was placed into an escrow fund for the Company for working capital adjustments and indemnification obligations of the seller incurred within 12 months from the closing date. The Company received $0.8 million from the escrow during the Second Quarter as a working capital settlement and has recorded a receivable for additional claims incurred. To fund the cash purchase price, the Company utilized cash on hand and approximately $60 million of availability under its $1.05 billion revolving line of credit. The results of Misfit's operations have been included in the Company’s consolidated financial statements since December 22, 2015. Assets acquired and liabilities assumed in the transaction were recorded at their acquisition date fair values, while transaction costs of $8.4 million associated with the acquisition were expensed as incurred during the fourth quarter of fiscal year 2015. Because the total purchase price exceeded the fair values of the tangible and intangible assets acquired, goodwill was recorded equal to the difference. The element of goodwill that is not separable into identifiable intangible assets represents expected synergies. The following table summarizes the allocation of the purchase price to the preliminary estimated fair value of the assets acquired and the liabilities assumed as of December 22, 2015, the effective date of the acquisition (in thousands): Cash paid, net of cash acquired $ 215,370 Replacement awards attributable to precombination service 1,709 Working capital and other adjustments (3,788 ) Total transaction consideration $ 213,291 Inventories $ 7,011 Prepaid expenses and other current assets 25 Property, plant and equipment and other long-term assets 1,190 Goodwill 168,021 Amortizing Intangibles: Useful Lives Trade name 6 yrs. 15,700 Customer lists 5 yrs. 10,800 Developed technology 7 yrs. 36,100 Noncompete agreements 3 yrs. 700 Current liabilities (17,019 ) Long-term liabilities (9,237 ) Total net assets acquired $ 213,291 The amounts shown above may change in the near term as management continues to assess the fair value of acquired assets and liabilities. A change in this valuation may also impact the income tax related accounts and goodwill. The goodwill recognized from the acquisition has an indefinite useful life and will be included in the Company’s annual impairment testing. Goodwill. The changes in the carrying amount of goodwill were as follows (in thousands): Americas Europe Asia Total Balance at January 2, 2016 $ 283,598 $ 63,981 $ 11,815 $ 359,394 Segment allocation and acquisition adjustments (1) (78,197 ) 49,760 32,053 3,616 Currency (100 ) 1,223 25 1,148 Balance at July 2, 2016 $ 205,301 $ 114,964 $ 43,893 $ 364,158 __________________________________________________________________________________ (1) All goodwill resulting from the Misfit acquisition was recorded in the Americas segment as of January 2, 2016, on a preliminary basis. This line item includes an allocation of the goodwill across reporting segments and also purchase accounting adjustments made during the Year To Date Period to accounts receivable, inventories, current and long-term liabilities and working capital and other adjustments made to the transaction consideration.

INVENTORIES

INVENTORIES	6 Months Ended
	Jul. 02, 2016
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following (in thousands): July 2, 2016 January 2, 2016 Components and parts $ 67,408 $ 49,539 Work-in-process 10,762 12,213 Finished goods 583,578 563,592 Inventories $ 661,748 $ 625,344

WARRANTY LIABILITIES

WARRANTY LIABILITIES	6 Months Ended
	Jul. 02, 2016
Product Warranties Disclosures [Abstract]
WARRANTY LIABILITIES	WARRANTY LIABILITIES The Company’s warranty liability is recorded in accrued expenses-other in the Company’s condensed consolidated balance sheets. Warranty liability activity consisted of the following (in thousands): For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Beginning balance $ 13,669 $ 13,500 Settlements in cash or kind (4,795 ) (4,019 ) Warranties issued and adjustments to preexisting warranties (1) 4,861 4,038 Liabilities assumed in acquisition — 44 Ending balance $ 13,735 $ 13,563 _______________________________________________ (1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jul. 02, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s income tax expense and related effective rates were as follows (in thousands, except percentage data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Income tax expense $ 3,499 $ 22,894 $ 6,778 $ 41,417 Income tax rate 30.2 % 28.7 % 30.5 % 29.8 % The higher effective tax rates in the Second Quarter and the Year To Date Period, as compared to the Prior Year Quarter and Prior Year YTD Period, respectively, was primarily attributable to the recognition of income tax benefits due to the settlement of audits in the Prior Year Quarter. The impact of this discrete benefit is partially offset by a lower projected effective tax rate for 2016 as compared to 2015, largely due to the projected shift in earnings mix towards foreign income which is taxed at lower statutory rates. As of July 2, 2016 , the total amount of unrecognized tax benefits, excluding interest and penalties, was $22.6 million , of which $19.4 million would favorably impact the effective tax rate in future periods, if recognized. The Company is subject to examinations in various state and foreign jurisdictions for its 2009-2015 tax years, none of which the Company believes are significant, individually or in the aggregate. Tax audit outcomes and timing of tax audit settlements are subject to significant uncertainty. The Company has classified uncertain tax positions as long-term income taxes payable, unless such amounts are expected to be paid within twelve months of the condensed consolidated balance sheet date. As of July 2, 2016 , the Company had recorded $0.9 million of unrecognized tax benefits, excluding interest and penalties, for positions that are expected to be settled within the next twelve months. Consistent with its past practice, the Company recognizes interest and/or penalties related to income tax overpayments and income tax underpayments in income tax expense and income taxes receivable/payable. At July 2, 2016 , the total amount of accrued income tax-related interest and penalties included in the condensed consolidated balance sheet was $2.6 million and $1.8 million , respectively. For the Second Quarter and Year To Date Period, the Company accrued income tax-related interest expense of $0.2 million and $0.4 million , respectively.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jul. 02, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Common Stock Repurchase Programs. Purchases of the Company’s common stock are made from time to time pursuant to its repurchase programs, subject to market conditions and at prevailing market prices, through the open market. Repurchased shares of common stock are recorded at cost and become authorized but unissued shares which may be issued in the future for general corporate or other purposes. The Company may terminate or limit its stock repurchase program at any time. In the event the repurchased shares are canceled, the Company accounts for retirements by allocating the repurchase price to common stock, additional paid-in capital and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances. The repurchase programs are conducted pursuant to Rule 10b-18 of the Exchange Act. During the Year to Date period, the Company effectively retired 0.1 million shares of common stock repurchased under its repurchase programs. The effective retirement of repurchased common stock decreased common stock by $1,100 , additional paid-in capital by $0.2 million , retained earnings by $5.0 million and treasury stock by $5.2 million . At January 2, 2016 and July 2, 2016 , all treasury stock had been effectively retired. As of July 2, 2016 , the Company had $824.2 million of repurchase authorizations remaining under its combined repurchase programs. The following tables reflect the Company’s common stock repurchase activity for the periods indicated (in millions): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Fiscal Year Authorized Dollar Value Authorized Termination Date Number of Shares Repurchased Dollar Value Repurchased Number of Shares Repurchased Dollar Value Repurchased 2014 $ 1,000.0 December 2018 — $ 0.8 1.3 $ 102.5 2012 $ 1,000.0 December 2016 (1) — $ — — $ — 2010 $ 30.0 None — $ — — $ — For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Fiscal Year Authorized Dollar Value Authorized Termination Date Number of Shares Repurchased Dollar Value Repurchased Number of Shares Repurchased Dollar Value Repurchased 2014 $ 1,000.0 December 2018 0.1 $ 5.2 2.2 $ 188.2 2012 $ 1,000.0 December 2016 (1) — $ — 0.3 $ 28.8 2010 $ 30.0 None — $ — — $ — __________________________________________________________________________________ (1) In the first quarter of fiscal year 2015, the Company completed this repurchase plan. Controlling and Noncontrolling Interest. The following tables summarize the changes in equity attributable to controlling and noncontrolling interest (in thousands): Fossil Group, Inc. Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity Balance at January 2, 2016 $ 921,388 $ 11,155 $ 932,543 Net income 11,814 3,654 15,468 Currency translation adjustment 7,721 — 7,721 Cash flow hedges - net change (6,101 ) — (6,101 ) Pension plan activity 1,714 — 1,714 Common stock issued upon exercise of stock options 57 — 57 Tax expense derived from stock-based compensation (1,389 ) — (1,389 ) Distribution of noncontrolling interest earnings — (4,544 ) (4,544 ) Acquisition of common stock (6,418 ) — (6,418 ) Stock-based compensation expense 16,463 — 16,463 Balance at July 2, 2016 $ 945,249 $ 10,265 $ 955,514 Fossil Group, Inc. Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity Balance at January 3, 2015 $ 977,860 $ 5,941 $ 983,801 Net income 92,718 4,740 97,458 Currency translation adjustment (27,947 ) — (27,947 ) Cash flow hedges - net change (185 ) — (185 ) Common stock issued upon exercise of stock options 582 — 582 Tax expense derived from stock-based compensation (699 ) — (699 ) Distribution of noncontrolling interest earnings — (5,056 ) (5,056 ) Business acquisition — 5,831 5,831 Acquisition of common stock (218,659 ) — (218,659 ) Stock-based compensation expense 9,276 — 9,276 Balance at July 4, 2015 $ 832,946 $ 11,456 $ 844,402

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Stock-Based Compensation Plans. The following table summarizes stock options and stock appreciation rights activity during the Second Quarter: Stock Options and Stock Appreciation Rights Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in Thousands) (in Years) (in Thousands) Outstanding at April 2, 2016 2,214 $ 51.82 6.9 $ 10,828 Granted — Exercised — Forfeited or expired (8 ) 117.13 Outstanding at July 2, 2016 2,206 51.59 6.7 791 Exercisable at July 2, 2016 538 $ 84.14 4.4 $ 791 The aggregate intrinsic value shown in the table above is before income taxes and is based on (i) the exercise price for outstanding and exercisable options/rights at July 2, 2016 and (ii) the fair market value of the Company’s common stock on the exercise date for options/rights that were exercised during the Second Quarter . Stock Options and Stock Appreciation Rights Outstanding and Exercisable. The following tables summarize information with respect to stock options and stock appreciation rights outstanding and exercisable at July 2, 2016 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Number of Shares Weighted- (in Thousands) (in Years) (in Thousands) $13.65 - $29.78 41 $ 14.40 2.7 41 $ 14.40 $30.71 - $47.99 91 36.29 2.5 91 36.29 $55.04 - $83.83 92 80.80 4.8 92 80.80 $95.91 - $131.46 144 127.98 5.7 144 127.98 Total 368 $ 80.95 4.3 368 $ 80.95 Stock Appreciation Rights Outstanding Stock Appreciation Rights Exercisable Range of Number of Weighted- Weighted- Number of Weighted- (in Thousands) (in Years) (in Thousands) $13.65 - $29.78 26 $ 21.97 4.2 13 $ 13.65 $30.71 - $47.99 1,560 38.27 7.5 9 38.40 $55.04 - $83.83 143 79.05 6.1 62 80.44 $95.91 - $131.46 109 114.42 5.0 86 115.32 Total 1,838 $ 45.72 7.2 170 $ 91.02 Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units. The following table summarizes restricted stock, restricted stock unit and performance restricted stock unit activity during the Second Quarter: Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Per Share (in Thousands) Nonvested at April 2, 2016 1,063 $ 47.98 Granted 494 27.60 Vested (21 ) 82.08 Forfeited (12 ) 41.27 Nonvested at July 2, 2016 1,524 $ 40.95 The total fair value of restricted stock and restricted stock units vested during the Second Quarter was approximately $0.6 million . Vesting of performance restricted stock units is based on achievement of sales growth and operating margin targets in relation to the performance of a certain identified peer group, particular sales growth in relation to a defined sales plan and achievement of succession plans for key talent.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jul. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables illustrate changes in the balances of each component of accumulated other comprehensive income (loss), net of taxes (in thousands): For the 13 Weeks Ended July 2, 2016 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (64,486 ) $ (1,554 ) $ (1,457 ) $ (4,506 ) $ (72,003 ) Other comprehensive income (loss) before reclassifications (9,396 ) 8,738 (711 ) — (1,369 ) Tax (expense) benefit — (3,576 ) 259 — (3,317 ) Amounts reclassed from accumulated other comprehensive income 104 928 (450 ) — 582 Tax (expense) benefit — (263 ) 164 — (99 ) Total other comprehensive income (loss) (9,500 ) 4,497 (166 ) — (5,169 ) Ending balance $ (73,986 ) $ 2,943 $ (1,623 ) $ (4,506 ) $ (77,172 ) For the 13 Weeks Ended July 4, 2015 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (60,747 ) $ 19,315 $ (4,776 ) $ (3,647 ) $ (49,855 ) Other comprehensive income (loss) before reclassifications 5,559 2,701 10,460 — 18,720 Tax (expense) benefit — 253 (3,812 ) — (3,559 ) Amounts reclassed from accumulated other comprehensive income — 10,555 4,604 — 15,159 Tax (expense) benefit — (3,634 ) (1,677 ) — (5,311 ) Total other comprehensive income (loss) 5,559 (3,967 ) 3,721 — 5,313 Ending balance $ (55,188 ) $ 15,348 $ (1,055 ) $ (3,647 ) $ (44,542 ) For the 26 Weeks Ended July 2, 2016 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (81,707 ) $ 8,114 $ (693 ) $ (6,220 ) $ (80,506 ) Other comprehensive income (loss) before reclassifications 7,825 (1,259 ) (2,381 ) 2,010 6,195 Tax (expense) benefit — 1,039 868 (296 ) 1,611 Amounts reclassed from accumulated other comprehensive income 104 7,267 (918 ) — 6,453 Tax (expense) benefit — (2,316 ) 335 — (1,981 ) Total other comprehensive income (loss) 7,721 (5,171 ) (930 ) 1,714 3,334 Ending balance $ (73,986 ) $ 2,943 $ (1,623 ) $ (4,506 ) $ (77,172 ) For the 26 Weeks Ended July 4, 2015 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swap Pension Plan Total Beginning balance $ (27,241 ) $ 14,980 $ (502 ) $ (3,647 ) $ (16,410 ) Other comprehensive income (loss) before reclassifications (27,947 ) 21,462 3,054 — (3,431 ) Tax (expense) benefit — (5,965 ) (1,113 ) — (7,078 ) Amounts reclassed from accumulated other comprehensive income — 22,993 3,923 — 26,916 Tax (expense) benefit — (7,864 ) (1,429 ) — (9,293 ) Total other comprehensive income (loss) (27,947 ) 368 (553 ) — (28,132 ) Ending balance $ (55,188 ) $ 15,348 $ (1,055 ) $ (3,647 ) $ (44,542 ) See “Note 10—Derivatives and Risk Management” for additional disclosures about the Company’s use of derivatives.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company reports segment information based on the “management approach”. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. Each reportable operating segment provides similar products and services. The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are based on the location of the selling entity. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Global strategic initiatives such as brand building and omni channel activities and general corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes. Summary information by operating segment was as follows (in thousands): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Net Sales Operating Income Net Sales Operating Income Americas $ 345,187 $ 52,300 $ 386,088 $ 86,033 Europe 215,936 31,669 227,923 41,814 Asia 124,245 18,936 125,964 20,555 Corporate (87,455 ) (77,968 ) Consolidated $ 685,368 $ 15,450 $ 739,975 $ 70,434 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Net Sales Operating Income Net Sales Operating Income Americas $ 680,997 $ 111,896 $ 752,684 $ 162,533 Europe 425,937 60,180 462,179 79,152 Asia 238,282 36,865 250,197 41,051 Corporate (179,087 ) (156,147 ) Consolidated $ 1,345,216 $ 29,854 $ 1,465,060 $ 126,589 The following tables reflect net sales for each class of similar products in the periods presented (in thousands, except percentage data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 517,602 75.5 % $ 575,804 77.8 % Leathers 93,152 13.6 89,380 12.1 Jewelry 56,752 8.3 55,780 7.5 Other 17,862 2.6 19,011 2.6 Total $ 685,368 100.0 % $ 739,975 100.0 % For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 1,014,085 75.4 % $ 1,127,661 77.0 % Leathers 185,657 13.8 182,306 12.4 Jewelry 111,472 8.3 118,767 8.1 Other 34,002 2.5 36,326 2.5 Total $ 1,345,216 100.0 % $ 1,465,060 100.0 %

DERIVATIVES AND RISK MANAGEMENT

DERIVATIVES AND RISK MANAGEMENT	6 Months Ended
	Jul. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES AND RISK MANAGEMENT	DERIVATIVES AND RISK MANAGEMENT Cash Flow Hedges. The primary risks managed by using derivative instruments are the fluctuations in global currencies that will ultimately be used by non-U.S. dollar functional currency subsidiaries to settle future payments of intercompany inventory transactions denominated in U.S. dollars. Specifically, the Company projects future intercompany purchases by its non-U.S. dollar functional currency subsidiaries generally over a period of up to 24 months . The Company enters into forward contracts , generally for up to 85% of the forecasted purchases, to manage fluctuations in global currencies that will ultimately be used to settle such U.S. dollar denominated inventory purchases. Additionally, during the first quarter of fiscal year 2016, the Company entered into forward contracts to manage fluctuations in Japanese yen exchange rates that will be used to settle future third-party inventory component purchases by a U.S. dollar functional currency subsidiary. Forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date and exchange rate. These forward contracts are designated as single cash flow hedges. Fluctuations in exchange rates will either increase or decrease the Company’s U.S. dollar equivalent cash flows from these inventory transactions, which will affect the Company’s U.S. dollar earnings. Gains or losses on the forward contracts are expected to offset these fluctuations to the extent the cash flows are hedged by the forward contracts . These forward contracts meet the criteria for hedge accounting, which requires that they represent foreign currency-denominated forecasted transactions in which (i) the operating unit that has the foreign currency exposure is a party to the hedging instrument and (ii) the hedged transaction is denominated in a currency other than the hedging unit’s functional currency. At the inception of each forward contract designated as a cash flow hedge, the hedging relationship is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk. The Company assesses hedge effectiveness under the critical terms matched method at inception and at least quarterly throughout the life of the hedging relationship. If the critical terms (i.e., amounts, currencies and settlement dates) of the forward contract match the terms of the forecasted transaction, the Company concludes that the hedge is effective. For a derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, the Company’s hedges resulted in no ineffectiveness in the condensed consolidated statements of income and comprehensive income, and there were no components excluded from the assessment of hedge effectiveness for the Second Quarter, Prior Year Quarter, Year To Date Period or Prior Year YTD Period. All derivative instruments are recognized as either assets or liabilities at fair value in the condensed consolidated balance sheets. Derivatives designated as cash flow hedges are recorded at fair value at each balance sheet date and the change in fair value is recorded to accumulated other comprehensive income (loss) within the equity section of the Company’s condensed consolidated balance sheet until such derivative’s gains or losses become realized or the cash flow hedge relationship is terminated. If the cash flow hedge relationship is terminated, the derivative’s gains or losses that are recorded in accumulated other comprehensive income (loss) will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, the derivative’s gains or losses are immediately recognized in earnings. There were no gains or losses reclassified into earnings as a result of the discontinuance of cash flow hedges in the Second Quarter, Prior Year Quarter, Year To Date Period or Prior Year YTD Period. Hedge accounting is discontinued if it is determined that the derivative is not highly effective. The Company records all forward contract hedge assets and liabilities on a gross basis as they do not meet the balance sheet netting criteria because the Company does not have master netting agreements established with the derivative counterparties that would allow for net settlement. As of July 2, 2016 , the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge the future payments of inventory transactions (in millions): Functional Currency Contract Currency Type Amount Type Amount Euro 255.1 U.S. dollar 288.3 British pound 52.9 U.S. dollar 79.0 Canadian dollar 80.5 U.S. dollar 61.0 Japanese yen 4,077.9 U.S. dollar 35.7 Mexican peso 335.4 U.S. dollar 18.3 Australian dollar 20.0 U.S. dollar 14.6 U.S. dollar 28.0 Japanese yen 3,013.0 The Company is also exposed to interest rate risk related to its outstanding debt. To manage the interest rate risk related to its $231.3 million U.S.-based term loan (as amended and restated on March 9, 2015, the "Term Loan”), the Company entered into an interest rate swap agreement on July 26, 2013 with a term of approximately five years . The objective of this hedge is to offset the variability of future payments associated with interest rates on the Term Loan. The interest rate swap agreement hedges the 1-month London Interbank Offer Rate ("LIBOR") based variable rate debt obligations under the Term Loan. Under the terms of the swap, the Company pays a fixed interest rate of 1.288% per annum to the swap counterparty plus the LIBOR rate applicable margin (which varies based upon the Company’s consolidated leverage ratio (the “Ratio”) from 1.25% if the Ratio is less than 1.00 to 1.00 , to 2.00% if the Ratio is greater than or equal to 2.00 to 1.00 ). The notional amount amortizes over the remaining life of the Term Loan to coincide with repayments on the underlying loan. The Company receives interest from the swap counterparty at a variable rate based on 1-month LIBOR. This hedge is designated as a cash flow hedge. Net Investment Hedges. The Company is also exposed to risk that adverse changes in foreign currency exchange rates could impact its net investment in foreign operations. During the first quarter of fiscal year 2016, the Company entered into a forward contract designated as a net investment hedge to reduce exposure to changes in currency exchange rates on 45.0 million euros of its total investment in a wholly-owned, euro-denominated foreign subsidiary. The hedge was settled during the Second Quarter resulting in a net gain of $0.5 million net of taxes that was recognized in the currency translation component of accumulated other comprehensive income (loss). The effective portion of derivatives designated as net investment hedges are recorded at fair value at each balance sheet date and the change in fair value is recorded in the cumulative translation adjustment component of other comprehensive income (loss) in the Company’s condensed consolidated statements of income and comprehensive income. The Company uses the hypothetical derivative method to assess the ineffectiveness of net investment hedges. Should any portion of a net investment hedge become ineffective, the ineffective portion will be reclassified to other income (expense)-net on the Company’s condensed consolidated statements of income and comprehensive income. Gains and losses reported in accumulated other comprehensive income (loss) will not be reclassified into earnings until the Company’s underlying investment is liquidated or dissolved. Non-designated Hedges. The Company also periodically enters into forward contracts to manage exchange rate risks associated with certain intercompany transactions and for which the Company does not elect hedge accounting treatment. As of July 2, 2016 , the Company had non-designated forward contracts of approximately $1.4 million on 21.6 million rand associated with a South African rand-denominated foreign subsidiary. Changes in the fair value of derivatives, not designated as hedging instruments, are recognized in earnings when they occur. The effective portion of gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period are set forth below (in thousands): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Cash flow hedges: Forward contracts $ 5,162 $ 2,954 Interest rate swaps (452 ) 6,648 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 4,710 $ 9,602 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Cash flow hedges: Forward contracts $ (220 ) $ 15,497 Interest rate swaps (1,513 ) 1,941 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ (1,733 ) $ 17,438 The following table illustrates the effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period (in thousands): Derivative Instruments Condensed Consolidated Statements of Income and Comprehensive Income Location Effect of Derivative Instruments For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ 665 $ 6,921 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 74 $ (9 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from other comprehensive income (loss) $ (286 ) $ (404 ) Interest rate swap designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ — $ 3,331 Derivative Instruments Condensed Consolidated Statements of Income and Comprehensive Income Location Effect of Derivative Instruments For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ 4,951 $ 15,129 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ (157 ) $ 80 Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from other comprehensive income (loss) $ (583 ) $ (837 ) Interest rate swap designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ — $ 3,331 The following table discloses the fair value amounts for the Company’s derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands): Asset Derivatives Liability Derivatives July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 Derivative Instruments Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 10,709 Prepaid expenses and other current assets $ 13,184 Accrued expenses- other $ 6,109 Accrued expenses- other $ 477 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets 167 Accrued expenses- other 49 Accrued expenses- other 71 Interest rate swap designated as a cash flow hedging instrument Prepaid expenses and other current assets — Prepaid expenses and other current assets — Accrued expenses- other 1,568 Accrued expenses- other 1,273 Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 2,845 Intangible and other assets-net 2,785 Other long-term liabilities 1,936 Other long-term liabilities 250 Interest rate swap designated as a cash flow hedging instrument Intangible and other assets-net — Intangible and other assets-net 311 Other long-term liabilities 985 Other long-term liabilities 128 Total $ 13,554 $ 16,447 $ 10,647 $ 2,199 At the end of the Second Quarter, the Company had forward contracts designated as cash flow hedges with maturities extending through June 2018. As of July 2, 2016 , an estimated net gain of $3.3 million is expected to be reclassified into earnings within the next twelve months at prevailing foreign currency exchange rates. See “Note 1—Financial Statement Policies” for additional disclosures on foreign currency hedging instruments.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 02, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting Standards Codification ("ASC") 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. • Level 3 — Unobservable inputs based on the Company’s assumptions. ASC 820 requires the use of observable market data if such data is available without undue cost and effort. The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of July 2, 2016 (in thousands): Fair Value at July 2, 2016 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 13,554 $ — $ 13,554 Deferred compensation plan assets: Investment in publicly traded mutual funds 2,398 — — 2,398 Total $ 2,398 $ 13,554 $ — $ 15,952 Liabilities: Forward contracts — 8,094 — 8,094 Interest rate swap — 2,553 — 2,553 Total $ — $ 10,647 $ — $ 10,647 The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 2, 2016 (in thousands): Fair Value at January 2, 2016 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 16,136 $ — $ 16,136 Deferred compensation plan assets: Investment in publicly traded mutual funds 2,406 — — 2,406 Interest rate swap — 311 — 311 Total $ 2,406 $ 16,447 $ — $ 18,853 Liabilities: Contingent consideration $ — $ — $ 3,643 $ 3,643 Forward contracts — 798 — 798 Interest rate swap — 1,401 — 1,401 Total $ — $ 2,199 $ 3,643 $ 5,842 The fair values of the Company’s deferred compensation plan assets are based on quoted prices. The deferred compensation plan assets are recorded in intangible and other assets-net in the Company’s condensed consolidated balance sheets. The fair values of the Company’s forward contracts are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. The fair values of the interest rate swap assets and liabilities are determined using valuation models based on market observable inputs, including forward curves, mid-market price and volatility levels. See “Note 10—Derivatives and Risk Management” for additional disclosures about the interest rate swaps and forward contracts . The Company has evaluated its short-term and long-term debt as of July 2, 2016 and January 2, 2016 and believes, based on the interest rates, related terms and maturities, that the fair values of such instruments approximated their carrying amounts. As of July 2, 2016 and January 2, 2016 , the carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated their fair values due to the short-term maturities of these accounts.

INTANGIBLE AND OTHER ASSETS

INTANGIBLE AND OTHER ASSETS	6 Months Ended
	Jul. 02, 2016
INTANGIBLE AND OTHER ASSETS
INTANGIBLE AND OTHER ASSETS	INTANGIBLE AND OTHER ASSETS The following table summarizes intangible and other assets (in thousands): July 2, 2016 January 2, 2016 Useful Gross Accumulated Gross Accumulated Lives Amount Amortization Amount Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 4,310 $ 3,321 $ 4,175 $ 3,195 Customer lists 5-10 yrs. 54,064 24,166 53,825 21,001 Patents 3-20 yrs. 2,302 2,082 2,273 2,064 Noncompete agreement 3-6 yrs. 2,524 1,409 2,515 1,134 Developed technology 7 yrs. 36,100 2,579 36,100 — Trade name 6 yrs. 15,700 1,308 15,700 — Other 7-20 yrs. 259 214 256 206 Total intangibles-subject to amortization 115,259 35,079 114,844 27,600 Intangibles-not subject to amortization: Trade names 74,503 74,493 Other assets: Key money deposits 28,612 20,349 29,357 19,805 Other deposits 22,303 21,684 Deferred compensation plan assets 2,398 2,406 Deferred tax asset-net 22,131 18,602 Restricted cash 525 512 Shop-in-shop 9,494 7,807 9,985 8,262 Interest rate swap — 311 Forward contracts 2,845 2,785 Investments 2,397 2,396 Other 4,784 5,519 Total other assets 95,489 28,156 93,557 28,067 Total intangible and other assets $ 285,251 $ 63,235 $ 282,894 $ 55,667 Total intangible and other assets-net $ 222,016 $ 227,227 Key money is the amount of funds paid to a landlord or tenant to acquire the rights of tenancy under a commercial property lease for a certain property. Key money represents the “right to lease” with an automatic right of renewal. This right can be subsequently sold by the Company or can be recovered should the landlord refuse to allow the automatic right of renewal to be exercised. Key money is amortized over the initial lease term, which ranges from approximately four to 18 years . Amortization expense for intangible assets was approximately $3.8 million and $1.4 million for the Second Quarter and Prior Year Quarter, respectively, and $7.5 million and $2.5 million for the Year To Date Period and Prior Year YTD Period, respectively. Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization Expense 2016 (remaining) $ 7,487 2017 $ 14,721 2018 $ 14,366 2019 $ 14,037 2020 $ 13,528 2021 $ 9,703

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jul. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation. The Company is occasionally subject to litigation or other legal proceedings in the normal course of its business. The Company does not believe that the outcome of any currently pending legal matters, individually or collectively, will have a material effect on the business or financial condition of the Company.

DEBT ACTIVITY

DEBT ACTIVITY	6 Months Ended
	Jul. 02, 2016
Debt Disclosure [Abstract]
DEBT ACTIVITY	DEBT ACTIVITY The Company made principal payments of $4.7 million and $9.4 million under its Term Loan during the Second Quarter and Year To Date Period, respectively. The Company also made net payments of $83.6 million and $64.0 million under its U.S. revolving line of credit (the "Revolving Credit Facility") during the Second Quarter and Year To Date Period, respectively. Borrowings were primarily used to fund capital expenditures, normal operating expenses and stock repurchases and were more than offset by payments on debt. Amounts available under the Revolving Credit Facility are reduced by any amounts outstanding under standby letters of credit. As of July 2, 2016 , the Company had available borrowing capacity of approximately $133.0 million under the Revolving Credit Facility, which was favorably impacted by a $215.5 million international cash balance. The Company incurred approximately $1.6 million and $3.2 million of interest expense related to the Term Loan during the Second Quarter and Year To Date Period, respectively, including the impact of the related interest rate swap. The Company incurred approximately $4.2 million and $7.9 million of interest expense related to the Revolving Credit Facility during the Second Quarter and Year To Date Period, respectively.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jul. 02, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT Credit Agreement. On August 8, 2016, the Company entered into a First Amendment to the Amended and Restated Credit Agreement (the "First Amendment"). The First Amendment adds two new levels to the applicable margin pricing grid used to calculate the interest rate that is applicable to base rate loans and LIBOR rate loans under the Revolving Credit Facility and increases the applicable margin at each pricing level for LIBOR rate loans and base rate loans by 25 basis points . Additionally, the First Amendment provides for the net cash proceeds from certain debt issuances by the Company in excess of $25.0 million to be applied, first, to prepay the Term Loan and, for the excess, if any, to prepay the Revolving Credit Facility with a corresponding reduction in the revolving credit commitment by the amount of such excess proceeds. The First Amendment also changes the consolidated total leverage ratio that the Company must comply with for fiscal quarters ending on or after June 30, 2016 from 2.50:1.00 to 3.25:1.00 . In connection with the First Amendment, the Company and certain of its material domestic subsidiaries entered into a Collateral Agreement in favor of Wells Fargo Bank, National Association, as administrative agent, pursuant to which the Company and such subsidiaries granted liens on all or substantially all of their assets in order to secure the Company’s obligations under the Revolving Credit Facility and the other loan documents (the “Obligations”). Additionally, certain of the Company’s domestic subsidiaries entered into a guaranty agreement in favor of Wells Fargo Bank, National Association, as administrative agent, pursuant to which such subsidiaries guarantee the payment and performance of the Obligations.

FINANCIAL STATEMENT POLICIES (P

FINANCIAL STATEMENT POLICIES (Policies)	6 Months Ended
	Jul. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation. The condensed consolidated financial statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its wholly and majority-owned subsidiaries (the “Company”). The condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s financial position as of July 2, 2016 , and the results of operations for the thirteen-week periods ended July 2, 2016 (“ Second Quarter”) and July 4, 2015 (“Prior Year Quarter”), respectively, and the twenty-six week periods ended July 2, 2016 (“Year To Date Period”) and July 4, 2015 (“Prior Year YTD Period”). All adjustments are of a normal, recurring nature. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K filed by the Company pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the fiscal year ended January 2, 2016 (the “ 2015 Form 10-K”). Operating results for the Second Quarter and Year To Date Period are not necessarily indicative of the results to be achieved for the full fiscal year. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company has not made any changes in its significant accounting policies from those disclosed in the 2015 Form 10-K.
Business	Business. The Company is a global design, marketing and distribution company that specializes in consumer fashion accessories. Its principal offerings include an extensive line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts and sunglasses. In the watch and jewelry product categories, the Company has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed. The Company's products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company does not maintain a physical presence. The Company's products are offered at varying price points to meet the needs of its customers, whether they are value-conscious or luxury oriented. Based on its extensive range of accessory products, brands, distribution channels and price points, the Company is able to target style-conscious consumers across a wide age spectrum on a global basis.
Hedging Instruments	Hedging Instruments. The Company is exposed to certain market risks relating to foreign exchange rates and interest rates. The Company actively monitors and attempts to manage these exposures using derivative instruments including foreign exchange forward contracts (" forward contracts ") and interest rate swaps. The Company’s foreign subsidiaries periodically enter into forward contracts to hedge the future payment of intercompany inventory transactions denominated in U.S. dollars. Additionally, during the first quarter of fiscal year 2016, the Company entered into forward contracts to manage fluctuations in Japanese yen exchange rates that will be used to settle future third-party inventory component purchases by a U.S. dollar functional currency subsidiary. If the Company was to settle its euro, British pound, Canadian dollar, Japanese yen, Mexican peso, Australian dollar and U.S dollar forward contracts as of July 2, 2016 , the result would have been a net gain of approximately $3.8 million , net of taxes. This unrealized gain is recognized in other comprehensive income (loss), net of taxes on the Company's consolidated statements of income and comprehensive income. Additionally, to the extent that any of these contracts are not considered to be perfectly effective in offsetting the change in the value of the cash flows being hedged, any changes in fair value relating to the ineffective portion of these contracts would be recognized in other income (expense)-net on the Company's consolidated statements of income and comprehensive income. Also, the Company has entered into interest rate swap agreements to effectively convert portions of its variable rate debt obligations to fixed rates. Changes in the fair value of the interest rate swaps are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity, and are recognized in interest expense in the period in which the payment is settled. To reduce exposure to changes in currency exchange rates adversely affecting the Company’s investment in foreign currency-denominated subsidiaries, the Company periodically enters into forward contracts designated as net investment hedges. Both realized and unrealized gains and losses from net investment hedges are recognized in the cumulative translation adjustment component of other comprehensive income (loss), and will be reclassified into earnings in the event the Company's underlying investments are liquidated or disposed. The Company does not hold or issue derivative financial instruments for trading or speculative purposes.
Operating expenses	Operating expenses. Operating expenses include selling, general and administrative expenses (“SG&A”) and restructuring charges. SG&A expenses include selling and distribution expenses primarily consisting of sales and distribution labor costs, sales distribution center and warehouse facility costs, depreciation expense related to sales distribution and warehouse facilities, the four-wall operating costs of the Company’s retail stores, point-of-sale expenses, advertising expenses and art, design and product development labor costs. SG&A also includes general and administrative expenses primarily consisting of administrative support labor and “back office” or support costs such as treasury, legal, information services, accounting, internal audit, human resources, executive management costs and costs associated with stock-based compensation. Restructuring charges include costs to reorganize, refine and optimize the Company’s infrastructure and store closures.
Earnings Per Share ("EPS")	Earnings Per Share (“EPS”). Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method.
Recently Issued Accounting Standards and Recently Adopted Accounting Standards	Recently Issued Accounting Standards. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for annual periods, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-09. In March 2016, the FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20)- Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 is effective for annual periods, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-04. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification® (“ASU 2016-02”), which supersedes the existing guidance for lease accounting, Leases (Topic 840) . ASU 2016-02 requires lessees to recognize leases on their balance sheets, and modifies accounting, presentation and disclosure for both lessors and lessees. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. ASU 2016-02 is effective for annual periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is still evaluating the effect of adopting ASU 2016-02. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for annual periods beginning after December 15, 2016, with early adoption permitted. This standard will not have a material impact on the Company’s consolidated results of operations or financial position. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), to provide guidance on management’s responsibility to perform interim and annual assessments of an entity’s ability to continue as a going concern and to provide related disclosure. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. This standard will not have a material impact on the Company’s consolidated results of operations or financial position. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), deferring the effective date of ASU 2014-09. The new revenue standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and allows either a full retrospective adoption to all periods presented or a modified retrospective adoption approach with the cumulative effect of initial application of the revised guidance recognized at the date of initial application. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. Early adoption is permitted for periods beginning after December 15, 2016. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). ASU 2016-12 clarifies three aspects of Topic 606, including the objective of the collectability criterion, the measurement date for noncash consideration and the requirements for a completed contract. ASU 2016-12 also includes a practical expedient for contract modifications. Additionally, the amendments allow an entity to exclude all sales taxes collected from customers from the transaction price. The Company is evaluating the effect of adopting ASU 2014-09 and related ASUs. Recently Adopted Accounting Standards. In accordance with U.S. GAAP, the following provisions, which had no material impact on the Company’s financial position, results of operations or cash flows, were adopted effective the first quarter of fiscal year 2016: • ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis • ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

FINANCIAL STATEMENT POLICIES (T

FINANCIAL STATEMENT POLICIES (Tables)	6 Months Ended
	Jul. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Numerators and denominators used in the computations of both basic and diluted EPS	The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Numerator: Net income attributable to Fossil Group, Inc. $ 6,021 $ 54,648 $ 11,814 $ 92,718 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 48,119 48,634 48,125 49,464 Basic EPS $ 0.13 $ 1.12 $ 0.25 $ 1.87 Diluted EPS computation: Basic weighted average common shares outstanding 48,119 48,634 48,125 49,464 Effect of stock options, stock appreciation rights, restricted stock units and performance restricted stock units 88 110 104 151 Diluted weighted average common shares outstanding 48,207 48,744 48,229 49,615 Diluted EPS $ 0.12 $ 1.12 $ 0.24 $ 1.87

ACQUISITIONS AND GOODWILL (Tabl

ACQUISITIONS AND GOODWILL (Tables)	6 Months Ended
	Jul. 02, 2016
Business Combinations [Abstract]
Schedule of business acquisitions, by acquisition	The following table summarizes the allocation of the purchase price to the preliminary estimated fair value of the assets acquired and the liabilities assumed as of December 22, 2015, the effective date of the acquisition (in thousands): Cash paid, net of cash acquired $ 215,370 Replacement awards attributable to precombination service 1,709 Working capital and other adjustments (3,788 ) Total transaction consideration $ 213,291 Inventories $ 7,011 Prepaid expenses and other current assets 25 Property, plant and equipment and other long-term assets 1,190 Goodwill 168,021 Amortizing Intangibles: Useful Lives Trade name 6 yrs. 15,700 Customer lists 5 yrs. 10,800 Developed technology 7 yrs. 36,100 Noncompete agreements 3 yrs. 700 Current liabilities (17,019 ) Long-term liabilities (9,237 ) Total net assets acquired $ 213,291
Schedule of changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill were as follows (in thousands): Americas Europe Asia Total Balance at January 2, 2016 $ 283,598 $ 63,981 $ 11,815 $ 359,394 Segment allocation and acquisition adjustments (1) (78,197 ) 49,760 32,053 3,616 Currency (100 ) 1,223 25 1,148 Balance at July 2, 2016 $ 205,301 $ 114,964 $ 43,893 $ 364,158 __________________________________________________________________________________ (1) All goodwill resulting from the Misfit acquisition was recorded in the Americas segment as of January 2, 2016, on a preliminary basis. This line item includes an allocation of the goodwill across reporting segments and also purchase accounting adjustments made during the Year To Date Period to accounts receivable, inventories, current and long-term liabilities and working capital and other adjustments made to the transaction consideration.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jul. 02, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following (in thousands): July 2, 2016 January 2, 2016 Components and parts $ 67,408 $ 49,539 Work-in-process 10,762 12,213 Finished goods 583,578 563,592 Inventories $ 661,748 $ 625,344

WARRANTY LIABILITIES (Tables)

WARRANTY LIABILITIES (Tables)	6 Months Ended
	Jul. 02, 2016
Product Warranties Disclosures [Abstract]
Schedule of warranty liability activity	Warranty liability activity consisted of the following (in thousands): For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Beginning balance $ 13,669 $ 13,500 Settlements in cash or kind (4,795 ) (4,019 ) Warranties issued and adjustments to preexisting warranties (1) 4,861 4,038 Liabilities assumed in acquisition — 44 Ending balance $ 13,735 $ 13,563 _______________________________________________ (1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jul. 02, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax expense and related effective rate	The Company’s income tax expense and related effective rates were as follows (in thousands, except percentage data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Income tax expense $ 3,499 $ 22,894 $ 6,778 $ 41,417 Income tax rate 30.2 % 28.7 % 30.5 % 29.8 %

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jul. 02, 2016
Stockholders' Equity Note [Abstract]
Schedule of common stock repurchase activity	The following tables reflect the Company’s common stock repurchase activity for the periods indicated (in millions): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Fiscal Year Authorized Dollar Value Authorized Termination Date Number of Shares Repurchased Dollar Value Repurchased Number of Shares Repurchased Dollar Value Repurchased 2014 $ 1,000.0 December 2018 — $ 0.8 1.3 $ 102.5 2012 $ 1,000.0 December 2016 (1) — $ — — $ — 2010 $ 30.0 None — $ — — $ — For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Fiscal Year Authorized Dollar Value Authorized Termination Date Number of Shares Repurchased Dollar Value Repurchased Number of Shares Repurchased Dollar Value Repurchased 2014 $ 1,000.0 December 2018 0.1 $ 5.2 2.2 $ 188.2 2012 $ 1,000.0 December 2016 (1) — $ — 0.3 $ 28.8 2010 $ 30.0 None — $ — — $ — __________________________________________________________________________________ (1) In the first quarter of fiscal year 2015, the Company completed this repurchase plan.
Summary of changes in equity attributable to controlling and noncontrolling interest	The following tables summarize the changes in equity attributable to controlling and noncontrolling interest (in thousands): Fossil Group, Inc. Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity Balance at January 2, 2016 $ 921,388 $ 11,155 $ 932,543 Net income 11,814 3,654 15,468 Currency translation adjustment 7,721 — 7,721 Cash flow hedges - net change (6,101 ) — (6,101 ) Pension plan activity 1,714 — 1,714 Common stock issued upon exercise of stock options 57 — 57 Tax expense derived from stock-based compensation (1,389 ) — (1,389 ) Distribution of noncontrolling interest earnings — (4,544 ) (4,544 ) Acquisition of common stock (6,418 ) — (6,418 ) Stock-based compensation expense 16,463 — 16,463 Balance at July 2, 2016 $ 945,249 $ 10,265 $ 955,514 Fossil Group, Inc. Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity Balance at January 3, 2015 $ 977,860 $ 5,941 $ 983,801 Net income 92,718 4,740 97,458 Currency translation adjustment (27,947 ) — (27,947 ) Cash flow hedges - net change (185 ) — (185 ) Common stock issued upon exercise of stock options 582 — 582 Tax expense derived from stock-based compensation (699 ) — (699 ) Distribution of noncontrolling interest earnings — (5,056 ) (5,056 ) Business acquisition — 5,831 5,831 Acquisition of common stock (218,659 ) — (218,659 ) Stock-based compensation expense 9,276 — 9,276 Balance at July 4, 2015 $ 832,946 $ 11,456 $ 844,402

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options and stock appreciation rights activity	The following table summarizes stock options and stock appreciation rights activity during the Second Quarter: Stock Options and Stock Appreciation Rights Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in Thousands) (in Years) (in Thousands) Outstanding at April 2, 2016 2,214 $ 51.82 6.9 $ 10,828 Granted — Exercised — Forfeited or expired (8 ) 117.13 Outstanding at July 2, 2016 2,206 51.59 6.7 791 Exercisable at July 2, 2016 538 $ 84.14 4.4 $ 791
Summary of stock options and stock appreciation rights outstanding and exercisable	The following tables summarize information with respect to stock options and stock appreciation rights outstanding and exercisable at July 2, 2016 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Number of Shares Weighted- (in Thousands) (in Years) (in Thousands) $13.65 - $29.78 41 $ 14.40 2.7 41 $ 14.40 $30.71 - $47.99 91 36.29 2.5 91 36.29 $55.04 - $83.83 92 80.80 4.8 92 80.80 $95.91 - $131.46 144 127.98 5.7 144 127.98 Total 368 $ 80.95 4.3 368 $ 80.95 Stock Appreciation Rights Outstanding Stock Appreciation Rights Exercisable Range of Number of Weighted- Weighted- Number of Weighted- (in Thousands) (in Years) (in Thousands) $13.65 - $29.78 26 $ 21.97 4.2 13 $ 13.65 $30.71 - $47.99 1,560 38.27 7.5 9 38.40 $55.04 - $83.83 143 79.05 6.1 62 80.44 $95.91 - $131.46 109 114.42 5.0 86 115.32 Total 1,838 $ 45.72 7.2 170 $ 91.02
Summary of restricted stock, restricted stock units and performance restricted stock units activity	The following table summarizes restricted stock, restricted stock unit and performance restricted stock unit activity during the Second Quarter: Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Per Share (in Thousands) Nonvested at April 2, 2016 1,063 $ 47.98 Granted 494 27.60 Vested (21 ) 82.08 Forfeited (12 ) 41.27 Nonvested at July 2, 2016 1,524 $ 40.95

ACCUMULATED OTHER COMPREHENSI29

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jul. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of changes in the balances of each component of accumulated other comprehensive income (loss), net of taxes	The following tables illustrate changes in the balances of each component of accumulated other comprehensive income (loss), net of taxes (in thousands): For the 13 Weeks Ended July 2, 2016 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (64,486 ) $ (1,554 ) $ (1,457 ) $ (4,506 ) $ (72,003 ) Other comprehensive income (loss) before reclassifications (9,396 ) 8,738 (711 ) — (1,369 ) Tax (expense) benefit — (3,576 ) 259 — (3,317 ) Amounts reclassed from accumulated other comprehensive income 104 928 (450 ) — 582 Tax (expense) benefit — (263 ) 164 — (99 ) Total other comprehensive income (loss) (9,500 ) 4,497 (166 ) — (5,169 ) Ending balance $ (73,986 ) $ 2,943 $ (1,623 ) $ (4,506 ) $ (77,172 ) For the 13 Weeks Ended July 4, 2015 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (60,747 ) $ 19,315 $ (4,776 ) $ (3,647 ) $ (49,855 ) Other comprehensive income (loss) before reclassifications 5,559 2,701 10,460 — 18,720 Tax (expense) benefit — 253 (3,812 ) — (3,559 ) Amounts reclassed from accumulated other comprehensive income — 10,555 4,604 — 15,159 Tax (expense) benefit — (3,634 ) (1,677 ) — (5,311 ) Total other comprehensive income (loss) 5,559 (3,967 ) 3,721 — 5,313 Ending balance $ (55,188 ) $ 15,348 $ (1,055 ) $ (3,647 ) $ (44,542 ) For the 26 Weeks Ended July 2, 2016 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (81,707 ) $ 8,114 $ (693 ) $ (6,220 ) $ (80,506 ) Other comprehensive income (loss) before reclassifications 7,825 (1,259 ) (2,381 ) 2,010 6,195 Tax (expense) benefit — 1,039 868 (296 ) 1,611 Amounts reclassed from accumulated other comprehensive income 104 7,267 (918 ) — 6,453 Tax (expense) benefit — (2,316 ) 335 — (1,981 ) Total other comprehensive income (loss) 7,721 (5,171 ) (930 ) 1,714 3,334 Ending balance $ (73,986 ) $ 2,943 $ (1,623 ) $ (4,506 ) $ (77,172 ) For the 26 Weeks Ended July 4, 2015 Currency Translation Adjustments Cash Flow Hedges Forward Contracts Interest Rate Swap Pension Plan Total Beginning balance $ (27,241 ) $ 14,980 $ (502 ) $ (3,647 ) $ (16,410 ) Other comprehensive income (loss) before reclassifications (27,947 ) 21,462 3,054 — (3,431 ) Tax (expense) benefit — (5,965 ) (1,113 ) — (7,078 ) Amounts reclassed from accumulated other comprehensive income — 22,993 3,923 — 26,916 Tax (expense) benefit — (7,864 ) (1,429 ) — (9,293 ) Total other comprehensive income (loss) (27,947 ) 368 (553 ) — (28,132 ) Ending balance $ (55,188 ) $ 15,348 $ (1,055 ) $ (3,647 ) $ (44,542 )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
Summary information by operating segment	Summary information by operating segment was as follows (in thousands): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Net Sales Operating Income Net Sales Operating Income Americas $ 345,187 $ 52,300 $ 386,088 $ 86,033 Europe 215,936 31,669 227,923 41,814 Asia 124,245 18,936 125,964 20,555 Corporate (87,455 ) (77,968 ) Consolidated $ 685,368 $ 15,450 $ 739,975 $ 70,434 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Net Sales Operating Income Net Sales Operating Income Americas $ 680,997 $ 111,896 $ 752,684 $ 162,533 Europe 425,937 60,180 462,179 79,152 Asia 238,282 36,865 250,197 41,051 Corporate (179,087 ) (156,147 ) Consolidated $ 1,345,216 $ 29,854 $ 1,465,060 $ 126,589
Schedule of net sales for each class of similar products	The following tables reflect net sales for each class of similar products in the periods presented (in thousands, except percentage data): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 517,602 75.5 % $ 575,804 77.8 % Leathers 93,152 13.6 89,380 12.1 Jewelry 56,752 8.3 55,780 7.5 Other 17,862 2.6 19,011 2.6 Total $ 685,368 100.0 % $ 739,975 100.0 % For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 1,014,085 75.4 % $ 1,127,661 77.0 % Leathers 185,657 13.8 182,306 12.4 Jewelry 111,472 8.3 118,767 8.1 Other 34,002 2.5 36,326 2.5 Total $ 1,345,216 100.0 % $ 1,465,060 100.0 %

DERIVATIVES AND RISK MANAGEME31

DERIVATIVES AND RISK MANAGEMENT (Tables)	6 Months Ended
	Jul. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding forward contracts	As of July 2, 2016 , the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge the future payments of inventory transactions (in millions): Functional Currency Contract Currency Type Amount Type Amount Euro 255.1 U.S. dollar 288.3 British pound 52.9 U.S. dollar 79.0 Canadian dollar 80.5 U.S. dollar 61.0 Japanese yen 4,077.9 U.S. dollar 35.7 Mexican peso 335.4 U.S. dollar 18.3 Australian dollar 20.0 U.S. dollar 14.6 U.S. dollar 28.0 Japanese yen 3,013.0
Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes	The effective portion of gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period are set forth below (in thousands): For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Cash flow hedges: Forward contracts $ 5,162 $ 2,954 Interest rate swaps (452 ) 6,648 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 4,710 $ 9,602 For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Cash flow hedges: Forward contracts $ (220 ) $ 15,497 Interest rate swaps (1,513 ) 1,941 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ (1,733 ) $ 17,438
Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes reclassified into earnings and derivatives not designated as hedging instruments recorded directly to earnings	The following table illustrates the effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period (in thousands): Derivative Instruments Condensed Consolidated Statements of Income and Comprehensive Income Location Effect of Derivative Instruments For the 13 Weeks Ended July 2, 2016 For the 13 Weeks Ended July 4, 2015 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ 665 $ 6,921 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 74 $ (9 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from other comprehensive income (loss) $ (286 ) $ (404 ) Interest rate swap designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ — $ 3,331 Derivative Instruments Condensed Consolidated Statements of Income and Comprehensive Income Location Effect of Derivative Instruments For the 26 Weeks Ended July 2, 2016 For the 26 Weeks Ended July 4, 2015 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ 4,951 $ 15,129 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ (157 ) $ 80 Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from other comprehensive income (loss) $ (583 ) $ (837 ) Interest rate swap designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from other comprehensive income (loss) $ — $ 3,331
Schedule of fair value amounts for derivative instruments as separate asset and liability values on a gross basis and their location on condensed consolidated balance sheets	The following table discloses the fair value amounts for the Company’s derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands): Asset Derivatives Liability Derivatives July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 Derivative Instruments Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Condensed Consolidated Balance Sheets Location Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 10,709 Prepaid expenses and other current assets $ 13,184 Accrued expenses- other $ 6,109 Accrued expenses- other $ 477 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets 167 Accrued expenses- other 49 Accrued expenses- other 71 Interest rate swap designated as a cash flow hedging instrument Prepaid expenses and other current assets — Prepaid expenses and other current assets — Accrued expenses- other 1,568 Accrued expenses- other 1,273 Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 2,845 Intangible and other assets-net 2,785 Other long-term liabilities 1,936 Other long-term liabilities 250 Interest rate swap designated as a cash flow hedging instrument Intangible and other assets-net — Intangible and other assets-net 311 Other long-term liabilities 985 Other long-term liabilities 128 Total $ 13,554 $ 16,447 $ 10,647 $ 2,199

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jul. 02, 2016
Fair Value Disclosures [Abstract]
Schedule of the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of July 2, 2016 (in thousands): Fair Value at July 2, 2016 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 13,554 $ — $ 13,554 Deferred compensation plan assets: Investment in publicly traded mutual funds 2,398 — — 2,398 Total $ 2,398 $ 13,554 $ — $ 15,952 Liabilities: Forward contracts — 8,094 — 8,094 Interest rate swap — 2,553 — 2,553 Total $ — $ 10,647 $ — $ 10,647 The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 2, 2016 (in thousands): Fair Value at January 2, 2016 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 16,136 $ — $ 16,136 Deferred compensation plan assets: Investment in publicly traded mutual funds 2,406 — — 2,406 Interest rate swap — 311 — 311 Total $ 2,406 $ 16,447 $ — $ 18,853 Liabilities: Contingent consideration $ — $ — $ 3,643 $ 3,643 Forward contracts — 798 — 798 Interest rate swap — 1,401 — 1,401 Total $ — $ 2,199 $ 3,643 $ 5,842

INTANGIBLE AND OTHER ASSETS (Ta

INTANGIBLE AND OTHER ASSETS (Tables)	6 Months Ended
	Jul. 02, 2016
INTANGIBLE AND OTHER ASSETS
Schedule of intangible and other assets-net	The following table summarizes intangible and other assets (in thousands): July 2, 2016 January 2, 2016 Useful Gross Accumulated Gross Accumulated Lives Amount Amortization Amount Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 4,310 $ 3,321 $ 4,175 $ 3,195 Customer lists 5-10 yrs. 54,064 24,166 53,825 21,001 Patents 3-20 yrs. 2,302 2,082 2,273 2,064 Noncompete agreement 3-6 yrs. 2,524 1,409 2,515 1,134 Developed technology 7 yrs. 36,100 2,579 36,100 — Trade name 6 yrs. 15,700 1,308 15,700 — Other 7-20 yrs. 259 214 256 206 Total intangibles-subject to amortization 115,259 35,079 114,844 27,600 Intangibles-not subject to amortization: Trade names 74,503 74,493 Other assets: Key money deposits 28,612 20,349 29,357 19,805 Other deposits 22,303 21,684 Deferred compensation plan assets 2,398 2,406 Deferred tax asset-net 22,131 18,602 Restricted cash 525 512 Shop-in-shop 9,494 7,807 9,985 8,262 Interest rate swap — 311 Forward contracts 2,845 2,785 Investments 2,397 2,396 Other 4,784 5,519 Total other assets 95,489 28,156 93,557 28,067 Total intangible and other assets $ 285,251 $ 63,235 $ 282,894 $ 55,667 Total intangible and other assets-net $ 222,016 $ 227,227
Schedule of estimated aggregate future amortization expense by fiscal year for intangible assets	Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization Expense 2016 (remaining) $ 7,487 2017 $ 14,721 2018 $ 14,366 2019 $ 14,037 2020 $ 13,528 2021 $ 9,703

FINANCIAL STATEMENT POLICIES (D

FINANCIAL STATEMENT POLICIES (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Hedging Instruments
Unrealized net gain on foreign currency forward contracts, if settled			$ 3,800
Numerator:
Net income attributable to Fossil Group, Inc.	$ 6,021	$ 54,648	$ 11,814	$ 92,718
Denominator:
Basic weighted average common shares outstanding (in shares)	48,119	48,634	48,125	49,464
Basic EPS (in dollars per share)	$ 0.13	$ 1.12	$ 0.25	$ 1.87
Diluted EPS computation:
Basic weighted average common shares outstanding (in shares)	48,119	48,634	48,125	49,464
Effect of stock options, stock appreciation rights, restricted stock units and performance restricted stock units (in shares)	88	110	104	151
Diluted weighted average common shares outstanding (in shares)	48,207	48,744	48,229	49,615
Diluted EPS (in dollars per share)	$ 0.12	$ 1.12	$ 0.24	$ 1.87
Other EPS Disclosures
Weighted shares issuable under stock-based awards not included in the diluted EPS calculation (in shares)	1,900	600	1,700	400
Performance Shares [Member]
Other EPS Disclosures
Weighted shares issuable under stock-based awards not included in the diluted EPS calculation (in shares)	1,100		1,100

ACQUISITIONS AND GOODWILL (Narr

ACQUISITIONS AND GOODWILL (Narratives) (Details) € in Millions	Dec. 22, 2015USD ($)	Aug. 10, 2012	Jul. 02, 2016USD ($)	Jan. 02, 2016USD ($)	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Jul. 02, 2016EUR (€)	Jul. 02, 2016USD ($)
Business Acquisition [Line Items]
Cash paid, net of cash acquired					$ 0	$ 4,820,000
Revolving Credit Facility
Business Acquisition [Line Items]
Maximum borrowing capacity								$ 1,050,000,000
Misfit Inc.
Business Acquisition [Line Items]
Cash paid, net of cash acquired	$ 215,370,000
Replacement awards attributable to precombination service	1,709,000
Portion of cash payment placed into escrow	12,500,000
Amount received from escrow			$ 800,000
Liabilities incurred	$ 60,000,000
Acquisition related expenses for legal, accounting and valuation services				$ 8,400,000
Fossil Spain S L | General De Relojeria S A
Business Acquisition [Line Items]
Voting interest that may be acquired upon expiration of joint venture agreement		50.00%
Fixed purchase price							€ 4.3	4,800,000
Variable purchase price							€ 3.5	$ 3,900,000

ACQUISITIONS AND GOODWILL (Misf

ACQUISITIONS AND GOODWILL (Misfit, Inc. Acquisition) (Details) - USD ($) $ in Thousands	Dec. 22, 2015	Jul. 02, 2016	Jul. 04, 2015	Jan. 02, 2016
Business Acquisition [Line Items]
Cash paid, net of cash acquired		$ 0	$ 4,820
Goodwill		$ 364,158		$ 359,394
Trade name
Business Acquisition [Line Items]
Useful Lives		6 years
Developed technology
Business Acquisition [Line Items]
Useful Lives		7 years
Misfit Inc.
Business Acquisition [Line Items]
Cash paid, net of cash acquired	$ 215,370
Replacement awards attributable to precombination service	1,709
Working capital and other adjustments	(3,788)
Total transaction consideration	213,291
Inventories	7,011
Prepaid expenses and other current assets	25
Property, plant and equipment and other long-term assets	1,190
Goodwill	168,021
Current liabilities	(17,019)
Long-term liabilities	(9,237)
Total net assets acquired	213,291
Misfit Inc. | Trade name
Business Acquisition [Line Items]
Intangible assets	$ 15,700
Useful Lives	6 years
Misfit Inc. | Customer lists
Business Acquisition [Line Items]
Intangible assets	$ 10,800
Useful Lives	5 years
Misfit Inc. | Developed technology
Business Acquisition [Line Items]
Intangible assets	$ 36,100
Useful Lives	7 years
Misfit Inc. | Noncompete agreement
Business Acquisition [Line Items]
Intangible assets	$ 700
Useful Lives	3 years

ACQUISITIONS AND GOODWILL (Sche

ACQUISITIONS AND GOODWILL (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2016USD ($)
Goodwill [Roll Forward]
Balance at beginning of year	$ 359,394
Segment allocation and acquisition adjustment	3,616
Currency	1,148
Balance at end of period	364,158
Americas
Goodwill [Roll Forward]
Balance at beginning of year	283,598
Segment allocation and acquisition adjustment	(78,197)
Currency	(100)
Balance at end of period	205,301
Europe
Goodwill [Roll Forward]
Balance at beginning of year	63,981
Segment allocation and acquisition adjustment	49,760
Currency	1,223
Balance at end of period	114,964
Asia
Goodwill [Roll Forward]
Balance at beginning of year	11,815
Segment allocation and acquisition adjustment	32,053
Currency	25
Balance at end of period	$ 43,893

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Components and parts	$ 67,408	$ 49,539
Work-in-process	10,762	12,213
Finished goods	583,578	563,592
Inventories	$ 661,748	$ 625,344

WARRANTY LIABILITIES (Details)

WARRANTY LIABILITIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015
Warranty liability activity [Roll Forward]
Beginning balance	$ 13,669	$ 13,500
Settlements in cash or kind	(4,795)	(4,019)
Warranties issued and adjustments to preexisting warranties	4,861	4,038
Liabilities assumed in acquisition	0	44
Ending balance	$ 13,735	$ 13,563

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income Tax Expense and Related Effective Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,499	$ 22,894	$ 6,778	$ 41,417
Income tax rate (as percent)	30.20%	28.70%	30.50%	29.80%

INCOME TAXES (Narratives) (Deta

INCOME TAXES (Narratives) (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 02, 2016USD ($)	Jul. 02, 2016USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 22.6	$ 22.6
Unrecognized tax benefits that would impact effective tax rate	19.4	19.4
Unrecognized tax benefits excluding interest and penalties	0.9	0.9
Total amount of accrued income tax-related interest	2.6	2.6
Penalties accrued	1.8	1.8
Accrued income tax-related interest expense	$ 0.2	$ 0.4

STOCKHOLDERS' EQUITY (Common St

STOCKHOLDERS' EQUITY (Common Stock Repurchase Programs) (Details) - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Common Stock Repurchase Programs
Authorizations remaining	$ 824,200,000		$ 824,200,000
Repurchase program with termination date of December 2018
Common Stock Repurchase Programs
Dollar Value Authorized	$ 1,000,000,000		$ 1,000,000,000
Number of Shares Repurchased (in shares)	0	1.3	0.1	2.2
Dollar Value Repurchased	$ 800,000	$ 102,500,000	$ 5,200,000	$ 188,200,000
Repurchase program with termination date of December 2016
Common Stock Repurchase Programs
Dollar Value Authorized	$ 1,000,000,000		$ 1,000,000,000
Number of Shares Repurchased (in shares)	0	0	0	0.3
Dollar Value Repurchased	$ 0	$ 0	$ 0	$ 28,800,000
Share repurchase plan with no termination date
Common Stock Repurchase Programs
Dollar Value Authorized	$ 30,000,000		$ 30,000,000
Number of Shares Repurchased (in shares)	0	0	0	0
Dollar Value Repurchased	$ 0	$ 0	$ 0	$ 0
Common stock | Stock repurchase plans
Common Stock Repurchase Programs
Treasury stock effectively retired (in shares)			0.1
Treasury stock effectively retired			$ 1,100
Additional paid-in capital | Stock repurchase plans
Common Stock Repurchase Programs
Treasury stock effectively retired			200,000
Retained earnings | Stock repurchase plans
Common Stock Repurchase Programs
Treasury stock effectively retired			5,000,000
Treasury stock | Stock repurchase plans
Common Stock Repurchase Programs
Treasury stock effectively retired			$ 5,200,000

STOCKHOLDERS' EQUITY (Controlli

STOCKHOLDERS' EQUITY (Controlling and Noncontrolling Interest) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Stockholders' Equity Attributable to Controlling and Noncontrolling Interest [Roll Forward]
Beginning balance			$ 932,543	$ 983,801
Net income	$ 8,072	$ 56,820	15,468	97,458
Currency translation adjustment			7,721	(27,947)
Cash flow hedges - net change	4,331	(246)	(6,101)	(185)
Pension plan activity	0	0	1,714	0
Common stock issued upon exercise of stock options			57	582
Tax expense derived from stock-based compensation			(1,389)	(699)
Distribution of noncontrolling interest earnings			(4,544)	(5,056)
Business acquisition				5,831
Acquisition of common stock			(6,418)	(218,659)
Stock-based compensation expense			16,463	9,276
Ending balance	955,514	844,402	955,514	844,402
Fossil Group, Inc. Stockholders’ Equity
Stockholders' Equity Attributable to Controlling and Noncontrolling Interest [Roll Forward]
Beginning balance			921,388	977,860
Net income			11,814	92,718
Currency translation adjustment			7,721	(27,947)
Cash flow hedges - net change			(6,101)	(185)
Pension plan activity			1,714
Common stock issued upon exercise of stock options			57	582
Tax expense derived from stock-based compensation			(1,389)	(699)
Distribution of noncontrolling interest earnings			0	0
Business acquisition				0
Acquisition of common stock			(6,418)	(218,659)
Stock-based compensation expense			16,463	9,276
Ending balance	945,249	832,946	945,249	832,946
Noncontrolling Interest
Stockholders' Equity Attributable to Controlling and Noncontrolling Interest [Roll Forward]
Beginning balance			11,155	5,941
Net income			3,654	4,740
Currency translation adjustment			0	0
Cash flow hedges - net change			0	0
Pension plan activity			0
Common stock issued upon exercise of stock options			0	0
Tax expense derived from stock-based compensation			0	0
Distribution of noncontrolling interest earnings			(4,544)	(5,056)
Business acquisition				5,831
Acquisition of common stock			0	0
Stock-based compensation expense			0	0
Ending balance	$ 10,265	$ 11,456	$ 10,265	$ 11,456

EMPLOYEE BENEFIT PLANS (Summary

EMPLOYEE BENEFIT PLANS (Summary of Stock Options and Stock Appreciation Rights Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Jul. 02, 2016
Shares
Outstanding at beginning of period (in shares)	2,214
Granted (in shares)	0
Exercised (in shares)	0
Forfeited or expired (in shares)	(8)
Outstanding at end of period (in shares)	2,206	2,214	2,206
Exercisable at end of period (in shares)	538		538
Weighted- Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 51.82
Forfeited or expired (in dollars per share)	117.13
Outstanding at end of period (in dollars per share)	51.59	$ 51.82	$ 51.59
Exercisable at end of period (in dollars per share)	$ 84.14		$ 84.14
Weighted- Average Remaining Contractual Term
Outstanding (in years)		6 years 10 months 24 days	6 years 8 months 12 days
Exercisable at end of period (in years)			4 years 4 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value outstanding	$ 791	$ 10,828	$ 791
Exercisable at end of period	$ 791		$ 791

EMPLOYEE BENEFIT PLANS (Summa45

EMPLOYEE BENEFIT PLANS (Summary of Stock Options and Stock Appreciation Rights Outstanding and Exercisable) (Details) shares in Thousands	6 Months Ended
	Jul. 02, 2016$ / sharesshares
Stock options
Stock-based compensation plans disclosures
Stock Options Outstanding, Number Of Shares (in shares) | shares	368
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 80.95
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	4 years 3 months 18 days
Stock Options Exercisable, Number Of Shares (in shares) | shares	368
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 80.95
Stock appreciation rights
Stock-based compensation plans disclosures
Stock Appreciation Rights Outstanding, Number Of Shares (in shares) | shares	1,838
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 45.72
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	7 years 2 months 12 days
Stock Appreciation Rights Exercisable, Number Of Shares (in shares) | shares	170
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 91.02
$13.65 - $29.78 | Stock options
Stock-based compensation plans disclosures
Stock Options Outstanding, lower range (in dollars per share)	13.65
Stock Options Outstanding, upper range (in dollars per share)	$ 29.78
Stock Options Outstanding, Number Of Shares (in shares) | shares	41
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 14.40
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	2 years 8 months 12 days
Stock Options Exercisable, Number Of Shares (in shares) | shares	41
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 14.40
$13.65 - $29.78 | Stock appreciation rights
Stock-based compensation plans disclosures
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	13.65
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$ 29.78
Stock Appreciation Rights Outstanding, Number Of Shares (in shares) | shares	26
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 21.97
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	4 years 2 months 12 days
Stock Appreciation Rights Exercisable, Number Of Shares (in shares) | shares	13
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 13.65
$30.71 - $47.99 | Stock options
Stock-based compensation plans disclosures
Stock Options Outstanding, lower range (in dollars per share)	30.71
Stock Options Outstanding, upper range (in dollars per share)	$ 47.99
Stock Options Outstanding, Number Of Shares (in shares) | shares	91
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 36.29
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	2 years 6 months
Stock Options Exercisable, Number Of Shares (in shares) | shares	91
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 36.29
$30.71 - $47.99 | Stock appreciation rights
Stock-based compensation plans disclosures
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	30.71
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$ 47.99
Stock Appreciation Rights Outstanding, Number Of Shares (in shares) | shares	1,560
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 38.27
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	7 years 6 months
Stock Appreciation Rights Exercisable, Number Of Shares (in shares) | shares	9
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 38.40
$55.04 - $83.83 | Stock options
Stock-based compensation plans disclosures
Stock Options Outstanding, lower range (in dollars per share)	55.04
Stock Options Outstanding, upper range (in dollars per share)	$ 83.83
Stock Options Outstanding, Number Of Shares (in shares) | shares	92
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 80.80
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	4 years 9 months 18 days
Stock Options Exercisable, Number Of Shares (in shares) | shares	92
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 80.80
$55.04 - $83.83 | Stock appreciation rights
Stock-based compensation plans disclosures
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	55.04
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$ 83.83
Stock Appreciation Rights Outstanding, Number Of Shares (in shares) | shares	143
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 79.05
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	6 years 1 month 6 days
Stock Appreciation Rights Exercisable, Number Of Shares (in shares) | shares	62
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 80.44
$95.91 - $131.46 | Stock options
Stock-based compensation plans disclosures
Stock Options Outstanding, lower range (in dollars per share)	95.91
Stock Options Outstanding, upper range (in dollars per share)	$ 131.46
Stock Options Outstanding, Number Of Shares (in shares) | shares	144
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 127.98
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	5 years 8 months 12 days
Stock Options Exercisable, Number Of Shares (in shares) | shares	144
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 127.98
$95.91 - $131.46 | Stock appreciation rights
Stock-based compensation plans disclosures
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	95.91
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$ 131.46
Stock Appreciation Rights Outstanding, Number Of Shares (in shares) | shares	109
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$ 114.42
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	5 years
Stock Appreciation Rights Exercisable, Number Of Shares (in shares) | shares	86
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 115.32

EMPLOYEE BENEFIT PLANS (Summa46

EMPLOYEE BENEFIT PLANS (Summary of Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units Activity) (Details) - Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Jul. 02, 2016USD ($)$ / sharesshares
Number of Shares
Nonvested at beginning of period (in shares) | shares	1,063
Granted (in shares) | shares	494
Vested (in shares) | shares	(21)
Forfeited (in shares) | shares	(12)
Nonvested at end of period (in shares) | shares	1,524
Weighted-Average Grant Date Fair Value Per Share
Nonvested at beginning of period (in dollars per share) | $ / shares	$ 47.98
Granted (in dollars per share) | $ / shares	27.60
Vested (in dollars per share) | $ / shares	82.08
Forfeited (in dollars per share) | $ / shares	41.27
Nonvested at end of period (in dollars per share) | $ / shares	$ 40.95
Fair value of restricted stock and restricted stock units vested | $	$ 0.6

ACCUMULATED OTHER COMPREHENSI47

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance			$ 932,543	$ 983,801
Total other comprehensive income (loss)	$ (5,169)	$ 5,313	3,334	(28,132)
Ending balance	955,514	844,402	955,514	844,402
Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance	(64,486)	(60,747)	(81,707)	(27,241)
Other comprehensive income (loss) before reclassifications	(9,396)	5,559	7,825	(27,947)
Tax (expense) benefit	0	0	0	0
Amounts reclassed from accumulated other comprehensive income	104	0	104	0
Tax (expense) benefit	0	0	0	0
Total other comprehensive income (loss)	(9,500)	5,559	7,721	(27,947)
Ending balance	(73,986)	(55,188)	(73,986)	(55,188)
Cash Flow Hedges | Forward Contracts
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance	(1,554)	19,315	8,114	14,980
Other comprehensive income (loss) before reclassifications	8,738	2,701	(1,259)	21,462
Tax (expense) benefit	(3,576)	253	1,039	(5,965)
Amounts reclassed from accumulated other comprehensive income	928	10,555	7,267	22,993
Tax (expense) benefit	(263)	(3,634)	(2,316)	(7,864)
Total other comprehensive income (loss)	4,497	(3,967)	(5,171)	368
Ending balance	2,943	15,348	2,943	15,348
Cash Flow Hedges | Interest Rate Swaps
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance	(1,457)	(4,776)	(693)	(502)
Other comprehensive income (loss) before reclassifications	(711)	10,460	(2,381)	3,054
Tax (expense) benefit	259	(3,812)	868	(1,113)
Amounts reclassed from accumulated other comprehensive income	(450)	4,604	(918)	3,923
Tax (expense) benefit	164	(1,677)	335	(1,429)
Total other comprehensive income (loss)	(166)	3,721	(930)	(553)
Ending balance	(1,623)	(1,055)	(1,623)	(1,055)
Pension Plan
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance	(4,506)	(3,647)	(6,220)	(3,647)
Other comprehensive income (loss) before reclassifications	0	0	2,010	0
Tax (expense) benefit	0	0	(296)	0
Amounts reclassed from accumulated other comprehensive income	0	0	0	0
Tax (expense) benefit	0	0	0	0
Total other comprehensive income (loss)	0	0	1,714	0
Ending balance	(4,506)	(3,647)	(4,506)	(3,647)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning balance	(72,003)	(49,855)	(80,506)	(16,410)
Other comprehensive income (loss) before reclassifications	(1,369)	18,720	6,195	(3,431)
Tax (expense) benefit	(3,317)	(3,559)	1,611	(7,078)
Amounts reclassed from accumulated other comprehensive income	582	15,159	6,453	26,916
Tax (expense) benefit	(99)	(5,311)	(1,981)	(9,293)
Total other comprehensive income (loss)	(5,169)	5,313	3,334	(28,132)
Ending balance	$ (77,172)	$ (44,542)	$ (77,172)	$ (44,542)

SEGMENT INFORMATION (Summary In

SEGMENT INFORMATION (Summary Information by Operating Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Summary information by operating segment
Net Sales	$ 685,368	$ 739,975	$ 1,345,216	$ 1,465,060
Operating Income	15,450	70,434	29,854	126,589
Operating segments | Americas
Summary information by operating segment
Net Sales	345,187	386,088	680,997	752,684
Operating Income	52,300	86,033	111,896	162,533
Operating segments | Europe
Summary information by operating segment
Net Sales	215,936	227,923	425,937	462,179
Operating Income	31,669	41,814	60,180	79,152
Operating segments | Asia
Summary information by operating segment
Net Sales	124,245	125,964	238,282	250,197
Operating Income	18,936	20,555	36,865	41,051
Corporate
Summary information by operating segment
Operating Income	$ (87,455)	$ (77,968)	$ (179,087)	$ (156,147)

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Net Sales for Each Class of Similar Products) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Net sales for each class of similar products
Net sales	$ 685,368	$ 739,975	$ 1,345,216	$ 1,465,060
Percentage of Total	100.00%	100.00%	100.00%	100.00%
Watches
Net sales for each class of similar products
Net sales	$ 517,602	$ 575,804	$ 1,014,085	$ 1,127,661
Percentage of Total	75.50%	77.80%	75.40%	77.00%
Leathers
Net sales for each class of similar products
Net sales	$ 93,152	$ 89,380	$ 185,657	$ 182,306
Percentage of Total	13.60%	12.10%	13.80%	12.40%
Jewelry
Net sales for each class of similar products
Net sales	$ 56,752	$ 55,780	$ 111,472	$ 118,767
Percentage of Total	8.30%	7.50%	8.30%	8.10%
Other
Net sales for each class of similar products
Net sales	$ 17,862	$ 19,011	$ 34,002	$ 36,326
Percentage of Total	2.60%	2.60%	2.50%	2.50%

DERIVATIVES AND RISK MANAGEME50

DERIVATIVES AND RISK MANAGEMENT (Cash Flow Hedges) (Details) € in Millions, ¥ in Millions, £ in Millions, MXN in Millions, CAD in Millions, AUD in Millions	Jul. 26, 2013	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Jul. 02, 2016EUR (€)	Jul. 02, 2016USD ($)	Jul. 02, 2016GBP (£)	Jul. 02, 2016AUD	Jul. 02, 2016MXN	Jul. 02, 2016CAD	Jul. 02, 2016JPY (¥)	Mar. 09, 2015USD ($)
Derivative [Line Items]
Foreign currency cash flow hedge maximum length of projection term				24 months
Forecasted purchases to manage fluctuations (up to) (as a percent)						85.00%	85.00%	85.00%	85.00%	85.00%	85.00%	85.00%
Hedges resulted in ineffectiveness		$ 0	$ 0	$ 0	$ 0
Gain (loss) reclassified into earnings		6,021,000	54,648,000	$ 11,814,000	92,718,000
U.S. term loan
Derivative [Line Items]
Maximum borrowing capacity													$ 231,300,000
Designated as cash flow hedges | Forward Contracts | Euro
Derivative [Line Items]
Notional amount						€ 255.1	$ 288,300,000
Designated as cash flow hedges | Forward Contracts | British pound
Derivative [Line Items]
Notional amount							79,000,000	£ 52.9
Designated as cash flow hedges | Forward Contracts | Canadian dollar
Derivative [Line Items]
Notional amount							61,000,000				CAD 80.5
Designated as cash flow hedges | Forward Contracts | Japanese yen
Derivative [Line Items]
Notional amount							35,700,000					¥ 4,077.9
Designated as cash flow hedges | Forward Contracts | Mexican peso
Derivative [Line Items]
Notional amount							18,300,000			MXN 335.4
Designated as cash flow hedges | Forward Contracts | Australian dollar
Derivative [Line Items]
Notional amount							14,600,000		AUD 20
Designated as cash flow hedges | Forward Contracts | U.S. dollar
Derivative [Line Items]
Notional amount							$ 28,000,000					¥ 3,013
Designated as cash flow hedges | Interest Rate Swaps
Derivative [Line Items]
Derivative, term of contract	5 years
Fixed interest rate (as a percent)						1.288%	1.288%	1.288%	1.288%	1.288%	1.288%	1.288%
Designated as cash flow hedges | Interest Rate Swaps | Consolidated leverage ratio (the Ratio) less than 1.00 to 1.00
Derivative [Line Items]
Applicable margin based on the Company's consolidated leverage ratio (as a percent)				1.25%
Consolidated leverage ratio used to calculate variable rate of debt (as a percent)						1	1	1	1	1	1	1
Designated as cash flow hedges | Interest Rate Swaps | Consolidated leverage ratio (the Ratio) greater than 2.00 to 1.00
Derivative [Line Items]
Applicable margin based on the Company's consolidated leverage ratio (as a percent)				2.00%
Consolidated leverage ratio used to calculate variable rate of debt (as a percent)						2	2	2	2	2	2	2
Amount Reclassified from AOCI | Cash Flow Hedges
Derivative [Line Items]
Gain (loss) reclassified into earnings		$ 0	$ 0	$ 0	$ 0

DERIVATIVES AND RISK MANAGEME51

DERIVATIVES AND RISK MANAGEMENT (Net Investment Hedges) (Details) - Forward Contracts € in Millions, $ in Millions	6 Months Ended
	Jul. 02, 2016USD ($)	Apr. 02, 2016EUR (€)
Currency Translation Adjustments
Derivative [Line Items]
Gain (loss) on derivative used in net investment hedge, net of tax | $	$ 0.5
Net investment hedges
Derivative [Line Items]
Hedged amount | €		€ 45

DERIVATIVES AND RISK MANAGEME52

DERIVATIVES AND RISK MANAGEMENT (Non-designated Hedges) (Details) - Jul. 02, 2016 - Forward Contracts - Forward contracts not designated as hedging instruments ZAR in Millions, $ in Millions	USD ($)	ZAR
Derivative [Line Items]
Fair value of designated forward contracts | $	$ 1.4
Hedged amount | ZAR		ZAR 21.6

DERIVATIVES AND RISK MANAGEME53

DERIVATIVES AND RISK MANAGEMENT (Derivative Instruments Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Derivative [Line Items]
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$ 4,710	$ 9,602	$ (1,733)	$ 17,438
Cash flow hedges | Forward Contracts
Derivative [Line Items]
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	5,162	2,954	(220)	15,497
Cash flow hedges | Interest Rate Swaps
Derivative [Line Items]
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$ (452)	$ 6,648	$ (1,513)	$ 1,941

DERIVATIVES AND RISK MANAGEME54

DERIVATIVES AND RISK MANAGEMENT (Derivative Instruments Designated and Qualifying as Cash Flow Hedges) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Forward Contracts | Forward contracts designated as cash flow hedging instruments | Cash flow hedges
Effective portion of gains and losses on derivative instruments
Total gain (loss) reclassified from other comprehensive income (loss)	$ 665	$ 6,921	$ 4,951	$ 15,129
Forward Contracts | Forward contracts not designated as hedging instruments
Effective portion of gains and losses on derivative instruments
Total gain (loss) recognized in income	74	(9)	(157)	80
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges
Effective portion of gains and losses on derivative instruments
Total gain (loss) reclassified from other comprehensive income (loss)	(286)	(404)	(583)	(837)
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Amount Reclassified from AOCI
Effective portion of gains and losses on derivative instruments
Total gain (loss) reclassified from other comprehensive income (loss)	$ 0	$ 3,331	$ 0	$ 3,331

DERIVATIVES AND RISK MANAGEME55

DERIVATIVES AND RISK MANAGEMENT (Fair Value Amounts for Derivative Instruments) (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Fair value of derivative instruments
Asset Derivatives, Fair Value	$ 13,554	$ 16,447
Liability Derivatives, Fair Value	10,647	2,199
Net gain expected to be reclassified into earnings within the next twelve months	3,300
Forward Contracts | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Prepaid expenses and other current assets
Fair value of derivative instruments
Asset Derivatives, Fair Value	10,709	13,184
Forward Contracts | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Intangible and other assets-net
Fair value of derivative instruments
Asset Derivatives, Fair Value	2,845	2,785
Forward Contracts | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Accrued expenses- other
Fair value of derivative instruments
Liability Derivatives, Fair Value	6,109	477
Forward Contracts | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Other long-term liabilities
Fair value of derivative instruments
Liability Derivatives, Fair Value	1,936	250
Forward Contracts | Forward contracts not designated as hedging instruments | Prepaid expenses and other current assets
Fair value of derivative instruments
Asset Derivatives, Fair Value	0	167
Forward Contracts | Forward contracts not designated as hedging instruments | Accrued expenses- other
Fair value of derivative instruments
Liability Derivatives, Fair Value	49	71
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Prepaid expenses and other current assets
Fair value of derivative instruments
Asset Derivatives, Fair Value	0	0
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Intangible and other assets-net
Fair value of derivative instruments
Asset Derivatives, Fair Value	0	311
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Accrued expenses- other
Fair value of derivative instruments
Liability Derivatives, Fair Value	1,568	1,273
Interest Rate Swaps | Forward contracts designated as cash flow hedging instruments | Cash flow hedges | Other long-term liabilities
Fair value of derivative instruments
Liability Derivatives, Fair Value	$ 985	$ 128

FAIR VALUE MEASUREMENTS (Fair V

FAIR VALUE MEASUREMENTS (Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value Measurement, Recurring Basis - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Total
Assets:
Forward contracts	$ 13,554	$ 16,136
Investment in publicly traded mutual funds	2,398	2,406
Interest rate swap		311
Total	15,952	18,853
Liabilities:
Contingent consideration		3,643
Forward contracts	8,094	798
Interest rate swap	2,553	1,401
Total	10,647	5,842
Level 1
Assets:
Forward contracts	0	0
Investment in publicly traded mutual funds	2,398	2,406
Interest rate swap		0
Total	2,398	2,406
Liabilities:
Contingent consideration		0
Forward contracts	0	0
Interest rate swap	0	0
Total	0	0
Level 2
Assets:
Forward contracts	13,554	16,136
Investment in publicly traded mutual funds	0	0
Interest rate swap		311
Total	13,554	16,447
Liabilities:
Contingent consideration		0
Forward contracts	8,094	798
Interest rate swap	2,553	1,401
Total	10,647	2,199
Level 3
Assets:
Forward contracts	0	0
Investment in publicly traded mutual funds	0	0
Interest rate swap		0
Total	0	0
Liabilities:
Contingent consideration		3,643
Forward contracts	0	0
Interest rate swap	0	0
Total	$ 0	$ 3,643

INTANGIBLE AND OTHER ASSETS (In

INTANGIBLE AND OTHER ASSETS (Intangible and Other Assets) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jan. 02, 2016
Intangibles-subject to amortization:
Gross Amount	$ 115,259	$ 114,844
Accumulated Amortization	35,079	27,600
Intangibles-not subject to amortization:
Gross Amount	74,503	74,493
Other assets:
Gross Amount	95,489	93,557
Accumulated Amortization	28,156	28,067
Gross Amount	285,251	282,894
Accumulated Amortization	63,235	55,667
Total intangible and other assets-net	222,016	227,227
Key money deposits
Other assets:
Gross Amount	28,612	29,357
Accumulated Amortization	$ 20,349	19,805
Key money deposits | Minimum
Other assets:
Amortization period based on initial lease term	4 years
Key money deposits | Maximum
Other assets:
Amortization period based on initial lease term	18 years
Other deposits
Other assets:
Gross Amount	$ 22,303	21,684
Deferred compensation plan assets
Other assets:
Gross Amount	2,398	2,406
Deferred tax asset-net
Other assets:
Gross Amount	22,131	18,602
Restricted cash
Other assets:
Gross Amount	525	512
Shop-in-shop
Other assets:
Gross Amount	9,494	9,985
Accumulated Amortization	7,807	8,262
Interest Rate Swaps
Other assets:
Gross Amount	0	311
Forward contracts
Other assets:
Gross Amount	2,845	2,785
Investments
Other assets:
Gross Amount	2,397	2,396
Other
Other assets:
Gross Amount	$ 4,784	5,519
Trademarks
Intangibles-subject to amortization:
Useful Lives	10 years
Gross Amount	$ 4,310	4,175
Accumulated Amortization	3,321	3,195
Customer lists
Intangibles-subject to amortization:
Gross Amount	54,064	53,825
Accumulated Amortization	$ 24,166	21,001
Customer lists | Minimum
Intangibles-subject to amortization:
Useful Lives	5 years
Customer lists | Maximum
Intangibles-subject to amortization:
Useful Lives	10 years
Patents
Intangibles-subject to amortization:
Gross Amount	$ 2,302	2,273
Accumulated Amortization	$ 2,082	2,064
Patents | Minimum
Intangibles-subject to amortization:
Useful Lives	3 years
Patents | Maximum
Intangibles-subject to amortization:
Useful Lives	20 years
Noncompete agreement
Intangibles-subject to amortization:
Gross Amount	$ 2,524	2,515
Accumulated Amortization	$ 1,409	1,134
Noncompete agreement | Minimum
Intangibles-subject to amortization:
Useful Lives	3 years
Noncompete agreement | Maximum
Intangibles-subject to amortization:
Useful Lives	6 years
Developed technology
Intangibles-subject to amortization:
Useful Lives	7 years
Gross Amount	$ 36,100	36,100
Accumulated Amortization	$ 2,579	0
Trade name
Intangibles-subject to amortization:
Useful Lives	6 years
Gross Amount	$ 15,700	15,700
Accumulated Amortization	1,308	0
Other
Intangibles-subject to amortization:
Gross Amount	259	256
Accumulated Amortization	$ 214	$ 206
Other | Minimum
Intangibles-subject to amortization:
Useful Lives	7 years
Other | Maximum
Intangibles-subject to amortization:
Useful Lives	20 years

INTANGIBLE AND OTHER ASSETS (Am

INTANGIBLE AND OTHER ASSETS (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
INTANGIBLE AND OTHER ASSETS
Amortization expense for intangible assets	$ 3,800	$ 1,400	$ 7,500	$ 2,500
Estimated aggregate future amortization expense by fiscal year
2016 (remaining)	7,487		7,487
2,017	14,721		14,721
2,018	14,366		14,366
2,019	14,037		14,037
2,020	13,528		13,528
2,021	$ 9,703		$ 9,703

DEBT ACTIVITY (Details)

DEBT ACTIVITY (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 02, 2016	Jul. 02, 2016	Jan. 02, 2016	Jul. 04, 2015	Jan. 03, 2015
Debt Instrument [Line Items]
International cash balance	$ 231,836	$ 231,836	$ 289,275	$ 249,864	$ 276,261
U.S. term loan
Debt Instrument [Line Items]
Repayment of borrowings	4,700	9,400
Interest paid	1,600	3,200
U.S. revolving line of credit
Debt Instrument [Line Items]
Total borrowings	83,600	64,000
Available borrowing capacity	133,000	133,000
International cash balance	215,500	215,500
Interest expense incurred	$ 4,200	$ 7,900

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details)	Aug. 08, 2016USD ($)	Jul. 02, 2016
First Amendment
Subsequent Event [Line Items]
Consolidated leverage ratio prior to amendment		2.50
Subsequent Event | Base Rate [Member]
Subsequent Event [Line Items]
Basis spread	25.00%
Subsequent Event | First Amendment
Subsequent Event [Line Items]
Prepayments of debt threshold (in excess)	$ 25,000,000
Consolidated leverage ratio prior to amendment	3.25
Subsequent Event | First Amendment | London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Basis spread	25.00%