Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 12, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-19848 | ||
Entity Registrant Name | FOSSIL GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2018505 | ||
Entity Address, Address Line One | 901 S. Central Expressway, | ||
Entity Address, City or Town | Richardson, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75080 | ||
City Area Code | 972 | ||
Local Phone Number | 234-2525 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | FOSL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 291.6 | ||
Entity Common Stock, Shares Outstanding (in shares) | 50,574,345 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement to be furnished to shareholders in connection with its 2020 Annual Meeting of Stockholders are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000883569 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 200,218 | $ 403,373 |
Accounts receivable-net | 289,744 | 328,022 |
Inventories | 452,278 | 377,622 |
Prepaid expenses and other current assets | 117,218 | 149,552 |
Total current assets | 1,059,458 | 1,258,569 |
Property, plant and equipment-net | 151,500 | 183,203 |
Operating lease right-of-use assets | 288,166 | |
Intangible and other assets-net | 105,608 | 133,426 |
Total long-term assets | 545,274 | 316,629 |
Total assets | 1,604,732 | 1,575,198 |
Current liabilities: | ||
Accounts payable | 172,191 | 169,561 |
Short-term and current portion of long-term debt | 26,228 | 126,427 |
Accrued expenses: | ||
Current operating lease liabilities | 68,838 | |
Compensation | 51,573 | 76,467 |
Royalties | 28,427 | 30,582 |
Customer liabilities | 80,803 | 71,252 |
Transaction taxes | 25,683 | 32,438 |
Other | 76,209 | 70,614 |
Income taxes payable | 29,228 | 28,462 |
Total current liabilities | 559,180 | 605,803 |
Long-term income taxes payable | 31,284 | 28,110 |
Deferred income tax liabilities | 2,097 | 2,439 |
Long-term debt | 178,796 | 269,788 |
Long-term operating lease liabilities | 288,689 | |
Other long-term liabilities | 40,845 | 80,427 |
Total long-term liabilities | 541,711 | 380,764 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Common stock, 50,516 and 49,518 shares issued and outstanding at December 28, 2019 and December 29, 2018, respectively | 505 | 495 |
Additional paid-in capital | 283,371 | 268,113 |
Retained earnings | 299,793 | 381,626 |
Accumulated other comprehensive income (loss) | (80,615) | (64,691) |
Total Fossil Group, Inc. stockholders' equity | 503,054 | 585,543 |
Noncontrolling interest | 787 | 3,088 |
Total stockholders' equity | 503,841 | 588,631 |
Total liabilities and stockholders' equity | $ 1,604,732 | $ 1,575,198 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 50,516,477 | 49,517,817 |
Common stock, shares outstanding (in shares) | 50,516,477 | 49,517,817 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 2,217,712 | $ 2,541,488 | $ 2,788,163 |
Cost of sales | 1,118,274 | 1,201,351 | 1,429,324 |
Gross profit | 1,099,438 | 1,340,137 | 1,358,839 |
Operating expenses: | |||
Selling, general and administrative expenses | 1,081,572 | 1,224,584 | 1,327,816 |
Goodwill and trade name impairments | 16,613 | 6,212 | 407,128 |
Restructuring charges | 29,636 | 46,630 | 48,171 |
Total operating expenses | 1,127,821 | 1,277,426 | 1,783,115 |
Operating income (loss) | (28,383) | 62,711 | (424,276) |
Interest expense | 29,932 | 42,503 | 43,214 |
Other income (expense) - net | 26,984 | (38) | 13,736 |
Income (loss) before income taxes | (31,331) | 20,170 | (453,754) |
Provision for income taxes | 18,681 | 21,108 | 19,805 |
Net income (loss) | (50,012) | (938) | (473,559) |
Less: Net income attributable to noncontrolling interest | 2,353 | 2,540 | 4,613 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 3,861 | 4,225 | 4,022 |
Net income (loss) attributable to Fossil Group, Inc. | (52,365) | (3,478) | (478,172) |
Other comprehensive income (loss), net of taxes: | |||
Currency translation adjustment | (5,606) | (10,369) | 37,368 |
Cash flow hedges - net change | (5,599) | 20,673 | (20,448) |
Pension plan activity | (4,719) | 3,267 | 2,235 |
Total other comprehensive income (loss) | (15,924) | 13,571 | 19,155 |
Total comprehensive income (loss) | (65,936) | 12,633 | (454,404) |
Less: Comprehensive income attributable to noncontrolling interest | 2,353 | 2,540 | 4,613 |
Comprehensive income (loss) attributable to Fossil Group, Inc. | $ (68,289) | $ 10,093 | $ (459,017) |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (1.04) | $ (0.07) | $ (9.87) |
Diluted (in dollars per share) | $ (1.04) | $ (0.07) | $ (9.87) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 50,230 | 49,196 | 48,468 |
Diluted (in shares) | 50,230 | 49,196 | 48,468 |
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 Dec. 31, 2016 | 48,269,000 | |||||||
Balance at beginning 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 and stock appreciation rights | 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 | |||||
Purchase of noncontrolling interest shares | (6,451) | (1,472) | (1,472) | (4,979) | ||||
Distribution of noncontrolling interest earnings and other | (4,022) | (4,022) | ||||||
Balance at end of period (in shares) at Dec. 30, 2017 | 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 and stock appreciation rights | 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) | ||||
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 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units (in shares) | 1,302,000 | |||||||
Common stock issued upon exercise of stock options and stock appreciation rights | 170 | 170 | $ 13 | 157 | ||||
Acquisition of common stock | (4,197) | (4,197) | (4,197) | |||||
Retirement of common stock (in shares) | (304,000) | |||||||
Retirement of common stock | 0 | $ (3) | (4,194) | 4,197 | ||||
Stock-based compensation | 19,064 | 19,064 | ||||||
Net income (loss) | (50,012) | (52,365) | (52,365) | 2,353 | ||||
Other comprehensive income (loss) | (15,924) | (15,924) | (15,924) | |||||
Purchase of noncontrolling interest shares | (562) | 231 | 231 | (793) | ||||
Distribution of noncontrolling interest earnings and other | $ (3,861) | (3,861) | ||||||
Balance at end of period (in shares) at Dec. 28, 2019 | 50,516,477 | 50,516,000 | ||||||
Balance at end of period at Dec. 28, 2019 | $ 503,841 | $ 503,054 | $ 505 | $ 283,371 | $ 0 | $ 299,793 | $ (80,615) | $ 787 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating Activities: | |||
Net income (loss) | $ (50,012) | $ (938) | $ (473,559) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Depreciation, amortization and accretion | 54,792 | 67,584 | 80,973 |
Non-cash lease expense | 120,011 | 0 | 0 |
Stock-based compensation | 15,845 | 23,044 | 30,400 |
Decrease (increase) in allowance for returns and markdowns | 15,752 | (13,987) | (336) |
(Gain) loss on disposal of assets | (4,584) | 656 | 2,510 |
Property, plant and equipment and other long-lived asset impairment losses | 8,660 | 2,039 | 3,213 |
Goodwill and trade name impairment losses | 16,613 | 6,212 | 407,128 |
Non-cash restructuring charges | 5,196 | 6,252 | 10,684 |
Equity method investment losses | 371 | 558 | 460 |
Bad debt expense | 2,921 | 8,921 | 7,140 |
Loss on extinguishment of debt | 3,044 | 718 | 1,029 |
Debt discount and debt issuance costs amortization | 4,621 | 3,714 | 3,724 |
Deferred income taxes and other | (6,416) | 6,435 | (47,215) |
Gain on asset divestitures | (23,134) | 0 | (1,750) |
Contingent consideration remeasurement | (601) | (3,381) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 30,940 | 68,308 | 14,367 |
Inventories | (78,135) | 153,445 | 6,829 |
Prepaid expenses and other current assets | 10,994 | (15,356) | 13,509 |
Accounts payable | 4,862 | (38,365) | 34,864 |
Accrued expenses | (150,519) | (13,477) | 52,761 |
Income taxes | 4,570 | (14,243) | 32,811 |
Net cash (used in) provided by operating activities | (14,209) | 248,139 | 179,542 |
Investing Activities: | |||
Additions to property, plant and equipment | (20,894) | (17,961) | (25,520) |
(Increase) decrease in intangible and other assets | (3,252) | 1,626 | (1,639) |
Proceeds from the sale of property, plant, equipment | 1,255 | 717 | 548 |
Proceeds from asset divestitures | 41,570 | 0 | 1,750 |
Net cash provided by (used in) investing activities | 18,679 | (15,618) | (24,861) |
Financing Activities: | |||
Acquisition of common stock | (4,197) | (2,856) | (1,218) |
Distribution of noncontrolling interest earnings and other | (3,861) | (4,224) | (4,022) |
Payment for shares | (562) | 0 | 0 |
Debt borrowings | 685,332 | 811,007 | 2,128,181 |
Debt payments | (870,552) | (857,474) | (2,318,246) |
Payment for shares of Fossil Accessories South Africa Pty. Ltd. | (1,169) | (1,947) | 0 |
Debt issuance costs and other | (13,477) | (7,163) | (6,405) |
Net cash used in financing activities | (208,486) | (62,657) | (201,710) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 882 | 9,364 | (19,178) |
Net (decrease) increase in cash and cash equivalents, and restricted cash | (203,134) | 179,228 | (66,207) |
Cash and cash equivalents, and restricted cash: | |||
Beginning of year | 410,883 | 231,655 | 297,862 |
End of year | $ 207,749 | $ 410,883 | $ 231,655 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 , 2018 and 2017 are for the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. All intercompany balances and transactions are eliminated in consolidation. Use of Estimates is required in the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to product returns, bad debt, inventories, long-lived asset impairment, impairment of trade names, income taxes, warranty costs and litigation liabilities. Management bases its estimates and judgments on 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, economic or other disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. In fiscal year 2019 , 47% 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 45.7% , 46.6% and 47.0% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively, of which MICHAEL KORS ® product sales accounted for 19.2% , 22.6% and 22.6% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively and EMPORIO ARMANI ® product sales accounted for 15.2% , 12.0% and 9.7% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively. Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. Restricted Cash was comprised primarily of restricted cash balances for pledged collateral to secure bank guarantees for the purpose of obtaining retail space. The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 28, 2019 , December 29, 2018 and December 30, 2017 that are presented in the consolidated statement of cash flows (in thousands): December 28, 2019 December 29, 2018 December 30, 2017 Cash and cash equivalents $ 200,218 $ 403,373 $ 231,244 Restricted cash included in prepaid expenses and other current assets 30 31 34 Restricted cash included in intangible and other assets-net 7,501 7,479 377 Cash, cash equivalents and restricted cash $ 207,749 $ 410,883 $ 231,655 Accounts Receivable at the end of fiscal years 2019 and 2018 are stated net of doubtful accounts of approximately $13.2 million and $14.0 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 2019 and 2018 , was $51.0 million and $43.7 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 2019 and 2018 . Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company's incremental borrowing rate, adjusted for the lease term and lease country, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and are reduced by lease incentives. Some lease terms include options to extend or terminate the lease and they are included in the measurement of the lease assets and lease liabilities if the Company is reasonably certain that those options will be exercised. Variable lease payments are expensed as incurred and include certain index-based changes in rent and certain non-lease components such as maintenance and other services provided by the lessor to the extent the charges are variable. The Company evaluates contractual arrangements at inception to determine if individual agreements are a lease or contain an identifiable lease component as defined by Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"). When evaluating contracts to determine appropriate classification and recognition under ASC 842, significant judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease and whether renewal or termination options are reasonably certain to be exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease agreements with lease and non-lease components are combined as a single lease component for all classes of underlying assets. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Lease assets are evaluated for impairment whenever events or conditions indicate that the carrying value of an asset may not be recoverable based on expected undiscounted cash flows related to the asset. In fiscal year 2019 , lease impairment losses of $7.9 million and $1.7 million were recorded in selling, general, and administrative ("SG&A") and restructuring charges, respectively. 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 $0.7 million , $1.9 million and $1.3 million were recorded in SG&A and impairment losses of approximately $0.6 million , $1.7 million and $8.0 million were recorded in restructuring charges in fiscal years 2019 , 2018 and 2017 , respectively. Additionally, in fiscal years 2019, 2018 and 2017, the Company recorded non-impairment losses related to the disposal of property, plant and equipment of $0.5 million , $0.6 million and $0.4 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 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 . 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 trade name may not be recoverable, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of an intangible asset with its fair value. When the carrying amount of an intangible asset exceeds its fair value, an impairment charge is recorded. The fair values of the Company's SKAGEN ® and MICHELE ® trade names were estimated using the relief from royalty method. During fiscal 2019 , the SKAGEN trade name with a carrying amount of $21.1 million was written down to its implied fair value of $4.5 million , resulting in a pre-tax impairment charge of $16.6 million . Concurrent with the impairment testing, the Company determined the trade name would no longer have an indefinite useful life. In fiscal year 2018 , an impairment charge of $6.2 million was recorded related to the SKAGEN trade name. For fiscal year 2019 , a discount rate of 10.2% and a royalty rate of 5% were used to estimate the MICHELE trade name fair value. No impairment charges were recorded to the MICHELE trade name during fiscal years 2019 or 2018 . 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. 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. 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) of approximately $3.9 million , $(5.8) million and $7.8 million for fiscal years 2019 , 2018 and 2017 , 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). 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 from customers. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience and any specific issues identified. Product returns are accounted for as reductions to revenue and cost of sales and increases to customer liabilities and other current assets to the extent the returned product is resalable. 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 $77.5 million and $67.1 million in accrued expenses as of the end of fiscal years 2019 and 2018 , 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 $171.0 million , $181.0 million and $207.1 million for fiscal years 2019 , 2018 and 2017 , respectively. Warranty Costs are included in SG&A. The Company records an estimate for future warranty costs based on historical repair costs and adjusts the liability as required. Warranty costs have historically been within the Company's expectations and the provisions established. If such costs were to substantially exceed estimates, this could have an adverse effect on the Company's operating results. See Note 4—Warranty Liabilities, for more information regarding warranties. Research and Development Costs are incurred primarily through the Company's in-house engineering team 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 $32.4 million , $38.2 million and $42.8 million in fiscal years 2019 , 2018 and 2017 , 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 2019 2018 2017 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (52,365 ) $ (3,478 ) $ (478,172 ) Denominator: Basic EPS computation: Basic weighted average common shares outstanding 50,230 49,196 48,468 Basic EPS $ (1.04 ) $ (0.07 ) $ (9.87 ) Diluted EPS computation: Basic weighted average common shares outstanding 50,230 49,196 48,468 Diluted weighted average common shares outstanding 50,230 49,196 48,468 Diluted EPS $ (1.04 ) $ (0.07 ) $ (9.87 ) Approximately 3.4 million , 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 2019 , 2018 and 2017 , respectively, because they were antidilutive, including approximately 0.6 million , 1.2 million and 1.2 million weighted performance-based shares in fiscal years 2019, 2018 and 2017, respectively. Income Taxes are provided for under the asset and liability method for temporary differences in assets and liabilities recognized for income tax and financial reporting purposes. Deferred tax assets are periodically assessed for the likelihood of whether they are more likely than not to be realized. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (i) the more likely than not recognition threshold is satisfied; (ii) the position is ultimately settled through negotiation or litigation; or (iii) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the "Tax Act") requiring the inclusion of certain foreign earnings in U.S. taxable income first applied in fiscal year 2018. The GILTI tax was accounted for as incurred under the period cost method. The Company's valuation allowance analysis is affected by various aspects of the Tax Act, including the new limitation on the deductibility of interest expense and the impact of GILTI. Those adjustments may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Income Taxes (Topic 740). It also clarifies and amends existing guidance to improve consistent application. The guidance is effective for fiscal years beginning after December 15, 2020, 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 2018-15, 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 standard will not 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 modifies the measurement of expected credit losses of certain financial instruments, including trade receivables. The estimate of expected credit losses will require the consideration of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The standard will not have a material impact on the Company's consolidated results of operations or financial position. Recently Adopted Accounting Standards The Company adopted ASU 2016-02 on December 30, 2018, the first day of fiscal 2019, using the modified retrospective approach, and accordingly, information for periods prior to December 30, 2018 are presented under ASC 840, Leases ("ASC 840"), the predecessor to ASC 842. The Company has elected to use the transition practical expedient. The transition practical expedient allows companies to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. The Company used 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 did not elect to adopt the hindsight practical expedient and therefore maintained the lease terms previously determined under ASC 840. Adoption of ASU 2016-02 resulted in recording right-of-use ("ROU") lease assets of $370.3 million which were written down to $327.3 million as a result of $43.0 million of previous store impairment, excluding taxes, and lease liabilities of $390.6 million as of December 30, 2018. The Company recognized a cumulative-effect adjustment to the opening balance of retained earnings of approximately $29.5 million as of December 30, 2018 as a result of previous store impairment and a previous sale leaseback transaction, net of tax effects. Under ASC 840, the gain on the sale leaseback transaction was deferred over the lease term; however under ASC 842, the gain is recognized at the time of sale. Accordingly, a retained earnings adjustment to recognize the remaining gain was recorded upon the adoption of ASC 842. The standard did not have a material impact on the Company's consolidated results of operations or cash flows. See "Note 13—Leases" for additional lease disclosures. In August 2017, the FASB issued 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 Company adopted ASU 2017-12 on the first day of fiscal year 2019. Adoption resulted in $9.9 million |
Revenue
Revenue | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The Company’s revenue consists of sales of finished products to customers through wholesale and retail channels. Revenue from the sale of products, including those that are subject to inventory consignment agreements, is recognized when control of the product is transferred to the customer and in an amount that reflects the consideration the Company expects to be entitled in exchange for the product. The Company generally considers control to transfer either when products ship or when products are delivered depending on the shipping terms in the agreement or purchase order. The Company considers control to have transferred upon shipment or delivery because the Company has a present right to payment, the customer has legal title to the product, the Company has transferred physical possession of the product, and the customer has the significant risks and rewards of the product. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. Markdowns. The Company provides markdowns to certain customers in order to facilitate sales of select styles. Markdowns are estimated at the time of sale using historical data and are recorded as a reduction to revenue. The Company's policy is to record its markdown allowance as a reduction of accounts receivable. Returns. The Company accepts limited returns from customers. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience 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 which are not considered separate performance obligations are recorded as sales discounts. All other cooperative advertising expenses are recorded in SG&A. Multiple Performance Obligations. The Company enters into contracts with customers for its wearable technology that 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 . Licensing Income. In fiscal year 2018, the Company entered into a seven year agreement to provide hybrid smartwatch technology and related support to its customer, Citizen Watch Co, Ltd. The Company determined the material rights in the contract, which include the infrastructure setup to design and manufacture hybrid watches, are one performance obligation. The contract contains fixed consideration related to upfront setup and access to the technology. The contract also contains variable consideration related to maintenance and royalties. The total variable consideration was estimated using a probability-weighted range of possible consideration amounts. The transfer of services takes place at varying times over the duration of the contract. The Company uses the input method, using projected labor hours as its measure of progress, to recognize revenue associated with this contract. The Company has determined the input method best reflects the Company's progress towards the completion of its performance obligation. When this input method is applied, the allocation of revenue is mostly recorded early in the agreement, when the specialization and setup work is being performed, as opposed to later on in the agreement when only the regular ongoing services are provided. Disaggregation of Revenue. The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2019 Americas Europe Asia Corporate Total Product Type Watches $ 769,581 $ 557,460 $ 475,361 $ 79 $ 1,802,481 Leathers 145,632 47,308 45,679 — 238,619 Jewelry 24,826 92,935 5,416 — 123,177 Other 9,926 17,791 8,700 17,018 53,435 Consolidated $ 949,965 $ 715,494 $ 535,156 $ 17,097 $ 2,217,712 Timing of Revenue Recognition Revenue recognized at a point in time $ 947,353 $ 714,056 $ 534,403 $ 6,145 $ 2,201,957 Revenue recognized over time 2,612 1,438 753 10,952 15,755 Consolidated $ 949,965 $ 715,494 $ 535,156 $ 17,097 $ 2,217,712 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 Contract Balances. As of December 28, 2019 , the Company had no material contract assets on the consolidated balance sheets and no deferred contract costs. The Company had contract liabilities of (i) $13.4 million and $21.8 million as of December 28, 2019 and December 29, 2018 , respectively, related to remaining performance obligations on licensing income, (ii) $5.3 million and $6.2 million as of December 28, 2019 and December 29, 2018 , respectively, primarily related to remaining performance obligations on wearable technology products and (iii) $3.3 million and $3.8 million as of December 28, 2019 and December 29, 2018 , respectively, related to gift cards issued. Shipping and Handling Fees. The Company accounts for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. |
Inventories
Inventories | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): At Fiscal Year End 2019 2018 Components and parts $ 35,626 $ 28,183 Work-in-process 11,034 9,458 Finished goods 405,618 339,981 Inventories $ 452,278 $ 377,622 |
Warranty Liabilities
Warranty Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 2017 Beginning balance $ 22,807 $ 19,405 $ 15,421 Settlements in cash or kind (18,073 ) (15,197 ) (15,177 ) Warranties issued and adjustments to preexisting warranties (1) 18,361 18,599 19,161 Ending balance $ 23,095 $ 22,807 $ 19,405 ____________________________________________ (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. 28, 2019 | |
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 2019 2018 Prepaid royalties $ 22,258 $ 43,074 Prepaid taxes and tax receivables 34,712 37,587 Other receivables 10,581 7,092 Forward contracts 3,327 9,232 Inventory returns 22,402 23,509 Prepaid rent 429 7,700 Property held for sale — 1,135 Short term deposits 1,530 876 Other 21,979 19,347 Prepaid expenses and other current assets $ 117,218 $ 149,552 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 Land $ 7,579 $ 7,736 Buildings 37,012 37,766 Machinery and equipment 39,756 39,583 Furniture and fixtures 96,940 102,141 Computer equipment and software 235,757 243,490 Leasehold improvements 192,114 198,703 Construction in progress 7,255 7,103 616,413 636,522 Less accumulated depreciation and amortization 464,913 453,319 Property, plant and equipment-net $ 151,500 $ 183,203 |
Intangible and Other Assets
Intangible and Other Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets | Intangible and Other Assets Intangible and other assets-net consisted of the following (in thousands): 2019 2018 At Fiscal Year End Useful Lives Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 3,612 $ 2,993 $ 4,293 $ 3,859 Customer lists 5 - 10 yrs. 52,517 44,013 52,635 38,028 Patents 3 - 20 yrs. 2,308 1,937 2,310 2,154 Developed technology 7 yrs. 2,193 548 36,100 15,471 Trade name 6 yrs. 4,502 188 — — Other 7 - 20 yrs. 383 272 261 247 Total intangibles-subject to amortization 65,515 49,951 95,599 59,759 Intangibles-not subject to amortization: Trade names 11,315 32,427 Other assets: Other deposits 18,558 19,641 Deferred compensation plan assets 5,243 4,442 Deferred tax asset-net 38,275 23,695 Restricted cash 7,501 7,479 Tax receivable 6,507 7,060 Investments 500 500 Other 2,145 2,342 Total other assets 78,729 65,159 Total intangible and other assets $ 155,559 $ 49,951 $ 193,185 $ 59,759 Total intangible and other assets-net $ 105,608 $ 133,426 During fiscal year 2019, the Company impaired the SKAGEN trade name down to the implied fair value of $4.5 million , as a result of a continued decline in performance throughout fiscal year 2019 and a challenging market dynamic that is not expected to improve in the near-term. Concurrent with the impairment testing, the Company determined the trade name would no longer have an indefinite useful life. As a result of the change in estimate, the useful life of the trade name changed from indefinite to definite, and the trade name will be fully amortized on a straight-line basis over the estimated useful life of 6 years . Amortization expense for intangible assets was approximately $7.1 million , $11.9 million and $13.5 million for fiscal years 2019 , 2018 and 2017 , respectively. Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands): Fiscal Year Amortization Expense 2020 $ 6,833 2021 3,003 2022 2,127 2023 1,085 2024 1,068 Thereafter 1,448 On January 16, 2019, the Company sold intellectual property related to a smartwatch technology under development by the Company to Google, Inc. for a cash purchase price of $40.0 million . As a result of the sale, the Company reduced intangible assets by $18.4 million and recorded a gain of $21.6 million in other income (expense) - net in the Company's consolidated statements of income (loss) and comprehensive income (loss). |
Derivatives and Risk Management
Derivatives and Risk Management | 12 Months Ended |
Dec. 28, 2019 | |
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, the Company enters 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 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. 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. There were no gains or losses reclassified into earnings for fiscal years 2019 or 2018 and a gain of $0.2 million for fiscal year 2017 was recognized as a result of the discontinuance of cash flow hedges. As of December 28, 2019 , 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 106.0 U.S. dollar 122.7 Canadian dollar 41.4 U.S. dollar 31.3 British pound 13.6 U.S. dollar 17.7 Japanese yen 1,320.5 U.S. dollar 12.4 Mexican peso 167.8 U.S. dollar 8.4 Australian dollar 6.7 U.S. dollar 4.6 U.S. dollar 18.7 Japanese Yen 1,985.0 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 28, 2019 , the Company had non-designated forward contracts of approximately $1.5 million on 22.6 million rand, and as of December 29, 2018 , the Company had non-designated forward contracts of approximately $1.2 million on 17.5 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 2019 , 2018 and 2017 are set forth below (in thousands): Fiscal Year 2019 2018 2017 Cash flow hedges: Forward contracts $ 6,060 $ 18,044 $ (25,088 ) Interest rate swaps — — 278 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 6,060 $ 18,044 $ (24,810 ) 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 2019 , 2018 and 2017 (in thousands): Derivative Instruments Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Effect of Derivative Instruments Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Forward contracts designated as cash flow hedging instruments Cost of sales (1) Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 9,939 $ — $ — Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 1,720 $ (2,629 ) $ (4,297 ) Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ (88 ) $ 244 $ (652 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ — $ (260 ) 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 _______________________________________________ (1) The adoption of ASU 2017-12 resulted in net gains being recorded in cost of sales for fiscal year 2019 which would have been recognized in other income (expense) - net under previous accounting guidance. 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 28, 2019 December 29, 2018 December 28, 2019 December 29, 2018 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 $ 3,327 Prepaid expenses and other current assets $ 9,217 Accrued expenses-other $ 1,657 Accrued expenses-other $ 660 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets 15 Accrued expenses-other 63 Accrued expenses-other — Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 21 Intangible and other assets-net 453 Other long-term liabilities 104 Other long-term liabilities 70 Total $ 3,348 $ 9,685 $ 1,824 $ 730 The following table summarizes the effects of the Company's derivative instruments on earnings (in thousands): Effect of Derivative Instruments Fiscal Year 2019 Fiscal Year 2018 Cost of Sales Other Income (Expense)-net Cost of Sales Other Income (Expense)-net Total amounts of income and expense line items presented in the consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded $ 1,118,274 $ 26,984 $ 1,201,351 $ (38 ) Gain (loss) on cash flow hedging relationships: Forward contracts designated as cash flow hedging instruments: Total gain (loss) reclassified from other comprehensive income (loss) 9,939 1,720 — (2,629 ) At the end of fiscal year 2019 , the Company had forward contracts designated as cash flow hedges with maturities extending through March 2021. As of December 28, 2019 , an estimated net gain of $1.5 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. 28, 2019 | |
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 28, 2019 (in thousands): Fair Value at December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 3,348 $ — $ 3,348 Deferred compensation plan assets: Investment in publicly traded mutual funds 5,243 — — 5,243 Total $ 5,243 $ 3,348 $ — $ 8,591 Liabilities: Contingent consideration $ — $ — $ 1,141 $ 1,141 Forward contracts — 1,824 — 1,824 Total $ — $ 1,824 $ 1,141 $ 2,965 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 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. As of December 28, 2019 and December 29, 2018 , the fair value of the Company's debt approximated its carrying amount. The fair value of debt was obtained using observable market inputs. Operating lease right-of-use assets with a carrying amount of $18.3 million and property, plant and equipment—net with a carrying amount of $1.8 million related to retail store leasehold improvements, fixturing and shop-in-shops were written down to a fair value of $8.7 million and $0.5 million , respectively, resulting in total impairment charges of $10.9 million for fiscal year 2019 . The fair values of operating lease right-of-use assets and fixed assets related to retail stores were determined using Level 3 inputs, including forecasted cash flows and discount rates. Of the $10.9 million impairment expense, $5.0 million , $3.4 million and $0.2 million were recorded in SG&A in the Americas, Europe and Asia segments, respectively and $1.9 million and $0.4 million were recorded in restructuring charges in the Americas and Europe segments, respectively. In fiscal year 2018 , 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 value of 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 trade name impairment. In fiscal year 2019 , the SKAGEN trade name with a carrying amount of $21.1 million was written down to its implied fair value of $4.5 million , resulting in a pre-tax impairment charge of $16.6 million . 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 . 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. A discount rate of 14% was used to calculate the present value of the contingent consideration. The present value of the contingent consideration liability was valued at $1.1 million as of December 28, 2019 |
Debt
Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consisted of the following, excluding finance lease obligations, (in millions): December 28, 2019 December 29, 2018 U.S. revolving line of credit (1) $ 20.1 $ — U.S. term loan (2) 182.2 392.3 Other international 0.2 0.4 Total debt $ 202.5 $ 392.7 Less current portion 25.2 125.4 Long-term debt $ 177.3 $ 267.3 ___________________________________________ (1) Net of debt issuance costs of $7.9 million at December 28, 2019 (2) Net of debt issuance costs and original issue discount of $6.6 million and $11.2 million , respectively at December 28, 2019 . Net of debt issuance costs of $7.7 million at December 29, 2018 . U.S.-Based. On September 26, 2019, the Company and Fossil Partners L.P., as the U.S. borrowers (the “U.S. Borrowers”), and Fossil Group Europe GmbH (the “Swiss Borrower”), Fossil Asia Pacific Limited (the “Hong Kong Borrower”), Fossil (Europe) GmbH (the “German Borrower”), Fossil (UK) Limited (the “UK Borrower”) and Fossil Canada Inc. (the “Canadian Borrower”), as the non-U.S. borrowers, certain other subsidiaries of the Company from time to time party thereto designated as borrowers (such subsidiaries, together with the U.S. Borrowers, the Swiss Borrower, the Hong Kong Borrower, the German Borrower, the UK Borrower and the Canadian Borrower, the “ABL Borrowers”), and certain subsidiaries of the Company from time to time party thereto as guarantors, entered into an asset-based revolving credit agreement (the “Revolving Facility”) with JPMorgan Chase Bank, N.A. as administrative agent (the “ABL Agent”), J.P. Morgan AG, as French collateral agent, JPMorgan Chase Bank, N.A., Citizens Bank, N.A. and Wells Fargo Bank, National Association as joint bookrunners and joint lead arrangers, and Citizens Bank, N.A. and Wells Fargo Bank, National Association, as co-syndication agents and each of the lenders from time to time party thereto (the “ABL Lenders”). In addition, on September 26, 2019, the Company, as borrower, entered into a term credit agreement with JPMorgan Chase Bank, N.A. as administrative agent (the “Term Agent”), JPMorgan Chase Bank, N.A., Citizens Bank, National Association and Wells Fargo Securities, LLC, as joint bookrunners and joint lead arrangers and the lenders party thereto (the “Term Loan Lenders”), which was amended on February 20, 2020, by that certain Amendment No. 1 to Term Credit Agreement (as amended, the “Term Loan Facility”). Contemporaneously with entering into the Revolving Facility and the Term Loan Facility, on September 26, 2019, the proceeds of the Revolving Facility and the Term Loan Facility were used to pay off in full the $275.8 million in aggregate outstanding principal amount of the loans, interest, fees, expenses and other obligations under the Second Amended and Restated Credit Agreement, dated as of January 29, 2018 (the “Prior Credit Agreement”). The Company recorded a loss of $3.0 million in other income (expense) - net during fiscal 2019 for debt issuance costs associated with the Prior Credit Agreement. The Revolving Facility provides that the ABL Lenders may extend revolving loans in an aggregate principal amount not to exceed $275.0 million at any time outstanding (the “Revolving Credit Commitment”), of which up to $160.0 million is available under a U.S. facility, an aggregate of $70.0 million is available under a European facility, $30.0 million is available under a Hong Kong facility, $10.0 million will be available under a French facility, and $5.0 million is available under a Canadian facility, in each case, subject to the borrowing base availability limitations described below. The Revolving Facility also includes an up to $45.0 million subfacility for the issuance of letters of credit (the “Letters of Credit”). The Revolving Facility expires and is due and payable on September 26, 2024, provided that, if on the date that is the 121st day prior to the final maturity date of any class or tranche of term loans under the Term Loan Facility, any such term loans are outstanding on such date, then the maturity date of the Revolving Facility shall be such date. Unless the maturity of the term loans is extended beyond the current maturity date of September 26, 2024, the Revolving Facility will expire and be due and payable on May 28, 2024. The French facility includes a $1.0 million subfacility for swingline loans, and the European facility includes a $7.0 million subfacility for swingline loans. The Revolving Facility is subject to a line cap (the “Line Cap”) equal to the lesser of the total Revolving Credit Commitment and the aggregate borrowing bases under the U.S. facility, the European facility, the Hong Kong facility, the French facility and the Canadian facility. The loans under the Revolving Facility were used to repay the Prior Credit Agreement, as described above, pay transaction expenses and for general corporate purposes. Loans under the Revolving Facility may be made in U.S. dollars, Canadian dollars, euros, Hong Kong dollars or pounds sterling. The Revolving Facility is an asset-based facility, in which borrowing availability is subject to a borrowing base equal to: (a) with respect to the Company, the sum of (i) the lesser of (x) 90% of the appraised net orderly liquidation value of eligible U.S. finished goods inventory and (y) 65% of the lower of cost or market value of eligible U.S. finished goods inventory, plus (ii) 85% of the eligible U.S. accounts receivable, plus (iii) 90% of eligible U.S. credit card accounts receivable, minus (iv) the aggregate amount of reserves, if any, established by the ABL Agent; (b) with respect to each non-U.S. borrower (except for the French Borrower), the sum of (i) the lesser of (x) 90% of the appraised net orderly liquidation value of eligible foreign finished goods inventory of such non-U.S. borrower and (y) 65% of the lower of cost or market value of eligible foreign finished goods inventory of such non-U.S. borrower, plus (ii) 85% of the eligible foreign accounts receivable of such non-U.S. borrower, minus (iii) the aggregate amount of reserves, if any, established by the ABL Agent; and (c) with respect to the French Borrower, (i) 85% of eligible French accounts receivable minus (ii) the aggregate amount of reserves, if any, established by the ABL Agent. Not more than 60% of the aggregate borrowing base under the Revolving Facility may consist of the non-U.S. borrowing bases. Eurodollar loans under the U.S. facility will bear interest at the adjusted LIBO rate plus the applicable rate, and Eurodollar loans under the Canadian facility, European facility, French facility and Hong Kong facility will bear interest at the LIBO rate plus the applicable rate. Base rate loans under the U.S. facility will bear interest at the alternate base rate plus the applicable rate. Under the Canadian facility, Canadian prime rate loans will bear interest at the Canadian prime rate plus the applicable rate, and Canadian dollar loans will bear interest at the CDOR rate plus the applicable rate. Under the Hong Kong facility, Hong Kong dollar loans will bear interest at the HIBOR rate plus the applicable rate. Each swingline loan shall bear interest at the overnight LIBO rate plus the applicable rate for overnight LIBO rate loans. The applicable rate varies from 1.25% to 1.75% for adjusted LIBO, CDOR and HIBOR rate loans and from 0.25% to 0.75% for alternate base rate and Canadian prime rate loans depending on the Company’s average daily excess availability under the Revolving Facility for the most recently ended fiscal quarter, which is an amount equal to (x)(1) the lesser of the total revolving commitments then in effect and (2) the aggregate borrowing base, minus (y) the total credit exposure of all ABL Lenders at such time. The Revolving Facility also includes a commitment fee, payable quarterly in arrears, of 0.250% or 0.375% determined by reference to the average daily unused portion of the overall commitment under the Revolving Facility. The ABL Borrowers will pay the ABL Agent, on the account of the issuing ABL Lenders, an issuance fee of 0.125% for any issued Letters of Credit. The ABL Borrowers are permitted to voluntarily prepay the revolving loans, in whole or in part, without premium or penalty. The ABL Borrowers may reduce the commitments at any time, in whole or in part, without premium or penalty, in a minimum aggregate principal amount of not less than $5.0 million or increments of $1.0 million in excess thereof. If the total amount of outstanding revolving loans and Letters of Credit exceeds the total commitment under the Revolving Facility, the ABL Borrowers must prepay the revolving loans in an amount equal to such excess. During any periods (each, a “Covenant Period”) while availability under the Revolving Facility is less than the greater of (x) 15% of the Line Cap and (y) $30.0 million , the Company will be subject to a financial covenant which requires the Company to not permit the fixed charge coverage ratio to be less than 1.00 to 1.00 on the first day of such Covenant Period or the last day of each fiscal quarter during such Covenant Period. The ABL Borrowers have the right to request an increase to the commitments under the Revolving Facility or any subfacility in an aggregate principal amount not to exceed $75.0 million in increments no less than $10.0 million , subject to certain terms and conditions as defined in the Revolving Facility, including that the Term Loan Facility has been amended, restated or otherwise modified to permit any additional commitments. The Revolving Facility is secured by guarantees by the Company and certain of its domestic subsidiaries. Additionally, the Company and such subsidiaries have granted liens on all or substantially all of their assets in order to secure the obligations under the Revolving Facility. In addition, the Swiss Borrower, the Hong Kong Borrower, the German Borrower and the Canadian Borrower, and the other non-U.S. borrowers from time to time party to the Revolving Facility are required to enter into security instruments with respect to all or substantially all of their assets that can be pledged under applicable local law, and certain of their respective subsidiaries may guarantee the respective non-U.S. obligations under the Revolving Facility. The Revolving Facility contains customary affirmative and negative covenants and events of default, such as compliance with annual audited and quarterly unaudited financial statements disclosures. Upon an event of default, the ABL Agent will have the right to declare the revolving loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced, subject to cure periods and grace periods set forth in the Revolving Facility. The Term Loan Facility provides for term loans to the Company in the aggregate principal amount of $200 million . Proceeds from the Term Loan Facility were reduced by a $12.0 million original issue discount, which is presented as a reduction of the Term Loan Facility on the Company's consolidated balance sheet and is being amortized to interest expense over the life of the term loan. The term loans under the Term Loan Facility bore interest at (a) the adjusted LIBO rate plus 6.50% for Eurodollar loans or (b) the alternate base rate plus 5.50% for alternate base rate loans as of December 28, 2019. In connection with the amendment entered into on February 20, 2020, the term loans under the Term Loan Facility bear interest at (a) the adjusted LIBO rate plus 8.00% for Eurodollar loans or (b) the alternate base rate plus 7.00% for alternate base rate loans. The Term Loan Facility amortizes in quarterly installments in an aggregate amount equal (x) to 2.50% of its original principal amount until September 30, 2021 and, thereafter, (y) to 3.75% of its original principal amount until June 30, 2024. The Term Loan Facility expires and is due and payable on September 26, 2024, subject to possible extensions. The Company is permitted to voluntarily prepay the term loans, in whole or in part, without premium or penalty; provided, that if the Company voluntarily prepays the term loans prior to February 20, 2022 or if the Company incurs certain indebtedness which results in a mandatory prepayment under the Term Loan Facility prior to February 20, 2022, the Company is required to pay a prepayment fee of 2.00% with respect to the principal amount prepaid prior to February 20, 2022 and 1.00% with respect to the principal amount prepaid between February 21, 2021 and February 20, 2022. The Term Loan Facility will be required to be prepaid with the net cash proceeds of certain asset sales, insurance and condemnation events, debt and equity issuances, cash dividends received from certain of the Company’s subsidiaries and an annual excess cash flow sweep. In connection with the amendment entered into on February 20, 2020, the maximum total leverage ratio was revised to increase the maximum total leverage ratio permitted under the covenant from 1.50 to 1.00 as of December 28, 2019 to (i) 2.75 to 1.00 as of the last day of each fiscal quarter ending April 4, 2020, July 4, 2020, October 3, 2020 and January 2, 2021, (ii) 2.25 to 1.00 as of the last day of each fiscal quarter ending April 3, 2021, July 3, 2021 and October 2, 2021, and (iii) 1.50 to 1.00 as of the last day of each subsequent fiscal quarter. The Term Loan Facility also limits the Revolving Credit Commitment under the Revolving Facility to the lesser of the borrowing base or $200.0 million . A payment default under the Revolving Facility triggers a cross default under the Term Loan Facility. The Term Loan Facility is secured by guarantees by the Company and certain of its Company’s domestic subsidiaries. Additionally, the Company and such subsidiaries have granted liens on all or substantially all of their assets in order to secure the obligations under the Term Loan Facility. The Term Loan Facility contains customary affirmative and negative covenants and events of default such as compliance with annual audited and quarterly unaudited financial statements disclosures. Upon an event of default, the Term Agent will have the right to declare the term loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced, subject to cure periods and grace periods set forth in the Term Loan Facility. The obligations under the Revolving Facility and the Term Loan Facility are governed by a customary intercreditor agreement (the “Intercreditor Agreement”). The Intercreditor Agreement specifies that (i) the Term Loan Facility is secured by (a) a perfected first priority security interest in U.S. fixed assets and (b) a perfected second priority security interest in the U.S. liquid assets and accounts receivable, and (ii) the Revolving Facility is secured by (a) a perfected first priority security interest in the U.S. liquid assets and accounts receivable and (b) a perfected second priority security interest in U.S. fixed assets. During fiscal year 2019 , the Company had net payments of $200.0 million under the Term Loan Facility and the term loan under the Prior Credit Agreement. The Company had net borrowings of $28.0 million under the Revolving Facility and revolving credit loans under the Prior Credit Agreement during fiscal year 2019 . Amounts available under the Revolving Facility were reduced by any amounts outstanding under standby Letters of Credit. As of December 28, 2019 , the Company had available borrowing capacity of approximately $120.1 million under the Revolving Facility. The Company incurred approximately $22.6 million of interest expense under the Term Loan Facility and the term loan under the Prior Credit Agreement during fiscal year 2019 . The Company incurred approximately $0.9 million of interest expense under the Revolving Facility and revolving credit loans under the Prior Credit Agreement during fiscal year 2019 . The Company incurred approximately $4.6 million of interest expense related to the amortization of debt issuance costs and the original issue discount during fiscal year 2019 . At December 28, 2019 the Company was in compliance with all debt covenants related to the Company's credit facilities. Foreign-Based. Fossil South Africa entered into a 25 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, 10.00% as of year end 2019 . 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 $0.2 million as of December 28, 2019 . The Company's debt as of December 28, 2019 , excluding finance lease obligations, matures as follows (in millions): Less than 1 Year $ 25.2 Year 2 22.5 Year 3 30.0 Year 4 22.5 Year 5 128.0 Principal amounts repayable 228.2 Debt issuance costs (14.5 ) Original issue discount (11.2 ) Total debt outstanding $ 202.5 |
Other Income (Expense)_Net
Other Income (Expense)—Net | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 2017 Interest income $ 2,075 $ 2,605 $ 4,729 Contingent consideration remeasurement 601 3,381 — Gain on interest rate swap — — 195 Equity in losses of unconsolidated investment (371 ) (558 ) (460 ) Extinguishment of debt (3,044 ) (718 ) (1,029 ) Gain on asset divestitures 23,134 — 1,750 Net currency (losses) gains 3,932 (5,820 ) 7,849 Other net gains 657 1,072 702 Other income (expense) - net $ 26,984 $ (38 ) $ 13,736 |
Taxes
Taxes | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 Deferred income tax assets: Bad debt allowance $ 2,048 $ 1,974 Returns allowance 3,990 4,935 Inventory 6,856 4,519 Warranty liabilities 3,465 3,317 Markdown allowance 3,480 2,800 Compensation 11,998 18,772 Accrued liabilities 6,672 5,903 Deferred rent — 7,996 Deferred income 3,582 5,706 Unrealized exchange gains (losses) 3,816 637 State income tax and interest on tax contingencies 887 1,189 Fixed assets 220 (8,009 ) Trade names and customer lists 4,345 1,703 Goodwill 14,947 17,957 Foreign accruals 10,446 8,528 Loss carryforwards 32,158 31,582 Tax credit carryforwards 4,281 512 Capitalized R&D 8,362 2,546 Interest disallowance 16,683 9,642 Lease liabilities 82,511 — Deferred income tax assets total $ 220,747 $ 122,209 Deferred income tax liabilities: Tenant allowance $ (801 ) $ — Other intangibles (235 ) (4,562 ) Undistributed earnings of certain foreign subsidiaries (329 ) (541 ) Right-of-use assets (65,070 ) — Other (45 ) (32 ) Deferred income tax liabilities total $ (66,480 ) $ (5,135 ) Valuation allowance (118,089 ) (95,818 ) Net deferred income tax assets $ 36,178 $ 21,256 Net deferred income tax assets $ 38,275 $ 23,695 Net deferred income tax liabilities (2,097 ) (2,439 ) Net deferred income tax assets $ 36,178 $ 21,256 Operating Loss Carryforwards. The balance sheet includes $27.8 million of deferred tax assets for net operating losses of foreign subsidiaries. The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2020 through 2024 $ 18,923 Expires 2025 through 2029 14,931 Expires 2030 through 2034 — Expires 2035 through 2039 74,315 Indefinite 10,428 Total loss carryforwards $ 118,597 The balance sheet includes $4.3 million of deferred tax assets for state income tax net operating losses. The state apportioned amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): Expires 2020 through 2024 $ 632 Expires 2025 through 2029 9,199 Expires 2030 through 2034 3,096 Expires 2035 through 2039 46,749 Indefinite 26,270 Total loss carryforwards $ 85,946 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 2019 2018 2017 U.S $ (142,141 ) $ (102,810 ) $ (517,227 ) Non-U.S 110,810 122,980 63,473 Total $ (31,331 ) $ 20,170 $ (453,754 ) The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands): Fiscal Year 2019 2018 2017 Current provision: U.S. federal $ 2,338 $ (14,386 ) $ 30,817 Non-U.S 28,109 35,854 40,423 State and local (2,330 ) (2,056 ) (2,055 ) Total current 28,117 19,412 69,185 Deferred provision (benefit): U.S. federal — — (45,990 ) Non-U.S (9,436 ) 1,696 (3,770 ) State and local — — 380 Total deferred (9,436 ) 1,696 (49,380 ) Provision for income taxes $ 18,681 $ 21,108 $ 19,805 A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows: Fiscal Year 2019 2018 2017 Tax at statutory rate 21.0 % 21.0 % 35.0 % Permanent differences (2.0 ) (0.2 ) (0.1 ) State, net of federal tax benefit 17.6 (3.8 ) 1.0 Foreign rate differential 12.8 (12.3 ) 3.7 Withholding taxes (11.1 ) 16.3 — GILTI Tax-net of foreign tax credits (24.2 ) 11.8 — U.S. tax on foreign income-net of foreign tax credits 0.3 6.4 (1.7 ) Income tax contingencies 3.2 (5.0 ) (0.1 ) Valuation allowances (53.2 ) 65.0 (12.5 ) Repatriation tax - net impact — 5.9 (7.4 ) Deficiencies on employee stock awards (10.9 ) 10.1 (0.9 ) Non-deductible goodwill impairment — — (15.2 ) Tax reform rate reduction impact on deferred tax assets — (15.8 ) (6.2 ) Foreign deferred tax rate change (4.5 ) — — Non deductible foreign equity awards (3.2 ) 5.3 (0.5 ) Non deductible officer compensation (3.7 ) — — Tax exempt foreign capital gain income 6.3 — — Deferred adjustment (8.0 ) — — Other — — 0.5 Provision for income taxes (59.6 )% 104.7 % (4.4 )% 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 Act. The Tax Act contained significant changes in the taxation of foreign income earned by U.S. shareholders, specifically the new GILTI provisions requiring the taxation of certain foreign earnings in U.S. taxable income. The intent behind the legislation was to increase a corporation’s U.S. taxable income by any low-taxed foreign income earned by its subsidiaries. Instead, the statute was written such that corporate shareholders of foreign corporations must include all foreign income in their taxable income. If the corporate shareholder has a domestic source loss, the benefits of carrying that loss forward to future tax returns are lost if the included foreign income exceeds the domestic loss. The Company records a valuation allowance against its deferred tax assets when recovery of those amounts on a jurisdictional basis is not more likely than not. In addition, the Company's valuation allowance analysis is affected by various aspects of the Tax Act, including the limitation on the deductibility of interest expense and planning initiatives to defer deductions to mitigate the impact of the GILTI. During fiscal year 2019, the Company accrued valuation allowances of $28.5 million on net U.S. deferred tax assets and $(6.2) million on net foreign deferred tax assets, including $6.6 million recorded directly to equity. The total valuation allowance of $118.1 million at December 28, 2019 is comprised of $85.0 million and $33.1 million attributable to the U.S. and foreign operations, respectively. The Company will not indefinitely reinvest $279.1 million of previously taxed but undistributed earnings of its foreign subsidiaries as of December 28, 2019 . Since under the Tax Act there will be no additional federal income tax when these amounts are repatriated, and the foreign jurisdictions within which these earnings are held do 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 $481.6 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 $35.7 million , $33.5 million and $33.0 million for fiscal years 2019 , 2018 and 2017 , respectively. The U.S. Internal Revenue Service has completed examinations of the Company's federal income tax returns through 2013. Fiscal years 2016-2018 remain open for federal income tax examination. The Company is also subject to examinations in various state and foreign jurisdictions for its 2011-2018 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 28, 2019 . As of December 28, 2019 , the Company had recorded $11.4 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 $4.8 million and $3.7 million at December 28, 2019 and December 29, 2018 , respectively. The total amount of accrued income tax-related penalties in the Company's consolidated balance sheets was $1.0 million and $1.0 million at December 28, 2019 and December 29, 2018 , respectively. The Company accrued income tax-related interest expense of $1.2 million , $0.8 million and $0.5 million in fiscal years 2019 , 2018 and 2017 , respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands): Fiscal Year 2019 2018 2017 Balance at beginning of year $ 39,909 $ 35,355 $ 23,399 Gross increases—tax positions in prior years 6,639 7,183 2,104 Gross decreases—tax positions in prior years (4 ) (124 ) (845 ) Gross increases—tax positions in current year 184 576 13,444 Settlements (1,901 ) — (81 ) Lapse in statute of limitations (8,912 ) (2,980 ) (2,706 ) Change due to currency revaluation (239 ) (101 ) 40 Balance at end of year $ 35,676 $ 39,909 $ 35,355 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated collateralized incremental borrowing rate, which is based on the yield curve for the respective lease terms and adjusted for each lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands): Lease Cost Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Fiscal Year 2019 Operating lease cost (1) SG&A $ 117,932 Finance lease cost: Amortization of ROU assets SG&A $ 475 Interest on lease liabilities Interest expense $ 38 Short-term lease cost SG&A $ 1,302 Variable lease cost SG&A $ 36,476 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 28, 2019 Assets Operating Operating lease right-of-use assets $ 288,166 Finance Property, plant and equipment - net of accumulated depreciation of $4,015 $ 5,918 Liabilities Current: Operating Current operating lease liabilities $ 68,838 Finance Short-term and current portion of long-term debt $ 1,011 Noncurrent: Operating Long-term operating lease liabilities $ 288,689 Finance Long-term debt $ 1,468 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 28, 2019 Weighted-average remaining lease term: Operating leases 6.1 years Finance leases 2.3 years Weighted-average discount rate: Operating leases 13.9 % Finance leases 1.2 % Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2020 $ 116,778 $ 1,042 2021 94,795 978 2022 81,536 488 2023 64,582 — 2024 45,846 — Thereafter 153,255 — Total lease payments $ 556,792 $ 2,508 Less: Interest 199,265 30 Total lease obligations $ 357,527 $ 2,478 Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — Total lease payments $ 646,762 $ 3,541 Less: Interest 84 Finance lease obligations $ 3,457 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116,846 Operating cash flows from finance leases 38 Financing cash flows from finance leases 945 Leased assets obtained in exchange for new finance lease liabilities 83 Leased assets obtained in exchange for new operating lease liabilities 41,510 As of December 28, 2019 , the Company did not have any material operating or finance leases that have been signed but not commenced. |
Leases | Leases The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated collateralized incremental borrowing rate, which is based on the yield curve for the respective lease terms and adjusted for each lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands): Lease Cost Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Fiscal Year 2019 Operating lease cost (1) SG&A $ 117,932 Finance lease cost: Amortization of ROU assets SG&A $ 475 Interest on lease liabilities Interest expense $ 38 Short-term lease cost SG&A $ 1,302 Variable lease cost SG&A $ 36,476 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 28, 2019 Assets Operating Operating lease right-of-use assets $ 288,166 Finance Property, plant and equipment - net of accumulated depreciation of $4,015 $ 5,918 Liabilities Current: Operating Current operating lease liabilities $ 68,838 Finance Short-term and current portion of long-term debt $ 1,011 Noncurrent: Operating Long-term operating lease liabilities $ 288,689 Finance Long-term debt $ 1,468 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 28, 2019 Weighted-average remaining lease term: Operating leases 6.1 years Finance leases 2.3 years Weighted-average discount rate: Operating leases 13.9 % Finance leases 1.2 % Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2020 $ 116,778 $ 1,042 2021 94,795 978 2022 81,536 488 2023 64,582 — 2024 45,846 — Thereafter 153,255 — Total lease payments $ 556,792 $ 2,508 Less: Interest 199,265 30 Total lease obligations $ 357,527 $ 2,478 Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — Total lease payments $ 646,762 $ 3,541 Less: Interest 84 Finance lease obligations $ 3,457 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116,846 Operating cash flows from finance leases 38 Financing cash flows from finance leases 945 Leased assets obtained in exchange for new finance lease liabilities 83 Leased assets obtained in exchange for new operating lease liabilities 41,510 As of December 28, 2019 , the Company did not have any material operating or finance leases that have been signed but not commenced. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies License Agreements. The Company has various license agreements to market watches and jewelry bearing certain trademarks or incorporating certain technology owned by third parties. In accordance with these agreements, the Company incurred royalty expense of approximately $161.8 million , $173.0 million and $190.0 million in fiscal years 2019 , 2018 and 2017 , 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 2020 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 2020 $ 133,129 2021 18,252 2022 18,912 2023 19,573 2024 19,035 Thereafter 24,751 Total $ 233,652 These minimum royalty commitments do not include amounts owed under these license agreements for obligations of the Company to pay the licensors a percentage of net sales of these licensed products. Purchase Obligations. As of December 28, 2019 , the Company had purchase obligations totaling $333.7 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 2019 2018 Beginning asset retirement obligation $ 11,862 $ 13,086 Liabilities incurred during the period 563 166 Liabilities settled during the period (681 ) (1,150 ) Accretion expense 366 366 Currency translation (17 ) (606 ) Ending asset retirement obligations $ 12,093 $ 11,862 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. 28, 2019 | |
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 50,516,477 and 49,517,817 shares issued and outstanding at fiscal year-end 2019 and 2018 , 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 2019 and 2018 . 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 2019 , the Company repurchased approximately $1.2 billion of its common stock, representing approximately 11.8 million shares. At December 28, 2019 and December 29, 2018 , all treasury stock had been effectively retired. As of December 28, 2019 , the Company had $30.0 million of repurchase authorizations remaining under its repurchase plan. 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 2021, the present value of which the Company has measured at $1.1 million as of December 28, 2019 . The Company made payments of $1.2 million during fiscal year 2019 towards the purchase price. The transaction was accounted for as an equity transaction. The Company recorded $0.5 million of the variable consideration in accrued expenses-other and $0.6 million in other long-term liabilities in the consolidated balance sheets at December 28, 2019 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [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 matches 50% of employee contributions up to 8% of their compensation. Matching contributions made by the Company to the 401(k) Plan totaled approximately $3.2 million , $2.8 million and $2.9 million for fiscal years 2019 , 2018 and 2017 , respectively. 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 2019 , 2018 and 2017 . 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 2019 , 2018 and 2017 . 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 $5.2 million and $4.4 million related to the Company's invested balances recorded in intangible and other assets—net and liabilities of $4.6 million and $3.9 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 2019 and 2018 , 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 28, 2019 , the Company had approximately $18.7 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 1.4 years . All time-based or performance-based stock appreciation rights and restricted stock units are settled in shares of the Company's common stock. Long-Term Incentive Plans. An aggregate of 3,000,000 shares of the Company's common stock were reserved for issuance pursuant to the Company's 2016 Long-Term Incentive Plan ("2016 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 2019 and 2018, and each nonemployee director thus received a grant on May 22, 2019 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 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 2019, 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 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 Granted — — Exercised (13 ) 13.65 18 Forfeited or expired (1,408 ) 39.84 Outstanding at December 28, 2019 509 76.13 2.5 — Exercisable at December 28, 2019 509 $ 76.13 2.5 $ — 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 28, 2019 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 28, 2019 : 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 $29.49 - $47.99 33 38.40 0.2 33 38.40 $55.04 - $83.83 64 81.40 1.2 64 81.40 $95.91 - $131.46 87 128.04 2.1 87 128.04 Total 184 $ 95.63 1.5 184 $ 95.63 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 $29.49 - $47.99 182 42.30 3.8 182 42.30 $55.04 - $83.83 77 78.92 2.5 77 78.92 $95.91 - $131.46 66 111.90 1.6 66 111.90 Total 325 $ 65.08 3.0 325 $ 65.08 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 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 Granted 1,008 13.01 Vested (1,293 ) 17.92 Forfeited (397 ) 21.49 Nonvested at December 28, 2019 2,329 $ 15.16 The total fair value of shares/units vested during fiscal years 2019 , 2018 and 2017 was $17.6 million , $16.6 million and $6.3 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 2019 , 2018 and 2017 , the Company recorded pension gains (expenses) of $0.7 million , $(0.6) million and $(1.8) million , respectively, related to this plan. The liability for the Company's defined benefit plan was $17.0 million and $9.5 million at the end of fiscal years 2019 and 2018 , 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 2019 , 2018 and 2017 , the Company recorded pension gains (expenses) of $(0.4) million , $0.4 million and $0.7 million , respectively, for its retirement indemnity obligations. The liability for the Company's retirement indemnity was $1.2 million and $0.8 million at the end of fiscal years 2019 and 2018 , 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. 28, 2019 | |
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 2019 2018 2017 Cash paid during the year for: Interest $ 25,310 $ 38,855 $ 43,245 Income taxes, net of refunds $ 18,025 $ 28,460 $ 36,571 Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 2,060 $ 3,868 $ 2,300 Additions to property, plant and equipment acquired under finance leases $ 83 $ — $ — |
Supplemental Disclosure for Acc
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Pension Plan Total Beginning balance $ (74,868 ) $ 8,582 $ 1,595 $ (64,691 ) Other comprehensive income (loss) before reclassifications (5,606 ) 6,510 (5,165 ) (4,261 ) Tax (expense) benefit — (450 ) 446 (4 ) Amounts reclassed from accumulated other comprehensive income (loss) — 12,688 — 12,688 Tax (expense) benefit — (1,029 ) — (1,029 ) Total other comprehensive income (loss) (5,606 ) (5,599 ) (4,719 ) (15,924 ) Ending balance $ (80,474 ) $ 2,983 $ (3,124 ) $ (80,615 ) 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 — (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 ) |
Major Customer, Segment and Geo
Major Customer, Segment and Geographic Information | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Major Customer, Segment and Geographic Information | Major Customer, Segment and Geographic Information Major Customer Wholesale customers of the Company consist principally of major department stores and specialty retail stores located throughout the world. No individual customer accounts for 10% or more of the Company's net sales. Segment Information The Company reports segment information based on the "management approach". The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company manages its business primarily on a geographic basis. The Company's reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China (including Hong Kong, Macau and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. Each reportable operating segment provides similar products and services. The Company evaluates the performance of its reportable segments based on net sales and operating income (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes peripheral revenue generating activities from factories and intellectual property and general corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses that are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes. Summary information by operating segment was as follows (in thousands): Fiscal Year 2019 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 949,965 $ 66,703 $ 15,104 $ 164,097 $ 474,428 Europe 715,494 88,323 15,099 171,952 406,603 Asia 535,156 101,209 6,724 89,434 298,034 Corporate 17,097 (284,618 ) 16,515 119,791 425,667 Consolidated $ 2,217,712 $ (28,383 ) $ 53,442 $ 545,274 $ 1,604,732 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 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 The following table shows revenue for each class of similar products for fiscal years 2019 , 2018 and 2017 (in thousands): Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Net Sales Percentage of Total Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 1,802,481 81.3 % $ 2,033,021 80.0 % $ 2,199,031 78.9 % Leathers 238,619 10.8 289,385 11.4 325,502 11.7 Jewelry 123,177 5.6 167,775 6.6 211,694 7.6 Other 53,435 2.3 51,307 2.0 51,936 1.8 Total $ 2,217,712 100.0 % $ 2,541,488 100.0 % $ 2,788,163 100.0 % 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 2019 Net Sales (1) Long-term Assets United States $ 819,825 $ 239,032 Europe 718,216 (2) 184,507 Asia 537,503 99,565 All other international 142,168 22,170 Consolidated $ 2,217,712 $ 545,274 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 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity (including exports). (2) Net sales from Germany (including exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $310.1 million , $359.9 million and $406.2 million in fiscal years 2019 , 2018 and 2017 , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company implemented a multi-year restructuring program that began in fiscal year 2016 called New World Fossil ("NWF 1.0") and concluded in the third quarter of fiscal 2019. As part of NWF 1.0, the Company worked to improve operating profit and support sales growth through a leaner infrastructure and an enhanced business model. Restructuring costs under the program included store impairment, lease exit obligations and termination fees and accelerated depreciation. Total restructuring charges under NWF 1.0 since inception in fiscal year 2016 are $133.4 million , of which $10.8 million , $46.6 million and $48.2 million were recorded during fiscal years 2019, 2018 and 2017, respectively. The following tables show a rollforward of the accrued liability related to the Company’s NWF 1.0 restructuring plan (in thousands): Fiscal Year 2019 Liabilities Cash Payments Non-cash Items Liabilities December 29, 2018 Charges December 28, 2019 Store closures $ 2,818 $ 2,971 $ 1,673 $ 2,253 $ 1,863 Professional services 2,198 485 1,368 — 1,315 Severance and employee-related benefits 3,011 7,349 7,460 2,368 532 Total $ 8,027 $ 10,805 $ 10,501 $ 4,621 $ 3,710 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 NWF 1.0 restructuring charges by operating segment were as follows (in thousands): 2019 2018 2017 Americas $ 2,941 $ 17,197 $ 12,964 Europe 1,272 10,116 12,606 Asia 793 2,946 9,894 Corporate 5,799 16,371 12,707 Consolidated $ 10,805 $ 46,630 $ 48,171 Additionally, during fiscal year 2019, the Company launched a new restructuring program, New World Fossil 2.0 (“NWF 2.0”), which is focused on optimizing the Company’s operating structure to be more efficient, with faster decision-making and a more customer-centric focus. In addition to optimizing the way the Company goes to market, the Company is also pursuing additional gross margin expansion opportunities. The Company is taking a zero-based budgeting approach to adjust its business model to enable more investment in digital capabilities and marketing, move closer to the consumer and react more quickly to the ever-evolving consumer shopping patterns. The Company estimates total NWF 2.0 charges of up to approximately $130.0 million will be recorded. NWF 2.0 restructuring charges of $18.8 million were recorded during fiscal year 2019. The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands): Fiscal Year 2019 Liabilities Cash Payments Non-cash Items Liabilities December 29, 2018 Charges December 28, 2019 Store closures $ — $ 597 $ — $ 575 $ 22 Professional services and other — 8,039 5,215 — 2,824 Severance and employee-related benefits — 10,195 5,957 — 4,238 Total $ — $ 18,831 $ 11,172 $ 575 $ 7,084 NWF 2.0 restructuring charges by operating segment were as follows (in thousands): 2019 Americas $ 2,048 Europe 9,333 Asia 773 Corporate 6,677 Consolidated $ 18,831 |
SCHEDULE II VALUATIONS AND QUAL
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 28, 2019 | |
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 2017 , 2018 and 2019 (in thousands) Additions Deductions Classification Balance at Beginning of Period Charged to Operations Charged to Other Accounts Actual Returns or Writeoffs Balance at End of Period 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: Bad debts $ 12,928 $ 8,921 $ — $ 7,848 $ 14,001 Markdowns $ — $ 37,904 $ 28,416 $ 47,301 $ 19,019 Sales returns $ 75,200 $ 108,485 $ — $ 116,553 $ 67,132 Deferred tax asset valuation allowance $ 78,314 $ 13,102 $ 4,402 $ — $ 95,818 Fiscal Year 2019: Account receivable allowances: Bad debts $ 14,001 $ 2,921 $ — $ 3,688 $ 13,234 Markdowns $ 19,019 $ 49,915 $ — $ 45,848 $ 23,086 Sales returns $ 67,132 $ 139,350 $ — $ 129,015 $ 77,467 Deferred tax asset valuation allowance $ 95,818 $ 15,672 $ 6,599 $ — $ 118,089 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 2019 , 2018 and 2017 are for the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. All intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates is required in the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to product returns, bad debt, inventories, long-lived asset impairment, impairment of trade names, income taxes, warranty costs and litigation liabilities. Management bases its estimates and judgments on 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, economic or other disruptions affecting the business or operations of third-party manufacturers located outside of the U.S. In fiscal year 2019 , 47% 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 45.7% , 46.6% and 47.0% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively, of which MICHAEL KORS ® product sales accounted for 19.2% , 22.6% and 22.6% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively and EMPORIO ARMANI ® product sales accounted for 15.2% , 12.0% and 9.7% of the consolidated net sales for fiscal years 2019 , 2018 and 2017 , respectively. |
Cash Equivalents | Cash Equivalents are considered all highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash |
Accounts Receivable | Accounts Receivable at the end of fiscal years 2019 and 2018 are stated net of doubtful accounts of approximately $13.2 million and $14.0 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 2019 and 2018 , was $51.0 million and $43.7 million , respectively. |
Investments | Investments |
Lease | Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company's incremental borrowing rate, adjusted for the lease term and lease country, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and are reduced by lease incentives. Some lease terms include options to extend or terminate the lease and they are included in the measurement of the lease assets and lease liabilities if the Company is reasonably certain that those options will be exercised. Variable lease payments are expensed as incurred and include certain index-based changes in rent and certain non-lease components such as maintenance and other services provided by the lessor to the extent the charges are variable. The Company evaluates contractual arrangements at inception to determine if individual agreements are a lease or contain an identifiable lease component as defined by Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"). When evaluating contracts to determine appropriate classification and recognition under ASC 842, significant judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease and whether renewal or termination options are reasonably certain to be exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease agreements with lease and non-lease components are combined as a single lease component for all classes of underlying assets. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. |
Property, Plant and Equipment, 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 $0.7 million , $1.9 million and $1.3 million were recorded in SG&A and impairment losses of approximately $0.6 million , $1.7 million and $8.0 million were recorded in restructuring charges in fiscal years 2019 , 2018 and 2017 , respectively. Additionally, in fiscal years 2019, 2018 and 2017, the Company recorded non-impairment losses related to the disposal of property, plant and equipment of $0.5 million , $0.6 million and $0.4 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 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 . 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 trade name may not be recoverable, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of an intangible asset with its fair value. When the carrying amount of an intangible asset exceeds its fair value, an impairment charge is recorded. The fair values of the Company's SKAGEN ® and MICHELE ® trade names were estimated using the relief from royalty method. During fiscal 2019 , the SKAGEN trade name with a carrying amount of $21.1 million was written down to its implied fair value of $4.5 million , resulting in a pre-tax impairment charge of $16.6 million . Concurrent with the impairment testing, the Company determined the trade name would no longer have an indefinite useful life. In fiscal year 2018 , an impairment charge of $6.2 million was recorded related to the SKAGEN trade name. For fiscal year 2019 , a discount rate of 10.2% and a royalty rate of 5% were used to estimate the MICHELE trade name fair value. No impairment charges were recorded to the MICHELE trade name during fiscal years 2019 or 2018 . 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. |
Accrued Expenses | 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) of approximately $3.9 million , $(5.8) million and $7.8 million for fiscal years 2019 , 2018 and 2017 , 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). |
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 from customers. The Company continually monitors returns and maintains a provision for estimated returns based upon historical experience and any specific issues identified. Product returns are accounted for as reductions to revenue and cost of sales and increases to customer liabilities and other current assets to the extent the returned product is resalable. 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 $77.5 million and $67.1 million in accrued expenses as of the end of fiscal years 2019 and 2018 , 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 |
Advertising Costs | Advertising Costs |
Warranty Costs | Warranty Costs |
Research and Development Costs | Research and Development Costs |
Noncontrolling Interest | Noncontrolling Interest is recognized as equity in the Company's consolidated balance sheets, is reflected in net income attributable to noncontrolling interest in the consolidated statements of income (loss) and comprehensive income (loss) and is captured within the summary of changes in equity attributable to controlling and noncontrolling interests. Noncontrolling interests represent ownership interests in the Company's subsidiaries held by third parties. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) which is reported in the consolidated statements of income (loss) and comprehensive income (loss) and consolidated statements of stockholders' equity, consists of net income and other gains and losses affecting equity that are excluded from net income. The components of other comprehensive income (loss) primarily consist of foreign currency translation gains and losses and net realized and unrealized gains and losses on the following: (i) derivatives designated as cash flow hedges and (ii) the Company's defined benefit plans. |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share ("EPS") is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method. |
Income Taxes | Income Taxes are provided for under the asset and liability method for temporary differences in assets and liabilities recognized for income tax and financial reporting purposes. Deferred tax assets are periodically assessed for the likelihood of whether they are more likely than not to be realized. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (i) the more likely than not recognition threshold is satisfied; (ii) the position is ultimately settled through negotiation or litigation; or (iii) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the "Tax Act") requiring the inclusion of certain foreign earnings in U.S. taxable income first applied in fiscal year 2018. The GILTI tax was accounted for as incurred under the period cost method. The Company's valuation allowance analysis is affected by various aspects of the Tax Act, including the new limitation on the deductibility of interest expense and the impact of GILTI. Those adjustments may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Income Taxes (Topic 740). It also clarifies and amends existing guidance to improve consistent application. The guidance is effective for fiscal years beginning after December 15, 2020, 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 2018-15, 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 standard will not 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 modifies the measurement of expected credit losses of certain financial instruments, including trade receivables. The estimate of expected credit losses will require the consideration of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The standard will not have a material impact on the Company's consolidated results of operations or financial position. Recently Adopted Accounting Standards The Company adopted ASU 2016-02 on December 30, 2018, the first day of fiscal 2019, using the modified retrospective approach, and accordingly, information for periods prior to December 30, 2018 are presented under ASC 840, Leases ("ASC 840"), the predecessor to ASC 842. The Company has elected to use the transition practical expedient. The transition practical expedient allows companies to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. The Company used 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 did not elect to adopt the hindsight practical expedient and therefore maintained the lease terms previously determined under ASC 840. Adoption of ASU 2016-02 resulted in recording right-of-use ("ROU") lease assets of $370.3 million which were written down to $327.3 million as a result of $43.0 million of previous store impairment, excluding taxes, and lease liabilities of $390.6 million as of December 30, 2018. The Company recognized a cumulative-effect adjustment to the opening balance of retained earnings of approximately $29.5 million as of December 30, 2018 as a result of previous store impairment and a previous sale leaseback transaction, net of tax effects. Under ASC 840, the gain on the sale leaseback transaction was deferred over the lease term; however under ASC 842, the gain is recognized at the time of sale. Accordingly, a retained earnings adjustment to recognize the remaining gain was recorded upon the adoption of ASC 842. The standard did not have a material impact on the Company's consolidated results of operations or cash flows. See "Note 13—Leases" for additional lease disclosures. In August 2017, the FASB issued 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 Company adopted ASU 2017-12 on the first day of fiscal year 2019. Adoption resulted in $9.9 million of net gains being recorded in cost of sales for fiscal year 2019 which would have been recognized in other income (expense) - net under previous accounting guidance. |
Fair Value Measurements | The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurement and Disclosures ("ASC 820"), establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. • Level 3—Unobservable inputs based on the Company's assumptions. ASC 820 requires the use of observable market data if such data is available without undue cost and effort. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 2017 Numerator: Net income (loss) attributable to Fossil Group, Inc. $ (52,365 ) $ (3,478 ) $ (478,172 ) Denominator: Basic EPS computation: Basic weighted average common shares outstanding 50,230 49,196 48,468 Basic EPS $ (1.04 ) $ (0.07 ) $ (9.87 ) Diluted EPS computation: Basic weighted average common shares outstanding 50,230 49,196 48,468 Diluted weighted average common shares outstanding 50,230 49,196 48,468 Diluted EPS $ (1.04 ) $ (0.07 ) $ (9.87 ) |
Schedule of cash, cash equivalents, and restricted cash balances | The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 28, 2019 , December 29, 2018 and December 30, 2017 that are presented in the consolidated statement of cash flows (in thousands): December 28, 2019 December 29, 2018 December 30, 2017 Cash and cash equivalents $ 200,218 $ 403,373 $ 231,244 Restricted cash included in prepaid expenses and other current assets 30 31 34 Restricted cash included in intangible and other assets-net 7,501 7,479 377 Cash, cash equivalents and restricted cash $ 207,749 $ 410,883 $ 231,655 |
Schedule of cash, cash equivalents, and restricted cash balances | The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of December 28, 2019 , December 29, 2018 and December 30, 2017 that are presented in the consolidated statement of cash flows (in thousands): December 28, 2019 December 29, 2018 December 30, 2017 Cash and cash equivalents $ 200,218 $ 403,373 $ 231,244 Restricted cash included in prepaid expenses and other current assets 30 31 34 Restricted cash included in intangible and other assets-net 7,501 7,479 377 Cash, cash equivalents and restricted cash $ 207,749 $ 410,883 $ 231,655 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands): Fiscal Year 2019 Americas Europe Asia Corporate Total Product Type Watches $ 769,581 $ 557,460 $ 475,361 $ 79 $ 1,802,481 Leathers 145,632 47,308 45,679 — 238,619 Jewelry 24,826 92,935 5,416 — 123,177 Other 9,926 17,791 8,700 17,018 53,435 Consolidated $ 949,965 $ 715,494 $ 535,156 $ 17,097 $ 2,217,712 Timing of Revenue Recognition Revenue recognized at a point in time $ 947,353 $ 714,056 $ 534,403 $ 6,145 $ 2,201,957 Revenue recognized over time 2,612 1,438 753 10,952 15,755 Consolidated $ 949,965 $ 715,494 $ 535,156 $ 17,097 $ 2,217,712 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. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in thousands): At Fiscal Year End 2019 2018 Components and parts $ 35,626 $ 28,183 Work-in-process 11,034 9,458 Finished goods 405,618 339,981 Inventories $ 452,278 $ 377,622 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty liability activity | Warranty liability activity consisted of the following (in thousands): Fiscal Year 2019 2018 2017 Beginning balance $ 22,807 $ 19,405 $ 15,421 Settlements in cash or kind (18,073 ) (15,197 ) (15,177 ) Warranties issued and adjustments to preexisting warranties (1) 18,361 18,599 19,161 Ending balance $ 23,095 $ 22,807 $ 19,405 ____________________________________________ (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. 28, 2019 | |
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 2019 2018 Prepaid royalties $ 22,258 $ 43,074 Prepaid taxes and tax receivables 34,712 37,587 Other receivables 10,581 7,092 Forward contracts 3,327 9,232 Inventory returns 22,402 23,509 Prepaid rent 429 7,700 Property held for sale — 1,135 Short term deposits 1,530 876 Other 21,979 19,347 Prepaid expenses and other current assets $ 117,218 $ 149,552 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 Land $ 7,579 $ 7,736 Buildings 37,012 37,766 Machinery and equipment 39,756 39,583 Furniture and fixtures 96,940 102,141 Computer equipment and software 235,757 243,490 Leasehold improvements 192,114 198,703 Construction in progress 7,255 7,103 616,413 636,522 Less accumulated depreciation and amortization 464,913 453,319 Property, plant and equipment-net $ 151,500 $ 183,203 |
Intangible and Other Assets (Ta
Intangible and Other Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible and other assets-net | Intangible and other assets-net consisted of the following (in thousands): 2019 2018 At Fiscal Year End Useful Lives Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Intangibles-subject to amortization: Trademarks 10 yrs. $ 3,612 $ 2,993 $ 4,293 $ 3,859 Customer lists 5 - 10 yrs. 52,517 44,013 52,635 38,028 Patents 3 - 20 yrs. 2,308 1,937 2,310 2,154 Developed technology 7 yrs. 2,193 548 36,100 15,471 Trade name 6 yrs. 4,502 188 — — Other 7 - 20 yrs. 383 272 261 247 Total intangibles-subject to amortization 65,515 49,951 95,599 59,759 Intangibles-not subject to amortization: Trade names 11,315 32,427 Other assets: Other deposits 18,558 19,641 Deferred compensation plan assets 5,243 4,442 Deferred tax asset-net 38,275 23,695 Restricted cash 7,501 7,479 Tax receivable 6,507 7,060 Investments 500 500 Other 2,145 2,342 Total other assets 78,729 65,159 Total intangible and other assets $ 155,559 $ 49,951 $ 193,185 $ 59,759 Total intangible and other assets-net $ 105,608 $ 133,426 |
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 2020 $ 6,833 2021 3,003 2022 2,127 2023 1,085 2024 1,068 Thereafter 1,448 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding forward contracts | As of December 28, 2019 , 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 106.0 U.S. dollar 122.7 Canadian dollar 41.4 U.S. dollar 31.3 British pound 13.6 U.S. dollar 17.7 Japanese yen 1,320.5 U.S. dollar 12.4 Mexican peso 167.8 U.S. dollar 8.4 Australian dollar 6.7 U.S. dollar 4.6 U.S. dollar 18.7 Japanese Yen 1,985.0 |
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 2019 , 2018 and 2017 are set forth below (in thousands): Fiscal Year 2019 2018 2017 Cash flow hedges: Forward contracts $ 6,060 $ 18,044 $ (25,088 ) Interest rate swaps — — 278 Total gain (loss) recognized in other comprehensive income (loss), net of taxes $ 6,060 $ 18,044 $ (24,810 ) |
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 2019 , 2018 and 2017 (in thousands): Derivative Instruments Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Effect of Derivative Instruments Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Forward contracts designated as cash flow hedging instruments Cost of sales (1) Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 9,939 $ — $ — Forward contracts designated as cash flow hedging instruments Other income (expense)-net Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ 1,720 $ (2,629 ) $ (4,297 ) Forward contracts not designated as hedging instruments Other income (expense)-net Total gain (loss) recognized in income $ (88 ) $ 244 $ (652 ) Interest rate swap designated as a cash flow hedging instrument Interest expense Total gain (loss) reclassified from accumulated other comprehensive income (loss) $ — $ — $ (260 ) 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 _______________________________________________ (1) |
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 28, 2019 December 29, 2018 December 28, 2019 December 29, 2018 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 $ 3,327 Prepaid expenses and other current assets $ 9,217 Accrued expenses-other $ 1,657 Accrued expenses-other $ 660 Forward contracts not designated as cash flow hedging instruments Prepaid expenses and other current assets — Prepaid expenses and other current assets 15 Accrued expenses-other 63 Accrued expenses-other — Forward contracts designated as cash flow hedging instruments Intangible and other assets-net 21 Intangible and other assets-net 453 Other long-term liabilities 104 Other long-term liabilities 70 Total $ 3,348 $ 9,685 $ 1,824 $ 730 The following table summarizes the effects of the Company's derivative instruments on earnings (in thousands): Effect of Derivative Instruments Fiscal Year 2019 Fiscal Year 2018 Cost of Sales Other Income (Expense)-net Cost of Sales Other Income (Expense)-net Total amounts of income and expense line items presented in the consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded $ 1,118,274 $ 26,984 $ 1,201,351 $ (38 ) Gain (loss) on cash flow hedging relationships: Forward contracts designated as cash flow hedging instruments: Total gain (loss) reclassified from other comprehensive income (loss) 9,939 1,720 — (2,629 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 (in thousands): Fair Value at December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Forward contracts $ — $ 3,348 $ — $ 3,348 Deferred compensation plan assets: Investment in publicly traded mutual funds 5,243 — — 5,243 Total $ 5,243 $ 3,348 $ — $ 8,591 Liabilities: Contingent consideration $ — $ — $ 1,141 $ 1,141 Forward contracts — 1,824 — 1,824 Total $ — $ 1,824 $ 1,141 $ 2,965 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 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of components of debt excluding finance lease obligations | The Company's debt consisted of the following, excluding finance lease obligations, (in millions): December 28, 2019 December 29, 2018 U.S. revolving line of credit (1) $ 20.1 $ — U.S. term loan (2) 182.2 392.3 Other international 0.2 0.4 Total debt $ 202.5 $ 392.7 Less current portion 25.2 125.4 Long-term debt $ 177.3 $ 267.3 ___________________________________________ (1) Net of debt issuance costs of $7.9 million at December 28, 2019 (2) Net of debt issuance costs and original issue discount of $6.6 million and $11.2 million , respectively at December 28, 2019 . Net of debt issuance costs of $7.7 million at December 29, 2018 . |
Schedule of maturity of debt excluding finance lease obligations | The Company's debt as of December 28, 2019 , excluding finance lease obligations, matures as follows (in millions): Less than 1 Year $ 25.2 Year 2 22.5 Year 3 30.0 Year 4 22.5 Year 5 128.0 Principal amounts repayable 228.2 Debt issuance costs (14.5 ) Original issue discount (11.2 ) Total debt outstanding $ 202.5 |
Other Income (Expense)_Net (Tab
Other Income (Expense)—Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense)—net | Other income (expense)—net consisted of the following (in thousands): Fiscal Year 2019 2018 2017 Interest income $ 2,075 $ 2,605 $ 4,729 Contingent consideration remeasurement 601 3,381 — Gain on interest rate swap — — 195 Equity in losses of unconsolidated investment (371 ) (558 ) (460 ) Extinguishment of debt (3,044 ) (718 ) (1,029 ) Gain on asset divestitures 23,134 — 1,750 Net currency (losses) gains 3,932 (5,820 ) 7,849 Other net gains 657 1,072 702 Other income (expense) - net $ 26,984 $ (38 ) $ 13,736 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2019 2018 Deferred income tax assets: Bad debt allowance $ 2,048 $ 1,974 Returns allowance 3,990 4,935 Inventory 6,856 4,519 Warranty liabilities 3,465 3,317 Markdown allowance 3,480 2,800 Compensation 11,998 18,772 Accrued liabilities 6,672 5,903 Deferred rent — 7,996 Deferred income 3,582 5,706 Unrealized exchange gains (losses) 3,816 637 State income tax and interest on tax contingencies 887 1,189 Fixed assets 220 (8,009 ) Trade names and customer lists 4,345 1,703 Goodwill 14,947 17,957 Foreign accruals 10,446 8,528 Loss carryforwards 32,158 31,582 Tax credit carryforwards 4,281 512 Capitalized R&D 8,362 2,546 Interest disallowance 16,683 9,642 Lease liabilities 82,511 — Deferred income tax assets total $ 220,747 $ 122,209 Deferred income tax liabilities: Tenant allowance $ (801 ) $ — Other intangibles (235 ) (4,562 ) Undistributed earnings of certain foreign subsidiaries (329 ) (541 ) Right-of-use assets (65,070 ) — Other (45 ) (32 ) Deferred income tax liabilities total $ (66,480 ) $ (5,135 ) Valuation allowance (118,089 ) (95,818 ) Net deferred income tax assets $ 36,178 $ 21,256 Net deferred income tax assets $ 38,275 $ 23,695 Net deferred income tax liabilities (2,097 ) (2,439 ) Net deferred income tax assets $ 36,178 $ 21,256 |
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 2020 through 2024 $ 18,923 Expires 2025 through 2029 14,931 Expires 2030 through 2034 — Expires 2035 through 2039 74,315 Indefinite 10,428 Total loss carryforwards $ 118,597 Expires 2020 through 2024 $ 632 Expires 2025 through 2029 9,199 Expires 2030 through 2034 3,096 Expires 2035 through 2039 46,749 Indefinite 26,270 Total loss carryforwards $ 85,946 |
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 2019 2018 2017 U.S $ (142,141 ) $ (102,810 ) $ (517,227 ) Non-U.S 110,810 122,980 63,473 Total $ (31,331 ) $ 20,170 $ (453,754 ) |
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 2019 2018 2017 Current provision: U.S. federal $ 2,338 $ (14,386 ) $ 30,817 Non-U.S 28,109 35,854 40,423 State and local (2,330 ) (2,056 ) (2,055 ) Total current 28,117 19,412 69,185 Deferred provision (benefit): U.S. federal — — (45,990 ) Non-U.S (9,436 ) 1,696 (3,770 ) State and local — — 380 Total deferred (9,436 ) 1,696 (49,380 ) Provision for income taxes $ 18,681 $ 21,108 $ 19,805 |
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 2019 2018 2017 Tax at statutory rate 21.0 % 21.0 % 35.0 % Permanent differences (2.0 ) (0.2 ) (0.1 ) State, net of federal tax benefit 17.6 (3.8 ) 1.0 Foreign rate differential 12.8 (12.3 ) 3.7 Withholding taxes (11.1 ) 16.3 — GILTI Tax-net of foreign tax credits (24.2 ) 11.8 — U.S. tax on foreign income-net of foreign tax credits 0.3 6.4 (1.7 ) Income tax contingencies 3.2 (5.0 ) (0.1 ) Valuation allowances (53.2 ) 65.0 (12.5 ) Repatriation tax - net impact — 5.9 (7.4 ) Deficiencies on employee stock awards (10.9 ) 10.1 (0.9 ) Non-deductible goodwill impairment — — (15.2 ) Tax reform rate reduction impact on deferred tax assets — (15.8 ) (6.2 ) Foreign deferred tax rate change (4.5 ) — — Non deductible foreign equity awards (3.2 ) 5.3 (0.5 ) Non deductible officer compensation (3.7 ) — — Tax exempt foreign capital gain income 6.3 — — Deferred adjustment (8.0 ) — — Other — — 0.5 Provision for income taxes (59.6 )% 104.7 % (4.4 )% |
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 2019 2018 2017 Balance at beginning of year $ 39,909 $ 35,355 $ 23,399 Gross increases—tax positions in prior years 6,639 7,183 2,104 Gross decreases—tax positions in prior years (4 ) (124 ) (845 ) Gross increases—tax positions in current year 184 576 13,444 Settlements (1,901 ) — (81 ) Lapse in statute of limitations (8,912 ) (2,980 ) (2,706 ) Change due to currency revaluation (239 ) (101 ) 40 Balance at end of year $ 35,676 $ 39,909 $ 35,355 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Components of leases | The components of lease expense were as follows (in thousands): Lease Cost Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location Fiscal Year 2019 Operating lease cost (1) SG&A $ 117,932 Finance lease cost: Amortization of ROU assets SG&A $ 475 Interest on lease liabilities Interest expense $ 38 Short-term lease cost SG&A $ 1,302 Variable lease cost SG&A $ 36,476 _______________________________________________ (1) Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands): Leases Consolidated Balance Sheets Location December 28, 2019 Assets Operating Operating lease right-of-use assets $ 288,166 Finance Property, plant and equipment - net of accumulated depreciation of $4,015 $ 5,918 Liabilities Current: Operating Current operating lease liabilities $ 68,838 Finance Short-term and current portion of long-term debt $ 1,011 Noncurrent: Operating Long-term operating lease liabilities $ 288,689 Finance Long-term debt $ 1,468 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases: Lease Term and Discount Rate December 28, 2019 Weighted-average remaining lease term: Operating leases 6.1 years Finance leases 2.3 years Weighted-average discount rate: Operating leases 13.9 % Finance leases 1.2 % |
Maturity of lease liabilities | Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2020 $ 116,778 $ 1,042 2021 94,795 978 2022 81,536 488 2023 64,582 — 2024 45,846 — Thereafter 153,255 — Total lease payments $ 556,792 $ 2,508 Less: Interest 199,265 30 Total lease obligations $ 357,527 $ 2,478 |
Maturity of lease liabilities | Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2020 $ 116,778 $ 1,042 2021 94,795 978 2022 81,536 488 2023 64,582 — 2024 45,846 — Thereafter 153,255 — Total lease payments $ 556,792 $ 2,508 Less: Interest 199,265 30 Total lease obligations $ 357,527 $ 2,478 |
Future minimum lease payments | Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — Total lease payments $ 646,762 $ 3,541 Less: Interest 84 Finance lease obligations $ 3,457 |
Future minimum leases payments | Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2019 $ 135,025 $ 951 2020 105,668 947 2021 84,230 947 2022 73,928 696 2023 61,710 — Thereafter 186,201 — Total lease payments $ 646,762 $ 3,541 Less: Interest 84 Finance lease obligations $ 3,457 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116,846 Operating cash flows from finance leases 38 Financing cash flows from finance leases 945 Leased assets obtained in exchange for new finance lease liabilities 83 Leased assets obtained in exchange for new operating lease liabilities 41,510 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2020 $ 133,129 2021 18,252 2022 18,912 2023 19,573 2024 19,035 Thereafter 24,751 Total $ 233,652 |
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 2019 2018 Beginning asset retirement obligation $ 11,862 $ 13,086 Liabilities incurred during the period 563 166 Liabilities settled during the period (681 ) (1,150 ) Accretion expense 366 366 Currency translation (17 ) (606 ) Ending asset retirement obligations $ 12,093 $ 11,862 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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 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 Granted — — Exercised (13 ) 13.65 18 Forfeited or expired (1,408 ) 39.84 Outstanding at December 28, 2019 509 76.13 2.5 — Exercisable at December 28, 2019 509 $ 76.13 2.5 $ — |
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 28, 2019 : 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 $29.49 - $47.99 33 38.40 0.2 33 38.40 $55.04 - $83.83 64 81.40 1.2 64 81.40 $95.91 - $131.46 87 128.04 2.1 87 128.04 Total 184 $ 95.63 1.5 184 $ 95.63 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 $29.49 - $47.99 182 42.30 3.8 182 42.30 $55.04 - $83.83 77 78.92 2.5 77 78.92 $95.91 - $131.46 66 111.90 1.6 66 111.90 Total 325 $ 65.08 3.0 325 $ 65.08 |
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 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 Granted 1,008 13.01 Vested (1,293 ) 17.92 Forfeited (397 ) 21.49 Nonvested at December 28, 2019 2,329 $ 15.16 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of supplemental cash flow information | The following table summarizes supplemental cash flow information (in thousands): Fiscal Year 2019 2018 2017 Cash paid during the year for: Interest $ 25,310 $ 38,855 $ 43,245 Income taxes, net of refunds $ 18,025 $ 28,460 $ 36,571 Supplemental disclosures of non-cash investing and financing activities: Additions to property, plant and equipment included in accounts payable $ 2,060 $ 3,868 $ 2,300 Additions to property, plant and equipment acquired under finance leases $ 83 $ — $ — |
Supplemental Disclosure for A_2
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 Cash Flow Hedges Currency Translation Adjustments Forward Contracts Pension Plan Total Beginning balance $ (74,868 ) $ 8,582 $ 1,595 $ (64,691 ) Other comprehensive income (loss) before reclassifications (5,606 ) 6,510 (5,165 ) (4,261 ) Tax (expense) benefit — (450 ) 446 (4 ) Amounts reclassed from accumulated other comprehensive income (loss) — 12,688 — 12,688 Tax (expense) benefit — (1,029 ) — (1,029 ) Total other comprehensive income (loss) (5,606 ) (5,599 ) (4,719 ) (15,924 ) Ending balance $ (80,474 ) $ 2,983 $ (3,124 ) $ (80,615 ) 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 — (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 ) |
Major Customer, Segment and G_2
Major Customer, Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary information by operating segment | Summary information by operating segment was as follows (in thousands): Fiscal Year 2019 Net Sales Operating Income (Loss) Depreciation and Amortization Long-term Assets Total Assets Americas $ 949,965 $ 66,703 $ 15,104 $ 164,097 $ 474,428 Europe 715,494 88,323 15,099 171,952 406,603 Asia 535,156 101,209 6,724 89,434 298,034 Corporate 17,097 (284,618 ) 16,515 119,791 425,667 Consolidated $ 2,217,712 $ (28,383 ) $ 53,442 $ 545,274 $ 1,604,732 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 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 |
Schedule of revenue for each class of similar products | The following table shows revenue for each class of similar products for fiscal years 2019 , 2018 and 2017 (in thousands): Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Net Sales Percentage of Total Net Sales Percentage of Total Net Sales Percentage of Total Watches $ 1,802,481 81.3 % $ 2,033,021 80.0 % $ 2,199,031 78.9 % Leathers 238,619 10.8 289,385 11.4 325,502 11.7 Jewelry 123,177 5.6 167,775 6.6 211,694 7.6 Other 53,435 2.3 51,307 2.0 51,936 1.8 Total $ 2,217,712 100.0 % $ 2,541,488 100.0 % $ 2,788,163 100.0 % |
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 2019 Net Sales (1) Long-term Assets United States $ 819,825 $ 239,032 Europe 718,216 (2) 184,507 Asia 537,503 99,565 All other international 142,168 22,170 Consolidated $ 2,217,712 $ 545,274 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 _______________________________________________________________________________ (1) Net sales are based on the location of the selling entity (including exports). (2) Net sales from Germany (including exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $310.1 million , $359.9 million and $406.2 million in fiscal years 2019 , 2018 and 2017 , respectively. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of rollforward of the liability incurred for restructuring plan | The following tables show a rollforward of the accrued liability related to the Company’s NWF 2.0 restructuring plan (in thousands): Fiscal Year 2019 Liabilities Cash Payments Non-cash Items Liabilities December 29, 2018 Charges December 28, 2019 Store closures $ — $ 597 $ — $ 575 $ 22 Professional services and other — 8,039 5,215 — 2,824 Severance and employee-related benefits — 10,195 5,957 — 4,238 Total $ — $ 18,831 $ 11,172 $ 575 $ 7,084 The following tables show a rollforward of the accrued liability related to the Company’s NWF 1.0 restructuring plan (in thousands): Fiscal Year 2019 Liabilities Cash Payments Non-cash Items Liabilities December 29, 2018 Charges December 28, 2019 Store closures $ 2,818 $ 2,971 $ 1,673 $ 2,253 $ 1,863 Professional services 2,198 485 1,368 — 1,315 Severance and employee-related benefits 3,011 7,349 7,460 2,368 532 Total $ 8,027 $ 10,805 $ 10,501 $ 4,621 $ 3,710 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 |
Schedule of restructuring charges by operating segment | NWF 1.0 restructuring charges by operating segment were as follows (in thousands): 2019 2018 2017 Americas $ 2,941 $ 17,197 $ 12,964 Europe 1,272 10,116 12,606 Asia 793 2,946 9,894 Corporate 5,799 16,371 12,707 Consolidated $ 10,805 $ 46,630 $ 48,171 NWF 2.0 restructuring charges by operating segment were as follows (in thousands): 2019 Americas $ 2,048 Europe 9,333 Asia 773 Corporate 6,677 Consolidated $ 18,831 |
Significant Accounting Polici_4
Significant Accounting Policies (Concentration of Risk) (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Watches | Production | Production concentration | |||
Concentration of Risk | |||
Concentration risk percentage | 47.00% | ||
Licensed products | Sales of licensed products | Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 45.70% | 46.60% | 47.00% |
MICHAEL KORS | Sales of licensed products | Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 19.20% | 22.60% | 22.60% |
ARMANI | Sales of licensed products | Licensed products | |||
Concentration of Risk | |||
Concentration risk percentage | 15.20% | 12.00% | 9.70% |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 200,218 | $ 403,373 | $ 231,244 | |
Restricted cash included in prepaid expenses and other current assets | 30 | 31 | 34 | |
Restricted cash included in intangible and other assets-net | 7,501 | 7,479 | 377 | |
Cash, cash equivalents and restricted cash | $ 207,749 | $ 410,883 | $ 231,655 | $ 297,862 |
Significant Accounting Polici_6
Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts receivable | $ 13.2 | $ 14 |
Significant Accounting Polici_7
Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Consigned inventory | $ 51 | $ 43.7 |
Significant Accounting Polici_8
Significant Accounting Policies (Investments) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cost method investments | $ 0.5 | $ 0.5 |
Significant Accounting Polici_9
Significant Accounting Policies Significant Accounting Policies (Lease) (Details) (Details) - USD ($) $ in Millions | Dec. 30, 2018 | Dec. 28, 2019 |
Lessee, Lease, Description [Line Items] | ||
Lease impairment loss | $ 43 | $ 7.9 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Lease impairment loss | $ 1.7 |
Significant Accounting Polic_10
Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Buildings | |||
Property, plant and equipment | |||
Useful life | 30 years | ||
Machinery and equipment | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Furniture and fixtures | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Computer equipment and software | Minimum | |||
Property, plant and equipment | |||
Useful life | 2 years | ||
Computer equipment and software | Maximum | |||
Property, plant and equipment | |||
Useful life | 7 years | ||
Selling, general and administrative | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | $ 0.7 | $ 1.9 | $ 1.3 |
Restructuring charges | |||
Property, plant and equipment | |||
Loss on disposal of assets | 0.5 | 0.6 | 0.4 |
Restructuring charges | Retail stores | |||
Property, plant and equipment | |||
Impairment losses | $ 0.6 | $ 1.7 | $ 8 |
Significant Accounting Polic_11
Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Americas | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | $ 202,300,000 | ||
Europe | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | 114,300,000 | ||
Asia | |||
Finite lived intangible assets | |||
Goodwill, impairment loss | 42,900,000 | ||
Trade Names, SKAGEN | |||
Finite lived intangible assets | |||
Indefinite-lived intangible assets (excluding goodwill) | $ 21,100,000 | $ 27,300,000 | |
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 4,500,000 | 21,100,000 | |
Impairment charges | 16,600,000 | 6,200,000 | 28,300,000 |
Trade Names, MISFIT | |||
Finite lived intangible assets | |||
Impairment charges | 11,800,000 | ||
Trade Name, MICHELE | |||
Finite lived intangible assets | |||
Impairment charges | $ 0 | $ 0 | $ 7,600,000 |
Minimum | |||
Finite lived intangible assets | |||
Useful Lives | 3 years | ||
Maximum | |||
Finite lived intangible assets | |||
Useful Lives | 20 years | ||
Measurement Input, Discount Rate | Trade Name, MICHELE | |||
Finite lived intangible assets | |||
Indefinite lived intangible assets (excluding goodwill), measurement input | 10.20% | ||
Measurement Input, Royalty Rate | Trade Names, SKAGEN | |||
Finite lived intangible assets | |||
Indefinite lived intangible assets (excluding goodwill), measurement input | 5.00% |
Significant Accounting Polic_12
Significant Accounting Policies (Foreign Transaction Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency transaction gains (losses) | $ 3,932 | $ (5,820) | $ 7,849 |
Significant Accounting Polic_13
Significant Accounting Policies Significant Accounting Policies (Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Estimated sales return provision | $ 77.5 | $ 67.1 |
Significant Accounting Polic_14
Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs | $ 171 | $ 181 | $ 207.1 |
Significant Accounting Polic_15
Significant Accounting Policies (Research and Development Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development costs | $ 32.4 | $ 38.2 | $ 42.8 |
Significant Accounting Polic_16
Significant Accounting Policies (Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Numerator: | |||
Net income (loss) attributable to Fossil Group, Inc. | $ (52,365) | $ (3,478) | $ (478,172) |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 50,230 | 49,196 | 48,468 |
Basic EPS (in dollars per share) | $ (1.04) | $ (0.07) | $ (9.87) |
Diluted EPS computation: | |||
Basic weighted average common shares outstanding (in shares) | 50,230 | 49,196 | 48,468 |
Diluted weighted average common shares outstanding (in shares) | 50,230 | 49,196 | 48,468 |
Diluted EPS (in dollars per share) | $ (1.04) | $ (0.07) | $ (9.87) |
Stock Compensation Plan | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 3,400 | 5,100 | 4,600 |
Performance Shares | |||
Diluted EPS computation: | |||
Shares issuable under stock-based awards not included in the diluted EPS calculation (in shares) | 600 | 1,200 | 1,200 |
Significant Accounting Polic_17
Significant Accounting Policies Significant Accounting Policies (Recently Issued and Adopted Accounting Standards) (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 288,166 | |||
Lease impairment loss | $ 43,000 | 7,900 | ||
Operating lease liability | 357,527 | |||
Cost of sales | 1,118,274 | $ 1,201,351 | $ 1,429,324 | |
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | 327,300 | $ 370,300 | ||
Operating lease liability | 390,600 | |||
Purchase of noncontrolling interest shares | (29,468) | |||
Retained Earnings | Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Purchase of noncontrolling interest shares | $ (29,468) | |||
Amount reclassified from AOCI | Forward contracts | Cash flow hedges | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of sales | $ 9,900 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue, performance obligation timing | seven year | |
Material contract assets | $ 0 | |
Deferred contract costs | 0 | |
Contract liabilities | $ 13,400,000 | $ 21,800,000 |
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 | $ 5,300,000 | 6,200,000 |
Gift Cards | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 3,300,000 | $ 3,800,000 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,217,712 | $ 2,541,488 | $ 2,788,163 |
Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,201,957 | 2,536,852 | |
Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,755 | 4,636 | |
Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,802,481 | 2,033,021 | 2,199,031 |
Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 238,619 | 289,385 | 325,502 |
Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 123,177 | 167,775 | 211,694 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 53,435 | 51,307 | 51,936 |
Operating segments | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 949,965 | 1,174,507 | 1,314,348 |
Operating segments | Americas | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 947,353 | 1,172,200 | |
Operating segments | Americas | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,612 | 2,307 | |
Operating segments | Americas | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 769,581 | 936,875 | |
Operating segments | Americas | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 145,632 | 171,808 | |
Operating segments | Americas | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24,826 | 50,266 | |
Operating segments | Americas | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,926 | 15,558 | |
Operating segments | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 715,494 | 856,291 | 971,820 |
Operating segments | Europe | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 714,056 | 855,219 | |
Operating segments | Europe | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,438 | 1,072 | |
Operating segments | Europe | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 557,460 | 656,948 | |
Operating segments | Europe | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 47,308 | 67,264 | |
Operating segments | Europe | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 92,935 | 111,603 | |
Operating segments | Europe | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 17,791 | 20,476 | |
Operating segments | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 535,156 | 505,473 | 496,392 |
Operating segments | Asia | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 534,403 | 504,956 | |
Operating segments | Asia | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 753 | 517 | |
Operating segments | Asia | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 475,361 | 439,029 | |
Operating segments | Asia | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 45,679 | 50,313 | |
Operating segments | Asia | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,416 | 5,906 | |
Operating segments | Asia | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8,700 | 10,225 | |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 17,097 | 5,217 | $ 5,603 |
Corporate | Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,145 | 4,477 | |
Corporate | Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,952 | 740 | |
Corporate | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 79 | 169 | |
Corporate | Leathers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Corporate | Jewelry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Corporate | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 17,018 | $ 5,048 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Components and parts | $ 35,626 | $ 28,183 |
Work-in-process | 11,034 | 9,458 |
Finished goods | 405,618 | 339,981 |
Inventories | $ 452,278 | $ 377,622 |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Warranty liability activity | ||||
Beginning balance | $ 22,807 | $ 19,405 | $ 15,421 | |
Settlements in cash or kind | (18,073) | (15,197) | (15,177) | |
Warranties issued and adjustments to preexisting warranties | 18,361 | 18,599 | 19,161 | |
Ending balance | $ 23,095 | $ 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 | |||
FOSSIL, RELIC, and SKAGEN watch products | ||||
Product Information [Line Items] | ||||
Warranty period | 2 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. 28, 2019 | Dec. 29, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid royalties | $ 22,258 | $ 43,074 |
Prepaid taxes and tax receivables | 34,712 | 37,587 |
Other receivables | 10,581 | 7,092 |
Forward contracts | 3,327 | 9,232 |
Inventory returns | 22,402 | 23,509 |
Prepaid rent | 429 | 7,700 |
Property held for sale | 0 | 1,135 |
Short term deposits | 1,530 | 876 |
Other | 21,979 | 19,347 |
Prepaid expenses and other current assets | $ 117,218 | $ 149,552 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 616,413 | $ 636,522 |
Less accumulated depreciation and amortization | 464,913 | 453,319 |
Property, plant and equipment-net | 151,500 | 183,203 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 7,579 | 7,736 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 37,012 | 37,766 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 39,756 | 39,583 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 96,940 | 102,141 |
Computer equipment and software | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 235,757 | 243,490 |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | 192,114 | 198,703 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment - gross | $ 7,255 | $ 7,103 |
Intangible and Other Assets (In
Intangible and Other Assets (Intangible and Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Intangibles-subject to amortization: | ||
Gross Amount | $ 65,515 | $ 95,599 |
Accumulated Amortization | 49,951 | 59,759 |
Intangibles-not subject to amortization: | ||
Gross Amount | 11,315 | 32,427 |
Other assets: | ||
Gross Amount | 78,729 | 65,159 |
Gross Amount | 155,559 | 193,185 |
Accumulated Amortization | 49,951 | 59,759 |
Total intangible and other assets-net | 105,608 | 133,426 |
Other deposits | ||
Other assets: | ||
Gross Amount | 18,558 | 19,641 |
Deferred compensation plan assets | ||
Other assets: | ||
Gross Amount | 5,243 | 4,442 |
Deferred tax asset-net | ||
Other assets: | ||
Gross Amount | 38,275 | 23,695 |
Restricted cash | ||
Other assets: | ||
Gross Amount | 7,501 | 7,479 |
Tax receivable | ||
Other assets: | ||
Gross Amount | 6,507 | 7,060 |
Investments | ||
Other assets: | ||
Gross Amount | 500 | 500 |
Other | ||
Other assets: | ||
Gross Amount | $ 2,145 | 2,342 |
Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 3 years | |
Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 20 years | |
Trademarks | ||
Intangibles-subject to amortization: | ||
Useful Lives | 10 years | |
Gross Amount | $ 3,612 | 4,293 |
Accumulated Amortization | 2,993 | 3,859 |
Customer lists | ||
Intangibles-subject to amortization: | ||
Gross Amount | 52,517 | 52,635 |
Accumulated Amortization | $ 44,013 | 38,028 |
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 | $ 2,308 | 2,310 |
Accumulated Amortization | $ 1,937 | 2,154 |
Patents | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 3 years | |
Patents | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 20 years | |
Developed technology | ||
Intangibles-subject to amortization: | ||
Useful Lives | 7 years | |
Gross Amount | $ 2,193 | 36,100 |
Accumulated Amortization | $ 548 | 15,471 |
Trade name | ||
Intangibles-subject to amortization: | ||
Useful Lives | 6 years | |
Gross Amount | $ 4,502 | 0 |
Accumulated Amortization | 188 | 0 |
Other | ||
Intangibles-subject to amortization: | ||
Gross Amount | 383 | 261 |
Accumulated Amortization | $ 272 | $ 247 |
Other | Minimum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 7 years | |
Other | Maximum | ||
Intangibles-subject to amortization: | ||
Useful Lives | 20 years |
Intangible and Other Assets (Na
Intangible and Other Assets (Narrative) (Details) - USD ($) $ in Thousands | Jan. 16, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite intangible assets | $ 65,515 | $ 95,599 | ||
Amortization expense for intangible assets | 7,100 | 11,900 | $ 13,500 | |
Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite intangible assets | $ 4,502 | $ 0 | ||
Useful lives | 6 years | |||
Google, Inc. | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Proceeds from sale of intangible asset | $ 40,000 | |||
Reduction in intangible asset | 18,400 | |||
Gain on sale of intangible asset | $ 21,600 |
Intangible and Other Assets (Am
Intangible and Other Assets (Amortization Expense) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 6,833 |
2021 | 3,003 |
2022 | 2,127 |
2023 | 1,085 |
2024 | 1,068 |
Thereafter | $ 1,448 |
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. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019JPY (¥) | Dec. 28, 2019AUD ($) | Dec. 28, 2019MXN ($) | Dec. 28, 2019EUR (€) | Dec. 28, 2019CAD ($) | Dec. 28, 2019GBP (£) | |
Derivative [Line Items] | |||||||||
Cash flow hedge gain (loss) reclassified into earnings | $ 0 | $ 0 | $ 200,000 | ||||||
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 | $ 122,700,000 | € 106 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Canadian dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 31,300,000 | $ 41.4 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | British pound | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 17,700,000 | £ 13.6 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Japanese yen | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 12,400,000 | ¥ 1,320.5 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Mexican peso | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 8,400,000 | $ 167.8 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | Australian dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 4,600,000 | $ 6.7 | |||||||
Cash Flow Hedges | Designated as cash flow hedges | Forward contracts | U.S. dollar | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | $ 18,700,000 | ¥ 1,985 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management (Gains and Losses on Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ 6,060 | $ 18,044 | $ (24,810) |
Forward contracts | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | 6,060 | 18,044 | (25,088) |
Interest rate swaps | |||
Derivative [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes | $ 0 | $ 0 | $ 278 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management (Gains and Losses on Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Forward contracts | Cost of sales | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments designated as cash flow hedging instruments, Total gain (loss) reclassified from accumulated other comprehensive income (loss) | $ 9,939 | $ 0 | |
Designated as cash flow hedges | Forward contracts | Cost of sales | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments designated as cash flow hedging instruments, Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 9,939 | 0 | $ 0 |
Designated as cash flow hedges | Forward contracts | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments designated as cash flow hedging instruments, Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 1,720 | (2,629) | (4,297) |
Designated as cash flow hedges | Interest rate swaps | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments not designated as hedging instruments, Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 195 |
Designated as cash flow hedges | Interest rate swaps | Interest expense | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments designated as cash flow hedging instruments, Total gain (loss) reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (260) |
Not designated as hedging instruments | Forward contracts | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments not designated as hedging instruments, Total gain (loss) recognized in income | (88) | 244 | (652) |
Not designated as hedging instruments | Interest rate swaps | Other income (expense)-net | |||
Effective portion of gains and losses on derivative instruments | |||
Derivative instruments not designated as hedging instruments, Total gain (loss) recognized in income | $ 0 | $ 67 | $ 0 |
Derivatives and Risk Manageme_6
Derivatives and Risk Management (Fair Value Amounts for Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Fair value of derivative instruments | ||
Asset Derivatives | $ 3,348 | $ 9,685 |
Liability Derivatives | 1,824 | 730 |
Forward contracts | Designated as cash flow hedges | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 3,327 | 9,217 |
Forward contracts | Designated as cash flow hedges | Intangible and other assets-net | ||
Fair value of derivative instruments | ||
Asset Derivatives | 21 | 453 |
Forward contracts | Designated as cash flow hedges | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | 1,657 | 660 |
Forward contracts | Designated as cash flow hedges | Other long-term liabilities | ||
Fair value of derivative instruments | ||
Liability Derivatives | 104 | 70 |
Forward contracts | Not designated as hedging instruments | Prepaid expenses and other current assets | ||
Fair value of derivative instruments | ||
Asset Derivatives | 0 | 15 |
Forward contracts | Not designated as hedging instruments | Accrued expenses-other | ||
Fair value of derivative instruments | ||
Liability Derivatives | $ 63 | $ 0 |
Derivatives and Risk Manageme_7
Derivatives and Risk Management (Non-designated Hedges) (Details) - Not designated as hedging instruments - Forward contracts R in Millions, $ in Millions | Dec. 28, 2019USD ($) | Dec. 28, 2019ZAR (R) | Dec. 29, 2018USD ($) | Dec. 29, 2018ZAR (R) |
Derivative [Line Items] | ||||
Fair value of designated forward contracts | $ | $ 1.5 | $ 1.2 | ||
Hedged amount | R | R 22.6 | R 17.5 |
Derivatives and Risk Manageme_8
Derivatives and Risk Management (Effect of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative [Line Items] | |||
Cost of Sales | $ 1,118,274 | $ 1,201,351 | $ 1,429,324 |
Other Income (Expense)-net | 26,984 | (38) | $ 13,736 |
Gain expected to be reclassified into earnings within the next twelve months | 1,500 | ||
Forward contracts | Cost of Sales | |||
Derivative [Line Items] | |||
Total gain (loss) reclassified from other comprehensive income (loss) | 9,939 | 0 | |
Forward contracts | Other Operating Income (Expense) | |||
Derivative [Line Items] | |||
Total gain (loss) reclassified from other comprehensive income (loss) | $ 1,720 | $ (2,629) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Assets: | ||
Forward contracts | $ 3,348 | $ 9,685 |
Investment in publicly traded mutual funds | 5,243 | 4,442 |
Total | 8,591 | 14,127 |
Liabilities: | ||
Contingent consideration | 1,141 | 2,174 |
Forward contracts | 1,824 | 730 |
Total | 2,965 | 2,904 |
Level 1 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Investment in publicly traded mutual funds | 5,243 | 4,442 |
Total | 5,243 | 4,442 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Forward contracts | 3,348 | 9,685 |
Investment in publicly traded mutual funds | 0 | 0 |
Total | 3,348 | 9,685 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contracts | 1,824 | 730 |
Total | 1,824 | 730 |
Level 3 | ||
Assets: | ||
Forward contracts | 0 | 0 |
Investment in publicly traded mutual funds | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration | 1,141 | 2,174 |
Forward contracts | 0 | 0 |
Total | $ 1,141 | $ 2,174 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating lease right-of-use assets | $ 288,166 | ||
Property, plant and equipment-net | 151,500 | $ 183,203 | |
Contingent consideration | 1,141 | 2,174 | |
Present Value of Remaining Purchase Price | 1,100 | ||
Trade Names, SKAGEN | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | 21,100 | 27,300 | |
Indefinite-lived intangible assets (excluding goodwill), fair value disclosure | 4,500 | 21,100 | |
Impairment charges | 16,600 | 6,200 | $ 28,300 |
Specific company-owned stores | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating lease right-of-use assets | 18,300 | ||
Property, plant and equipment-net | 1,800 | 3,800 | |
Operating lease right-of-use asset | 8,700 | ||
Property plant and equipment, fair value | 500 | 200 | |
Impairment charge | 10,900 | 3,800 | |
Key money amount not recoverable | 200 | ||
Specific company-owned stores | Selling, general and administrative | Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 5,000 | ||
Specific company-owned stores | Selling, general and administrative | Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 3,400 | ||
Specific company-owned stores | Selling, general and administrative | Asia | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 200 | ||
Specific company-owned stores | Restructuring charges | Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 1,900 | ||
Specific company-owned stores | Restructuring charges | Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | 400 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | $ 1,141 | $ 2,174 | |
Level 3 | Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability measurement input | 0.14 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 202.5 | $ 392.7 |
Less current portion | 25.2 | 125.4 |
Long-term debt | 177.3 | 267.3 |
Debt issuance costs | 14.5 | |
U.S. revolving line of credit | ||
Debt Instrument [Line Items] | ||
Total debt | 20.1 | 0 |
Debt issuance costs | 7.9 | |
U.S. term loan | ||
Debt Instrument [Line Items] | ||
US term loan | 182.2 | 392.3 |
Debt issuance costs | 6.6 | 7.7 |
Other international | ||
Debt Instrument [Line Items] | ||
Other international | $ 0.2 | $ 0.4 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Feb. 20, 2020 | Sep. 26, 2019USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Jun. 23, 2016ZAR (R) |
Debt Instrument | ||||||
Aggregate outstanding principal amount | $ 202,500,000 | $ 392,700,000 | ||||
Debt issuance costs | 14,500,000 | |||||
Original issue discount | 11,200,000 | |||||
Debt discount and debt issuance costs amortization | $ 4,621,000 | 3,714,000 | $ 3,724,000 | |||
Debt instrument, face amount | R | R 25,000,000 | |||||
Debt instrument, interest rate, effective percentage | 10.00% | |||||
U.S. Credit Facility | ||||||
Debt Instrument | ||||||
Aggregate principal amount available | $ 160,000,000 | |||||
European Credit Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing amount | 70,000,000 | |||||
Subfacility for swingline loans | 7,000,000 | |||||
Canadian Credit Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing amount | 5,000,000 | |||||
Letter of Credit | ||||||
Debt Instrument | ||||||
Subfacility for letters of credit | 45,000,000 | |||||
Revolving Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing amount | 275,000,000 | |||||
Aggregate principal amount available | $ 30,000,000 | |||||
Line of credit facility, commitment fee percentage | 15.00% | |||||
Line of credit facility, issuance fee percentage | 0.125% | |||||
Line of credit facility, annual authorized prepayment amount | $ 5,000,000 | |||||
Increments in excess of minimum principal amount | $ 1,000,000 | |||||
Debt instrument covenant, fixed charge coverage ratio | 1 | |||||
Line of credit facility, increase in maximum borrowing capacity | $ 75,000,000 | |||||
Line of credit facility, increase in maximum borrowing capacity minimum increment | 10,000,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | |||||
Revolving Facility | Minimum | ||||||
Debt Instrument | ||||||
Line of credit facility, commitment fee percentage | 0.25% | |||||
Revolving Facility | Maximum | ||||||
Debt Instrument | ||||||
Line of credit facility, commitment fee percentage | 0.375% | |||||
Revolving Facility | LIBO, CDOR, HIBOR | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 1.25% | |||||
Revolving Facility | LIBO, CDOR, HIBOR | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 1.75% | |||||
Revolving Facility | Alternate Base Rate and Canadian Prime Rate | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 0.25% | |||||
Revolving Facility | Alternate Base Rate and Canadian Prime Rate | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 0.75% | |||||
Term Loan Facility | ||||||
Debt Instrument | ||||||
Aggregate outstanding principal amount | $ 200,000,000 | |||||
Original issue discount | $ 12,000,000 | |||||
Ratio of indebtedness to net capital | 1.50 | |||||
Net borrowings under Term Loan | $ 200,000,000 | |||||
Term Loan Facility | LIBOR | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 6.50% | |||||
Term Loan Facility | Alternate Base Rate | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 5.50% | |||||
Hong Kong Credit Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing amount | $ 30,000,000 | |||||
French Credit Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing amount | 10,000,000 | |||||
Subfacility for swingline loans | 1,000,000 | |||||
Revolving Facility | ||||||
Debt Instrument | ||||||
Aggregate outstanding principal amount | 20,100,000 | 0 | ||||
Debt issuance costs | 7,900,000 | |||||
Net payments | 28,000,000 | |||||
Remaining borrowing capacity | 120,100,000 | |||||
Interest expense incurred | 900,000 | |||||
U.S. term loan | ||||||
Debt Instrument | ||||||
Debt issuance costs | 6,600,000 | 7,700,000 | ||||
Original issue discount | 11,200,000 | |||||
Interest expense incurred | 22,600,000 | |||||
Second A&R Credit Agreement | ||||||
Debt Instrument | ||||||
Aggregate outstanding principal amount | $ 275,800,000 | |||||
Debt issuance costs | 3,000,000 | |||||
Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 60.00% | |||||
Notes Payable to Banks | ||||||
Debt Instrument | ||||||
Short-term debt | $ 200,000 | $ 400,000 | ||||
Foreign Accounts Receivable | Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85.00% | |||||
United States Accounts Receivable | Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85.00% | |||||
United States Credit Card Accounts Receivable | Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90.00% | |||||
French Accounts Receivable | Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 85.00% | |||||
Lower Of Cost Or Market Value | United States Finished Goods Inventory | Second A&R Credit Agreement | Revolving Facility | ||||||
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 | Revolving Facility | ||||||
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 | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90.00% | |||||
Net Liquidation Value | Foreign Finished Goods Inventory | Second A&R Credit Agreement | Revolving Facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity as a percentage of accounts receivable | 90.00% | |||||
Debt Covenant Period One | Term Loan Facility | ||||||
Debt Instrument | ||||||
Amortization of original principal amount percentage | 2.50% | |||||
Prepayment fee percentage | 2.00% | |||||
Debt Covenant Period Two | Term Loan Facility | ||||||
Debt Instrument | ||||||
Amortization of original principal amount percentage | 3.75% | |||||
Prepayment fee percentage | 1.00% | |||||
Subsequent Event | Term Loan Facility | LIBOR | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 8.00% | |||||
Subsequent Event | Term Loan Facility | Alternate Base Rate | ||||||
Debt Instrument | ||||||
Basis spread on base rate (as a percent) | 7.00% | |||||
Subsequent Event | Debt Covenant Period One | Term Loan Facility | ||||||
Debt Instrument | ||||||
Ratio of indebtedness to net capital | 2.75 | |||||
Subsequent Event | Debt Covenant Period Two | Term Loan Facility | ||||||
Debt Instrument | ||||||
Ratio of indebtedness to net capital | 2.25 | |||||
Subsequent Event | Debt Covenant Period Three | Term Loan Facility | ||||||
Debt Instrument | ||||||
Ratio of indebtedness to net capital | 1.50 |
Debt (Schedule of Maturity of D
Debt (Schedule of Maturity of Debt) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Less than 1 Year | $ 25.2 | |
Year 2 | 22.5 | |
Year 3 | 30 | |
Year 4 | 22.5 | |
Year 5 | 128 | |
Principal amounts repayable | 228.2 | |
Debt issuance costs | (14.5) | |
Original issue discount | (11.2) | |
Total debt | $ 202.5 | $ 392.7 |
Other Income (Expense)_Net (Det
Other Income (Expense)—Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 2,075 | $ 2,605 | $ 4,729 |
Contingent consideration remeasurement | 601 | 3,381 | 0 |
Gain on interest rate swap | 0 | 0 | 195 |
Equity in losses of unconsolidated investment | (371) | (558) | (460) |
Extinguishment of debt | (3,044) | (718) | (1,029) |
Gain on asset divestitures | 23,134 | 0 | 1,750 |
Net currency (losses) gains | 3,932 | (5,820) | 7,849 |
Other net gains | 657 | 1,072 | 702 |
Other income (expense) - net | $ 26,984 | $ (38) | $ 13,736 |
Taxes (Components of Consolidat
Taxes (Components of Consolidated Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred income tax assets: | ||
Bad debt allowance | $ 2,048 | $ 1,974 |
Returns allowance | 3,990 | 4,935 |
Inventory | 6,856 | 4,519 |
Warranty liabilities | 3,465 | 3,317 |
Markdown allowance | 3,480 | 2,800 |
Compensation | 11,998 | 18,772 |
Accrued liabilities | 6,672 | 5,903 |
Deferred rent | 0 | 7,996 |
Deferred income | 3,582 | 5,706 |
Unrealized exchange gains (losses) | 3,816 | 637 |
State income tax and interest on tax contingencies | 887 | 1,189 |
Fixed assets | 220 | |
Fixed assets | (8,009) | |
Trade names and customer lists | 4,345 | 1,703 |
Goodwill | 14,947 | 17,957 |
Foreign accruals | 10,446 | 8,528 |
Loss carryforwards | 32,158 | 31,582 |
Tax credit carryforwards | 4,281 | 512 |
Capitalized R&D | 8,362 | 2,546 |
Interest disallowance | 16,683 | 9,642 |
Lease liabilities | 82,511 | |
Deferred income tax assets total | 220,747 | 122,209 |
Deferred income tax liabilities: | ||
Tenant allowance | (801) | 0 |
Other intangibles | (235) | (4,562) |
Undistributed earnings of certain foreign subsidiaries | (329) | (541) |
Right-of-use assets | (65,070) | |
Deferred Tax Liabilities, Other | (45) | (32) |
Deferred income tax liabilities total | (66,480) | (5,135) |
Valuation allowance | (118,089) | (95,818) |
Net deferred income tax assets | 36,178 | 21,256 |
Net deferred income tax assets | 38,275 | 23,695 |
Net deferred income tax liabilities | $ (2,097) | $ (2,439) |
Taxes (Narratives) (Details)
Taxes (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income tax contingency | |||
Deferred tax assets, loss carryforwards | $ 32,158 | $ 31,582 | |
Deferred income tax expense (benefit) | $ (9,436) | $ 1,696 | $ (49,380) |
Effective tax rate | (59.60%) | 104.70% | (4.40%) |
Income tax effects allocated directly to equity | $ 6,600 | ||
Valuation allowance | 118,089 | $ 95,818 | |
Undistributed earnings of certain foreign subsidiaries | 279,100 | ||
Tax Cuts And Jobs Act Of 2017, existing undistributed accumulated earnings of foreign subsidiary | 481,600 | ||
Unrecognized tax benefits that would favorably impact the effective tax rate in future periods if recognized | 35,700 | 33,500 | $ 33,000 |
Unrecognized tax benefits excluding interest and penalties | 11,400 | ||
Accrued income tax-related interest | 4,800 | 3,700 | |
Penalties accrued | 1,000 | 1,000 | |
Accrued interest (benefit) expense | 1,200 | $ 800 | $ 500 |
Foreign income tax | |||
Income tax contingency | |||
Deferred tax assets, loss carryforwards | 27,800 | ||
Increase (decrease) in deferred tax asset valuation allowance | (6,200) | ||
State income tax | |||
Income tax contingency | |||
Deferred tax assets, loss carryforwards | 4,300 | ||
U.S. income tax | |||
Income tax contingency | |||
Increase (decrease) in deferred tax asset valuation allowance | 28,500 | ||
United States | |||
Income tax contingency | |||
Valuation allowance | 85,000 | ||
Foreign Plan | |||
Income tax contingency | |||
Valuation allowance | $ 33,100 |
Taxes (Operating Loss Carryforw
Taxes (Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Foreign income tax | |
Operating loss carryforwards | |
Total loss carryforwards | $ 118,597 |
Foreign income tax | Expires 2020 through 2024 | |
Operating loss carryforwards | |
Total loss carryforwards | 18,923 |
Foreign income tax | Expires 2025 through 2029 | |
Operating loss carryforwards | |
Total loss carryforwards | 14,931 |
Foreign income tax | Expires 2030 through 2034 | |
Operating loss carryforwards | |
Total loss carryforwards | 0 |
Foreign income tax | Expires 2035 through 2039 | |
Operating loss carryforwards | |
Total loss carryforwards | 74,315 |
Foreign income tax | Indefinite | |
Operating loss carryforwards | |
Total loss carryforwards | 10,428 |
State income tax | |
Operating loss carryforwards | |
Total loss carryforwards | 85,946 |
State income tax | Expires 2020 through 2024 | |
Operating loss carryforwards | |
Total loss carryforwards | 632 |
State income tax | Expires 2025 through 2029 | |
Operating loss carryforwards | |
Total loss carryforwards | 9,199 |
State income tax | Expires 2030 through 2034 | |
Operating loss carryforwards | |
Total loss carryforwards | 3,096 |
State income tax | Expires 2035 through 2039 | |
Operating loss carryforwards | |
Total loss carryforwards | 46,749 |
State income tax | Indefinite | |
Operating loss carryforwards | |
Total loss carryforwards | $ 26,270 |
Taxes (Income Before Income Tax
Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (142,141) | $ (102,810) | $ (517,227) |
Non-U.S | 110,810 | 122,980 | 63,473 |
Income (loss) before income taxes | $ (31,331) | $ 20,170 | $ (453,754) |
Taxes (Provision for Income Tax
Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current provision: | |||
U.S. federal | $ 2,338 | $ (14,386) | $ 30,817 |
Non-U.S | 28,109 | 35,854 | 40,423 |
State and local | (2,330) | (2,056) | (2,055) |
Total current | 28,117 | 19,412 | 69,185 |
Deferred provision (benefit): | |||
U.S. federal | 0 | 0 | (45,990) |
Non-U.S | (9,436) | 1,696 | (3,770) |
State and local | 0 | 0 | 380 |
Total deferred | (9,436) | 1,696 | (49,380) |
Provision for income taxes | $ 18,681 | $ 21,108 | $ 19,805 |
Taxes (Reconciliation of U.S. F
Taxes (Reconciliation of U.S. Federal Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21.00% | 21.00% | 35.00% |
Permanent differences | (2.00%) | (0.20%) | (0.10%) |
State, net of federal tax benefit | 17.60% | (3.80%) | 1.00% |
Foreign rate differential | 12.80% | (12.30%) | 3.70% |
Withholding taxes | (11.10%) | 16.30% | 0.00% |
GILTI Tax-net of foreign tax credits | (24.20%) | 11.80% | 0.00% |
U.S. tax on foreign income-net of foreign tax credits | 0.30% | 6.40% | (1.70%) |
Income tax contingencies | 3.20% | (5.00%) | (0.10%) |
Valuation allowances | (53.20%) | 65.00% | (12.50%) |
Repatriation tax - net impact | 0 | 0.059 | (0.074) |
Deficiencies on employee stock awards | (10.90%) | 10.10% | (0.90%) |
Non-deductible goodwill impairment | 0.00% | 0.00% | (15.20%) |
Tax reform rate reduction impact on deferred tax assets | 0.00% | (15.80%) | (6.20%) |
Foreign deferred tax rate change | (4.50%) | 0.00% | 0.00% |
Non deductible foreign equity awards | (3.20%) | 5.30% | (0.50%) |
Non deductible officer compensation | (3.70%) | 0.00% | 0.00% |
Tax exempt foreign capital gain income | 6.30% | 0.00% | 0.00% |
Deferred adjustment | (8.00%) | 0.00% | 0.00% |
Other | 0.00% | 0.00% | 0.50% |
Provision for income taxes | (59.60%) | 104.70% | (4.40%) |
Taxes (Reconciliation of Unreco
Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 39,909 | $ 35,355 | $ 23,399 |
Gross increases—tax positions in prior years | 6,639 | 7,183 | 2,104 |
Gross decreases—tax positions in prior years | (4) | (124) | (845) |
Gross increases—tax positions in current year | 184 | 576 | 13,444 |
Settlements | (1,901) | 0 | (81) |
Lapse in statute of limitations | (8,912) | (2,980) | (2,706) |
Change due to currency revaluation | (239) | (101) | 40 |
Balance at end of year | $ 35,676 | $ 39,909 | $ 35,355 |
Leases (Details)
Leases (Details) | Dec. 28, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 117,932 |
Amortization of ROU assets | 475 |
Interest on lease liabilities | 38 |
Short-term lease cost | 1,302 |
Variable lease cost | $ 36,476 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Assets [Abstract] | |
Operating lease right-of-use assets | $ 288,166 |
Property, plant and equipment - net of accumulated depreciation of $4,015 | 5,918 |
Accumulated depreciation | 4,015 |
Current: | |
Current operating lease liabilities | 68,838 |
Short-term and current portion of long-term debt | 1,011 |
Noncurrent: | |
Long-term operating lease liabilities | 288,689 |
Long-term debt | $ 1,468 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Dec. 28, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, Operating leases | 6 years 1 month 6 days |
Weighted-average remaining lease term, Finance leases | 2 years 3 months 18 days |
Weighted-average discount rate, Operating leases | 13.90% |
Weighted-average discount rate, Finance leases | 1.20% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 116,778 |
2021 | 94,795 |
2022 | 81,536 |
2023 | 64,582 |
2024 | 45,846 |
Thereafter | 153,255 |
Total lease payments | 556,792 |
Less: Interest | 199,265 |
Total lease obligations | 357,527 |
Finance Leases | |
2020 | 1,042 |
2021 | 978 |
2022 | 488 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | 2,508 |
Less: Interest | 30 |
Total lease obligations | $ 2,478 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liabilities, Prior Year (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Operating Leases | |
2019 | $ 135,025 |
2020 | 105,668 |
2021 | 84,230 |
2022 | 73,928 |
2023 | 61,710 |
Thereafter | 186,201 |
Total lease payments | 646,762 |
Finance Leases | |
2019 | 951 |
2020 | 947 |
2021 | 947 |
2022 | 696 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 3,541 |
Less: Interest | 84 |
Finance lease obligations | $ 3,457 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 116,846 |
Operating cash flows from finance leases | 38 |
Financing cash flows from finance leases | 945 |
Leased assets obtained in exchange for new finance lease liabilities | 83 |
Leased assets obtained in exchange for new operating lease liabilities | $ 41,510 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Commitments [Line Items] | |||
Royalty expense | $ 161.8 | $ 173 | $ 190 |
Purchase obligations | $ 333.7 | ||
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. 28, 2019USD ($) |
Minimum Royalty Commitments | |
2020 | $ 133,129 |
2021 | 18,252 |
2022 | 18,912 |
2023 | 19,573 |
2024 | 19,035 |
Thereafter | 24,751 |
Total | $ 233,652 |
Commitments and Contingencies_4
Commitments and Contingencies (Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligation | $ 11,862 | $ 13,086 |
Liabilities incurred during the period | 563 | 166 |
Liabilities settled during the period | (681) | (1,150) |
Accretion expense | 366 | 366 |
Currency translation | (17) | (606) |
Ending asset retirement obligations | $ 12,093 | $ 11,862 |
Stockholders' Equity (Common an
Stockholders' Equity (Common and Preferred Stock) (Details) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
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 outstanding (in shares) | 50,516,477 | 49,517,817 |
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) shares in Millions, $ in Millions | 85 Months Ended |
Dec. 28, 2019USD ($)shares | |
Stockholders' Equity Note [Abstract] | |
Common stock repurchased | $ 1,200 |
Number of shares repurchased (in shares) | shares | 11.8 |
Authorizations remaining | $ 30 |
Stockholders' Equity (Noncontro
Stockholders' Equity (Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |||
Present value of remaining purchase price | $ 1,100 | ||
Payment for noncontrolling interest | 1,169 | $ 1,947 | $ 0 |
Variable consideration in accrued expense-other | 500 | ||
Variable consideration in other long-term liabilities | $ 600 |
Employee Benefit Plans (Deferre
Employee Benefit Plans (Deferred Compensation and Savings Plans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [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) | 8.00% | ||
Employer's matching contributions under the plan | $ 3,200,000 | $ 2,800,000 | $ 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 | 5,200,000 | 4,400,000 | |
Liability related to participants' invested balances recorded in accrued expenses other | $ 4,600,000 | $ 3,900,000 |
Employee Benefit Plans (Stock-B
Employee Benefit Plans (Stock-Based Compensation Plans) (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 18.7 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 4 months 24 days |
Employee Benefit Plans (Long-Te
Employee Benefit Plans (Long-Term Incentive Plans) (Details) - USD ($) | May 23, 2018 | Dec. 28, 2019 | 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 (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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Shares | ||||
Outstanding at beginning of period (in shares) | 1,930 | 2,177 | 2,287 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (13) | (21) | (13) | |
Forfeited or expired (in shares) | (1,408) | (226) | (97) | |
Outstanding at end of period (in shares) | 509 | 1,930 | 2,177 | 2,287 |
Exercisable (in shares) | 509 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 49.25 | $ 50.01 | $ 50.58 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 13.65 | 14.46 | 13.65 | |
Forfeited or expired (in dollars per share) | 39.84 | 59.58 | 67.99 | |
Outstanding at end of period (in dollars per share) | 76.13 | $ 49.25 | $ 50.01 | $ 50.58 |
Exercisable (in dollars per share) | $ 76.13 | |||
Weighted-Average Remaining Contractual Term (Years) | ||||
Outstanding | 2 years 6 months | 1 year 3 months 18 days | 5 years 3 months 18 days | 6 years 2 months 12 days |
Exercisable | 2 years 6 months | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 0 | $ 37 | $ 0 | $ 627 |
Exercised | 18 | $ 37 | $ 35 | |
Exercisable | $ 0 |
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. 28, 2019$ / sharesshares | |
Stock options | |
Stock-based compensation plans disclosures | |
Stock options outstanding, number of shares (in shares) | shares | 184 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 95.63 |
Stock options outstanding, weighted-average remaining contractual term | 1 year 6 months |
Stock options exercisable, number of shares | shares | 184 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 95.63 |
Stock appreciation rights | |
Stock-based compensation plans disclosures | |
Stock appreciation rights outstanding, number of shares | shares | 325 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 65.08 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 3 years |
Stock appreciation rights exercisable, number of shares | shares | 325 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 65.08 |
$29.49 - $47.99 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (in dollars per share) | 29.49 |
High range of exercise price range (in dollars per share) | $ 47.99 |
Stock options outstanding, number of shares (in shares) | shares | 33 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 38.40 |
Stock options outstanding, weighted-average remaining contractual term | 2 months 12 days |
Stock options exercisable, number of shares | shares | 33 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 38.40 |
$29.49 - $47.99 | 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 (in dollars per share) | 29.49 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit (in dollars per share) | $ 47.99 |
Stock appreciation rights outstanding, number of shares | shares | 182 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 42.30 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 3 years 9 months 18 days |
Stock appreciation rights exercisable, number of shares | shares | 182 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 42.30 |
$55.04 - $83.83 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (in dollars per share) | 55.04 |
High range of exercise price range (in dollars per share) | $ 83.83 |
Stock options outstanding, number of shares (in shares) | shares | 64 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 81.40 |
Stock options outstanding, weighted-average remaining contractual term | 1 year 2 months 12 days |
Stock options exercisable, number of shares | shares | 64 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 81.40 |
$55.04 - $83.83 | 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 (in dollars per share) | 55.04 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit (in dollars per share) | $ 83.83 |
Stock appreciation rights outstanding, number of shares | shares | 77 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 78.92 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 2 years 6 months |
Stock appreciation rights exercisable, number of shares | shares | 77 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 78.92 |
$95.91 - $131.46 | Stock options | |
Stock-based compensation plans disclosures | |
Low range of exercise price range (in dollars per share) | 95.91 |
High range of exercise price range (in dollars per share) | $ 131.46 |
Stock options outstanding, number of shares (in shares) | shares | 87 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ 128.04 |
Stock options outstanding, weighted-average remaining contractual term | 2 years 1 month 6 days |
Stock options exercisable, number of shares | shares | 87 |
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ 128.04 |
$95.91 - $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 (in dollars per share) | 95.95 |
Share based compensation shares authorized under equity plans other than options exercise price range upper range limit (in dollars per share) | $ 131.46 |
Stock appreciation rights outstanding, number of shares | shares | 66 |
Stock appreciation rights outstanding, weighted- average exercise price (in dollars per share) | $ 111.90 |
Stock appreciation rights outstanding, weighted- average remaining contractual term | 1 year 7 months 6 days |
Stock appreciation rights exercisable, number of shares | shares | 66 |
Stock appreciation rights exercisable, weighted- average exercise price (in dollars per share) | $ 111.90 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Number of Shares | |||
Nonvested at beginning of period (in shares) | 3,011 | 2,981 | 1,405 |
Granted (in shares) | 1,008 | 1,456 | 2,381 |
Vested (in shares) | (1,293) | (1,040) | (479) |
Forfeited (in shares) | (397) | (386) | (326) |
Nonvested at end of period (in shares) | 2,329 | 3,011 | 2,981 |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested at beginning of period (in dollars per share) | $ 17.86 | $ 20.84 | $ 40.41 |
Granted (in dollars per share) | 13.01 | 14.35 | 14.81 |
Vested (in dollars per share) | 17.92 | 25.21 | 44.79 |
Forfeited (in dollars per share) | 21.49 | 19.87 | 25.62 |
Nonvested at end of period (in dollars per share) | $ 15.16 | $ 17.86 | $ 20.84 |
Employee Benefit Plans (Other R
Employee Benefit Plans (Other Retirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Switzerland | |||
Employee Benefit Plans | |||
Pension gain (expense) | $ 0.7 | $ (0.6) | $ (1.8) |
Employee benefit plan obligations included in other long-term liabilities | 17 | 9.5 | |
France | |||
Employee Benefit Plans | |||
Pension gain (expense) | (0.4) | 0.4 | 0.7 |
Employee benefit plan obligations included in other long-term liabilities | 1.2 | 0.8 | |
Restricted Stock and Restricted Stock Units | |||
Employee Benefit Plans | |||
Fair value of restricted stock and restricted stock units, vested | $ 17.6 | $ 16.6 | $ 6.3 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash paid during the year for: | |||
Interest | $ 25,310 | $ 38,855 | $ 43,245 |
Income taxes, net of refunds | 18,025 | 28,460 | 36,571 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Additions to property, plant and equipment included in accounts payable | 2,060 | 3,868 | 2,300 |
Additions to property, plant and equipment acquired under finance leases | $ 83 | $ 0 | $ 0 |
Supplemental Disclosure for A_3
Supplemental Disclosure for Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 588,631 | $ 580,947 | $ 1,015,438 |
Other comprehensive income (loss) before reclassifications | (4,261) | 11,432 | 5,609 |
Tax (expense) benefit | (4) | (490) | 9,184 |
Amounts reclassed from accumulated other comprehensive income (loss) | 12,688 | (4,283) | (1,290) |
Tax (expense) benefit | (1,029) | 1,654 | (3,072) |
Reclassification of certain tax effects to retained earnings | (1,993) | ||
Total other comprehensive income (loss) | (15,924) | 13,571 | 19,155 |
Balance at end of period | 503,841 | 588,631 | 580,947 |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (74,868) | (64,499) | (101,867) |
Other comprehensive income (loss) before reclassifications | (5,606) | (10,369) | 37,368 |
Tax (expense) benefit | 0 | 0 | 0 |
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) | (5,606) | (10,369) | 37,368 |
Balance at end of period | (80,474) | (74,868) | (64,499) |
Cash Flow Hedges | Forward contracts | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 8,582 | (10,098) | 10,693 |
Other comprehensive income (loss) before reclassifications | 6,510 | 18,044 | (34,873) |
Tax (expense) benefit | (450) | 0 | 9,785 |
Amounts reclassed from accumulated other comprehensive income (loss) | 12,688 | (4,283) | (1,076) |
Tax (expense) benefit | (1,029) | 1,654 | (3,221) |
Reclassification of certain tax effects to retained earnings | (1,993) | ||
Total other comprehensive income (loss) | (5,599) | 20,673 | (20,791) |
Balance at end of period | 2,983 | 8,582 | (10,098) |
Cash Flow Hedges | Interest rate swaps | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 0 | (343) | |
Other comprehensive income (loss) before reclassifications | 437 | ||
Tax (expense) benefit | (159) | ||
Amounts reclassed from accumulated other comprehensive income (loss) | (214) | ||
Tax (expense) benefit | 149 | ||
Total other comprehensive income (loss) | 343 | ||
Balance at end of period | 0 | ||
Pension Plan | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 1,595 | (1,672) | (3,907) |
Other comprehensive income (loss) before reclassifications | (5,165) | 3,757 | 2,677 |
Tax (expense) benefit | 446 | (490) | (442) |
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) | (4,719) | 3,267 | 2,235 |
Balance at end of period | (3,124) | 1,595 | (1,672) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (64,691) | (76,269) | (95,424) |
Total other comprehensive income (loss) | (15,924) | 13,571 | 19,155 |
Balance at end of period | $ (80,615) | $ (64,691) | $ (76,269) |
Major Customer, Segment and G_3
Major Customer, Segment and Geographic Information (Information by Operating Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Summary information by operating segment | |||
Net Sales | $ 2,217,712 | $ 2,541,488 | $ 2,788,163 |
Operating Income (Loss) | (28,383) | 62,711 | (424,276) |
Depreciation and Amortization | 53,442 | 67,079 | 81,577 |
Long-term Assets | 545,274 | 316,629 | 367,384 |
Total Assets | 1,604,732 | 1,575,198 | 1,658,372 |
Operating segments | Americas | |||
Summary information by operating segment | |||
Net Sales | 949,965 | 1,174,507 | 1,314,348 |
Operating Income (Loss) | 66,703 | 185,094 | (47,836) |
Depreciation and Amortization | 15,104 | 16,542 | 21,214 |
Long-term Assets | 164,097 | 61,914 | 81,444 |
Total Assets | 474,428 | 393,273 | 463,175 |
Operating segments | Europe | |||
Summary information by operating segment | |||
Net Sales | 715,494 | 856,291 | 971,820 |
Operating Income (Loss) | 88,323 | 129,610 | 32,871 |
Depreciation and Amortization | 15,099 | 18,933 | 21,368 |
Long-term Assets | 171,952 | 99,253 | 113,621 |
Total Assets | 406,603 | 353,797 | 471,375 |
Operating segments | Asia | |||
Summary information by operating segment | |||
Net Sales | 535,156 | 505,473 | 496,392 |
Operating Income (Loss) | 101,209 | 87,515 | (12,490) |
Depreciation and Amortization | 6,724 | 8,016 | 10,798 |
Long-term Assets | 89,434 | 29,990 | 33,160 |
Total Assets | 298,034 | 173,666 | 216,660 |
Corporate | |||
Summary information by operating segment | |||
Net Sales | 17,097 | 5,217 | 5,603 |
Operating Income (Loss) | (284,618) | (339,508) | (396,821) |
Depreciation and Amortization | 16,515 | 23,588 | 28,197 |
Long-term Assets | 119,791 | 125,472 | 139,159 |
Total Assets | $ 425,667 | $ 654,462 | $ 507,162 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net sales for each class of similar products | |||
Percentage of Total | 100.00% | 100.00% | 100.00% |
Net sales | $ 2,217,712 | $ 2,541,488 | $ 2,788,163 |
Watches | |||
Net sales for each class of similar products | |||
Percentage of Total | 81.30% | 80.00% | 78.90% |
Net sales | $ 1,802,481 | $ 2,033,021 | $ 2,199,031 |
Leathers | |||
Net sales for each class of similar products | |||
Percentage of Total | 10.80% | 11.40% | 11.70% |
Net sales | $ 238,619 | $ 289,385 | $ 325,502 |
Jewelry | |||
Net sales for each class of similar products | |||
Percentage of Total | 5.60% | 6.60% | 7.60% |
Net sales | $ 123,177 | $ 167,775 | $ 211,694 |
Other | |||
Net sales for each class of similar products | |||
Percentage of Total | 2.30% | 2.00% | 1.80% |
Net sales | $ 53,435 | $ 51,307 | $ 51,936 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Summary information by operating segment | |||
Net sales | $ 2,217,712 | $ 2,541,488 | $ 2,788,163 |
Long-term Assets | 545,274 | 316,629 | 367,384 |
United States | |||
Summary information by operating segment | |||
Net sales | 819,825 | 1,017,919 | 1,157,568 |
Long-term Assets | 239,032 | 159,062 | 189,209 |
Europe | |||
Summary information by operating segment | |||
Net sales | 718,216 | 857,972 | 974,198 |
Long-term Assets | 184,507 | 111,964 | 127,344 |
Asia | |||
Summary information by operating segment | |||
Net sales | 537,503 | 507,523 | 497,816 |
Long-term Assets | 99,565 | 36,945 | 40,874 |
All other international | |||
Summary information by operating segment | |||
Net sales | 142,168 | 158,074 | 158,581 |
Long-term Assets | 22,170 | 8,658 | 9,957 |
Germany | |||
Summary information by operating segment | |||
Net sales | $ 310,100 | $ 359,900 | $ 406,200 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 48 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 29,636 | $ 46,630 | $ 48,171 | |
New World Fossil 1.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 10,805 | $ 46,630 | $ 48,171 | $ 133,400 |
New World Fossil 2.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 18,831 | |||
Estimated total restructuring charges | $ 130,000 | $ 130,000 |
Restructuring (Liability Incurr
Restructuring (Liability Incurred for Restructuring Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | 48 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 29,636 | $ 46,630 | $ 48,171 | |
New World Fossil 1.0 | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 8,027 | 4,475 | 5,340 | |
Charges | 10,805 | 46,630 | 48,171 | $ 133,400 |
Cash payments | 10,501 | 36,826 | 38,352 | |
Non-cash items | 4,621 | 6,252 | 10,684 | |
Balance at end of period | 3,710 | 8,027 | 4,475 | 3,710 |
New World Fossil 1.0 | Store closures | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 2,818 | 2,973 | 4,546 | |
Charges | 2,971 | 14,906 | 13,045 | |
Cash payments | 1,673 | 14,141 | 6,636 | |
Non-cash items | 2,253 | 920 | 7,982 | |
Balance at end of period | 1,863 | 2,818 | 2,973 | 1,863 |
New World Fossil 1.0 | Professional services | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 2,198 | 185 | 794 | |
Charges | 485 | 12,439 | 3,507 | |
Cash payments | 1,368 | 10,426 | 2,618 | |
Non-cash items | 0 | 0 | 1,498 | |
Balance at end of period | 1,315 | 2,198 | 185 | 1,315 |
New World Fossil 1.0 | Severance and employee-related benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 3,011 | 1,317 | 0 | |
Charges | 7,349 | 19,285 | 31,619 | |
Cash payments | 7,460 | 12,259 | 29,098 | |
Non-cash items | 2,368 | 5,332 | 1,204 | |
Balance at end of period | 532 | 3,011 | $ 1,317 | 532 |
New World Fossil 2.0 | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Charges | 18,831 | |||
Cash payments | 11,172 | |||
Non-cash items | 575 | |||
Balance at end of period | 7,084 | 0 | 7,084 | |
New World Fossil 2.0 | Store closures | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Charges | 597 | |||
Cash payments | 0 | |||
Non-cash items | 575 | |||
Balance at end of period | 22 | 0 | 22 | |
New World Fossil 2.0 | Professional services | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Charges | 8,039 | |||
Cash payments | 5,215 | |||
Non-cash items | 0 | |||
Balance at end of period | 2,824 | 0 | 2,824 | |
New World Fossil 2.0 | Severance and employee-related benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Charges | 10,195 | |||
Cash payments | 5,957 | |||
Non-cash items | 0 | |||
Balance at end of period | $ 4,238 | $ 0 | $ 4,238 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges by Operating Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | 48 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 29,636 | $ 46,630 | $ 48,171 | |
New World Fossil 1.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 10,805 | 46,630 | 48,171 | $ 133,400 |
New World Fossil 2.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 18,831 | |||
Operating segments | New World Fossil 1.0 | Americas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 2,941 | 17,197 | 12,964 | |
Operating segments | New World Fossil 1.0 | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,272 | 10,116 | 12,606 | |
Operating segments | New World Fossil 1.0 | Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 793 | 2,946 | 9,894 | |
Operating segments | New World Fossil 2.0 | Americas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 2,048 | |||
Operating segments | New World Fossil 2.0 | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 9,333 | |||
Operating segments | New World Fossil 2.0 | Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 773 | |||
Corporate | New World Fossil 1.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 5,799 | $ 16,371 | $ 12,707 | |
Corporate | New World Fossil 2.0 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 6,677 |
SCHEDULE II VALUATIONS AND QU_2
SCHEDULE II VALUATIONS AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 67,132 | $ 75,200 | $ 66,901 |
Charged to Operations | 139,350 | 108,485 | 148,814 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 129,015 | 116,553 | 140,515 |
Balance at End of Period | 77,467 | 67,132 | 75,200 |
Bad debts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 14,001 | 12,928 | 12,805 |
Charged to Operations | 2,921 | 8,921 | 7,140 |
Charged to Other Accounts | 0 | 0 | 0 |
Actual Returns or Writeoffs | 3,688 | 7,848 | 7,017 |
Balance at End of Period | 13,234 | 14,001 | 12,928 |
Markdowns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 19,019 | 0 | |
Charged to Operations | 49,915 | 37,904 | |
Charged to Other Accounts | 0 | 28,416 | |
Actual Returns or Writeoffs | 45,848 | 47,301 | |
Balance at End of Period | 23,086 | 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 | 95,818 | 78,314 | 19,415 |
Charged to Operations | 15,672 | 13,102 | 59,676 |
Charged to Other Accounts | 6,599 | 4,402 | 0 |
Actual Returns or Writeoffs | 0 | 0 | 777 |
Balance at End of Period | $ 118,089 | $ 95,818 | $ 78,314 |
Uncategorized Items - fosl-2019
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,993,000 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,993,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (26,542,000) |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (26,542,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (26,542,000) |
Accounting Standards Update 2016-02 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (29,468,000) |