x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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75-2018505
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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901 S. Central Expressway, Richardson, Texas
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75080
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Emerging growth company
o
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Page
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September 30, 2017
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December 31, 2016
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||||
Assets
|
|
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|
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Current assets:
|
|
|
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Cash and cash equivalents
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$
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166,922
|
|
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$
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297,330
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Accounts receivable - net of allowances of $70,081 and $79,707, respectively
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310,895
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375,520
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Inventories
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682,986
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542,487
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Prepaid expenses and other current assets
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125,533
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131,953
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Total current assets
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1,286,336
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1,347,290
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Property, plant and equipment - net of accumulated depreciation of $453,894 and $414,761, respectively
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243,448
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273,851
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Goodwill
|
—
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355,263
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|
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Intangible and other assets-net
|
220,588
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210,493
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Total long-term assets
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464,036
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839,607
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Total assets
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$
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1,750,372
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$
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2,186,897
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Liabilities and Stockholders’ Equity
|
|
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Current liabilities:
|
|
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Accounts payable
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$
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248,824
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$
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163,644
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Short-term and current portion of long-term debt
|
40,209
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26,368
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Accrued expenses:
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|
|
|
|
|
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Compensation
|
64,862
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|
|
52,993
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|
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Royalties
|
26,897
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|
|
30,062
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|
||
Co-op advertising
|
17,772
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|
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29,111
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|
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Transaction taxes
|
40,482
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|
|
26,743
|
|
||
Other
|
101,390
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|
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69,565
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Income taxes payable
|
13,077
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|
16,099
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Total current liabilities
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553,513
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414,585
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Long-term income taxes payable
|
22,951
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18,584
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|
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Deferred income tax liabilities
|
500
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|
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55,877
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|
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Long-term debt
|
444,303
|
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|
609,961
|
|
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Other long-term liabilities
|
76,107
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|
72,452
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Total long-term liabilities
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543,861
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756,874
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Commitments and contingencies (Note 13)
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Stockholders’ equity:
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Common stock, 48,524 and 48,269 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
|
485
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483
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Additional paid-in capital
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235,990
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213,352
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Retained earnings
|
489,528
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887,825
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Accumulated other comprehensive income (loss)
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(84,710
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)
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(95,424
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)
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Total Fossil Group, Inc. stockholders’ equity
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641,293
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1,006,236
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Noncontrolling interest
|
11,705
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|
9,202
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Total stockholders’ equity
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652,998
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|
1,015,438
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Total liabilities and stockholders’ equity
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$
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1,750,372
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$
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2,186,897
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For the 13 Weeks Ended September 30, 2017
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For the 13 Weeks Ended October 1, 2016
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For the 39 Weeks Ended September 30, 2017
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For the 39 Weeks Ended October 1, 2016
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||||||||
Net sales
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$
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688,722
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$
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737,990
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$
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1,867,358
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$
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2,083,206
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Cost of sales
|
368,829
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352,910
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956,600
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994,039
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Gross profit
|
319,893
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385,080
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910,758
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1,089,167
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Operating expenses:
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Selling, general and administrative expenses
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314,623
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339,432
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937,330
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1,013,664
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Goodwill and trade name impairments
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—
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—
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407,128
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—
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Restructuring charges
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5,769
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14,473
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41,818
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14,473
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Total operating expenses
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320,392
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353,905
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1,386,276
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1,028,137
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Operating income (loss)
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(499
|
)
|
|
31,175
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(475,518
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)
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|
61,030
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|
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Interest expense
|
12,070
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|
|
6,967
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|
|
32,096
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|
|
19,386
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|
||||
Other income (expense) - net
|
3,860
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|
1,591
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|
11,501
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|
|
6,402
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|
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Income (loss) before income taxes
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(8,709
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)
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|
25,799
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(496,113
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)
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48,046
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|
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Provision for income taxes
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(3,230
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)
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6,451
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(100,746
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)
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13,230
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|
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Net income (loss)
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(5,479
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)
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|
19,348
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(395,367
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)
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|
34,816
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Less: Net income attributable to noncontrolling interest
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(80
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)
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1,992
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2,931
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|
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5,646
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Net income (loss) attributable to Fossil Group, Inc.
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$
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(5,399
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)
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$
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17,356
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$
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(398,298
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)
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$
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29,170
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Other comprehensive income (loss), net of taxes:
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Currency translation adjustment
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$
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5,222
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$
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1,662
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|
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$
|
32,078
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|
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$
|
9,383
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Cash flow hedges - net change
|
(9,771
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)
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|
1,360
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(21,364
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)
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(4,741
|
)
|
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Pension plan activity
|
—
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—
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—
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1,714
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|
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Total other comprehensive income (loss)
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(4,549
|
)
|
|
3,022
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|
|
10,714
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|
|
6,356
|
|
||||
Total comprehensive income (loss)
|
(10,028
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)
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|
22,370
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|
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(384,653
|
)
|
|
41,172
|
|
||||
Less: Comprehensive income attributable to noncontrolling interest
|
(80
|
)
|
|
1,992
|
|
|
2,931
|
|
|
5,646
|
|
||||
Comprehensive income (loss) attributable to Fossil Group, Inc.
|
$
|
(9,948
|
)
|
|
$
|
20,378
|
|
|
$
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(387,584
|
)
|
|
$
|
35,526
|
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Earnings (loss) per share:
|
|
|
|
|
|
|
|
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|
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Basic
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$
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(0.11
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)
|
|
$
|
0.36
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|
|
$
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(8.22
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)
|
|
$
|
0.61
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Diluted
|
$
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(0.11
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)
|
|
$
|
0.36
|
|
|
$
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(8.22
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)
|
|
$
|
0.60
|
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Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
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|
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Basic
|
48,521
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|
|
48,130
|
|
|
48,439
|
|
|
48,127
|
|
||||
Diluted
|
48,521
|
|
|
48,291
|
|
|
48,439
|
|
|
48,286
|
|
|
For the 39 Weeks Ended September 30, 2017
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|
For the 39 Weeks Ended October 1, 2016
|
||||
Operating Activities:
|
|
|
|
|
|
||
Net income (loss)
|
$
|
(395,367
|
)
|
|
$
|
34,816
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation, amortization and accretion
|
61,526
|
|
|
73,198
|
|
||
Stock-based compensation
|
22,384
|
|
|
23,894
|
|
||
Decrease in allowance for returns-net of inventory in transit
|
(6,129
|
)
|
|
(14,955
|
)
|
||
Loss (gain) on disposal of assets
|
1,686
|
|
|
(9,866
|
)
|
||
Fixed asset and other long-lived asset impairment losses
|
2,726
|
|
|
2,213
|
|
||
Goodwill and trade name impairment losses
|
407,128
|
|
|
—
|
|
||
Non-cash restructuring charges
|
7,031
|
|
|
12,523
|
|
||
Increase (decrease) in allowance for doubtful accounts
|
4,161
|
|
|
(3,915
|
)
|
||
Deferred income taxes and other
|
(111,177
|
)
|
|
(9,309
|
)
|
||
Changes in operating assets and liabilities, net of effect of acquisitions:
|
|
|
|
|
|
||
Accounts receivable
|
85,078
|
|
|
74,706
|
|
||
Inventories
|
(116,002
|
)
|
|
(76,869
|
)
|
||
Prepaid expenses and other current assets
|
(5,620
|
)
|
|
17,640
|
|
||
Accounts payable
|
80,146
|
|
|
(16,887
|
)
|
||
Accrued expenses
|
20,863
|
|
|
(38,572
|
)
|
||
Income taxes payable
|
1,734
|
|
|
(9,257
|
)
|
||
Net cash provided by operating activities
|
60,168
|
|
|
59,360
|
|
||
Investing Activities:
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(17,239
|
)
|
|
(53,524
|
)
|
||
Decrease in intangible and other assets
|
478
|
|
|
2,509
|
|
||
Misfit working capital settlement
|
—
|
|
|
788
|
|
||
Proceeds from the sale of property, plant and equipment
|
533
|
|
|
44,584
|
|
||
Net investment hedge settlement
|
—
|
|
|
752
|
|
||
Net cash used in investing activities
|
(16,228
|
)
|
|
(4,891
|
)
|
||
Financing Activities:
|
|
|
|
|
|
||
Acquisition of common stock
|
(947
|
)
|
|
(6,448
|
)
|
||
Distribution of noncontrolling interest earnings
|
(428
|
)
|
|
(4,543
|
)
|
||
Debt borrowings
|
1,162,074
|
|
|
756,000
|
|
||
Debt payments
|
(1,311,597
|
)
|
|
(839,629
|
)
|
||
Payment for shares of Fossil, S.L.
|
—
|
|
|
(8,657
|
)
|
||
Debt issuance costs and other
|
(5,579
|
)
|
|
(2,585
|
)
|
||
Net cash used in financing activities
|
(156,477
|
)
|
|
(105,862
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(17,871
|
)
|
|
(1,930
|
)
|
||
Net decrease in cash and cash equivalents
|
(130,408
|
)
|
|
(53,323
|
)
|
||
Cash and cash equivalents:
|
|
|
|
|
|
||
Beginning of period
|
297,330
|
|
|
289,275
|
|
||
End of period
|
$
|
166,922
|
|
|
$
|
235,952
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to Fossil Group, Inc.
|
$
|
(5,399
|
)
|
|
$
|
17,356
|
|
|
$
|
(398,298
|
)
|
|
$
|
29,170
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic EPS computation:
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average common shares outstanding
|
48,521
|
|
|
48,130
|
|
|
48,439
|
|
|
48,127
|
|
||||
Basic EPS
|
$
|
(0.11
|
)
|
|
$
|
0.36
|
|
|
$
|
(8.22
|
)
|
|
$
|
0.61
|
|
Diluted EPS computation:
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average common shares outstanding
|
48,521
|
|
|
48,130
|
|
|
48,439
|
|
|
48,127
|
|
||||
Effect of stock options, stock appreciation rights, restricted stock units and performance restricted stock units
|
—
|
|
|
161
|
|
|
—
|
|
|
159
|
|
||||
Diluted weighted average common shares outstanding
|
48,521
|
|
|
48,291
|
|
|
48,439
|
|
|
48,286
|
|
||||
Diluted EPS
|
$
|
(0.11
|
)
|
|
$
|
0.36
|
|
|
$
|
(8.22
|
)
|
|
$
|
0.60
|
|
•
|
ASU 2016-08
Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)
|
•
|
ASU 2016-10
Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing
|
•
|
ASU 2016-12
Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients
|
•
|
ASU 2017-13
Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)
|
|
Americas
|
|
Europe
|
|
Asia
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
202,187
|
|
|
$
|
110,291
|
|
|
$
|
42,785
|
|
|
$
|
355,263
|
|
Foreign currency changes
|
162
|
|
|
3,983
|
|
|
85
|
|
|
4,230
|
|
||||
Impairment charges
|
(202,349
|
)
|
|
(114,274
|
)
|
|
(42,870
|
)
|
|
$
|
(359,493
|
)
|
|||
Balance at September 30, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Components and parts
|
$
|
60,258
|
|
|
$
|
49,438
|
|
Work-in-process
|
9,471
|
|
|
12,345
|
|
||
Finished goods
|
613,257
|
|
|
480,704
|
|
||
Inventories
|
$
|
682,986
|
|
|
$
|
542,487
|
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||
Beginning balance
|
$
|
15,421
|
|
|
$
|
13,669
|
|
Settlements in cash or kind
|
(11,608
|
)
|
|
(7,338
|
)
|
||
Warranties issued and adjustments to preexisting warranties
(1)
|
14,984
|
|
|
8,604
|
|
||
Ending balance
|
$
|
18,797
|
|
|
$
|
14,935
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||
Income tax (benefit) expense
|
$
|
(3,230
|
)
|
|
$
|
6,451
|
|
|
$
|
(100,746
|
)
|
|
$
|
13,230
|
|
Effective tax rate
|
37.1
|
%
|
|
25.0
|
%
|
|
20.3
|
%
|
|
27.5
|
%
|
|
|
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||||||||||
Fiscal Year
Authorized
|
Dollar Value
Authorized
|
|
Termination Date
|
|
Number of
Shares
Repurchased
|
|
Dollar Value
Repurchased
|
|
Number of
Shares
Repurchased
|
|
Dollar Value
Repurchased
|
||||||||
2014
|
$
|
1,000.0
|
|
|
December 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
2010
|
$
|
30.0
|
|
|
None
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||||||
Fiscal Year
Authorized
|
Dollar Value
Authorized
|
|
Termination Date
|
|
Number of
Shares
Repurchased
|
|
Dollar Value
Repurchased
|
|
Number of
Shares
Repurchased
|
|
Dollar Value
Repurchased
|
||||||||
2014
|
$
|
1,000.0
|
|
|
December 2018
|
|
—
|
|
|
$
|
—
|
|
|
0.1
|
|
|
$
|
5.2
|
|
2010
|
$
|
30.0
|
|
|
None
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
Fossil Group, Inc.
Stockholders’
Equity
|
|
Noncontrolling
Interest
|
|
Total
Stockholders’
Equity
|
||||||
Balance at December 31, 2016
|
$
|
1,006,236
|
|
|
$
|
9,202
|
|
|
$
|
1,015,438
|
|
Net income (loss)
|
(398,298
|
)
|
|
2,931
|
|
|
(395,367
|
)
|
|||
Currency translation adjustment
|
32,078
|
|
|
—
|
|
|
32,078
|
|
|||
Cash flow hedges - net change
|
(21,364
|
)
|
|
—
|
|
|
(21,364
|
)
|
|||
Distribution of noncontrolling interest earnings
|
—
|
|
|
(428
|
)
|
|
(428
|
)
|
|||
Acquisition of common stock
|
(947
|
)
|
|
—
|
|
|
(947
|
)
|
|||
Stock-based compensation expense
|
23,588
|
|
|
—
|
|
|
23,588
|
|
|||
Balance at September 30, 2017
|
$
|
641,293
|
|
|
$
|
11,705
|
|
|
$
|
652,998
|
|
|
Fossil Group, Inc.
Stockholders’
Equity
|
|
Noncontrolling
Interest
|
|
Total
Stockholders’
Equity
|
||||||
Balance at January 2, 2016
|
$
|
921,388
|
|
|
$
|
11,155
|
|
|
$
|
932,543
|
|
Net income
|
29,170
|
|
|
5,646
|
|
|
34,816
|
|
|||
Currency translation adjustment
|
9,383
|
|
|
—
|
|
|
9,383
|
|
|||
Cash flow hedges - net change
|
(4,741
|
)
|
|
—
|
|
|
(4,741
|
)
|
|||
Pension plan activity
|
1,714
|
|
|
—
|
|
|
1,714
|
|
|||
Common stock issued upon exercise of stock options
|
57
|
|
|
—
|
|
|
57
|
|
|||
Tax expense derived from stock-based compensation
|
(1,756
|
)
|
|
—
|
|
|
(1,756
|
)
|
|||
Distribution of noncontrolling interest earnings
|
—
|
|
|
(4,543
|
)
|
|
(4,543
|
)
|
|||
Acquisition of common stock
|
(6,448
|
)
|
|
—
|
|
|
(6,448
|
)
|
|||
Stock-based compensation expense
|
23,894
|
|
|
—
|
|
|
23,894
|
|
|||
Balance at October 1, 2016
|
$
|
972,661
|
|
|
$
|
12,258
|
|
|
$
|
984,919
|
|
Stock Options and Stock Appreciation Rights
|
|
Shares
|
|
Weighted-
Average
Exercise Price
|
|
Weighted-
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
|
|
(in Thousands)
|
|
|
|
(in Years)
|
|
(in Thousands)
|
|||||
Outstanding at July 1, 2017
|
|
2,236
|
|
|
$
|
50.29
|
|
|
5.8
|
|
$
|
—
|
|
Granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Exercised
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
||
Forfeited or expired
|
|
(27
|
)
|
|
63.35
|
|
|
|
|
|
|
||
Outstanding at September 30, 2017
|
|
2,209
|
|
|
50.14
|
|
|
5.6
|
|
—
|
|
||
Exercisable at September 30, 2017
|
|
882
|
|
|
$
|
67.67
|
|
|
4.5
|
|
$
|
—
|
|
Cash Stock Appreciation Rights Outstanding
|
|
Cash Stock Appreciation Rights Exercisable
|
||||||||||||||
Range of
Exercise Prices |
|
Number of
Shares |
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term |
|
Number of
Shares |
|
Weighted- Average Exercise Price
|
||||||
|
|
(in Thousands)
|
|
|
|
(in Years)
|
|
(in Thousands)
|
|
|
||||||
$29.78 - $47.99
|
|
61
|
|
|
$
|
36.73
|
|
|
6.2
|
|
11
|
|
|
$
|
36.73
|
|
Total
|
|
61
|
|
|
$
|
36.73
|
|
|
6.2
|
|
11
|
|
|
$
|
36.73
|
|
Stock Options Outstanding
|
|
Stock Options Exercisable
|
||||||||||||||
Range of
Exercise Prices
|
|
Number of
Shares
|
|
Weighted-
Average
Exercise
Price
|
|
Weighted-
Average
Remaining
Contractual
Term
|
|
Number of
Shares
|
|
Weighted-
Average Exercise Price |
||||||
|
|
(in Thousands)
|
|
|
|
(in Years)
|
|
(in Thousands)
|
|
|
||||||
$13.65 - $29.49
|
|
35
|
|
|
$
|
14.12
|
|
|
1.4
|
|
35
|
|
|
$
|
14.12
|
|
$29.78 - $47.99
|
|
79
|
|
|
37.00
|
|
|
1.5
|
|
79
|
|
|
37.00
|
|
||
$55.04 - $83.83
|
|
91
|
|
|
80.80
|
|
|
3.2
|
|
91
|
|
|
80.80
|
|
||
$95.91 - $131.46
|
|
129
|
|
|
127.97
|
|
|
4.1
|
|
129
|
|
|
127.97
|
|
||
Total
|
|
334
|
|
|
$
|
81.69
|
|
|
3.0
|
|
334
|
|
|
$
|
81.69
|
|
Stock Appreciation Rights Outstanding
|
|
Stock Appreciation Rights Exercisable
|
||||||||||||||
Range of
Exercise Prices |
|
Number of
Shares |
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term |
|
Number of
Shares |
|
Weighted-
Average Exercise Price |
||||||
|
|
(in Thousands)
|
|
|
|
(in Years)
|
|
(in Thousands)
|
|
|
||||||
$13.65 - $29.49
|
|
101
|
|
|
$
|
29.49
|
|
|
6.8
|
|
34
|
|
|
$
|
29.49
|
|
$29.78 - $47.99
|
|
1,485
|
|
|
38.07
|
|
|
6.2
|
|
310
|
|
|
38.91
|
|
||
$55.04 - $83.83
|
|
125
|
|
|
79.16
|
|
|
4.8
|
|
90
|
|
|
79.91
|
|
||
$95.91 - $131.46
|
|
103
|
|
|
114.46
|
|
|
3.7
|
|
103
|
|
|
114.46
|
|
||
Total
|
|
1,814
|
|
|
$
|
44.78
|
|
|
6.0
|
|
537
|
|
|
$
|
59.74
|
|
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 July 1, 2017
|
|
2,785
|
|
|
$
|
24.21
|
|
Granted
|
|
254
|
|
|
9.98
|
|
|
Vested
|
|
(17
|
)
|
|
37.81
|
|
|
Forfeited
|
|
(57
|
)
|
|
23.86
|
|
|
Nonvested at September 30, 2017
|
|
2,965
|
|
|
$
|
22.92
|
|
|
For the 13 Weeks Ended September 30, 2017
|
||||||||||||||||||
|
Currency
Translation
Adjustments
|
|
Cash Flow Hedges
|
|
|
|
|
||||||||||||
|
|
Forward
Contracts
|
|
Interest
Rate Swaps
|
|
Pension
Plan
|
|
Total
|
|||||||||||
Beginning balance
|
$
|
(75,011
|
)
|
|
$
|
(1,284
|
)
|
|
$
|
41
|
|
|
$
|
(3,907
|
)
|
|
$
|
(80,161
|
)
|
Other comprehensive income (loss) before reclassifications
|
5,222
|
|
|
(16,776
|
)
|
|
5
|
|
|
—
|
|
|
(11,549
|
)
|
|||||
Tax (expense) benefit
|
—
|
|
|
2,853
|
|
|
(2
|
)
|
|
—
|
|
|
2,851
|
|
|||||
Amounts reclassed from accumulated other comprehensive income (loss)
|
—
|
|
|
(4,940
|
)
|
|
(25
|
)
|
|
—
|
|
|
(4,965
|
)
|
|||||
Tax (expense) benefit
|
—
|
|
|
807
|
|
|
9
|
|
|
—
|
|
|
816
|
|
|||||
Total other comprehensive income (loss)
|
5,222
|
|
|
(9,790
|
)
|
|
19
|
|
|
—
|
|
|
(4,549
|
)
|
|||||
Ending balance
|
$
|
(69,789
|
)
|
|
$
|
(11,074
|
)
|
|
$
|
60
|
|
|
$
|
(3,907
|
)
|
|
$
|
(84,710
|
)
|
|
For the 13 Weeks Ended October 1, 2016
|
||||||||||||||||||
|
Currency
Translation
Adjustments
|
|
Cash Flow Hedges
|
|
|
|
|
||||||||||||
|
|
Forward
Contracts
|
|
Interest
Rate Swaps
|
|
Pension
Plan
|
|
Total
|
|||||||||||
Beginning balance
|
$
|
(73,986
|
)
|
|
$
|
2,943
|
|
|
$
|
(1,623
|
)
|
|
$
|
(4,506
|
)
|
|
$
|
(77,172
|
)
|
Other comprehensive income (loss) before reclassifications
|
1,942
|
|
|
3,313
|
|
|
466
|
|
|
—
|
|
|
5,721
|
|
|||||
Tax (expense) benefit
|
(280
|
)
|
|
(605
|
)
|
|
(170
|
)
|
|
—
|
|
|
(1,055
|
)
|
|||||
Amounts reclassed from accumulated other comprehensive income (loss)
|
—
|
|
|
2,621
|
|
|
(413
|
)
|
|
—
|
|
|
2,208
|
|
|||||
Tax (expense) benefit
|
—
|
|
|
(714
|
)
|
|
150
|
|
|
—
|
|
|
(564
|
)
|
|||||
Total other comprehensive income (loss)
|
1,662
|
|
|
801
|
|
|
559
|
|
|
—
|
|
|
3,022
|
|
|||||
Ending balance
|
$
|
(72,324
|
)
|
|
$
|
3,744
|
|
|
$
|
(1,064
|
)
|
|
$
|
(4,506
|
)
|
|
$
|
(74,150
|
)
|
|
For the 39 Weeks Ended September 30, 2017
|
|||||||||||||||||||
|
Currency
Translation
Adjustments
|
|
Cash Flow Hedges
|
|
|
|
|
|||||||||||||
|
|
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
|
32,078
|
|
|
(33,243
|
)
|
|
230
|
|
|
—
|
|
|
(935
|
)
|
||||||
Tax (expense) benefit
|
—
|
|
|
11,512
|
|
|
(84
|
)
|
|
—
|
|
|
11,428
|
|
||||||
Amounts reclassed from accumulated other comprehensive income (loss)
|
—
|
|
|
1,981
|
|
|
(404
|
)
|
|
—
|
|
|
1,577
|
|
||||||
Tax (expense) benefit
|
—
|
|
|
(1,945
|
)
|
|
147
|
|
|
—
|
|
|
(1,798
|
)
|
||||||
Total other comprehensive income (loss)
|
32,078
|
|
|
(21,767
|
)
|
|
403
|
|
—
|
|
—
|
|
|
10,714
|
|
|||||
Ending balance
|
$
|
(69,789
|
)
|
|
$
|
(11,074
|
)
|
|
$
|
60
|
|
|
$
|
(3,907
|
)
|
|
$
|
(84,710
|
)
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||||||||||||
|
Currency
Translation
Adjustments
|
|
Cash Flow Hedges
|
|
|
|
|
||||||||||||
|
|
Forward
Contracts
|
|
Interest
Rate Swaps
|
|
Pension
Plan
|
|
Total
|
|||||||||||
Beginning balance
|
$
|
(81,707
|
)
|
|
$
|
8,114
|
|
|
$
|
(693
|
)
|
|
$
|
(6,220
|
)
|
|
$
|
(80,506
|
)
|
Other comprehensive income (loss) before reclassifications
|
9,767
|
|
|
2,055
|
|
|
(1,915
|
)
|
|
2,010
|
|
|
11,917
|
|
|||||
Tax (expense) benefit
|
(280
|
)
|
|
433
|
|
|
698
|
|
|
(296
|
)
|
|
555
|
|
|||||
Amounts reclassed from accumulated other comprehensive income (loss)
|
104
|
|
|
9,888
|
|
|
(1,331
|
)
|
|
—
|
|
|
8,661
|
|
|||||
Tax (expense) benefit
|
—
|
|
|
(3,030
|
)
|
|
485
|
|
|
—
|
|
|
(2,545
|
)
|
|||||
Total other comprehensive income (loss)
|
9,383
|
|
|
(4,370
|
)
|
|
(371
|
)
|
|
1,714
|
|
|
6,356
|
|
|||||
Ending balance
|
$
|
(72,324
|
)
|
|
$
|
3,744
|
|
|
$
|
(1,064
|
)
|
|
$
|
(4,506
|
)
|
|
$
|
(74,150
|
)
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||||||||||
|
Net Sales
|
|
Operating Income (Loss)
|
|
Net Sales
|
|
Operating Income (Loss)
|
||||||||
Americas
|
$
|
308,102
|
|
|
$
|
18,843
|
|
|
$
|
361,226
|
|
|
$
|
56,455
|
|
Europe
|
247,184
|
|
|
39,332
|
|
|
243,139
|
|
|
49,013
|
|
||||
Asia
|
133,436
|
|
|
21,999
|
|
|
133,625
|
|
|
23,654
|
|
||||
Corporate
|
—
|
|
|
(80,673
|
)
|
|
—
|
|
|
(97,947
|
)
|
||||
Consolidated
|
$
|
688,722
|
|
|
$
|
(499
|
)
|
|
$
|
737,990
|
|
|
$
|
31,175
|
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||||||
|
Net Sales
|
|
Operating Income (Loss)
|
|
Net Sales
|
|
Operating Income (Loss)
|
||||||||
Americas
|
$
|
874,449
|
|
|
$
|
(121,976
|
)
|
|
$
|
1,042,223
|
|
|
$
|
168,352
|
|
Europe
|
637,566
|
|
|
(33,859
|
)
|
|
669,076
|
|
|
109,193
|
|
||||
Asia
|
355,343
|
|
|
(2,702
|
)
|
|
371,907
|
|
|
60,519
|
|
||||
Corporate
|
—
|
|
|
(316,981
|
)
|
|
—
|
|
|
(277,034
|
)
|
||||
Consolidated
|
$
|
1,867,358
|
|
|
$
|
(475,518
|
)
|
|
$
|
2,083,206
|
|
|
$
|
61,030
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||||||||
|
Net Sales
|
|
Percentage of Total
|
|
Net Sales
|
|
Percentage of Total
|
||||||
Watches
|
$
|
551,913
|
|
|
80.1
|
%
|
|
$
|
567,148
|
|
|
76.9
|
%
|
Leathers
|
75,660
|
|
|
11.0
|
|
|
93,338
|
|
|
12.6
|
|
||
Jewelry
|
47,729
|
|
|
6.9
|
|
|
60,237
|
|
|
8.2
|
|
||
Other
|
13,420
|
|
|
2.0
|
|
|
17,267
|
|
|
2.3
|
|
||
Total
|
$
|
688,722
|
|
|
100.0
|
%
|
|
$
|
737,990
|
|
|
100.0
|
%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||||
|
Net Sales
|
|
Percentage of Total
|
|
Net Sales
|
|
Percentage of Total
|
||||||
Watches
|
$
|
1,471,144
|
|
|
78.8
|
%
|
|
$
|
1,581,233
|
|
|
75.9
|
%
|
Leathers
|
217,946
|
|
|
11.7
|
|
|
278,995
|
|
|
13.4
|
|
||
Jewelry
|
139,900
|
|
|
7.5
|
|
|
171,709
|
|
|
8.2
|
|
||
Other
|
38,368
|
|
|
2.0
|
|
|
51,269
|
|
|
2.5
|
|
||
Total
|
$
|
1,867,358
|
|
|
100.0
|
%
|
|
$
|
2,083,206
|
|
|
100.0
|
%
|
Functional Currency
|
|
Contract Currency
|
||||||
Type
|
|
Amount
|
|
Type
|
|
Amount
|
||
Euro
|
|
253.4
|
|
|
U.S. dollar
|
|
291.0
|
|
Canadian dollar
|
|
95.0
|
|
|
U.S. dollar
|
|
73.2
|
|
British pound
|
|
43.5
|
|
|
U.S. dollar
|
|
58.1
|
|
Japanese yen
|
|
4,636.4
|
|
|
U.S. dollar
|
|
42.8
|
|
Mexican peso
|
|
378.6
|
|
|
U.S. dollar
|
|
20.3
|
|
Australian dollar
|
|
21.2
|
|
|
U.S. dollar
|
|
16.5
|
|
U.S. dollar
|
|
41.1
|
|
|
Japanese yen
|
|
4,470.0
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||
Cash flow hedges:
|
|
|
|
|
|
||
Forward contracts
|
$
|
(13,923
|
)
|
|
$
|
2,708
|
|
Interest rate swaps
|
3
|
|
|
296
|
|
||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes
|
$
|
(13,920
|
)
|
|
$
|
3,004
|
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||
Cash flow hedges:
|
|
|
|
|
|
||
Forward contracts
|
$
|
(21,731
|
)
|
|
$
|
2,488
|
|
Interest rate swaps
|
146
|
|
|
(1,217
|
)
|
||
Total gain (loss) recognized in other comprehensive income (loss), net of taxes
|
$
|
(21,585
|
)
|
|
$
|
1,271
|
|
Derivative Instruments
|
|
Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location
|
|
Effect of Derivative
Instruments
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||
Forward contracts designated as cash flow hedging instruments
|
|
Other income (expense)-net
|
|
Total gain (loss) reclassified from accumulated other comprehensive income (loss)
|
|
$
|
(4,133
|
)
|
|
$
|
1,907
|
|
Forward contracts not designated as hedging instruments
|
|
Other income (expense)-net
|
|
Total gain (loss) recognized in income
|
|
$
|
(12
|
)
|
|
$
|
75
|
|
Interest rate swap designated as a cash flow hedging instrument
|
|
Interest expense
|
|
Total gain (loss) reclassified from accumulated other comprehensive income (loss)
|
|
$
|
(16
|
)
|
|
$
|
(263
|
)
|
Derivative Instruments
|
|
Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location
|
|
Effect of Derivative
Instruments
|
|
For the 39 Weeks Ended
September 30, 2017
|
|
For the 39 Weeks Ended
October 1, 2016
|
||||
Forward contracts designated as cash flow hedging instruments
|
|
Other income (expense)-net
|
|
Total gain (loss) reclassified from accumulated other comprehensive income (loss)
|
|
$
|
36
|
|
|
$
|
6,858
|
|
Forward contracts not designated as hedging instruments
|
|
Other income (expense)-net
|
|
Total gain (loss) recognized in income
|
|
$
|
170
|
|
|
$
|
(222
|
)
|
Interest rate swap designated as a cash flow hedging instrument
|
|
Interest expense
|
|
Total gain (loss) reclassified from accumulated other comprehensive income (loss)
|
|
$
|
(257
|
)
|
|
$
|
(846
|
)
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
|
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||
Derivative Instruments
|
|
Condensed
Consolidated
Balance Sheets
Location
|
|
Fair
Value
|
|
Condensed
Consolidated
Balance Sheets
Location
|
|
Fair
Value
|
|
Condensed
Consolidated
Balance Sheets
Location
|
|
Fair
Value
|
|
Condensed
Consolidated
Balance Sheets
Location
|
|
Fair
Value
|
||||||||
Forward contracts designated as cash flow hedging instruments
|
|
Prepaid expenses and other current assets
|
|
$
|
2,710
|
|
|
Prepaid expenses and other current assets
|
|
$
|
23,288
|
|
|
Accrued expenses- other
|
|
$
|
15,215
|
|
|
Accrued expenses- other
|
|
$
|
4,696
|
|
Forward contracts not designated as cash flow hedging instruments
|
|
Prepaid expenses and other current assets
|
|
72
|
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
Accrued expenses- other
|
|
1
|
|
|
Accrued expenses- other
|
|
2
|
|
||||
Interest rate swap designated as a cash flow hedging instrument
|
|
Prepaid expenses and other current assets
|
|
109
|
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
Accrued expenses- other
|
|
15
|
|
|
Accrued expenses- other
|
|
613
|
|
||||
Forward contracts designated as cash flow hedging instruments
|
|
Intangible and other assets-net
|
|
448
|
|
|
Intangible and other assets-net
|
|
5,648
|
|
|
Other long-term liabilities
|
|
4,557
|
|
|
Other long-term liabilities
|
|
268
|
|
||||
Interest rate swap designated as a cash flow hedging instrument
|
|
Intangible and other assets-net
|
|
—
|
|
|
Intangible and other assets-net
|
|
73
|
|
|
Other long-term liabilities
|
|
—
|
|
|
Other long-term liabilities
|
|
—
|
|
||||
Total
|
|
|
|
$
|
3,339
|
|
|
|
|
$
|
29,009
|
|
|
|
|
$
|
19,788
|
|
|
|
|
$
|
5,579
|
|
|
Fair Value at September 30, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts
|
$
|
—
|
|
|
$
|
3,230
|
|
|
$
|
—
|
|
|
$
|
3,230
|
|
Deferred compensation plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment in publicly traded mutual funds
|
2,605
|
|
|
—
|
|
|
—
|
|
|
2,605
|
|
||||
Interest rate swap
|
—
|
|
|
109
|
|
|
—
|
|
|
109
|
|
||||
Total
|
$
|
2,605
|
|
|
$
|
3,339
|
|
|
$
|
—
|
|
|
$
|
5,944
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts
|
$
|
—
|
|
|
$
|
19,773
|
|
|
—
|
|
|
$
|
19,773
|
|
|
Interest rate swap
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||
Total
|
$
|
—
|
|
|
$
|
19,788
|
|
|
$
|
—
|
|
|
$
|
19,788
|
|
|
Fair Value at December 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts
|
$
|
—
|
|
|
$
|
28,936
|
|
|
$
|
—
|
|
|
$
|
28,936
|
|
Deferred compensation plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment in publicly traded mutual funds
|
2,385
|
|
|
—
|
|
|
—
|
|
|
2,385
|
|
||||
Interest rate swap
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||
Total
|
$
|
2,385
|
|
|
$
|
29,009
|
|
|
$
|
—
|
|
|
$
|
31,394
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts
|
—
|
|
|
4,966
|
|
|
—
|
|
|
4,966
|
|
||||
Interest rate swap
|
—
|
|
|
613
|
|
|
—
|
|
|
613
|
|
||||
Total
|
$
|
—
|
|
|
$
|
5,579
|
|
|
$
|
—
|
|
|
$
|
5,579
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Useful
|
|
Gross
|
|
Accumulated
|
|
Gross
|
|
Accumulated
|
||||||||
|
|
Lives
|
|
Amount
|
|
Amortization
|
|
Amount
|
|
Amortization
|
||||||||
Intangibles-subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trademarks
|
|
10 yrs.
|
|
$
|
4,310
|
|
|
$
|
3,621
|
|
|
$
|
4,310
|
|
|
$
|
3,443
|
|
Customer lists
|
|
5-10 yrs.
|
|
54,875
|
|
|
32,417
|
|
|
53,625
|
|
|
26,986
|
|
||||
Patents
|
|
3-20 yrs.
|
|
2,325
|
|
|
2,124
|
|
|
2,325
|
|
|
2,099
|
|
||||
Noncompete agreement
|
|
3-6 yrs.
|
|
2,548
|
|
|
2,102
|
|
|
2,505
|
|
|
1,662
|
|
||||
Developed technology
|
|
7 yrs.
|
|
36,100
|
|
|
9,025
|
|
|
36,100
|
|
|
5,157
|
|
||||
Trade name
|
|
6 yrs.
|
|
—
|
|
|
—
|
|
|
15,700
|
|
|
2,617
|
|
||||
Other
|
|
7-20 yrs.
|
|
265
|
|
|
236
|
|
|
253
|
|
|
215
|
|
||||
Total intangibles-subject to amortization
|
|
|
|
100,423
|
|
|
49,525
|
|
|
114,818
|
|
|
42,179
|
|
||||
Intangibles-not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trade names
|
|
|
|
38,645
|
|
|
|
|
|
74,485
|
|
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Key money deposits
|
|
|
|
27,841
|
|
|
24,195
|
|
|
26,948
|
|
|
22,038
|
|
||||
Other deposits
|
|
|
|
19,579
|
|
|
|
|
|
19,344
|
|
|
|
|
||||
Deferred compensation plan assets
|
|
|
|
2,605
|
|
|
|
|
|
2,385
|
|
|
|
|
||||
Deferred tax asset-net
|
|
|
|
98,374
|
|
|
|
|
|
23,061
|
|
|
|
|
||||
Restricted cash
|
|
|
|
373
|
|
|
|
|
|
500
|
|
|
|
|
||||
Shop-in-shop
|
|
|
|
10,161
|
|
|
9,816
|
|
|
8,807
|
|
|
8,019
|
|
||||
Tax receivable
|
|
|
|
404
|
|
|
|
|
—
|
|
|
|
||||||
Forward contracts
|
|
|
|
448
|
|
|
|
|
|
5,648
|
|
|
|
|
||||
Investments
|
|
|
|
500
|
|
|
|
|
2,078
|
|
|
|
||||||
Other
|
|
|
|
4,771
|
|
|
|
|
|
4,655
|
|
|
|
|
||||
Total other assets
|
|
|
|
165,056
|
|
|
34,011
|
|
|
93,426
|
|
|
30,057
|
|
||||
Total intangible and other assets
|
|
|
|
$
|
304,124
|
|
|
$
|
83,536
|
|
|
$
|
282,729
|
|
|
$
|
72,236
|
|
Total intangible and other assets-net
|
|
|
|
|
|
|
$
|
220,588
|
|
|
|
|
|
$
|
210,493
|
|
Fiscal Year
|
|
Amortization
Expense
|
||
2017 (remaining)
|
|
$
|
3,028
|
|
2018
|
|
$
|
11,848
|
|
2019
|
|
$
|
11,518
|
|
2020
|
|
$
|
10,979
|
|
2021
|
|
$
|
7,143
|
|
2022
|
|
$
|
6,263
|
|
Period
|
|
Maximum Ratio
|
July 2, 2017 through and including September 30, 2017
|
|
3.50 to 1.00
|
October 1, 2017 through and including March 31, 2018
|
|
3.25 to 1.00
|
April 1, 2018 through and including September 29, 2018
|
|
3.50 to 1.00
|
September 30, 2018 and thereafter
|
|
3.25 to 1.00
|
|
For the 13 Weeks Ended September 30, 2017
|
||||||||||||||||||
|
Liabilities
|
|
|
|
|
|
|
|
Liabilities
|
||||||||||
|
July 1, 2017
|
|
Charges
|
|
Cash Payments
|
|
Non-cash Items
|
|
September 30, 2017
|
||||||||||
Store closures
|
$
|
4,893
|
|
|
$
|
2,482
|
|
|
$
|
4,237
|
|
|
$
|
2,320
|
|
|
$
|
818
|
|
Professional services and other
|
116
|
|
|
765
|
|
|
48
|
|
|
291
|
|
|
542
|
|
|||||
Severance and employee-related benefits
|
1,535
|
|
|
2,522
|
|
|
2,467
|
|
|
—
|
|
|
1,590
|
|
|||||
Total
|
$
|
6,544
|
|
|
$
|
5,769
|
|
|
$
|
6,752
|
|
|
$
|
2,611
|
|
|
$
|
2,950
|
|
|
For the 13 Weeks Ended October 1, 2016
|
||||||||||||||||||
|
Liabilities
|
|
|
|
|
|
|
|
Liabilities
|
||||||||||
|
July 2, 2016
|
|
Charges
|
|
Cash Payments
|
|
Non-cash Items
|
|
October 1, 2016
|
||||||||||
Store closures
|
$
|
—
|
|
|
$
|
12,523
|
|
|
$
|
—
|
|
|
$
|
12,523
|
|
|
$
|
—
|
|
Professional services and other
|
—
|
|
|
1,950
|
|
|
1,300
|
|
|
—
|
|
|
650
|
|
|||||
Severance and employee-related benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
14,473
|
|
|
$
|
1,300
|
|
|
$
|
12,523
|
|
|
$
|
650
|
|
|
For the 39 Weeks Ended September 30, 2017
|
||||||||||||||||||
|
Liabilities
|
|
|
|
|
|
|
|
Liabilities
|
||||||||||
|
December 31, 2016
|
|
Charges
|
|
Cash Payments
|
|
Non-cash Items
|
|
September 30, 2017
|
||||||||||
Store closures
|
$
|
4,546
|
|
|
$
|
8,223
|
|
|
$
|
6,415
|
|
|
$
|
5,536
|
|
|
$
|
818
|
|
Professional services and other
|
794
|
|
|
2,195
|
|
|
2,156
|
|
|
291
|
|
|
542
|
|
|||||
Severance and employee-related benefits
|
—
|
|
|
31,400
|
|
|
28,606
|
|
|
1,204
|
|
|
1,590
|
|
|||||
Total
|
$
|
5,340
|
|
|
$
|
41,818
|
|
|
$
|
37,177
|
|
|
$
|
7,031
|
|
|
$
|
2,950
|
|
|
For the 39 Weeks Ended October 1, 2016
|
||||||||||||||||||
|
Liabilities
|
|
|
|
|
|
|
|
Liabilities
|
||||||||||
|
January 2, 2016
|
|
Charges
|
|
Cash Payments
|
|
Non-cash Items
|
|
October 1, 2016
|
||||||||||
Store closures
|
$
|
—
|
|
|
$
|
12,523
|
|
|
$
|
—
|
|
|
$
|
12,523
|
|
|
$
|
—
|
|
Professional services and other
|
—
|
|
|
1,950
|
|
|
1,300
|
|
|
—
|
|
|
650
|
|
|||||
Severance and employee-related benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
14,473
|
|
|
$
|
1,300
|
|
|
$
|
12,523
|
|
|
$
|
650
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
||||
Americas
|
$
|
2,771
|
|
|
$
|
10,548
|
|
Europe
|
1,445
|
|
|
1,639
|
|
||
Asia
|
1,144
|
|
|
336
|
|
||
Corporate
|
409
|
|
|
1,950
|
|
||
Consolidated
|
$
|
5,769
|
|
|
$
|
14,473
|
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
||||
Americas
|
$
|
10,567
|
|
|
$
|
10,548
|
|
Europe
|
9,127
|
|
|
1,639
|
|
||
Asia
|
9,283
|
|
|
336
|
|
||
Corporate
|
12,841
|
|
|
1,950
|
|
||
Consolidated
|
$
|
41,818
|
|
|
$
|
14,473
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Growth (Decline)
|
||||||||||||||||||||
|
Net Sales
|
|
Percentage
of Total
|
|
Net Sales
|
|
Percentage
of Total
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||||
Watches
|
$
|
551.9
|
|
|
80.1
|
%
|
|
$
|
567.2
|
|
|
76.9
|
%
|
|
$
|
(15.3
|
)
|
|
(2.7
|
)%
|
|
(4.1
|
)%
|
Leathers
|
75.7
|
|
|
11.0
|
|
|
93.3
|
|
|
12.6
|
|
|
(17.6
|
)
|
|
(18.9
|
)
|
|
(19.9
|
)
|
|||
Jewelry
|
47.7
|
|
|
6.9
|
|
|
60.2
|
|
|
8.2
|
|
|
(12.5
|
)
|
|
(20.8
|
)
|
|
(22.8
|
)
|
|||
Other
|
13.4
|
|
|
2.0
|
|
|
17.3
|
|
|
2.3
|
|
|
(3.9
|
)
|
|
(22.5
|
)
|
|
(23.6
|
)
|
|||
Total
|
$
|
688.7
|
|
|
100.0
|
%
|
|
$
|
738.0
|
|
|
100.0
|
%
|
|
$
|
(49.3
|
)
|
|
(6.7
|
)%
|
|
(8.0
|
)%
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
Growth (Decline)
|
||||||||||||||||||
|
Net Sales
|
|
Percentage
of Total
|
|
Net Sales
|
|
Percentage
of Total
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||||
Americas
|
$
|
308.1
|
|
|
44.7
|
%
|
|
$
|
361.2
|
|
|
48.9
|
%
|
|
$
|
(53.1
|
)
|
|
(14.7
|
)%
|
|
(15.1
|
)%
|
Europe
|
247.2
|
|
|
35.9
|
|
|
243.2
|
|
|
33.0
|
|
|
4.0
|
|
|
1.6
|
|
|
(2.1
|
)
|
|||
Asia
|
133.4
|
|
|
19.4
|
|
|
133.6
|
|
|
18.1
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.4
|
|
|||
Total
|
$
|
688.7
|
|
|
100.0
|
%
|
|
$
|
738.0
|
|
|
100.0
|
%
|
|
$
|
(49.3
|
)
|
|
(6.7
|
)%
|
|
(8.0
|
)%
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage
As Reported
|
|
Percentage
Constant Currency
|
||||||||
Watches
|
$
|
242.2
|
|
|
$
|
274.3
|
|
|
$
|
(32.1
|
)
|
|
(11.7
|
)%
|
|
(12.1
|
)%
|
Leathers
|
46.2
|
|
|
58.9
|
|
|
(12.7
|
)
|
|
(21.6
|
)
|
|
(22.1
|
)
|
|||
Jewelry
|
15.8
|
|
|
22.4
|
|
|
(6.6
|
)
|
|
(29.5
|
)
|
|
(29.9
|
)
|
|||
Other
|
3.9
|
|
|
5.6
|
|
|
(1.7
|
)
|
|
(30.4
|
)
|
|
(28.6
|
)
|
|||
Total
|
$
|
308.1
|
|
|
$
|
361.2
|
|
|
$
|
(53.1
|
)
|
|
(14.7
|
)%
|
|
(15.1
|
)%
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage
As Reported
|
|
Percentage Constant Currency
|
||||||||
Watches
|
$
|
192.3
|
|
|
$
|
180.7
|
|
|
$
|
11.6
|
|
|
6.4
|
%
|
|
2.5
|
%
|
Leathers
|
17.9
|
|
|
20.2
|
|
|
(2.3
|
)
|
|
(11.4
|
)
|
|
(14.4
|
)
|
|||
Jewelry
|
30.5
|
|
|
34.1
|
|
|
(3.6
|
)
|
|
(10.6
|
)
|
|
(13.5
|
)
|
|||
Other
|
6.5
|
|
|
8.2
|
|
|
(1.7
|
)
|
|
(20.7
|
)
|
|
(25.3
|
)
|
|||
Total
|
$
|
247.2
|
|
|
$
|
243.2
|
|
|
$
|
4.0
|
|
|
1.6
|
%
|
|
(2.1
|
)%
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage
As Reported
|
|
Percentage Constant Currency
|
||||||||
Watches
|
$
|
117.3
|
|
|
$
|
112.1
|
|
|
$
|
5.2
|
|
|
4.6
|
%
|
|
5.2
|
%
|
Leathers
|
11.5
|
|
|
14.2
|
|
|
(2.7
|
)
|
|
(19.0
|
)
|
|
(18.3
|
)
|
|||
Jewelry
|
1.4
|
|
|
3.8
|
|
|
(2.4
|
)
|
|
(63.2
|
)
|
|
(63.2
|
)
|
|||
Other
|
3.2
|
|
|
3.5
|
|
|
(0.3
|
)
|
|
(8.6
|
)
|
|
(8.6
|
)
|
|||
Total
|
$
|
133.4
|
|
|
$
|
133.6
|
|
|
$
|
(0.2
|
)
|
|
(0.1
|
)%
|
|
0.4
|
%
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||||||||||||||
|
Americas
|
|
Europe
|
|
Asia
|
|
Total
|
|
Americas
|
|
Europe
|
|
Asia
|
|
Total
|
||||||||
Full price accessory
|
112
|
|
|
109
|
|
|
61
|
|
|
282
|
|
|
128
|
|
|
122
|
|
|
66
|
|
|
316
|
|
Outlets
|
136
|
|
|
74
|
|
|
46
|
|
|
256
|
|
|
156
|
|
|
73
|
|
|
46
|
|
|
275
|
|
Full priced multi-brand
|
—
|
|
|
8
|
|
|
10
|
|
|
18
|
|
|
—
|
|
|
7
|
|
|
12
|
|
|
19
|
|
Total stores
|
248
|
|
|
191
|
|
|
117
|
|
|
556
|
|
|
284
|
|
|
202
|
|
|
124
|
|
|
610
|
|
|
For the 13 Weeks Ended September 30, 2017
|
|
For the 13 Weeks Ended October 1, 2016
|
|
Growth (Decline)
|
|
Operating Margin %
|
|||||||||||||
|
|
|
Dollars
|
|
Percentage
|
|
2017
|
|
2016
|
|||||||||||
Americas
|
$
|
18.9
|
|
|
$
|
56.4
|
|
|
$
|
(37.5
|
)
|
|
(66.5
|
)%
|
|
6.1
|
%
|
|
15.6
|
%
|
Europe
|
39.3
|
|
|
49.0
|
|
|
(9.7
|
)
|
|
(19.8
|
)
|
|
15.9
|
|
|
20.2
|
|
|||
Asia
|
22.0
|
|
|
23.7
|
|
|
(1.7
|
)
|
|
(7.2
|
)
|
|
16.5
|
|
|
17.7
|
|
|||
Corporate
|
(80.7
|
)
|
|
(97.9
|
)
|
|
17.2
|
|
|
(17.6
|
)
|
|
|
|
|
|||||
Total operating income (loss)
|
$
|
(0.5
|
)
|
|
$
|
31.2
|
|
|
$
|
(31.7
|
)
|
|
(101.6
|
)%
|
|
(0.1
|
)%
|
|
4.2
|
%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
Growth (Decline)
|
||||||||||||||||||
|
Net Sales
|
|
Percentage
of Total
|
|
Net Sales
|
|
Percentage
of Total
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||||
Watches
|
$
|
1,471.1
|
|
|
78.8
|
%
|
|
$
|
1,581.2
|
|
|
75.9
|
%
|
|
$
|
(110.1
|
)
|
|
(7.0
|
)%
|
|
(6.7
|
)%
|
Leathers
|
218.0
|
|
|
11.7
|
|
|
279.0
|
|
|
13.4
|
|
|
(61.0
|
)
|
|
(21.9
|
)
|
|
(21.6
|
)
|
|||
Jewelry
|
139.9
|
|
|
7.5
|
|
|
171.7
|
|
|
8.2
|
|
|
(31.8
|
)
|
|
(18.5
|
)
|
|
(17.8
|
)
|
|||
Other
|
38.4
|
|
|
2.0
|
|
|
51.3
|
|
|
2.5
|
|
|
(12.9
|
)
|
|
(25.1
|
)
|
|
(24.8
|
)
|
|||
Total
|
$
|
1,867.4
|
|
|
100.0
|
%
|
|
$
|
2,083.2
|
|
|
100.0
|
%
|
|
$
|
(215.8
|
)
|
|
(10.4
|
)%
|
|
(10.0
|
)%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
Growth (Decline)
|
||||||||||||||||||
|
Net Sales
|
|
Percentage
of Total
|
|
Net Sales
|
|
Percentage
of Total
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||||
Americas
|
$
|
874.5
|
|
|
46.9
|
%
|
|
$
|
1,042.2
|
|
|
50.0
|
%
|
|
$
|
(167.7
|
)
|
|
(16.1
|
)%
|
|
(16.0
|
)%
|
Europe
|
637.6
|
|
|
34.1
|
|
|
669.1
|
|
|
32.1
|
|
|
(31.5
|
)
|
|
(4.7
|
)
|
|
(3.9
|
)
|
|||
Asia
|
355.3
|
|
|
19.0
|
|
|
371.9
|
|
|
17.9
|
|
|
(16.6
|
)
|
|
(4.5
|
)
|
|
(4.3
|
)
|
|||
Total
|
$
|
1,867.4
|
|
|
100.0
|
%
|
|
$
|
2,083.2
|
|
|
100.0
|
%
|
|
$
|
(215.8
|
)
|
|
(10.4
|
)%
|
|
(10.0
|
)%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||
Watches
|
$
|
681.1
|
|
|
$
|
784.1
|
|
|
$
|
(103.0
|
)
|
|
(13.1
|
)%
|
|
(13.0
|
)%
|
Leathers
|
134.5
|
|
|
176.0
|
|
|
(41.5
|
)
|
|
(23.6
|
)
|
|
(23.6
|
)
|
|||
Jewelry
|
47.2
|
|
|
64.0
|
|
|
(16.8
|
)
|
|
(26.3
|
)
|
|
(26.6
|
)
|
|||
Other
|
11.7
|
|
|
18.1
|
|
|
(6.4
|
)
|
|
(35.4
|
)
|
|
(34.8
|
)
|
|||
Total
|
$
|
874.5
|
|
|
$
|
1,042.2
|
|
|
$
|
(167.7
|
)
|
|
(16.1
|
)%
|
|
(16.0
|
)%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||
Watches
|
$
|
483.7
|
|
|
$
|
488.4
|
|
|
$
|
(4.7
|
)
|
|
(1.0
|
)%
|
|
(0.3
|
)%
|
Leathers
|
48.8
|
|
|
58.7
|
|
|
(9.9
|
)
|
|
(16.9
|
)
|
|
(15.7
|
)
|
|||
Jewelry
|
87.6
|
|
|
98.5
|
|
|
(10.9
|
)
|
|
(11.1
|
)
|
|
(9.8
|
)
|
|||
Other
|
17.5
|
|
|
23.5
|
|
|
(6.0
|
)
|
|
(25.5
|
)
|
|
(25.1
|
)
|
|||
Total
|
$
|
637.6
|
|
|
$
|
669.1
|
|
|
$
|
(31.5
|
)
|
|
(4.7
|
)%
|
|
(3.9
|
)%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
|
|
|
|
|
||||||||
Growth (Decline)
|
|||||||||||||||||
|
Net Sales
|
|
Net Sales
|
|
Dollars
|
|
Percentage As Reported
|
|
Percentage Constant Currency
|
||||||||
Watches
|
$
|
306.5
|
|
|
$
|
308.7
|
|
|
$
|
(2.2
|
)
|
|
(0.7
|
)%
|
|
(0.6
|
)%
|
Leathers
|
34.6
|
|
|
44.3
|
|
|
(9.7
|
)
|
|
(21.9
|
)
|
|
(21.7
|
)
|
|||
Jewelry
|
5.1
|
|
|
9.2
|
|
|
(4.1
|
)
|
|
(44.6
|
)
|
|
(44.6
|
)
|
|||
Other
|
9.1
|
|
|
9.7
|
|
|
(0.6
|
)
|
|
(6.2
|
)
|
|
(4.1
|
)
|
|||
Total
|
$
|
355.3
|
|
|
$
|
371.9
|
|
|
$
|
(16.6
|
)
|
|
(4.5
|
)%
|
|
(4.3
|
)%
|
|
For the 39 Weeks Ended September 30, 2017
|
|
For the 39 Weeks Ended October 1, 2016
|
|
Growth (Decline)
|
|
Operating Margin %
|
|||||||||||||
|
|
|
Dollars
|
|
Percentage
|
|
2017
|
|
2016
|
|||||||||||
Americas
|
$
|
(122.0
|
)
|
|
$
|
168.3
|
|
|
$
|
(290.3
|
)
|
|
(172.5
|
)%
|
|
(13.9
|
)%
|
|
16.2
|
%
|
Europe
|
(33.8
|
)
|
|
109.2
|
|
|
(143.0
|
)
|
|
(131.0
|
)
|
|
(5.3
|
)
|
|
16.3
|
|
|||
Asia
|
(2.7
|
)
|
|
60.5
|
|
|
(63.2
|
)
|
|
(104.5
|
)
|
|
(0.8
|
)
|
|
16.3
|
|
|||
Corporate
|
(317.0
|
)
|
|
(277.0
|
)
|
|
(40.0
|
)
|
|
14.4
|
|
|
|
|
|
|||||
Total operating income (loss)
|
$
|
(475.5
|
)
|
|
$
|
61.0
|
|
|
$
|
(536.5
|
)
|
|
(879.5
|
)%
|
|
(25.5
|
)%
|
|
2.9
|
%
|
Period
|
|
Maximum Ratio
|
July 2, 2017 through and including September 30, 2017
|
|
3.50 to 1.00
|
October 1, 2017 through and including March 31, 2018
|
|
3.25 to 1.00
|
April 1, 2018 through and including September 29, 2018
|
|
3.50 to 1.00
|
September 30, 2018 and thereafter
|
|
3.25 to 1.00
|
Functional Currency
|
|
Contract Currency
|
|
|
||||||
Type
|
|
Amount
|
|
Type
|
|
Amount
|
|
Expiring Through
|
||
Euro
|
|
253.4
|
|
|
U.S. dollar
|
|
291.0
|
|
|
August 2019
|
Canadian dollar
|
|
95.0
|
|
|
U.S. dollar
|
|
73.2
|
|
|
September 2019
|
British pound
|
|
43.5
|
|
|
U.S. dollar
|
|
58.1
|
|
|
September 2019
|
Japanese yen
|
|
4,636.4
|
|
|
U.S. dollar
|
|
42.8
|
|
|
September 2019
|
Mexican peso
|
|
378.6
|
|
|
U.S. dollar
|
|
20.3
|
|
|
June 2018
|
Australian dollar
|
|
21.2
|
|
|
U.S. dollar
|
|
16.5
|
|
|
June 2018
|
U.S. dollar
|
|
41.1
|
|
|
Japanese yen
|
|
4,470.0
|
|
|
November 2018
|
Exhibit
Number
|
|
Document Description
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
10.1(1)(2)
|
|
|
|
|
|
10.2(2)
|
|
|
|
|
|
31.1(1)
|
|
|
|
|
|
31.2(1)
|
|
|
|
|
|
32.1(3)
|
|
|
|
|
|
32.2(3)
|
|
|
|
|
|
101.INS(1)
|
|
XBRL Instance Document.
|
|
|
|
101.SCH(1)
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.DEF(1)
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.CAL(1)
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB(1)
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE(1)
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
FOSSIL GROUP, INC
.
|
|
|
November 9, 2017
|
/S/ JEFFREY N. BOYER
|
|
Jeffrey N. Boyer
|
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal financial and accounting officer duly authorized to sign on behalf of the Registrant)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Fossil Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
November 9, 2017
|
/s/ KOSTA N. KARTSOTIS
|
|
Kosta N. Kartsotis
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Fossil Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
November 9, 2017
|
/S/ JEFFREY N. BOYER
|
|
Jeffrey N. Boyer
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Dated: November 9, 2017
|
By:
|
/s/ KOSTA N. KARTSOTIS
|
|
Name:
|
Kosta N. Kartsotis
|
|
Title:
|
Chief Executive Officer
|
Dated: November 9, 2017
|
By:
|
/S/ JEFFREY N. BOYER
|
|
Name:
|
Jeffrey N. Boyer
|
|
Title:
|
Executive Vice President, Chief Financial Officer and Treasurer
|