Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 14, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Fossil Group, Inc. | ||
Entity Central Index Key | 883,569 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 838.5 | ||
Entity Common Stock, Shares Outstanding (in shares) | 49,607,772 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 403,373 | $ 231,244 |
Accounts receivable-net | 328,022 | 367,013 |
Inventories | 377,622 | 573,788 |
Prepaid expenses and other current assets | 149,552 | 118,943 |
Total current assets | 1,258,569 | 1,290,988 |
Property, plant and equipment-net | 183,203 | 219,742 |
Intangible and other assets-net | 133,426 | 147,642 |
Total long-term assets | 316,629 | 367,384 |
Total assets | 1,575,198 | 1,658,372 |
Current liabilities: | ||
Accounts payable | 169,561 | 204,981 |
Short-term and current portion of long-term debt | 126,427 | 2,144 |
Accrued expenses: | ||
Compensation | 76,467 | 70,725 |
Royalties | 30,582 | 39,874 |
Customer liabilities | 71,252 | 27,946 |
Transaction taxes | 32,438 | 36,547 |
Other | 70,614 | 109,211 |
Income taxes payable | 28,462 | 17,660 |
Total current liabilities | 605,803 | 509,088 |
Long-term income taxes payable | 28,110 | 47,093 |
Deferred income tax liabilities | 2,439 | 1,096 |
Long-term debt | 269,788 | 443,942 |
Other long-term liabilities | 80,427 | 76,206 |
Total long-term liabilities | 380,764 | 568,337 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Common stock, 49,518 and 48,643 shares issued and outstanding at December 29, 2018 and December 30, 2017, respectively | 495 | 486 |
Additional paid-in capital | 268,113 | 242,263 |
Retained earnings | 381,626 | 409,653 |
Accumulated other comprehensive income (loss) | (64,691) | (76,269) |
Total Fossil Group, Inc. stockholders' equity | 585,543 | 576,133 |
Noncontrolling interest | 3,088 | 4,814 |
Total stockholders' equity | 588,631 | 580,947 |
Total liabilities and stockholders' equity | $ 1,575,198 | $ 1,658,372 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 49,517,817 | 48,642,703 |
Common stock, shares outstanding (in shares) | 49,518,000 | 48,643,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 2,541,488 | $ 2,788,163 | $ 3,042,371 |
Cost of sales | 1,201,351 | 1,429,324 | 1,464,185 |
Gross profit | 1,340,137 | 1,358,839 | 1,578,186 |
Operating expenses: | |||
Selling, general and administrative expenses | 1,224,584 | 1,327,816 | 1,423,262 |
Goodwill and trade name impairments | 6,212 | 407,128 | 0 |
Restructuring charges | 46,630 | 48,171 | 27,778 |
Total operating expenses | 1,277,426 | 1,783,115 | 1,451,040 |
Operating income (loss) | 62,711 | (424,276) | 127,146 |
Interest expense | 42,503 | 43,214 | 26,894 |
Other income (expense) - net | (38) | 13,736 | 14,056 |
Income (loss) before income taxes | 20,170 | (453,754) | 114,308 |
Provision for income taxes | 21,108 | 19,805 | 28,705 |
Net income (loss) | (938) | (473,559) | 85,603 |
Less: Net income attributable to noncontrolling interest | 2,540 | 4,613 | 6,735 |
Net income (loss) attributable to Fossil Group, Inc. | (3,478) | (478,172) | 78,868 |
Other comprehensive income (loss), net of taxes: | |||
Currency translation adjustment | (10,369) | 37,368 | (20,160) |
Cash flow hedges - net change | 20,673 | (20,448) | 2,929 |
Pension plan activity | 3,267 | 2,235 | 2,313 |
Total other comprehensive income (loss) | 13,571 | 19,155 | (14,918) |
Total comprehensive income (loss) | 12,633 | (454,404) | 70,685 |
Less: Comprehensive income attributable to noncontrolling interest | 2,540 | 4,613 | 6,735 |
Comprehensive income (loss) attributable to Fossil Group, Inc. | $ 10,093 | $ (459,017) | $ 63,950 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (0.07) | $ (9.87) | $ 1.64 |
Diluted (in dollars per share) | $ (0.07) | $ (9.87) | $ 1.63 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 49,196 | 48,468 | 48,136 |
Diluted (in shares) | 49,196 | 48,468 | 48,323 |
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, 2016 | 48,125,000 | |||||||
Balance at beginning of period at Jan. 02, 2016 | $ 932,543 | $ 921,388 | $ 481 | $ 187,456 | $ 0 | $ 813,957 | $ (80,506) | $ 11,155 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 310,000 | |||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units | 96 | 96 | $ 3 | 93 | ||||
Tax benefit (expense) derived from stock-based compensation | (2,995) | (2,995) | (2,995) | |||||
Acquisition of common stock | (7,237) | (7,237) | 247 | (7,484) | ||||
Retirement of common stock (in shares) | (166,000) | |||||||
Retirement of common stock | 0 | $ (1) | (2,483) | 7,484 | (5,000) | |||
Stock-based compensation | 31,034 | 31,034 | 31,034 | |||||
Net income (loss) | 85,603 | 78,868 | 78,868 | 6,735 | ||||
Other comprehensive income (loss) | (14,918) | (14,918) | (14,918) | |||||
Distribution of noncontrolling interest earnings and other | (8,688) | (8,688) | ||||||
Balance at end of period (in shares) at Dec. 31, 2016 | 48,269,000 | |||||||
Balance at end of period at Dec. 31, 2016 | 1,015,438 | 1,006,236 | $ 483 | 213,352 | 0 | 887,825 | (95,424) | 9,202 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 467,000 | |||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units | 0 | $ 4 | (4) | |||||
Acquisition of common stock | (1,218) | (1,218) | 126 | (1,344) | ||||
Retirement of common stock (in shares) | (93,000) | |||||||
Retirement of common stock | 0 | $ (1) | (1,343) | 1,344 | ||||
Stock-based compensation | 31,604 | 31,604 | 31,604 | |||||
Net income (loss) | (473,559) | (478,172) | (478,172) | 4,613 | ||||
Other comprehensive income (loss) | 19,155 | 19,155 | 19,155 | |||||
Distribution of noncontrolling interest earnings and other | (4,022) | (4,022) | ||||||
Purchase of noncontrolling interest shares | $ (6,451) | (1,472) | (1,472) | (4,979) | ||||
Balance at end of period (in shares) at Dec. 30, 2017 | 48,642,703 | 48,643,000 | ||||||
Balance at end of period at Dec. 30, 2017 | $ 580,947 | 576,133 | $ 486 | 242,263 | 0 | 409,653 | (76,269) | 4,814 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 1,055,000 | |||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units | 298 | 298 | $ 11 | 287 | ||||
Acquisition of common stock | (2,856) | (2,856) | (2,856) | |||||
Retirement of common stock (in shares) | (180,000) | |||||||
Retirement of common stock | 0 | $ (2) | (2,854) | 2,856 | ||||
Stock-based compensation | 28,376 | 28,376 | 28,376 | |||||
Net income (loss) | (938) | (3,478) | (3,478) | 2,540 | ||||
Other comprehensive income (loss) | 13,571 | 13,571 | 13,571 | |||||
Distribution of noncontrolling interest earnings and other | (4,225) | 41 | 41 | (4,266) | ||||
Adoption of ASU 2018-02 | 1,993 | (1,993) | ||||||
Purchase of noncontrolling interest shares | $ (2,200) | |||||||
Balance at end of period (in shares) at Dec. 29, 2018 | 49,517,817 | 49,518,000 | ||||||
Balance at end of period at Dec. 29, 2018 | $ 588,631 | $ 585,543 | $ 495 | $ 268,113 | $ 0 | $ 381,626 | $ (64,691) | $ 3,088 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income (loss) | $ (938) | $ (473,559) | $ 85,603 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 67,584 | 80,973 | 94,592 |
Stock-based compensation | 23,044 | 30,400 | 31,034 |
Decrease in allowance for returns and markdowns | (13,987) | (336) | (3,600) |
Loss (gain) on disposal of assets | 656 | 2,510 | (9,851) |
Fixed asset and other long-lived asset impairment losses | 2,039 | 3,213 | 2,828 |
Goodwill and trade name impairment losses | 6,212 | 407,128 | 0 |
Non-cash restructuring charges | 6,252 | 10,684 | 15,745 |
Equity method investment losses | 558 | 460 | 1,321 |
Increase (decrease) in allowance for doubtful accounts | 8,921 | 7,140 | (2,819) |
Loss on extinguishment of debt | 718 | 1,029 | 0 |
Debt issuance costs amortization | 3,714 | 3,724 | 1,843 |
Deferred income taxes and other | 6,435 | (47,215) | (20,409) |
Gain on business divestiture | 0 | (1,750) | (3,500) |
Contingent consideration remeasurement | (3,381) | 0 | 0 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | 68,308 | 14,367 | (12,900) |
Inventories | 153,445 | 6,829 | 64,827 |
Prepaid expenses and other current assets | (15,356) | 13,509 | 26,098 |
Accounts payable | (38,365) | 34,864 | (43,020) |
Accrued expenses | (13,477) | 52,761 | (20,116) |
Income taxes | (14,243) | 32,811 | 2,451 |
Net cash provided by operating activities | 248,139 | 179,542 | 210,127 |
Investing Activities: | |||
Additions to property, plant and equipment | (17,961) | (25,520) | (65,674) |
Decrease (increase) in intangible and other assets | 1,626 | (1,639) | 766 |
Proceeds from the sale of property, plant, equipment and other | 717 | 548 | 44,908 |
Misfit escrow receipts | 0 | 0 | 3,341 |
Net investment hedge settlement | 0 | 0 | 752 |
Business divestiture | 0 | 1,750 | 3,500 |
Net cash used in investing activities | (15,618) | (24,861) | (12,407) |
Financing Activities: | |||
Acquisition of common stock | (2,856) | (1,218) | (7,237) |
Distribution of noncontrolling interest earnings and other | (4,224) | (4,022) | (8,688) |
Debt borrowings | 811,007 | 2,128,181 | 1,035,838 |
Debt payments | (857,474) | (2,318,246) | (1,207,205) |
Payment for shares | (1,947) | 0 | (8,657) |
Other financing activities | (7,163) | (6,405) | (2,545) |
Net cash used in financing activities | (62,657) | (201,710) | (198,494) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 9,364 | (19,178) | 8,817 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 179,228 | (66,207) | 8,043 |
Cash and cash equivalents, and restricted cash: | |||
Beginning of year | 231,655 | 297,862 | 289,819 |
End of year | $ 410,883 | $ 231,655 | $ 297,862 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 , 2017 and 2016 are for the fiscal years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. All intercompany balances and transactions are eliminated in consolidation. Effective for the fourth quarter of fiscal year 2018, the Company made changes to the presentation of reportable segments to reflect changes in the way its chief operating decision maker evaluates the performance of its operations, develops strategy, and allocates capital resources. Certain peripheral revenue generating activities related to the Company's factories and intellectual property previously recorded within the Company's Americas, Asia and Europe segments have been reclassified to Corporate. The Company's historical segment disclosures have been recast to be consistent with its current presentation. 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, inventories, long-lived assets and trade names, income taxes, warranty costs, hedge accounting and stock-based compensation. Management bases its estimates and judgments on historical experience and on various other factors that it believes are 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 under different assumptions or conditions. 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 or economic disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. In fiscal year 2018 , 49% of the Company's global watch production was assembled or procured through wholly or majority-owned factories. 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 46.6% , 47.0% and 47.6% of the consolidated net sales for fiscal years 2018 , 2017 and 2016 , respectively, of which MICHAEL KORS ® product sales accounted for 22.6% of the consolidated net sales for both fiscal year 2018 and 2017 and 22.7% for fiscal year 2016 . Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. Restricted Cash was comprised of long-term restricted cash balances of $7.5 million and $0.4 million as of December 29, 2018 and December 30, 2017 , respectively, primarily for pledged collateral to secure bank guarantees for the purpose of obtaining retail space. This restricted cash is reported in intangible and other assets—net in the Company’s consolidated balance sheets as a component of long-term assets. Accounts Receivable at the end of fiscal years 2018 and 2017 are stated net of doubtful accounts of approximately $14.0 million and $12.9 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 2018 and 2017 , was $43.7 million and $54.5 million , respectively. Investments in which the Company has significant influence over the investee are accounted for utilizing the equity method. If the Company does not have significant influence over the investee, the cost method is utilized. The Company's cost method investment was $0.5 million at the end of both fiscal years 2018 and 2017 . 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 to seven years for computer equipment and software. Leasehold improvements are amortized over the shorter of the lease term or the asset's estimated useful life. Property, plant and equipment 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. Property, plant and equipment impairment losses of underperforming Company-owned retail stores of approximately $1.7 million , $8.0 million and $13.5 million were recorded in restructuring charges in fiscal years 2018 , 2017 and 2016 , respectively, and impairment losses of approximately $1.9 million , $1.3 million and $0.8 million were recorded in selling, general, and administrative ("SG&A") in fiscal years 2018 , 2017 and 2016 , respectively. Additionally, in fiscal years 2018, 2017 and 2016, the Company recorded non-impairment losses related to the disposal of property, plant and equipment of $0.6 million , $0.4 million and $1.5 million , respectively, included in restructuring charges in the Company’s consolidated statements of income (loss) and comprehensive income (loss). Goodwill and Other Intangible Assets include the acquisition cost in excess of net assets acquired (goodwill), trademarks, trade names, developed technology, customer lists and patents. Trademarks, trade names with finite lives, developed technology, customer lists and patents are amortized using the straight-line method over their estimated useful lives, which are generally three to 20 years . Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually as of the end of the fiscal year. Additionally, if events or conditions were to indicate an indefinite-lived intangible asset may not be recoverable, the Company would evaluate the asset for impairment at that time. Impairment testing compares the other intangible assets with its fair value. When the carrying amount of the intangible assets exceeds its fair value, an impairment charge is recorded. The Company had three reporting units for which it evaluated goodwill for impairment. In fiscal year 2017, goodwill was deemed fully impaired and accordingly the Company recognized a pre-tax impairment charge in operations of $202.3 million , $114.3 million and $42.9 million in the Americas, Europe and Asia segments, respectively. The fair values of the Company's indefinite-lived SKAGEN ® and MICHELE ® trade names were estimated using the relief from royalty method. During the second quarter of fiscal 2018, the SKAGEN trade name with a carrying amount of $27.3 million was written down to its implied fair value of $21.1 million , resulting in a pre-tax impairment charge of $6.2 million . A reduction in expected future cash flows negatively affected the valuation compared to previous valuation assumptions. Due to the inherent uncertainties involved in making the estimates and assumptions used in the fair value analysis, actual results may differ, which could alter the fair value of the trade names and possibly result in impairment charges in future periods. In fiscal year 2017 , impairment charges of $28.3 million , $11.8 million and $7.6 million were recorded related to the SKAGEN, MISFIT ® and MICHELE trade names, respectively. No impairment charges were recorded in fiscal year 2016 . Accrued Expenses includes liabilities relating to warranties, duty, deferred compensation, gift cards, foreign exchange forward contracts ("forward contracts"), deferred rent, and other accrued liabilities which are current in nature. Other Long-Term Liabilities includes obligations relating to asset retirements, deferred rent, forward contracts and defined benefits relating to certain international employees 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 net foreign currency transaction gains (losses), including gains and losses associated with the settlement of forward contracts, of approximately $(5.8) million , $7.8 million and $8.7 million for fiscal years 2018 , 2017 and 2016 , respectively. These net gains (losses) have been included in other income (expense)—net in the Company's consolidated statements of income (loss) and comprehensive income (loss). Litigation Liabilities are estimated amounts for claims that are probable and can be reasonably estimated and are recorded in accrued expenses-other in the Company's consolidated balance sheets. The likelihood of a material change in these estimated liabilities would be dependent on new claims that may arise, changes in the circumstances used to estimate amounts for prior period claims and favorable or unfavorable final settlements of prior period claims. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or circumstances change relative to prior claim assessments, revisions in estimates of the potential liability could materially impact the Company's consolidated results of operations and financial position. Revenues from sales of the Company's products including those that are subject to inventory consignment agreements 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 and may request that a customer return a product if the customer has an excess of any style that the Company has identified as being a poor performer for that customer or geographic location. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience and any specific issues identified. In fiscal year 2018, under ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), 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. In fiscal year 2017, under prior accounting guidance, product returns were accounted for as reductions to revenue, cost of sales, accounts receivable and an increase in inventory to the extent the returned product is resalable. While returns have historically been within management's expectations and the provisions established, future return rates may differ from those experienced in the past. In the event that the Company's products are performing poorly in the retail market and/or it experiences product damages or defects at a rate significantly higher than the historical rate, the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur. The Company recorded an estimated returns provision of approximately $67.1 million in accrued expenses and $75.2 million in accounts receivable-net as of the end of fiscal years 2018 and 2017 , 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 and 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. 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 SG&A, goodwill and trade name 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 "back office" or support costs such as treasury, legal, information services, accounting, internal audit, human resources, executive management costs and costs associated with stock-based compensation. Restructuring charges include costs to reorganize, refine and optimize the Company’s infrastructure and store closures. See Note 20—Restructuring for additional information on the Company’s restructuring plan. Advertising Costs for in-store and media advertising as well as co-op advertising, catalog costs, product displays, show/exhibit costs, advertising royalties related to the sales of licensed brands, internet costs associated with affiliation fees, printing, sample costs and promotional allowances are expensed as incurred within SG&A. Advertising costs were $181.0 million , $207.1 million and $238.4 million for fiscal years 2018 , 2017 and 2016 , 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 5—Warranty Liabilities, for more information regarding warranties. Research and Development Costs are incurred primarily through the Company's in-house engineering team and also through some outside 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 $38.2 million , $42.8 million and $38.6 million in fiscal years 2018 , 2017 and 2016 , 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 2018 2017 2016 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (3,478 ) $ (478,172 ) $ 78,868 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 49,196 48,468 48,136 Basic EPS $ (0.07 ) $ (9.87 ) $ 1.64 Diluted EPS computation: Basic weighted average common shares outstanding 49,196 48,468 48,136 Stock options, stock appreciation rights and restricted stock units — — 187 Diluted weighted average common shares outstanding 49,196 48,468 48,323 Diluted EPS $ (0.07 ) $ (9.87 ) $ 1.63 Approximately 5.1 million and 4.6 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in fiscal years 2018 and 2017 , respectively, because they were antidilutive, including approximately 1.2 million weighted performance-based shares in both fiscal years. Approximately 2.3 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in fiscal year 2016 because they were antidilutive. Approximately 0.3 million weighted average performance-based shares were not included in the diluted EPS calculation in fiscal year 2016 as the performance targets were not met. 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 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. Accounting for the income tax effects of the Tax Act requires significant judgments and estimates in the interpretation and calculations of the provisions of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements for fiscal year 2017 as permitted under Staff Accounting Bulletin No. 118, (“SAB 118”) Income Tax Accounting Implications of the Tax Cuts and Jobs Act. During 2018, the Company completed its accounting for the tax effects of the enactment of the Tax Act and made adjustments to the provisional amounts. In addition, 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 August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14") . ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The guidance is effective for fiscal years ending after December 15, 2020. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 eliminates certain disclosure requirements related to the fair value hierarchy, adds new disclosure requirements related to the changes in unrealized gains and losses for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements and modifies certain disclosure requirements related to measurement uncertainty for fair value measurements. The guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 amends and simplifies hedge accounting guidance in order to enable entities to better portray the economics of their risk management activities. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted ASU 2017-12 on the first day of fiscal year 2019. Adoption will result in a portion of hedge settlement activity being recognized in cost of sales. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification® (“ASU 2016-02”), which supersedes the existing guidance for lease accounting, Leases (Topic 840) . In order to improve transparency and comparability between companies, ASU 2016-02 requires lessees to recognize leases on their balance sheets, and modifies accounting, presentation and disclosure for both lessors and lessees. The Company's leases primarily consist of retail space, offices, warehouses, distribution centers and vehicles. The Company has substantially completed its assessment of the standard as well as implementation of its leasing software, including data upload, and is continuing to finalize its calculations, including validation procedures. The Company is continuing to establish new processes and internal controls required to comply with the new lease accounting and disclosure requirements set by the new standard. ASU 2016-02 is effective for annual periods, and interim periods within those years, beginning after December 15, 2018. The Company is using the package of practical expedients that allows companies to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company is making accounting policy elections to treat the lease and non-lease components of leases as a single lease component and to exempt leases with an initial term of twelve months or less from balance sheet recognition. Consequently, short-term leases will be expensed over the lease term. The Company is not electing to adopt the hindsight practical expedient and therefore will maintain the lease terms previously determined under ASC 840. The Company is adopting ASU 2016-02 in the first quarter of fiscal year 2019 using the modified retrospective approach. As part of the adoption, the Company is assessing right-of-use assets for impairment. Although the Company is continuing to assess the potential impacts of ASU 2016-02, the Company expects to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption as a result of previous store impairment and a previous sale leaseback transaction, and the Company estimates recording right-of-use assets and lease liabilities in the range of $330 million to $430 million . The standard is not expected to have a significant impact on the Company's consolidated results of operations or cash flows. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09 and subsequently issued guidance that amended ASU 2014-09. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on December 31, 2017, the first day of fiscal 2018, using the modified retrospective approach. Under this method of adoption, guidance in ASU 2014-09 was applied to open contracts as of December 30, 2017, the end of fiscal 2017. The cumulative effect of initially applying the new revenue standard was a reduction to opening retained earnings, with the impact primarily related to the accelerated recognition of markdowns. Results from reporting periods beginning on December 31, 2017 are presented under ASU 2014-09, while prior period amounts are not adjusted. See Note 2—Revenue for additional disclosures about the Company’s revenue recognition policy and the impact of adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) : Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires that a statement of cash flows explain the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 was effective for the Company beginning fiscal year 2018 and changed the presentation of the condensed consolidated statements of cash flows to now include restricted cash and cash equivalents as well as previously reported cash and cash equivalents in reconciling the period change. The Company adopted ASU 2016-18 using a retrospective transition method. The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 29, 2018 , December 30, 2017 and December 31, 2016 that are presented in the condensed consolidated statement of cash flows (in thousands): December 29, 2018 December 30, 2017 December 31, 2016 Cash and cash equivalents $ 403,373 $ 231,244 $ 297,330 Restricted cash included in prepaid expenses and other current assets 31 34 32 Restricted cash included in intangible and other assets-net 7,479 377 500 Cash, cash equivalents and restricted cash $ 410,883 $ 231,655 $ 297,862 In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The guidance allows reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the application of the U.S. Tax Cuts and Jobs Act. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company elected to early adopt this guidance during the fourth quarter of fiscal year 2018, resulting in the reclassification of $2.0 million of stranded tax effects from accumulated other comprehensive income to retained earnings. The following provisions, which had no material impact on the Company’s financial position, results of operations or cash flows, were also adopted effective the first quarter of fiscal year 2018: • ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities • ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting • ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business • ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments • ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20)- Recognition of Breakage for Certain Prepaid Stored-Value Products |
Goodwill
Goodwill | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill. In fiscal year 2017, the Company determined goodwill was fully impaired. The changes in the carrying amount of goodwill were as follows (in thousands): Americas Europe Asia Total Balance at December 31, 2016 $ 202,187 $ 110,291 $ 42,785 $ 355,263 Foreign currency changes 162 3,983 85 4,230 Impairment charges (202,349 ) (114,274 ) (42,870 ) (359,493 ) Balance at December 30, 2017 $ — $ — $ — $ — |
Revenue
Revenue | 12 Months Ended |
Dec. 29, 2018 | |
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. The following tables summarize the impact of adopting ASU 2014-09 on the Company's consolidated balance sheets as of December 29, 2018 and the Company's condensed consolidated statements of income (loss) and comprehensive income (loss) for fiscal year 2018 (in thousands): December 29, 2018 As Reported Without Adoption of ASU 2014-09 Impact of Adoption of ASU 2014-09 Assets Accounts receivable $ 328,022 $ 301,217 $ 26,805 Inventories 377,622 401,317 (23,695 ) Prepaid expenses and other current assets 149,552 126,043 23,509 Liabilities Accrued expenses: Customer liabilities $ 71,252 $ 25,780 $ 45,472 December 29, 2018 As Reported Without Adoption of ASU 2014-09 Impact of Adoption of ASU 2014-09 Net sales $ 2,541,488 $ 2,551,962 $ (10,474 ) Cost of sales 1,201,351 1,201,165 186 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. Prior to the adoption of ASU 2014-09, markdowns were not recorded until agreed upon with the customer. The Company's policy is to record its markdown allowance as a reduction of accounts receivable. Returns. The Company accepts limited returns and may request that a customer return a product if the customer has an excess of any style that the Company has identified as being a poor performer for that customer or geographic location. 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, cost of sales, customer liabilities and an increase to other current assets to the extent the returned product is resalable. While returns have historically been within management's expectations and the provisions established, future return rates may differ from those experienced in the past. In the event that the Company's products are performing poorly in the retail market and/or it experiences product damages or defects at a rate significantly higher than the historical rate, the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur. 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 that were previously recorded in SG&A are now recorded as a sales discount due to the requirement under ASU 2014-09 that the service be considered distinct to qualify as a separate performance obligation. All other cooperative advertising expenses continue to be recorded in SG&A. Multiple Performance Obligations. The Company enters into contracts with customers for its wearable technology that includes 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. Disaggregation of Revenue. The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2018 Americas Europe Asia Corporate Total Product Type Watches $ 936,875 $ 656,948 $ 439,029 $ 169 $ 2,033,021 Leathers 171,808 67,264 50,313 — 289,385 Jewelry 50,266 111,603 5,906 — 167,775 Other 15,558 20,476 10,225 5,048 51,307 Consolidated $ 1,174,507 $ 856,291 $ 505,473 $ 5,217 $ 2,541,488 Timing of Revenue Recognition Revenue recognized at a point in time $ 1,172,200 $ 855,219 $ 504,956 $ 4,477 $ 2,536,852 Revenue recognized over time 2,307 1,072 517 740 4,636 Consolidated $ 1,174,507 $ 856,291 $ 505,473 $ 5,217 $ 2,541,488 Practical Expedients and Contract Balances. As of December 29, 2018 , the Company had no material contract assets on the consolidated balance sheets and no deferred contract costs. The Company had contract liabilities of $21.8 million as of December 29, 2018 and no contract liabilities as of December 30, 2017 related to remaining performance obligations on licensing income, contract liabilities of $6.2 million and $4.6 million as of December 29, 2018 and December 30, 2017 , respectively, primarily related to remaining performance obligations on wearable technology products and contract liabilities of $3.8 million and $7.2 million as of December 29, 2018 and December 30, 2017 , respectively, related to gift cards issued. The Company has also elected to adopt the practical expedient related to shipping and handling fees which allows the Company to account 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. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): At Fiscal Year End 2018 2017 Components and parts $ 28,183 $ 52,837 Work-in-process 9,458 15,983 Finished goods 339,981 504,968 Inventories $ 377,622 $ 573,788 |
Warranty Liabilities
Warranty Liabilities | 12 Months Ended |
Dec. 29, 2018 | |
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 against defects in materials or workmanship. Historically, the Company's FOSSIL ® and RELIC ® watch products sold in the U.S. have been covered for warranty periods of 11 years and 12 years, respectively, and SKAGEN brand watches have been covered by a lifetime warranty. Beginning in 2017, these brands are covered by a two year warranty. Generally, all other products sold in the U.S. and internationally are covered by a comparable one to two year warranty. 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 connected products, their warranty costs are usually more than traditional products. A shift in product mix from traditional to connected products generally results in an increase in the Company's warranty liabilities. Warranty liability activity consisted of the following (in thousands): Fiscal Year 2018 2017 2016 Beginning balance $ 19,405 $ 15,421 $ 13,669 Settlements in cash or kind (15,197 ) (15,177 ) (9,616 ) Warranties issued and adjustments to preexisting warranties (1) 18,599 19,161 11,368 Ending balance $ 22,807 $ 19,405 $ 15,421 ____________________________________________ (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. 29, 2018 | |
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 2018 2017 Prepaid royalties $ 43,074 $ 19,353 Prepaid taxes and tax receivables 37,587 41,811 Other receivables 7,092 12,659 Forward contracts 9,232 2,291 Inventory returns 23,509 — Prepaid rent 7,700 7,763 Property held for sale 1,135 12,273 Short term deposits 876 1,679 Other 19,347 21,114 Prepaid expenses and other current assets $ 149,552 $ 118,943 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 Land $ 7,736 $ 5,725 Buildings 37,766 30,887 Machinery and equipment 39,583 41,221 Furniture and fixtures 102,141 111,641 Computer equipment and software 243,490 243,199 Leasehold improvements 198,703 214,485 Construction in progress 7,103 4,498 636,522 651,656 Less accumulated depreciation and amortization 453,319 431,914 Property, plant and equipment-net $ 183,203 $ 219,742 |
Intangible and Other Assets
Intangible and Other Assets | 12 Months Ended |
Dec. 29, 2018 | |
INTANGIBLE AND OTHER ASSETS | |
Intangible and Other Assets | Intangible and Other Assets Intangible and other assets-net consisted of the following (in thousands): 2018 2017 At Fiscal Year End Useful Lives Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 4,293 $ 3,859 $ 4,310 $ 3,676 Customer lists 5 - 10 yrs. 52,635 38,028 55,164 34,023 Patents 3 - 20 yrs. 2,310 2,154 2,325 2,132 Noncompete agreement 3 - 6 yrs. — — 2,553 2,243 Developed technology 7 yrs. 36,100 15,471 36,100 10,314 Other 7 - 20 yrs. 261 247 266 241 Total intangibles-subject to amortization 95,599 59,759 100,718 52,629 Intangibles-not subject to amortization: Trade names 32,427 38,643 Other assets: Key money deposits 25,084 23,261 27,196 23,845 Other deposits 17,818 19,269 Deferred compensation plan assets 4,442 4,806 Deferred tax asset-net 23,695 27,112 Restricted cash 7,479 377 Shop-in-shop 6,054 6,023 8,864 8,606 Tax receivable 7,060 478 Forward contracts 453 147 Investments 500 500 Other 1,858 4,612 Total other assets 94,443 29,284 93,361 32,451 Total intangible and other assets $ 222,469 $ 89,043 $ 232,722 $ 85,080 Total intangible and other assets-net $ 133,426 $ 147,642 Key money is the amount of funds paid to a landlord or tenant to acquire the rights of tenancy under a commercial property lease for a certain property and is amortized over the initial lease term. Key money represents the "right to lease" with an automatic right of renewal. This right can be subsequently sold by the Company or can be recovered should the landlord refuse to allow the automatic right of renewal to be exercised. Amortization expense for intangible assets was approximately $11.9 million , $13.5 million and $15.0 million for fiscal years 2018 , 2017 and 2016 , respectively. Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization Expense 2019 $ 11,455 2020 10,933 2021 7,104 2022 6,247 2023 65 |
Derivatives and Risk Management
Derivatives and Risk Management | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management | Derivatives and Risk Management Cash Flow Hedges. The primary risks managed by using derivative instruments are the fluctuations in global currencies that will ultimately be used by non-U.S. dollar functional currency subsidiaries to settle future payments of intercompany inventory transactions denominated in U.S. dollars. Specifically, the Company projects future intercompany purchases by its non-U.S. dollar functional currency subsidiaries generally over a period of up to 24 months . The Company enters into forward contracts generally for up to 85% of its forecasted purchases to manage fluctuations in global currencies that will ultimately be used to settle such U.S. dollar denominated inventory purchases. Additionally, during the first quarter of fiscal year 2016, the Company entered into forward contracts to manage fluctuations in Japanese yen exchange rates that will be used to settle future third-party inventory component purchases by a U.S. dollar functional currency subsidiary. Forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date and exchange rate. These forward contracts are designated as single cash flow hedges. Fluctuations in exchange rates will either increase or decrease the Company's U.S. dollar equivalent cash flows from these inventory transactions, which will affect the Company's U.S. dollar earnings. Gains or losses on the forward contracts are expected to offset these fluctuations to the extent the cash flows are hedged by the forward contracts. These forward contracts meet the criteria for hedge accounting, which requires that they represent foreign currency-denominated forecasted transactions in which (i) the operating unit that has the foreign currency exposure is a party to the hedging instrument and (ii) the hedged transaction is denominated in a currency other than the hedging unit's functional currency. At the inception of each forward contract designated as a cash flow hedge, the hedging relationship is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk. The Company assesses hedge effectiveness under the critical terms matched method at inception and at least quarterly throughout the life of the hedging relationship. If the critical terms (i.e., amounts, currencies and settlement dates) of the forward contract match the terms of the forecasted transaction, the Company concludes that the hedge is effective. Hedge accounting is discontinued if it is determined that the derivative is not highly effective. For a derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, the Company's hedges resulted in no ineffectiveness in its consolidated statements of income (loss) and comprehensive income (loss), and there were no components excluded from the assessment of hedge effectiveness for fiscal years 2018 , 2017 and 2016 . All derivative instruments are recognized as either assets or liabilities at fair value in the consolidated balance sheets. The Company records all forward contract hedge assets and liabilities on a gross basis as they do not meet the balance sheet netting criteria because the Company does not have master netting agreements established with the derivative counterparties that would allow for net settlement. Derivatives designated as cash flow hedges are recorded at fair value at each balance sheet date and the change in fair value is recorded to accumulated other comprehensive income (loss) within the equity section of the Company's consolidated balance sheets until such derivative's gains or losses become realized or the cash flow hedge relationship is terminated. If the cash flow hedge relationship is terminated, the derivative's gains or losses that are recorded in accumulated other comprehensive income (loss) will be immediately recognized in earnings. During fiscal year 2017, the Company paid off its U.S.-based term loan which discontinued the interest rate swap cash flow hedge treatment resulting in a gain of $0.2 million being reclassified into other income (expense). There were no gains or losses reclassified into earnings as a result of the discontinuance of cash flow hedges for fiscal years 2018 and 2016 . As of December 29, 2018 , 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 143.3 U.S. dollar 172.4 Canadian dollar 60.0 U.S. dollar 46.3 British pound 21.6 U.S. dollar 28.7 Japanese yen 2,183.0 U.S. dollar 20.2 Mexican peso 396.6 U.S. dollar 19.8 Australian dollar 10.9 U.S. dollar 7.8 U.S. dollar 26.1 Japanese Yen 2,835.0 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 29, 2018 , the Company had non-designated forward contracts of approximately $1.2 million on 17.5 million rand, and as of December 30, 2017 , the Company had non-designated forward contracts of approximately $2.9 million on 39.8 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 2018 , 2017 and 2016 are set forth below (in thousands): Fiscal Year 2018 2017 2016 Cash flow hedges: Forward contracts $ 18,044 $ (25,088 ) $ 13,565 Interest rate swaps — 278 (730 ) Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 18,044 $ (24,810 ) $ 12,835 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 2018 , 2017 and 2016 (in thousands): Derivative Instruments Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Effect of Derivative Instruments Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ (2,629 ) $ (4,297 ) $ 10,986 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 244 $ (652 ) $ (82 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ (260 ) $ (1,080 ) Interest rate swap not designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) recognized in income $ 67 $ — $ — Interest rate swap not designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ 195 $ — 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 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 9,217 Prepaid expenses and other current assets $ 2,291 Accrued expenses-other $ 660 Accrued expenses-other $ 14,798 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets 15 Prepaid expenses and other current assets — Accrued expenses-other — Accrued expenses-other 362 Interest rate swap not designated as a cash flow hedging instrument Prepaid expenses and other current assets — Prepaid expenses and other current assets 195 Accrued expenses-other — Accrued expenses-other — Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 453 Intangible and other assets-net 147 Other long-term liabilities 70 Other long-term liabilities 2,725 Total $ 9,685 $ 2,633 $ 730 $ 17,885 At the end of fiscal year 2018 , the Company had forward contracts designated as cash flow hedges with maturities extending through June 2020. As of December 29, 2018 , an estimated net gain of $7.8 million is expected to be reclassified into earnings within the next twelve months at prevailing foreign currency exchange rates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 (in thousands): Fair Value at December 29, 2018 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 9,685 $ — $ 9,685 Deferred compensation plan assets: Investment in publicly traded mutual funds 4,442 — — 4,442 Total $ 4,442 $ 9,685 $ — $ 14,127 Liabilities: Contingent consideration $ — $ — $ 2,174 $ 2,174 Forward contracts — 730 — 730 Total $ — $ 730 $ 2,174 $ 2,904 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, 2017 (in thousands): Fair Value at December 30, 2017 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 2,438 $ — $ 2,438 Deferred compensation plan assets: Investment in publicly traded mutual funds 4,806 — — 4,806 Interest rate swaps — 195 — 195 Total $ 4,806 $ 2,633 $ — $ 7,439 Liabilities: Contingent consideration $ — $ — $ 6,452 $ 6,452 Forward contracts — 17,885 — 17,885 Total $ — $ 17,885 $ 6,452 $ 24,337 The fair values of the Company's deferred compensation plan assets are based on quoted prices. The deferred compensation plan assets are recorded in intangible and other assets—net in the Company's consolidated balance sheets. The fair values of the Company's forward contracts are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. The fair value of the Company's debt approximated its carrying amount as of December 29, 2018 . As of December 30, 2017 , debt, excluding unamortized debt issuance costs and capital leases, was recorded at cost and had a carrying value of $445.9 million and a fair value of approximately $439.2 million . The fair value of debt was obtained using observable market inputs. Property, plant and equipment—net with a carrying amount of $3.8 million related to retail store leasehold improvements and fixturing was written down to a fair value of $0.2 million and related key money in the amount of $0.2 million was deemed not recoverable, resulting in total impairment charges of $3.8 million for fiscal year 2018 . The fair values of assets related to Company-owned retail stores were determined using Level 3 inputs. Of the $3.8 million impairment expense, $1.8 million and $0.1 million were recorded in restructuring charges in the Europe and Americas segments, respectively and $1.6 million and $0.3 million were recorded in SG&A in the Americas and Europe segments, respectively. In fiscal year 2017 , property, plant and equipment—net with a carrying amount of $9.2 million related to retail store leasehold improvements and fixturing and related key money in the amount of $0.7 million was deemed not recoverable, resulting in total impairment charges of $9.9 million for fiscal year 2017 . The fair value of goodwill and trade names are measured on a non-recurring basis using Level 3 inputs, including forecasted cash flows, discounts rates and implied royalty rates. Trade name impairment charges are recorded in the Corporate cost area. See Note 1—Significant Accounting Policies for additional disclosures about goodwill and trade name impairment. In fiscal year 2018 , the SKAGEN trade name with a carrying amount of $27.3 million was written down to its implied fair value of $21.1 million , resulting in a pre-tax impairment charge of $6.2 million . In fiscal year 2017 , the Company fully impaired its goodwill balance and recorded pre-tax impairment charges of $202.3 million , $114.3 million and $42.9 million in the Americas, Europe and Asia segments, respectively. In fiscal year 2017 , the SKAGEN trade name with a carrying amount of $55.6 million was written down to its implied fair value of $27.3 million , resulting in a pre-tax impairment charge of $28.3 million ; the MISFIT trade name with a carrying amount of $11.8 million was deemed not recoverable, resulting in a pre-tax impairment charge of $11.8 million and the MICHELE trade name with a carrying amount of $18.5 million was written down to its implied fair value of $10.9 million , resulting in a pre-tax impairment charge of $7.6 million . The fair value of the contingent consideration liability related to Fossil Accessories South Africa Pty. Ltd. (‘‘Fossil South Africa’’) was determined using Level 3 inputs. See Note 15—Stockholders' Equity for additional disclosures about the equity transaction. The contingent consideration is based on Fossil South Africa's projected earnings and dividends through fiscal year 2020 with the final payments expected the following year. Mainly driven by a decrease in Fossil South Africa's estimated future revenue for fiscal years 2019 and 2020, the Company recorded a favorable $ 3.4 million remeasurement adjustment to the contingent consideration liability in other income (expense)-net during fiscal year 2018. The fair value of the contingent consideration liability was measured using Level 3 inputs, including forecasted cash flows and a discount rate. The present value of the contingent consideration liability was valued at $2.2 million as of December 29, 2018 . |
Debt
Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consisted of the following, excluding capital lease obligations, (in millions): December 29, 2018 December 30, 2017 U.S. revolving line of credit (1) $ — $ 440.3 U.S. term loan (2) 392.3 — Other international 0.4 0.9 Total debt $ 392.7 $ 441.2 Less current portion 125.4 0.9 Long-term debt $ 267.3 $ 440.3 ___________________________________________ (1) Net of debt issuance costs of $4.7 million at December 30, 2017 (2) Net of debt issuance costs of $7.7 million at December 29, 2018 U.S.-Based. On January 29, 2018, the Company, as U.S. borrower, and certain of its foreign subsidiaries, as non-U.S. borrowers, entered into a Second Amended and Restated Credit Agreement (the "Credit Agreement"). The Credit Agreement provides for (i) revolving credit loans in the amount of $325 million , subject to a borrowing base (as described below), (the "Revolving Credit Facility"), with an up to $45.0 million subfacility for letters of credit, and (ii) a term loan made to the Company in the amount of $425 million (the "Term Loan Facility"). The Credit Agreement expires and is due and payable on December 31, 2020. Availability under the Revolving Credit Facility and any letters of credit are subject to a borrowing base equal to, (a) with respect to Fossil Group Inc., the sum of (i) 85% of eligible U.S. accounts receivable and 90% of net U.S. credit card receivables (less any dilution reserve), and (ii) the lesser of (A) 65% of the lower of cost or market value of eligible U.S. finished good inventory and (B) 85% of the appraised net orderly liquidation value of eligible U.S. finished good inventory, minus (iii) the aggregate amount of reserves, if any, established by the Administrative Agent in good faith and in the exercise of reasonable business judgment from the perspective of a secured asset-based lender; and (b) with respect to each non-U.S. borrower, the sum of (i) 85% of eligible accounts receivable of the non-U.S. borrowers (less any dilution reserve) and (ii) the least of (A) 65% of the lower of cost or market value of eligible foreign finished goods inventory of the non-U.S. borrowers, (B) 85% of the appraised net orderly liquidation value of eligible foreign finished goods inventory of the non-U.S. borrowers, and (C) $185,000,000 minus (iii) the aggregate amount of reserves, if any, established by the Administrative Agent in good faith and in the exercise of reasonable business judgment from the perspective of a secured asset-based lender. In connection with the Credit Agreement, the Company and all of its domestic subsidiaries entered into a Collateral Agreement in favor of the Administrative Agent, pursuant to which the Company and such subsidiaries granted liens on all or substantially all of their assets in order to secure the Company’s obligations under the Credit Agreement and the other loan documents (the “Obligations”). Additionally, all of the Company’s domestic subsidiaries entered into a Guaranty Agreement in favor of the Administrative Agent, pursuant to which such subsidiaries guarantee the payment and performance of the Obligations. Additionally, Fossil Group Europe and the other non-U.S. borrowers from time to time party to the Credit Agreement 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. The Credit Agreement amended and restated that certain credit agreement, dated as of March 9, 2015, as amended, which was scheduled to mature on May 17, 2019 (the "Prior Agreement"). As of January 29, 2018, the Company had $497.0 million in aggregate principal amount of revolving credit loans outstanding and no term loans outstanding under the Prior Agreement, all of which was refinanced on January 29, 2018 with borrowings under the Credit Agreement. No penalties or other early termination fees were incurred in connection with the amendment and restatement of the Prior Agreement. The Company recorded a loss of $0.7 million in other income (expense) - net during the first quarter of fiscal year 2018 for debt issuance costs associated with the Prior Agreement. Amounts outstanding under the Revolving Credit Facility bear interest per annum at the (a) LIBOR rate plus the applicable interest margin, (b) the daily LIBOR rate plus the applicable interest margin or (c) the base rate plus the applicable interest margin. The applicable interest margin varies from 4.00% to 5.00% for LIBOR rate loans and daily LIBOR rate loans and 1.50% to 3.00% for base rate loans and is based on the Company’s average daily excess availability under the Revolving Credit Facility for the most recently ended calendar quarter, which is an amount equal (a) the lesser of (i) $325 million and (ii) the aggregate borrowing base minus (b) the amount of all outstanding borrowings and letter of credit obligations under the Revolving Credit Facility, for each day during the applicable period divided by the number of days in such period. The applicable interest margin will increase by 1% per annum on each anniversary of the closing of the Credit Agreement. The base rate loans under the Revolving Credit Facility are available only to the Company and Fossil Group Europe and loans denominated in U.S. dollars. Amounts outstanding under the Term Loan Facility bear interest at a rate per annum equal to (a) the LIBOR rate plus 7% , increasing to the LIBOR rate plus 8% on January 29, 2019 and the LIBOR rate plus 9% on January 29, 2020 and thereafter or (b) the base rate plus 5.5% , increasing to the base rate plus 6.5% on January 29, 2019 and to the base rate plus 7.5% on January 29, 2020 and thereafter. The Company is required to repay the outstanding principal balance of the Term Loan Facility in the amount of $125 million on March 31, 2019, $75 million on March 31, 2020 and the outstanding balance on December 31, 2020. Additionally, loans under the Credit Agreement may be prepaid, in whole or in part, at the option of the Company, in minimum principal amounts of (a) $1.0 million or increments of $1.0 million in excess thereof, with respect to a base rate loan under the Revolving Credit Facility, (b) $5.0 million or increments of $1.0 million in excess thereof, with respect to a LIBOR rate loan or a daily LIBOR rate loan under the Revolving Credit Facility, and (c) $5.0 million or increments of $1.0 million in excess thereof, with respect to the Term Loan Facility. Loans under the Credit Agreement must be repaid with the net cash proceeds of certain asset sales, insurance and condemnation events, certain debt and equity issuances and certain cash dividends received from the Company’s subsidiaries. The Company may permanently reduce the revolving credit commitment at any time, in whole or in part, without premium or penalty, in a minimum aggregate principal amount of not less than $3.0 million or increments of $1.0 million in excess thereof. The Company is required to pay a commitment fee on the unused amounts of the commitments under the Revolving Credit Facility, payable quarterly in arrears, of 0.5% on the average daily unused portion of the overall commitment under the Revolving Credit Facility. The repayment obligation under the Credit Agreement can be accelerated upon the occurrence of an event of default, including the failure to pay principal or interest, a material inaccuracy of a representation or warranty, violation of covenants, cross-default, change in control, bankruptcy events, failure of a loan document provision, certain ERISA events and material judgments. Financial covenants governing the Credit Agreement require the Company to maintain (a) a minimum fixed charge coverage ratio measured quarterly on a rolling twelve-month basis of 1.15 to 1.00 if the Company’s quarter-end balances of cash and cash equivalents plus the excess availability under the Revolving Credit Facility is less than $200 million ; (b) a maximum leverage ratio measured as of the last day of each fiscal quarter for the period of four fiscal quarters ending on such date of (i) 4.25 to 1.0 for the period ended December 29, 2018, (ii) 3.75 to 1.0 for each fiscal quarter ending during the period from December 30, 2018 through September 28, 2019, and (iii) 3.5 to 1.0 thereafter; (c) a minimum trailing twelve-month EBITDA tested quarterly of $110 million (beginning with the fiscal quarter ended December 29, 2018); (d) a minimum liquidity covenant of unrestricted cash and cash equivalents plus available and unused capacity under the Revolving Credit Facility equal to $160 million ; and (e) maximum capital expenditures of $35 million per year. Additionally, the Company is restricted from making open market repurchases of its common stock. During fiscal year 2018 , the Company had net borrowings of $400.0 million under the Term Loan. The Company had net payments of $445.0 million under the Revolving Credit Facility during fiscal year 2018 . Amounts available under the Revolving Credit Facility were reduced by any amounts outstanding under standby letters of credit. As of December 29, 2018 , the Company had available borrowing capacity of approximately $322.3 million under the Revolving Credit Facility. The Company incurred approximately $33.5 million of interest expense under the Term Loan during fiscal year 2018 . The Company incurred approximately $3.3 million of interest expense under the Revolving Credit Facility during fiscal year 2018 . The Company incurred approximately $3.7 million of interest expense related to the amortization of debt issuance costs during fiscal year 2018 . Foreign-Based. On June 23, 2016, 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, 10.25% as of year end 2018 . 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 $0.4 million as of December 29, 2018 . The Company's debt as of December 29, 2018 , excluding capital lease obligations, matures as follows (in millions): Less than 1 Year $ 125.4 Year 2 275.0 Principal amounts repayable 400.4 Debt issuance costs (7.7 ) Total debt outstanding $ 392.7 Capital Lease Obligations. At the end of fiscal years 2018 and 2017 , the Company had current capital lease obligations of $1.0 million and $1.2 million , respectively, and long-term capital lease obligations of $2.5 million and $3.6 million , respectively. |
Other Income (Expense)_Net
Other Income (Expense)—Net | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 2016 Interest income $ 2,605 $ 4,729 $ 2,156 Contingent consideration remeasurement 3,381 — — Gain on interest rate swap — 195 — Equity in losses of unconsolidated investment (558 ) (460 ) (1,321 ) Extinguishment of debt (718 ) (1,029 ) — Gain on divestiture — 1,750 3,500 Net currency (losses) gains (5,820 ) 7,849 8,729 Other net gains 1,072 702 992 Other income (expense) - net $ (38 ) $ 13,736 $ 14,056 |
Taxes
Taxes | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 Deferred income tax assets (liabilities): Bad debt allowance $ 1,974 $ 2,920 Returns allowance 4,935 3,662 Inventory 4,519 13,409 Warranty liabilities 3,317 2,656 Markdown allowance 2,800 — Compensation 18,772 19,005 Accrued liabilities 5,903 9,881 Deferred rent 7,996 12,403 Deferred income 5,706 — Unrealized exchange gains (losses) 637 5,553 State income tax and interest on tax contingencies 1,189 1,410 Fixed assets (8,009 ) (13,442 ) Trade names and customer lists 1,703 (2,607 ) Goodwill 17,957 19,982 Other intangibles (4,562 ) (5,985 ) Undistributed earnings of certain foreign subsidiaries (541 ) (1,018 ) Foreign accruals 8,528 8,501 Loss carryforwards 31,582 27,868 Tax credit carryforwards 512 — Valuation allowance (95,818 ) (78,314 ) Capitalized R&D 2,546 — Interest disallowance 9,642 — Other (32 ) 132 Net deferred income tax assets $ 21,256 $ 26,016 Total deferred income tax assets $ 23,695 $ 27,112 Total deferred income tax liabilities (2,439 ) (1,096 ) Net deferred income tax assets $ 21,256 $ 26,016 Operating Loss Carryforwards. The balance sheet includes $31.6 million of deferred tax assets for net operating losses of foreign subsidiaries. Valuation allowances have been recorded to reflect the estimated amount of deferred tax assets that may not be realized on these losses. The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2019 through 2023 $ 31,763 Expires 2024 through 2028 27,816 Expires 2029 through 2033 136 Expires 2034 through 2038 58,975 Indefinite 16,402 Total loss carryforwards $ 135,092 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 2018 2017 2016 U.S $ (102,810 ) $ (517,227 ) $ (72,249 ) Non-U.S 122,980 63,473 186,557 Total $ 20,170 $ (453,754 ) $ 114,308 The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands): Fiscal Year 2018 2017 2016 Current provision: U.S. federal $ (14,386 ) $ 30,817 $ 2,111 Non-U.S 35,854 40,423 53,880 State and local (2,056 ) (2,055 ) (1,482 ) Total current 19,412 69,185 54,509 Deferred provision (benefit): U.S. federal — (45,990 ) (20,216 ) Non-U.S 1,696 (3,770 ) (5,584 ) State and local — 380 (4 ) Total deferred 1,696 (49,380 ) (25,804 ) Provision for income taxes $ 21,108 $ 19,805 $ 28,705 The expected cash payments for current U.S. income tax expense for fiscal years 2018 , 2017 and 2016 were reduced by approximately $2.8 million , $1.6 million and $3.3 million , respectively, as a result of tax deductions related to the exercise of non-qualified stock options and stock appreciation rights and the vesting of restricted stock and restricted stock units. The expected cash payments for current foreign tax expense for fiscal years 2018 , 2017 and 2016 were reduced by $0.2 million , $0.1 million and $0.2 million , respectively, as a result of tax deductions related to the exercise of stock options and the vesting of restricted stock granted to foreign employees. Total deferred income tax expense of $(1.7) million , $49.4 million and $25.8 million for fiscal years 2018 , 2017 and 2016 , respectively, are included in deferred income taxes on the Company's consolidated statements of cash flows. A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows: Fiscal Year 2018 2017 2016 Tax at statutory rate 21.0 % 35.0 % 35.0 % Non-deductible expenses and other permanent differences 5.1 (0.6 ) 5.3 State, net of federal tax benefit (3.8 ) 1.0 0.6 Foreign rate differential (12.3 ) 3.7 (30.9 ) Withholding taxes 16.3 — — GILTI Tax-net of foreign tax credits 11.8 — — U.S. tax on foreign income-net of foreign tax credits 6.4 (1.7 ) 5.0 Income tax contingencies (5.0 ) (0.1 ) 0.3 Valuation allowances 65.0 (12.5 ) 8.1 Repatriation tax - net impact 5.9 (7.4 ) — Deficiencies on employee stock awards 10.1 (0.9 ) — Non-deductible goodwill impairment — (15.2 ) — Tax Reform rate reduction impact on deferred tax assets (15.8 ) (6.2 ) — Return to provision true-up — — 1.7 Other — 0.5 — Provision for income taxes 104.7 % (4.4 )% 25.1 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation that significantly revised the Internal Revenue Code of 1986, including a corporate income tax rate reduction from 35% to 21% , under the Tax Cuts and Jobs Act (the “Tax Act”). The newly enacted federal income tax law contains significant changes in the taxation of foreign income earned by U.S. shareholders, specifically adding new rules related to low-taxed foreign earnings and allowing an exemption on foreign dividends paid after 2017. In anticipation of the tax exemption on foreign dividends, the law imposed a one-time repatriation tax on historical earnings generated offshore that have not been previously taxed in the U.S. Foreign earnings held in cash or liquid assets were taxed at 15.5% , and the remaining earnings were taxed at 8% . Accounting for the income tax effects of the Tax Act requires significant judgments and estimates in the interpretation and calculations of the provisions of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements for fiscal year 2017 as permitted under SAB 118. The Company collected the necessary data, and interpreted additional guidance issued by the U.S. Treasury Department and the Internal Revenue Service and completed its accounting for the tax effects of the Tax Act. In addition, 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 the 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. The Company also accrued valuation allowances of $11.7 million on net U.S deferred tax assets and $5.8 million on net foreign deferred tax assets, including $4.3 million recorded directly to equity. The effective tax rate was also impacted by the U.S taxation of foreign earnings and non-deductible equity compensation costs. The Company will not indefinitely reinvest $465.3 million of previously taxed but undistributed earnings of its foreign subsidiaries as of December 29, 2018 . Since under the Tax Act there will be no additional federal income tax when these amounts are repatriated, and the foreign jurisdiction does not impose a withholding tax on dividends, the Company has only accrued U.S. state income taxes on these earnings. Deferred U.S. federal and state income taxes and foreign taxes are not recorded on the remaining $408.2 million of undistributed earnings 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 $33.5 million , $33.0 million and $20.6 million for fiscal years 2018 , 2017 and 2016 , respectively. The U.S. Internal Revenue Service has completed examinations of the Company's federal income tax returns through 2013. Fiscal years 2015-2017 remain open for federal income tax examination. The Company is also subject to examinations in various state and foreign jurisdictions for its 2011-2017 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 29, 2018 . As of December 29, 2018 , the Company had recorded $17.9 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 $3.7 million and $2.8 million at December 29, 2018 and December 30, 2017 , respectively. The total amount of accrued income tax-related penalties in the Company's consolidated balance sheets was $1.0 million and $1.3 million at December 29, 2018 and December 30, 2017 , respectively. The Company accrued income tax-related interest expense of $0.8 million , $0.5 million and $0.1 million in fiscal years 2018 , 2017 and 2016 , respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands): Fiscal Year 2018 2017 2016 Balance at beginning of year $ 35,355 $ 23,399 $ 23,022 Gross increases—tax positions in prior years 7,183 2,104 918 Gross decreases—tax positions in prior years (124 ) (845 ) (183 ) Gross increases—tax positions in current year 576 13,444 974 Settlements — (81 ) (181 ) Lapse in statute of limitations (2,980 ) (2,706 ) (1,106 ) Change due to currency revaluation (101 ) 40 (45 ) Balance at end of year $ 39,909 $ 35,355 $ 23,399 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
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 patents owned by third parties. In accordance with these agreements, the Company incurred royalty expense of approximately $173.0 million , $190.0 million and $206.1 million in fiscal years 2018 , 2017 and 2016 , 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 years 2019 and 2028 and require the Company to pay royalties ranging from 7% to 15% 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 Commitments 2019 $ 146,600 2020 3,324 2021 2,355 Thereafter 17,995 Total $ 170,274 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. Leases. The Company leases its retail and outlet store facilities as well as certain of its office and warehouse facilities and equipment under non-cancelable operating leases and capital leases. Most of the retail and outlet store leases provide for contingent rental payments based on operating results and require the payment of taxes, insurance and other costs applicable to the property. Generally, these leases include renewal options for various periods at stipulated rates. Total rent expense under these agreements was approximately $166.6 million , $171.6 million and $188.7 million for fiscal years 2018 , 2017 and 2016 , respectively. The Company's total rent expense included contingent rent expense of approximately $6.8 million , $8.2 million and $10.5 million for fiscal years 2018 , 2017 and 2016 , respectively. The Company includes capital leases as a component of short-term and current portion of long-term debt and long-term debt in the consolidated balance sheets. Future minimum rental commitments under non-cancelable leases, by fiscal year, are as follows (in thousands): Fiscal Year Operating Leases Capital Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — $ 646,762 $ 3,541 Less amounts representing interest 84 Capital lease obligations $ 3,457 Purchase Obligations. As of December 29, 2018 , the Company had purchase obligations totaling $370.9 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 2018 2017 Beginning asset retirement obligation $ 13,086 $ 12,678 Liabilities incurred during the period 166 549 Liabilities settled during the period (1,150 ) (1,472 ) Accretion expense 366 363 Currency translation (606 ) 968 Ending asset retirement obligations $ 11,862 $ 13,086 Litigation. The Company is occasionally subject to litigation or other legal proceedings in the normal course of its business. The Company does not believe that the outcome of any currently pending legal matters, individually or collectively, will have a material effect on the business or financial condition of the Company. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
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 49,517,817 and 48,642,703 shares issued and outstanding at fiscal year-end 2018 and 2017 , 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 2018 and 2017 . 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. During the period from December 2012 to the end of fiscal year 2018 , the Company repurchased approximately $1.2 billion of its common stock, representing approximately 11.8 million shares. At December 29, 2018 and December 30, 2017 , all treasury stock had been effectively retired. As of January 1, 2019, the Company had $30.0 million of repurchase authorizations remaining under its repurchase plan. However, under the Company's Credit Agreement, the Company is restricted from making open market repurchases of its common stock. See Note 11—Debt for additional disclosures about the Credit Agreement. Noncontrolling Interest. The Company entered into an agreement to purchase the outstanding minority interest shares in Fossil South Africa, representing the entire noncontrolling interest in the subsidiary. The purchase price is based on variable payments through fiscal year 2020, the present value of which the Company has measured at $2.2 million as of December 29, 2018 . The Company made payments of $1.9 million during fiscal year 2018 towards the purchase price. The transaction was accounted for as an equity transaction, and the Company’s ownership interest in Fossil South Africa increased to 100% . The Company recorded $1.0 million of the variable consideration in accrued expenses-other and $1.2 million in other long-term liabilities in the consolidated balance sheets at December 29, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Deferred Compensation and 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. After 90 days of service (minimum of 250 hours worked), the Company matched 50% of employee contributions up to 6% of their compensation during fiscal year 2018. Matching contributions made by the Company to the 401(k) Plan totaled approximately $2.8 million for fiscal year 2018 and $2.9 million for both fiscal years 2017 and 2016 . The Company also has the right to make additional matching contributions not to exceed 15% of employee compensation. The Company did no t make any additional matching contributions during fiscal years 2018 , 2017 and 2016 . Under the Fossil Group, Inc. and Affiliates Deferred Compensation Plan (the "Deferred Plan") eligible participants may elect to defer up to 50% of their salary or up to 100% of any bonuses paid pursuant to the terms and conditions of the Deferred Plan. In addition, the Company may make employer contributions to participants under the Deferred Plan from time to time. The Company made no contributions to the Deferred Plan during fiscal years 2018 , 2017 and 2016 . In prior periods, the Company made payments pursuant to the Deferred Plan into a Rabbi Trust. The funds held in the Rabbi Trust are directed to certain investments available through life insurance products. The Company had assets of $4.4 million and $4.8 million related to the Company's invested balances recorded in intangible and other assets—net and liabilities of $3.9 million and $5.2 million related to the participants' invested balances recorded in accrued expenses—other, each on the Company's consolidated balance sheets at the end of fiscal years 2018 and 2017 , respectively. 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 29, 2018 , the Company had approximately $30.0 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 approximately 1.3 years . All time-based or performance-based stock appreciation rights and restricted stock units are settled in shares of the Company's common stock with the exception of one employees' grants that were converted to cash settled awards. 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 LTIP"), adopted in March 2016. Pursuant to the First Amendment to the Company’s 2016 Long-Term Incentive Plan, which was approved by our shareholders on May 23, 2018, the number of shares of the Company’s common stock authorized for issuance under the Company’s 2016 Long-Term Incentive Plan, as amended (the “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 outside 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 Committee of the Company's Board of Directors (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 nonemployee director automatically receives restricted stock units with a fair market value of approximately $ 130,000 , 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. Notwithstanding the foregoing, the Company’s Board of Directors elected to take a one-time 25% reduction of such annual grant in 2018, and each nonemployee director thus received a grant on May 23, 2018 of restricted stock units with a fair market value of approximately $ 97,500 . Stock Options, Stock Appreciation Rights and Performance Stock Appreciation Rights. The fair value of stock options, stock appreciation rights and performance 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. The table below outlines the weighted-average assumptions for these award grants: Fiscal Year 2016 Risk-free interest rate 1.1 % Expected term (in years) 3.0 Expected volatility 38.8 % Expected dividend yield — % Estimated fair value per stock option/stock appreciation right granted $ 11.25 The expected term of the stock options represents the estimated period of time until exercise and is based on historical experience of similar awards. 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 2018 and 2017. The following table summarizes stock option, stock appreciation rights and performance stock appreciation rights activity: Stock Options and Stock Appreciation Rights Shares Weighted-Average Weighted-Average Aggregate in thousands in thousands Outstanding at January 2, 2016 2,028 $ 52.80 8.7 $ 2,095 Granted 326 41.53 Exercised (10 ) 26.93 186 Forfeited or expired (57 ) 81.93 Outstanding at December 31, 2016 2,287 50.58 6.2 627 Granted — — Exercised (13 ) 13.65 35 Forfeited or expired (97 ) 67.99 Outstanding at December 30, 2017 2,177 50.01 5.3 — Granted — — Exercised (21 ) 14.46 37 Forfeited or expired (226 ) 59.58 Outstanding at December 29, 2018 1,930 49.25 1.3 37 Exercisable at December 29, 2018 1,363 $ 54.12 1.5 $ 37 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 29, 2018 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 Options, Stock Appreciation Rights and Performance Stock Appreciation Rights Outstanding and Exercisable. The following tables summarize information with respect to stock options, stock appreciation rights and performance stock appreciation rights outstanding and exercisable at December 29, 2018 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $13.65 - $29.49 14 $ 13.65 0.2 14 $ 13.65 $36.73 - $70.12 40 38.40 1.1 40 38.40 $80.22 - $127.84 181 107.86 2.6 181 107.86 $128.29 - $131.46 6 130.80 3.1 6 130.80 Total 241 $ 91.29 2.2 241 $ 91.29 Stock Appreciation Rights Outstanding Stock Appreciation Rights Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $13.65 - $29.49 48 $ 29.49 5.6 32 $ 29.49 $36.73 - $70.12 1,419 38.11 0.8 891 38.30 $80.22 - $127.84 156 93.85 3.4 156 93.85 $128.29 - $131.46 5 128.29 0.5 5 128.29 Total 1,628 $ 43.49 1.2 1,084 $ 46.47 Cash Stock Appreciation Rights Outstanding Cash Stock Appreciation Rights Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $36.73 - $70.12 61 $ 36.73 0.2 38 $ 36.73 Total 61 $ 36.73 0.2 38 $ 36.73 Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units. The following table summarizes restricted stock, restricted stock unit and performance restricted stock unit activity: Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Per Share in thousands Nonvested at January 2, 2016 1,208 $ 53.87 Granted 588 27.94 Vested (327 ) 64.51 Forfeited (64 ) 56.29 Nonvested at December 31, 2016 1,405 $ 40.41 Granted 2,381 14.81 Vested (479 ) 44.79 Forfeited (326 ) 25.62 Nonvested at December 30, 2017 2,981 $ 20.84 Granted 1,456 14.35 Vested (1,040 ) 25.21 Forfeited (386 ) 19.87 Nonvested at December 29, 2018 3,011 $ 17.86 The total fair value of shares/units vested during fiscal years 2018 , 2017 and 2016 was $16.6 million , $6.3 million and $12.3 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 2018 , 2017 and 2016 , the Company recorded pension expenses of $0.6 million , $1.8 million and $2.2 million , respectively, related to this plan. The liability for the Company's defined benefit plan was $9.5 million and $12.5 million at the end of fiscal years 2018 and 2017 , 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 2018 , 2017 and 2016 , the Company recorded pension gains (expenses) of $0.4 million , $0.7 million and $(0.2) million , respectively, for its retirement indemnity obligations. The liability for the Company's retirement indemnity was $0.8 million and $1.3 million at the end of fiscal years 2018 and 2017 , 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. 29, 2018 | |
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 2018 2017 2016 Cash paid during the year for: Interest $ 38,855 $ 43,245 $ 26,867 Income taxes, net of refunds $ 28,460 $ 36,571 $ 14,163 Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 3,868 $ 2,300 $ 4,762 Additions to property, plant and equipment acquired under capital leases $ — $ — $ 432 |
Supplemental Disclosure for Acc
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Pension Plan Total Beginning balance $ (64,499 ) $ (10,098 ) $ (1,672 ) $ (76,269 ) Other comprehensive income (loss) before reclassifications (10,369 ) 18,044 3,757 11,432 Tax (expense) benefit — — (490 ) (490 ) Amounts reclassed from accumulated other comprehensive income (loss) — (4,283 ) — (4,283 ) Tax (expense) benefit — 1,654 — 1,654 Total other comprehensive income (loss) (10,369 ) 20,673 3,267 13,571 Adoption of ASU 2018-02 (Note 1) — (1,993 ) — (1,993 ) Ending balance $ (74,868 ) $ 8,582 $ 1,595 $ (64,691 ) December 30, 2017 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (101,867 ) $ 10,693 $ (343 ) $ (3,907 ) $ (95,424 ) Other comprehensive income (loss) before reclassifications 37,368 (34,873 ) 437 2,677 5,609 Tax (expense) benefit — 9,785 (159 ) (442 ) 9,184 Amounts reclassed from accumulated other comprehensive income (loss) — (1,076 ) (214 ) — (1,290 ) Tax (expense) benefit — (3,221 ) 149 — (3,072 ) Total other comprehensive income (loss) 37,368 (20,791 ) 343 2,235 19,155 Ending balance $ (64,499 ) $ (10,098 ) $ — $ (1,672 ) $ (76,269 ) December 31, 2016 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (81,707 ) $ 8,114 $ (693 ) $ (6,220 ) $ (80,506 ) Other comprehensive income (loss) before reclassifications (19,773 ) 22,638 (1,149 ) 2,650 4,366 Tax (expense) benefit (283 ) (9,073 ) 419 (337 ) (9,274 ) Amounts reclassed from accumulated other comprehensive income (loss) 104 16,143 (1,699 ) — 14,548 Tax (expense) benefit — (5,157 ) 619 — (4,538 ) Total other comprehensive income (loss) (20,160 ) 2,579 350 2,313 (14,918 ) Ending balance $ (101,867 ) $ 10,693 $ (343 ) $ (3,907 ) $ (95,424 ) |
Major Customer, Segment and Geo
Major Customer, Segment and Geographic Information | 12 Months Ended |
Dec. 29, 2018 | |
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, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. Each reportable operating segment provides similar products and services. The Company evaluates the performance of its reportable segments based on net sales and operating income (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. Due to changes in the Company’s reportable segments as discussed in Note 1 to the Consolidated Financial Statements, segment results for fiscal years 2017 and 2016 have been recast to present results on a comparable basis. These changes had no impact on the consolidated net sales or operating income. Summary information by operating segment was as follows (in thousands): Fiscal Year 2018 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,174,507 $ 185,094 $ 16,542 $ 61,914 $ 393,273 Europe 856,291 129,610 18,933 99,253 353,797 Asia 505,473 87,515 8,016 29,990 173,666 Corporate 5,217 (339,508 ) 23,588 125,472 654,462 Consolidated $ 2,541,488 $ 62,711 $ 67,079 $ 316,629 $ 1,575,198 Fiscal Year 2017 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,314,348 $ (47,836 ) $ 21,214 $ 81,444 $ 463,175 Europe 971,820 32,871 21,368 113,621 471,375 Asia 496,392 (12,490 ) 10,798 33,160 216,660 Corporate 5,603 (396,821 ) 28,197 139,159 507,162 Consolidated $ 2,788,163 $ (424,276 ) $ 81,577 $ 367,384 $ 1,658,372 Fiscal Year 2016 Net Sales Operating Income Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,523,534 $ 239,740 $ 22,612 $ 313,437 $ 741,082 Europe 996,790 172,505 22,505 237,801 534,413 Asia 514,717 76,749 12,676 81,434 237,695 Corporate 7,330 (361,848 ) 33,704 206,935 673,707 Consolidated $ 3,042,371 $ 127,146 $ 91,497 $ 839,607 $ 2,186,897 The following table shows revenue for each class of similar products for fiscal years 2018 , 2017 and 2016 (in thousands): Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Net Sales Percentage of Total Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 2,033,021 80.0 % $ 2,199,031 78.9 % $ 2,330,275 76.6 % Leathers 289,385 11.4 325,502 11.7 393,761 12.9 Jewelry 167,775 6.6 211,694 7.6 251,391 8.3 Other 51,307 2.0 51,936 1.8 66,944 2.2 Total $ 2,541,488 100.0 % $ 2,788,163 100.0 % $ 3,042,371 100.0 % Geographic Information Net sales and long-lived 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 2018 Net Sales (1) Long-term Assets United States $ 1,017,919 $ 159,062 Europe 857,972 (2) 111,964 Asia 507,523 36,945 All other international 158,074 8,658 Consolidated $ 2,541,488 $ 316,629 Fiscal Year 2017 Net Sales (1) Long-term Assets United States $ 1,157,568 $ 189,209 Europe 974,198 (2) 127,344 Asia 497,816 40,874 All other international 158,581 9,957 Consolidated $ 2,788,163 $ 367,384 Fiscal Year 2016 Net Sales (1) Long-term Assets United States $ 1,355,586 $ 470,358 Europe 1,002,077 (2) 260,277 Asia 515,383 93,111 All other international 169,325 15,861 Consolidated $ 3,042,371 $ 839,607 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity. (2) Net sales from Germany accounted for more than 10% of the Company's consolidated net sales and were approximately $359.9 million , $406.2 million and $467.7 million in fiscal years 2018 , 2017 and 2016 , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF"). As part of NWF, the Company targets to improve operating profit and support sales growth through a leaner infrastructure and an enhanced business model. The Company is working to achieve greater efficiencies from production to distribution through activities such as organizational changes, reducing its overall product assortment, optimizing its base cost structure and consolidating facilities. The Company also intends to build a quicker and more responsive operating platform. The Company is reducing its retail footprint to reflect the evolving shopping habits of today's consumer, which results in restructuring costs, such as store impairment, recorded lease obligations and termination fees and accelerated depreciation. Of the total estimated $150 million restructuring charges, approximately $46.6 million , $48.2 million and $27.8 million were recorded during fiscal year 2018, 2017 and 2016, respectively. The following tables show a rollforward of the liabilities incurred under the Company's restructuring plans (in thousands): Fiscal Year 2018 Liabilities Cash payments Non-cash items Liabilities December 30, 2017 Charges December 29, 2018 Store closures $ 2,973 $ 14,906 $ 14,141 $ 920 $ 2,818 Professional services 185 12,439 10,426 — 2,198 Severance and employee-related benefits 1,317 19,285 12,259 5,332 3,011 Total $ 4,475 $ 46,630 $ 36,826 $ 6,252 $ 8,027 Fiscal Year 2017 Liabilities Cash payments Non-cash items Liabilities December 31, 2016 Charges December 30, 2017 Store closures $ 4,546 $ 13,045 $ 6,636 $ 7,982 $ 2,973 Professional services and other 794 3,507 2,618 1,498 185 Severance and employee-related benefits — 31,619 29,098 1,204 1,317 Total $ 5,340 $ 48,171 $ 38,352 $ 10,684 $ 4,475 Fiscal Year 2016 Liabilities Cash payments Non-cash items Liabilities January 2, 2016 Charges December 31, 2016 Store closures $ — $ 22,247 $ 3,430 $ 14,271 $ 4,546 Professional services — 4,057 3,263 — 794 Supply chain relocation — 1,474 — 1,474 — Total $ — $ 27,778 $ 6,693 $ 15,745 $ 5,340 Restructuring charges by operating segment were as follows by fiscal year (in thousands): 2018 2017 2016 Americas $ 17,197 $ 12,964 $ 19,745 Europe 10,116 12,606 1,888 Asia 2,946 9,894 746 Corporate 16,371 12,707 5,399 Consolidated $ 46,630 $ 48,171 $ 27,778 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the balance sheet date, on January 4, 2019, the Company made a $125.0 million payment on the Term Loan to repay the outstanding principal balance due on March 31, 2019 under the terms of the Credit Agreement. Also, subsequent to the balance sheet date, the Company sold intellectual property ("IP") related to a smartwatch technology under development by the Company to Google, Inc. for a cash purchase price of $40.0 million . |
SCHEDULE II VALUATIONS AND QUAL
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 29, 2018 | |
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 2016 , 2017 and 2018 (in thousands) Additions Deductions Classification Balance at Beginning of Period Charged (Credited) to Operations Charged to Other Accounts Actual Returns or Writeoffs Balance at End of Period Fiscal Year 2016: Account receivable allowances: Sales returns $ 68,735 $ 122,018 $ — $ 123,852 $ 66,901 Bad debts $ 15,823 $ 4,520 $ — $ 7,538 $ 12,805 Deferred tax asset valuation allowance $ 10,857 $ 8,793 $ — $ 235 $ 19,415 Fiscal Year 2017: Account receivable allowances: Sales returns $ 66,901 $ 148,814 $ — $ 140,515 $ 75,200 Bad debts $ 12,805 $ 7,140 $ — $ 7,017 $ 12,928 Deferred tax asset valuation allowance $ 19,415 $ 59,676 $ — $ 777 $ 78,314 Fiscal Year 2018: Account receivable allowances: Sales returns $ 75,200 $ 108,485 $ — $ 116,553 $ 67,132 Bad debts $ 12,928 $ 8,921 $ — $ 7,848 $ 14,001 Markdowns $ — $ 37,904 $ 28,416 $ 47,301 $ 19,019 Deferred tax asset valuation allowance $ 78,314 $ 13,102 $ 4,402 $ — $ 95,818 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | 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. |
Consolidated Financial Statements | 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 2018 , 2017 and 2016 are for the fiscal years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. All intercompany balances and transactions are eliminated in consolidation. Effective for the fourth quarter of fiscal year 2018, the Company made changes to the presentation of reportable segments to reflect changes in the way its chief operating decision maker evaluates the performance of its operations, develops strategy, and allocates capital resources. Certain peripheral revenue generating activities related to the Company's factories and intellectual property previously recorded within the Company's Americas, Asia and Europe segments have been reclassified to Corporate. The Company's historical segment disclosures have been recast to be consistent with its current presentation. |
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, inventories, long-lived assets and trade names, income taxes, warranty costs, hedge accounting and stock-based compensation. Management bases its estimates and judgments on historical experience and on various other factors that it believes are 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 under different assumptions or conditions. |
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 or economic disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. In fiscal year 2018 , 49% of the Company's global watch production was assembled or procured through wholly or majority-owned factories. 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 46.6% , 47.0% and 47.6% of the consolidated net sales for fiscal years 2018 , 2017 and 2016 , respectively, of which MICHAEL KORS ® product sales accounted for 22.6% of the consolidated net sales for both fiscal year 2018 and 2017 and 22.7% for fiscal year 2016 . |
Cash Equivalents | Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash was comprised of long-term restricted cash balances of $7.5 million and $0.4 million as of December 29, 2018 and December 30, 2017 , respectively, primarily for pledged collateral to secure bank guarantees for the purpose of obtaining retail space. This restricted cash is reported in intangible and other assets—net in the Company’s consolidated balance sheets as a component of long-term assets. |
Accounts Receivable | Accounts Receivable at the end of fiscal years 2018 and 2017 are stated net of doubtful accounts of approximately $14.0 million and $12.9 million , respectively. |
Inventories | 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 2018 and 2017 , was $43.7 million and $54.5 million , respectively. |
Investments | Investments in which the Company has significant influence over the investee are accounted for utilizing the equity method. If the Company does not have significant influence over the investee, the cost method is utilized. |
Property, Plant and Equipment, Other, and Property Held For Sale | 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 to seven years for computer equipment and software. Leasehold improvements are amortized over the shorter of the lease term or the asset's estimated useful life. Property, plant and equipment 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. Property, plant and equipment impairment losses of underperforming Company-owned retail stores of approximately $1.7 million , $8.0 million and $13.5 million were recorded in restructuring charges in fiscal years 2018 , 2017 and 2016 , respectively, and impairment losses of approximately $1.9 million , $1.3 million and $0.8 million were recorded in selling, general, and administrative ("SG&A") in fiscal years 2018 , 2017 and 2016 , respectively. Additionally, in fiscal years 2018, 2017 and 2016, the Company recorded non-impairment losses related to the disposal of property, plant and equipment of $0.6 million , $0.4 million and $1.5 million , respectively, included in restructuring charges in the Company’s consolidated statements of income (loss) and comprehensive income (loss). |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets include the acquisition cost in excess of net assets acquired (goodwill), trademarks, trade names, developed technology, customer lists and patents. Trademarks, trade names with finite lives, developed technology, customer lists and patents are amortized using the straight-line method over their estimated useful lives, which are generally three to 20 years . Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually as of the end of the fiscal year. Additionally, if events or conditions were to indicate an indefinite-lived intangible asset may not be recoverable, the Company would evaluate the asset for impairment at that time. Impairment testing compares the other intangible assets with its fair value. When the carrying amount of the intangible assets exceeds its fair value, an impairment charge is recorded. The Company had three reporting units for which it evaluated goodwill for impairment. In fiscal year 2017, goodwill was deemed fully impaired and accordingly the Company recognized a pre-tax impairment charge in operations of $202.3 million , $114.3 million and $42.9 million in the Americas, Europe and Asia segments, respectively. The fair values of the Company's indefinite-lived SKAGEN ® and MICHELE ® trade names were estimated using the relief from royalty method. During the second quarter of fiscal 2018, the SKAGEN trade name with a carrying amount of $27.3 million was written down to its implied fair value of $21.1 million , resulting in a pre-tax impairment charge of $6.2 million . A reduction in expected future cash flows negatively affected the valuation compared to previous valuation assumptions. Due to the inherent uncertainties involved in making the estimates and assumptions used in the fair value analysis, actual results may differ, which could alter the fair value of the trade names and possibly result in impairment charges in future periods. In fiscal year 2017 , impairment charges of $28.3 million , $11.8 million and $7.6 million were recorded related to the SKAGEN, MISFIT ® and MICHELE trade names, respectively. No impairment charges were recorded in fiscal year 2016 . |
Accrued Expenses Other | Accrued Expenses includes liabilities relating to warranties, duty, deferred compensation, gift cards, foreign exchange forward contracts ("forward contracts"), deferred rent, and other accrued liabilities which are current in nature. |
Other Long-Term Liabilities | Other Long-Term Liabilities includes obligations relating to asset retirements, deferred rent, forward contracts and defined benefits relating to certain international employees 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 net foreign currency transaction gains (losses), including gains and losses associated with the settlement of forward contracts, of approximately $(5.8) million , $7.8 million and $8.7 million for fiscal years 2018 , 2017 and 2016 , respectively. These net gains (losses) have been included in other income (expense)—net in the Company's consolidated statements of income (loss) and comprehensive income (loss). |
Litigation Liabilities | Litigation Liabilities are estimated amounts for claims that are probable and can be reasonably estimated and are recorded in accrued expenses-other in the Company's consolidated balance sheets. The likelihood of a material change in these estimated liabilities would be dependent on new claims that may arise, changes in the circumstances used to estimate amounts for prior period claims and favorable or unfavorable final settlements of prior period claims. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or circumstances change relative to prior claim assessments, revisions in estimates of the potential liability could materially impact the Company's consolidated results of operations and financial position. |
Revenues | Revenues from sales of the Company's products including those that are subject to inventory consignment agreements 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 and may request that a customer return a product if the customer has an excess of any style that the Company has identified as being a poor performer for that customer or geographic location. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience and any specific issues identified. In fiscal year 2018, under ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), 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. In fiscal year 2017, under prior accounting guidance, product returns were accounted for as reductions to revenue, cost of sales, accounts receivable and an increase in inventory to the extent the returned product is resalable. While returns have historically been within management's expectations and the provisions established, future return rates may differ from those experienced in the past. In the event that the Company's products are performing poorly in the retail market and/or it experiences product damages or defects at a rate significantly higher than the historical rate, the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur. The Company recorded an estimated returns provision of approximately $67.1 million in accrued expenses and $75.2 million in accounts receivable-net as of the end of fiscal years 2018 and 2017 , 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 | Cost of Sales includes raw material costs, assembly labor, assembly overhead including depreciation expense, assembly warehousing costs and 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. 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 include SG&A, goodwill and trade name 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 "back office" or support costs such as treasury, legal, information services, accounting, internal audit, human resources, executive management costs and costs associated with stock-based compensation. Restructuring charges include costs to reorganize, refine and optimize the Company’s infrastructure and store closures. |
Advertising Costs | Advertising Costs for in-store and media advertising as well as co-op advertising, catalog costs, product displays, show/exhibit costs, advertising royalties related to the sales of licensed brands, internet costs associated with affiliation fees, printing, sample costs and promotional allowances are expensed as incurred within SG&A. |
Warranty Costs | 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. |
Research and Development Costs | Research and Development Costs are incurred primarily through the Company's in-house engineering team and also through some outside 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. |
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 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. Accounting for the income tax effects of the Tax Act requires significant judgments and estimates in the interpretation and calculations of the provisions of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements for fiscal year 2017 as permitted under Staff Accounting Bulletin No. 118, (“SAB 118”) Income Tax Accounting Implications of the Tax Cuts and Jobs Act. During 2018, the Company completed its accounting for the tax effects of the enactment of the Tax Act and made adjustments to the provisional amounts. In addition, 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 August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14") . ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The guidance is effective for fiscal years ending after December 15, 2020. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 eliminates certain disclosure requirements related to the fair value hierarchy, adds new disclosure requirements related to the changes in unrealized gains and losses for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements and modifies certain disclosure requirements related to measurement uncertainty for fair value measurements. The guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company does not expect this standard to have a material impact on the Company's consolidated results of operations or financial position. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 amends and simplifies hedge accounting guidance in order to enable entities to better portray the economics of their risk management activities. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted ASU 2017-12 on the first day of fiscal year 2019. Adoption will result in a portion of hedge settlement activity being recognized in cost of sales. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification® (“ASU 2016-02”), which supersedes the existing guidance for lease accounting, Leases (Topic 840) . In order to improve transparency and comparability between companies, ASU 2016-02 requires lessees to recognize leases on their balance sheets, and modifies accounting, presentation and disclosure for both lessors and lessees. The Company's leases primarily consist of retail space, offices, warehouses, distribution centers and vehicles. The Company has substantially completed its assessment of the standard as well as implementation of its leasing software, including data upload, and is continuing to finalize its calculations, including validation procedures. The Company is continuing to establish new processes and internal controls required to comply with the new lease accounting and disclosure requirements set by the new standard. ASU 2016-02 is effective for annual periods, and interim periods within those years, beginning after December 15, 2018. The Company is using the package of practical expedients that allows companies to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company is making accounting policy elections to treat the lease and non-lease components of leases as a single lease component and to exempt leases with an initial term of twelve months or less from balance sheet recognition. Consequently, short-term leases will be expensed over the lease term. The Company is not electing to adopt the hindsight practical expedient and therefore will maintain the lease terms previously determined under ASC 840. The Company is adopting ASU 2016-02 in the first quarter of fiscal year 2019 using the modified retrospective approach. As part of the adoption, the Company is assessing right-of-use assets for impairment. Although the Company is continuing to assess the potential impacts of ASU 2016-02, the Company expects to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption as a result of previous store impairment and a previous sale leaseback transaction, and the Company estimates recording right-of-use assets and lease liabilities in the range of $330 million to $430 million . The standard is not expected to have a significant impact on the Company's consolidated results of operations or cash flows. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09 and subsequently issued guidance that amended ASU 2014-09. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on December 31, 2017, the first day of fiscal 2018, using the modified retrospective approach. Under this method of adoption, guidance in ASU 2014-09 was applied to open contracts as of December 30, 2017, the end of fiscal 2017. The cumulative effect of initially applying the new revenue standard was a reduction to opening retained earnings, with the impact primarily related to the accelerated recognition of markdowns. Results from reporting periods beginning on December 31, 2017 are presented under ASU 2014-09, while prior period amounts are not adjusted. See Note 2—Revenue for additional disclosures about the Company’s revenue recognition policy and the impact of adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) : Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires that a statement of cash flows explain the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 was effective for the Company beginning fiscal year 2018 and changed the presentation of the condensed consolidated statements of cash flows to now include restricted cash and cash equivalents as well as previously reported cash and cash equivalents in reconciling the period change. The Company adopted ASU 2016-18 using a retrospective transition method. The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 29, 2018 , December 30, 2017 and December 31, 2016 that are presented in the condensed consolidated statement of cash flows (in thousands): December 29, 2018 December 30, 2017 December 31, 2016 Cash and cash equivalents $ 403,373 $ 231,244 $ 297,330 Restricted cash included in prepaid expenses and other current assets 31 34 32 Restricted cash included in intangible and other assets-net 7,479 377 500 Cash, cash equivalents and restricted cash $ 410,883 $ 231,655 $ 297,862 In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The guidance allows reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the application of the U.S. Tax Cuts and Jobs Act. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company elected to early adopt this guidance during the fourth quarter of fiscal year 2018, resulting in the reclassification of $2.0 million of stranded tax effects from accumulated other comprehensive income to retained earnings. The following provisions, which had no material impact on the Company’s financial position, results of operations or cash flows, were also adopted effective the first quarter of fiscal year 2018: • ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities • ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting • ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business • ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments • ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20)- Recognition of Breakage for Certain Prepaid Stored-Value Products |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 2018 2017 2016 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (3,478 ) $ (478,172 ) $ 78,868 Denominator: Basic EPS computation: Basic weighted average common shares outstanding 49,196 48,468 48,136 Basic EPS $ (0.07 ) $ (9.87 ) $ 1.64 Diluted EPS computation: Basic weighted average common shares outstanding 49,196 48,468 48,136 Stock options, stock appreciation rights and restricted stock units — — 187 Diluted weighted average common shares outstanding 49,196 48,468 48,323 Diluted EPS $ (0.07 ) $ (9.87 ) $ 1.63 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 29, 2018 , December 30, 2017 and December 31, 2016 that are presented in the condensed consolidated statement of cash flows (in thousands): December 29, 2018 December 30, 2017 December 31, 2016 Cash and cash equivalents $ 403,373 $ 231,244 $ 297,330 Restricted cash included in prepaid expenses and other current assets 31 34 32 Restricted cash included in intangible and other assets-net 7,479 377 500 Cash, cash equivalents and restricted cash $ 410,883 $ 231,655 $ 297,862 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): Americas Europe Asia Total Balance at December 31, 2016 $ 202,187 $ 110,291 $ 42,785 $ 355,263 Foreign currency changes 162 3,983 85 4,230 Impairment charges (202,349 ) (114,274 ) (42,870 ) (359,493 ) Balance at December 30, 2017 $ — $ — $ — $ — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables summarize the impact of adopting ASU 2014-09 on the Company's consolidated balance sheets as of December 29, 2018 and the Company's condensed consolidated statements of income (loss) and comprehensive income (loss) for fiscal year 2018 (in thousands): December 29, 2018 As Reported Without Adoption of ASU 2014-09 Impact of Adoption of ASU 2014-09 Assets Accounts receivable $ 328,022 $ 301,217 $ 26,805 Inventories 377,622 401,317 (23,695 ) Prepaid expenses and other current assets 149,552 126,043 23,509 Liabilities Accrued expenses: Customer liabilities $ 71,252 $ 25,780 $ 45,472 December 29, 2018 As Reported Without Adoption of ASU 2014-09 Impact of Adoption of ASU 2014-09 Net sales $ 2,541,488 $ 2,551,962 $ (10,474 ) Cost of sales 1,201,351 1,201,165 186 |
Disaggregation of Revenue [Table Text Block] | The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2018 Americas Europe Asia Corporate Total Product Type Watches $ 936,875 $ 656,948 $ 439,029 $ 169 $ 2,033,021 Leathers 171,808 67,264 50,313 — 289,385 Jewelry 50,266 111,603 5,906 — 167,775 Other 15,558 20,476 10,225 5,048 51,307 Consolidated $ 1,174,507 $ 856,291 $ 505,473 $ 5,217 $ 2,541,488 Timing of Revenue Recognition Revenue recognized at a point in time $ 1,172,200 $ 855,219 $ 504,956 $ 4,477 $ 2,536,852 Revenue recognized over time 2,307 1,072 517 740 4,636 Consolidated $ 1,174,507 $ 856,291 $ 505,473 $ 5,217 $ 2,541,488 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in thousands): At Fiscal Year End 2018 2017 Components and parts $ 28,183 $ 52,837 Work-in-process 9,458 15,983 Finished goods 339,981 504,968 Inventories $ 377,622 $ 573,788 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty liability activity | Warranty liability activity consisted of the following (in thousands): Fiscal Year 2018 2017 2016 Beginning balance $ 19,405 $ 15,421 $ 13,669 Settlements in cash or kind (15,197 ) (15,177 ) (9,616 ) Warranties issued and adjustments to preexisting warranties (1) 18,599 19,161 11,368 Ending balance $ 22,807 $ 19,405 $ 15,421 ____________________________________________ (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. 29, 2018 | |
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 2018 2017 Prepaid royalties $ 43,074 $ 19,353 Prepaid taxes and tax receivables 37,587 41,811 Other receivables 7,092 12,659 Forward contracts 9,232 2,291 Inventory returns 23,509 — Prepaid rent 7,700 7,763 Property held for sale 1,135 12,273 Short term deposits 876 1,679 Other 19,347 21,114 Prepaid expenses and other current assets $ 149,552 $ 118,943 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of the components of property, plant and equipment-net | Property, plant and equipment—net consisted of the following (in thousands): At Fiscal Year End 2018 2017 Land $ 7,736 $ 5,725 Buildings 37,766 30,887 Machinery and equipment 39,583 41,221 Furniture and fixtures 102,141 111,641 Computer equipment and software 243,490 243,199 Leasehold improvements 198,703 214,485 Construction in progress 7,103 4,498 636,522 651,656 Less accumulated depreciation and amortization 453,319 431,914 Property, plant and equipment-net $ 183,203 $ 219,742 |
Intangible and Other Assets (Ta
Intangible and Other Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
INTANGIBLE AND OTHER ASSETS | |
Schedule of intangible and other assets-net | Intangible and other assets-net consisted of the following (in thousands): 2018 2017 At Fiscal Year End Useful Lives Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 4,293 $ 3,859 $ 4,310 $ 3,676 Customer lists 5 - 10 yrs. 52,635 38,028 55,164 34,023 Patents 3 - 20 yrs. 2,310 2,154 2,325 2,132 Noncompete agreement 3 - 6 yrs. — — 2,553 2,243 Developed technology 7 yrs. 36,100 15,471 36,100 10,314 Other 7 - 20 yrs. 261 247 266 241 Total intangibles-subject to amortization 95,599 59,759 100,718 52,629 Intangibles-not subject to amortization: Trade names 32,427 38,643 Other assets: Key money deposits 25,084 23,261 27,196 23,845 Other deposits 17,818 19,269 Deferred compensation plan assets 4,442 4,806 Deferred tax asset-net 23,695 27,112 Restricted cash 7,479 377 Shop-in-shop 6,054 6,023 8,864 8,606 Tax receivable 7,060 478 Forward contracts 453 147 Investments 500 500 Other 1,858 4,612 Total other assets 94,443 29,284 93,361 32,451 Total intangible and other assets $ 222,469 $ 89,043 $ 232,722 $ 85,080 Total intangible and other assets-net $ 133,426 $ 147,642 |
Schedule of estimated aggregate future amortization expense by fiscal year for intangible assets | Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization Expense 2019 $ 11,455 2020 10,933 2021 7,104 2022 6,247 2023 65 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding forward contracts | As of December 29, 2018 , 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 143.3 U.S. dollar 172.4 Canadian dollar 60.0 U.S. dollar 46.3 British pound 21.6 U.S. dollar 28.7 Japanese yen 2,183.0 U.S. dollar 20.2 Mexican peso 396.6 U.S. dollar 19.8 Australian dollar 10.9 U.S. dollar 7.8 U.S. dollar 26.1 Japanese Yen 2,835.0 |
Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes | The effective portion of gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during fiscal years 2018 , 2017 and 2016 are set forth below (in thousands): Fiscal Year 2018 2017 2016 Cash flow hedges: Forward contracts $ 18,044 $ (25,088 ) $ 13,565 Interest rate swaps — 278 (730 ) Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 18,044 $ (24,810 ) $ 12,835 |
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 2018 , 2017 and 2016 (in thousands): Derivative Instruments Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Effect of Derivative Instruments Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ (2,629 ) $ (4,297 ) $ 10,986 Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ 244 $ (652 ) $ (82 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ (260 ) $ (1,080 ) Interest rate swap not designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) recognized in income $ 67 $ — $ — Interest rate swap not designated as a cash flow hedging instrument Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ 195 $ — |
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 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Consolidated Balance Sheets Location Fair Value Forward contracts designated as cash flow hedging instruments Prepaid expenses and other current assets $ 9,217 Prepaid expenses and other current assets $ 2,291 Accrued expenses-other $ 660 Accrued expenses-other $ 14,798 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets 15 Prepaid expenses and other current assets — Accrued expenses-other — Accrued expenses-other 362 Interest rate swap not designated as a cash flow hedging instrument Prepaid expenses and other current assets — Prepaid expenses and other current assets 195 Accrued expenses-other — Accrued expenses-other — Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 453 Intangible and other assets-net 147 Other long-term liabilities 70 Other long-term liabilities 2,725 Total $ 9,685 $ 2,633 $ 730 $ 17,885 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 (in thousands): Fair Value at December 29, 2018 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 9,685 $ — $ 9,685 Deferred compensation plan assets: Investment in publicly traded mutual funds 4,442 — — 4,442 Total $ 4,442 $ 9,685 $ — $ 14,127 Liabilities: Contingent consideration $ — $ — $ 2,174 $ 2,174 Forward contracts — 730 — 730 Total $ — $ 730 $ 2,174 $ 2,904 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, 2017 (in thousands): Fair Value at December 30, 2017 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 2,438 $ — $ 2,438 Deferred compensation plan assets: Investment in publicly traded mutual funds 4,806 — — 4,806 Interest rate swaps — 195 — 195 Total $ 4,806 $ 2,633 $ — $ 7,439 Liabilities: Contingent consideration $ — $ — $ 6,452 $ 6,452 Forward contracts — 17,885 — 17,885 Total $ — $ 17,885 $ 6,452 $ 24,337 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of components of debt excluding capital lease obligations | The Company's debt consisted of the following, excluding capital lease obligations, (in millions): December 29, 2018 December 30, 2017 U.S. revolving line of credit (1) $ — $ 440.3 U.S. term loan (2) 392.3 — Other international 0.4 0.9 Total debt $ 392.7 $ 441.2 Less current portion 125.4 0.9 Long-term debt $ 267.3 $ 440.3 ___________________________________________ (1) Net of debt issuance costs of $4.7 million at December 30, 2017 (2) Net of debt issuance costs of $7.7 million at December 29, 2018 |
Schedule of maturity of debt excluding capital lease obligations | The Company's debt as of December 29, 2018 , excluding capital lease obligations, matures as follows (in millions): Less than 1 Year $ 125.4 Year 2 275.0 Principal amounts repayable 400.4 Debt issuance costs (7.7 ) Total debt outstanding $ 392.7 |
Other Income (Expense)_Net (Tab
Other Income (Expense)—Net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense)—net | Other income (expense)—net consisted of the following (in thousands): Fiscal Year 2018 2017 2016 Interest income $ 2,605 $ 4,729 $ 2,156 Contingent consideration remeasurement 3,381 — — Gain on interest rate swap — 195 — Equity in losses of unconsolidated investment (558 ) (460 ) (1,321 ) Extinguishment of debt (718 ) (1,029 ) — Gain on divestiture — 1,750 3,500 Net currency (losses) gains (5,820 ) 7,849 8,729 Other net gains 1,072 702 992 Other income (expense) - net $ (38 ) $ 13,736 $ 14,056 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 Deferred income tax assets (liabilities): Bad debt allowance $ 1,974 $ 2,920 Returns allowance 4,935 3,662 Inventory 4,519 13,409 Warranty liabilities 3,317 2,656 Markdown allowance 2,800 — Compensation 18,772 19,005 Accrued liabilities 5,903 9,881 Deferred rent 7,996 12,403 Deferred income 5,706 — Unrealized exchange gains (losses) 637 5,553 State income tax and interest on tax contingencies 1,189 1,410 Fixed assets (8,009 ) (13,442 ) Trade names and customer lists 1,703 (2,607 ) Goodwill 17,957 19,982 Other intangibles (4,562 ) (5,985 ) Undistributed earnings of certain foreign subsidiaries (541 ) (1,018 ) Foreign accruals 8,528 8,501 Loss carryforwards 31,582 27,868 Tax credit carryforwards 512 — Valuation allowance (95,818 ) (78,314 ) Capitalized R&D 2,546 — Interest disallowance 9,642 — Other (32 ) 132 Net deferred income tax assets $ 21,256 $ 26,016 Total deferred income tax assets $ 23,695 $ 27,112 Total deferred income tax liabilities (2,439 ) (1,096 ) Net deferred income tax assets $ 21,256 $ 26,016 |
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 2019 through 2023 $ 31,763 Expires 2024 through 2028 27,816 Expires 2029 through 2033 136 Expires 2034 through 2038 58,975 Indefinite 16,402 Total loss carryforwards $ 135,092 |
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 2018 2017 2016 U.S $ (102,810 ) $ (517,227 ) $ (72,249 ) Non-U.S 122,980 63,473 186,557 Total $ 20,170 $ (453,754 ) $ 114,308 |
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 2018 2017 2016 Current provision: U.S. federal $ (14,386 ) $ 30,817 $ 2,111 Non-U.S 35,854 40,423 53,880 State and local (2,056 ) (2,055 ) (1,482 ) Total current 19,412 69,185 54,509 Deferred provision (benefit): U.S. federal — (45,990 ) (20,216 ) Non-U.S 1,696 (3,770 ) (5,584 ) State and local — 380 (4 ) Total deferred 1,696 (49,380 ) (25,804 ) Provision for income taxes $ 21,108 $ 19,805 $ 28,705 |
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 2018 2017 2016 Tax at statutory rate 21.0 % 35.0 % 35.0 % Non-deductible expenses and other permanent differences 5.1 (0.6 ) 5.3 State, net of federal tax benefit (3.8 ) 1.0 0.6 Foreign rate differential (12.3 ) 3.7 (30.9 ) Withholding taxes 16.3 — — GILTI Tax-net of foreign tax credits 11.8 — — U.S. tax on foreign income-net of foreign tax credits 6.4 (1.7 ) 5.0 Income tax contingencies (5.0 ) (0.1 ) 0.3 Valuation allowances 65.0 (12.5 ) 8.1 Repatriation tax - net impact 5.9 (7.4 ) — Deficiencies on employee stock awards 10.1 (0.9 ) — Non-deductible goodwill impairment — (15.2 ) — Tax Reform rate reduction impact on deferred tax assets (15.8 ) (6.2 ) — Return to provision true-up — — 1.7 Other — 0.5 — Provision for income taxes 104.7 % (4.4 )% 25.1 % |
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 2018 2017 2016 Balance at beginning of year $ 35,355 $ 23,399 $ 23,022 Gross increases—tax positions in prior years 7,183 2,104 918 Gross decreases—tax positions in prior years (124 ) (845 ) (183 ) Gross increases—tax positions in current year 576 13,444 974 Settlements — (81 ) (181 ) Lapse in statute of limitations (2,980 ) (2,706 ) (1,106 ) Change due to currency revaluation (101 ) 40 (45 ) Balance at end of year $ 39,909 $ 35,355 $ 23,399 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 Commitments 2019 $ 146,600 2020 3,324 2021 2,355 Thereafter 17,995 Total $ 170,274 |
Schedule of future minimum rental commitments under non-cancelable leases | Future minimum rental commitments under non-cancelable leases, by fiscal year, are as follows (in thousands): Fiscal Year Operating Leases Capital Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — $ 646,762 $ 3,541 Less amounts representing interest 84 Capital lease obligations $ 3,457 |
Summary 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 2018 2017 Beginning asset retirement obligation $ 13,086 $ 12,678 Liabilities incurred during the period 166 549 Liabilities settled during the period (1,150 ) (1,472 ) Accretion expense 366 363 Currency translation (606 ) 968 Ending asset retirement obligations $ 11,862 $ 13,086 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average assumptions for the stock options and stock appreciation rights grants | The table below outlines the weighted-average assumptions for these award grants: Fiscal Year 2016 Risk-free interest rate 1.1 % Expected term (in years) 3.0 Expected volatility 38.8 % Expected dividend yield — % Estimated fair value per stock option/stock appreciation right granted $ 11.25 |
Summary of stock options and stock appreciation rights activity | The following table summarizes stock option, stock appreciation rights and performance stock appreciation rights activity: Stock Options and Stock Appreciation Rights Shares Weighted-Average Weighted-Average Aggregate in thousands in thousands Outstanding at January 2, 2016 2,028 $ 52.80 8.7 $ 2,095 Granted 326 41.53 Exercised (10 ) 26.93 186 Forfeited or expired (57 ) 81.93 Outstanding at December 31, 2016 2,287 50.58 6.2 627 Granted — — Exercised (13 ) 13.65 35 Forfeited or expired (97 ) 67.99 Outstanding at December 30, 2017 2,177 50.01 5.3 — Granted — — Exercised (21 ) 14.46 37 Forfeited or expired (226 ) 59.58 Outstanding at December 29, 2018 1,930 49.25 1.3 37 Exercisable at December 29, 2018 1,363 $ 54.12 1.5 $ 37 |
Summary of stock options and stock appreciation rights outstanding and exercisable | The following tables summarize information with respect to stock options, stock appreciation rights and performance stock appreciation rights outstanding and exercisable at December 29, 2018 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $13.65 - $29.49 14 $ 13.65 0.2 14 $ 13.65 $36.73 - $70.12 40 38.40 1.1 40 38.40 $80.22 - $127.84 181 107.86 2.6 181 107.86 $128.29 - $131.46 6 130.80 3.1 6 130.80 Total 241 $ 91.29 2.2 241 $ 91.29 Stock Appreciation Rights Outstanding Stock Appreciation Rights Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $13.65 - $29.49 48 $ 29.49 5.6 32 $ 29.49 $36.73 - $70.12 1,419 38.11 0.8 891 38.30 $80.22 - $127.84 156 93.85 3.4 156 93.85 $128.29 - $131.46 5 128.29 0.5 5 128.29 Total 1,628 $ 43.49 1.2 1,084 $ 46.47 Cash Stock Appreciation Rights Outstanding Cash Stock Appreciation Rights Exercisable Range of Exercise Prices Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted- Average Exercise Price in thousands in thousands $36.73 - $70.12 61 $ 36.73 0.2 38 $ 36.73 Total 61 $ 36.73 0.2 38 $ 36.73 |
Summary 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, Restricted Stock Units and Performance Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Per Share in thousands Nonvested at January 2, 2016 1,208 $ 53.87 Granted 588 27.94 Vested (327 ) 64.51 Forfeited (64 ) 56.29 Nonvested at December 31, 2016 1,405 $ 40.41 Granted 2,381 14.81 Vested (479 ) 44.79 Forfeited (326 ) 25.62 Nonvested at December 30, 2017 2,981 $ 20.84 Granted 1,456 14.35 Vested (1,040 ) 25.21 Forfeited (386 ) 19.87 Nonvested at December 29, 2018 3,011 $ 17.86 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of supplemental cash flow information | The following table summarizes supplemental cash flow information (in thousands): Fiscal Year 2018 2017 2016 Cash paid during the year for: Interest $ 38,855 $ 43,245 $ 26,867 Income taxes, net of refunds $ 28,460 $ 36,571 $ 14,163 Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 3,868 $ 2,300 $ 4,762 Additions to property, plant and equipment acquired under capital leases $ — $ — $ 432 |
Supplemental Disclosure for A_2
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Pension Plan Total Beginning balance $ (64,499 ) $ (10,098 ) $ (1,672 ) $ (76,269 ) Other comprehensive income (loss) before reclassifications (10,369 ) 18,044 3,757 11,432 Tax (expense) benefit — — (490 ) (490 ) Amounts reclassed from accumulated other comprehensive income (loss) — (4,283 ) — (4,283 ) Tax (expense) benefit — 1,654 — 1,654 Total other comprehensive income (loss) (10,369 ) 20,673 3,267 13,571 Adoption of ASU 2018-02 (Note 1) — (1,993 ) — (1,993 ) Ending balance $ (74,868 ) $ 8,582 $ 1,595 $ (64,691 ) December 30, 2017 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (101,867 ) $ 10,693 $ (343 ) $ (3,907 ) $ (95,424 ) Other comprehensive income (loss) before reclassifications 37,368 (34,873 ) 437 2,677 5,609 Tax (expense) benefit — 9,785 (159 ) (442 ) 9,184 Amounts reclassed from accumulated other comprehensive income (loss) — (1,076 ) (214 ) — (1,290 ) Tax (expense) benefit — (3,221 ) 149 — (3,072 ) Total other comprehensive income (loss) 37,368 (20,791 ) 343 2,235 19,155 Ending balance $ (64,499 ) $ (10,098 ) $ — $ (1,672 ) $ (76,269 ) December 31, 2016 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Interest Rate Swaps Pension Plan Total Beginning balance $ (81,707 ) $ 8,114 $ (693 ) $ (6,220 ) $ (80,506 ) Other comprehensive income (loss) before reclassifications (19,773 ) 22,638 (1,149 ) 2,650 4,366 Tax (expense) benefit (283 ) (9,073 ) 419 (337 ) (9,274 ) Amounts reclassed from accumulated other comprehensive income (loss) 104 16,143 (1,699 ) — 14,548 Tax (expense) benefit — (5,157 ) 619 — (4,538 ) Total other comprehensive income (loss) (20,160 ) 2,579 350 2,313 (14,918 ) Ending balance $ (101,867 ) $ 10,693 $ (343 ) $ (3,907 ) $ (95,424 ) |
Major Customer, Segment and G_2
Major Customer, Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Summary information by operating segment | Summary information by operating segment was as follows (in thousands): Fiscal Year 2018 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,174,507 $ 185,094 $ 16,542 $ 61,914 $ 393,273 Europe 856,291 129,610 18,933 99,253 353,797 Asia 505,473 87,515 8,016 29,990 173,666 Corporate 5,217 (339,508 ) 23,588 125,472 654,462 Consolidated $ 2,541,488 $ 62,711 $ 67,079 $ 316,629 $ 1,575,198 Fiscal Year 2017 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,314,348 $ (47,836 ) $ 21,214 $ 81,444 $ 463,175 Europe 971,820 32,871 21,368 113,621 471,375 Asia 496,392 (12,490 ) 10,798 33,160 216,660 Corporate 5,603 (396,821 ) 28,197 139,159 507,162 Consolidated $ 2,788,163 $ (424,276 ) $ 81,577 $ 367,384 $ 1,658,372 Fiscal Year 2016 Net Sales Operating Income Depreciation and Amortization Long-term Assets Total Assets Americas $ 1,523,534 $ 239,740 $ 22,612 $ 313,437 $ 741,082 Europe 996,790 172,505 22,505 237,801 534,413 Asia 514,717 76,749 12,676 81,434 237,695 Corporate 7,330 (361,848 ) 33,704 206,935 673,707 Consolidated $ 3,042,371 $ 127,146 $ 91,497 $ 839,607 $ 2,186,897 |
Schedule of revenue for each class of similar products | The following table shows revenue for each class of similar products for fiscal years 2018 , 2017 and 2016 (in thousands): Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Net Sales Percentage of Total Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 2,033,021 80.0 % $ 2,199,031 78.9 % $ 2,330,275 76.6 % Leathers 289,385 11.4 325,502 11.7 393,761 12.9 Jewelry 167,775 6.6 211,694 7.6 251,391 8.3 Other 51,307 2.0 51,936 1.8 66,944 2.2 Total $ 2,541,488 100.0 % $ 2,788,163 100.0 % $ 3,042,371 100.0 % |
Schedule of net sales and long-lived assets by geographic area | Net sales and long-lived 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 2018 Net Sales (1) Long-term Assets United States $ 1,017,919 $ 159,062 Europe 857,972 (2) 111,964 Asia 507,523 36,945 All other international 158,074 8,658 Consolidated $ 2,541,488 $ 316,629 Fiscal Year 2017 Net Sales (1) Long-term Assets United States $ 1,157,568 $ 189,209 Europe 974,198 (2) 127,344 Asia 497,816 40,874 All other international 158,581 9,957 Consolidated $ 2,788,163 $ 367,384 Fiscal Year 2016 Net Sales (1) Long-term Assets United States $ 1,355,586 $ 470,358 Europe 1,002,077 (2) 260,277 Asia 515,383 93,111 All other international 169,325 15,861 Consolidated $ 3,042,371 $ 839,607 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity. (2) Net sales from Germany accounted for more than 10% of the Company's consolidated net sales and were approximately $359.9 million , $406.2 million and $467.7 million in fiscal years 2018 , 2017 and 2016 , respectively. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of rollforward of the liability incurred for restructuring plan | The following tables show a rollforward of the liabilities incurred under the Company's restructuring plans (in thousands): Fiscal Year 2018 Liabilities Cash payments Non-cash items Liabilities December 30, 2017 Charges December 29, 2018 Store closures $ 2,973 $ 14,906 $ 14,141 $ 920 $ 2,818 Professional services 185 12,439 10,426 — 2,198 Severance and employee-related benefits 1,317 19,285 12,259 5,332 3,011 Total $ 4,475 $ 46,630 $ 36,826 $ 6,252 $ 8,027 Fiscal Year 2017 Liabilities Cash payments Non-cash items Liabilities December 31, 2016 Charges December 30, 2017 Store closures $ 4,546 $ 13,045 $ 6,636 $ 7,982 $ 2,973 Professional services and other 794 3,507 2,618 1,498 185 Severance and employee-related benefits — 31,619 29,098 1,204 1,317 Total $ 5,340 $ 48,171 $ 38,352 $ 10,684 $ 4,475 Fiscal Year 2016 Liabilities Cash payments Non-cash items Liabilities January 2, 2016 Charges December 31, 2016 Store closures $ — $ 22,247 $ 3,430 $ 14,271 $ 4,546 Professional services — 4,057 3,263 — 794 Supply chain relocation — 1,474 — 1,474 — Total $ — $ 27,778 $ 6,693 $ 15,745 $ 5,340 |
Schedule of restructuring charges by operating segment | Restructuring charges by operating segment were as follows by fiscal year (in thousands): 2018 2017 2016 Americas $ 17,197 $ 12,964 $ 19,745 Europe 10,116 12,606 1,888 Asia 2,946 9,894 746 Corporate 16,371 12,707 5,399 Consolidated $ 46,630 $ 48,171 $ 27,778 |
Significant Accounting Polici_4
Significant Accounting Policies (Concentration of Risk) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Non-Swiss watch assembly | Production | Production concentration | |||
Concentration of Risk | |||
Concentration risk percentage | 49.00% | ||
Licensed products | Sales of licensed products | Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 46.60% | 47.00% | 47.60% |
MICHAEL KORS | Sales of licensed products | Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 22.60% | 22.60% | 22.70% |
Significant Accounting Polici_5
Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term restricted cash balance | $ 7.5 | $ 0.4 |
Significant Accounting Polici_6
Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts receivable | $ 14 | $ 12.9 |
Significant Accounting Polici_7
Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Consigned inventory | $ 43.7 | $ 54.5 |
Significant Accounting Polici_8
Significant Accounting Policies (Investments) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cost method investments | $ 0.5 | $ 0.5 |
Significant Accounting Polici_9
Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
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 | ||
Restructuring charges | |||
Property, plant and equipment | |||
Loss on disposal of assets | $ 0.6 | $ 0.4 | $ 1.5 |
Restructuring charges | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | 1.7 | 8 | 13.5 |
Selling, general and administrative | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | $ 1.9 | $ 1.3 | $ 0.8 |
Significant Accounting Polic_10
Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) | 12 Months Ended | ||
Dec. 29, 2018USD ($)reporting_unit | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Finite lived intangible assets | |||
Number of reporting units that evaluate goodwill for impairment | reporting_unit | 3 | ||
Goodwill, impairment loss | $ 359,493,000 | ||
Americas | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | 202,349,000 | ||
Europe | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | 114,274,000 | ||
Asia | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | 42,870,000 | ||
Trade name | |||
Finite lived intangible assets | |||
Impairment charges | $ 0 | ||
Trade Names, SKAGEN | |||
Finite lived intangible assets | |||
Indefinite-lived intangible assets (excluding goodwill) | $ 27,300,000 | 55,600,000 | |
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 21,100,000 | 27,300,000 | |
Impairment charges | $ 6,200,000 | 28,300,000 | |
Trade Names, MISFIT | |||
Finite lived intangible assets | |||
Indefinite-lived intangible assets (excluding goodwill) | 11,800,000 | ||
Impairment charges | 11,800,000 | ||
Trade Name, MICHELE | |||
Finite lived intangible assets | |||
Indefinite-lived intangible assets (excluding goodwill) | 18,500,000 | ||
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 10,900,000 | ||
Impairment charges | $ 7,600,000 | ||
Minimum | |||
Finite lived intangible assets | |||
Useful lives | 3 years | ||
Maximum | |||
Finite lived intangible assets | |||
Useful lives | 20 years |
Significant Accounting Polic_11
Significant Accounting Policies (Foreign Transaction Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency transaction gains (losses) | $ (5,820) | $ 7,849 | $ 8,729 |
Significant Accounting Polic_12
Significant Accounting Policies Significant Accounting Policies (Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Estimated sales return provision | $ 67.1 | $ 75.2 |
Significant Accounting Polic_13
Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs | $ 181 | $ 207.1 | $ 238.4 |
Significant Accounting Polic_14
Significant Accounting Policies (Research and Development Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development costs | $ 38.2 | $ 42.8 | $ 38.6 |
Significant Accounting Polic_15
Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net income (loss) attributable to Fossil Group, Inc. | $ (3,478) | $ (478,172) | $ 78,868 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 49,196 | 48,468 | 48,136 |
Basic EPS (in dollars per share) | $ (0.07) | $ (9.87) | $ 1.64 |
Diluted EPS computation: | |||
Basic weighted average common shares outstanding (in shares) | 49,196 | 48,468 | 48,136 |
Stock options, stock appreciation rights and restricted stock units (in shares) | 0 | 0 | 187 |
Diluted weighted average common shares outstanding (in shares) | 49,196 | 48,468 | 48,323 |
Diluted EPS (in dollars per share) | $ (0.07) | $ (9.87) | $ 1.63 |
Stock Compensation Plan | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 5,100 | 4,600 | 2,300 |
Performance Shares | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 1,200 | 1,200 | |
Performance Shares | |||
Diluted EPS computation: | |||
Stock options, stock appreciation rights and restricted stock units (in shares) | 300 |
Significant Accounting Polic_16
Significant Accounting Policies Significant Accounting Policies (Schedule of Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 403,373 | $ 231,244 | $ 297,330 | |
Restricted cash included in prepaid expenses and other current assets | 31 | 34 | 32 | |
Restricted cash included in intangible and other assets-net | 7,479 | 377 | 500 | |
Cash, cash equivalents and restricted cash | $ 410,883 | $ 231,655 | $ 297,862 | $ 289,819 |
Significant Accounting Polic_17
Significant Accounting Policies Significant Accounting Policies (Recently Issued and Adopted Accounting Standards) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adoption of ASU 2018-02 | $ 2 | |
Forecast | Minimum | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 330 | |
Operating lease liability | 330 | |
Forecast | Maximum | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | 430 | |
Operating lease liability | $ 430 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 355,263 |
Foreign currency changes | 4,230 |
Impairment charges | (359,493) |
Ending balance | 0 |
Goodwill | 355,263 |
Americas | |
Goodwill [Roll Forward] | |
Beginning balance | 202,187 |
Foreign currency changes | 162 |
Impairment charges | (202,349) |
Ending balance | 0 |
Goodwill | 202,187 |
Europe | |
Goodwill [Roll Forward] | |
Beginning balance | 110,291 |
Foreign currency changes | 3,983 |
Impairment charges | (114,274) |
Ending balance | 0 |
Goodwill | 110,291 |
Asia | |
Goodwill [Roll Forward] | |
Beginning balance | 42,785 |
Foreign currency changes | 85 |
Impairment charges | (42,870) |
Ending balance | 0 |
Goodwill | $ 42,785 |
Revenue (Summary of Impact on F
Revenue (Summary of Impact on Financial Statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Accounts receivable | $ 328,022 | $ 367,013 | |
Inventories | 377,622 | 573,788 | |
Prepaid expenses and other current assets | 149,552 | 118,943 | |
Liabilities: | |||
Customer liabilities | 71,252 | 27,946 | |
Net sales | 2,541,488 | 2,788,163 | $ 3,042,371 |
Cost of sales | 1,201,351 | $ 1,429,324 | $ 1,464,185 |
Without Adoption of ASU 2014-09 | |||
Assets | |||
Accounts receivable | 301,217 | ||
Inventories | 401,317 | ||
Prepaid expenses and other current assets | 126,043 | ||
Liabilities: | |||
Customer liabilities | 25,780 | ||
Net sales | 2,551,962 | ||
Cost of sales | 1,201,165 | ||
Impact of Adoption of ASU 2014-09 | Accounting Standards Update 2014-09 | |||
Assets | |||
Accounts receivable | 26,805 | ||
Inventories | (23,695) | ||
Prepaid expenses and other current assets | 23,509 | ||
Liabilities: | |||
Customer liabilities | 45,472 | ||
Net sales | (10,474) | ||
Cost of sales | $ 186 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Material contract assets | $ 0 | |
Deferred contract costs | 0 | |
Contract liabilities | $ 21,800,000 | $ 0 |
Online Dashboard, Mobile Applications, and Upgrade Rights | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Estimated usage period | 2 years | |
Wearable Technology | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 6,200,000 | 4,600,000 |
Gift Cards | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 3,800,000 | $ 7,200,000 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,541,488 | $ 2,788,163 | $ 3,042,371 |
Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,536,852 | ||
Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,636 | ||
Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,033,021 | 2,199,031 | 2,330,275 |
Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 289,385 | 325,502 | 393,761 |
Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 167,775 | 211,694 | 251,391 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 51,307 | 51,936 | 66,944 |
Operating segments | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,174,507 | 1,314,348 | 1,523,534 |
Operating segments | Americas | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,172,200 | ||
Operating segments | Americas | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,307 | ||
Operating segments | Americas | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 936,875 | ||
Operating segments | Americas | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 171,808 | ||
Operating segments | Americas | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 50,266 | ||
Operating segments | Americas | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,558 | ||
Operating segments | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 856,291 | 971,820 | 996,790 |
Operating segments | Europe | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 855,219 | ||
Operating segments | Europe | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,072 | ||
Operating segments | Europe | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 656,948 | ||
Operating segments | Europe | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 67,264 | ||
Operating segments | Europe | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 111,603 | ||
Operating segments | Europe | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 20,476 | ||
Operating segments | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 505,473 | 496,392 | 514,717 |
Operating segments | Asia | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 504,956 | ||
Operating segments | Asia | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 517 | ||
Operating segments | Asia | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 439,029 | ||
Operating segments | Asia | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 50,313 | ||
Operating segments | Asia | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,906 | ||
Operating segments | Asia | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,225 | ||
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,217 | $ 5,603 | $ 7,330 |
Corporate | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,477 | ||
Corporate | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 740 | ||
Corporate | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 169 | ||
Corporate | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | ||
Corporate | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | ||
Corporate | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 5,048 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Components and parts | $ 28,183 | $ 52,837 |
Work-in-process | 9,458 | 15,983 |
Finished goods | 339,981 | 504,968 |
Inventories | $ 377,622 | $ 573,788 |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Product Information [Line Items] | |||
Warranty period | 2 years | ||
Warranty liability activity | |||
Beginning balance | $ 19,405 | $ 15,421 | $ 13,669 |
Settlements in cash or kind | (15,197) | (15,177) | (9,616) |
Warranties issued and adjustments to preexisting warranties | 18,599 | 19,161 | 11,368 |
Ending balance | $ 22,807 | $ 19,405 | $ 15,421 |
FOSSIL watch products | |||
Product Information [Line Items] | |||
Warranty period | 11 years | ||
RELIC watch products | |||
Product Information [Line Items] | |||
Warranty period | 12 years | ||
Other non-watch products | Minimum | |||
Product Information [Line Items] | |||
Warranty period | 1 year | ||
Other non-watch products | Maximum | |||
Product Information [Line Items] | |||
Warranty period | 2 years |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid royalties | $ 43,074 | $ 19,353 |
Prepaid taxes and tax receivables | 37,587 | 41,811 |
Other receivables | 7,092 | 12,659 |
Forward contracts | 9,232 | 2,291 |
Inventory returns | 23,509 | 0 |
Prepaid rent | 7,700 | 7,763 |
Property held for sale | 1,135 | 12,273 |
Short term deposits | 876 | 1,679 |
Other | 19,347 | 21,114 |
Prepaid expenses and other current assets | $ 149,552 | $ 118,943 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 636,522 | $ 651,656 |
Less accumulated depreciation and amortization | 453,319 | 431,914 |
Property, plant and equipment-net | 183,203 | 219,742 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 7,736 | 5,725 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 37,766 | 30,887 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 39,583 | 41,221 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 102,141 | 111,641 |
Computer equipment and software | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 243,490 | 243,199 |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 198,703 | 214,485 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 7,103 | $ 4,498 |
Intangible and Other Assets (In
Intangible and Other Assets (Intangible and Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Intangibles-subject to amortization: | ||
Gross Amount | $ 95,599 | $ 100,718 |
Accumulated Amortization | 59,759 | 52,629 |
Intangibles-not subject to amortization: | ||
Gross Amount | 32,427 | 38,643 |
Other assets: | ||
Gross Amount | 94,443 | 93,361 |
Accumulated Amortization | 29,284 | 32,451 |
Gross Amount | 222,469 | 232,722 |
Accumulated Amortization | 89,043 | 85,080 |
Total intangible and other assets-net | 133,426 | 147,642 |
Key money deposits | ||
Other assets: | ||
Gross Amount | 25,084 | 27,196 |
Accumulated Amortization | 23,261 | 23,845 |
Other deposits | ||
Other assets: | ||
Gross Amount | 17,818 | 19,269 |
Deferred compensation plan assets | ||
Other assets: | ||
Gross Amount | 4,442 | 4,806 |
Deferred tax asset-net | ||
Other assets: | ||
Gross Amount | 23,695 | 27,112 |
Restricted cash | ||
Other assets: | ||
Gross Amount | 7,479 | 377 |
Shop-in-shop | ||
Other assets: | ||
Gross Amount | 6,054 | 8,864 |
Accumulated Amortization | 6,023 | 8,606 |
Tax receivable | ||
Other assets: | ||
Gross Amount | 7,060 | 478 |
Forward contracts | ||
Other assets: | ||
Gross Amount | 453 | 147 |
Investments | ||
Other assets: | ||
Gross Amount | 500 | 500 |
Other | ||
Other assets: | ||
Gross Amount | $ 1,858 | 4,612 |
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 | $ 4,293 | 4,310 |
Accumulated Amortization | 3,859 | 3,676 |
Customer lists | ||
Intangibles-subject to amortization: | ||
Gross Amount | 52,635 | 55,164 |
Accumulated Amortization | $ 38,028 | 34,023 |
Customer lists | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 5 years | |
Customer lists | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 10 years | |
Patents | ||
Intangibles-subject to amortization: | ||
Gross Amount | $ 2,310 | 2,325 |
Accumulated Amortization | $ 2,154 | 2,132 |
Patents | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 3 years | |
Patents | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 20 years | |
Noncompete agreement | ||
Intangibles-subject to amortization: | ||
Gross Amount | $ 0 | 2,553 |
Accumulated Amortization | $ 0 | 2,243 |
Noncompete agreement | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 3 years | |
Noncompete agreement | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 6 years | |
Developed technology | ||
Intangibles-subject to amortization: | ||
Useful Lives | 7 years | |
Gross Amount | $ 36,100 | 36,100 |
Accumulated Amortization | 15,471 | 10,314 |
Other | ||
Intangibles-subject to amortization: | ||
Gross Amount | 261 | 266 |
Accumulated Amortization | $ 247 | $ 241 |
Other | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 7 years | |
Other | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 20 years |
Intangible and Other Assets (Am
Intangible and Other Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
INTANGIBLE AND OTHER ASSETS | |||
Amortization expense for intangible assets | $ 11,900 | $ 13,500 | $ 15,000 |
Estimated aggregate future amortization expense by fiscal year | |||
2,019 | 11,455 | ||
2,020 | 10,933 | ||
2,021 | 7,104 | ||
2,022 | 6,247 | ||
2,023 | $ 65 |
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 | 12 Months Ended | ||||||||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 29, 2018JPY (¥) | Dec. 29, 2018AUD ($) | Dec. 29, 2018MXN ($) | Dec. 29, 2018EUR (€) | Dec. 29, 2018CAD ($) | Dec. 29, 2018GBP (£) | |
Derivative [Line Items] | |||||||||
Hedges resulted ineffectiveness | $ 0 | $ 0 | $ 0 | ||||||
Gains or losses reclassified into earnings | $ (3,478,000) | (478,172,000) | 78,868,000 | ||||||
Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Maximum period of future intercompany purchases | 24 months | ||||||||
Percentage of forecasted purchases to manage fluctuations in global currencies (up to) | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | ||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Euro | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | $ 172,400,000 | € 143.3 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Canadian dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 46,300,000 | $ 60 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | British pound | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 28,700,000 | £ 21.6 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Japanese yen | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 20,200,000 | ¥ 2,183 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Mexican peso | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 19,800,000 | $ 396.6 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Australian dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 7,800,000 | $ 10.9 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | U.S. dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 26,100,000 | ¥ 2,835 | |||||||
Cash Flow Hedges | Amount Reclassified from AOCI | Unrealized gain (loss) on forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Gains or losses reclassified into earnings | $ 0 | $ 200,000 | $ 0 |
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. 29, 2018USD ($) | Dec. 29, 2018ZAR (R) | Dec. 30, 2017USD ($) | Dec. 30, 2017ZAR (R) |
Derivative [Line Items] | ||||
Fair value of designated forward contracts | $ | $ 1.2 | $ 2.9 | ||
Hedged amount | R | R 17.5 | R 39.8 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management (Gains and Losses on Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ 18,044 | $ (24,810) | $ 12,835 |
Cash Flow Hedges | Forward contracts | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | 18,044 | (25,088) | 13,565 |
Cash Flow Hedges | Interest rate swaps | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ 0 | $ 278 | $ (730) |
Derivatives and Risk Manageme_6
Derivatives and Risk Management (Gains and Losses on Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Designated as cash flow hedges | Cash Flow Hedges | Forward contracts | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) | $ (2,629) | $ (4,297) | $ 10,986 |
Designated as cash flow hedges | Cash Flow Hedges | Interest rate swaps | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 0 | 195 | 0 |
Designated as cash flow hedges | Cash Flow Hedges | Interest rate swaps | Interest expense | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 0 | (260) | (1,080) |
Not designated as hedging instruments | Forward contracts | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) recognized in income | 244 | (652) | (82) |
Not designated as hedging instruments | Interest rate swaps | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Total gain (loss) recognized in income | $ 67 | $ 0 | $ 0 |
Derivatives and Risk Manageme_7
Derivatives and Risk Management (Fair Value Amounts for Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Fair value of derivative instruments | ||
Asset Derivatives | $ 9,685 | $ 2,633 |
Liability Derivatives | 730 | 17,885 |
Gain expected to be reclassified into earnings within the next twelve months | 7,800 | |
Forward contracts | Designated as cash flow hedges | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 9,217 | 2,291 |
Forward contracts | Designated as cash flow hedges | Intangible and other assets-net | ||
Fair value of derivative instruments | ||
Asset Derivatives | 453 | 147 |
Forward contracts | Designated as cash flow hedges | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | 660 | 14,798 |
Forward contracts | Designated as cash flow hedges | Other long-term liabilities | ||
Fair value of derivative instruments | ||
Liability Derivatives | 70 | 2,725 |
Forward contracts | Not designated as hedging instruments | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 15 | 0 |
Forward contracts | Not designated as hedging instruments | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | 0 | 362 |
Interest rate contracts | Not designated as hedging instruments | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 0 | 195 |
Interest rate contracts | Not designated as hedging instruments | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | $ 0 | $ 0 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Assets: | ||
Forward contracts | $ 9,685 | $ 2,438 |
Investment in publicly traded mutual funds | 4,442 | 4,806 |
Interest rate swap | 195 | |
Total | 14,127 | 7,439 |
Liabilities: | ||
Contingent consideration | 2,174 | 6,452 |
Forward contracts | 730 | 17,885 |
Total | 2,904 | 24,337 |
Level 1 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Investment in publicly traded mutual funds | 4,442 | 4,806 |
Interest rate swap | 0 | |
Total | 4,442 | 4,806 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Forward contracts | 9,685 | 2,438 |
Investment in publicly traded mutual funds | 0 | 0 |
Interest rate swap | 195 | |
Total | 9,685 | 2,633 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 730 | 17,885 |
Total | 730 | 17,885 |
Level 3 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Investment in publicly traded mutual funds | 0 | 0 |
Interest rate swap | 0 | |
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration | 2,174 | 6,452 |
Forward contracts | 0 | 0 |
Total | $ 2,174 | $ 6,452 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment-net | $ 183,203 | $ 219,742 | |
Goodwill, impairment loss | 359,493 | ||
Contingent consideration remeasurement | 3,381 | 0 | $ 0 |
Trade Names, SKAGEN | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | 27,300 | 55,600 | |
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 21,100 | 27,300 | |
Impairment charges | 6,200 | 28,300 | |
Trade Names, MISFIT | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | 11,800 | ||
Impairment charges | 11,800 | ||
Trade Name, MICHELE | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | 18,500 | ||
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 10,900 | ||
Impairment charges | 7,600 | ||
Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, impairment loss | 202,349 | ||
Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, impairment loss | 114,274 | ||
Asia | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, impairment loss | 42,870 | ||
Specific company-owned stores | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment-net | 3,800 | 9,200 | |
Key money amount not recoverable | 200 | 700 | |
Impairment charge | 3,800 | 9,900 | |
Specific company-owned stores | Level 3 | Restructuring charges | Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 100 | ||
Specific company-owned stores | Level 3 | Restructuring charges | Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 1,800 | ||
Specific company-owned stores | Level 3 | Selling, general and administrative | Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 1,600 | ||
Specific company-owned stores | Level 3 | Selling, general and administrative | Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 300 | ||
Reported Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of debt | 445,900 | ||
Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of debt | $ 439,200 | ||
Estimate of Fair Value Measurement | Specific company-owned stores | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment-net | $ 200 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 392.7 | $ 441.2 |
Less current portion | 125.4 | 0.9 |
Long-term debt | 267.3 | 440.3 |
Debt issuance costs | 7.7 | 4.7 |
U.S. revolving line of credit | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 440.3 |
U.S. term loan | ||
Debt Instrument [Line Items] | ||
US term loan | 392.3 | 0 |
Other international | ||
Debt Instrument [Line Items] | ||
Short-term Debt | $ 0.4 | $ 0.9 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) R in Millions | Jan. 29, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 23, 2016ZAR (R) |
Debt Instrument | ||||||
Aggregate principal amount | $ 392,700,000 | $ 441,200,000 | ||||
Loss recorded in other income (expense) | 718,000 | 1,029,000 | $ 0 | |||
Outstanding principal balance, year one | 275,000,000 | |||||
Debt issuance costs amortization | $ 3,714,000 | 3,724,000 | $ 1,843,000 | |||
Debt instrument, face amount | R | R 20 | |||||
Debt instrument, interest rate, effective percentage | 10.25% | |||||
Term Loan Facility | ||||||
Debt Instrument | ||||||
Net borrowings under Term Loan | $ 400,000,000 | |||||
Second A&R Credit Agreement | ||||||
Debt Instrument | ||||||
Line of credit, voluntary permanent reduction in revolving credit capacity | $ 3,000,000 | |||||
Line of credit, incremental amount in excess of voluntary permanent reduction in revolving credit capacity | 1,000,000 | |||||
Debt instrument covenant, minimum trailing twelve month EBITDA | 110,000,000 | |||||
Debt instrument covenant, minimum liquidity requirement, cash and cash equivalents including amount available for borrowing | 160,000,000 | |||||
Debt instrument covenant, maximum capital expenditures per year | $ 35,000,000 | |||||
Second A&R Credit Agreement | Minimum | ||||||
Debt Instrument | ||||||
Debt instrument covenant, fixed charge coverage ratio | 115.00% | |||||
Debt instrument covenant, cash and cash equivalents including amount available for borrowing | $ 200,000,000 | |||||
Second A&R Credit Agreement | Debt covenant period ending December 29, 2018 | Maximum | ||||||
Debt Instrument | ||||||
Consolidated leverage ratio required (less than) | 4.25 | |||||
Second A&R Credit Agreement | Debt covenant period December 30, 2018 through September 29, 2019 | Maximum | ||||||
Debt Instrument | ||||||
Consolidated leverage ratio required (less than) | 3.75 | |||||
Second A&R Credit Agreement | Debt covenant period, thereafter | Maximum | ||||||
Debt Instrument | ||||||
Consolidated leverage ratio required (less than) | 3.5 | |||||
Second A&R Credit Agreement | Letter of Credit | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 45,000,000 | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 325,000,000 | |||||
Percentage of eligible accounts receivable | 85.00% | |||||
Percentage of net credit card receivables | 90.00% | |||||
Percentage of eligible accounts receivable of non-U.S. borrowers | 85.00% | |||||
Line of credit facility, borrowing base, excluding aggregate reserves, amount | $ 185,000,000 | |||||
Debt instrument, basis spread on variable rate, increase | 0.01 | |||||
Line of credit facility, commitment fee percentage | 0.50% | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | Base Rate | ||||||
Debt Instrument | ||||||
Line of credit facility, annual authorized prepayment amount | $ 1,000,000 | |||||
Increments in excess of minimum principal amount | $ 1,000,000 | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | Base Rate | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 1.50% | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | Base Rate | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 3.00% | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | LIBOR | ||||||
Debt Instrument | ||||||
Line of credit facility, annual authorized prepayment amount | $ 5,000,000 | |||||
Increments in excess of minimum principal amount | $ 1,000,000 | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | LIBOR | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 4.00% | |||||
Second A&R Credit Agreement | U.S. revolving line of credit | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 5.00% | |||||
Second A&R Credit Agreement | Term Loan Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 425,000,000 | |||||
Outstanding principal balance, year one | 125,000,000 | |||||
Outstanding principal balance, year two | 75,000,000 | |||||
Second A&R Credit Agreement | Term Loan Facility | Base Rate | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 5.50% | |||||
Second A&R Credit Agreement | Term Loan Facility | LIBOR | ||||||
Debt Instrument | ||||||
Line of credit facility, annual authorized prepayment amount | $ 5,000,000 | |||||
Increments in excess of minimum principal amount | $ 1,000,000 | |||||
Second A&R Credit Agreement | Term Loan Facility | LIBOR | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 7.00% | |||||
Credit Agreement | ||||||
Debt Instrument | ||||||
Penalties or other terminations fees | $ 0 | |||||
Loss recorded in other income (expense) | $ 700,000 | |||||
Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Aggregate principal amount | 497,000,000 | |||||
Credit Agreement | Term Loan Facility | ||||||
Debt Instrument | ||||||
Aggregate principal amount | $ 0 | |||||
U.S. term loan | ||||||
Debt Instrument | ||||||
Interest expense incurred | 33,500,000 | |||||
U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Aggregate principal amount | 0 | 440,300,000 | ||||
Net payments | 445,000,000 | |||||
Remaining borrowing capacity | 322,300,000 | |||||
Interest expense incurred | 3,300,000 | |||||
Capital lease obligations | ||||||
Debt Instrument | ||||||
Current capital lease obligations | 1,000,000 | 1,200,000 | ||||
Long-term capital lease obligations | 2,500,000 | 3,600,000 | ||||
Notes Payable to Banks | ||||||
Debt Instrument | ||||||
Short-term Debt | $ 400,000 | $ 900,000 | ||||
Lower Of Cost Or Market Value | United States Finished Goods Inventory | Second A&R Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 65.00% | |||||
Lower Of Cost Or Market Value | Foreign Finished Goods Inventory | Second A&R Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 65.00% | |||||
Net Liquidation Value | United States Finished Goods Inventory | Second A&R Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85.00% | |||||
Net Liquidation Value | Foreign Finished Goods Inventory | Second A&R Credit Agreement | U.S. revolving line of credit | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85.00% | |||||
Post Closing, First Anniversary | Second A&R Credit Agreement | Term Loan Facility | Base Rate | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 6.50% | |||||
Post Closing, First Anniversary | Second A&R Credit Agreement | Term Loan Facility | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 8.00% | |||||
Post Closing, Second Anniversary | Second A&R Credit Agreement | Term Loan Facility | Base Rate | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 7.50% | |||||
Post Closing, Second Anniversary | Second A&R Credit Agreement | Term Loan Facility | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 9.00% |
Debt (Schedule of Maturity of D
Debt (Schedule of Maturity of Debt) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Disclosure [Abstract] | ||
Less than 1 Year | $ 125.4 | |
Year 2 | 275 | |
Principal amounts repayable | 400.4 | |
Debt issuance costs | (7.7) | $ (4.7) |
Total debt | $ 392.7 | $ 441.2 |
Other Income (Expense)_Net (Det
Other Income (Expense)—Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 2,605 | $ 4,729 | $ 2,156 |
Contingent consideration remeasurement | 3,381 | 0 | 0 |
Gain on interest rate swap | 0 | 195 | 0 |
Equity in losses of unconsolidated investment | (558) | (460) | (1,321) |
Extinguishment of debt | (718) | (1,029) | 0 |
Gain on divestiture | 0 | 1,750 | 3,500 |
Net currency (losses) gains | (5,820) | 7,849 | 8,729 |
Other net gains | 1,072 | 702 | 992 |
Other income (expense) - net | $ (38) | $ 13,736 | $ 14,056 |
Taxes (Components of Consolidat
Taxes (Components of Consolidated Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred income tax assets (liabilities): | ||
Bad debt allowance | $ 1,974 | $ 2,920 |
Returns allowance | 4,935 | 3,662 |
Inventory | 4,519 | 13,409 |
Warranty liabilities | 3,317 | 2,656 |
Markdown allowance | 2,800 | 0 |
Compensation | 18,772 | 19,005 |
Accrued liabilities | 5,903 | 9,881 |
Deferred rent | 7,996 | 12,403 |
Deferred income | 5,706 | 0 |
Unrealized exchange gains (losses) | 637 | 5,553 |
State income tax and interest on tax contingencies | 1,189 | 1,410 |
Fixed assets | (8,009) | (13,442) |
Trade names and customer lists | 1,703 | |
Trade names and customer lists | (2,607) | |
Goodwill | 17,957 | 19,982 |
Other intangibles | (4,562) | (5,985) |
Undistributed earnings of certain foreign subsidiaries | (541) | (1,018) |
Foreign accruals | 8,528 | 8,501 |
Loss carryforwards | 31,582 | 27,868 |
Tax credit carryforwards | 512 | 0 |
Valuation allowance | (95,818) | (78,314) |
Capitalized R&D | 2,546 | 0 |
Interest disallowance | 9,642 | 0 |
Other | (32) | 132 |
Net deferred income tax assets | 21,256 | 26,016 |
Total deferred income tax assets | 23,695 | 27,112 |
Total deferred income tax liabilities | $ (2,439) | $ (1,096) |
Taxes (Narratives) (Details)
Taxes (Narratives) (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Income tax contingency | ||||
Loss carryforwards | $ 135,092 | |||
Deferred income tax (benefit) expense | $ 1,696 | $ (49,380) | $ (25,804) | |
Tax at statutory rate | 21.00% | 35.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, valuation allowance, recorded directly to equity | $ 4,300 | |||
Undistributed earnings of certain foreign subsidiaries | $ 465,300 | |||
Tax Cuts And Jobs Act Of 2017, existing undistributed accumulated earnings of foreign subsidiary | 408,200 | |||
Unrecognized tax benefits that would favorably impact the effective tax rate in future periods if recognized | 33,500 | $ 33,000 | $ 20,600 | |
Unrecognized tax benefits excluding interest and penalties | 17,900 | |||
Accrued income tax-related interest | 3,700 | 2,800 | ||
Penalties accrued | 1,000 | 1,300 | ||
Accrued interest (benefit) expense | 800 | 500 | 100 | |
U.S. income tax | ||||
Income tax contingency | ||||
Tax expense reduced from exercise of non-qualified stock options and stock appreciation rights and vesting of restricted stock and restricted stock units | 2,800 | 1,600 | 3,300 | |
Tax Cuts and Jobs Act of 2017, change in tax rate, deferred income tax asset valuation allowance increase | 11,700 | |||
Foreign income tax | ||||
Income tax contingency | ||||
Loss carryforwards | 31,600 | |||
Tax expense reduced from exercise of non-qualified stock options and stock appreciation rights and vesting of restricted stock and restricted stock units | $ 200 | $ 100 | $ 200 | |
Tax Cuts and Jobs Act of 2017, change in tax rate, deferred income tax asset valuation allowance increase | $ 5,800 |
Taxes (Operating Loss Carryforw
Taxes (Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Operating loss carryforwards | |
Total loss carryforwards | $ 135,092 |
Expires 2019 through 2023 | |
Operating loss carryforwards | |
Total loss carryforwards | 31,763 |
Expires 2024 through 2028 | |
Operating loss carryforwards | |
Total loss carryforwards | 27,816 |
Expires 2029 through 2033 | |
Operating loss carryforwards | |
Total loss carryforwards | 136 |
Expires 2034 through 2038 | |
Operating loss carryforwards | |
Total loss carryforwards | 58,975 |
Indefinite | |
Operating loss carryforwards | |
Total loss carryforwards | $ 16,402 |
Taxes (Income Before Income Tax
Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (102,810) | $ (517,227) | $ (72,249) |
Non-U.S | 122,980 | 63,473 | 186,557 |
Income (loss) before income taxes | $ 20,170 | $ (453,754) | $ 114,308 |
Taxes (Provision for Income Tax
Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current provision: | |||
U.S. federal | $ (14,386) | $ 30,817 | $ 2,111 |
Non-U.S | 35,854 | 40,423 | 53,880 |
State and local | (2,056) | (2,055) | (1,482) |
Total current | 19,412 | 69,185 | 54,509 |
Deferred provision (benefit): | |||
U.S. federal | 0 | (45,990) | (20,216) |
Non-U.S | 1,696 | (3,770) | (5,584) |
State and local | 0 | 380 | (4) |
Total deferred | 1,696 | (49,380) | (25,804) |
Provision for income taxes | $ 21,108 | $ 19,805 | $ 28,705 |
Taxes (Reconciliation of U.S. F
Taxes (Reconciliation of U.S. Federal Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21.00% | 35.00% | 35.00% |
Non-deductible expenses and other permanent differences | 5.10% | (0.60%) | 5.30% |
State, net of federal tax benefit | (3.80%) | 1.00% | 0.60% |
Foreign rate differential | (12.30%) | 3.70% | (30.90%) |
Withholding taxes | 16.30% | 0.00% | 0.00% |
GILTI Tax-net of foreign tax credits | 11.80% | 0.00% | 0.00% |
U.S. tax on foreign income-net of foreign tax credits | 6.40% | (1.70%) | 5.00% |
Income tax contingencies | (5.00%) | (0.10%) | 0.30% |
Valuation allowances | 65.00% | (12.50%) | 8.10% |
Repatriation tax - net impact | 5.90% | (7.40%) | 0.00% |
Deficiencies on employee stock awards | 10.10% | (0.90%) | (0.00%) |
Non-deductible goodwill impairment | 0.00% | (15.20%) | 0.00% |
Tax Reform rate reduction impact on deferred tax assets | (15.80%) | (6.20%) | 0.00% |
Return to provision true-up | 0.00% | 0.00% | 1.70% |
Other | 0.00% | 0.50% | 0.00% |
Provision for income taxes | 104.70% | (4.40%) | 25.10% |
Taxes (Reconciliation of Unreco
Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 35,355 | $ 23,399 | $ 23,022 |
Gross increases—tax positions in prior years | 7,183 | 2,104 | 918 |
Gross decreases—tax positions in prior years | (124) | (845) | (183) |
Gross increases—tax positions in current year | 576 | 13,444 | 974 |
Settlements | 0 | (81) | (181) |
Lapse in statute of limitations | (2,980) | (2,706) | (1,106) |
Change due to currency revaluation | (101) | 40 | (45) |
Balance at end of year | $ 39,909 | $ 35,355 | $ 23,399 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Royalty expense | $ 173 | $ 190 | $ 206.1 |
Rent expense | 166.6 | 171.6 | 188.7 |
Contingent rent expense | 6.8 | $ 8.2 | $ 10.5 |
Purchase obligations | $ 370.9 | ||
Minimum | |||
Other Commitments [Line Items] | |||
Percentage of royalties | 7.00% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Percentage of royalties | 15.00% |
Commitments and Contingencies_3
Commitments and Contingencies (Future Minimum Royalty Commitments Under License Agreements) (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Minimum Royalty Commitments | |
2,019 | $ 146,600 |
2,020 | 3,324 |
2,021 | 2,355 |
Thereafter | 17,995 |
Total | $ 170,274 |
Commitments and Contingencies_4
Commitments and Contingencies (Future Minimum Rental Commitments Under Non-Cancelable Leases) (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Operating Leases | |
2,019 | $ 135,025 |
2,020 | 105,668 |
2,021 | 84,230 |
2,022 | 73,928 |
2,023 | 61,710 |
Thereafter | 186,201 |
Total | 646,762 |
Capital Leases | |
2,019 | 951 |
2,020 | 947 |
2,021 | 947 |
2,022 | 696 |
2,023 | 0 |
Thereafter | 0 |
Total | 3,541 |
Less amounts representing interest | 84 |
Capital lease obligations | $ 3,457 |
Commitments and Contingencies_5
Commitments and Contingencies (Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligation | $ 13,086 | $ 12,678 |
Liabilities incurred during the period | 166 | 549 |
Liabilities settled during the period | (1,150) | (1,472) |
Accretion expense | 366 | 363 |
Currency translation | (606) | 968 |
Ending asset retirement obligations | $ 11,862 | $ 13,086 |
Stockholders' Equity (Common an
Stockholders' Equity (Common and Preferred Stock) (Details) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
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) | 49,517,817 | 48,642,703 |
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 St
Stockholders' Equity (Common Stock Repurchase Programs) (Details) - USD ($) shares in Millions, $ in Millions | 61 Months Ended | |
Dec. 30, 2017 | Jan. 01, 2019 | |
Common Stock Repurchase Programs | ||
Number of shares repurchased (in shares) | 11.8 | |
2020 and 2014 | ||
Common Stock Repurchase Programs | ||
Common stock repurchased | $ 1,200 | |
Subsequent Event | ||
Common Stock Repurchase Programs | ||
Authorizations remaining | $ 30 |
Stockholders' Equity (Noncontro
Stockholders' Equity (Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||
Purchase of noncontrolling interest shares | $ 2,200 | $ 6,451 | |
Payments for noncontrolling interest | 1,947 | $ 0 | $ 8,657 |
Variable consideration in accrued expenses-other | 1,000 | ||
Variable consideration in other long-term liabilities | $ 1,200 | ||
Fossil Accessories South Africa Pty. Ltd. | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 100.00% |
Employee Benefit Plans (Deferre
Employee Benefit Plans (Deferred Compensation and Savings Plans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Minimum years of service to be eligible for employer 401(k) matching | 90 days | ||
Minimum hours worked to be eligible for employer 401(k) matching | 250 hours | ||
Percentage of employee contributions in which Company will provide a matching contribution | 50.00% | ||
Percentage of eligible compensation, first level, matched by employer after amendment (up to) | 6.00% | ||
Employer's matching contributions under the plan | $ 2,800,000 | $ 2,900,000 | $ 2,900,000 |
Maximum additional contribution by employer (as a percent) | 15.00% | ||
Additional employer matching contributions | $ 0 | 0 | 0 |
Maximum percentage of salary that may be deferred by participating employees | 50.00% | ||
Maximum percentage of annual bonus that may be deferred by participating employees | 100.00% | ||
Deferred compensation plan, contributions by employer | $ 0 | 0 | $ 0 |
Asset related to invested balances recorded in intangibles and other assets-net | 4,400,000 | 4,800,000 | |
Liability related to participants' invested balances recorded in accrued expenses other | $ 3,900,000 | $ 5,200,000 |
Employee Benefit Plans (Stock-B
Employee Benefit Plans (Stock-Based Compensation Plans) (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 30 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 3 months 19 days |
Employee Benefit Plans (Long-Te
Employee Benefit Plans (Long-Term Incentive Plans) (Details) - USD ($) | May 23, 2018 | Dec. 29, 2018 | Mar. 31, 2016 |
Nonemployee director | Restricted stock units | |||
Long-Term Incentive Plans | |||
Value of awards granted | $ 130,000 | ||
Vesting percentage of awards granted | 100.00% | ||
Reduction of annual grant | 25.00% | ||
Restricted stock units fair market value | $ 97,500 | ||
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 (Weighte
Employee Benefit Plans (Weighted Average Assumptions for Award Grants) (Details) - Stock options and stock appreciation rights | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Stock-based compensation plans disclosures | |
Risk-free interest rate | 1.10% |
Expected term (in years) | 3 years |
Expected volatility | 38.80% |
Expected dividend yield | 0.00% |
Estimated fair value per stock option/stock appreciation right granted (in dollars per share) | $ 11.25 |
Employee Benefit Plans (Stock O
Employee Benefit Plans (Stock Option and Stock Appreciation Rights Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Shares | ||||
Outstanding at beginning of period (in shares) | 2,177 | 2,287 | 2,028 | |
Granted (in shares) | 0 | 0 | 326 | |
Exercised (in shares) | (21) | (13) | (10) | |
Forfeited or expired (in shares) | (226) | (97) | (57) | |
Outstanding at end of period (in shares) | 1,930 | 2,177 | 2,287 | 2,028 |
Exercisable (in shares) | 1,363 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 50.01 | $ 50.58 | $ 52.80 | |
Granted (in dollars per share) | 0 | 0 | 41.53 | |
Exercised (in dollars per share) | 14.46 | 13.65 | 26.93 | |
Forfeited or expired (in dollars per share) | 59.58 | 67.99 | 81.93 | |
Outstanding at end of period (in dollars per share) | 49.25 | $ 50.01 | $ 50.58 | $ 52.80 |
Exercisable (in dollars per share) | $ 54.12 | |||
Weighted-Average Remaining Contractual Term (Years) | ||||
Outstanding | 1 year 3 months 19 days | 5 years 3 months 12 days | 6 years 2 months 12 days | 8 years 8 months 12 days |
Exercisable | 1 year 6 months | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 37 | $ 0 | $ 627 | $ 2,095 |
Exercised | 37 | $ 35 | $ 186 | |
Exercisable | $ 37 |
Employee Benefit Plans (Stock_2
Employee Benefit Plans (Stock Option and Stock Appreciation Rights Outstanding and Exercisable) (Details) shares in Thousands | 12 Months Ended |
Dec. 29, 2018$ / sharesshares | |
Stock options | |
Stock-based compensation plans disclosures | |
Stock options outstanding, number of shares (in shares) | shares | 241 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 91.29 |
Stock options outstanding, weighted-average remaining contractual term | 2 years 2 months 12 days |
Stock options exercisable, number of shares | shares | 241 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 91.29 |
Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Stock appreciation rights outstanding, number of shares | shares | 1,628 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 43.49 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 1 year 2 months 12 days |
Stock appreciation rights exercisable, number of shares | shares | 1,084 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 46.47 |
Cash stock appreciation rights | |
Stock-based compensation plans disclosures | |
Stock appreciation rights outstanding, number of shares | shares | 61 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 36.73 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 2 months 12 days |
Stock appreciation rights exercisable, number of shares | shares | 38 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 36.73 |
$13.65 - $29.49 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (USD per share) | 13.65 |
High range of exercise price range (USD per share) | $ 29.49 |
Stock options outstanding, number of shares (in shares) | shares | 14 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 13.65 |
Stock options outstanding, weighted-average remaining contractual term | 2 months 12 days |
Stock options exercisable, number of shares | shares | 14 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 13.65 |
$13.65 - $29.49 | Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Share based compensation shares authorized under equity plans other than options exercise price range lower range limit | 13.65 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit | $ 29.49 |
Stock appreciation rights outstanding, number of shares | shares | 48 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 29.49 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 5 years 7 months 6 days |
Stock appreciation rights exercisable, number of shares | shares | 32 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 29.49 |
$13.65 - $29.49 | Cash stock appreciation rights | |
Stock-based compensation plans disclosures | |
Stock appreciation rights outstanding, number of shares | shares | 61 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 36.73 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 2 months 12 days |
Stock appreciation rights exercisable, number of shares | shares | 38 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 36.73 |
$36.73 - $70.12 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (USD per share) | 36.73 |
High range of exercise price range (USD per share) | $ 70.12 |
Stock options outstanding, number of shares (in shares) | shares | 40 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 38.40 |
Stock options outstanding, weighted-average remaining contractual term | 1 year 1 month 6 days |
Stock options exercisable, number of shares | shares | 40 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 38.40 |
$36.73 - $70.12 | Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Share based compensation shares authorized under equity plans other than options exercise price range lower range limit | 36.73 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit | $ 70.12 |
Stock appreciation rights outstanding, number of shares | shares | 1,419 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 38.11 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 9 months 18 days |
Stock appreciation rights exercisable, number of shares | shares | 891 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 38.30 |
$36.73 - $70.12 | Cash stock appreciation rights | |
Stock-based compensation plans disclosures | |
Share based compensation shares authorized under equity plans other than options exercise price range lower range limit | 36.73 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit | 70.12 |
$80.22 - $127.84 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (USD per share) | 80.22 |
High range of exercise price range (USD per share) | $ 127.84 |
Stock options outstanding, number of shares (in shares) | shares | 181 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 107.86 |
Stock options outstanding, weighted-average remaining contractual term | 2 years 7 months 6 days |
Stock options exercisable, number of shares | shares | 181 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 107.86 |
$80.22 - $127.84 | Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Share based compensation shares authorized under equity plans other than options exercise price range lower range limit | 80.22 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit | $ 127.84 |
Stock appreciation rights outstanding, number of shares | shares | 156 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 93.85 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 3 years 4 months 24 days |
Stock appreciation rights exercisable, number of shares | shares | 156 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 93.85 |
$128.29 - $131.46 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (USD per share) | 128.29 |
High range of exercise price range (USD per share) | $ 131.46 |
Stock options outstanding, number of shares (in shares) | shares | 6 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 130.80 |
Stock options outstanding, weighted-average remaining contractual term | 3 years 1 month 6 days |
Stock options exercisable, number of shares | shares | 6 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 130.80 |
$128.29 - $131.46 | Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Share based compensation shares authorized under equity plans other than options exercise price range lower range limit | 128.29 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit | $ 131.46 |
Stock appreciation rights outstanding, number of shares | shares | 5 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 128.29 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 6 months |
Stock appreciation rights exercisable, number of shares | shares | 5 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 128.29 |
Employee Benefit Plans (Restric
Employee Benefit Plans (Restricted Stock and Restricted Stock Unit Activity) (Details) - Restricted Stock and Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Nonvested at beginning of period (in shares) | 2,981 | 1,405 | 1,208 |
Granted (in shares) | 1,456 | 2,381 | 588 |
Vested (in shares) | (1,040) | (479) | (327) |
Forfeited (in shares) | (386) | (326) | (64) |
Nonvested at end of period (in shares) | 3,011 | 2,981 | 1,405 |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested at beginning of period (in dollars per share) | $ 20.84 | $ 40.41 | $ 53.87 |
Granted (in dollars per share) | 14.35 | 14.81 | 27.94 |
Vested (in dollars per share) | 25.21 | 44.79 | 64.51 |
Forfeited (in dollars per share) | 19.87 | 25.62 | 56.29 |
Nonvested at end of period (in dollars per share) | $ 17.86 | $ 20.84 | $ 40.41 |
Employee Benefit Plans (Other R
Employee Benefit Plans (Other Retirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Switzerland | |||
Employee Benefit Plans | |||
Pension gain (expense) | $ (0.6) | $ (1.8) | $ (2.2) |
Employee benefit plan obligations included in other long-term liabilities | 9.5 | 12.5 | |
France | |||
Employee Benefit Plans | |||
Pension gain (expense) | 0.4 | 0.7 | (0.2) |
Employee benefit plan obligations included in other long-term liabilities | 0.8 | 1.3 | |
Restricted Stock and Restricted Stock Units | |||
Employee Benefit Plans | |||
Fair value of restricted stock and restricted stock units, vested | $ 16.6 | $ 6.3 | $ 12.3 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash paid during the year for: | |||
Interest | $ 38,855 | $ 43,245 | $ 26,867 |
Income taxes, net of refunds | 28,460 | 36,571 | 14,163 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Additions to property, plant and equipment included in accounts payable | 3,868 | 2,300 | 4,762 |
Additions to property, plant and equipment acquired under capital leases | $ 0 | $ 0 | $ 432 |
Supplemental Disclosure for A_3
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 580,947 | $ 1,015,438 | $ 932,543 | |
Other comprehensive income (loss) before reclassifications | 11,432 | 5,609 | 4,366 | |
Tax (expense) benefit | (490) | 9,184 | (9,274) | |
Amounts reclassed from accumulated other comprehensive income (loss) | (4,283) | (1,290) | 14,548 | |
Tax (expense) benefit | 1,654 | (3,072) | (4,538) | |
Reclassification of certain tax effects to retained earnings | $ 2,000 | |||
Total other comprehensive income (loss) | 13,571 | 19,155 | (14,918) | |
Balance at end of period | 588,631 | 588,631 | 580,947 | 1,015,438 |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (64,499) | (101,867) | (81,707) | |
Other comprehensive income (loss) before reclassifications | (10,369) | 37,368 | (19,773) | |
Tax (expense) benefit | 0 | 0 | (283) | |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 104 | |
Tax (expense) benefit | 0 | 0 | 0 | |
Reclassification of certain tax effects to retained earnings | 0 | |||
Total other comprehensive income (loss) | (10,369) | 37,368 | (20,160) | |
Balance at end of period | (74,868) | (74,868) | (64,499) | (101,867) |
Cash Flow Hedges | Forward contracts | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (10,098) | 10,693 | 8,114 | |
Other comprehensive income (loss) before reclassifications | 18,044 | (34,873) | 22,638 | |
Tax (expense) benefit | 0 | 9,785 | (9,073) | |
Amounts reclassed from accumulated other comprehensive income (loss) | (4,283) | (1,076) | 16,143 | |
Tax (expense) benefit | 1,654 | (3,221) | (5,157) | |
Reclassification of certain tax effects to retained earnings | 1,993 | |||
Total other comprehensive income (loss) | 20,673 | (20,791) | 2,579 | |
Balance at end of period | 8,582 | 8,582 | (10,098) | 10,693 |
Cash Flow Hedges | Interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0 | (343) | (693) | |
Other comprehensive income (loss) before reclassifications | 437 | (1,149) | ||
Tax (expense) benefit | (159) | 419 | ||
Amounts reclassed from accumulated other comprehensive income (loss) | (214) | (1,699) | ||
Tax (expense) benefit | 149 | 619 | ||
Total other comprehensive income (loss) | 343 | 350 | ||
Balance at end of period | 0 | (343) | ||
Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (1,672) | (3,907) | (6,220) | |
Other comprehensive income (loss) before reclassifications | 3,757 | 2,677 | 2,650 | |
Tax (expense) benefit | (490) | (442) | (337) | |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Tax (expense) benefit | 0 | 0 | 0 | |
Reclassification of certain tax effects to retained earnings | 0 | |||
Total other comprehensive income (loss) | 3,267 | 2,235 | 2,313 | |
Balance at end of period | 1,595 | 1,595 | (1,672) | (3,907) |
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (76,269) | (95,424) | (80,506) | |
Reclassification of certain tax effects to retained earnings | 1,993 | |||
Total other comprehensive income (loss) | 13,571 | 19,155 | (14,918) | |
Balance at end of period | $ (64,691) | $ (64,691) | $ (76,269) | $ (95,424) |
Major Customer, Segment and G_3
Major Customer, Segment and Geographic Information (Information by Operating Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Summary information by operating segment | |||
Net Sales | $ 2,541,488 | $ 2,788,163 | $ 3,042,371 |
Operating Income (Loss) | 62,711 | (424,276) | 127,146 |
Depreciation and Amortization | 67,079 | 81,577 | 91,497 |
Long-term Assets | 316,629 | 367,384 | 839,607 |
Total Assets | 1,575,198 | 1,658,372 | 2,186,897 |
Operating segments | Americas | |||
Summary information by operating segment | |||
Net Sales | 1,174,507 | 1,314,348 | 1,523,534 |
Operating Income (Loss) | 185,094 | (47,836) | 239,740 |
Depreciation and Amortization | 16,542 | 21,214 | 22,612 |
Long-term Assets | 61,914 | 81,444 | 313,437 |
Total Assets | 393,273 | 463,175 | 741,082 |
Operating segments | Europe | |||
Summary information by operating segment | |||
Net Sales | 856,291 | 971,820 | 996,790 |
Operating Income (Loss) | 129,610 | 32,871 | 172,505 |
Depreciation and Amortization | 18,933 | 21,368 | 22,505 |
Long-term Assets | 99,253 | 113,621 | 237,801 |
Total Assets | 353,797 | 471,375 | 534,413 |
Operating segments | Asia | |||
Summary information by operating segment | |||
Net Sales | 505,473 | 496,392 | 514,717 |
Operating Income (Loss) | 87,515 | (12,490) | 76,749 |
Depreciation and Amortization | 8,016 | 10,798 | 12,676 |
Long-term Assets | 29,990 | 33,160 | 81,434 |
Total Assets | 173,666 | 216,660 | 237,695 |
Corporate | |||
Summary information by operating segment | |||
Net Sales | 5,217 | 5,603 | 7,330 |
Operating Income (Loss) | (339,508) | (396,821) | (361,848) |
Depreciation and Amortization | 23,588 | 28,197 | 33,704 |
Long-term Assets | 125,472 | 139,159 | 206,935 |
Total Assets | $ 654,462 | $ 507,162 | $ 673,707 |
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net sales for each class of similar products | |||
Percentage of Total | 100.00% | 100.00% | 100.00% |
Net sales | $ 2,541,488 | $ 2,788,163 | $ 3,042,371 |
Watches | |||
Net sales for each class of similar products | |||
Percentage of Total | 80.00% | 78.90% | 76.60% |
Net sales | $ 2,033,021 | $ 2,199,031 | $ 2,330,275 |
Leathers | |||
Net sales for each class of similar products | |||
Percentage of Total | 11.40% | 11.70% | 12.90% |
Net sales | $ 289,385 | $ 325,502 | $ 393,761 |
Jewelry | |||
Net sales for each class of similar products | |||
Percentage of Total | 6.60% | 7.60% | 8.30% |
Net sales | $ 167,775 | $ 211,694 | $ 251,391 |
Other | |||
Net sales for each class of similar products | |||
Percentage of Total | 2.00% | 1.80% | 2.20% |
Net sales | $ 51,307 | $ 51,936 | $ 66,944 |
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Summary information by operating segment | |||
Net sales | $ 2,541,488 | $ 2,788,163 | $ 3,042,371 |
Long-term Assets | 316,629 | 367,384 | 839,607 |
United States | |||
Summary information by operating segment | |||
Net sales | 1,017,919 | 1,157,568 | 1,355,586 |
Long-term Assets | 159,062 | 189,209 | 470,358 |
Europe | |||
Summary information by operating segment | |||
Net sales | 857,972 | 974,198 | 1,002,077 |
Long-term Assets | 111,964 | 127,344 | 260,277 |
Asia | |||
Summary information by operating segment | |||
Net sales | 507,523 | 497,816 | 515,383 |
Long-term Assets | 36,945 | 40,874 | 93,111 |
All other international | |||
Summary information by operating segment | |||
Net sales | 158,074 | 158,581 | 169,325 |
Long-term Assets | 8,658 | 9,957 | 15,861 |
Germany | |||
Summary information by operating segment | |||
Net sales | $ 359,900 | $ 406,200 | $ 467,700 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Expected total restructuring charges | $ 150,000 | ||
Restructuring charges | $ 46,630 | $ 48,171 | $ 27,778 |
Restructuring (Liability Incurr
Restructuring (Liability Incurred for Restructuring Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 4,475 | $ 5,340 | $ 0 |
Charges | 46,630 | 48,171 | 27,778 |
Cash payments | 36,826 | 38,352 | 6,693 |
Non-cash items | 6,252 | 10,684 | 15,745 |
Balance at end of period | 8,027 | 4,475 | 5,340 |
Store closures | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 2,973 | 4,546 | 0 |
Charges | 14,906 | 13,045 | 22,247 |
Cash payments | 14,141 | 6,636 | 3,430 |
Non-cash items | 920 | 7,982 | 14,271 |
Balance at end of period | 2,818 | 2,973 | 4,546 |
Professional services | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 185 | 794 | 0 |
Charges | 12,439 | 3,507 | 4,057 |
Cash payments | 10,426 | 2,618 | 3,263 |
Non-cash items | 0 | 1,498 | 0 |
Balance at end of period | 2,198 | 185 | 794 |
Severance and employee-related benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 1,317 | 0 | 0 |
Charges | 19,285 | 31,619 | 1,474 |
Cash payments | 12,259 | 29,098 | 0 |
Non-cash items | 5,332 | 1,204 | 1,474 |
Balance at end of period | $ 3,011 | $ 1,317 | $ 0 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges by Operating Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 46,630 | $ 48,171 | $ 27,778 |
Operating segments | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 17,197 | 12,964 | 19,745 |
Operating segments | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10,116 | 12,606 | 1,888 |
Operating segments | Asia | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,946 | 9,894 | 746 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 16,371 | $ 12,707 | $ 5,399 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Jan. 04, 2019 | Feb. 20, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||
Debt payments | $ 857,474 | $ 2,318,246 | $ 1,207,205 | ||
Credit Agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt payments | $ 125,000 | ||||
Intellectual Property | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sale of intangible asset | $ 40,000 |
SCHEDULE II VALUATIONS AND QU_2
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 75,200 | $ 66,901 | $ 68,735 |
Charged (Credited) to Operations | 108,485 | 148,814 | 122,018 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 116,553 | 140,515 | 123,852 |
Balance at End of Period | 67,132 | 75,200 | 66,901 |
Bad debts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 12,928 | 12,805 | 15,823 |
Charged (Credited) to Operations | 8,921 | 7,140 | 4,520 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 7,848 | 7,017 | 7,538 |
Balance at End of Period | 14,001 | 12,928 | 12,805 |
Markdowns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0 | ||
Charged (Credited) to Operations | 37,904 | ||
Charged to Other Accounts | 28,416 | ||
Actual Returns or Writeoffs | 47,301 | ||
Balance at End of Period | 19,019 | 0 | |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 78,314 | 19,415 | 10,857 |
Charged (Credited) to Operations | 13,102 | 59,676 | 8,793 |
Charged to Other Accounts | 4,402 | 0 | 0 |
Actual Returns or Writeoffs | 0 | 777 | 235 |
Balance at End of Period | $ 95,818 | $ 78,314 | $ 19,415 |
Uncategorized Items - fosl-2018
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (26,542,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (26,542,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (26,542,000) |