Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Mar. 01, 2024 | Jul. 01, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-41040 | ||
Entity Registrant Name | FOSSIL GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2018505 | ||
Entity Address, Address Line One | 901 S. Central Expressway, | ||
Entity Address, City or Town | Richardson, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75080 | ||
City Area Code | 972 | ||
Local Phone Number | 234-2525 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 116.7 | ||
Entity Common Stock, Shares Outstanding (in shares) | 52,491,710 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement to be furnished to shareholders in connection with its 2024 Annual Meeting of Stockholders are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000883569 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | FOSL | ||
Security Exchange Name | NASDAQ | ||
Senior notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 7.00% Senior Notes due 2026 | ||
Trading Symbol | FOSLL | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Location | Dallas, Texas |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 117,197 | $ 198,726 |
Accounts receivable-net | 187,942 | 206,133 |
Inventories | 252,834 | 376,028 |
Prepaid expenses and other current assets | 152,717 | 164,413 |
Total current assets | 710,690 | 945,300 |
Property, plant and equipment-net | 57,244 | 79,882 |
Operating lease right-of-use assets | 151,000 | 156,947 |
Intangible and other assets-net | 59,096 | 55,999 |
Total long-term assets | 267,340 | 292,828 |
Total assets | 978,030 | 1,238,128 |
Current liabilities: | ||
Accounts payable | 147,161 | 191,141 |
Short-term debt | 480 | 342 |
Accrued expenses: | ||
Current operating lease liabilities | 43,565 | 49,702 |
Compensation | 44,789 | 44,259 |
Royalties | 15,880 | 20,875 |
Customer liabilities | 37,584 | 41,996 |
Transaction taxes | 10,412 | 14,303 |
Other | 27,811 | 40,424 |
Income taxes payable | 14,795 | 22,878 |
Total current liabilities | 342,477 | 425,920 |
Long-term income taxes payable | 20,409 | 22,603 |
Deferred income tax liabilities | 698 | 616 |
Long-term debt | 206,983 | 216,132 |
Long-term operating lease liabilities | 137,644 | 150,188 |
Other long-term liabilities | 18,081 | 19,660 |
Total long-term liabilities | 383,815 | 409,199 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Common stock, 52,487 and 51,836 shares issued and outstanding at December 30, 2023 and December 31, 2022, respectively | 525 | 518 |
Additional paid-in capital | 311,709 | 306,241 |
Retained earnings | 18,403 | 175,491 |
Accumulated other comprehensive income (loss) | (76,405) | (76,318) |
Total Fossil Group, Inc. stockholders' equity | 254,232 | 405,932 |
Noncontrolling interest | (2,494) | (2,923) |
Total stockholders' equity | 251,738 | 403,009 |
Total liabilities and stockholders' equity | $ 978,030 | $ 1,238,128 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 52,487,020 | 51,836,456 |
Common stock, shares outstanding (in shares) | 52,487,020 | 51,836,456 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,412,384 | $ 1,682,439 | $ 1,870,036 |
Cost of sales | 732,803 | 851,760 | 903,662 |
Gross profit | 679,581 | 830,679 | 966,374 |
Operating expenses: | |||
Selling, general and administrative expenses | 777,167 | 823,689 | 842,625 |
Long-lived asset impairments | 2,159 | 2,342 | 9,223 |
Restructuring expenses | 43,279 | 6,121 | 21,889 |
Total operating expenses | 822,605 | 832,152 | 873,737 |
Operating income (loss) | (143,024) | (1,473) | 92,637 |
Interest expense | 21,778 | 19,237 | 25,086 |
Other income (expense) - net | 8,665 | (1,416) | (14,500) |
Income (loss) before income taxes | (156,137) | (22,126) | 53,051 |
Provision for income taxes | 522 | 21,400 | 26,427 |
Net income (loss) | (156,659) | (43,526) | 26,624 |
Less: Net income attributable to noncontrolling interest | 429 | 631 | 1,190 |
Net income (loss) attributable to Fossil Group, Inc. | (157,088) | (44,157) | 25,434 |
Other comprehensive income (loss), net of taxes: | |||
Currency translation adjustment | 6,775 | (15,080) | (14,423) |
Cash flow hedges - net change | (709) | (1,947) | 3,494 |
Pension plan activity | (6,153) | 7,984 | 2,554 |
Total other comprehensive income (loss) | (87) | (9,043) | (8,375) |
Total comprehensive income (loss) | (156,746) | (52,569) | 18,249 |
Less: Comprehensive income attributable to noncontrolling interest | 429 | 631 | 1,190 |
Comprehensive income (loss) attributable to Fossil Group, Inc. | $ (157,175) | $ (53,200) | $ 17,059 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (3) | $ (0.85) | $ 0.49 |
Diluted (in dollars per share) | $ (3) | $ (0.85) | $ 0.48 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 52,284 | 51,841 | 51,961 |
Diluted (in shares) | 52,284 | 51,841 | 52,777 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Stockholders' Equity Attributable to Fossil Group, Inc. | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance at beginning of period (in shares) at Jan. 02, 2021 | 51,474,000 | |||||||
Balance at beginning of period at Jan. 02, 2021 | $ 440,032 | $ 439,090 | $ 515 | $ 293,777 | $ 0 | $ 203,698 | $ (58,900) | $ 942 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 861,000 | |||||||
Common stock issued upon exercise of stock options and stock appreciation rights and restricted stock units | 0 | $ 8 | (8) | |||||
Acquisition of common stock | (2,420) | (2,420) | (2,420) | |||||
Retirement of common stock (in shares) | (189,000) | |||||||
Retirement of common stock | 0 | $ (2) | (2,418) | 2,420 | ||||
Stock-based compensation | 9,497 | 9,497 | 9,497 | |||||
Net income (loss) | 26,624 | 25,434 | 25,434 | 1,190 | ||||
Other comprehensive income (loss) | (8,375) | (8,375) | (8,375) | |||||
Balance at end of period (in shares) at Jan. 01, 2022 | 52,146,000 | |||||||
Balance at end of period at Jan. 01, 2022 | 465,358 | 463,226 | $ 521 | 300,848 | 0 | 229,132 | (67,275) | 2,132 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 906,000 | |||||||
Common stock issued upon exercise of stock options and stock appreciation rights and restricted stock units | 0 | $ 9 | (9) | |||||
Acquisition of common stock | $ (12,447) | (12,447) | (12,447) | |||||
Retirement of common stock (in shares) | (1,000,000) | (1,216,000) | ||||||
Retirement of common stock | $ 0 | $ (12) | (2,951) | 12,447 | (9,484) | |||
Stock-based compensation | 8,353 | 8,353 | 8,353 | |||||
Net income (loss) | (43,526) | (44,157) | (44,157) | 631 | ||||
Other comprehensive income (loss) | (9,043) | (9,043) | (9,043) | |||||
Distribution of noncontrolling interest earnings and other | $ (5,686) | 0 | (5,686) | |||||
Balance at end of period (in shares) at Dec. 31, 2022 | 51,836,456 | 51,836,000 | ||||||
Balance at end of period at Dec. 31, 2022 | $ 403,009 | 405,932 | $ 518 | 306,241 | 0 | 175,491 | (76,318) | (2,923) |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 816,000 | |||||||
Common stock issued upon exercise of stock options and stock appreciation rights and restricted stock units | 0 | $ 8 | (8) | |||||
Acquisition of common stock | (530) | (530) | (530) | |||||
Retirement of common stock (in shares) | (165,000) | |||||||
Retirement of common stock | 0 | $ (1) | (529) | 530 | ||||
Stock-based compensation | 6,005 | 6,005 | 6,005 | |||||
Net income (loss) | (156,659) | (157,088) | (157,088) | 429 | ||||
Other comprehensive income (loss) | $ (87) | (87) | (87) | |||||
Balance at end of period (in shares) at Dec. 30, 2023 | 52,487,020 | 52,487,000 | ||||||
Balance at end of period at Dec. 30, 2023 | $ 251,738 | $ 254,232 | $ 525 | $ 311,709 | $ 0 | $ 18,403 | $ (76,405) | $ (2,494) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating Activities: | |||
Net income (loss) | $ (156,659) | $ (43,526) | $ 26,624 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 19,099 | 23,333 | 29,606 |
Non-cash lease expense | 74,813 | 79,274 | 90,250 |
Stock-based compensation | 5,686 | 8,060 | 9,497 |
Decrease in allowance for returns and markdowns | (2,604) | (6,729) | (6,420) |
Gain on disposal of assets | (6,398) | (460) | (5,218) |
Property, plant and equipment and other long-lived asset impairment losses | 2,159 | 2,642 | 9,223 |
Non-cash restructuring charges | 7,563 | 779 | 655 |
Bad debt expense | 3,535 | 6,305 | 3,070 |
Other non cash items | (7,080) | 12,456 | 17,861 |
Loss on extinguishment of debt | 0 | 1,060 | 13,005 |
Contingent consideration remeasurement | (348) | 2,363 | 347 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 19,945 | 41,621 | (35,453) |
Inventories | 125,766 | (46,031) | (62,261) |
Prepaid expenses and other current assets | 18,758 | (3,954) | 20,920 |
Accounts payable | (42,889) | (35,422) | 53,934 |
Accrued expenses | (24,473) | (55,055) | (12,927) |
Income taxes | (9,858) | (4,496) | 3,085 |
Operating lease liabilities | (86,474) | (93,076) | (105,769) |
Net cash (used in) provided by operating activities | (59,459) | (110,856) | 50,029 |
Investing Activities: | |||
Additions to property, plant and equipment and other | (8,528) | (13,262) | (10,293) |
(Increase) decrease in intangible and other assets | (1,365) | 1,719 | 6,031 |
Proceeds from the sale of property, plant and equipment | 23 | 2,990 | 11,369 |
Net cash (used in) provided by investing activities | (9,870) | (8,553) | 7,107 |
Financing Activities: | |||
Acquisition of common stock | (530) | (12,447) | (2,420) |
Distribution of noncontrolling interest earnings | 0 | (5,686) | 0 |
Debt borrowings | 172,827 | 386,067 | 254,717 |
Debt payments | (183,607) | (314,200) | (354,389) |
Payment for shares of Fossil Accessories South Africa Pty. Ltd. | (2,316) | 0 | 0 |
Debt issuance costs and other | 0 | (744) | (10,479) |
Net cash (used in) provided by financing activities | (13,626) | 52,990 | (112,571) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 463 | 5,922 | (4,239) |
Net decrease in cash and cash equivalents, and restricted cash | (82,492) | (60,497) | (59,674) |
Cash and cash equivalents, and restricted cash: | |||
Beginning of year | 204,075 | 264,572 | 324,246 |
End of year | $ 121,583 | $ 204,075 | $ 264,572 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Consolidated Financial Statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its subsidiaries (the "Company"). The Company is a leader in the design, development, marketing and distribution of contemporary, high quality fashion accessories on a global basis. The Company's products are sold primarily through department stores, specialty retailers, Company-owned retail stores and commercial websites worldwide. The Company reports on a fiscal year reflecting the retail-based calendar (containing 4-4-5 week calendar quarters). References to fiscal years 2023, 2022 and 2021 are for the fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022, respectively. All intercompany balances and transactions are eliminated in consolidation. Use of Estimates is required in the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to product returns, bad debt, inventories, long-lived asset impairment, impairment of trade names, income taxes, warranty costs and litigation liabilities. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. Management estimates form the basis for making judgments about the carrying value of the assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Concentration of Risk involves financial instruments that potentially expose the Company to concentration of credit risk and consist primarily of cash investments and accounts receivable. The Company places its cash investments with high-credit quality financial institutions and currently invests primarily in corporate debt securities and money market funds with major banks and financial institutions. Accounts receivable are generally diversified due to the number of entities comprising the Company's customer base and their dispersion across many geographic regions. The Company believes no significant concentration of credit risk exists with respect to these cash investments and accounts receivable. A significant portion of sales of the Company's products are supplied by manufacturers located outside of the U.S., primarily in Asia. While the Company is not dependent on any single manufacturer outside the U.S., the Company could be adversely affected by political, economic or other disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. The Company has entered into multi-year, worldwide exclusive license agreements for the manufacture, distribution and sale of products bearing the brand names of certain globally recognized fashion companies. Sales of the Company's licensed products amounted to 44.7%, 46.5% and 50.5% of the consolidated net sales for fiscal years 2023, 2022 and 2021, respectively, of which MICHAEL KORS ® product sales accounted for 17.6%, 19.2% and 20.9% of the consolidated net sales for fiscal years 2023, 2022 and 2021, respectively, and EMPORIO ARMANI ® product sales accounted for 14.0%, 14.6% and 18.4% of the consolidated net sales for fiscal years 2023, 2022 and 2021, respectively. Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. Restricted Cash was comprised primarily of pledged collateral to secure bank guarantees for the purpose of obtaining retail space. The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 30, 2023, December 31, 2022 and January 1, 2022 that are presented in the consolidated statement of cash flows (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash and cash equivalents $ 117,197 $ 198,726 $ 250,844 Restricted cash included in prepaid expenses and other current assets 77 106 117 Restricted cash included in intangible and other assets-net 4,309 5,243 13,611 Cash, cash equivalents and restricted cash $ 121,583 $ 204,075 $ 264,572 Accounts Receivable at the end of fiscal years 2023 and 2022 are stated net of doubtful accounts of approximately $12.6 million and $14.6 million, respectively. Inventories are stated at the lower of cost and net realizable value, including any applicable duty and freight charges. Inventory held at consignment locations is included in the Company's finished goods inventory, and at the end of fiscal years 2023 and 2022, was $19.8 million and $25.3 million, respectively. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company's incremental borrowing rate, adjusted for the lease term and lease country, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and are reduced by lease incentives. Some lease terms include options to extend or terminate the lease and they are included in the measurement of the lease assets and lease liabilities if the Company is reasonably certain that those options will be exercised. Variable lease payments are expensed as incurred and include certain index-based changes in rent and certain non-lease components such as maintenance and other services provided by the lessor to the extent the charges are variable. The Company evaluates contractual arrangements at inception to determine if individual agreements are a lease or contain an identifiable lease component as defined by Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"). When evaluating contracts to determine appropriate classification and recognition under ASC 842, judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease and whether renewal or termination options are reasonably certain to be exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease agreements with lease and non-lease components are combined as a single lease component for all classes of underlying assets. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Lease assets are evaluated for impairment whenever events or conditions indicate that the carrying value of an asset may not be recoverable based on expected undiscounted cash flows related to the asset. Lease impairment losses of $1.7 million, $2.1 million and $7.5 million were recorded in long-lived asset impairments in fiscal years 2023, 2022 and 2021, respectively. No lease impairment losses were recorded in restructuring charges in fiscal year 2023 and 2022, and lease impairment losses of $0.7 million were recorded in restructuring charges in fiscal year 2021. Property, Plant and Equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 30 years for buildings, generally five years for machinery and equipment and furniture and fixtures and two Property, plant and equipment is evaluated for impairment whenever events or conditions indicate that the carrying value of an asset may not be recoverable based on expected undiscounted cash flows related to the asset. Property, plant and equipment impairment losses of underperforming Company-owned retail stores of $0.4 million, $0.2 million and $1.7 million were recorded in long-lived asset impairments. No impairment losses were recorded in restructuring charges in fiscal year 2023, and impairment losses of $0.1 million and $0.2 million were recorded in restructuring charges in fiscal years 2022 and 2021, respectively. Other Intangible Assets include trademarks, trade names, customer lists and patents. Trademarks, trade names with finite lives, customer lists and patents are amortized using the straight-line method over their estimated useful lives, which are generally three The fair value of the Company's MICHELE ® trade name was estimated using the relief from royalty method. No impairment charges were recorded to the MICHELE trade name during fiscal years 2023, 2022 or 2021. The SKAGEN ® trade name is being fully amortized on a straight-line basis over its estimated remaining useful life of two years as of December 30, 2023. No impairment charges were recorded to the SKAGEN trade name during fiscal years 2023, 2022 or 2021. Accrued Expenses includes liabilities relating to employee compensation, operating lease liabilities, royalties, warranties, duty, gift cards, foreign exchange forward contracts ("forward contracts") and other accrued liabilities which are current in nature. Other Long-Term Liabilities includes obligations relating to asset retirements, forward contracts and defined benefits relating to certain international employees and other liabilities that are not current in nature. Cumulative Translation Adjustment is included as a component of accumulated other comprehensive income (loss) and reflects the adjustments resulting from translating the financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated to U.S. dollars at fiscal year-end exchange rates. Income and expense items are translated at average monthly exchange rates. Cumulative translation adjustments remain in accumulated other comprehensive income (loss) and are reclassified into earnings in the event the related foreign subsidiary is sold or liquidated. Foreign Transaction Gains and Losses are those changes in exchange rates of currencies not considered the functional currency that affects cash flows and the related receivables or payables. The Company incurred a net foreign currency transaction gain of approximately $3.0 million for fiscal year 2023 and net foreign currency transaction losses of $0.2 million and $4.0 million for fiscal years 2022 and 2021, respectively. These net gains and losses have been included in other income (expense)—net in the Company's consolidated statements of income (loss) and comprehensive income (loss). Revenues from sales of the Company's products are recognized when control of the product is transferred to the customer and in an amount that reflects the consideration the Company expects to be entitled in exchange for the product. The Company accepts limited returns from customers. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience and any specific issues identified. Product returns are accounted for as reductions to revenue and cost of sales and increases to customer liabilities and other current assets to the extent the returned product is resalable. The Company recorded an estimated returns provision of $33.4 million and $35.8 million in accrued expenses as of the end of fiscal years 2023 and 2022, respectively. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. See Note 2—Revenue, for more information regarding the Company's revenue recognition policy. Cost of Sales includes raw material costs, assembly labor, assembly overhead including depreciation expense, assembly warehousing costs, shipping and handling costs related to the movement of finished goods from assembly locations to sales distribution centers and from sales distribution centers to customer locations and restructuring charges. Additionally, cost of sales includes customs duties, product packaging cost, royalty cost associated with sales of licensed products, the cost of molding and tooling and inventory shrinkage and damages. Operating Expenses include selling, general and administrative ("SG&A"), long-lived asset impairments 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 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 reduce and optimize the Company’s infrastructure and store closures. See Note 20—Restructuring for additional information on the Company’s restructuring plan. The Company recorded $3.6 million, $4.0 million and $16.1 million, during fiscal years 2023, 2022 and 2021, respectively, related to government assistance and subsidies. These amounts mostly relate to payroll expense and were recorded as a reduction of selling, general and administrative expenses Advertising Costs for digital marketing and in-store advertising as well as co-op advertising, product displays, show/exhibit costs, advertising royalties related to the sales of licensed brands, internet costs associated with affiliation fees and sample costs are expensed as incurred within SG&A. Advertising costs were $157.3 million, $154.6 million and $168.4 million for fiscal years 2023, 2022 and 2021, respectively. Warranty Costs are included in SG&A. The Company records an estimate for future warranty costs based on historical repair costs and adjusts the liability as required. Warranty costs have historically been within the Company's expectations and the provisions established. If such costs were to substantially exceed estimates, this could have an adverse effect on the Company's operating results. See Note 4—Warranty Liabilities, for more information regarding warranties. Research and Development Costs are incurred primarily through the Company's in-house engineering team as well as third party consulting and labor and consist primarily of personnel-related expenses, tooling and prototype materials and overhead costs. The Company’s research and development ("R&D") expenses are related to designing and developing new products and features and improving existing products. The Company's R&D expenses are recorded in SG&A and were $19.4 million, $29.1 million and $27.2 million in fiscal years 2023, 2022 and 2021, respectively. Noncontrolling Interest is recognized as equity in the Company's consolidated balance sheets, is reflected in net income attributable to noncontrolling interest in the consolidated statements of income (loss) and comprehensive income (loss) and is captured within the summary of changes in equity attributable to controlling and noncontrolling interests. Noncontrolling interests represent ownership interests in the Company's subsidiaries held by third parties. Other Comprehensive Income (Loss) which is reported in the consolidated statements of income (loss) and comprehensive income (loss) and consolidated statements of stockholders' equity, consists of net income and other gains and losses affecting equity that are excluded from net income. The components of other comprehensive income (loss) primarily consist of foreign currency translation gains and losses and net realized and unrealized gains and losses on the following: (i) derivatives designated as cash flow hedges and (ii) the Company's defined benefit plans. Earnings (Loss) Per Share ("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): Fiscal Year 2023 2022 2021 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (157,088) $ (44,157) $ 25,434 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 52,284 51,841 51,961 Basic EPS $ (3.00) $ (0.85) $ 0.49 Diluted EPS computation: Basic weighted average common shares outstanding 52,284 51,841 51,961 Diluted weighted average common shares outstanding 52,284 51,841 52,777 Diluted EPS $ (3.00) $ (0.85) $ 0.48 Approximately 2.1 million, 2.1 million and 0.3 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in fiscal years 2023, 2022 and 2021, respectively, because they were anti-dilutive, including approximately 0.3 million, 0.3 million and 13,000 weighted performance-based shares in fiscal years 2023, 2022 and 2021, respectively. Income Taxes are provided for under the asset and liability method for temporary differences in assets and liabilities recognized for income tax and financial reporting purposes. Deferred tax assets are periodically assessed for the likelihood of whether they are more likely than not to be realized. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (i) the more likely than not recognition threshold is satisfied; (ii) the position is ultimately settled through negotiation or litigation; or (iii) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the "Tax Act") requiring the inclusion of certain foreign earnings in U.S. taxable income first applied in fiscal year 2018. The GILTI tax was accounted for as incurred under the period cost method. The Company's valuation allowance analysis is affected by various aspects of the Tax Act, including the new limitation on the deductibility of interest expense and the impact of GILTI. Those adjustments may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU"), 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this guidance on its financial statement disclosures. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The amendments in this update will require public entities to disclose significant segment expenses that are regularly provided to the Company's chief operating decision maker and included within segment profit and loss, an amount and description of its composition for other segment items, and expanded interim disclosures. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this guidance on its financial statement disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The amendments in ASU 2023-06 modify the disclosure or presentation requirements of a variety of topics in the FASB Accounting Standards Codification (the "Codification"), with the intention of clarifying or improving them and to align the requirements in the Codification with the regulations of the U.S. Securities and Exchange Commission (the "SEC”). The effective date for ASU 2023-06 varies and is determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure. ASU 2023-06 will not have an impact on the Company's financial position or results of operation. The Organization for Economic Cooperation and Development ("OECD") and over 140 countries have agreed to enact a two-pillar solution to reform the international tax rules to address the challenges arising from the globalization and digitalization of the economy. "The Pillar Two Global Anti-Base Erosion (GloBE) Rules" provide a coordinated system to ensure that multinational enterprises with revenues above 750 million euro pay a minimum effective tax rate of 15% tax on the income arising in each of the jurisdictions in which they operate. The technical aspects of the calculation are still being developed. Implementation of these rules is scheduled for 2024, at which point the Company can determine the impact on its income tax expense and effective tax rate. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination as if they had originated the contracts, as opposed to at fair value on the acquisition date. The standard is effective for business combinations after January 1, 2023. The adoption of this standard did not have an impact on the Company's consolidated financial statements or related disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s revenue consists of sales of finished products to customers through wholesale and retail channels. Revenue from the sale of products, including those that are subject to inventory consignment agreements, is recognized when control of the product is transferred to the customer and in an amount that reflects the consideration the Company expects to be entitled in exchange for the product. The Company generally considers control to transfer either when products ship or when products are delivered depending on the shipping terms in the agreement or purchase order. The Company considers control to have transferred upon shipment or delivery because the Company has a present right to payment, the customer has legal title to the product, the Company has transferred physical possession of the product, and the customer has the significant risks and rewards of the product. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. Markdowns. The Company provides markdowns to certain customers in order to facilitate sales of select styles. Markdowns are estimated at the time of sale using historical data and are recorded as a reduction to revenue. The Company's policy is to record its markdown allowance as a reduction of accounts receivable. Returns. The Company accepts limited returns from customers. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience, any specific issues identified and current information. Product returns are accounted for as reductions to revenue, cost of sales and customer liabilities and an increase to other current assets to the extent the returned product is resalable. Cooperative Advertising. The Company participates in cooperative advertising programs with its major retail customers, whereby the Company shares the cost of certain of their advertising and promotional expenses. Certain advertising expenses which are not considered separate performance obligations are recorded as sales discounts. All other cooperative advertising expenses are recorded in SG&A. Multiple Performance Obligations. The Company enters into contracts with customers for its wearable technology that include multiple performance obligations. Each distinct performance obligation was determined by whether the customer could benefit from the good or service on its own or together with readily available resources. The Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company's process for determining standalone selling price considers multiple factors including the Company's internal pricing model and market trends that may vary depending upon the facts and circumstances related to each performance obligation. Revenue allocated to the hardware and software essential to the functionality of the product represents the majority of the arrangement consideration and is recognized at the time of product delivery, provided the other conditions for revenue recognition have been met. Revenue allocated to free software services provided through the Company's online dashboard and mobile apps as well as revenue allocated to the right to receive future unspecified software updates is deferred and recognized on a straight-line basis over the product's estimated usage period of two years. Licensing Income. The Company previously had agreements with certain customers to provide smartwatch technology, design, support and procurement, which expired in fiscal year 2023. Disaggregation of Revenue. The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2023 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 456,745 $ 296,133 $ 260,244 $ 1,955 $ 1,015,077 Smartwatches 37,660 26,251 17,038 — 80,949 Total watches $ 494,405 $ 322,384 $ 277,282 $ 1,955 $ 1,096,026 Leathers 104,760 25,877 27,790 — 158,427 Jewelry 33,367 78,946 19,097 — 131,410 Other 8,247 10,151 4,029 4,094 26,521 Consolidated $ 640,779 $ 437,358 $ 328,198 $ 6,049 $ 1,412,384 Timing of Revenue Recognition Revenue recognized at a point in time $ 640,191 $ 436,610 $ 327,747 $ 4,677 $ 1,409,225 Revenue recognized over time 588 748 451 1,372 3,159 Consolidated $ 640,779 $ 437,358 $ 328,198 $ 6,049 $ 1,412,384 Fiscal Year 2022 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 518,995 $ 354,799 $ 281,550 $ 3,545 $ 1,158,889 Smartwatches 65,649 53,239 32,712 2 151,602 Total watches $ 584,644 $ 408,038 $ 314,262 $ 3,547 $ 1,310,491 Leathers 115,300 29,414 33,828 — 178,542 Jewelry 35,695 93,614 24,796 — 154,105 Other 8,388 10,277 4,714 15,922 39,301 Consolidated $ 744,027 $ 541,343 $ 377,600 $ 19,469 $ 1,682,439 Timing of Revenue Recognition Revenue recognized at a point in time $ 742,436 $ 540,465 $ 377,107 $ 7,350 $ 1,667,358 Revenue recognized over time 1,591 878 493 12,119 15,081 Consolidated $ 744,027 $ 541,343 $ 377,600 $ 19,469 $ 1,682,439 Fiscal Year 2021 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 531,392 $ 396,787 $ 359,266 $ 1,054 $ 1,288,499 Smartwatches 110,726 74,888 38,261 24 223,899 Total watches $ 642,118 $ 471,675 $ 397,527 $ 1,078 $ 1,512,398 Leathers 95,197 31,809 30,636 — 157,642 Jewelry 41,350 95,995 21,500 — 158,845 Other 7,258 10,738 5,494 17,661 41,151 Consolidated $ 785,923 $ 610,217 $ 455,157 $ 18,739 $ 1,870,036 Timing of Revenue Recognition Revenue recognized at a point in time $ 784,287 $ 608,946 $ 454,558 $ 8,328 $ 1,856,119 Revenue recognized over time 1,636 1,271 599 10,411 13,917 Consolidated $ 785,923 $ 610,217 $ 455,157 $ 18,739 $ 1,870,036 Contract Balances. As of December 30, 2023, the Company had no material contract assets on the consolidated balance sheets and no deferred contract costs. The Company had contract liabilities of (i) $0.0 million and $0.8 million as of December 30, 2023 and December 31, 2022, respectively, related to remaining performance obligations on licensing income, (ii) $1.7 million and $3.7 million as of December 30, 2023 and December 31, 2022, respectively, primarily related to remaining performance obligations on wearable technology products and (iii) $2.7 million and $3.1 million as of December 30, 2023 and December 31, 2022, respectively, related to gift cards issued. Shipping and Handling Fees. The Company accounts for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): At Fiscal Year End 2023 2022 Components and parts $ 18,931 $ 20,998 Finished goods 233,903 355,030 Inventories $ 252,834 $ 376,028 |
Warranty Liabilities
Warranty Liabilities | 12 Months Ended |
Dec. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liabilities | Warranty Liabilities The Company's warranty liabilities are primarily related to watch products and are included in accrued expenses—other in the consolidated balance sheets. The Company's watch products are covered by limited warranties of various lengths against defects in materials or workmanship. The Company's warranty liability is estimated using historical warranty repair expense. As changes occur in sales volumes and warranty costs, the warranty accrual is adjusted as necessary. Due to the nature of smartwatch products, their warranty costs are usually more than traditional products. A shift in product mix from smartwatch to traditional products generally results in a decrease in the Company's warranty liabilities. Warranty liability activity consisted of the following (in thousands): Fiscal Year 2023 2022 2021 Beginning balance $ 13,623 $ 19,159 $ 21,916 Settlements in cash or kind (6,956) (8,630) (10,263) Warranties issued and adjustments to preexisting warranties (1) 3,455 3,094 7,506 Ending balance $ 10,122 $ 13,623 $ 19,159 ____________________________________________ (1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): At Fiscal Year End 2023 2022 Prepaid royalties $ 17,143 $ 34,114 Prepaid taxes 34,917 36,081 Current income tax receivable 56,491 52,618 Other receivables 824 1,488 Forward contracts 339 2,783 Inventory returns 9,757 10,833 Property held for sale 9,394 — Short term deposits 568 1,786 Other 23,284 24,710 Prepaid expenses and other current assets $ 152,717 $ 164,413 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment—net consisted of the following (in thousands): At Fiscal Year End 2023 2022 Land $ 1,004 $ 4,180 Buildings 7,589 23,404 Machinery and equipment 36,046 36,654 Furniture and fixtures 68,467 73,721 Computer equipment and software 193,604 198,206 Leasehold improvements 131,502 153,161 Construction in progress 3,720 5,728 441,932 495,054 Less accumulated depreciation and amortization 384,688 415,172 Property, plant and equipment-net $ 57,244 $ 79,882 |
Intangible and Other Assets
Intangible and Other Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets | Intangible and Other Assets Intangible and other assets-net consisted of the following (in thousands): 2023 2022 At Fiscal Year End Useful Gross Accumulated Gross Accumulated Intangibles-subject to amortization: Trademarks 10 yrs. $ 3,978 $ 3,256 $ 3,728 $ 3,243 Customer lists 5 - 10 yrs. — — 279 266 Patents 3 - 20 yrs. 850 546 867 537 Trade name 6 yrs. 4,502 3,189 4,502 2,439 Other 7 - 20 yrs. 341 236 342 195 Total intangibles-subject to amortization 9,671 7,227 9,718 6,680 Intangibles-not subject to amortization: Trade names 8,919 8,876 Other assets: Other deposits 16,168 16,487 Deferred tax asset-net 21,426 17,262 Restricted cash 4,309 5,243 Debt issuance costs 2,490 3,124 Other 3,340 1,969 Total other assets 47,733 44,085 Total intangible and other assets $ 66,323 $ 7,227 $ 62,679 $ 6,680 Total intangible and other assets-net $ 59,096 $ 55,999 Amortization expense for intangible assets was $0.9 million, $2.5 million, and $3.4 million for fiscal years 2023, 2022 and 2021. Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization 2024 $ 924 2025 733 2026 142 2027 124 2028 118 Thereafter 403 |
Derivatives and Risk Management
Derivatives and Risk Management | 12 Months Ended |
Dec. 30, 2023 | |
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 may enter into forward contracts for up to 85% of its forecasted purchases to manage fluctuations in global currencies that will ultimately be used to settle such U.S. dollar denominated inventory purchases. Additionally, the Company may enter 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. For a derivative instrument that is designated and qualifies as a cash flow hedge, 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. As of December 30, 2023, the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge the future payments of intercompany inventory transactions (in millions): Functional Currency Contract Currency Type Amount Type Amount Euro 50.9 U.S. dollar 56.3 Canadian dollar 25.3 U.S. dollar 19.0 Mexican peso 121.1 U.S. dollar 6.8 British pound 4.5 U.S. dollar 5.7 Japanese yen 395.5 U.S. dollar 3.0 Australian dollar 3.8 U.S. dollar 2.5 U.S. dollar 3.5 Japanese Yen 480.0 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 December 30, 2023, the Company had non-designated forward contracts of $1.5 million on 27.1 million rand associated with a South African rand-denominated foreign subsidiary. As of December 31, 2022, the Company had non-designated forward contracts of $0.7 million on 12.1 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 fiscal years 2023, 2022 and 2021 are set forth below (in thousands): Fiscal Year 2023 2022 2021 Cash flow hedges: Forward contracts $ (708) $ 12,176 $ 5,868 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ (708) $ 12,176 $ 5,868 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 fiscal years 2023, 2022 and 2021 (in thousands): Derivative Instruments Consolidated Effect of Derivative Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Forward contracts designated as cash flow hedging instruments Cost of sales Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ (1,001) $ 10,789 $ 2,429 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 1,002 $ 3,334 $ (55) Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 83 $ 128 $ 37 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 consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands): Asset Derivatives Liability Derivatives December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Consolidated Fair Value Consolidated Fair Value Consolidated Fair Value Consolidated Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 339 Prepaid expenses and other current assets $ 2,783 Accrued expenses-other $ 1,044 Accrued expenses-other $ 2,659 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets — Accrued expenses-other 7 Accrued expenses-other 16 Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 20 Intangible and other assets-net 112 Other long-term liabilities 28 Other long-term liabilities 318 Total $ 359 $ 2,895 $ 1,079 $ 2,993 The following table summarizes the effects of the Company's derivative instruments on earnings (in thousands): Effect of Derivative Instruments Fiscal Year 2023 Fiscal Year 2022 Cost of Sales Other Income (Expense)-net Cost of Sales Other Income (Expense)-net Total amounts of income and expense line items presented in the consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded $ 732,803 $ 8,665 $ 851,760 $ (1,416) Gain (loss) on cash flow hedging relationships: Forward contracts designated as cash flow hedging instruments: Total gain (loss) reclassified from other comprehensive income (loss) (1,001) 1,002 10,789 3,334 Forward contracts not designated as cash flow hedging instruments: Total gain (loss) recognized in income — 83 — 128 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2023 | |
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. 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 December 30, 2023 (in thousands): Fair Value at December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 359 $ — $ 359 Total $ — $ 359 $ — $ 359 Liabilities: Contingent consideration $ — $ — $ 586 $ 586 Forward contracts — 1,079 — 1,079 Total $ — $ 1,079 $ 586 $ 1,665 The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value at December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 2,895 $ — $ 2,895 Total $ — $ 2,895 $ — $ 2,895 Liabilities: Contingent consideration $ — $ — $ 3,630 $ 3,630 Forward contracts — 2,993 — 2,993 Total $ — $ 2,993 $ 3,630 $ 6,623 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. As of December 30, 2023, the Company's senior notes (as defined in Note 4— Debt), excluding unamortized debt issuance costs, was recorded at cost and had a carrying value of $150.0 million and had a fair value of approximately $92.5 million. The fair value of the Company's senior notes was based on Level 1 inputs. The Company's revolving credit agreement (as defined in Note 4—Debt) was recorded at cost and had a carrying value of $62.1 million and had a fair value of approximately $49.6 million. The fair value of the Company's revolving credit agreement was based on Level 2 inputs. Operating lease right-of-use assets with a carrying amount of $4.3 million and property, plant and equipment—net with a carrying amount of $1.1 million related to retail store leasehold improvements and fixturing were written down to a fair value of $2.7 million and $0.5 million, respectively, resulting in total pre-tax impairment charges of $2.2 million for fiscal year 2023. The fair values of operating lease right-of-use ("ROU") assets and fixed assets related to retail stores were determined using Level 3 inputs, including forecasted cash flows and discount rates. Of the $2.2 million impairment expense, $1.5 million and $0.7 million were recorded in long-lived asset impairments in the Europe and Americas segments, respectively. In fiscal year 2022, operating lease right-of-use assets with a carrying amount of $5.7 million and property, plant and equipment—net with a carrying amount of $0.8 million related to retail store leasehold improvements, fixturing and shop-in-shops were written down to a fair value of $3.6 million and $0.4 million, respectively, resulting in total pre-tax impairment charges of $2.5 million. Of the $2.5 million impairment expense, $1.3 million, $0.7 million and $0.4 million were recorded in long-lived asset impairments in the Europe, Americas and Asia segments, respectively, and $0.1 million was recorded in restructuring charges in the Europe segment. |
Debt
Debt | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consisted of the following, excluding finance lease obligations, (in millions): December 30, 2023 December 31, 2022 Revolving facility $ 62.1 $ 73.0 Notes (1) 150.0 150.0 Other international 0.5 0.3 Total debt $ 212.6 $ 223.3 Less current portion 0.5 0.3 Long-term debt $ 212.1 $ 223.0 ___________________________________________ (1) Excludes debt issuance costs of $5.1 million and $6.9 million at December 30, 2023 and December 31, 2022, respectively. U.S.-Based. On September 26, 2019, the Company and Fossil Partners L.P., as the U.S. borrowers, and Fossil Group Europe GmbH, Fossil Asia Pacific Limited, Fossil (Europe) GmbH, Fossil (UK) Limited and Fossil Canada Inc., as the non-U.S. borrowers, certain other subsidiaries of the Company from time to time party thereto designated as borrowers, and certain subsidiaries of the Company from time to time party thereto as guarantors, entered into a $275.0 million secured asset-based revolving credit agreement (the "Revolving Facility") with JPMorgan Chase Bank, N.A. as administrative agent (the "ABL Agent"), J.P. Morgan AG, as French collateral agent, JPMorgan Chase Bank, N.A., Citizens Bank, N.A. and Wells Fargo Bank, National Association as joint bookrunners and joint lead arrangers, and Citizens Bank, N.A. and Wells Fargo Bank, National Association, as co-syndication agents and each of the lenders from time to time party thereto (the "ABL Lenders"). On November 8, 2022 the Company entered into Amendment No. 4 (the "Amendment”) to the Revolving Facility. The Amendment, among other things, (i) extended the maturity date of the credit facility to November 8, 2027 (provided, that if the Company has any indebtedness in an amount in excess of $35 million that matures prior to November 8, 2027, the maturity date of the credit facility shall be the 91st day prior to the maturity date of such other indebtedness) and (ii) changed the calculation methodology of the borrowing base to include the value of certain of the Company’s intellectual property in such methodology and to provide for seasonal increases to certain advance rates. In November 2021, the Company sold $150.0 million aggregate principal amount of 7.00% senior notes due 2026 (the "Notes"), generating net proceeds of approximately $141.7 million. The Notes were issued pursuant to an indenture (the "Base Indenture") and a first supplemental indenture (the "First Supplemental Indenture" and, together with the Base Indenture, the "Indenture") with The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"). The Notes are general unsecured obligations of the Company and rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness, and will rank senior in right of payment to the Company’s future subordinated indebtedness, if any. The Notes are effectively subordinated to all of the Company’s existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and the Notes are structurally subordinated to all existing and future indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries (excluding any amounts owed by such subsidiaries to the Company). The Notes bear interest at the rate of 7.00% per annum. Interest on the Notes is payable quarterly in arrears on February 28, May 31, August 31 and November 30 of each year. The Notes mature on November 30, 2026. The Company may redeem the Notes for cash in whole or in part at any time at its option. On and after November 30, 2023, the Company may redeem the Notes at the following prices: (i) after November 30, 2023 and prior to November 30, 2024, at a price equal to $25.50 per $25.00 principal amount of Notes, (ii) on or after November 30, 2024 and prior to November 30, 2025, at a price equal to $25.25 per $25.00 principal amount of Notes and (iii) on or after November 30, 2025, at a price equal to $25.00 per $25.00 principal amount of Notes, plus (in each case noted above) accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Indenture contains customary events of default and cure provisions. If an event of default (other than an event of default of the type described in the following sentence) occurs and is continuing with respect to the Notes, the Trustee may, and at the direction of the registered holders of at least 25% in aggregate principal amount of the outstanding debt securities of the Notes shall, declare the principal amount plus accrued and unpaid interest, premium and additional amounts, if any, on the Notes to be due and payable immediately. If an event of default relating to certain events of bankruptcy, insolvency or reorganization of the Company occurs, the principal amount plus accrued and unpaid interest, and premium, if any, on the Notes will become immediately due and payable without any action on the part of the Trustee or any holder of the Notes. The Revolving Facility provides that the ABL Lenders may extend revolving loans in an aggregate principal amount not to exceed $225.0 million at any time outstanding (the “Revolving Credit Commitment”), of which up to $125.0 million is available under a U.S. facility, an aggregate of $80.0 million is available under a European facility, $10.0 million is available under a Hong Kong facility, $5.0 million is available under a French facility, and $5.0 million is available under a Canadian facility, in each case, subject to the borrowing base availability limitations described below. The Revolving Facility also includes an up to $45.0 million subfacility for the issuance of letters of credit (the “Letters of Credit”). The French facility includes a $1.0 million subfacility for swingline loans, and the European facility includes a $7.0 million subfacility for swingline loans. The Revolving Facility is subject to a line cap equal to the lesser of the total Revolving Credit Commitment and the aggregate borrowing bases under the U.S. facility, the European facility, the Hong Kong facility, the French facility and the Canadian facility. Loans under the Revolving Facility may be made in U.S. dollars, Canadian dollars, euros, Hong Kong dollars or pounds sterling. The Revolving Facility is an asset-based facility, in which borrowing availability is subject to a borrowing base equal to: (a) with respect to the Company, the sum of (i) the lesser of (x) 90% of the appraised net orderly liquidation value of eligible U.S. finished goods inventory and (y) 65% of the lower of cost or market value of eligible U.S. finished goods inventory, plus (ii) 85% of the eligible U.S. accounts receivable, plus (iii) 90% of eligible U.S. credit card accounts receivable, plus (iv) the lesser of (x) 40% of the appraised net orderly liquidation value of eligible U.S. intellectual property and (y) $20.0 million, minus (iv) the aggregate amount of reserves, if any, established by the ABL Agent; (b) with respect to each non-U.S. borrower (except for the French Borrower), the sum of (i) the lesser of (x) 90% of the appraised net orderly liquidation value of eligible foreign finished goods inventory of such non-U.S. borrower and (y) 65% of the lower of cost or market value of eligible foreign finished goods inventory of such non-U.S. borrower, plus (ii) 85% of the eligible foreign accounts receivable of such non-U.S. borrower, minus (iii) the aggregate amount of reserves, if any, established by the ABL Agent; and (c) with respect to the French Borrower, (i) 85% of eligible French accounts receivable minus (ii) the aggregate amount of reserves, if any, established by the ABL Agent. Not more than 60% of the aggregate borrowing base under the Revolving Facility may consist of the non-U.S. borrowing bases. The above advance rates (other than the advance rates with respect to intellectual property) are seasonally increased by 5% (e.g. from 90% to 95%) during the period commencing on the date of delivery of the borrowing base certificate with respect to the second fiscal month of the Company and ending on the last day of the period covered by the borrowing base certificate delivered with respect to the fifth fiscal month of the Company. The Revolving Facility also includes a commitment fee, payable quarterly in arrears, of 0.250% or 0.375% determined by reference to the average daily unused portion of the overall commitment under the Revolving Facility. The ABL Borrowers will pay the ABL Agent, on the account of the issuing ABL Lenders, an issuance fee of 0.125% for any issued Letters of Credit. The ABL Borrowers have the right to request an increase to the commitments under the Revolving Facility or any subfacility in an aggregate principal amount not to exceed $75.0 million in increments no less than $10.0 million, subject to certain terms and conditions as defined in the Revolving Facility. The Revolving Facility is secured by guarantees by the Company and certain of its domestic subsidiaries. Additionally, the Company and such subsidiaries have granted liens on all or substantially all of their assets in order to secure the obligations under the Revolving Facility. In addition, the Swiss Borrower, the Hong Kong Borrower, the French Borrower, the German Borrower and the Canadian Borrower, and the other non-U.S. borrowers from time to time party to the Revolving Facility are required to enter into security instruments with respect to all or substantially all of their assets that can be pledged under applicable local law, and certain of their respective subsidiaries may guarantee the respective non-U.S. obligations under the Revolving Facility. The Revolving Facility contains customary affirmative and negative covenants and events of default, such as compliance with annual audited and quarterly unaudited financial statements disclosures. Upon an event of default, the ABL Agent will have the right to declare the revolving loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced, subject to cure periods and grace periods set forth in the Revolving Facility. The Company had payments net of borrowings of $10.9 million under the Revolving Facility during fiscal year 2023. As of December 30, 2023, the Company had available borrowing capacity of approximately $64.0 million under the Revolving Facility. As of December 30, 2023, the Company had unamortized debt issuance costs of $5.1 million recorded in long-term debt and $2.5 million recorded in intangible and other assets-net on the Company's consolidated balance sheets. The Company incurred $10.5 million and $5.6 million of interest expense related to the Notes and Revolving Facility, respectively, during fiscal year 2023. The Company incurred approximately $2.4 million of interest expense related to the amortization of debt issuance costs during fiscal year 2023. At December 30, 2023, the Company was in compliance with all debt covenants related to its credit facilities. Foreign-Based. Fossil South Africa entered into a 20 million South African rand short-term note with First National Bank (the "Fossil South Africa Note") that is used for working capital purposes. The Fossil South Africa Note bears interest at the bank's prime rate, which was 10.5% as of year end 2023, plus 0.5%. The Fossil South Africa note is reviewed annually for renewal. South African rand-based borrowings, in U.S. dollars, under the Fossil South Africa Note were approximately $0.5 million as of December 30, 2023 . The Company's debt as of December 30, 2023, excluding finance lease obligations, matures as follows (in millions): Less than 1 Year $ 0.5 Year 2 — Year 3 212.1 Year 4 — Year 5 — Principal amounts repayable 212.6 Debt issuance costs (5.1) Total debt outstanding $ 207.5 |
Other Income (Expense)_Net
Other Income (Expense)—Net | 12 Months Ended |
Dec. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense)—Net | Other Income (Expense)—Net Other income (expense)—net consisted of the following (in thousands): Fiscal Year 2023 2022 2021 Interest income $ 3,184 $ 772 $ 407 Contingent consideration remeasurement 348 (2,363) (347) Equity in losses of unconsolidated investment (11) (132) (349) Extinguishment of debt — (1,060) (13,005) Net currency (losses) gains 3,023 (218) (4,016) Other net gains 2,121 1,585 2,810 Other income (expense) - net $ 8,665 $ (1,416) $ (14,500) |
Taxes
Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities were (in thousands): Fiscal Year 2023 2022 Deferred income tax assets: Inventory $ 1,940 $ 2,985 Compensation 6,368 7,936 Property, plant and equipment 4,611 2,120 Trade names and customer lists 2,489 3,819 Goodwill 6,712 8,867 Foreign accruals 6,785 4,538 Loss carryforwards 128,055 79,130 Tax credit carryforwards 11,134 5,717 Capitalized research and development 6,882 6,066 Interest disallowance 15,143 12,701 Lease liabilities 40,633 47,354 Other 15,207 15,862 Deferred income tax assets total $ 245,959 $ 197,095 Deferred income tax liabilities: Right-of-use assets (32,531) (36,821) Other (97) (281) Deferred income tax liabilities total $ (32,628) $ (37,102) Valuation allowance (192,603) (143,347) Net deferred income tax assets $ 20,728 $ 16,646 Deferred income tax assets - net $ 21,426 $ 17,262 Deferred income tax liabilities - net (698) (616) Net deferred income tax assets $ 20,728 $ 16,646 Operating Loss Carryforwards. At December 30, 2023, the consolidated balance sheets included $74.1 million of deferred tax assets for net operating losses of foreign subsidiaries. The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2024 through 2028 $ 29,334 Expires 2029 through 2033 86,962 Expires 2034 through 2038 37,126 Expires 2039 through 2043 102,217 Indefinite 64,770 Total loss carryforwards $ 320,409 At December 30, 2023, the consolidated balance sheets included $15.5 million of deferred tax assets for state income tax net operating losses. The state apportioned amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2024 through 2028 $ 7,975 Expires 2029 through 2033 26,267 Expires 2034 through 2038 49,802 Expires 2039 through 2043 124,558 Indefinite 64,326 Total loss carryforwards $ 272,928 At December 30, 2023, the consolidated balance sheets included $38.5 million of deferred tax assets for federal income tax net operating losses. In the U.S., federal income tax net operating losses can be carried forward indefinitely, but are limited to 80% of taxable income. The following table identifies income (loss) before income taxes for the Company's U.S. and non-U.S. based operations for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 U.S. $ (130,620) $ (43,927) $ (32,423) Non-U.S. (25,517) 21,801 85,474 Total $ (156,137) $ (22,126) $ 53,051 The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 Current provision: U.S. federal $ (3,798) $ 5,901 $ 1,714 Non-U.S 8,315 9,944 17,027 State and local (120) (98) (274) Total current 4,397 15,747 18,467 Deferred provision (benefit): Non-U.S (3,875) 5,653 7,960 Total deferred (3,875) 5,653 7,960 Provision for income taxes $ 522 $ 21,400 $ 26,427 A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows: Fiscal Year 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Permanent differences 0.1 (4.9) (2.5) State, net of federal tax benefit 2.3 8.6 (2.0) Foreign rate differential 1.8 21.5 (3.8) Withholding taxes (2.0) (19.3) 7.5 GILTI tax-net of foreign tax credits — — 5.7 U.S. tax on foreign income-net of foreign tax credits 0.3 — — Income tax contingencies 0.4 (4.8) 3.9 Federal Interest on IRS Refund 2.5 — — Valuation allowances (32.5) (110.6) 31.9 R&D/Foreign Tax Credits 3.5 — (5.6) Deficiencies (Benefits) on employee stock awards (0.6) (2.7) (0.3) APB23 Assertion (0.1) 0.6 (6.9) Return to provision true-up 2.7 4.8 — Non deductible foreign equity awards (0.2) (2.0) 0.8 Non deductible officer compensation (0.1) (3.4) 1.0 Foreign currency hedges — 1.2 0.7 Adjustments related to intercompany — (5.9) 0.4 Other 0.6 (0.8) (2.0) Provision for income taxes (0.3) % (96.7) % 49.8 % The fiscal year 2023 effective tax rate was unfavorably impacted by foreign withholding tax and valuation allowances on deferred tax assets, partially offset by favorable benefit from the accrual of interest on tax receivables. The Company records a valuation allowance against its deferred tax assets when recovery of those amounts on a jurisdictional basis is not more likely than not. The Company's U.S. valuation allowance analysis was increased by $35.7 million and the foreign valuation allowance on NOL's and deferred tax assets was increased by $13.5 million as compared to December 31, 2022. The total valuation allowance of $192.6 million at December 30, 2023 was comprised of $111.3 million and $81.3 million attributable to the U.S. and foreign operations, respectively. The Company will not indefinitely reinvest $160.3 million of previously taxed and undistributed earnings and profits of its foreign subsidiaries as of December 30, 2023. Since there will be no additional federal income tax when these amounts are repatriated, the Company has only accrued tax on foreign exchange gains with an offsetting valuation allowance. Deferred U.S. federal and state income taxes and foreign taxes are not recorded on the remaining $501.3 million of undistributed earnings and profits of foreign subsidiaries where management plans to continue reinvesting these earnings outside the U.S. As the majority of these earnings have previously been taxed in the U.S., the distribution of the earnings considered indefinitely reinvested would generally be subject only to local country withholding and U.S. state income taxes when distributed, the amount of which is not material. The total amount of unrecognized tax benefits, excluding interest and penalties that would favorably impact the effective tax rate in future periods if recognized, was $23.6 million, $24.0 million and $24.8 million for fiscal years 2023, 2022 and 2021, respectively. The Company filed amended income tax returns for 2014-2017 under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which included a provision for the carryback of U.S. NOLs. The IRS is reviewing the Company’s 2019 and 2020 U.S. tax returns and resulting net operating losses as well as the tax returns for 2014-2017 which are the carryback years. The Company has received the income tax refund for the 2019 U.S. tax NOL carryback and expects to receive a tax refund of $56.5 million (including interest) for the 2020 U.S. tax NOL carryback in 2024. Fiscal years 2014-2022 remain open for federal income tax examination. The Company is also subject to examinations in various state and foreign jurisdictions for its 2013-2022 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 from December 30, 2023. As of December 30, 2023, the Company had recorded $9.6 million of unrecognized tax benefits, excluding interest and penalties, for positions that could be settled or not assessed 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, respectively. The total amount of accrued income tax-related interest in the Company's consolidated balance sheets was $5.1 million, of which $8.9 million is accrued interest expense and $3.8 million is accrued interest income at December 30, 2023; compared to $9.1 million of interest expense at December 31, 2022. The Company accrued no income tax-related penalties in the Company's consolidated balance sheets at December 30, 2023. The Company accrued income tax-related interest expense/(income) of $(4.0) million, $0.9 million and $1.5 million in fiscal years 2023, 2022 and 2021, respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 Balance at beginning of year $ 23,998 $ 29,833 $ 31,540 Gross increases—tax positions in prior years 214 1,069 2,266 Gross decreases—tax positions in prior years — (1,395) (3,016) Gross increases—tax positions in current year 1,006 1,275 1,120 Settlements (1,583) (5,350) (630) Lapse in statute of limitations (173) (171) (1,188) Change due to currency revaluation 177 (1,263) (259) Balance at end of year $ 23,639 $ 23,998 $ 29,833 |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased asset and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated collateralized incremental borrowing rate, which is based on the yield curve for the respective lease terms and adjusted for each lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one ten The components of lease expense were as follows (in thousands): Lease Cost Consolidated Fiscal Year 2023 Fiscal Year 2022 Operating lease cost (1) SG&A $ 72,296 $ 76,528 Short-term lease cost SG&A $ 1,145 $ 802 Variable lease cost SG&A $ 23,181 $ 27,606 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 30, 2023 December 31, 2022 Assets Operating Operating lease ROU assets $ 151,000 $ 156,947 Liabilities Current: Operating Current operating lease liabilities $ 43,565 $ 49,702 Noncurrent: Operating Long-term operating lease liabilities $ 137,644 $ 150,188 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 6.4 years 5.6 years Weighted-average discount rate: Operating leases 14.9 % 14.1 % Future minimum lease payments by year as of December 30, 2023 were as follows (in thousands): Fiscal Year Operating Leases 2024 $ 70,125 2025 50,188 2026 38,594 2027 27,775 2028 17,693 Thereafter 87,328 Total lease payments $ 291,703 Less: Interest 110,494 Total lease obligations $ 181,209 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2023 Fiscal Year 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 86,474 $ 93,245 Leased assets obtained in exchange for new operating lease liabilities 41,430 34,248 As of December 30, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced. |
Leases | Leases The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased asset and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated collateralized incremental borrowing rate, which is based on the yield curve for the respective lease terms and adjusted for each lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one ten The components of lease expense were as follows (in thousands): Lease Cost Consolidated Fiscal Year 2023 Fiscal Year 2022 Operating lease cost (1) SG&A $ 72,296 $ 76,528 Short-term lease cost SG&A $ 1,145 $ 802 Variable lease cost SG&A $ 23,181 $ 27,606 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 30, 2023 December 31, 2022 Assets Operating Operating lease ROU assets $ 151,000 $ 156,947 Liabilities Current: Operating Current operating lease liabilities $ 43,565 $ 49,702 Noncurrent: Operating Long-term operating lease liabilities $ 137,644 $ 150,188 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 6.4 years 5.6 years Weighted-average discount rate: Operating leases 14.9 % 14.1 % Future minimum lease payments by year as of December 30, 2023 were as follows (in thousands): Fiscal Year Operating Leases 2024 $ 70,125 2025 50,188 2026 38,594 2027 27,775 2028 17,693 Thereafter 87,328 Total lease payments $ 291,703 Less: Interest 110,494 Total lease obligations $ 181,209 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2023 Fiscal Year 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 86,474 $ 93,245 Leased assets obtained in exchange for new operating lease liabilities 41,430 34,248 As of December 30, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies License Agreements. The Company has various license agreements to market watches and jewelry bearing certain trademarks or incorporating certain technology owned by third parties. In accordance with these agreements, the Company incurred royalty expense of $129.5 million, $140.5 million and $157.8 million in fiscal years 2023, 2022 and 2021, respectively. These amounts are included in the Company's cost of sales or, if advertising-related, in SG&A. These license agreements have expiration dates between fiscal years 2024 and 2028 and require the Company to pay royalties ranging from 5% to 22% of defined net sales. The Company has future minimum royalty commitments through fiscal year 2028 under these license agreements as follows by fiscal year (in thousands): Fiscal Year Minimum Royalty 2024 $ 111,604 2025 16,205 2026 14,348 2027 14,348 2028 1,448 Total $ 157,953 These minimum royalty commitments do not include amounts owed under these license agreements for obligations of the Company to pay the licensors a percentage of net sales of these licensed products. Purchase Obligations. As of December 30, 2023, the Company had purchase obligations totaling $192.1 million that consisted primarily of open non-cancelable purchase orders. Asset Retirement Obligations. ASC 410, Asset Retirement and Environmental Obligations requires (i) that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made and (ii) that the associated asset retirement costs be capitalized as part of the carrying amount of the long-lived asset. The Company's asset retirement obligations relate to costs associated with the retirement of leasehold improvements under office leases and retail store leases within the Americas, Europe and Asia segments. The following table summarizes the changes in the Company's asset retirement obligations (in thousands): Fiscal Year 2023 2022 Beginning asset retirement obligation $ 11,547 $ 13,161 Additions and changes in estimate 1,356 412 Liabilities settled during the period (1,636) (1,608) Accretion expense 296 308 Currency translation 195 (726) Ending asset retirement obligations $ 11,758 $ 11,547 Litigation. The Company is occasionally subject to litigation or other legal proceedings in the normal course of its business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates. The Company does not believe 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common and Preferred Stock. The Company has 100,000,000 shares of common stock, par value $0.01 per share, authorized, with 52,487,020 and 51,836,456 shares issued and outstanding at fiscal year end 2023 and 2022, respectively. The Company has 1,000,000 shares of preferred stock, par value $0.01 per share, authorized, with none issued or outstanding at fiscal year-end 2023 and 2022. Rights, preferences and other terms of preferred stock will be determined by the Board of Directors at the time of issuance. Common Stock Repurchase Programs. Purchases of the Company's common stock have been 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. 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 have been conducted pursuant to Rule 10b‑18 of the Securities Exchange Act of 1934. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Savings Plans. The Company has a defined contribution savings plan (the "401(k) Plan") for substantially all U.S.-based full-time employees of the Company, which includes a Roth 401(k) option. The Company's common stock is one of several investment alternatives available under the 401(k) Plan. The Company has a discretionary match for the 401(k) Plan. Matching contributions made by the Company to the 401(k) Plan totaled approximately $2.5 million, $2.6 million and $2.3 million for fiscal years 2023, 2022 and 2021, respectively. The Company also has the right to make additional matching contributions not to exceed 15% of employee compensation. The Company did not make any additional matching contributions during fiscal years 2023, 2022 and 2021. Stock-Based Compensation Plans. The Company’s grants under its current stock-based compensation plans generally include: (i) stock options, restricted stock units, and performance restricted stock units for its international employees, (ii) restricted stock units for its nonemployee directors, and (iii) stock appreciation rights, performance stock appreciation rights, restricted stock, restricted stock units, and performance restricted stock units for its U.S.-based employees. As of December 30, 2023, the Company had approximately $5.6 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's stock-based compensation plans. This cost is expected to be recognized over a weighted-average period of 1.4 years. All time-based or performance-based stock appreciation rights and restricted stock units are settled in shares of the Company's common stock. Long-Term Incentive Plans. An aggregate of 3,000,000 shares of the Company's common stock were reserved for issuance pursuant to the Company's 2016 Long-Term Incentive Plan ("2016 Plan"), adopted in March 2016. Pursuant to the First Amendment to the Company’s 2016 Long-Term Incentive Plan, which was approved by our stockholders on May 23, 2018, the number of shares of the Company’s common stock authorized for issuance under the Company’s 2016 Plan was increased from 3,000,000 to 10,288,468, such additional shares consisting of (i) 5,000,000 additional shares of common stock and (ii) up to 2,288,468 shares of common stock subject to awards under the Company’s 2008 Long-Term Incentive Plan (the “2008 Plan”) that were outstanding on March 31, 2018 and, on or after March 31, 2018, are forfeited, expire or are canceled. Under the 2016 Plan, designated employees of the Company, including officers, certain contractors, and non-employee directors of the Company, are eligible to receive (i) stock options, (ii) stock appreciation rights, (iii) restricted or non-restricted stock awards, (iv) restricted stock units, (v) performance awards, (vi) cash awards, or (vii) any combination of the foregoing. The 2016 Plan is administered by The Compensation and Talent Management Committee (the "Compensation Committee"). Each award issued under the 2016 Plan terminates at the time designated by the Compensation Committee, not to exceed ten years. The current outstanding stock options, stock appreciation rights, performance stock appreciation rights, restricted stock, restricted stock units and performance restricted stock units issued under the 2016 Plan predominantly have original vesting periods of three years. Time-based or performance-based stock appreciation rights and restricted stock units are predominately settled in shares of the Company's common stock. On the date of the Company’s annual stockholders meeting, each non-employee director automatically receives restricted stock units which vest 100% on the earlier of one year from the date of grant or the date of the Company's next annual stockholders meeting, provided such director is providing services to the Company or a subsidiary of the Company on that date. Beginning with the grant in fiscal year 2021, non-employee directors may elect to defer receipt of all or a portion of the restricted stock units settled in common stock of the Company upon the vesting date. In addition, beginning in fiscal year 2021, non-employee directors may defer the cash portion of their annual fees. Each participant may also elect to have the cash portion of his or her annual fees for each calendar year treated as if invested in units of common stock of the Company. Stock Appreciation Rights. The fair value of stock appreciation rights granted under the Company's stock-based compensation plans were estimated on the date of grant using the Black-Scholes option pricing model. Expected stock price volatility is based on the historical volatility of the Company’s common stock. The risk‑free interest rate is based on the implied yield available on U.S. Treasury securities with an equivalent remaining term. The Company did not issue stock options, stock appreciation rights and performance stock appreciation rights in fiscal years 2023, 2022 and 2021. The following table summarizes stock appreciation rights activity: Stock Appreciation Rights Shares Weighted-Average Weighted-Average Aggregate in thousands in thousands Outstanding at January 2, 2021 383 $ 75.05 1.9 $ — Granted — — Exercised — — — Forfeited or expired (101) 82.57 Outstanding at January 1, 2022 282 72.34 1.5 — Granted — — Exercised — — — Forfeited or expired (181) 81.57 Outstanding at December 31, 2022 101 55.31 0.9 — Granted — — Exercised — — — Forfeited or expired (62) 59.92 Outstanding at December 30, 2023 39 47.99 0.2 — Exercisable at December 30, 2023 39 $ 47.99 0.2 $ — The aggregate intrinsic value in the table above is before income taxes and is based on the exercise price for outstanding and exercisable options/rights at December 30, 2023 and based on the fair market value of the Company's common stock on the exercise date for options/rights that were exercised during the fiscal year. Stock Appreciation Rights Outstanding and Exercisable. The following table summarizes information with respect to stock appreciation rights outstanding and exercisable at December 30, 2023: Stock Appreciation Rights Outstanding Stock Appreciation Range of Exercise Prices Number of Weighted-Average Weighted-Average Number of Weighted- in thousands in thousands $47.99 - $71.98 39 $ 47.99 0.2 39 $ 47.99 Total 39 $ 47.99 0.2 39 $ 47.99 Restricted Stock Units and Performance Restricted Stock Units. The following table summarizes restricted stock, restricted stock unit and performance restricted stock unit activity: Restricted Stock Units and Performance Restricted Stock Units Number of Weighted-Average in thousands Nonvested at January 2, 2021 1,736 $ 7.90 Granted 1,033 13.19 Vested (861) 9.80 Forfeited (68) 9.42 Nonvested at January 1, 2022 1,840 $ 9.93 Granted 1,292 10.52 Vested (936) 10.16 Forfeited (229) 10.79 Nonvested at December 31, 2022 1,967 $ 10.08 Granted 1,367 3.04 Vested (845) 8.60 Forfeited (571) 8.48 Nonvested at December 30, 2023 1,918 $ 6.19 The total fair value of shares/units vested during fiscal years 2023, 2022 and 2021 was $2.6 million, $9.4 million and $10.4 million, respectively. Other Retirement Plans. The Company maintains a defined benefit plan for its employees located in Switzerland. The plan is funded through payments to an insurance company. The payments are determined by periodic actuarial calculations. During fiscal years 2023, 2022 and 2021, the Company recorded pension gains (expenses) of $5.5 million, $0.2 million and ($0.6) million, respectively, related to this plan. The liability for the Company's defined benefit plan was $4.8 million and $4.0 million at the end of fiscal years 2023 and 2022, respectively. This liability is recorded in other long-term liabilities on the Company's consolidated balance sheets. Under French law, the Company is required to maintain a defined benefit plan for its employees located in France, which is referred to as a "retirement indemnity." The amount of the retirement indemnity is based on the employee's last salary and duration of employment with the Company. The employee's right to receive the retirement indemnity is subject to the employee remaining with the Company until retirement. During fiscal years 2023, 2022 and 2021, the Company recorded pension gains (expenses) of $0.1 million, ($46,000), and $0.1 million, respectively, for its retirement indemnity obligations. The liability for the Company's retirement indemnity was $0.9 million and $1.0 million at the end of fiscal years 2023 and 2022, respectively. This liability is recorded in other long-term liabilities on the Company's consolidated balance sheets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table summarizes supplemental cash flow information (in thousands): Fiscal Year 2023 2022 2021 Cash paid during the year for: Interest $ 27,297 $ 17,501 $ 16,078 Income taxes, net of refunds $ 20,162 $ 5,836 $ (16,695) Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 943 $ 1,039 $ 581 Additions to property, plant and equipment acquired under finance leases $ — $ — $ 9 |
Supplemental Disclosure for Acc
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) | Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) The following table illustrates changes in the balances of each component of accumulated other comprehensive income (loss), net of taxes (in thousands): December 30, 2023 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (90,681) $ 2,397 $ 11,966 $ (76,318) Other comprehensive income (loss) before reclassifications 6,775 (1,461) (6,209) (895) Tax (expense) benefit — 753 56 809 Amounts reclassed from accumulated other comprehensive income (loss) — (788) — (788) Tax (expense) benefit — 789 — 789 Total other comprehensive income (loss) 6,775 (709) (6,153) (87) Ending balance $ (83,906) $ 1,688 $ 5,813 $ (76,405) December 31, 2022 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (75,601) $ 4,344 $ 3,982 $ (67,275) Other comprehensive income (loss) before reclassifications (15,080) 11,097 8,050 4,067 Tax (expense) benefit — 1,079 (66) 1,013 Amounts reclassed from accumulated other comprehensive income (loss) — 13,145 — 13,145 Tax (expense) benefit — 978 — 978 Total other comprehensive income (loss) (15,080) (1,947) 7,984 (9,043) Ending balance $ (90,681) $ 2,397 $ 11,966 $ (76,318) January 1, 2022 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (61,178) $ 850 $ 1,428 $ (58,900) Other comprehensive income (loss) before reclassifications (14,423) 5,860 2,859 (5,704) Tax (expense) benefit — 8 (305) (297) Amounts reclassed from accumulated other comprehensive income (loss) — 2,374 — 2,374 Tax (expense) benefit — — — — Total other comprehensive income (loss) (14,423) 3,494 2,554 (8,375) Ending balance $ (75,601) $ 4,344 $ 3,982 $ (67,275) |
Major Customer, Segment and Geo
Major Customer, Segment and Geographic Information | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Major Customer, Segment and Geographic Information | Major Customer, Segment and Geographic Information Major Customer Wholesale customers of the Company consist principally of major department stores and specialty retail stores located throughout the world. No individual customer accounts for 10% or more of the Company's net sales. 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 (including Hong Kong, Macau and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea 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 (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes peripheral revenue generating activities from factories and intellectual property 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 that 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): Fiscal Year 2023 Net Sales Operating Depreciation Long-term Total Assets Americas $ 640,779 $ 82,746 $ 3,734 $ 72,512 $ 266,691 Europe 437,358 40,962 4,907 76,115 213,929 Asia 328,198 38,162 2,508 58,192 191,886 Corporate 6,049 (304,894) 13,279 60,521 305,524 Consolidated $ 1,412,384 $ (143,024) $ 24,428 $ 267,340 $ 978,030 Fiscal Year 2022 Net Sales Operating Depreciation Long-term Total Assets Americas $ 744,027 $ 116,401 $ 4,834 $ 84,247 $ 343,556 Europe 541,343 91,087 5,856 86,200 269,097 Asia 377,600 52,090 3,071 48,054 206,925 Corporate 19,469 (261,051) 8,870 74,327 418,550 Consolidated $ 1,682,439 $ (1,473) $ 22,631 $ 292,828 $ 1,238,128 Fiscal Year 2021 Net Sales Operating Depreciation Long-term Total Assets Americas $ 785,923 $ 157,012 $ 6,227 $ 91,840 $ 332,822 Europe 610,217 109,964 9,000 102,437 329,579 Asia 455,157 70,949 3,969 60,373 215,611 Corporate 18,739 (245,288) 9,912 91,314 490,707 Consolidated $ 1,870,036 $ 92,637 $ 29,108 $ 345,964 $ 1,368,719 The following table shows revenue for each class of similar products for fiscal years 2023, 2022 and 2021 (in thousands): Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net Sales Percentage Net Sales Percentage Net Sales Percentage Watches: Traditional watches $ 1,015,077 71.9 % $ 1,158,889 68.9 % $ 1,288,499 68.9 % Smartwatches 80,949 5.7 151,602 9.0 223,899 12.0 Total watches $ 1,096,026 77.6 % $ 1,310,491 77.9 % $ 1,512,398 80.9 % Leathers 158,427 11.2 178,542 10.6 157,642 8.4 Jewelry 131,410 9.3 154,105 9.2 158,845 8.5 Other 26,521 1.9 39,301 2.3 41,151 2.2 Total $ 1,412,384 100.0 % $ 1,682,439 100.0 % $ 1,870,036 100.0 % Geographic Information Net sales and long-term assets related to the Company's operations in the U.S., Europe, Asia and all other international markets were as follows (in thousands): Fiscal Year 2023 Net Sales (1) Long-term United States $ 514,666 $ 107,085 Europe 438,148 (2) 85,575 Asia 330,869 (3) 64,211 All other international 128,701 10,469 Consolidated $ 1,412,384 $ 267,340 Fiscal Year 2022 Net Sales (1) Long-term United States $ 619,981 $ 133,100 Europe 543,585 (2) 96,365 Asia 381,845 (3) 53,050 All other international 137,028 10,313 Consolidated $ 1,682,439 $ 292,828 Fiscal Year 2021 Net Sales (1) Long-term United States $ 682,900 $ 150,119 Europe 614,249 (2) 117,713 Asia 458,241 (3) 65,693 All other international 114,646 12,439 Consolidated $ 1,870,036 $ 345,964 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity (including exports). (2) Net sales from Germany (including exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $173.3 million, $194.1 million and $237.1 million in fiscal years 2023, 2022 and 2021, respectively. (3) Net sales from China (including Hong Kong, Macau and Taiwan and exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $140.4 million, $174.2 million and $261.4 million in fiscal years 2023, 2022 and 2021, respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the first quarter of fiscal year 2023, the Company announced its Transform and Grow plan ("TAG") designed to reduce operating costs, improve operating margins, and advance the Company’s commitment to profitable growth. The Company has now expanded the scope and duration of TAG to focus on a more comprehensive review of its global business operations. The expansion of TAG will put greater emphasis on initiatives to exit or minimize certain product offerings, brands and distribution, and to strengthen gross margin and increase the level of operating expense efficiencies. TAG is estimated to generate approximately $300 million of annualized operating income benefits by the end of 2025. The Company estimates approximately $100 million to $120 million in total charges over the duration of TAG and estimates approximately $35 million of charges in fiscal year 2024. Aided by these measures, the Company's long-term goal is to achieve adjusted gross margins in the low to mid 50% range and adjusted operating margins of approximately 10%. The following table shows a summary of TAG plan charges (in thousands): Fiscal Year Fiscal Year 2023 Cost of sales $ 5,537 Selling, general and administrative expenses 43,279 Consolidated $ 48,816 The following table shows a rollforward of the accrued liability related to the Company’s TAG plan (in thousands): Fiscal Year 2023 Liabilities Cash Payments Non-cash Items Liabilities December 31, 2022 Charges December 30, 2023 Stores and facilities closures $ — $ 7,245 $ — $ 7,245 $ — Professional services — 6,648 6,531 — 117 Severance and employee-related benefits — 29,386 20,951 318 8,117 Charges related to exits of certain product offerings $ — $ 5,537 $ 1,716 $ — $ 3,821 Total $ — $ 48,816 $ 29,198 $ 7,563 $ 12,055 TAG plan restructuring charges by operating segment were as follows (in thousands): 2023 Americas $ 4,582 Europe 9,812 Asia 12,519 Corporate 21,903 Consolidated $ 48,816 In fiscal year 2022, the Company completed its New World Fossil 2.0 (“NWF 2.0”) restructuring program it launched in 2019 . The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands): Fiscal Year 2023 Liabilities Cash Payments Liabilities December 31, 2022 December 30, 2023 Professional services 74 74 — Severance and employee-related benefits 2,821 2,821 — Total $ 2,895 $ 2,895 $ — Fiscal Year 2022 Liabilities Cash Payments Non-cash Items Liabilities January 1, 2022 Charges December 31, 2022 Store closures $ 300 $ 787 $ 612 $ 475 $ — Professional services 643 166 735 — 74 Severance and employee-related benefits 4,388 5,168 6,431 304 2,821 Total $ 5,331 $ 6,121 $ 7,778 $ 779 $ 2,895 Fiscal Year 2021 Liabilities Cash Payments Non-cash Items Liabilities January 2, 2021 Charges January 1, 2022 Store closures $ 240 $ 1,215 $ 500 $ 655 $ 300 Professional services 2,280 5,695 7,332 — 643 Severance and employee-related benefits 7,741 14,979 18,332 — 4,388 Total $ 10,261 $ 21,889 $ 26,164 $ 655 $ 5,331 NWF 2.0 restructuring charges by operating segment were as follows (in thousands): 2022 2021 Americas $ 234 $ 2,356 Europe 1,754 9,868 Asia 1,610 5,072 Corporate 2,523 4,593 Consolidated $ 6,121 $ 21,889 |
SCHEDULE II VALUATIONS AND QUAL
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS | SCHEDULE II FOSSIL GROUP, INC. AND SUBSIDIARIES VALUATIONS AND QUALIFYING ACCOUNTS Fiscal Years 2021, 2022 and 2023 (in thousands) Additions Deductions Classification Balance at Charged Charged to Other Accounts Actual Balance at Fiscal Year 2021: Account receivable allowances: Bad debts $ 20,774 $ 3,070 $ — $ 7,456 $ 16,388 Markdowns $ 15,613 $ 27,385 $ — $ 29,230 $ 13,768 Sales returns $ 49,826 $ 75,936 $ — $ 85,641 $ 40,121 Deferred tax asset valuation allowance $ 109,250 $ 20,535 $ (2,706) $ 4,126 $ 122,953 Fiscal Year 2022: Account receivable allowances: Bad debts $ 16,388 $ 6,305 $ — $ 8,046 $ 14,647 Markdowns $ 13,768 $ 23,736 $ — $ 29,043 $ 8,461 Sales returns $ 40,121 $ 90,092 $ — $ 94,393 $ 35,820 Deferred tax asset valuation allowance $ 122,953 $ 14,794 $ 5,599 $ — $ 143,346 Fiscal Year 2023: Account receivable allowances: Bad debts $ 14,647 $ 3,535 $ — $ 5,566 $ 12,616 Markdowns $ 8,461 $ 31,325 $ — $ 32,243 $ 7,543 Sales returns $ 35,820 $ 95,812 $ — $ 98,234 $ 33,398 Deferred tax asset valuation allowance $ 143,346 $ 50,493 $ 1,769 $ 3,005 $ 192,603 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements |
Use of Estimates | Use of Estimates is required in the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to product returns, bad debt, inventories, long-lived asset impairment, impairment of trade names, income taxes, warranty costs and litigation liabilities. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. Management estimates form the basis for making judgments about the carrying value of the assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Concentration of Risk | Concentration of Risk involves financial instruments that potentially expose the Company to concentration of credit risk and consist primarily of cash investments and accounts receivable. The Company places its cash investments with high-credit quality financial institutions and currently invests primarily in corporate debt securities and money market funds with major banks and financial institutions. Accounts receivable are generally diversified due to the number of entities comprising the Company's customer base and their dispersion across many geographic regions. The Company believes no significant concentration of credit risk exists with respect to these cash investments and accounts receivable. A significant portion of sales of the Company's products are supplied by manufacturers located outside of the U.S., primarily in Asia. While the Company is not dependent on any single manufacturer outside the U.S., the Company could be adversely affected by political, economic or other disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. |
Cash Equivalents | Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Lease | Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company's incremental borrowing rate, adjusted for the lease term and lease country, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and are reduced by lease incentives. Some lease terms include options to extend or terminate the lease and they are included in the measurement of the lease assets and lease liabilities if the Company is reasonably certain that those options will be exercised. Variable lease payments are expensed as incurred and include certain index-based changes in rent and certain non-lease components such as maintenance and other services provided by the lessor to the extent the charges are variable. The Company evaluates contractual arrangements at inception to determine if individual agreements are a lease or contain an identifiable lease component as defined by Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"). When evaluating contracts to determine appropriate classification and recognition under ASC 842, judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease and whether renewal or termination options are reasonably certain to be exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease agreements with lease and non-lease components are combined as a single lease component for all classes of underlying assets. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. |
Property, Plant and Equipment | Property, Plant and Equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 30 years for buildings, generally five years for machinery and equipment and furniture and fixtures and two |
Other Intangible Assets | Other Intangible Assets include trademarks, trade names, customer lists and patents. Trademarks, trade names with finite lives, customer lists and patents are amortized using the straight-line method over their estimated useful lives, which are generally three The fair value of the Company's MICHELE ® trade name was estimated using the relief from royalty method. No impairment charges were recorded to the MICHELE trade name during fiscal years 2023, 2022 or 2021. The SKAGEN ® |
Accrued Expenses | Accrued Expenses includes liabilities relating to employee compensation, operating lease liabilities, royalties, warranties, duty, gift cards, foreign exchange forward contracts ("forward contracts") and other accrued liabilities which are current in nature. |
Other Long-Term Liabilities | Other Long-Term Liabilities includes obligations relating to asset retirements, forward contracts and defined benefits relating to certain international employees and other liabilities that are not current in nature. |
Cumulative Translation Adjustment and Foreign Transaction Gains and Losses | Cumulative Translation Adjustment is included as a component of accumulated other comprehensive income (loss) and reflects the adjustments resulting from translating the financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated to U.S. dollars at fiscal year-end exchange rates. Income and expense items are translated at average monthly exchange rates. Cumulative translation adjustments remain in accumulated other comprehensive income (loss) and are reclassified into earnings in the event the related foreign subsidiary is sold or liquidated. Foreign Transaction Gains and Losses are those changes in exchange rates of currencies not considered the functional currency that affects cash flows and the related receivables or payables. The Company incurred a net foreign currency transaction gain of approximately $3.0 million for fiscal year 2023 and net foreign currency transaction losses of $0.2 million and $4.0 million for fiscal years 2022 and 2021, respectively. These net gains and losses have been included in other income (expense)—net in the Company's consolidated statements of income (loss) and comprehensive income (loss). |
Revenues | Revenues |
Cost of Sales | Cost of Sales includes raw material costs, assembly labor, assembly overhead including depreciation expense, assembly warehousing costs, shipping and handling costs related to the movement of finished goods from assembly locations to sales distribution centers and from sales distribution centers to customer locations and restructuring charges. Additionally, cost of sales includes customs duties, product packaging cost, royalty cost associated with sales of licensed products, the cost of molding and tooling and inventory shrinkage and damages. |
Operating Expenses | Operating Expenses |
Advertising Costs | Advertising Costs |
Warranty Costs | Warranty Costs |
Research and Development Costs | Research and Development Costs |
Noncontrolling Interest | Noncontrolling Interest is recognized as equity in the Company's consolidated balance sheets, is reflected in net income attributable to noncontrolling interest in the consolidated statements of income (loss) and comprehensive income (loss) and is captured within the summary of changes in equity attributable to controlling and noncontrolling interests. Noncontrolling interests represent ownership interests in the Company's subsidiaries held by third parties. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) which is reported in the consolidated statements of income (loss) and comprehensive income (loss) and consolidated statements of stockholders' equity, consists of net income and other gains and losses affecting equity that are excluded from net income. The components of other comprehensive income (loss) primarily consist of foreign currency translation gains and losses and net realized and unrealized gains and losses on the following: (i) derivatives designated as cash flow hedges and (ii) the Company's defined benefit plans. |
Earnings (Loss) Per Share ("EPS") | Earnings (Loss) Per Share ("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. |
Income Taxes | Income Taxes are provided for under the asset and liability method for temporary differences in assets and liabilities recognized for income tax and financial reporting purposes. Deferred tax assets are periodically assessed for the likelihood of whether they are more likely than not to be realized. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (i) the more likely than not recognition threshold is satisfied; (ii) the position is ultimately settled through negotiation or litigation; or (iii) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the "Tax Act") requiring the inclusion of certain foreign earnings in U.S. taxable income first applied in fiscal year 2018. The GILTI tax was accounted for as incurred under the period cost method. The Company's valuation allowance analysis is affected by various aspects of the Tax Act, including the new limitation on the deductibility of interest expense and the impact of GILTI. Those adjustments may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU"), 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this guidance on its financial statement disclosures. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The amendments in this update will require public entities to disclose significant segment expenses that are regularly provided to the Company's chief operating decision maker and included within segment profit and loss, an amount and description of its composition for other segment items, and expanded interim disclosures. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this guidance on its financial statement disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The amendments in ASU 2023-06 modify the disclosure or presentation requirements of a variety of topics in the FASB Accounting Standards Codification (the "Codification"), with the intention of clarifying or improving them and to align the requirements in the Codification with the regulations of the U.S. Securities and Exchange Commission (the "SEC”). The effective date for ASU 2023-06 varies and is determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure. ASU 2023-06 will not have an impact on the Company's financial position or results of operation. The Organization for Economic Cooperation and Development ("OECD") and over 140 countries have agreed to enact a two-pillar solution to reform the international tax rules to address the challenges arising from the globalization and digitalization of the economy. "The Pillar Two Global Anti-Base Erosion (GloBE) Rules" provide a coordinated system to ensure that multinational enterprises with revenues above 750 million euro pay a minimum effective tax rate of 15% tax on the income arising in each of the jurisdictions in which they operate. The technical aspects of the calculation are still being developed. Implementation of these rules is scheduled for 2024, at which point the Company can determine the impact on its income tax expense and effective tax rate. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination as if they had originated the contracts, as opposed to at fair value on the acquisition date. The standard is effective for business combinations after January 1, 2023. The adoption of this standard did not have an impact on the Company's consolidated financial statements or related disclosures. |
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. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash balances | The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 30, 2023, December 31, 2022 and January 1, 2022 that are presented in the consolidated statement of cash flows (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash and cash equivalents $ 117,197 $ 198,726 $ 250,844 Restricted cash included in prepaid expenses and other current assets 77 106 117 Restricted cash included in intangible and other assets-net 4,309 5,243 13,611 Cash, cash equivalents and restricted cash $ 121,583 $ 204,075 $ 264,572 |
Schedule of cash, cash equivalents, and restricted cash balances | The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 30, 2023, December 31, 2022 and January 1, 2022 that are presented in the consolidated statement of cash flows (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash and cash equivalents $ 117,197 $ 198,726 $ 250,844 Restricted cash included in prepaid expenses and other current assets 77 106 117 Restricted cash included in intangible and other assets-net 4,309 5,243 13,611 Cash, cash equivalents and restricted cash $ 121,583 $ 204,075 $ 264,572 |
Schedule of reconciliation of 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): Fiscal Year 2023 2022 2021 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (157,088) $ (44,157) $ 25,434 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 52,284 51,841 51,961 Basic EPS $ (3.00) $ (0.85) $ 0.49 Diluted EPS computation: Basic weighted average common shares outstanding 52,284 51,841 51,961 Diluted weighted average common shares outstanding 52,284 51,841 52,777 Diluted EPS $ (3.00) $ (0.85) $ 0.48 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2023 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 456,745 $ 296,133 $ 260,244 $ 1,955 $ 1,015,077 Smartwatches 37,660 26,251 17,038 — 80,949 Total watches $ 494,405 $ 322,384 $ 277,282 $ 1,955 $ 1,096,026 Leathers 104,760 25,877 27,790 — 158,427 Jewelry 33,367 78,946 19,097 — 131,410 Other 8,247 10,151 4,029 4,094 26,521 Consolidated $ 640,779 $ 437,358 $ 328,198 $ 6,049 $ 1,412,384 Timing of Revenue Recognition Revenue recognized at a point in time $ 640,191 $ 436,610 $ 327,747 $ 4,677 $ 1,409,225 Revenue recognized over time 588 748 451 1,372 3,159 Consolidated $ 640,779 $ 437,358 $ 328,198 $ 6,049 $ 1,412,384 Fiscal Year 2022 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 518,995 $ 354,799 $ 281,550 $ 3,545 $ 1,158,889 Smartwatches 65,649 53,239 32,712 2 151,602 Total watches $ 584,644 $ 408,038 $ 314,262 $ 3,547 $ 1,310,491 Leathers 115,300 29,414 33,828 — 178,542 Jewelry 35,695 93,614 24,796 — 154,105 Other 8,388 10,277 4,714 15,922 39,301 Consolidated $ 744,027 $ 541,343 $ 377,600 $ 19,469 $ 1,682,439 Timing of Revenue Recognition Revenue recognized at a point in time $ 742,436 $ 540,465 $ 377,107 $ 7,350 $ 1,667,358 Revenue recognized over time 1,591 878 493 12,119 15,081 Consolidated $ 744,027 $ 541,343 $ 377,600 $ 19,469 $ 1,682,439 Fiscal Year 2021 Americas Europe Asia Corporate Total Product Type Watches: Traditional watches $ 531,392 $ 396,787 $ 359,266 $ 1,054 $ 1,288,499 Smartwatches 110,726 74,888 38,261 24 223,899 Total watches $ 642,118 $ 471,675 $ 397,527 $ 1,078 $ 1,512,398 Leathers 95,197 31,809 30,636 — 157,642 Jewelry 41,350 95,995 21,500 — 158,845 Other 7,258 10,738 5,494 17,661 41,151 Consolidated $ 785,923 $ 610,217 $ 455,157 $ 18,739 $ 1,870,036 Timing of Revenue Recognition Revenue recognized at a point in time $ 784,287 $ 608,946 $ 454,558 $ 8,328 $ 1,856,119 Revenue recognized over time 1,636 1,271 599 10,411 13,917 Consolidated $ 785,923 $ 610,217 $ 455,157 $ 18,739 $ 1,870,036 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in thousands): At Fiscal Year End 2023 2022 Components and parts $ 18,931 $ 20,998 Finished goods 233,903 355,030 Inventories $ 252,834 $ 376,028 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty liability activity | Warranty liability activity consisted of the following (in thousands): Fiscal Year 2023 2022 2021 Beginning balance $ 13,623 $ 19,159 $ 21,916 Settlements in cash or kind (6,956) (8,630) (10,263) Warranties issued and adjustments to preexisting warranties (1) 3,455 3,094 7,506 Ending balance $ 10,122 $ 13,623 $ 19,159 ____________________________________________ (1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following (in thousands): At Fiscal Year End 2023 2022 Prepaid royalties $ 17,143 $ 34,114 Prepaid taxes 34,917 36,081 Current income tax receivable 56,491 52,618 Other receivables 824 1,488 Forward contracts 339 2,783 Inventory returns 9,757 10,833 Property held for sale 9,394 — Short term deposits 568 1,786 Other 23,284 24,710 Prepaid expenses and other current assets $ 152,717 $ 164,413 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property, plant and equipment-net | Property, plant and equipment—net consisted of the following (in thousands): At Fiscal Year End 2023 2022 Land $ 1,004 $ 4,180 Buildings 7,589 23,404 Machinery and equipment 36,046 36,654 Furniture and fixtures 68,467 73,721 Computer equipment and software 193,604 198,206 Leasehold improvements 131,502 153,161 Construction in progress 3,720 5,728 441,932 495,054 Less accumulated depreciation and amortization 384,688 415,172 Property, plant and equipment-net $ 57,244 $ 79,882 |
Intangible and Other Assets (Ta
Intangible and Other Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible and other assets-net | Intangible and other assets-net consisted of the following (in thousands): 2023 2022 At Fiscal Year End Useful Gross Accumulated Gross Accumulated Intangibles-subject to amortization: Trademarks 10 yrs. $ 3,978 $ 3,256 $ 3,728 $ 3,243 Customer lists 5 - 10 yrs. — — 279 266 Patents 3 - 20 yrs. 850 546 867 537 Trade name 6 yrs. 4,502 3,189 4,502 2,439 Other 7 - 20 yrs. 341 236 342 195 Total intangibles-subject to amortization 9,671 7,227 9,718 6,680 Intangibles-not subject to amortization: Trade names 8,919 8,876 Other assets: Other deposits 16,168 16,487 Deferred tax asset-net 21,426 17,262 Restricted cash 4,309 5,243 Debt issuance costs 2,490 3,124 Other 3,340 1,969 Total other assets 47,733 44,085 Total intangible and other assets $ 66,323 $ 7,227 $ 62,679 $ 6,680 Total intangible and other assets-net $ 59,096 $ 55,999 |
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 2024 $ 924 2025 733 2026 142 2027 124 2028 118 Thereafter 403 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding forward contracts | As of December 30, 2023, the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge the future payments of intercompany inventory transactions (in millions): Functional Currency Contract Currency Type Amount Type Amount Euro 50.9 U.S. dollar 56.3 Canadian dollar 25.3 U.S. dollar 19.0 Mexican peso 121.1 U.S. dollar 6.8 British pound 4.5 U.S. dollar 5.7 Japanese yen 395.5 U.S. dollar 3.0 Australian dollar 3.8 U.S. dollar 2.5 U.S. dollar 3.5 Japanese Yen 480.0 |
Schedule of derivatives instruments statements of financial performance and financial position, location | The effective portion of gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during fiscal years 2023, 2022 and 2021 are set forth below (in thousands): Fiscal Year 2023 2022 2021 Cash flow hedges: Forward contracts $ (708) $ 12,176 $ 5,868 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ (708) $ 12,176 $ 5,868 |
Schedule of effective portion of gains and losses on derivative instruments designated and qualifying as cash flow hedges 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 | 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 fiscal years 2023, 2022 and 2021 (in thousands): Derivative Instruments Consolidated Effect of Derivative Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Forward contracts designated as cash flow hedging instruments Cost of sales Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ (1,001) $ 10,789 $ 2,429 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 1,002 $ 3,334 $ (55) Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 83 $ 128 $ 37 |
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 consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands): Asset Derivatives Liability Derivatives December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Consolidated Fair Value Consolidated Fair Value Consolidated Fair Value Consolidated Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 339 Prepaid expenses and other current assets $ 2,783 Accrued expenses-other $ 1,044 Accrued expenses-other $ 2,659 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets — Accrued expenses-other 7 Accrued expenses-other 16 Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 20 Intangible and other assets-net 112 Other long-term liabilities 28 Other long-term liabilities 318 Total $ 359 $ 2,895 $ 1,079 $ 2,993 The following table summarizes the effects of the Company's derivative instruments on earnings (in thousands): Effect of Derivative Instruments Fiscal Year 2023 Fiscal Year 2022 Cost of Sales Other Income (Expense)-net Cost of Sales Other Income (Expense)-net Total amounts of income and expense line items presented in the consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded $ 732,803 $ 8,665 $ 851,760 $ (1,416) Gain (loss) on cash flow hedging relationships: Forward contracts designated as cash flow hedging instruments: Total gain (loss) reclassified from other comprehensive income (loss) (1,001) 1,002 10,789 3,334 Forward contracts not designated as cash flow hedging instruments: Total gain (loss) recognized in income — 83 — 128 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, 2023 (in thousands): Fair Value at December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 359 $ — $ 359 Total $ — $ 359 $ — $ 359 Liabilities: Contingent consideration $ — $ — $ 586 $ 586 Forward contracts — 1,079 — 1,079 Total $ — $ 1,079 $ 586 $ 1,665 The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value at December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 2,895 $ — $ 2,895 Total $ — $ 2,895 $ — $ 2,895 Liabilities: Contingent consideration $ — $ — $ 3,630 $ 3,630 Forward contracts — 2,993 — 2,993 Total $ — $ 2,993 $ 3,630 $ 6,623 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of components of debt excluding finance lease obligations | The Company's debt consisted of the following, excluding finance lease obligations, (in millions): December 30, 2023 December 31, 2022 Revolving facility $ 62.1 $ 73.0 Notes (1) 150.0 150.0 Other international 0.5 0.3 Total debt $ 212.6 $ 223.3 Less current portion 0.5 0.3 Long-term debt $ 212.1 $ 223.0 ___________________________________________ (1) Excludes debt issuance costs of $5.1 million and $6.9 million at December 30, 2023 and December 31, 2022, respectively. |
Schedule of maturity of debt excluding finance lease obligations | The Company's debt as of December 30, 2023, excluding finance lease obligations, matures as follows (in millions): Less than 1 Year $ 0.5 Year 2 — Year 3 212.1 Year 4 — Year 5 — Principal amounts repayable 212.6 Debt issuance costs (5.1) Total debt outstanding $ 207.5 |
Other Income (Expense)_Net (Tab
Other Income (Expense)—Net (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense)—net | Other income (expense)—net consisted of the following (in thousands): Fiscal Year 2023 2022 2021 Interest income $ 3,184 $ 772 $ 407 Contingent consideration remeasurement 348 (2,363) (347) Equity in losses of unconsolidated investment (11) (132) (349) Extinguishment of debt — (1,060) (13,005) Net currency (losses) gains 3,023 (218) (4,016) Other net gains 2,121 1,585 2,810 Other income (expense) - net $ 8,665 $ (1,416) $ (14,500) |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of the consolidated deferred tax assets and liabilities | Significant components of the consolidated deferred tax assets and liabilities were (in thousands): Fiscal Year 2023 2022 Deferred income tax assets: Inventory $ 1,940 $ 2,985 Compensation 6,368 7,936 Property, plant and equipment 4,611 2,120 Trade names and customer lists 2,489 3,819 Goodwill 6,712 8,867 Foreign accruals 6,785 4,538 Loss carryforwards 128,055 79,130 Tax credit carryforwards 11,134 5,717 Capitalized research and development 6,882 6,066 Interest disallowance 15,143 12,701 Lease liabilities 40,633 47,354 Other 15,207 15,862 Deferred income tax assets total $ 245,959 $ 197,095 Deferred income tax liabilities: Right-of-use assets (32,531) (36,821) Other (97) (281) Deferred income tax liabilities total $ (32,628) $ (37,102) Valuation allowance (192,603) (143,347) Net deferred income tax assets $ 20,728 $ 16,646 Deferred income tax assets - net $ 21,426 $ 17,262 Deferred income tax liabilities - net (698) (616) Net deferred income tax assets $ 20,728 $ 16,646 |
Schedule of the amounts and the fiscal year of expiration of loss carryforwards | The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2024 through 2028 $ 29,334 Expires 2029 through 2033 86,962 Expires 2034 through 2038 37,126 Expires 2039 through 2043 102,217 Indefinite 64,770 Total loss carryforwards $ 320,409 Expires 2024 through 2028 $ 7,975 Expires 2029 through 2033 26,267 Expires 2034 through 2038 49,802 Expires 2039 through 2043 124,558 Indefinite 64,326 Total loss carryforwards $ 272,928 |
Schedule of income before income taxes for the Company's U.S. and non-U.S. based operations | The following table identifies income (loss) before income taxes for the Company's U.S. and non-U.S. based operations for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 U.S. $ (130,620) $ (43,927) $ (32,423) Non-U.S. (25,517) 21,801 85,474 Total $ (156,137) $ (22,126) $ 53,051 |
Schedule of components of provision for income taxes | The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 Current provision: U.S. federal $ (3,798) $ 5,901 $ 1,714 Non-U.S 8,315 9,944 17,027 State and local (120) (98) (274) Total current 4,397 15,747 18,467 Deferred provision (benefit): Non-U.S (3,875) 5,653 7,960 Total deferred (3,875) 5,653 7,960 Provision for income taxes $ 522 $ 21,400 $ 26,427 |
Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective tax rate | A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows: Fiscal Year 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Permanent differences 0.1 (4.9) (2.5) State, net of federal tax benefit 2.3 8.6 (2.0) Foreign rate differential 1.8 21.5 (3.8) Withholding taxes (2.0) (19.3) 7.5 GILTI tax-net of foreign tax credits — — 5.7 U.S. tax on foreign income-net of foreign tax credits 0.3 — — Income tax contingencies 0.4 (4.8) 3.9 Federal Interest on IRS Refund 2.5 — — Valuation allowances (32.5) (110.6) 31.9 R&D/Foreign Tax Credits 3.5 — (5.6) Deficiencies (Benefits) on employee stock awards (0.6) (2.7) (0.3) APB23 Assertion (0.1) 0.6 (6.9) Return to provision true-up 2.7 4.8 — Non deductible foreign equity awards (0.2) (2.0) 0.8 Non deductible officer compensation (0.1) (3.4) 1.0 Foreign currency hedges — 1.2 0.7 Adjustments related to intercompany — (5.9) 0.4 Other 0.6 (0.8) (2.0) Provision for income taxes (0.3) % (96.7) % 49.8 % |
Schedule of reconciliation of the total amounts of unrecognized tax benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands): Fiscal Year 2023 2022 2021 Balance at beginning of year $ 23,998 $ 29,833 $ 31,540 Gross increases—tax positions in prior years 214 1,069 2,266 Gross decreases—tax positions in prior years — (1,395) (3,016) Gross increases—tax positions in current year 1,006 1,275 1,120 Settlements (1,583) (5,350) (630) Lapse in statute of limitations (173) (171) (1,188) Change due to currency revaluation 177 (1,263) (259) Balance at end of year $ 23,639 $ 23,998 $ 29,833 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Schedule of components of leases | The components of lease expense were as follows (in thousands): Lease Cost Consolidated Fiscal Year 2023 Fiscal Year 2022 Operating lease cost (1) SG&A $ 72,296 $ 76,528 Short-term lease cost SG&A $ 1,145 $ 802 Variable lease cost SG&A $ 23,181 $ 27,606 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 30, 2023 December 31, 2022 Assets Operating Operating lease ROU assets $ 151,000 $ 156,947 Liabilities Current: Operating Current operating lease liabilities $ 43,565 $ 49,702 Noncurrent: Operating Long-term operating lease liabilities $ 137,644 $ 150,188 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 6.4 years 5.6 years Weighted-average discount rate: Operating leases 14.9 % 14.1 % |
Schedule of maturity of lease liabilities | Future minimum lease payments by year as of December 30, 2023 were as follows (in thousands): Fiscal Year Operating Leases 2024 $ 70,125 2025 50,188 2026 38,594 2027 27,775 2028 17,693 Thereafter 87,328 Total lease payments $ 291,703 Less: Interest 110,494 Total lease obligations $ 181,209 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2023 Fiscal Year 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 86,474 $ 93,245 Leased assets obtained in exchange for new operating lease liabilities 41,430 34,248 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum royalty commitments under license agreements | The Company has future minimum royalty commitments through fiscal year 2028 under these license agreements as follows by fiscal year (in thousands): Fiscal Year Minimum Royalty 2024 $ 111,604 2025 16,205 2026 14,348 2027 14,348 2028 1,448 Total $ 157,953 |
Schedule of changes in the Company's asset retirement obligations | The following table summarizes the changes in the Company's asset retirement obligations (in thousands): Fiscal Year 2023 2022 Beginning asset retirement obligation $ 11,547 $ 13,161 Additions and changes in estimate 1,356 412 Liabilities settled during the period (1,636) (1,608) Accretion expense 296 308 Currency translation 195 (726) Ending asset retirement obligations $ 11,758 $ 11,547 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock options and stock appreciation rights activity | The following table summarizes stock appreciation rights activity: Stock Appreciation Rights Shares Weighted-Average Weighted-Average Aggregate in thousands in thousands Outstanding at January 2, 2021 383 $ 75.05 1.9 $ — Granted — — Exercised — — — Forfeited or expired (101) 82.57 Outstanding at January 1, 2022 282 72.34 1.5 — Granted — — Exercised — — — Forfeited or expired (181) 81.57 Outstanding at December 31, 2022 101 55.31 0.9 — Granted — — Exercised — — — Forfeited or expired (62) 59.92 Outstanding at December 30, 2023 39 47.99 0.2 — Exercisable at December 30, 2023 39 $ 47.99 0.2 $ — |
Schedule of stock options and stock appreciation rights outstanding and exercisable | The following table summarizes information with respect to stock appreciation rights outstanding and exercisable at December 30, 2023: Stock Appreciation Rights Outstanding Stock Appreciation Range of Exercise Prices Number of Weighted-Average Weighted-Average Number of Weighted- in thousands in thousands $47.99 - $71.98 39 $ 47.99 0.2 39 $ 47.99 Total 39 $ 47.99 0.2 39 $ 47.99 |
Schedule of restricted stock and restricted stock unit activity | The following table summarizes restricted stock, restricted stock unit and performance restricted stock unit activity: Restricted Stock Units and Performance Restricted Stock Units Number of Weighted-Average in thousands Nonvested at January 2, 2021 1,736 $ 7.90 Granted 1,033 13.19 Vested (861) 9.80 Forfeited (68) 9.42 Nonvested at January 1, 2022 1,840 $ 9.93 Granted 1,292 10.52 Vested (936) 10.16 Forfeited (229) 10.79 Nonvested at December 31, 2022 1,967 $ 10.08 Granted 1,367 3.04 Vested (845) 8.60 Forfeited (571) 8.48 Nonvested at December 30, 2023 1,918 $ 6.19 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | The following table summarizes supplemental cash flow information (in thousands): Fiscal Year 2023 2022 2021 Cash paid during the year for: Interest $ 27,297 $ 17,501 $ 16,078 Income taxes, net of refunds $ 20,162 $ 5,836 $ (16,695) Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 943 $ 1,039 $ 581 Additions to property, plant and equipment acquired under finance leases $ — $ — $ 9 |
Supplemental Disclosure for A_2
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in components of accumulated other comprehensive income (loss), net of taxes | The following table illustrates changes in the balances of each component of accumulated other comprehensive income (loss), net of taxes (in thousands): December 30, 2023 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (90,681) $ 2,397 $ 11,966 $ (76,318) Other comprehensive income (loss) before reclassifications 6,775 (1,461) (6,209) (895) Tax (expense) benefit — 753 56 809 Amounts reclassed from accumulated other comprehensive income (loss) — (788) — (788) Tax (expense) benefit — 789 — 789 Total other comprehensive income (loss) 6,775 (709) (6,153) (87) Ending balance $ (83,906) $ 1,688 $ 5,813 $ (76,405) December 31, 2022 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (75,601) $ 4,344 $ 3,982 $ (67,275) Other comprehensive income (loss) before reclassifications (15,080) 11,097 8,050 4,067 Tax (expense) benefit — 1,079 (66) 1,013 Amounts reclassed from accumulated other comprehensive income (loss) — 13,145 — 13,145 Tax (expense) benefit — 978 — 978 Total other comprehensive income (loss) (15,080) (1,947) 7,984 (9,043) Ending balance $ (90,681) $ 2,397 $ 11,966 $ (76,318) January 1, 2022 Cash Flow Hedges Currency Forward Pension Total Beginning balance $ (61,178) $ 850 $ 1,428 $ (58,900) Other comprehensive income (loss) before reclassifications (14,423) 5,860 2,859 (5,704) Tax (expense) benefit — 8 (305) (297) Amounts reclassed from accumulated other comprehensive income (loss) — 2,374 — 2,374 Tax (expense) benefit — — — — Total other comprehensive income (loss) (14,423) 3,494 2,554 (8,375) Ending balance $ (75,601) $ 4,344 $ 3,982 $ (67,275) |
Major Customer, Segment and G_2
Major Customer, Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of information by operating segment | Summary information by operating segment was as follows (in thousands): Fiscal Year 2023 Net Sales Operating Depreciation Long-term Total Assets Americas $ 640,779 $ 82,746 $ 3,734 $ 72,512 $ 266,691 Europe 437,358 40,962 4,907 76,115 213,929 Asia 328,198 38,162 2,508 58,192 191,886 Corporate 6,049 (304,894) 13,279 60,521 305,524 Consolidated $ 1,412,384 $ (143,024) $ 24,428 $ 267,340 $ 978,030 Fiscal Year 2022 Net Sales Operating Depreciation Long-term Total Assets Americas $ 744,027 $ 116,401 $ 4,834 $ 84,247 $ 343,556 Europe 541,343 91,087 5,856 86,200 269,097 Asia 377,600 52,090 3,071 48,054 206,925 Corporate 19,469 (261,051) 8,870 74,327 418,550 Consolidated $ 1,682,439 $ (1,473) $ 22,631 $ 292,828 $ 1,238,128 Fiscal Year 2021 Net Sales Operating Depreciation Long-term Total Assets Americas $ 785,923 $ 157,012 $ 6,227 $ 91,840 $ 332,822 Europe 610,217 109,964 9,000 102,437 329,579 Asia 455,157 70,949 3,969 60,373 215,611 Corporate 18,739 (245,288) 9,912 91,314 490,707 Consolidated $ 1,870,036 $ 92,637 $ 29,108 $ 345,964 $ 1,368,719 |
Schedule of revenue for each class of similar products | The following table shows revenue for each class of similar products for fiscal years 2023, 2022 and 2021 (in thousands): Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net Sales Percentage Net Sales Percentage Net Sales Percentage Watches: Traditional watches $ 1,015,077 71.9 % $ 1,158,889 68.9 % $ 1,288,499 68.9 % Smartwatches 80,949 5.7 151,602 9.0 223,899 12.0 Total watches $ 1,096,026 77.6 % $ 1,310,491 77.9 % $ 1,512,398 80.9 % Leathers 158,427 11.2 178,542 10.6 157,642 8.4 Jewelry 131,410 9.3 154,105 9.2 158,845 8.5 Other 26,521 1.9 39,301 2.3 41,151 2.2 Total $ 1,412,384 100.0 % $ 1,682,439 100.0 % $ 1,870,036 100.0 % |
Schedule of net sales and long-lived assets by geographic area | Net sales and long-term assets related to the Company's operations in the U.S., Europe, Asia and all other international markets were as follows (in thousands): Fiscal Year 2023 Net Sales (1) Long-term United States $ 514,666 $ 107,085 Europe 438,148 (2) 85,575 Asia 330,869 (3) 64,211 All other international 128,701 10,469 Consolidated $ 1,412,384 $ 267,340 Fiscal Year 2022 Net Sales (1) Long-term United States $ 619,981 $ 133,100 Europe 543,585 (2) 96,365 Asia 381,845 (3) 53,050 All other international 137,028 10,313 Consolidated $ 1,682,439 $ 292,828 Fiscal Year 2021 Net Sales (1) Long-term United States $ 682,900 $ 150,119 Europe 614,249 (2) 117,713 Asia 458,241 (3) 65,693 All other international 114,646 12,439 Consolidated $ 1,870,036 $ 345,964 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity (including exports). (2) Net sales from Germany (including exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $173.3 million, $194.1 million and $237.1 million in fiscal years 2023, 2022 and 2021, respectively. (3) Net sales from China (including Hong Kong, Macau and Taiwan and exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $140.4 million, $174.2 million and $261.4 million in fiscal years 2023, 2022 and 2021, respectively. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charges by operating segment | The following table shows a summary of TAG plan charges (in thousands): Fiscal Year Fiscal Year 2023 Cost of sales $ 5,537 Selling, general and administrative expenses 43,279 Consolidated $ 48,816 NWF 2.0 restructuring charges by operating segment were as follows (in thousands): 2022 2021 Americas $ 234 $ 2,356 Europe 1,754 9,868 Asia 1,610 5,072 Corporate 2,523 4,593 Consolidated $ 6,121 $ 21,889 |
Schedule of rollforward of the liability incurred for restructuring plan | The following table shows a rollforward of the accrued liability related to the Company’s TAG plan (in thousands): Fiscal Year 2023 Liabilities Cash Payments Non-cash Items Liabilities December 31, 2022 Charges December 30, 2023 Stores and facilities closures $ — $ 7,245 $ — $ 7,245 $ — Professional services — 6,648 6,531 — 117 Severance and employee-related benefits — 29,386 20,951 318 8,117 Charges related to exits of certain product offerings $ — $ 5,537 $ 1,716 $ — $ 3,821 Total $ — $ 48,816 $ 29,198 $ 7,563 $ 12,055 TAG plan restructuring charges by operating segment were as follows (in thousands): 2023 Americas $ 4,582 Europe 9,812 Asia 12,519 Corporate 21,903 Consolidated $ 48,816 The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands): Fiscal Year 2023 Liabilities Cash Payments Liabilities December 31, 2022 December 30, 2023 Professional services 74 74 — Severance and employee-related benefits 2,821 2,821 — Total $ 2,895 $ 2,895 $ — Fiscal Year 2022 Liabilities Cash Payments Non-cash Items Liabilities January 1, 2022 Charges December 31, 2022 Store closures $ 300 $ 787 $ 612 $ 475 $ — Professional services 643 166 735 — 74 Severance and employee-related benefits 4,388 5,168 6,431 304 2,821 Total $ 5,331 $ 6,121 $ 7,778 $ 779 $ 2,895 Fiscal Year 2021 Liabilities Cash Payments Non-cash Items Liabilities January 2, 2021 Charges January 1, 2022 Store closures $ 240 $ 1,215 $ 500 $ 655 $ 300 Professional services 2,280 5,695 7,332 — 643 Severance and employee-related benefits 7,741 14,979 18,332 — 4,388 Total $ 10,261 $ 21,889 $ 26,164 $ 655 $ 5,331 |
Significant Accounting Polici_4
Significant Accounting Policies - Concentration of Risk (Details) - Sales of licensed products - Licensed products | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 44.70% | 46.50% | 50.50% |
MICHAEL KORS | |||
Concentration of Risk | |||
Concentration risk percentage | 17.60% | 19.20% | 20.90% |
EMPORIO ARMANI | |||
Concentration of Risk | |||
Concentration risk percentage | 14% | 14.60% | 18.40% |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 117,197 | $ 198,726 | $ 250,844 | |
Restricted cash included in prepaid expenses and other current assets | 77 | 106 | 117 | |
Restricted cash included in intangible and other assets-net | 4,309 | 5,243 | 13,611 | |
Cash, cash equivalents and restricted cash | $ 121,583 | $ 204,075 | $ 264,572 | $ 324,246 |
Significant Accounting Polici_6
Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts receivable | $ 12.6 | $ 14.6 |
Significant Accounting Polici_7
Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Consigned inventory | $ 19.8 | $ 25.3 |
Significant Accounting Polici_8
Significant Accounting Policies - Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Selling, general and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Lease impairment loss | $ 1.7 | $ 2.1 | $ 7.5 |
Restructuring charges | |||
Lessee, Lease, Description [Line Items] | |||
Lease impairment loss | $ 0 | $ 0 | $ 0.7 |
Significant Accounting Polici_9
Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Buildings | |||
Property, plant and equipment | |||
Useful life | 30 years | ||
Machinery and equipment | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Furniture and fixtures | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Computer equipment and software | Minimum | |||
Property, plant and equipment | |||
Useful life | 2 years | ||
Computer equipment and software | Maximum | |||
Property, plant and equipment | |||
Useful life | 7 years | ||
Selling, general and administrative expenses | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | $ 400,000 | $ 200,000 | $ 1,700,000 |
Restructuring charges | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | $ 0 | $ 100,000 | $ 200,000 |
Significant Accounting Polic_10
Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Trade Names, MICHELE | |||
Finite lived intangible assets | |||
Trade name impairments | $ 0 | $ 0 | $ 0 |
Minimum | |||
Finite lived intangible assets | |||
Useful lives | 3 years | ||
Maximum | |||
Finite lived intangible assets | |||
Useful lives | 20 years | ||
Trade Names, SKAGEN | |||
Finite lived intangible assets | |||
Useful lives | 2 years | ||
Trade name impairments | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_11
Significant Accounting Policies - Foreign Transaction Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency transaction gains (losses) | $ 3,023 | $ (218) | $ (4,016) |
Significant Accounting Polic_12
Significant Accounting Policies - Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Estimated sales return provision | $ 33.4 | $ 35.8 |
Significant Accounting Polic_13
Significant Accounting Policies - Operating Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Government assistance, amount | $ 3.6 | $ 4 | $ 16.1 |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses |
Significant Accounting Polic_14
Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs | $ 157.3 | $ 154.6 | $ 168.4 |
Significant Accounting Polic_15
Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development costs | $ 19.4 | $ 29.1 | $ 27.2 |
Significant Accounting Polic_16
Significant Accounting Policies - Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Numerator: | |||
Net income (loss) attributable to Fossil Group, Inc. | $ (157,088) | $ (44,157) | $ 25,434 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 52,284 | 51,841 | 51,961 |
Basic EPS (in dollars per share) | $ (3) | $ (0.85) | $ 0.49 |
Diluted EPS computation: | |||
Basic weighted average common shares outstanding (in shares) | 52,284 | 51,841 | 51,961 |
Diluted weighted average common shares outstanding (in shares) | 52,284 | 51,841 | 52,777 |
Diluted EPS (in dollars per share) | $ (3) | $ (0.85) | $ 0.48 |
Stock Compensation Plan | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 2,100 | 2,100 | 300 |
Performance Shares | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 300 | 300 | 13,000,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Material contract assets | $ 0 | |
Deferred contract costs | $ 0 | |
Online Dashboard, Mobile Applications, and Upgrade Rights | ||
Disaggregation of Revenue [Line Items] | ||
Estimated usage period | 2 years | |
Licensing Income | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 0 | $ 800,000 |
Wearable Technology | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 1,700,000 | 3,700,000 |
Gift Cards | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 2,700,000 | $ 3,100,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,412,384 | $ 1,682,439 | $ 1,870,036 |
Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,409,225 | 1,667,358 | 1,856,119 |
Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,159 | 15,081 | 13,917 |
Total watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,096,026 | 1,310,491 | 1,512,398 |
Traditional Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,015,077 | 1,158,889 | 1,288,499 |
Smartwatches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 80,949 | 151,602 | 223,899 |
Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 158,427 | 178,542 | 157,642 |
Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 131,410 | 154,105 | 158,845 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 26,521 | 39,301 | 41,151 |
Operating segments | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 640,779 | 744,027 | 785,923 |
Operating segments | Americas | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 640,191 | 742,436 | 784,287 |
Operating segments | Americas | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 588 | 1,591 | 1,636 |
Operating segments | Americas | Total watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 494,405 | 584,644 | 642,118 |
Operating segments | Americas | Traditional Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 456,745 | 518,995 | 531,392 |
Operating segments | Americas | Smartwatches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 37,660 | 65,649 | 110,726 |
Operating segments | Americas | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 104,760 | 115,300 | 95,197 |
Operating segments | Americas | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 33,367 | 35,695 | 41,350 |
Operating segments | Americas | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8,247 | 8,388 | 7,258 |
Operating segments | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437,358 | 541,343 | 610,217 |
Operating segments | Europe | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 436,610 | 540,465 | 608,946 |
Operating segments | Europe | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 748 | 878 | 1,271 |
Operating segments | Europe | Total watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 322,384 | 408,038 | 471,675 |
Operating segments | Europe | Traditional Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 296,133 | 354,799 | 396,787 |
Operating segments | Europe | Smartwatches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 26,251 | 53,239 | 74,888 |
Operating segments | Europe | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 25,877 | 29,414 | 31,809 |
Operating segments | Europe | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 78,946 | 93,614 | 95,995 |
Operating segments | Europe | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,151 | 10,277 | 10,738 |
Operating segments | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 328,198 | 377,600 | 455,157 |
Operating segments | Asia | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 327,747 | 377,107 | 454,558 |
Operating segments | Asia | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 451 | 493 | 599 |
Operating segments | Asia | Total watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 277,282 | 314,262 | 397,527 |
Operating segments | Asia | Traditional Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 260,244 | 281,550 | 359,266 |
Operating segments | Asia | Smartwatches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 17,038 | 32,712 | 38,261 |
Operating segments | Asia | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 27,790 | 33,828 | 30,636 |
Operating segments | Asia | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 19,097 | 24,796 | 21,500 |
Operating segments | Asia | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,029 | 4,714 | 5,494 |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,049 | 19,469 | 18,739 |
Corporate | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,677 | 7,350 | 8,328 |
Corporate | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,372 | 12,119 | 10,411 |
Corporate | Total watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,955 | 3,547 | 1,078 |
Corporate | Traditional Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,955 | 3,545 | 1,054 |
Corporate | Smartwatches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 2 | 24 |
Corporate | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Corporate | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Corporate | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,094 | $ 15,922 | $ 17,661 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Components and parts | $ 18,931 | $ 20,998 |
Finished goods | 233,903 | 355,030 |
Inventories | $ 252,834 | $ 376,028 |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Warranty liability activity | |||
Beginning balance | $ 13,623 | $ 19,159 | $ 21,916 |
Settlements in cash or kind | (6,956) | (8,630) | (10,263) |
Warranties issued and adjustments to preexisting warranties | 3,455 | 3,094 | 7,506 |
Ending balance | $ 10,122 | $ 13,623 | $ 19,159 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid royalties | $ 17,143 | $ 34,114 |
Prepaid taxes | 34,917 | 36,081 |
Current income tax receivable | 56,491 | 52,618 |
Other receivables | 824 | 1,488 |
Forward contracts | 339 | 2,783 |
Inventory returns | 9,757 | 10,833 |
Property held for sale | 9,394 | 0 |
Short term deposits | 568 | 1,786 |
Other | 23,284 | 24,710 |
Prepaid expenses and other current assets | $ 152,717 | $ 164,413 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 441,932 | $ 495,054 |
Less accumulated depreciation and amortization | 384,688 | 415,172 |
Property, plant and equipment-net | 57,244 | 79,882 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 1,004 | 4,180 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 7,589 | 23,404 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 36,046 | 36,654 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 68,467 | 73,721 |
Computer equipment and software | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 193,604 | 198,206 |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 131,502 | 153,161 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 3,720 | $ 5,728 |
Intangible and Other Assets- Sc
Intangible and Other Assets- Schedule of Intangible and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Intangibles-subject to amortization: | |||
Gross Amount | $ 9,671 | $ 9,718 | |
Accumulated Amortization | 7,227 | 6,680 | |
Intangibles-not subject to amortization: | |||
Gross Amount | 8,919 | 8,876 | |
Other assets: | |||
Gross Amount | 47,733 | 44,085 | |
Total Gross Amount | 66,323 | 62,679 | |
Total Accumulated Amortization | 7,227 | 6,680 | |
Total intangible and other assets-net | 59,096 | 55,999 | |
Amortization expense for intangible assets | 900 | 2,500 | $ 3,400 |
Other deposits | |||
Other assets: | |||
Gross Amount | 16,168 | 16,487 | |
Deferred tax asset-net | |||
Other assets: | |||
Gross Amount | 21,426 | 17,262 | |
Restricted cash | |||
Other assets: | |||
Gross Amount | 4,309 | 5,243 | |
Debt issuance costs | |||
Other assets: | |||
Gross Amount | 2,490 | 3,124 | |
Other | |||
Other assets: | |||
Gross Amount | $ 3,340 | 1,969 | |
Minimum | |||
Intangibles-subject to amortization: | |||
Useful lives | 3 years | ||
Maximum | |||
Intangibles-subject to amortization: | |||
Useful lives | 20 years | ||
Trademarks | |||
Intangibles-subject to amortization: | |||
Useful lives | 10 years | ||
Gross Amount | $ 3,978 | 3,728 | |
Accumulated Amortization | 3,256 | 3,243 | |
Customer lists | |||
Intangibles-subject to amortization: | |||
Gross Amount | 0 | 279 | |
Accumulated Amortization | $ 0 | 266 | |
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 | $ 850 | 867 | |
Accumulated Amortization | $ 546 | 537 | |
Patents | Minimum | |||
Intangibles-subject to amortization: | |||
Useful lives | 3 years | ||
Patents | Maximum | |||
Intangibles-subject to amortization: | |||
Useful lives | 20 years | ||
Trade name | |||
Intangibles-subject to amortization: | |||
Useful lives | 6 years | ||
Gross Amount | $ 4,502 | 4,502 | |
Accumulated Amortization | 3,189 | 2,439 | |
Other | |||
Intangibles-subject to amortization: | |||
Gross Amount | 341 | 342 | |
Accumulated Amortization | $ 236 | $ 195 | |
Other | Minimum | |||
Intangibles-subject to amortization: | |||
Useful lives | 7 years | ||
Other | Maximum | |||
Intangibles-subject to amortization: | |||
Useful lives | 20 years |
Intangible and Other Assets - A
Intangible and Other Assets - Amortization Expense (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 924 |
2025 | 733 |
2026 | 142 |
2027 | 124 |
2028 | 118 |
Thereafter | $ 403 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management - Cash Flow Hedges (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 30, 2023 EUR (€) | Dec. 30, 2023 USD ($) | Dec. 30, 2023 CAD ($) | Dec. 30, 2023 MXN ($) | Dec. 30, 2023 GBP (£) | Dec. 30, 2023 JPY (¥) | Dec. 30, 2023 AUD ($) | |
Derivative [Line Items] | |||||||
Maximum period of future intercompany purchases | 24 months | ||||||
Percentage of forecasted purchases to manage fluctuations in global currencies (up to) | 85% | 85% | 85% | 85% | 85% | 85% | 85% |
Designated as cash flow hedges | Forward contracts | Euro | |||||||
Derivative [Line Items] | |||||||
Notional amount | € 50.9 | $ 56.3 | |||||
Designated as cash flow hedges | Forward contracts | Canadian dollar | |||||||
Derivative [Line Items] | |||||||
Notional amount | 19 | $ 25.3 | |||||
Designated as cash flow hedges | Forward contracts | Mexican peso | |||||||
Derivative [Line Items] | |||||||
Notional amount | 6.8 | $ 121.1 | |||||
Designated as cash flow hedges | Forward contracts | British pound | |||||||
Derivative [Line Items] | |||||||
Notional amount | 5.7 | £ 4.5 | |||||
Designated as cash flow hedges | Forward contracts | Japanese yen | |||||||
Derivative [Line Items] | |||||||
Notional amount | 3 | ¥ 395.5 | |||||
Designated as cash flow hedges | Forward contracts | Australian dollar | |||||||
Derivative [Line Items] | |||||||
Notional amount | 2.5 | $ 3.8 | |||||
Designated as cash flow hedges | Forward contracts | U.S. dollar | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 3.5 | ¥ 480 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management - Non-designated Hedges (Details) - Not designated as hedging instruments - Forward Contracts R in Millions, $ in Millions | Dec. 30, 2023 USD ($) | Dec. 30, 2023 ZAR (R) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 ZAR (R) |
Derivative [Line Items] | ||||
Fair value of designated forward contracts | $ | $ 1.5 | $ 0.7 | ||
Hedged amount | R | R 27.1 | R 12.1 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management - Gains and Losses on Cash Flow Hedges (Details) - Cash Flow Hedges - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ (708) | $ 12,176 | $ 5,868 |
Forward contracts | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ (708) | $ 12,176 | $ 5,868 |
Derivatives and Risk Manageme_6
Derivatives and Risk Management - Gains and Losses on Derivative Instruments (Details) - Forward Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Designated as cash flow hedges | Cost of sales | Cash Flow Hedges | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) | $ (1,001) | $ 10,789 | $ 2,429 |
Designated as cash flow hedges | Other income (expense)-net | Cash Flow Hedges | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 1,002 | 3,334 | (55) |
Not designated as hedging instruments | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) recognized in income | 83 | 128 | $ 37 |
Not designated as hedging instruments | Cost of sales | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) recognized in income | 0 | 0 | |
Not designated as hedging instruments | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) recognized in income | $ 83 | $ 128 |
Derivatives and Risk Manageme_7
Derivatives and Risk Management - Fair Value Amounts for Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair value of derivative instruments | ||
Asset Derivatives | $ 359 | $ 2,895 |
Liability Derivatives | 1,079 | 2,993 |
Forward Contracts | Designated as cash flow hedges | Prepaid expenses and other current assets | Cash Flow Hedges | ||
Fair value of derivative instruments | ||
Asset Derivatives | 339 | 2,783 |
Forward Contracts | Designated as cash flow hedges | Intangible and other assets-net | Cash Flow Hedges | ||
Fair value of derivative instruments | ||
Asset Derivatives | 20 | 112 |
Forward Contracts | Designated as cash flow hedges | Accrued expenses-other | Cash Flow Hedges | ||
Fair value of derivative instruments | ||
Liability Derivatives | 1,044 | 2,659 |
Forward Contracts | Designated as cash flow hedges | Other long-term liabilities | Cash Flow Hedges | ||
Fair value of derivative instruments | ||
Liability Derivatives | 28 | 318 |
Forward Contracts | Not designated as hedging instruments | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 0 | 0 |
Forward Contracts | Not designated as hedging instruments | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | $ 7 | $ 16 |
Derivatives and Risk Manageme_8
Derivatives and Risk Management - Effect of Derivative Instruments on Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative [Line Items] | |||
Cost of sales | $ 732,803 | $ 851,760 | $ 903,662 |
Other income (expense) - net | 8,665 | (1,416) | (14,500) |
Loss expected to be reclassified into earnings within the next twelve months | 600 | ||
Forward Contracts | Not designated as hedging instruments | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in income | 83 | 128 | 37 |
Forward Contracts | Cost of Sales | Designated as cash flow hedges | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Total gain (loss) reclassified from other comprehensive income (loss) | (1,001) | 10,789 | 2,429 |
Forward Contracts | Cost of Sales | Not designated as hedging instruments | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in income | 0 | 0 | |
Forward Contracts | Other income (expense)-net | Designated as cash flow hedges | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Total gain (loss) reclassified from other comprehensive income (loss) | 1,002 | 3,334 | $ (55) |
Forward Contracts | Other income (expense)-net | Not designated as hedging instruments | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in income | $ 83 | $ 128 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Forward contracts | $ 359 | $ 2,895 |
Total | 359 | 2,895 |
Liabilities: | ||
Contingent consideration | 586 | 3,630 |
Forward contracts | 1,079 | 2,993 |
Total | 1,665 | 6,623 |
Level 1 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Forward contracts | 359 | 2,895 |
Total | 359 | 2,895 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 1,079 | 2,993 |
Total | 1,079 | 2,993 |
Level 3 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration | 586 | 3,630 |
Forward contracts | 0 | 0 |
Total | $ 586 | $ 3,630 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, gross | $ 212,600,000 | $ 223,300,000 | |
Operating lease right-of-use assets | 151,000,000 | 156,947,000 | |
Property, plant and equipment-net | 57,244,000 | 79,882,000 | |
Impairment charge | 2,159,000 | 2,642,000 | $ 9,223,000 |
Restructuring expenses | 43,279,000 | 6,121,000 | $ 21,889,000 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, gross | 150,000,000 | ||
Fair value of debt | 92,500,000 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, gross | 62,100,000 | ||
Fair value of debt | 49,600,000 | ||
Trade name | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trade name impairments | 0 | 0 | |
Specific company-owned stores | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating lease right-of-use assets | 4,300,000 | 5,700,000 | |
Property, plant and equipment-net | 1,100,000 | 800,000 | |
Operating lease right-of-use asset | 2,700,000 | 3,600,000 | |
Property plant and equipment, fair value | 500,000 | 400,000 | |
Impairment charge | 2,200,000 | 2,500,000 | |
Specific company-owned stores | Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 1,500,000 | 1,300,000 | |
Restructuring expenses | 100,000 | ||
Specific company-owned stores | Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | $ 700,000 | 700,000 | |
Specific company-owned stores | Asia | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | $ 400,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal amounts repayable | $ 212.6 | $ 223.3 |
Less current portion | 0.5 | 0.3 |
Long-term debt | 212.1 | 223 |
Debt issuance costs | 5.1 | |
Line of credit | U.S. revolving line of credit | ||
Debt Instrument [Line Items] | ||
Principal amounts repayable | 62.1 | 73 |
Debt issuance costs | 2.5 | |
Senior notes | 7.00 Percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal amounts repayable | 150 | 150 |
Debt issuance costs | 5.1 | 6.9 |
Other international | ||
Debt Instrument [Line Items] | ||
Principal amounts repayable | $ 0.5 | $ 0.3 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 26, 2019 USD ($) | Nov. 30, 2021 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 30, 2023 ZAR (R) | Nov. 08, 2022 USD ($) | |
Debt Instrument | |||||||
Debt instrument, face amount | R | R 20,000,000 | ||||||
Basis spread on base rate | 0.50% | ||||||
Debt issuance costs | $ 5,100,000 | ||||||
Interest expense | $ 21,778,000 | $ 19,237,000 | $ 25,086,000 | ||||
Debt instrument, interest rate, effective percentage | 10.50% | 10.50% | |||||
Long-term debt, gross | $ 212,600,000 | 223,300,000 | |||||
Notes Payable to Banks | |||||||
Debt Instrument | |||||||
Long-term debt, gross | 500,000 | 300,000 | |||||
7.00 Percent Senior Notes | Senior notes | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | $ 150,000,000 | ||||||
Stated interest percentage | 7% | ||||||
Net proceeds | $ 141,700,000 | ||||||
Debt securities, ownership percentage by registered holders | 25% | ||||||
Debt issuance costs | 5,100,000 | 6,900,000 | |||||
Long-term debt, gross | 150,000,000 | 150,000,000 | |||||
7.00 Percent Senior Notes | Senior notes | Debt Instrument, Redemption, Period One | |||||||
Debt Instrument | |||||||
Redemption price per increment of principal | $ 25.50 | ||||||
Principal amount, increment used to calculate redemption price | 25 | ||||||
7.00 Percent Senior Notes | Senior notes | Debt Instrument, Redemption, Period Two | |||||||
Debt Instrument | |||||||
Redemption price per increment of principal | 25.25 | ||||||
Principal amount, increment used to calculate redemption price | 25 | ||||||
7.00 Percent Senior Notes | Senior notes | Debt Instrument, Redemption, Period Three | |||||||
Debt Instrument | |||||||
Redemption price per increment of principal | 25 | ||||||
Principal amount, increment used to calculate redemption price | 25 | ||||||
Term Credit Agreement | |||||||
Debt Instrument | |||||||
Amortization of debt issuance costs | $ 2,400,000 | ||||||
U.S. revolving line of credit | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | $ 275,000,000 | 225,000,000 | |||||
Line of credit facility, issuance fee percentage | 0.125% | ||||||
Line of credit facility, increase in maximum borrowing capacity | $ 75,000,000 | ||||||
Line of credit facility, increase in maximum borrowing capacity minimum increment | $ 10,000,000 | ||||||
U.S. revolving line of credit | Maximum | |||||||
Debt Instrument | |||||||
Line of credit facility, commitment fee percentage | 0.375% | ||||||
U.S. revolving line of credit | Minimum | |||||||
Debt Instrument | |||||||
Line of credit facility, commitment fee percentage | 0.25% | ||||||
U.S. revolving line of credit | Line of credit | |||||||
Debt Instrument | |||||||
Debt issuance costs | $ 2,500,000 | ||||||
Long-term debt, gross | 62,100,000 | $ 73,000,000 | |||||
U.S. revolving line of credit | Fourth A&R Credit Agreement | |||||||
Debt Instrument | |||||||
Aggregate principal amount available | $ 35,000,000 | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 60% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | Net Liquidation Value | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90% | ||||||
Increase in percentage of assets | 5% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | Net Liquidation Value | Maximum | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 95% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | United States Finished Goods Inventory | Net Liquidation Value | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | United States Finished Goods Inventory | Lower Of Cost Or Market Value | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 65% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | United States Accounts Receivable | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | United States Credit Card Accounts Receivable | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | United States Intellectual Property | Net Liquidation Value | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | $ 20,000,000 | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 40% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | Foreign Finished Goods Inventory | Net Liquidation Value | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | Foreign Finished Goods Inventory | Lower Of Cost Or Market Value | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 65% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | Foreign Accounts Receivable | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85% | ||||||
U.S. revolving line of credit | Second A&R Credit Agreement | French Accounts Receivable | |||||||
Debt Instrument | |||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85% | ||||||
U.S. revolving line of credit | Term Credit Agreement | |||||||
Debt Instrument | |||||||
Net payments under Term Loan | 10,900,000 | ||||||
Remaining borrowing capacity | 64,000,000 | ||||||
U.S. revolving line of credit | Term Credit Agreement | Line of credit | |||||||
Debt Instrument | |||||||
Interest expense | 5,600,000 | ||||||
U.S. Credit Facility | |||||||
Debt Instrument | |||||||
Aggregate principal amount available | 125,000,000 | ||||||
European Credit Facility | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | 80,000,000 | ||||||
Subfacility for swingline loans | 7,000,000 | ||||||
Hong Kong Credit Facility | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | 10,000,000 | ||||||
French Credit Facility | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | 5,000,000 | ||||||
Subfacility for swingline loans | 1,000,000 | ||||||
Canadian Credit Facility | |||||||
Debt Instrument | |||||||
Maximum borrowing amount | 5,000,000 | ||||||
Letter of Credit | |||||||
Debt Instrument | |||||||
Subfacility for letters of credit | $ 45,000,000 | ||||||
Term Loan Facility | Term Credit Agreement | |||||||
Debt Instrument | |||||||
Interest expense | $ 10,500,000 |
Debt - Schedule of Maturity of
Debt - Schedule of Maturity of Debt (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Less than 1 Year | $ 0.5 | |
Year 2 | 0 | |
Year 3 | 212.1 | |
Year 4 | 0 | |
Year 5 | 0 | |
Principal amounts repayable | 212.6 | $ 223.3 |
Debt issuance costs | (5.1) | |
Total debt outstanding | $ 207.5 |
Other Income (Expense)_Net (Det
Other Income (Expense)—Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 3,184 | $ 772 | $ 407 |
Contingent consideration remeasurement | 348 | (2,363) | (347) |
Equity in losses of unconsolidated investment | (11) | (132) | (349) |
Extinguishment of debt | 0 | (1,060) | (13,005) |
Net currency (losses) gains | 3,023 | (218) | (4,016) |
Other net gains | 2,121 | 1,585 | 2,810 |
Other income (expense) - net | $ 8,665 | $ (1,416) | $ (14,500) |
Taxes - Components of Consolida
Taxes - Components of Consolidated Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Inventory | $ 1,940 | $ 2,985 |
Compensation | 6,368 | 7,936 |
Property, plant and equipment | 4,611 | 2,120 |
Trade names and customer lists | 2,489 | 3,819 |
Goodwill | 6,712 | 8,867 |
Foreign accruals | 6,785 | 4,538 |
Loss carryforwards | 128,055 | 79,130 |
Tax credit carryforwards | 11,134 | 5,717 |
Capitalized research and development | 6,882 | 6,066 |
Interest disallowance | 15,143 | 12,701 |
Lease liabilities | 40,633 | 47,354 |
Other | 15,207 | 15,862 |
Deferred income tax assets total | 245,959 | 197,095 |
Deferred income tax liabilities: | ||
Right-of-use assets | (32,531) | (36,821) |
Other | (97) | (281) |
Deferred income tax liabilities total | (32,628) | (37,102) |
Valuation allowance | (192,603) | (143,347) |
Net deferred income tax assets | 20,728 | 16,646 |
Deferred income tax assets - net | 21,426 | 17,262 |
Deferred income tax liabilities - net | $ (698) | $ (616) |
Taxes - Narrative (Details)
Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2024 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income tax contingency | ||||
Deferred tax assets, loss carryforwards | $ 128,055,000 | $ 79,130,000 | ||
Percentage of taxable income | 2.30% | 8.60% | (2.00%) | |
Valuation allowance | $ 192,603,000 | $ 143,347,000 | ||
Undistributed earnings of certain foreign subsidiaries | 160,300,000 | |||
Undistributed earnings, amount subject to reinvestment | 501,300,000 | |||
Unrecognized tax benefits that would favorably impact the effective tax rate in future periods if recognized | 23,600,000 | 24,000,000 | $ 24,800,000 | |
Unrecognized tax benefits excluding interest and penalties | 9,600,000 | |||
Total amount of accrued income tax-related interest | 5,100,000 | |||
Accrued income tax-related interest | 3,800,000 | 9,100,000 | ||
Accrued interest expense | 8,900,000 | |||
Income tax-related penalties | 0 | |||
Accrued interest (benefit) expense | (4,000,000) | $ 900,000 | $ 1,500,000 | |
Foreign income tax | ||||
Income tax contingency | ||||
Deferred tax assets, loss carryforwards | 74,100,000 | |||
Increase (decrease) in deferred tax asset valuation allowance | 13,500,000 | |||
Valuation allowance | 81,300,000 | |||
State income tax | ||||
Income tax contingency | ||||
Deferred tax assets, loss carryforwards | 15,500,000 | |||
U.S. income tax | ||||
Income tax contingency | ||||
Deferred tax assets, loss carryforwards | $ 38,500,000 | |||
Percentage of taxable income | 80% | |||
Increase (decrease) in deferred tax asset valuation allowance | $ 35,700,000 | |||
Valuation allowance | $ 111,300,000 | |||
U.S. income tax | Forecast | ||||
Income tax contingency | ||||
Income tax refunds | $ 56,500,000 |
Taxes - Operating Loss Carryfor
Taxes - Operating Loss Carryforwards (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Foreign income tax | |
Operating loss carryforwards | |
Total loss carryforwards | $ 320,409 |
Foreign income tax | Expires 2024 through 2028 | |
Operating loss carryforwards | |
Total loss carryforwards | 29,334 |
Foreign income tax | Expires 2029 through 2033 | |
Operating loss carryforwards | |
Total loss carryforwards | 86,962 |
Foreign income tax | Expires 2034 through 2038 | |
Operating loss carryforwards | |
Total loss carryforwards | 37,126 |
Foreign income tax | Expires 2039 through 2043 | |
Operating loss carryforwards | |
Total loss carryforwards | 102,217 |
Foreign income tax | Indefinite | |
Operating loss carryforwards | |
Total loss carryforwards | 64,770 |
State income tax | |
Operating loss carryforwards | |
Total loss carryforwards | 272,928 |
State income tax | Expires 2024 through 2028 | |
Operating loss carryforwards | |
Total loss carryforwards | 7,975 |
State income tax | Expires 2029 through 2033 | |
Operating loss carryforwards | |
Total loss carryforwards | 26,267 |
State income tax | Expires 2034 through 2038 | |
Operating loss carryforwards | |
Total loss carryforwards | 49,802 |
State income tax | Expires 2039 through 2043 | |
Operating loss carryforwards | |
Total loss carryforwards | 124,558 |
State income tax | Indefinite | |
Operating loss carryforwards | |
Total loss carryforwards | $ 64,326 |
Taxes - Income Before Income Ta
Taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (130,620) | $ (43,927) | $ (32,423) |
Non-U.S. | (25,517) | 21,801 | 85,474 |
Income (loss) before income taxes | $ (156,137) | $ (22,126) | $ 53,051 |
Taxes - Provision for Income Ta
Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current provision: | |||
U.S. federal | $ (3,798) | $ 5,901 | $ 1,714 |
Non-U.S | 8,315 | 9,944 | 17,027 |
State and local | (120) | (98) | (274) |
Total current | 4,397 | 15,747 | 18,467 |
Deferred provision (benefit): | |||
Non-U.S | (3,875) | 5,653 | 7,960 |
Total deferred | (3,875) | 5,653 | 7,960 |
Provision for income taxes | $ 522 | $ 21,400 | $ 26,427 |
Taxes - Reconciliation of U.S.
Taxes - Reconciliation of U.S. Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21% | 21% | 21% |
Permanent differences | 0.10% | (4.90%) | (2.50%) |
State, net of federal tax benefit | 2.30% | 8.60% | (2.00%) |
Foreign rate differential | 1.80% | 21.50% | (3.80%) |
Withholding taxes | (2.00%) | (19.30%) | 7.50% |
GILTI tax-net of foreign tax credits | 0% | 0% | 5.70% |
U.S. tax on foreign income-net of foreign tax credits | 0.30% | 0% | 0% |
Income tax contingencies | 0.40% | (4.80%) | 3.90% |
Federal Interest on IRS Refund | 0.025 | 0 | 0 |
Valuation allowances | (32.50%) | (110.60%) | 31.90% |
R&D/Foreign Tax Credits | 3.50% | 0% | (5.60%) |
Deficiencies (Benefits) on employee stock awards | (0.60%) | (2.70%) | (0.30%) |
APB23 Assertion | (0.10%) | 0.60% | (6.90%) |
Return to provision true-up | 2.70% | 4.80% | 0% |
Non deductible foreign equity awards | (0.20%) | (2.00%) | 0.80% |
Non deductible officer compensation | (0.10%) | (3.40%) | 1% |
Foreign currency hedges | 0% | 1.20% | 0.70% |
Adjustments related to intercompany | 0% | (5.90%) | 0.40% |
Other | 0.60% | (0.80%) | (2.00%) |
Provision for income taxes | (0.30%) | (96.70%) | 49.80% |
Taxes - Reconciliation of Unrec
Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 23,998 | $ 29,833 | $ 31,540 |
Gross increases—tax positions in prior years | 214 | 1,069 | 2,266 |
Gross decreases—tax positions in prior years | 0 | (1,395) | (3,016) |
Gross increases—tax positions in current year | 1,006 | 1,275 | 1,120 |
Settlements | (1,583) | (5,350) | (630) |
Lapse in statute of limitations | (173) | (171) | (1,188) |
Change due to currency revaluation | 177 | (1,263) | (259) |
Balance at end of year | $ 23,639 | $ 23,998 | $ 29,833 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 30, 2023 option |
Lessee, Lease, Description [Line Items] | |
Number of renewals (or more) | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 72,296 | $ 76,528 |
Short-term lease cost | 1,145 | 802 |
Variable lease cost | $ 23,181 | $ 27,606 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease ROU assets | $ 151,000 | $ 156,947 |
Current: | ||
Current operating lease liabilities | 43,565 | 49,702 |
Noncurrent: | ||
Long-term operating lease liabilities | $ 137,644 | $ 150,188 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Dec. 30, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term: | ||
Operating leases (in years) | 6 years 4 months 24 days | 5 years 7 months 6 days |
Weighted-average discount rate: | ||
Operating leases | 14.90% | 14.10% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 70,125 |
2025 | 50,188 |
2026 | 38,594 |
2027 | 27,775 |
2028 | 17,693 |
Thereafter | 87,328 |
Total lease payments | 291,703 |
Less: Interest | 110,494 |
Total lease obligations | $ 181,209 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 86,474 | $ 93,245 |
Leased assets obtained in exchange for new operating lease liabilities | $ 41,430 | $ 34,248 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other Commitments [Line Items] | |||
Royalty expense | $ 129.5 | $ 140.5 | $ 157.8 |
Purchase obligations | $ 192.1 | ||
Minimum | |||
Other Commitments [Line Items] | |||
Percentage of royalties | 5% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Percentage of royalties | 22% |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Royalty Commitments Under License Agreements (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Minimum Royalty Commitments | |
2024 | $ 111,604 |
2025 | 16,205 |
2026 | 14,348 |
2027 | 14,348 |
2028 | 1,448 |
Total | $ 157,953 |
Commitments and Contingencies_3
Commitments and Contingencies - Changes in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligation | $ 11,547 | $ 13,161 |
Additions and changes in estimate | 1,356 | 412 |
Liabilities settled during the period | (1,636) | (1,608) |
Accretion expense | 296 | 308 |
Currency translation | 195 | (726) |
Ending asset retirement obligations | $ 11,758 | $ 11,547 |
Stockholders' Equity - Common a
Stockholders' Equity - Common and Preferred Stock (Details) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 52,487,020 | 51,836,456 |
Common stock, shares outstanding (in shares) | 52,487,020 | 51,836,456 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Aug. 31, 2010 | |
Stockholders' Equity Note [Abstract] | |||
Authorized amount | $ 30,000 | $ 30,000 | |
Common stock retired (in shares) | 1 | ||
Repurchase of common stock which decreased common stock | 10 | ||
Repurchase of common stock which decreased additional paid-in capital | 500 | ||
Repurchase of common stock which decreased retained earnings | 9,500 | ||
Repurchase of common stock which decreased treasury stock | 10,000 | ||
Authorizations remaining | $ 20,000 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Compensation and Savings Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Employer's matching contributions under the plan | $ 2,500,000 | $ 2,600,000 | $ 2,300,000 |
Maximum additional contribution by employer (as a percent) | 15% | ||
Additional employer matching contributions | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation Plans (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 5.6 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized (in years) | 1 year 4 months 24 days |
Employee Benefit Plans - Long-T
Employee Benefit Plans - Long-Term Incentive Plans (Details) - shares | 12 Months Ended | ||
May 23, 2018 | Dec. 30, 2023 | Mar. 31, 2016 | |
Nonemployee director | Restricted stock units | |||
Long-Term Incentive Plans | |||
Vesting percentage of awards granted | 100% | ||
2016 long term incentive plan | |||
Long-Term Incentive Plans | |||
Number of common shares reserved for issuance (in shares) | 10,288,468 | 3,000,000 | |
Number of additional shares of common stock (in shares) | 5,000,000 | ||
Term of award under the plan | 10 years | ||
Vesting period | 3 years | ||
2008 long term incentive plan | |||
Long-Term Incentive Plans | |||
Number of additional shares of common stock (in shares) | 2,288,468 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option and Stock Appreciation Rights Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Shares | ||||
Outstanding at beginning of period (in shares) | 101 | 282 | 383 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Forfeited or expired (in shares) | (62) | (181) | (101) | |
Outstanding at end of period (in shares) | 39 | 101 | 282 | 383 |
Exercisable (in shares) | 39 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 55.31 | $ 72.34 | $ 75.05 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 0 | 0 | 0 | |
Forfeited or expired (in dollars per share) | 59.92 | 81.57 | 82.57 | |
Outstanding at end of period (in dollars per share) | 47.99 | $ 55.31 | $ 72.34 | $ 75.05 |
Exercisable (in dollars per share) | $ 47.99 | |||
Weighted-Average Remaining Contractual Term (Years) | ||||
Outstanding | 2 months 12 days | 10 months 24 days | 1 year 6 months | 1 year 10 months 24 days |
Exercisable at end of period | 2 months 12 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at beginning of period | $ 0 | $ 0 | $ 0 | |
Exercised | 0 | 0 | 0 | |
Outstanding at end of period | 0 | $ 0 | $ 0 | $ 0 |
Exercisable at end of period | $ 0 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Option and Stock Appreciation Rights Outstanding and Exercisable (Details) - Stock appreciation rights shares in Thousands | 12 Months Ended |
Dec. 30, 2023 $ / shares shares | |
Stock-based compensation plans disclosures | |
Stock appreciation rights outstanding (in shares) | shares | 39 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 47.99 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 2 months 12 days |
Stock appreciation rights exercisable (in shares) | shares | 39 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 47.99 |
Range One Of Exercise Prices | |
Stock-based compensation plans disclosures | |
Outstanding, lower range (in dollars per share) | 47.99 |
Outstanding, upper range (in dollars per share) | $ 71.98 |
Stock appreciation rights outstanding (in shares) | shares | 39 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 47.99 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 2 months 12 days |
Stock appreciation rights exercisable (in shares) | shares | 39 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 47.99 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock and Restricted Stock Unit Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Number of Shares | |||
Nonvested at beginning of period (in shares) | 1,967 | 1,840 | 1,736 |
Granted (in shares) | 1,367 | 1,292 | 1,033 |
Vested (in shares) | (845) | (936) | (861) |
Forfeited (in shares) | (571) | (229) | (68) |
Nonvested at end of period (in shares) | 1,918 | 1,967 | 1,840 |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested at beginning of period (in dollars per share) | $ 10.08 | $ 9.93 | $ 7.90 |
Granted (in dollars per share) | 3.04 | 10.52 | 13.19 |
Vested (in dollars per share) | 8.60 | 10.16 | 9.80 |
Forfeited (in dollars per share) | 8.48 | 10.79 | 9.42 |
Nonvested at end of period (in dollars per share) | $ 6.19 | $ 10.08 | $ 9.93 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Switzerland | |||
Employee Benefit Plans | |||
Pension gain (expense) | $ 5,500 | $ 200 | $ (600) |
Employee benefit plan obligations included in other long-term liabilities | 4,800 | 4,000 | |
France | |||
Employee Benefit Plans | |||
Pension gain (expense) | 100 | (46) | 100 |
Employee benefit plan obligations included in other long-term liabilities | 900 | 1,000 | |
Restricted stock units | |||
Employee Benefit Plans | |||
Fair value of restricted stock and restricted stock units, vested | $ 2,600 | $ 9,400 | $ 10,400 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid during the year for: | |||
Interest | $ 27,297 | $ 17,501 | $ 16,078 |
Income taxes, net of refunds | 20,162 | 5,836 | (16,695) |
Supplemental disclosures of non-cash investing and financing activities: | |||
Additions to property, plant and equipment included in accounts payable | 943 | 1,039 | 581 |
Additions to property, plant and equipment acquired under finance leases | $ 0 | $ 0 | $ 9 |
Supplemental Disclosure for A_3
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 403,009 | $ 465,358 | $ 440,032 |
Other comprehensive income (loss) before reclassifications | (895) | 4,067 | (5,704) |
Tax (expense) benefit | 809 | 1,013 | (297) |
Amounts reclassed from accumulated other comprehensive income (loss) | (788) | 13,145 | 2,374 |
Tax (expense) benefit | 789 | 978 | 0 |
Total other comprehensive income (loss) | (87) | (9,043) | (8,375) |
Balance at end of period | 251,738 | 403,009 | 465,358 |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (90,681) | (75,601) | (61,178) |
Other comprehensive income (loss) before reclassifications | 6,775 | (15,080) | (14,423) |
Tax (expense) benefit | 0 | 0 | 0 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Tax (expense) benefit | 0 | 0 | 0 |
Total other comprehensive income (loss) | 6,775 | (15,080) | (14,423) |
Balance at end of period | (83,906) | (90,681) | (75,601) |
Cash Flow Hedges | Forward Contracts | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 2,397 | 4,344 | 850 |
Other comprehensive income (loss) before reclassifications | (1,461) | 11,097 | 5,860 |
Tax (expense) benefit | 753 | 1,079 | 8 |
Amounts reclassed from accumulated other comprehensive income (loss) | (788) | 13,145 | 2,374 |
Tax (expense) benefit | 789 | 978 | 0 |
Total other comprehensive income (loss) | (709) | (1,947) | 3,494 |
Balance at end of period | 1,688 | 2,397 | 4,344 |
Pension Plan | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 11,966 | 3,982 | 1,428 |
Other comprehensive income (loss) before reclassifications | (6,209) | 8,050 | 2,859 |
Tax (expense) benefit | 56 | (66) | (305) |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Tax (expense) benefit | 0 | 0 | 0 |
Total other comprehensive income (loss) | (6,153) | 7,984 | 2,554 |
Balance at end of period | 5,813 | 11,966 | 3,982 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (76,318) | (67,275) | (58,900) |
Total other comprehensive income (loss) | (87) | (9,043) | (8,375) |
Balance at end of period | $ (76,405) | $ (76,318) | $ (67,275) |
Major Customer, Segment and G_3
Major Customer, Segment and Geographic Information - Information by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Summary information by operating segment | |||
Net sales | $ 1,412,384 | $ 1,682,439 | $ 1,870,036 |
Operating income (loss) | (143,024) | (1,473) | 92,637 |
Depreciation and amortization | 24,428 | 22,631 | 29,108 |
Long-term assets | 267,340 | 292,828 | 345,964 |
Total assets | 978,030 | 1,238,128 | 1,368,719 |
Operating segments | Americas | |||
Summary information by operating segment | |||
Net sales | 640,779 | 744,027 | 785,923 |
Operating income (loss) | 82,746 | 116,401 | 157,012 |
Depreciation and amortization | 3,734 | 4,834 | 6,227 |
Long-term assets | 72,512 | 84,247 | 91,840 |
Total assets | 266,691 | 343,556 | 332,822 |
Operating segments | Europe | |||
Summary information by operating segment | |||
Net sales | 437,358 | 541,343 | 610,217 |
Operating income (loss) | 40,962 | 91,087 | 109,964 |
Depreciation and amortization | 4,907 | 5,856 | 9,000 |
Long-term assets | 76,115 | 86,200 | 102,437 |
Total assets | 213,929 | 269,097 | 329,579 |
Operating segments | Asia | |||
Summary information by operating segment | |||
Net sales | 328,198 | 377,600 | 455,157 |
Operating income (loss) | 38,162 | 52,090 | 70,949 |
Depreciation and amortization | 2,508 | 3,071 | 3,969 |
Long-term assets | 58,192 | 48,054 | 60,373 |
Total assets | 191,886 | 206,925 | 215,611 |
Corporate | |||
Summary information by operating segment | |||
Net sales | 6,049 | 19,469 | 18,739 |
Operating income (loss) | (304,894) | (261,051) | (245,288) |
Depreciation and amortization | 13,279 | 8,870 | 9,912 |
Long-term assets | 60,521 | 74,327 | 91,314 |
Total assets | $ 305,524 | $ 418,550 | $ 490,707 |
Major Customer, Segment and G_4
Major Customer, Segment and Geographic Information - Revenue for Each Class of Similar Products (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Net sales for each class of similar products | |||
Net sales | $ 1,412,384 | $ 1,682,439 | $ 1,870,036 |
Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 100% | 100% | 100% |
Total watches | |||
Net sales for each class of similar products | |||
Net sales | $ 1,096,026 | $ 1,310,491 | $ 1,512,398 |
Total watches | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 77.60% | 77.90% | 80.90% |
Traditional Watches | |||
Net sales for each class of similar products | |||
Net sales | $ 1,015,077 | $ 1,158,889 | $ 1,288,499 |
Traditional Watches | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 71.90% | 68.90% | 68.90% |
Smartwatches | |||
Net sales for each class of similar products | |||
Net sales | $ 80,949 | $ 151,602 | $ 223,899 |
Smartwatches | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 5.70% | 9% | 12% |
Leathers | |||
Net sales for each class of similar products | |||
Net sales | $ 158,427 | $ 178,542 | $ 157,642 |
Leathers | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 11.20% | 10.60% | 8.40% |
Jewelry | |||
Net sales for each class of similar products | |||
Net sales | $ 131,410 | $ 154,105 | $ 158,845 |
Jewelry | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 9.30% | 9.20% | 8.50% |
Other | |||
Net sales for each class of similar products | |||
Net sales | $ 26,521 | $ 39,301 | $ 41,151 |
Other | Revenue Benchmark | Licensed products | |||
Net sales for each class of similar products | |||
Concentration risk percentage | 1.90% | 2.30% | 2.20% |
Major Customer, Segment and G_5
Major Customer, Segment and Geographic Information - Net Sales and Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Summary information by operating segment | |||
Net sales | $ 1,412,384 | $ 1,682,439 | $ 1,870,036 |
Long-term assets | 267,340 | 292,828 | 345,964 |
United States | |||
Summary information by operating segment | |||
Net sales | 514,666 | 619,981 | 682,900 |
Long-term assets | 107,085 | 133,100 | 150,119 |
Europe | |||
Summary information by operating segment | |||
Net sales | 438,148 | 543,585 | 614,249 |
Long-term assets | 85,575 | 96,365 | 117,713 |
Asia | |||
Summary information by operating segment | |||
Net sales | 330,869 | 381,845 | 458,241 |
Long-term assets | 64,211 | 53,050 | 65,693 |
All other international | |||
Summary information by operating segment | |||
Net sales | 128,701 | 137,028 | 114,646 |
Long-term assets | 10,469 | 10,313 | 12,439 |
Germany | |||
Summary information by operating segment | |||
Net sales | 173,300 | 194,100 | 237,100 |
China | |||
Summary information by operating segment | |||
Net sales | $ 140,400 | $ 174,200 | $ 261,400 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - TAG Plan - USD ($) $ in Millions | Dec. 27, 2025 | Dec. 30, 2023 |
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring charges | $ 35 | |
Adjusted gross margins achievement percentage | 50% | |
Adjusted operating margins achievement percentage | 10% | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring charges | $ 100 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring charges | $ 120 | |
Forecast | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, annualized benefits cost | $ 300 |
Restructuring - Schedule of TAG
Restructuring - Schedule of TAG Plan charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 43,279 | $ 6,121 | $ 21,889 |
TAG Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 48,816 | ||
Cost of Sales | TAG Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 5,537 | ||
Selling, general and administrative expenses | TAG Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 43,279 |
Restructuring - Liability Incur
Restructuring - Liability Incurred for Restructuring Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 43,279 | $ 6,121 | $ 21,889 |
TAG Plan | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charges | 48,816 | ||
Cash payments | 29,198 | ||
Non-cash items | 7,563 | ||
Balance at end of period | 12,055 | 0 | |
TAG Plan | Stores and facilities closures | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charges | 7,245 | ||
Cash payments | 0 | ||
Non-cash items | 7,245 | ||
Balance at end of period | 0 | 0 | |
TAG Plan | Professional services | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charges | 6,648 | ||
Cash payments | 6,531 | ||
Non-cash items | 0 | ||
Balance at end of period | 117 | 0 | |
TAG Plan | Severance and employee-related benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charges | 29,386 | ||
Cash payments | 20,951 | ||
Non-cash items | 318 | ||
Balance at end of period | 8,117 | 0 | |
TAG Plan | Charges related to exits of certain product offerings | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charges | 5,537 | ||
Cash payments | 1,716 | ||
Non-cash items | 0 | ||
Balance at end of period | 3,821 | 0 | |
New World Fossil 2.0 | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 2,895 | 5,331 | 10,261 |
Charges | 48,816 | 6,121 | 21,889 |
Cash payments | 2,895 | 7,778 | 26,164 |
Non-cash items | 779 | 655 | |
Balance at end of period | 0 | 2,895 | 5,331 |
New World Fossil 2.0 | Store closures | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | 300 | 240 |
Charges | 787 | 1,215 | |
Cash payments | 612 | 500 | |
Non-cash items | 475 | 655 | |
Balance at end of period | 0 | 300 | |
New World Fossil 2.0 | Professional services | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 74 | 643 | 2,280 |
Charges | 166 | 5,695 | |
Cash payments | 74 | 735 | 7,332 |
Non-cash items | 0 | 0 | |
Balance at end of period | 0 | 74 | 643 |
New World Fossil 2.0 | Severance and employee-related benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 2,821 | 4,388 | 7,741 |
Charges | 5,168 | 14,979 | |
Cash payments | 2,821 | 6,431 | 18,332 |
Non-cash items | 304 | 0 | |
Balance at end of period | $ 0 | $ 2,821 | $ 4,388 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 43,279 | $ 6,121 | $ 21,889 |
New World Fossil 2.0 | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 48,816 | 6,121 | 21,889 |
Operating segments | New World Fossil 2.0 | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 4,582 | 234 | 2,356 |
Operating segments | New World Fossil 2.0 | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 9,812 | 1,754 | 9,868 |
Operating segments | New World Fossil 2.0 | Asia | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 12,519 | 1,610 | 5,072 |
Corporate | New World Fossil 2.0 | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 21,903 | $ 2,523 | $ 4,593 |
SCHEDULE II VALUATIONS AND QU_2
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Bad debts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 14,647 | $ 16,388 | $ 20,774 |
Charged to Operations | 3,535 | 6,305 | 3,070 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 5,566 | 8,046 | 7,456 |
Balance at End of Period | 12,616 | 14,647 | 16,388 |
Markdowns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 8,461 | 13,768 | 15,613 |
Charged to Operations | 31,325 | 23,736 | 27,385 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 32,243 | 29,043 | 29,230 |
Balance at End of Period | 7,543 | 8,461 | 13,768 |
Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 35,820 | 40,121 | 49,826 |
Charged to Operations | 95,812 | 90,092 | 75,936 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 98,234 | 94,393 | 85,641 |
Balance at End of Period | 33,398 | 35,820 | 40,121 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 143,346 | 122,953 | 109,250 |
Charged to Operations | 50,493 | 14,794 | 20,535 |
Charged to Other Accounts | 1,769 | 5,599 | (2,706) |
Actual Returns or Writeoffs | 3,005 | 0 | 4,126 |
Balance at End of Period | $ 192,603 | $ 143,346 | $ 122,953 |