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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 2005
FOSSIL, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19848 75-2018505
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(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) Identification No.)
2280 N. Greenville Avenue
Richardson, Texas 75082
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 234-2525.
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 4.02(a) NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A
RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW
On March 16, 2005, Fossil, Inc. (the "Company") issued a press release
reporting that as a result of recent clarifications issued by the Securities and
Exchange Commission, which provided guidance on long-standing, generally
accepted accounting principles related to operating leases, the Company will be
adjusting its previously reported results of operations for its fourth quarter
and year ended January 1, 2005, as previously disclosed in its earnings release
of February 22, 2005. These adjustments will be included in the Company's 2004
Form 10-K Report to be filed on March 17, 2005.
The Company has reviewed its lease accounting practices and based on the
Company's review, and in consultation with its audit committee and its
independent Registered Public Accountants, Deloitte & Touche LLP, the Company
has concluded that it will change its lease accounting practices to conform with
this clarification and will adjust its reported earnings for its fourth quarter
and fiscal year ending January 1, 2005. These adjustments generally arise from
corrections to the Company's previous accounting practices relating to the
extension of its rental expense period to the lease possession date and rent
escalations in computing rent expense for operating leases primarily related to
its retail stores segment. Of the approximate $3.1 million non-cash pretax
expense to be recorded in the fourth quarter of 2004, less than $200,000 is
attributable to the current year and approximately $2.9 million is related to
prior periods. Prior years' financial results will not be restated due to the
immateriality of this issue to the results of operations, cash flows and
statement of financial position for the Company's current year or any individual
prior quarter or year. These adjustments will not affect historical or future
cash flows or timing of payments under the related leases.
Additionally, subsequent to the Company's fourth quarter and full year
earnings release on February 22, 2005, the Company has reached a tentative
settlement on a supplier's claim relating to the production of certain watches.
As a result of this tentative settlement, the Company can now reasonably
estimate this contingent liability that existed as of the Company's year ended
January 1, 2005. Therefore, the Company will record a pretax charge of $875,000
in the fourth quarter of 2004.
A copy of the press release is furnished as Exhibit 99.1 to this Current
Report on Form 8-K.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 Press Release, dated March 16, 2005, announcing certain revisions to the
financial results for the quarter and year ended January 1, 2005.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 16, 2005
FOSSIL, INC.
By: /s/ Mike L. Kovar
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Name: Mike L. Kovar
Title: Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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99.1 Press Release, dated March 16, 2005, announcing certain revisions
to the financial results for the quarter and year ended
January 1, 2005.