Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 26, 2016 | Apr. 25, 2016 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 26, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WOLVERINE WORLD WIDE INC /DE/ | |
Entity Central Index Key | 110,471 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 99,553,536 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 577.6 | $ 631.4 |
Cost of goods sold | 344.9 | 370 |
Restructuring costs | 3.9 | 0 |
Gross profit | 228.8 | 261.4 |
Selling, general and administrative expenses | 184.1 | 198.8 |
Restructuring and impairment costs (gain) | 10.7 | (1) |
Operating profit | 34 | 63.6 |
Other expenses: | ||
Interest expense, net | 8.5 | 9.5 |
Other income, net | (0.1) | (1) |
Total other expenses | 8.4 | 8.5 |
Earnings before income taxes | 25.6 | 55.1 |
Income tax expense | 8 | 15 |
Net earnings | 17.6 | 40.1 |
Less: net earnings attributable to noncontrolling interest | 0.2 | 0 |
Net earnings attributable to Wolverine World Wide, Inc. | $ 17.4 | $ 40.1 |
Net earnings per share (see Note 3): | ||
Basic | $ 0.18 | $ 0.40 |
Diluted | $ 0.18 | $ 0.39 |
Comprehensive income | $ 15.9 | $ 30.2 |
Less: comprehensive loss attributable to noncontrolling interest | (0.1) | (0.2) |
Comprehensive income attributable to Wolverine World Wide, Inc. | $ 16 | $ 30.4 |
Cash dividends declared per share | $ 0.06 | $ 0.06 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 158.2 | $ 194.1 | $ 121.3 |
Accounts receivable, less allowances: March 26, 2016 – $42.7; January 2, 2016 – $44.4; March 28, 2015 – $40.8 | 326 | 298.9 | 357.2 |
Inventories: | |||
Finished products, net | 462.6 | 448 | 404.3 |
Raw materials and work-in-process, net | 18.2 | 18.6 | 15.5 |
Total inventories | 480.8 | 466.6 | 419.8 |
Deferred income taxes | 0 | 0 | 27.9 |
Prepaid expenses and other current assets | 40.3 | 54.2 | 61.9 |
Total current assets | 1,005.3 | 1,013.8 | 988.1 |
Property, plant and equipment: | |||
Gross cost | 440.5 | 431.5 | 420.3 |
Accumulated depreciation | (305.2) | (299.9) | (285) |
Property plant and equipment net | 135.3 | 131.6 | 135.3 |
Other assets: | |||
Goodwill | 430.2 | 429.1 | 434.1 |
Indefinite-lived intangibles | 685.4 | 685.4 | 690.5 |
Amortizable intangibles, net | 93.8 | 97.3 | 108.7 |
Deferred income taxes | 3 | 3.7 | 2.7 |
Other | 71.6 | 73.5 | 68.7 |
Total other assets | 1,284 | 1,289 | 1,304.7 |
Total assets | 2,424.6 | 2,434.4 | 2,428.1 |
Current liabilities: | |||
Accounts payable | 105.9 | 199.7 | 96.4 |
Accrued salaries and wages | 18.1 | 28.5 | 18.1 |
Other accrued liabilities | 123.1 | 108.2 | 121.3 |
Current maturities of long-term debt | 16.9 | 16.9 | 42 |
Borrowings under revolving credit agreement | 60 | 0 | 14.5 |
Total current liabilities | 324 | 353.3 | 292.3 |
Long-term debt, less current maturities | 793.4 | 792.9 | 788.4 |
Accrued pension liabilities | 110.2 | 109.6 | 129.1 |
Deferred income taxes | 177.4 | 178.6 | 220 |
Other liabilities | 38.5 | 30.3 | 26.9 |
Wolverine World Wide, Inc. stockholders’ equity: | |||
Common Stock - par value $1, authorized 320,000,000 shares; shares issued (including shares in treasury): March 26, 2016 - 105,567,828 shares; January 2, 2016 - 103,915,928 shares; March 28, 2015 - 103,856,676 shares | 105.6 | 103.9 | 103.9 |
Additional paid-in capital | 82.2 | 75.9 | 54.8 |
Retained earnings | 962.3 | 950.8 | 886.3 |
Accumulated other comprehensive loss | (57.5) | (56.1) | (59.2) |
Cost of shares in treasury: March 26, 2016 - 5,892,172; January 2, 2016 - 5,457,726 shares; March 28, 2015 - 668,988 | (118.2) | (110.8) | (18.7) |
Total Wolverine World Wide, Inc. stockholders’ equity | 974.4 | 963.7 | 967.1 |
Noncontrolling interest | 6.7 | 6 | 4.3 |
Total stockholders’ equity | 981.1 | 969.7 | 971.4 |
Total liabilities and stockholders’ equity | $ 2,424.6 | $ 2,434.4 | $ 2,428.1 |
Consolidated Condensed Balance4
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Statement of Financial Position [Abstract] | |||
Accounts receivable allowance | $ 42.7 | $ 44.4 | $ 40.8 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized | 320,000,000 | 320,000,000 | 320,000,000 |
Common stock, shares issued (including treasury shares) | 105,567,828 | 103,915,928 | 103,856,676 |
Treasury shares | 5,892,172 | 5,457,726 | 668,988 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 17.6 | $ 40.1 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 9.8 | 10.9 |
Deferred income taxes | 0.9 | 2.3 |
Stock-based compensation expense | 7.6 | 6.7 |
Excess tax benefits from stock-based compensation | (0.1) | (3.4) |
Pension and SERP expense | 2.4 | 6.4 |
Restructuring and impairment costs (gain) | 14.6 | (1) |
Cash payments related to restructuring costs | (6.7) | (3.5) |
Other | (4) | 5.3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (25.2) | (49.7) |
Inventories | (15.7) | (11.3) |
Other operating assets | 12.5 | 4.6 |
Accounts payable | (94.1) | (51.8) |
Other operating liabilities | 1.5 | 1.4 |
Net cash used in operating activities | (78.9) | (43) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (9.9) | (6.4) |
Other | (0.6) | (0.7) |
Net cash used in investing activities | (10.5) | (7.1) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreement | 60 | 14.5 |
Payments on long-term debt | 0 | (58) |
Cash dividends paid | (6) | (6.1) |
Purchase of common stock for treasury | (0.1) | 0 |
Purchases of shares under employee stock plans | (4.2) | (7.4) |
Proceeds from the exercise of stock options | 1.9 | 5.8 |
Excess tax benefits from stock-based compensation | 0.1 | 3.4 |
Contributions from noncontrolling interests | 0.8 | 0 |
Net cash provided by (used in) financing activities | 52.5 | (47.8) |
Effect of foreign exchange rate changes | 1 | (4.6) |
Decrease in cash and cash equivalents | (35.9) | (102.5) |
Cash and cash equivalents at beginning of the year | 194.1 | 223.8 |
Cash and cash equivalents at end of the period | $ 158.2 | $ 121.3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Wolverine World Wide, Inc. (the “Company”) is a leading designer, manufacturer and marketer of a broad range of quality casual footwear and apparel; performance outdoor and athletic footwear and apparel; children’s footwear, industrial work shoes, boots and apparel; and uniform shoes and boots. The Company’s portfolio of owned and licensed brands includes: Bates ® , Cat ® , Chaco ® , Harley-Davidson ® , Hush Puppies ® , HyTest ® , Keds ® , Merrell ® , Saucony ® , Sebago ® , Sperry ® , Stride Rite ® and Wolverine ® . Third-party distributors, licensees and joint ventures extend the global reach of the Company’s brand portfolio. The Company also operates a consumer-direct division that markets both its own brands and branded footwear and apparel from other manufacturers, as well as a leathers division that markets Wolverine Performance Leathers™ . Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete presentation of the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included in the accompanying financial statements. For further information, refer to the consolidated financial statements and footnotes included in the Company’s 2015 Form 10-K. Revenue Recognition Revenue is recognized on the sale of products manufactured or sourced by the Company when the related goods have been shipped, legal title has passed to the customer and collectability is reasonably assured. Revenue generated through licensees and distributors involving products bearing the Company’s trademarks is recognized as earned according to stated contractual terms upon either the purchase or shipment of branded products by licensees and distributors. Retail store revenue is recognized at time of sale. The Company records provisions for estimated sales returns and allowances at the time of sale based on historical rates of returns and allowances and specific identification of outstanding returns not yet received from customers. However, estimates of actual returns and allowances in any future period are inherently uncertain and actual returns and allowances may differ from these estimates. If actual or expected future returns and allowances were significantly greater or less than established reserves, a reduction or increase to net revenues would be recorded in the period this determination was made. Cost of Goods Sold Cost of goods sold includes the actual product costs, including inbound freight charges and certain outbound freight charges, purchasing, sourcing, inspection and receiving costs. Warehousing costs are included in selling, general and administrative expenses. Seasonality The Company’s business is subject to seasonal influences and the Company’s fiscal year has 12 weeks in each of the first three fiscal quarters and, depending on the fiscal calendar, 16 or 17 weeks in the fourth fiscal quarter. Both of these factors can cause significant differences in revenue, earnings and cash flows from quarter to quarter; however, the differences have followed a consistent pattern in recent years. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , as amended by ASUs 2015-14, 2016-08 and 2016-10, that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The effective date is annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the potential impacts of the new standards on its existing revenue recognition policies and procedures. In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The Company adopted ASU 2014-12 in the first quarter of 2016 on a prospective basis for awards issued after the effective date. ASU 2014-12 did not have, nor does the Company believe it will, have a material impact on its existing stock-based compensation plans. In August 2014, FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires that an entity’s management evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company adopted ASU 2014-15 in the first quarter of 2016 and it did not have a significant impact on its quarterly reporting process. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the debt. ASU 2015-15 allows an entity to present debt issuance costs associated with a revolving line of credit arrangement as an asset, regardless of whether a balance is outstanding. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03 or ASU 2015-15. The Company adopted these ASUs in the first quarter of 2016 on a retrospective basis. The adoption of ASU 2015-03 resulted in the reclassification of $10.2 million and $12.4 million of deferred financing costs associated with its long-term debt from deferred financing costs to long-term debt as of January 2, 2016 and March 28, 2015, respectively. In accordance with ASU 2015-15, the Company elected to continue to present its debt issuance costs related to its revolving line of credit as an asset. Due to the adoption of this standard, the Company now includes these deferred financing costs in other noncurrent assets. The prior period disclosures have been restated to conform to the current year presentation. The new standards did not affect the Company’s results of operations or cash flows. In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires that an entity measure inventory at the lower of cost and net realizable value. This ASU does not apply to inventory measured using last-in, first-out. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company does not expect the new standard to have a significant impact on its consolidated financial position, results of operations or cash flows. In January 2016, FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of financial statements. ASU 2016-01 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the potential impacts of the new standard on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases ("ASU 2016-02") that updates the principles for lease accounting. The core principle of ASU 2016-02 is that a lessee shall recognize a lease asset and lease liability in its statement of financial position. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company is evaluating the impacts of the new standard on its existing leases. In March 2016, FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”). ASU 2016-05 clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The Company is evaluating the impacts of the new standard on its share-based payment accounting. In March 2016, FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 seeks to provide simplification to issues of share-based payment awards in relation to income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The Company is evaluating the impacts of the new standard on its share-based payment accounting. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company calculates earnings per share in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”). ASC 260 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. Under the guidance in ASC 260, the Company’s unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and must be included in the computation of earnings per share pursuant to the two-class method. The following table sets forth the computation of basic and diluted earnings per share. 12 Weeks Ended (In millions, except per share data) March 26, March 28, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 17.4 $ 40.1 Adjustment for earnings allocated to non-vested restricted common stock (0.4 ) (0.8 ) Net earnings used in calculating basic earnings per share 17.0 39.3 Adjustment for earnings reallocated from non-vested restricted common stock — 0.1 Net earnings used in calculating diluted earnings per share $ 17.0 $ 39.4 Denominator: Weighted average shares outstanding 99.2 102.5 Adjustment for non-vested restricted common stock (3.5 ) (3.6 ) Shares used in calculating basic earnings per share 95.7 98.9 Effect of dilutive stock options 0.5 1.9 Shares used in calculating diluted earnings per share 96.2 100.8 Net earnings per share: Basic $ 0.18 $ 0.40 Diluted $ 0.18 $ 0.39 For the 12 weeks ended March 26, 2016 and March 28, 2015, options relating to 5,389,794 and 1,121,413 shares of common stock outstanding, respectively, have not been included in the denominator for the computation of diluted earnings per share because they were anti-dilutive. |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangibles | 3 Months Ended |
Mar. 26, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangibles | GOODWILL AND INDEFINITE-LIVED INTANGIBLES The changes in the carrying amount of goodwill and indefinite-lived intangibles are as follows: (In millions) Goodwill Indefinite-lived intangibles Total Balance at January 3, 2015 $ 438.8 $ 690.5 $ 1,129.3 Foreign currency translation effects (4.7 ) — (4.7 ) Balance at March 28, 2015 $ 434.1 $ 690.5 $ 1,124.6 Balance at January 2, 2016 $ 429.1 $ 685.4 $ 1,114.5 Foreign currency translation effects 1.1 — 1.1 Balance at March 26, 2016 $ 430.2 $ 685.4 $ 1,115.6 During the fourth quarter of 2015, the results of our indefinite-lived intangible impairment test based on the Company's outlook for future operating results gave rise to a reduction in the excess of fair value over the carrying value for the Stride Rite ® and Sperry ® trade name indefinite-lived intangible assets. The operating results for the first quarter of fiscal 2016 met the Company’s financial plan; however, if future operating results were to not meet its revenue and profitability projections, the Company may record a non-cash indefinite-lived intangible asset impairment charge in future periods. The carrying value of the Company’s Stride Rite ® and Sperry ® trade name indefinite-lived intangible assets was $ 15.0 million and $ 586.8 million , respectively, as of March 26, 2016 . |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 3 Months Ended |
Mar. 26, 2016 | |
Accounts Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ACCOUNTS RECEIVABLE The Company has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis that expires in the fourth quarter of fiscal 2017. Under the agreement, up to $ 200.0 million of accounts receivable may be sold to the financial institution and remain outstanding at any point in time. After the sale, the Company does not retain any interests in the accounts receivable and removes them from its consolidated balance sheet, but continues to service and collect the outstanding accounts receivable on behalf of the financial institution. The Company recognizes a servicing asset or servicing liability, initially measured at fair value, each time it undertakes an obligation to service the accounts receivable under the agreement. The fair value of this obligation resulted in a nominal servicing liability for all periods presented. For receivables sold under the agreement, 90 % of the stated amount is paid for in cash to the Company at the time of sale, with the remainder paid to the Company at the completion of the collection process. This program reduced the Company's accounts receivable by $ 93.1 million , $ 77.6 million and $ 91.3 million as of March 26, 2016 , January 2, 2016 and March 28, 2015 , respectively. The Company sold a total of $ 158.7 million and $ 157.3 million of accounts receivable at their stated amounts, less a $ 0.4 million and $ 0.3 million fee charged by the financial institution, during the 12 weeks ended March 26, 2016 and March 28, 2015 , respectively. The fee is recorded in other expense. Net proceeds of this program are classified in operating activities in the consolidated condensed statements of cash flows. |
Debt
Debt | 3 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consists of the following obligations: (In millions) March 26, January 2, March 28, Term Loan A Facility, due July 13, 2020 $ 444.4 $ 444.4 $ 467.2 Public Bonds, 6.125% interest, due October 15, 2020 375.0 375.0 375.0 Borrowings under revolving credit agreement 60.0 — 14.5 Capital lease obligation 0.6 0.6 0.6 Unamortized debt issuance costs (9.7 ) (10.2 ) (12.4 ) Total debt $ 870.3 $ 809.8 $ 844.9 On July 13, 2015, the Company amended its credit agreement (as amended, the "Credit Agreement"). The amendment replaced the previous term loan facility and revolving credit facility with a new $ 450.0 million Term Loan A Facility and a new $ 500.0 million Revolving Credit Facility, and extended the maturity date of these facilities to July 13, 2020. The Credit Agreement’s debt capacity is limited to an aggregate debt amount (including outstanding term loan principal and revolver commitment amounts in addition to permitted incremental debt) not to exceed $ 1,425.0 million , unless certain specified conditions set forth in the Credit Agreement are met. The Revolving Credit Facility allows the Company to borrow up to an aggregate amount of $500.0 million , which includes a $ 200.0 million foreign currency subfacility under which borrowings may be made, subject to certain conditions, in Canadian dollars, British pounds, euros, Hong Kong dollars, Swedish kronor, Swiss francs and such additional currencies as are determined in accordance with the Credit Agreement. The Revolving Credit Facility also includes a $50.0 million swingline subfacility and a $50.0 million letter of credit subfacility. The Company had outstanding letters of credit under the Revolving Credit Facility of $ 3.8 million , $ 3.8 million and $ 3.6 million as of March 26, 2016 , January 2, 2016 and March 28, 2015 , respectively. These outstanding letters of credit reduce the borrowing capacity under the Revolving Credit Facility. The interest rates applicable to amounts outstanding under the Term Loan A Facility and to U.S. dollar denominated amounts outstanding under the Revolving Credit Facility will be, at the Company’s option, either (1) the Alternate Base Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 0.25% to 1.00% , or (2) the Eurocurrency Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 1.25% to 2.00% (all capitalized terms used in this sentence are as defined in the Credit Agreement). The Company has two interest rate swap arrangements that reduce the Company’s exposure to fluctuations in interest rates on its variable rate debt. At March 26, 2016 , Term Loan A Facility had a weighted-average interest rate of 2.16 %. The obligations of the Company pursuant to the Credit Agreement are guaranteed by substantially all of the Company’s material domestic subsidiaries and secured by substantially all of the personal and real property of the Company and its material domestic subsidiaries, subject to certain exceptions. The Credit Agreement also contains certain affirmative and negative covenants, including covenants that limit the ability of the Company and its Restricted Subsidiaries to, among other things: incur or guarantee indebtedness; incur liens; pay dividends or repurchase stock; enter into transactions with affiliates; consummate asset sales, acquisitions or mergers; prepay certain other indebtedness; or make investments, as well as covenants restricting the activities of certain foreign subsidiaries of the Company that hold intellectual property related assets. Further, the Credit Agreement requires compliance with the following financial covenants: a maximum Consolidated Leverage Ratio; a maximum Consolidated Secured Leverage Ratio; and a minimum Consolidated Interest Coverage Ratio (all capitalized terms used in this paragraph are as defined in the Credit Agreement). As of March 26, 2016 , the Company was in compliance with all covenants and performance ratios under the Credit Agreement. The Company has $ 375.0 million of senior notes outstanding that may be traded in the public market (the “Public Bonds”) that are due on October 15, 2020. The Public Bonds bear interest at 6.125% with the related interest payments due semi-annually. The Public Bonds are guaranteed by substantially all of the Company’s domestic subsidiaries. The Company has various foreign revolving line of credit facilities with aggregate available borrowings of $ 7.0 million that are uncommitted and, therefore, each borrowing against the applicable facility is subject to approval by the lender. There were no borrowings against these facilities for all periods presented. The Company has a capital lease obligation with payments scheduled to continue through February 2022. The Company included in interest expense the amortization of deferred financing costs of $ 0.7 million and $1.0 million for the 12 weeks ended March 26, 2016 and March 28, 2015 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 26, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) (“AOCI”) represents net earnings and any revenue, expenses, gains and losses that, under U.S. GAAP, are excluded from net earnings and recognized directly as a component of stockholders’ equity. The change in AOCI during the 12 weeks ended March 26, 2016 and March 28, 2015 is as follows: (In millions) Foreign currency translation adjustments Foreign exchange contracts Interest rate swaps Pension adjustments Total Balance of AOCI as of January 3, 2015 $ (16.9 ) $ 8.6 $ 0.4 $ (41.6 ) $ (49.5 ) Other comprehensive income (loss) before reclassifications (1) (17.4 ) 7.1 (0.7 ) — (11.0 ) Amounts reclassified from AOCI — (2.5 ) (2) — 4.8 (4) 2.3 Income tax expense (benefit) — 0.7 — (1.7 ) (1.0 ) Net reclassifications — (1.8 ) — 3.1 1.3 Net current-period other comprehensive income (loss) (1) (17.4 ) 5.3 (0.7 ) 3.1 (9.7 ) Balance of AOCI as of March 28, 2015 $ (34.3 ) $ 13.9 $ (0.3 ) $ (38.5 ) $ (59.2 ) Balance of AOCI as of January 2, 2016 $ (47.3 ) $ 6.4 $ (2.4 ) $ (12.8 ) $ (56.1 ) Other comprehensive income (loss) before reclassifications (1) 5.0 (1.9 ) (4.2 ) — (1.1 ) Amounts reclassified from AOCI — (1.8 ) (2) 0.3 (3) 1.1 (4) (0.4 ) Income tax expense (benefit) — 0.5 (0.1 ) (0.3 ) 0.1 Net reclassifications — (1.3 ) 0.2 0.8 (0.3 ) Net current-period other comprehensive income (loss) (1) 5.0 (3.2 ) (4.0 ) 0.8 (1.4 ) Balance of AOCI as of March 26, 2016 $ (42.3 ) $ 3.2 $ (6.4 ) $ (12.0 ) $ (57.5 ) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts reclassified are included in cost of goods sold. (3) Amounts reclassified are included in interest expense. (4) Amounts reclassified are included in the computation of net pension expense. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Mar. 26, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments and Risk Management | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. ASC 820 requires fair value measurements to be classified and disclosed in one of the following three categories: Level 1: Fair value is measured using quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: Fair value is measured using either direct or indirect inputs, other than quoted prices included within Level 1, which are observable for similar assets or liabilities. Level 3: Fair value is measured using valuation techniques in which one or more significant inputs are unobservable. The Company’s financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, foreign currency forward exchange contracts, interest rate swap arrangements, borrowings under the Revolving Credit Facility and long-term debt. The carrying amount of the Company’s financial instruments is historical cost, which approximates fair value, except for the interest rate swaps and foreign currency forward exchange contracts, which are carried at fair value. The carrying value and the fair value of the Company’s long-term debt, excluding capital leases, are as follows: (In millions) March 26, 2016 January 2, 2016 March 28, 2015 Carrying value $ 809.7 $ 809.2 $ 829.8 Fair value 847.0 836.3 877.8 The fair value of the fixed rate debt was based on third-party quotes (Level 2). The fair value of the variable rate debt was calculated by discounting the future cash flows to its present value using a discount rate based on the risk-free rate of the same maturity (Level 3). The Company follows ASC 815, which is intended to improve transparency in financial reporting and requires that all derivative instruments be recorded on the consolidated balance sheets at fair value by establishing criteria for designation and effectiveness of hedging relationships. The Company utilizes foreign currency forward exchange contracts to manage the volatility associated primarily with U.S. dollar inventory purchases made by non-U.S. wholesale operations in the normal course of business. These foreign currency forward exchange hedge contracts extend out to a maximum of 349 days, 349 days and 370 days, as of March 26, 2016 , January 2, 2016 and March 28, 2015 , respectively. The Company also utilizes foreign currency forward exchange contracts that are not designated as hedging instruments to manage foreign currency translation exposure. Foreign currency derivatives not designated as hedging instruments are offset by foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The Company has two interest rate swap arrangements which exchange floating rate for fixed rate interest payments over the life of the agreements without the exchange of the underlying notional amounts. These derivative instruments, which, unless otherwise terminated, will mature on October 6, 2017 and July 13, 2020 , have been designated as cash flow hedges of the debt. The notional amounts of the interest rate swap arrangements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The Company does not hold or issue financial instruments for trading purposes. The notional amounts of the Company’s derivative instruments are as follows: (Dollars in millions) March 26, 2016 January 2, 2016 March 28, 2015 Foreign exchange contracts: Hedge contracts $ 162.5 $ 192.6 $ 136.8 Non-hedge contracts 13.5 23.2 — Interest rate swaps (1) 583.9 609.7 386.6 (1) Includes a forward starting interest rate swap with a notional amount of $ 288.8 million , which has an effective date of October 17, 2016 . The following table sets forth financial assets and liabilities measured at fair value in the consolidated balance sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy. Fair Value Measurements Quoted Prices With Other Observable Inputs (Level 2) (In millions) March 26, 2016 January 2, 2016 March 28, 2015 Financial assets: Foreign exchange contracts - hedge $ 2.3 $ 6.7 $ 10.4 Foreign exchange contracts - non-hedge — 0.5 — Interest rate swap — 0.2 — Financial liabilities: Foreign exchange contracts - hedge $ 1.4 $ — $ — Foreign exchange contracts - non-hedge — 0.1 — Interest rate swap 9.8 3.9 0.4 The fair value of the foreign currency forward exchange contracts represents the estimated receipts or payments necessary to terminate the contracts. Hedge effectiveness is evaluated by the hypothetical derivative method. Any hedge ineffectiveness is reported within the Cost of goods sold line item in the consolidated statements of operations. Hedge ineffectiveness was not material to the Company’s consolidated condensed financial statements for the 12 weeks ended March 26, 2016 or March 28, 2015 . If, in the future, the foreign exchange contracts are determined to be ineffective hedges or terminated before their contractual termination dates, the Company would be required to reclassify into earnings all or a portion of the unrealized amounts related to the cash flow hedges that are currently included in AOCI within stockholders’ equity. The differential paid or received on the interest rate swap arrangements is recognized as interest expense. In accordance with ASC 815, the Company has formally documented the relationship between the interest rate swaps and the variable rate borrowings, as well as its risk management objective and strategy for undertaking the hedge transaction. This process included linking the derivative to the specific liability or asset on the balance sheet. The Company also assessed at the hedges’ inception, and continues to assess on an ongoing basis, whether the derivatives used in the hedging transaction are highly effective in offsetting changes in the cash flows of the hedged item. The effective portion of unrealized gains (losses) is deferred as a component of AOCI and will be recognized in earnings at the time the hedged item affects earnings. Any ineffective portion of the change in fair value will be immediately recognized in earnings. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). The Company recognized compensation expense of $ 7.6 million and related income tax benefits of $ 2.6 million for grants under its stock-based compensation plans for the 12 weeks ended March 26, 2016 . The Company recognized compensation expense of $ 6.7 million and related income tax benefits of $ 2.2 million for grants under its stock-based compensation plans for the 12 weeks ended March 28, 2015 . Stock-based compensation expense recognized in the consolidated condensed statements of operations and comprehensive income is based on awards ultimately expected to vest and, as such, has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. The Company estimated the fair value of employee stock options on the date of grant using the Black-Scholes model. The estimated weighted average fair value for each option granted during the 12 weeks ended March 26, 2016 and March 28, 2015 was $ 3.27 and $ 6.30 , respectively, with the following weighted average assumptions: 12 Weeks Ended March 26, March 28, Expected market price volatility (1) 27.1 % 28.8 % Risk-free interest rate (2) 1.0 % 1.3 % Dividend yield (3) 1.4 % 0.9 % Expected term (4) 4 years 4 years (1) Based on historical volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over the four years prior to the grant. (2) Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. (3) Represents the Company’s estimated cash dividend yield for the expected term. (4) Represents the period of time that options granted are expected to be outstanding. As part of the determination of the expected term, the Company concluded that all employee groups exhibit similar exercise and post-vesting termination behavior. The Company issued 2,090,153 and 1,746,536 shares of common stock in connection with new restricted stock grants made and the exercise of stock options during the 12 weeks ended March 26, 2016 and March 28, 2015 , respectively. During the 12 weeks ended March 26, 2016 and March 28, 2015 , the Company canceled 200,215 and 143,010 shares, respectively, of common stock issued under restricted stock awards as a result of forfeitures. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 26, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | RETIREMENT PLANS The following is a summary of net pension and Supplemental Executive Retirement Plan expense recognized by the Company: 12 Weeks Ended (In millions) March 26, March 28, Service cost pertaining to benefits earned during the period $ 1.5 $ 2.1 Interest cost on projected benefit obligations 4.4 4.2 Expected return on pension assets (4.6 ) (4.7 ) Net amortization loss 1.1 4.8 Net pension expense $ 2.4 $ 6.4 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 26, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company maintains certain strategic management and operational activities in overseas subsidiaries, and its foreign earnings are taxed at rates that are generally lower than the U.S. federal statutory income tax rate. A significant amount of the Company’s earnings are generated by its Canadian, European and Asia Pacific subsidiaries and, to a lesser extent, in other foreign jurisdictions that are not subject to income tax. The Company has not provided for U.S. taxes for earnings generated in foreign jurisdictions because it plans to reinvest these earnings indefinitely outside the U.S. However, if certain foreign earnings previously treated as permanently reinvested are repatriated, the additional U.S. tax liability could have a material adverse effect on the Company’s after-tax results of operations, financial position and cash flows. The Company’s effective tax rate for the 12 weeks ended March 26, 2016 and March 28, 2015 was 31.4 % and 27.3 %, respectively. The higher effective tax rate in the current year period reflects a shift in income between tax jurisdictions with differing tax rates. The Company is subject to periodic audits by domestic and foreign tax authorities. Currently, the Company is undergoing routine periodic audits in both domestic and foreign tax jurisdictions. It is reasonably possible that the amounts of unrecognized tax benefits could change in the next 12 months as a result of the audits; however, any payment of tax is not expected to be significant to the consolidated financial statements. The Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2011 in the majority of tax jurisdictions. |
Litigation and Contingencies
Litigation and Contingencies | 3 Months Ended |
Mar. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | LITIGATION AND CONTINGENCIES The Company is involved in various environmental claims and other legal actions arising in the normal course of business. The environmental claims include sites where the U.S. Environmental Protection Agency has notified the Company that it is a potentially responsible party with respect to environmental remediation. These remediation claims are subject to ongoing environmental impact studies, assessment of remediation alternatives, allocation of costs between responsible parties and concurrence by regulatory authorities and have not yet advanced to a stage where the Company’s liability is fixed. However, after taking into consideration legal counsel’s evaluation of all actions and claims against the Company, it is management’s opinion that the outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. The Company is also involved in routine non-environmental litigation incidental to its business and is a party to legal actions and claims, including, but not limited to, those related to employment and intellectual property. Some of the legal proceedings include claims for compensatory as well as punitive damages. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the meritorious legal defenses available and liabilities that have been recorded along with applicable insurance, it is management’s opinion that the outcome of these items will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Minimum future royalty and advertising obligations for the fiscal periods subsequent to March 26, 2016 under the terms of certain licenses held by the Company are as follows: (In millions) 2016 2017 2018 2019 2020 Thereafter Minimum royalties $ 1.5 $ 1.8 $ 1.4 $ 1.5 $ 1.5 $ — Minimum advertising 3.9 3.2 3.3 3.4 3.5 7.4 Minimum royalties are based on both fixed obligations and assumptions regarding the Consumer Price Index. Royalty obligations in excess of minimum requirements are based upon future sales levels. In accordance with these agreements, the Company incurred royalty expense of $ 0.4 million and $ 0.5 million for the 12 weeks ended March 26, 2016 and March 28, 2015 , respectively. The terms of certain license agreements also require the Company to make advertising expenditures based on the level of sales of the licensed products. In accordance with these agreements, the Company incurred advertising expense of $ 0.7 million and $ 0.8 million for the 12 weeks ended March 26, 2016 and March 28, 2015 , respectively. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 26, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS During the first quarter of fiscal 2016, the Company’s portfolio of brands was realigned into the following four operating segments, which the Company has determined to be reportable operating segments. • Wolverine Outdoor & Lifestyle Group , consisting of Merrell ® footwear and apparel, Cat ® footwear, Hush Puppies ® footwear and apparel, Chaco ® footwear, Sebago ® footwear and apparel and Cushe ® footwear; • Wolverine Boston Group , consisting of Sperry ® footwear and apparel, Saucony ® footwear and apparel and Keds ® footwear and apparel; • Wolverine Heritage Group , consisting of Wolverine ® footwear and apparel, Bates ® uniform footwear, Harley-Davidson ® footwear and HyTest ® safety footwear; and • Wolverine Multi-Brand Group , consisting of Stride Rite ® footwear and apparel and the Company's multi-brand consumer-direct businesses. The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. Reported revenue for the reportable operating segments includes revenue from the sale of branded footwear, apparel and accessories to third-party customers; revenue from third-party licensees and distributors; and revenue from the Company’s consumer-direct businesses. The Company also reports “Other” and “Corporate” categories. The Other category consists of the Company’s leather marketing operations and sourcing operations that include third-party commission revenues. The Corporate category consists of unallocated corporate expenses, including restructuring and impairment costs. The Company’s operating segments are determined based on how the Company internally reports and evaluates financial information used to make operating decisions. The operating segment managers all report directly to the chief operating decision maker. Company management uses various financial measures to evaluate the performance of the reportable operating segments. The following is a summary of certain key financial measures for the respective fiscal periods indicated. All prior period amounts have been restated to reflect the new reportable operating segments. 12 Weeks Ended (In millions) March 26, March 28, Revenue: Wolverine Outdoor & Lifestyle Group $ 217.7 $ 231.1 Wolverine Boston Group 209.1 234.3 Wolverine Heritage Group 71.8 81.4 Wolverine Multi-Brand Group 68.4 71.9 Other 10.6 12.7 Total $ 577.6 $ 631.4 Operating profit (loss): Wolverine Outdoor & Lifestyle Group $ 48.8 $ 54.7 Wolverine Boston Group 27.7 37.3 Wolverine Heritage Group 8.5 11.8 Wolverine Multi-Brand Group (1.4 ) (1.7 ) Other 0.5 1.2 Corporate (50.1 ) (39.7 ) Total $ 34.0 $ 63.6 (In millions) March 26, January 2, March 28, Total assets: Wolverine Outdoor & Lifestyle Group $ 494.7 $ 444.2 $ 485.2 Wolverine Boston Group 1,328.0 1,324.2 1,344.6 Wolverine Heritage Group 154.2 169.9 149.6 Wolverine Multi-Brand Group 188.2 204.3 208.3 Other 29.8 23.9 30.7 Corporate 229.7 267.9 209.7 Total $ 2,424.6 $ 2,434.4 $ 2,428.1 Goodwill: Wolverine Outdoor & Lifestyle Group $ 129.7 $ 130.4 $ 130.7 Wolverine Boston Group 258.0 256.2 260.8 Wolverine Heritage Group 16.5 16.5 16.5 Wolverine Multi-Brand Group 26.0 26.0 26.1 Total $ 430.2 $ 429.1 $ 434.1 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 26, 2016 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | RESTRUCTURING ACTIVITIES 2014 Plan On July 9, 2014, the Board of Directors of the Company approved a realignment of the Company’s consumer-direct operations (the “2014 Plan”). As a part of the 2014 Plan, the Company closed retail stores, consolidated certain consumer-direct support functions and implemented certain other organizational changes. The Company completed the 2014 Plan during the first quarter of fiscal 2016. Costs incurred related to the 2014 Plan have been recorded within the Corporate category. The cumulative costs incurred is $ 49.5 million , with $ 6.5 million recorded in the restructuring costs line item as a component of cost of goods sold, and $ 43.0 million recorded in the restructuring and impairment costs (gain) line item as a component of operating expenses. Approximately $ 23.0 million represents non-cash charges. The Company expects annual pretax benefits of approximately $ 16.0 million as a result of the 2014 Plan. The Company closed 136 retail stores in connection with the 2014 Plan. The Company estimates the remaining restructuring reserve will be settled during the remainder of fiscal 2016. The following is a summary of the activity during the 12 weeks ended March 26, 2016 and March 28, 2015, with respect to a reserve established by the Company in connection with the 2014 Plan, by category of costs. (In millions) Severance and employee related Impairment of property and equipment Costs associated with exit or disposal activities Total Balance at January 3, 2015 $ 1.0 $ — $ 6.5 $ 7.5 Restructuring costs (gain) 0.7 — (1.7 ) (1.0 ) Amounts paid (1.1 ) — (2.4 ) (3.5 ) Balance at March 28, 2015 $ 0.6 $ — $ 2.4 $ 3.0 Balance at January 2, 2016 $ 2.1 $ — $ 6.5 $ 8.6 Restructuring and impairment costs 1.2 0.2 9.6 11.0 Amounts paid (1.4 ) — (3.8 ) (5.2 ) Charges against assets — (0.2 ) (6.9 ) (7.1 ) Balance at March 26, 2016 $ 1.9 $ — $ 5.4 $ 7.3 Other Restructuring Activities During the 12 weeks ended March 26, 2016 , the Company recorded restructuring costs of $ 3.3 million in connection with certain organizational changes made during the first quarter of fiscal 2016. The costs associated with these restructuring activities were recorded within the Company’s Corporate category included in the restructuring and impairment costs (gain) line item as a component of operating expenses in the consolidated condensed statements of operations and comprehensive income. The Company estimates another $ 4.5 million to $ 5.5 million of costs will be incurred during the remainder of fiscal 2016 to complete these organizational changes. During the 12 weeks ended March 26, 2016 , the Company recorded restructuring costs of $ 0.3 million in connection with the Company’s decision to wind-down operations of its Cushe ® brand. The costs associated with these restructuring activities were recorded within the Company’s Corporate category included in the restructuring costs line item as a component of cost of goods sold in the consolidated condensed statements of operations and comprehensive income. |
Subsidiary Guarantors of the Pu
Subsidiary Guarantors of the Public Bonds | 3 Months Ended |
Mar. 26, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Subsidiary Guarantors of the Public Bonds | SUBSIDIARY GUARANTORS OF THE PUBLIC BONDS The following tables present consolidated condensed financial information for (a) the Company (for purposes of this discussion and table, “Parent”); (b) the guarantors of the Public Bonds, which include substantially all of the domestic, 100 % owned subsidiaries of the Parent (“Subsidiary Guarantors”); and (c) the wholly- and partially-owned foreign subsidiaries of the Parent, which do not guarantee the Public Bonds (“Non-Guarantor Subsidiaries”). Separate financial statements of the Subsidiary Guarantors are not presented because they are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions. WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Operations and Comprehensive Income For the 12 Weeks Ended March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 650.6 $ 132.2 $ (205.2 ) $ 577.6 Cost of goods sold 1.5 469.0 64.6 (190.2 ) 344.9 Restructuring costs 0.3 3.6 — — 3.9 Gross profit (loss) (1.8 ) 178.0 67.6 (15.0 ) 228.8 Selling, general and administrative expenses 23.5 130.2 45.4 (15.0 ) 184.1 Restructuring and impairment costs 1.5 5.6 3.6 — 10.7 Operating profit (loss) (26.8 ) 42.2 18.6 — 34.0 Other expenses: Interest expense (income), net 8.7 (0.1 ) (0.1 ) — 8.5 Other expense (income), net — 0.3 (0.4 ) — (0.1 ) Total other expenses (income) 8.7 0.2 (0.5 ) — 8.4 Earnings (loss) before income taxes (35.5 ) 42.0 19.1 — 25.6 Income tax expense (benefit) (13.3 ) 15.8 5.5 — 8.0 Earnings (loss) before equity in earnings of consolidated subsidiaries (22.2 ) 26.2 13.6 — 17.6 Equity in earnings of consolidated subsidiaries 39.6 26.5 8.2 (74.3 ) — Net earnings 17.4 52.7 21.8 (74.3 ) 17.6 Less: net earnings attributable to noncontrolling interest — — 0.2 — 0.2 Net earnings attributable to Wolverine World Wide, Inc. $ 17.4 $ 52.7 $ 21.6 $ (74.3 ) $ 17.4 Comprehensive income $ 15.7 $ 52.7 $ 23.3 $ (75.8 ) $ 15.9 Less: comprehensive loss attributable to noncontrolling interest (0.3 ) — (0.1 ) 0.3 (0.1 ) Comprehensive income attributable to Wolverine World Wide, Inc. $ 16.0 $ 52.7 $ 23.4 $ (76.1 ) $ 16.0 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Operations and Comprehensive Income For the 12 Weeks Ended March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ 135.8 $ 947.7 $ 191.2 $ (643.3 ) $ 631.4 Cost of goods sold 98.5 811.0 89.3 (628.8 ) 370.0 Gross profit 37.3 136.7 101.9 (14.5 ) 261.4 Selling, general and administrative expenses 47.7 106.8 58.8 (14.5 ) 198.8 Restructuring costs (gain) 0.4 0.6 (2.0 ) — (1.0 ) Operating profit (loss) (10.8 ) 29.3 45.1 — 63.6 Other expenses: Interest expense (income), net 9.5 0.1 (0.1 ) — 9.5 Other expense (income), net — (1.2 ) 0.2 — (1.0 ) Total other expenses (income) 9.5 (1.1 ) 0.1 — 8.5 Earnings (loss) before income taxes (20.3 ) 30.4 45.0 — 55.1 Income tax expense (benefit) (7.9 ) 11.8 11.1 — 15.0 Earnings (loss) before equity in earnings (loss) of consolidated subsidiaries (12.4 ) 18.6 33.9 — 40.1 Equity in earnings (loss) of consolidated subsidiaries 52.5 (39.4 ) 61.7 (74.8 ) — Net earnings (loss) 40.1 (20.8 ) 95.6 (74.8 ) 40.1 Less: net earnings attributable to noncontrolling interest — — — — — Net earnings attributable to Wolverine World Wide, Inc. $ 40.1 $ (20.8 ) $ 95.6 $ (74.8 ) $ 40.1 Comprehensive income (loss) $ 30.4 $ (20.8 ) $ 83.3 $ (62.7 ) $ 30.2 Less: comprehensive income attributable to noncontrolling interest — — (0.2 ) — (0.2 ) Comprehensive income attributable to Wolverine World Wide, Inc. $ 30.4 $ (20.8 ) $ 83.5 $ (62.7 ) $ 30.4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 16.2 $ 2.4 $ 139.6 $ — $ 158.2 Accounts receivable, net 3.3 221.5 101.2 — 326.0 Inventories: Finished products, net — 363.3 99.3 — 462.6 Raw materials and work-in-process, net — 4.5 13.7 — 18.2 Total inventories — 367.8 113.0 — 480.8 Prepaid expenses and other current assets 5.6 23.9 10.8 — 40.3 Total current assets 25.1 615.6 364.6 — 1,005.3 Property, plant and equipment: Gross cost 191.2 218.1 31.2 — 440.5 Accumulated depreciation (148.3 ) (141.7 ) (15.2 ) — (305.2 ) Property, plant and equipment, net 42.9 76.4 16.0 — 135.3 Other assets: Goodwill 2.7 353.7 73.8 — 430.2 Indefinite-lived intangibles 3.8 675.3 6.3 — 685.4 Amortizable intangibles, net 0.5 93.3 — — 93.8 Deferred income taxes — — 3.0 — 3.0 Other 40.4 27.8 3.4 — 71.6 Intercompany accounts receivable 22.1 3,070.8 603.3 (3,696.2 ) — Investment in affiliates 3,509.1 882.8 996.6 (5,388.5 ) — Total other assets 3,578.6 5,103.7 1,686.4 (9,084.7 ) 1,284.0 Total assets $ 3,646.6 $ 5,795.7 $ 2,067.0 $ (9,084.7 ) $ 2,424.6 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12.0 $ 68.4 $ 25.5 $ — $ 105.9 Accrued salaries and wages 7.1 6.7 4.3 — 18.1 Other accrued liabilities 42.1 44.1 36.9 — 123.1 Current maturities of long-term debt 16.9 — — — 16.9 Borrowings under revolving credit agreement 60.0 — — — 60.0 Total current liabilities 138.1 119.2 66.7 — 324.0 Long-term debt, less current maturities 792.8 0.6 — — 793.4 Accrued pension liabilities 92.0 18.2 — — 110.2 Deferred income taxes (74.6 ) 249.8 2.2 — 177.4 Other liabilities 23.0 13.5 2.0 — 38.5 Intercompany accounts payable 1,700.9 1,486.0 509.3 (3,696.2 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 974.4 3,908.4 1,480.1 (5,388.5 ) 974.4 Noncontrolling interest — — 6.7 — 6.7 Total stockholders’ equity 974.4 3,908.4 1,486.8 (5,388.5 ) 981.1 Total liabilities and stockholders’ equity $ 3,646.6 $ 5,795.7 $ 2,067.0 $ (9,084.7 ) $ 2,424.6 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of January 2, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 27.2 $ 2.6 $ 164.3 $ — $ 194.1 Accounts receivable, net 84.8 105.8 108.3 — 298.9 Inventories: Finished products, net (0.8 ) 371.7 77.1 — 448.0 Raw materials and work-in-process, net 0.8 1.8 16.0 — 18.6 Total inventories — 373.5 93.1 — 466.6 Prepaid expenses and other current assets 10.7 24.9 18.6 — 54.2 Total current assets 122.7 506.8 384.3 — 1,013.8 Property, plant and equipment: Gross cost 228.4 170.5 32.6 — 431.5 Accumulated depreciation (178.1 ) (103.6 ) (18.2 ) — (299.9 ) Property, plant and equipment, net 50.3 66.9 14.4 — 131.6 Other assets: Goodwill 2.7 353.3 73.1 — 429.1 Indefinite-lived intangibles 3.8 675.3 6.3 — 685.4 Amortizable intangibles, net 0.6 96.7 — — 97.3 Deferred income taxes — — 3.7 — 3.7 Other 54.1 15.6 3.8 — 73.5 Intercompany accounts receivable 19.8 3,002.0 583.9 (3,605.7 ) — Investment in affiliates 3,388.4 854.0 949.4 (5,191.8 ) — Total other assets 3,469.4 4,996.9 1,620.2 (8,797.5 ) 1,289.0 Total assets $ 3,642.4 $ 5,570.6 $ 2,018.9 $ (8,797.5 ) $ 2,434.4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of January 2, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37.3 $ 98.7 $ 63.7 $ — $ 199.7 Accrued salaries and wages 17.2 4.3 7.0 — 28.5 Other accrued liabilities 42.6 35.6 30.0 — 108.2 Current maturities of long-term debt 16.9 — — — 16.9 Total current liabilities 114.0 138.6 100.7 — 353.3 Long-term debt, less current maturities 792.3 0.6 — — 792.9 Accrued pension liabilities 91.2 18.4 — — 109.6 Deferred income taxes (75.2 ) 249.8 4.0 — 178.6 Other liabilities 17.0 11.2 2.1 — 30.3 Intercompany accounts payable 1,739.4 1,360.0 506.3 (3,605.7 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 963.7 3,792.0 1,399.8 (5,191.8 ) 963.7 Noncontrolling interest — — 6.0 — 6.0 Total stockholders’ equity 963.7 3,792.0 1,405.8 (5,191.8 ) 969.7 Total liabilities and stockholders’ equity $ 3,642.4 $ 5,570.6 $ 2,018.9 $ (8,797.5 ) $ 2,434.4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 109.9 $ (87.8 ) $ 99.2 $ — $ 121.3 Accounts receivable, net 15.6 204.0 137.6 — 357.2 Inventories: Finished products, net 65.5 256.5 82.3 — 404.3 Raw materials and work-in-process, net 0.7 1.2 13.6 — 15.5 Total inventories 66.2 257.7 95.9 — 419.8 Deferred income taxes 12.8 14.0 1.1 — 27.9 Prepaid expenses and other current assets 45.2 (0.5 ) 17.2 — 61.9 Total current assets 249.7 387.4 351.0 — 988.1 Property, plant and equipment: Gross cost 234.6 152.8 32.9 — 420.3 Accumulated depreciation (185.8 ) (76.7 ) (22.5 ) — (285.0 ) Property, plant and equipment, net 48.8 76.1 10.4 — 135.3 Other assets: Goodwill 7.8 353.0 73.3 — 434.1 Indefinite-lived intangibles 4.3 674.9 11.3 — 690.5 Amortizable intangibles, net 0.5 108.1 0.1 — 108.7 Deferred income taxes — — 2.7 — 2.7 Other 53.3 12.0 3.4 — 68.7 Intercompany accounts receivable 22.1 2,433.4 501.4 (2,956.9 ) — Investment in affiliates 3,193.1 961.3 1,045.5 (5,199.9 ) — Total other assets 3,281.1 4,542.7 1,637.7 (8,156.8 ) 1,304.7 Total assets $ 3,579.6 $ 5,006.2 $ 1,999.1 $ (8,156.8 ) $ 2,428.1 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 24.4 $ 35.7 $ 36.3 $ — $ 96.4 Accrued salaries and wages 9.3 4.9 3.9 — 18.1 Other accrued liabilities 36.4 44.7 40.2 — 121.3 Current maturities of long-term debt 42.0 — — — 42.0 Borrowings under revolving credit agreement 14.5 — — — 14.5 Total current liabilities 126.6 85.3 80.4 — 292.3 Long-term debt, less current maturities 787.8 0.6 — — 788.4 Accrued pension liabilities 107.9 21.2 — — 129.1 Deferred income taxes (57.5 ) 274.7 2.8 — 220.0 Other liabilities 13.9 10.4 2.6 — 26.9 Intercompany accounts payable 1,633.8 856.5 466.6 (2,956.9 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 967.1 3,757.5 1,442.4 (5,199.9 ) 967.1 Noncontrolling interest — — 4.3 — 4.3 Total stockholders’ equity 967.1 3,757.5 1,446.7 (5,199.9 ) 971.4 Total liabilities and stockholders’ equity $ 3,579.6 $ 5,006.2 $ 1,999.1 $ (8,156.8 ) $ 2,428.1 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flow For the 12 Weeks Ended March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (59.0 ) $ 4.6 $ (24.5 ) $ — $ (78.9 ) INVESTING ACTIVITIES Additions to property, plant and equipment (3.1 ) (4.8 ) (2.0 ) (9.9 ) Other (0.6 ) — — — (0.6 ) Net cash used in investing activities (3.7 ) (4.8 ) (2.0 ) — (10.5 ) FINANCING ACTIVITIES Net borrowings under revolving credit agreement 60.0 — — — 60.0 Cash dividends paid (6.0 ) — — — (6.0 ) Purchase of common stock for treasury (0.1 ) — — — (0.1 ) Purchases of shares under employee stock plans (4.2 ) — — — (4.2 ) Proceeds from the exercise of stock options 1.9 — — — 1.9 Excess tax benefits from stock-based compensation 0.1 — — — 0.1 Contributions from noncontrolling interests — — 0.8 — 0.8 Net cash provided by financing activities 51.7 — 0.8 — 52.5 Effect of foreign exchange rate changes — — 1.0 — 1.0 Decrease in cash and cash equivalents (11.0 ) (0.2 ) (24.7 ) — (35.9 ) Cash and cash equivalents at beginning of the year 27.2 2.6 164.3 — 194.1 Cash and cash equivalents at end of the period $ 16.2 $ 2.4 $ 139.6 $ — $ 158.2 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flow For the 12 Weeks Ended March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 150.8 $ (88.8 ) $ (105.0 ) $ — $ (43.0 ) INVESTING ACTIVITIES Additions to property, plant and equipment (3.9 ) (2.2 ) (0.3 ) — (6.4 ) Other (0.6 ) (0.1 ) — — (0.7 ) Net cash used in investing activities (4.5 ) (2.3 ) (0.3 ) — (7.1 ) FINANCING ACTIVITIES Net borrowings under revolving credit agreement 14.5 — — — 14.5 Payments on long-term debt (58.0 ) — — — (58.0 ) Cash dividends paid (6.1 ) — — — (6.1 ) Purchases of shares under employee stock plans (7.4 ) — — — (7.4 ) Proceeds from the exercise of stock options 5.8 — — — 5.8 Excess tax benefits from stock-based compensation 3.4 — — — 3.4 Net cash used in financing activities (47.8 ) — — — (47.8 ) Effect of foreign exchange rate changes — — (4.6 ) — (4.6 ) Increase (decrease) in cash and cash equivalents 98.5 (91.1 ) (109.9 ) — (102.5 ) Cash and cash equivalents at beginning of the year 11.4 3.3 209.1 — 223.8 Cash and cash equivalents at end of the period $ 109.9 $ (87.8 ) $ 99.2 $ — $ 121.3 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Wolverine World Wide, Inc. (the “Company”) is a leading designer, manufacturer and marketer of a broad range of quality casual footwear and apparel; performance outdoor and athletic footwear and apparel; children’s footwear, industrial work shoes, boots and apparel; and uniform shoes and boots. The Company’s portfolio of owned and licensed brands includes: Bates ® , Cat ® , Chaco ® , Harley-Davidson ® , Hush Puppies ® , HyTest ® , Keds ® , Merrell ® , Saucony ® , Sebago ® , Sperry ® , Stride Rite ® and Wolverine ® . Third-party distributors, licensees and joint ventures extend the global reach of the Company’s brand portfolio. The Company also operates a consumer-direct division that markets both its own brands and branded footwear and apparel from other manufacturers, as well as a leathers division that markets Wolverine Performance Leathers™ . |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete presentation of the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included in the accompanying financial statements. For further information, refer to the consolidated financial statements and footnotes included in the Company’s 2015 Form 10-K. |
Revenue Recognition | Revenue Recognition Revenue is recognized on the sale of products manufactured or sourced by the Company when the related goods have been shipped, legal title has passed to the customer and collectability is reasonably assured. Revenue generated through licensees and distributors involving products bearing the Company’s trademarks is recognized as earned according to stated contractual terms upon either the purchase or shipment of branded products by licensees and distributors. Retail store revenue is recognized at time of sale. The Company records provisions for estimated sales returns and allowances at the time of sale based on historical rates of returns and allowances and specific identification of outstanding returns not yet received from customers. However, estimates of actual returns and allowances in any future period are inherently uncertain and actual returns and allowances may differ from these estimates. If actual or expected future returns and allowances were significantly greater or less than established reserves, a reduction or increase to net revenues would be recorded in the period this determination was made. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes the actual product costs, including inbound freight charges and certain outbound freight charges, purchasing, sourcing, inspection and receiving costs. Warehousing costs are included in selling, general and administrative expenses. |
Seasonality | Seasonality The Company’s business is subject to seasonal influences and the Company’s fiscal year has 12 weeks in each of the first three fiscal quarters and, depending on the fiscal calendar, 16 or 17 weeks in the fourth fiscal quarter. Both of these factors can cause significant differences in revenue, earnings and cash flows from quarter to quarter; however, the differences have followed a consistent pattern in recent years. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The Company calculates earnings per share in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”). ASC 260 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. Under the guidance in ASC 260, the Company’s unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and must be included in the computation of earnings per share pursuant to the two-class method. |
Financial Instruments and Ris23
Financial Instruments and Risk Management (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements and Disclosures | The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. ASC 820 requires fair value measurements to be classified and disclosed in one of the following three categories: Level 1: Fair value is measured using quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: Fair value is measured using either direct or indirect inputs, other than quoted prices included within Level 1, which are observable for similar assets or liabilities. Level 3: Fair value is measured using valuation techniques in which one or more significant inputs are unobservable. |
Derivatives and Hedging | The Company follows ASC 815, which is intended to improve transparency in financial reporting and requires that all derivative instruments be recorded on the consolidated balance sheets at fair value by establishing criteria for designation and effectiveness of hedging relationships. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Share-based Compensation [Abstract] | |
Stock Based Compensation Policy | The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). The Company recognized compensation expense of $ 7.6 million and related income tax benefits of $ 2.6 million for grants under its stock-based compensation plans for the 12 weeks ended March 26, 2016 . The Company recognized compensation expense of $ 6.7 million and related income tax benefits of $ 2.2 million for grants under its stock-based compensation plans for the 12 weeks ended March 28, 2015 . Stock-based compensation expense recognized in the consolidated condensed statements of operations and comprehensive income is based on awards ultimately expected to vest and, as such, has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. The Company estimated the fair value of employee stock options on the date of grant using the Black-Scholes model. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share. 12 Weeks Ended (In millions, except per share data) March 26, March 28, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 17.4 $ 40.1 Adjustment for earnings allocated to non-vested restricted common stock (0.4 ) (0.8 ) Net earnings used in calculating basic earnings per share 17.0 39.3 Adjustment for earnings reallocated from non-vested restricted common stock — 0.1 Net earnings used in calculating diluted earnings per share $ 17.0 $ 39.4 Denominator: Weighted average shares outstanding 99.2 102.5 Adjustment for non-vested restricted common stock (3.5 ) (3.6 ) Shares used in calculating basic earnings per share 95.7 98.9 Effect of dilutive stock options 0.5 1.9 Shares used in calculating diluted earnings per share 96.2 100.8 Net earnings per share: Basic $ 0.18 $ 0.40 Diluted $ 0.18 $ 0.39 |
Goodwill and Indefinite-Lived26
Goodwill and Indefinite-Lived Intangibles (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill and Indefinite-Lived Intangibles | The changes in the carrying amount of goodwill and indefinite-lived intangibles are as follows: (In millions) Goodwill Indefinite-lived intangibles Total Balance at January 3, 2015 $ 438.8 $ 690.5 $ 1,129.3 Foreign currency translation effects (4.7 ) — (4.7 ) Balance at March 28, 2015 $ 434.1 $ 690.5 $ 1,124.6 Balance at January 2, 2016 $ 429.1 $ 685.4 $ 1,114.5 Foreign currency translation effects 1.1 — 1.1 Balance at March 26, 2016 $ 430.2 $ 685.4 $ 1,115.6 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Total debt consists of the following obligations: (In millions) March 26, January 2, March 28, Term Loan A Facility, due July 13, 2020 $ 444.4 $ 444.4 $ 467.2 Public Bonds, 6.125% interest, due October 15, 2020 375.0 375.0 375.0 Borrowings under revolving credit agreement 60.0 — 14.5 Capital lease obligation 0.6 0.6 0.6 Unamortized debt issuance costs (9.7 ) (10.2 ) (12.4 ) Total debt $ 870.3 $ 809.8 $ 844.9 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The change in AOCI during the 12 weeks ended March 26, 2016 and March 28, 2015 is as follows: (In millions) Foreign currency translation adjustments Foreign exchange contracts Interest rate swaps Pension adjustments Total Balance of AOCI as of January 3, 2015 $ (16.9 ) $ 8.6 $ 0.4 $ (41.6 ) $ (49.5 ) Other comprehensive income (loss) before reclassifications (1) (17.4 ) 7.1 (0.7 ) — (11.0 ) Amounts reclassified from AOCI — (2.5 ) (2) — 4.8 (4) 2.3 Income tax expense (benefit) — 0.7 — (1.7 ) (1.0 ) Net reclassifications — (1.8 ) — 3.1 1.3 Net current-period other comprehensive income (loss) (1) (17.4 ) 5.3 (0.7 ) 3.1 (9.7 ) Balance of AOCI as of March 28, 2015 $ (34.3 ) $ 13.9 $ (0.3 ) $ (38.5 ) $ (59.2 ) Balance of AOCI as of January 2, 2016 $ (47.3 ) $ 6.4 $ (2.4 ) $ (12.8 ) $ (56.1 ) Other comprehensive income (loss) before reclassifications (1) 5.0 (1.9 ) (4.2 ) — (1.1 ) Amounts reclassified from AOCI — (1.8 ) (2) 0.3 (3) 1.1 (4) (0.4 ) Income tax expense (benefit) — 0.5 (0.1 ) (0.3 ) 0.1 Net reclassifications — (1.3 ) 0.2 0.8 (0.3 ) Net current-period other comprehensive income (loss) (1) 5.0 (3.2 ) (4.0 ) 0.8 (1.4 ) Balance of AOCI as of March 26, 2016 $ (42.3 ) $ 3.2 $ (6.4 ) $ (12.0 ) $ (57.5 ) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts reclassified are included in cost of goods sold. (3) Amounts reclassified are included in interest expense. (4) Amounts reclassified are included in the computation of net pension expense. |
Financial Instruments and Ris29
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Investments, All Other Investments [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and the fair value of the Company’s long-term debt, excluding capital leases, are as follows: (In millions) March 26, 2016 January 2, 2016 March 28, 2015 Carrying value $ 809.7 $ 809.2 $ 829.8 Fair value 847.0 836.3 877.8 |
Schedule of Derivative Instruments [Table Text Block] | The notional amounts of the Company’s derivative instruments are as follows: (Dollars in millions) March 26, 2016 January 2, 2016 March 28, 2015 Foreign exchange contracts: Hedge contracts $ 162.5 $ 192.6 $ 136.8 Non-hedge contracts 13.5 23.2 — Interest rate swaps (1) 583.9 609.7 386.6 (1) Includes a forward starting interest rate swap with a notional amount of $ 288.8 million , which has an effective date of |
Financial Assets and Liabilities Measured at Fair Value in Consolidated Condensed Balance Sheets | The following table sets forth financial assets and liabilities measured at fair value in the consolidated balance sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy. Fair Value Measurements Quoted Prices With Other Observable Inputs (Level 2) (In millions) March 26, 2016 January 2, 2016 March 28, 2015 Financial assets: Foreign exchange contracts - hedge $ 2.3 $ 6.7 $ 10.4 Foreign exchange contracts - non-hedge — 0.5 — Interest rate swap — 0.2 — Financial liabilities: Foreign exchange contracts - hedge $ 1.4 $ — $ — Foreign exchange contracts - non-hedge — 0.1 — Interest rate swap 9.8 3.9 0.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Assumptions to Estimated Fair Value of Stock Options Granted | The estimated weighted average fair value for each option granted during the 12 weeks ended March 26, 2016 and March 28, 2015 was $ 3.27 and $ 6.30 , respectively, with the following weighted average assumptions: 12 Weeks Ended March 26, March 28, Expected market price volatility (1) 27.1 % 28.8 % Risk-free interest rate (2) 1.0 % 1.3 % Dividend yield (3) 1.4 % 0.9 % Expected term (4) 4 years 4 years (1) Based on historical volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over the four years prior to the grant. (2) Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. (3) Represents the Company’s estimated cash dividend yield for the expected term. (4) Represents the period of time that options granted are expected to be outstanding. As part of the determination of the expected term, the Company concluded that all employee groups exhibit similar exercise and post-vesting termination behavior. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Net Pension and SERP Expense Recognized | summary of net pension and Supplemental Executive Retirement Plan expense recognized by the Company: 12 Weeks Ended (In millions) March 26, March 28, Service cost pertaining to benefits earned during the period $ 1.5 $ 2.1 Interest cost on projected benefit obligations 4.4 4.2 Expected return on pension assets (4.6 ) (4.7 ) Net amortization loss 1.1 4.8 Net pension expense $ 2.4 $ 6.4 |
Litigation and Contingencies (T
Litigation and Contingencies (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company | Minimum future royalty and advertising obligations for the fiscal periods subsequent to March 26, 2016 under the terms of certain licenses held by the Company are as follows: (In millions) 2016 2017 2018 2019 2020 Thereafter Minimum royalties $ 1.5 $ 1.8 $ 1.4 $ 1.5 $ 1.5 $ — Minimum advertising 3.9 3.2 3.3 3.4 3.5 7.4 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Segment Reporting [Abstract] | |
Revenue and Operating Profit by Segment | The following is a summary of certain key financial measures for the respective fiscal periods indicated. All prior period amounts have been restated to reflect the new reportable operating segments. 12 Weeks Ended (In millions) March 26, March 28, Revenue: Wolverine Outdoor & Lifestyle Group $ 217.7 $ 231.1 Wolverine Boston Group 209.1 234.3 Wolverine Heritage Group 71.8 81.4 Wolverine Multi-Brand Group 68.4 71.9 Other 10.6 12.7 Total $ 577.6 $ 631.4 Operating profit (loss): Wolverine Outdoor & Lifestyle Group $ 48.8 $ 54.7 Wolverine Boston Group 27.7 37.3 Wolverine Heritage Group 8.5 11.8 Wolverine Multi-Brand Group (1.4 ) (1.7 ) Other 0.5 1.2 Corporate (50.1 ) (39.7 ) Total $ 34.0 $ 63.6 |
Assets and Goodwill by Segment | (In millions) March 26, January 2, March 28, Total assets: Wolverine Outdoor & Lifestyle Group $ 494.7 $ 444.2 $ 485.2 Wolverine Boston Group 1,328.0 1,324.2 1,344.6 Wolverine Heritage Group 154.2 169.9 149.6 Wolverine Multi-Brand Group 188.2 204.3 208.3 Other 29.8 23.9 30.7 Corporate 229.7 267.9 209.7 Total $ 2,424.6 $ 2,434.4 $ 2,428.1 Goodwill: Wolverine Outdoor & Lifestyle Group $ 129.7 $ 130.4 $ 130.7 Wolverine Boston Group 258.0 256.2 260.8 Wolverine Heritage Group 16.5 16.5 16.5 Wolverine Multi-Brand Group 26.0 26.0 26.1 Total $ 430.2 $ 429.1 $ 434.1 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Consumer Direct Operations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Costs | (In millions) Severance and employee related Impairment of property and equipment Costs associated with exit or disposal activities Total Balance at January 3, 2015 $ 1.0 $ — $ 6.5 $ 7.5 Restructuring costs (gain) 0.7 — (1.7 ) (1.0 ) Amounts paid (1.1 ) — (2.4 ) (3.5 ) Balance at March 28, 2015 $ 0.6 $ — $ 2.4 $ 3.0 Balance at January 2, 2016 $ 2.1 $ — $ 6.5 $ 8.6 Restructuring and impairment costs 1.2 0.2 9.6 11.0 Amounts paid (1.4 ) — (3.8 ) (5.2 ) Charges against assets — (0.2 ) (6.9 ) (7.1 ) Balance at March 26, 2016 $ 1.9 $ — $ 5.4 $ 7.3 |
Subsidiary Guarantors of the 35
Subsidiary Guarantors of the Public Bonds (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidated Condensed Statements of Operations and Comprehensive Income | WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Operations and Comprehensive Income For the 12 Weeks Ended March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 650.6 $ 132.2 $ (205.2 ) $ 577.6 Cost of goods sold 1.5 469.0 64.6 (190.2 ) 344.9 Restructuring costs 0.3 3.6 — — 3.9 Gross profit (loss) (1.8 ) 178.0 67.6 (15.0 ) 228.8 Selling, general and administrative expenses 23.5 130.2 45.4 (15.0 ) 184.1 Restructuring and impairment costs 1.5 5.6 3.6 — 10.7 Operating profit (loss) (26.8 ) 42.2 18.6 — 34.0 Other expenses: Interest expense (income), net 8.7 (0.1 ) (0.1 ) — 8.5 Other expense (income), net — 0.3 (0.4 ) — (0.1 ) Total other expenses (income) 8.7 0.2 (0.5 ) — 8.4 Earnings (loss) before income taxes (35.5 ) 42.0 19.1 — 25.6 Income tax expense (benefit) (13.3 ) 15.8 5.5 — 8.0 Earnings (loss) before equity in earnings of consolidated subsidiaries (22.2 ) 26.2 13.6 — 17.6 Equity in earnings of consolidated subsidiaries 39.6 26.5 8.2 (74.3 ) — Net earnings 17.4 52.7 21.8 (74.3 ) 17.6 Less: net earnings attributable to noncontrolling interest — — 0.2 — 0.2 Net earnings attributable to Wolverine World Wide, Inc. $ 17.4 $ 52.7 $ 21.6 $ (74.3 ) $ 17.4 Comprehensive income $ 15.7 $ 52.7 $ 23.3 $ (75.8 ) $ 15.9 Less: comprehensive loss attributable to noncontrolling interest (0.3 ) — (0.1 ) 0.3 (0.1 ) Comprehensive income attributable to Wolverine World Wide, Inc. $ 16.0 $ 52.7 $ 23.4 $ (76.1 ) $ 16.0 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Operations and Comprehensive Income For the 12 Weeks Ended March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ 135.8 $ 947.7 $ 191.2 $ (643.3 ) $ 631.4 Cost of goods sold 98.5 811.0 89.3 (628.8 ) 370.0 Gross profit 37.3 136.7 101.9 (14.5 ) 261.4 Selling, general and administrative expenses 47.7 106.8 58.8 (14.5 ) 198.8 Restructuring costs (gain) 0.4 0.6 (2.0 ) — (1.0 ) Operating profit (loss) (10.8 ) 29.3 45.1 — 63.6 Other expenses: Interest expense (income), net 9.5 0.1 (0.1 ) — 9.5 Other expense (income), net — (1.2 ) 0.2 — (1.0 ) Total other expenses (income) 9.5 (1.1 ) 0.1 — 8.5 Earnings (loss) before income taxes (20.3 ) 30.4 45.0 — 55.1 Income tax expense (benefit) (7.9 ) 11.8 11.1 — 15.0 Earnings (loss) before equity in earnings (loss) of consolidated subsidiaries (12.4 ) 18.6 33.9 — 40.1 Equity in earnings (loss) of consolidated subsidiaries 52.5 (39.4 ) 61.7 (74.8 ) — Net earnings (loss) 40.1 (20.8 ) 95.6 (74.8 ) 40.1 Less: net earnings attributable to noncontrolling interest — — — — — Net earnings attributable to Wolverine World Wide, Inc. $ 40.1 $ (20.8 ) $ 95.6 $ (74.8 ) $ 40.1 Comprehensive income (loss) $ 30.4 $ (20.8 ) $ 83.3 $ (62.7 ) $ 30.2 Less: comprehensive income attributable to noncontrolling interest — — (0.2 ) — (0.2 ) Comprehensive income attributable to Wolverine World Wide, Inc. $ 30.4 $ (20.8 ) $ 83.5 $ (62.7 ) $ 30.4 |
Consolidated Condensed Balance Sheets | WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 16.2 $ 2.4 $ 139.6 $ — $ 158.2 Accounts receivable, net 3.3 221.5 101.2 — 326.0 Inventories: Finished products, net — 363.3 99.3 — 462.6 Raw materials and work-in-process, net — 4.5 13.7 — 18.2 Total inventories — 367.8 113.0 — 480.8 Prepaid expenses and other current assets 5.6 23.9 10.8 — 40.3 Total current assets 25.1 615.6 364.6 — 1,005.3 Property, plant and equipment: Gross cost 191.2 218.1 31.2 — 440.5 Accumulated depreciation (148.3 ) (141.7 ) (15.2 ) — (305.2 ) Property, plant and equipment, net 42.9 76.4 16.0 — 135.3 Other assets: Goodwill 2.7 353.7 73.8 — 430.2 Indefinite-lived intangibles 3.8 675.3 6.3 — 685.4 Amortizable intangibles, net 0.5 93.3 — — 93.8 Deferred income taxes — — 3.0 — 3.0 Other 40.4 27.8 3.4 — 71.6 Intercompany accounts receivable 22.1 3,070.8 603.3 (3,696.2 ) — Investment in affiliates 3,509.1 882.8 996.6 (5,388.5 ) — Total other assets 3,578.6 5,103.7 1,686.4 (9,084.7 ) 1,284.0 Total assets $ 3,646.6 $ 5,795.7 $ 2,067.0 $ (9,084.7 ) $ 2,424.6 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12.0 $ 68.4 $ 25.5 $ — $ 105.9 Accrued salaries and wages 7.1 6.7 4.3 — 18.1 Other accrued liabilities 42.1 44.1 36.9 — 123.1 Current maturities of long-term debt 16.9 — — — 16.9 Borrowings under revolving credit agreement 60.0 — — — 60.0 Total current liabilities 138.1 119.2 66.7 — 324.0 Long-term debt, less current maturities 792.8 0.6 — — 793.4 Accrued pension liabilities 92.0 18.2 — — 110.2 Deferred income taxes (74.6 ) 249.8 2.2 — 177.4 Other liabilities 23.0 13.5 2.0 — 38.5 Intercompany accounts payable 1,700.9 1,486.0 509.3 (3,696.2 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 974.4 3,908.4 1,480.1 (5,388.5 ) 974.4 Noncontrolling interest — — 6.7 — 6.7 Total stockholders’ equity 974.4 3,908.4 1,486.8 (5,388.5 ) 981.1 Total liabilities and stockholders’ equity $ 3,646.6 $ 5,795.7 $ 2,067.0 $ (9,084.7 ) $ 2,424.6 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of January 2, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 27.2 $ 2.6 $ 164.3 $ — $ 194.1 Accounts receivable, net 84.8 105.8 108.3 — 298.9 Inventories: Finished products, net (0.8 ) 371.7 77.1 — 448.0 Raw materials and work-in-process, net 0.8 1.8 16.0 — 18.6 Total inventories — 373.5 93.1 — 466.6 Prepaid expenses and other current assets 10.7 24.9 18.6 — 54.2 Total current assets 122.7 506.8 384.3 — 1,013.8 Property, plant and equipment: Gross cost 228.4 170.5 32.6 — 431.5 Accumulated depreciation (178.1 ) (103.6 ) (18.2 ) — (299.9 ) Property, plant and equipment, net 50.3 66.9 14.4 — 131.6 Other assets: Goodwill 2.7 353.3 73.1 — 429.1 Indefinite-lived intangibles 3.8 675.3 6.3 — 685.4 Amortizable intangibles, net 0.6 96.7 — — 97.3 Deferred income taxes — — 3.7 — 3.7 Other 54.1 15.6 3.8 — 73.5 Intercompany accounts receivable 19.8 3,002.0 583.9 (3,605.7 ) — Investment in affiliates 3,388.4 854.0 949.4 (5,191.8 ) — Total other assets 3,469.4 4,996.9 1,620.2 (8,797.5 ) 1,289.0 Total assets $ 3,642.4 $ 5,570.6 $ 2,018.9 $ (8,797.5 ) $ 2,434.4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of January 2, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37.3 $ 98.7 $ 63.7 $ — $ 199.7 Accrued salaries and wages 17.2 4.3 7.0 — 28.5 Other accrued liabilities 42.6 35.6 30.0 — 108.2 Current maturities of long-term debt 16.9 — — — 16.9 Total current liabilities 114.0 138.6 100.7 — 353.3 Long-term debt, less current maturities 792.3 0.6 — — 792.9 Accrued pension liabilities 91.2 18.4 — — 109.6 Deferred income taxes (75.2 ) 249.8 4.0 — 178.6 Other liabilities 17.0 11.2 2.1 — 30.3 Intercompany accounts payable 1,739.4 1,360.0 506.3 (3,605.7 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 963.7 3,792.0 1,399.8 (5,191.8 ) 963.7 Noncontrolling interest — — 6.0 — 6.0 Total stockholders’ equity 963.7 3,792.0 1,405.8 (5,191.8 ) 969.7 Total liabilities and stockholders’ equity $ 3,642.4 $ 5,570.6 $ 2,018.9 $ (8,797.5 ) $ 2,434.4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets As of March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 109.9 $ (87.8 ) $ 99.2 $ — $ 121.3 Accounts receivable, net 15.6 204.0 137.6 — 357.2 Inventories: Finished products, net 65.5 256.5 82.3 — 404.3 Raw materials and work-in-process, net 0.7 1.2 13.6 — 15.5 Total inventories 66.2 257.7 95.9 — 419.8 Deferred income taxes 12.8 14.0 1.1 — 27.9 Prepaid expenses and other current assets 45.2 (0.5 ) 17.2 — 61.9 Total current assets 249.7 387.4 351.0 — 988.1 Property, plant and equipment: Gross cost 234.6 152.8 32.9 — 420.3 Accumulated depreciation (185.8 ) (76.7 ) (22.5 ) — (285.0 ) Property, plant and equipment, net 48.8 76.1 10.4 — 135.3 Other assets: Goodwill 7.8 353.0 73.3 — 434.1 Indefinite-lived intangibles 4.3 674.9 11.3 — 690.5 Amortizable intangibles, net 0.5 108.1 0.1 — 108.7 Deferred income taxes — — 2.7 — 2.7 Other 53.3 12.0 3.4 — 68.7 Intercompany accounts receivable 22.1 2,433.4 501.4 (2,956.9 ) — Investment in affiliates 3,193.1 961.3 1,045.5 (5,199.9 ) — Total other assets 3,281.1 4,542.7 1,637.7 (8,156.8 ) 1,304.7 Total assets $ 3,579.6 $ 5,006.2 $ 1,999.1 $ (8,156.8 ) $ 2,428.1 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets - continued As of March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 24.4 $ 35.7 $ 36.3 $ — $ 96.4 Accrued salaries and wages 9.3 4.9 3.9 — 18.1 Other accrued liabilities 36.4 44.7 40.2 — 121.3 Current maturities of long-term debt 42.0 — — — 42.0 Borrowings under revolving credit agreement 14.5 — — — 14.5 Total current liabilities 126.6 85.3 80.4 — 292.3 Long-term debt, less current maturities 787.8 0.6 — — 788.4 Accrued pension liabilities 107.9 21.2 — — 129.1 Deferred income taxes (57.5 ) 274.7 2.8 — 220.0 Other liabilities 13.9 10.4 2.6 — 26.9 Intercompany accounts payable 1,633.8 856.5 466.6 (2,956.9 ) — Stockholders’ equity: Wolverine World Wide, Inc. stockholders’ equity 967.1 3,757.5 1,442.4 (5,199.9 ) 967.1 Noncontrolling interest — — 4.3 — 4.3 Total stockholders’ equity 967.1 3,757.5 1,446.7 (5,199.9 ) 971.4 Total liabilities and stockholders’ equity $ 3,579.6 $ 5,006.2 $ 1,999.1 $ (8,156.8 ) $ 2,428.1 |
Consolidated Condensed Statements of Cash Flow | WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flow For the 12 Weeks Ended March 26, 2016 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (59.0 ) $ 4.6 $ (24.5 ) $ — $ (78.9 ) INVESTING ACTIVITIES Additions to property, plant and equipment (3.1 ) (4.8 ) (2.0 ) (9.9 ) Other (0.6 ) — — — (0.6 ) Net cash used in investing activities (3.7 ) (4.8 ) (2.0 ) — (10.5 ) FINANCING ACTIVITIES Net borrowings under revolving credit agreement 60.0 — — — 60.0 Cash dividends paid (6.0 ) — — — (6.0 ) Purchase of common stock for treasury (0.1 ) — — — (0.1 ) Purchases of shares under employee stock plans (4.2 ) — — — (4.2 ) Proceeds from the exercise of stock options 1.9 — — — 1.9 Excess tax benefits from stock-based compensation 0.1 — — — 0.1 Contributions from noncontrolling interests — — 0.8 — 0.8 Net cash provided by financing activities 51.7 — 0.8 — 52.5 Effect of foreign exchange rate changes — — 1.0 — 1.0 Decrease in cash and cash equivalents (11.0 ) (0.2 ) (24.7 ) — (35.9 ) Cash and cash equivalents at beginning of the year 27.2 2.6 164.3 — 194.1 Cash and cash equivalents at end of the period $ 16.2 $ 2.4 $ 139.6 $ — $ 158.2 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flow For the 12 Weeks Ended March 28, 2015 (Unaudited) (In millions) Parent Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 150.8 $ (88.8 ) $ (105.0 ) $ — $ (43.0 ) INVESTING ACTIVITIES Additions to property, plant and equipment (3.9 ) (2.2 ) (0.3 ) — (6.4 ) Other (0.6 ) (0.1 ) — — (0.7 ) Net cash used in investing activities (4.5 ) (2.3 ) (0.3 ) — (7.1 ) FINANCING ACTIVITIES Net borrowings under revolving credit agreement 14.5 — — — 14.5 Payments on long-term debt (58.0 ) — — — (58.0 ) Cash dividends paid (6.1 ) — — — (6.1 ) Purchases of shares under employee stock plans (7.4 ) — — — (7.4 ) Proceeds from the exercise of stock options 5.8 — — — 5.8 Excess tax benefits from stock-based compensation 3.4 — — — 3.4 Net cash used in financing activities (47.8 ) — — — (47.8 ) Effect of foreign exchange rate changes — — (4.6 ) — (4.6 ) Increase (decrease) in cash and cash equivalents 98.5 (91.1 ) (109.9 ) — (102.5 ) Cash and cash equivalents at beginning of the year 11.4 3.3 209.1 — 223.8 Cash and cash equivalents at end of the period $ 109.9 $ (87.8 ) $ 99.2 $ — $ 121.3 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Numerator: | ||
Net earnings attributable to Wolverine World Wide, Inc. | $ 17.4 | $ 40.1 |
Adjustment for earnings allocated to non-vested restricted common stock | (0.4) | (0.8) |
Net earnings used in calculating basic earnings per share | 17 | 39.3 |
Adjustment for earnings reallocated from non-vested restricted common stock | 0 | 0.1 |
Net earnings used in calculating diluted earnings per share | $ 17 | $ 39.4 |
Denominator: | ||
Weighted average shares outstanding | 99.2 | 102.5 |
Adjustment for non-vested restricted common stock | (3.5) | (3.6) |
Shares used in calculating basic earnings per share | 95.7 | 98.9 |
Effect of dilutive stock options | 0.5 | 1.9 |
Shares used in calculating diluted earnings per share | 96.2 | 100.8 |
Net earnings per share: | ||
Basic | $ 0.18 | $ 0.40 |
Diluted | $ 0.18 | $ 0.39 |
Earnings Per Share (Additional
Earnings Per Share (Additional Information) (Details) - shares | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options | 5,389,794 | 1,121,413 |
Goodwill and Indefinite-Lived38
Goodwill and Indefinite-Lived Intangibles (Changes in the Carrying Amount of Goodwill and Indefinite-Lived Intangibles) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 429.1 | $ 438.8 |
Foreign currency translation effects | 1.1 | (4.7) |
Goodwill, Ending balance | 430.2 | 434.1 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite-lived Intangibles, Beginning balance | 685.4 | 690.5 |
Indefinite-lived Intangibles, Ending balance | 685.4 | 690.5 |
Goodwill and Indefinite-lived Intangible Assets [Roll Forward] | ||
Goodwill and Indefinite-lived Intangibles, Beginning balance | 1,114.5 | 1,129.3 |
Goodwill and Indefinite-lived Intangibles, Foreign currency translation effects | 1.1 | (4.7) |
Goodwill and Indefinite-lived Intangibles, Ending balance | $ 1,115.6 | $ 1,124.6 |
Goodwill and Indefinite-Lived39
Goodwill and Indefinite-Lived Intangibles Additional Information (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 | Jan. 03, 2015 |
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | $ 685.4 | $ 685.4 | $ 690.5 | $ 690.5 |
Sperry [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | 586.8 | |||
Stride Rite [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | $ 15 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | |
Accounts Receivables [Abstract] | |||
Sale of accounts receivable, maximum amount under agreement | $ 200 | ||
Sale of accounts receivable percent paid at sale | 90.00% | ||
Accounts receivable, reduction due to sale | $ 93.1 | $ 91.3 | $ 77.6 |
Accounts receivable sold | 158.7 | 157.3 | |
Fee charged on sale of accounts receivable | $ 0.4 | $ 0.3 |
Debt (Schedule of Borrowings) (
Debt (Schedule of Borrowings) (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreement | $ 60 | $ 0 | $ 14.5 |
Capital lease obligations | 0.6 | 0.6 | 0.6 |
Unamortized debt issuance costs | (9.7) | (10.2) | (12.4) |
Total debt | 870.3 | 809.8 | 844.9 |
Term Loan A [Member] | July Thirteenth Two Thousand Twenty [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 444.4 | 444.4 | 467.2 |
Public Bonds [Member] | October Fifteen Two Thousand Twenty [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 375 | $ 375 | $ 375 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreement | $ 60 | $ 14.5 | $ 0 |
Amortization of deferred financing costs | 0.7 | 1 | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 1,425 | ||
Alternative Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Alternative Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Euro Currency Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Euro Currency Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 500 | ||
Outstanding letters of credit | 3.8 | 3.6 | 3.8 |
Foreign Currency Subfacility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility amount | 200 | ||
Swingline Subfacility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility amount | 50 | ||
Letter of Credit Subfacility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility amount | 50 | ||
Foreign Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility amount | 7 | ||
Borrowings under revolving credit agreement | 0 | $ 0 | $ 0 |
Public Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 375 | ||
Interest rate | 6.125% | ||
July Thirteenth Two Thousand Twenty [Member] | Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 450 | ||
Weighted average interest rate | 2.16% |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | $ (56.1) | $ (49.5) | ||
Other comprehensive income (loss) before reclassifications | [1] | (1.1) | (11) | |
Amounts reclassified from AOCI | (0.4) | 2.3 | ||
Income tax expense (benefit) | 0.1 | (1) | ||
Net reclassifications | (0.3) | 1.3 | ||
Other comprehensive income (loss) | [1] | (1.4) | (9.7) | |
Ending balance AOCI | (57.5) | (59.2) | ||
Foreign exchange contracts [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | 6.4 | 8.6 | ||
Other comprehensive income (loss) before reclassifications | [1] | (1.9) | 7.1 | |
Amounts reclassified from AOCI | [2] | (1.8) | (2.5) | |
Income tax expense (benefit) | 0.5 | 0.7 | ||
Net reclassifications | (1.3) | (1.8) | ||
Other comprehensive income (loss) | [1] | (3.2) | 5.3 | |
Ending balance AOCI | 3.2 | 13.9 | ||
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (2.4) | 0.4 | ||
Other comprehensive income (loss) before reclassifications | [1] | (4.2) | (0.7) | |
Amounts reclassified from AOCI | 0.3 | [3] | 0 | |
Income tax expense (benefit) | (0.1) | 0 | ||
Net reclassifications | 0.2 | 0 | ||
Other comprehensive income (loss) | [1] | (4) | (0.7) | |
Ending balance AOCI | (6.4) | (0.3) | ||
Foreign currency translation adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (47.3) | (16.9) | ||
Other comprehensive income (loss) before reclassifications | [1] | 5 | (17.4) | |
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | ||
Net reclassifications | 0 | 0 | ||
Other comprehensive income (loss) | [1] | 5 | (17.4) | |
Ending balance AOCI | (42.3) | (34.3) | ||
Pension adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (12.8) | (41.6) | ||
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | |
Amounts reclassified from AOCI | [4] | 1.1 | 4.8 | |
Income tax expense (benefit) | (0.3) | (1.7) | ||
Net reclassifications | 0.8 | 3.1 | ||
Other comprehensive income (loss) | [1] | 0.8 | 3.1 | |
Ending balance AOCI | $ (12) | $ (38.5) | ||
[1] | Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. | |||
[2] | Amounts reclassified are included in cost of goods sold. | |||
[3] | Amounts reclassified are included in interest expense. | |||
[4] | Amounts reclassified are included in the computation of net pension expense. |
Financial Instruments and Ris44
Financial Instruments and Risk Management (Fair Value of Debt) (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Fair Value Disclosures [Abstract] | |||
Long-term debt, including current maturities, excluding capital leases | $ 809.7 | $ 809.2 | $ 829.8 |
Fair value, long-term debt, including current maturities | $ 847 | $ 836.3 | $ 877.8 |
Financial Instruments and Ris45
Financial Instruments and Risk Management (Additional Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | Jan. 02, 2016USD ($) | |
Interest Rate Swap [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Number of interest rate swap agreements | 2 | ||
Financial instrument expiration date | Oct. 6, 2017 | ||
Notional amount | $ 583.9 | $ 386.6 | $ 609.7 |
Foreign exchange contracts [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Maximum remaining maturity of foreign currency derivatives | 349 days | 370 days | 349 days |
Interest Rate Swap Forward Starting [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Financial instrument expiration date | Jul. 13, 2020 | ||
Notional amount | $ 288.8 | ||
Derivative, Effective Date | Oct. 17, 2016 |
Financial Instruments and Ris46
Financial Instruments and Risk Management (Derivative Notional Amounts) (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Foreign exchange contracts [Member] | Hedge [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 162.5 | $ 192.6 | $ 136.8 |
Foreign exchange contracts [Member] | Non-hedge [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 13.5 | 23.2 | 0 |
Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 583.9 | $ 609.7 | $ 386.6 |
Financial Instruments and Ris47
Financial Instruments and Risk Management (Financial Assets and Liabilities Measured at Fair Value) (Details) - Quoted Prices with Other Observable Inputs (Level 2) [Member] - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap asset | $ 0 | $ 0.2 | $ 0 |
Interest rate swap liability | 9.8 | 3.9 | 0.4 |
Hedge [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign exchange contracts asset | 2.3 | 6.7 | 10.4 |
Foreign exchange contracts liability | 1.4 | 0 | 0 |
Non-hedge [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign exchange contracts asset | 0 | 0.5 | 0 |
Foreign exchange contracts liability | $ 0 | $ 0.1 | $ 0 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 7.6 | $ 6.7 |
Related income tax benefits on share based compensation | $ 2.6 | $ 2.2 |
Common stock issued in connection with new restricted stock grants and exercise of stock options | 2,090,153 | 1,746,536 |
Common stock cancelled as result of forfeitures | 200,215 | 143,010 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Assumptions) (Details) - $ / shares | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average fair values of options granted | $ 3.27 | $ 6.30 | |
Expected market price volatility | [1] | 27.10% | 28.80% |
Risk-free interest rate | [2] | 1.00% | 1.30% |
Dividend yield | [3] | 1.40% | 0.90% |
Expected term | [4] | 4 years | 4 years |
Expected term, Historical volatility term | 4 years | 4 years | |
[1] | Based on historical volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over the four years prior to the grant. | ||
[2] | Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. | ||
[3] | Represents the Company’s estimated cash dividend yield for the expected term. | ||
[4] | Represents the period of time that options granted are expected to be outstanding. As part of the determination of the expected term, the Company concluded that all employee groups exhibit similar exercise and post-vesting termination behavior. |
Retirement Plans (Summary of Ne
Retirement Plans (Summary of Net Pension and Supplemental Executive Retirement Plan Expense Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost pertaining to benefits earned during the period | $ 1.5 | $ 2.1 |
Interest cost on projected benefit obligations | 4.4 | 4.2 |
Expected return on pension assets | (4.6) | (4.7) |
Net amortization loss | 1.1 | 4.8 |
Net pension expense | $ 2.4 | $ 6.4 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 31.40% | 27.30% |
Litigation and Contingencies (M
Litigation and Contingencies (Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company) (Details) $ in Millions | Mar. 26, 2016USD ($) |
Royalties [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,016 | $ 1.5 |
2,017 | 1.8 |
2,018 | 1.4 |
2,019 | 1.5 |
2,020 | 1.5 |
Thereafter | 0 |
Advertising [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,016 | 3.9 |
2,017 | 3.2 |
2,018 | 3.3 |
2,019 | 3.4 |
2,020 | 3.5 |
Thereafter | $ 7.4 |
Litigation and Contingencies (A
Litigation and Contingencies (Additional Information) (Details) - Licensing agreements [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Long-term Purchase Commitment [Line Items] | ||
Royalty expense, licensing agreements | $ 0.4 | $ 0.5 |
Advertising expense, licensing agreements | $ 0.7 | $ 0.8 |
Business Segments (Additional I
Business Segments (Additional Information) (Details) | 3 Months Ended |
Mar. 26, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Business Segments (Revenue and
Business Segments (Revenue and Operating Profit by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 577.6 | $ 631.4 |
Operating profit (loss) | 34 | 63.6 |
Wolverine Outdoor and Lifestyle Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 217.7 | 231.1 |
Operating profit (loss) | 48.8 | 54.7 |
Wolverine Boston Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 209.1 | 234.3 |
Operating profit (loss) | 27.7 | 37.3 |
Wolverine Heritage Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 71.8 | 81.4 |
Operating profit (loss) | 8.5 | 11.8 |
Wolverine Multi-Brand Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 68.4 | 71.9 |
Operating profit (loss) | (1.4) | (1.7) |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 10.6 | 12.7 |
Operating profit (loss) | 0.5 | 1.2 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss) | $ (50.1) | $ (39.7) |
Business Segments (Assets and G
Business Segments (Assets and Goodwill by Segment) (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 | Jan. 03, 2015 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 2,424.6 | $ 2,434.4 | $ 2,428.1 | |
Goodwill | 430.2 | 429.1 | 434.1 | $ 438.8 |
Wolverine Outdoor and Lifestyle Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 494.7 | 444.2 | 485.2 | |
Goodwill | 129.7 | 130.4 | 130.7 | |
Wolverine Boston Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,328 | 1,324.2 | 1,344.6 | |
Goodwill | 258 | 256.2 | 260.8 | |
Wolverine Heritage Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 154.2 | 169.9 | 149.6 | |
Goodwill | 16.5 | 16.5 | 16.5 | |
Wolverine Multi-Brand Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 188.2 | 204.3 | 208.3 | |
Goodwill | 26 | 26 | 26.1 | |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 29.8 | 23.9 | 30.7 | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 229.7 | $ 267.9 | $ 209.7 |
Restructuring Activities (Restr
Restructuring Activities (Restructuring Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring costs | $ 3.9 | $ 0 |
Restructuring and impairment costs | 10.7 | (1) |
Amounts paid | (6.7) | (3.5) |
Consumer Direct Operations [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 8.6 | 7.5 |
Restructuring and impairment costs | 11 | (1) |
Amounts paid | (5.2) | (3.5) |
Charges against assets | (7.1) | |
Restructuring reserve, ending balance | 7.3 | 3 |
Consumer Direct Operations [Member] | Severance and employee related [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 2.1 | 1 |
Restructuring and impairment costs | 1.2 | 0.7 |
Amounts paid | (1.4) | (1.1) |
Restructuring reserve, ending balance | 1.9 | 0.6 |
Consumer Direct Operations [Member] | Impairment of property and equipment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 0 |
Restructuring and impairment costs | 0.2 | 0 |
Amounts paid | 0 | 0 |
Charges against assets | (0.2) | |
Restructuring reserve, ending balance | 0 | 0 |
Consumer Direct Operations [Member] | Exit or disposal activities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 6.5 | 6.5 |
Restructuring and impairment costs | 9.6 | (1.7) |
Amounts paid | (3.8) | (2.4) |
Charges against assets | (6.9) | |
Restructuring reserve, ending balance | $ 5.4 | $ 2.4 |
Restructuring Activities (Addit
Restructuring Activities (Additional Information) (Details) $ in Millions | 3 Months Ended | |
Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | $ 10.7 | $ (1) |
Consumer Direct Operations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative restructuring costs incurred | $ 49.5 | |
Number of retail stores closed | 136 | |
Non-cash charges | $ 23 | |
Estimated annualized pretax benefit | 16 | |
Restructuring and impairment costs | 11 | (1) |
Consumer Direct Operations [Member] | Cost of goods sold [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative restructuring costs incurred | 6.5 | |
Consumer Direct Operations [Member] | Selling, general and administrative expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative restructuring costs incurred | 43 | |
Organizational Changes [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 3.3 | |
Brand Discontinuation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 0.3 | |
Impairment of property and equipment [Member] | Consumer Direct Operations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 0.2 | $ 0 |
Maximum [Member] | Organizational Changes [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated restructuring costs remaining | 5.5 | |
Minimum [Member] | Organizational Changes [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated restructuring costs remaining | $ 4.5 |
Subsidiary Guarantors of the 59
Subsidiary Guarantors of the Public Bonds (Additional Information) (Details) | Mar. 26, 2016 |
Condensed Financial Information of Parent Company [Abstract] | |
Ownership percentage of subsidiaries by parent | 100.00% |
Subsidiary Guarantors of the 60
Subsidiary Guarantors of the Public Bonds (Consolidated Condensed Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $ 577.6 | $ 631.4 |
Cost of goods sold | 344.9 | 370 |
Restructuring costs | 3.9 | 0 |
Gross profit | 228.8 | 261.4 |
Selling, general and administrative expenses | 184.1 | 198.8 |
Restructuring and impairment costs (gain) | 10.7 | (1) |
Operating Income (Loss) | 34 | 63.6 |
Other expenses: | ||
Interest expense (income), net | 8.5 | 9.5 |
Other expense (income), net | (0.1) | (1) |
Total other expenses (income) | 8.4 | 8.5 |
Earnings (loss) before income taxes | 25.6 | 55.1 |
Income tax expense (benefit) | 8 | 15 |
Earnings (loss) before equity in earnings of consolidated subsidiaries | 17.6 | 40.1 |
Net earnings | 17.6 | 40.1 |
Less: net earnings (loss) attributable to noncontrolling interests | 0.2 | 0 |
Net earnings attributable to Wolverine World Wide, Inc. | 17.4 | 40.1 |
Comprehensive income | 15.9 | 30.2 |
Less: comprehensive income (loss) attributable to noncontrolling interest | (0.1) | (0.2) |
Comprehensive income attributable to Wolverine World Wide, Inc. | 16 | 30.4 |
Parent [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | 135.8 |
Cost of goods sold | 1.5 | 98.5 |
Restructuring costs | 0.3 | |
Gross profit | (1.8) | 37.3 |
Selling, general and administrative expenses | 23.5 | 47.7 |
Restructuring and impairment costs (gain) | 1.5 | 0.4 |
Operating Income (Loss) | (26.8) | (10.8) |
Other expenses: | ||
Interest expense (income), net | 8.7 | 9.5 |
Total other expenses (income) | 8.7 | 9.5 |
Earnings (loss) before income taxes | (35.5) | (20.3) |
Income tax expense (benefit) | (13.3) | (7.9) |
Earnings (loss) before equity in earnings of consolidated subsidiaries | (22.2) | (12.4) |
Equity in earnings (loss) of consolidated subsidiaries | 39.6 | 52.5 |
Net earnings | 17.4 | 40.1 |
Net earnings attributable to Wolverine World Wide, Inc. | 17.4 | 40.1 |
Comprehensive income | 15.7 | 30.4 |
Less: comprehensive income (loss) attributable to noncontrolling interest | (0.3) | |
Comprehensive income attributable to Wolverine World Wide, Inc. | 16 | 30.4 |
Subsidiary Guarantors [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 650.6 | 947.7 |
Cost of goods sold | 469 | 811 |
Restructuring costs | 3.6 | |
Gross profit | 178 | 136.7 |
Selling, general and administrative expenses | 130.2 | 106.8 |
Restructuring and impairment costs (gain) | 5.6 | 0.6 |
Operating Income (Loss) | 42.2 | 29.3 |
Other expenses: | ||
Interest expense (income), net | (0.1) | 0.1 |
Other expense (income), net | 0.3 | (1.2) |
Total other expenses (income) | 0.2 | (1.1) |
Earnings (loss) before income taxes | 42 | 30.4 |
Income tax expense (benefit) | 15.8 | 11.8 |
Earnings (loss) before equity in earnings of consolidated subsidiaries | 26.2 | 18.6 |
Equity in earnings (loss) of consolidated subsidiaries | 26.5 | (39.4) |
Net earnings | 52.7 | (20.8) |
Net earnings attributable to Wolverine World Wide, Inc. | 52.7 | (20.8) |
Comprehensive income | 52.7 | (20.8) |
Comprehensive income attributable to Wolverine World Wide, Inc. | 52.7 | (20.8) |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 132.2 | 191.2 |
Cost of goods sold | 64.6 | 89.3 |
Gross profit | 67.6 | 101.9 |
Selling, general and administrative expenses | 45.4 | 58.8 |
Restructuring and impairment costs (gain) | 3.6 | (2) |
Operating Income (Loss) | 18.6 | 45.1 |
Other expenses: | ||
Interest expense (income), net | (0.1) | (0.1) |
Other expense (income), net | (0.4) | 0.2 |
Total other expenses (income) | (0.5) | 0.1 |
Earnings (loss) before income taxes | 19.1 | 45 |
Income tax expense (benefit) | 5.5 | 11.1 |
Earnings (loss) before equity in earnings of consolidated subsidiaries | 13.6 | 33.9 |
Equity in earnings (loss) of consolidated subsidiaries | 8.2 | 61.7 |
Net earnings | 21.8 | 95.6 |
Less: net earnings (loss) attributable to noncontrolling interests | 0.2 | |
Net earnings attributable to Wolverine World Wide, Inc. | 21.6 | 95.6 |
Comprehensive income | 23.3 | 83.3 |
Less: comprehensive income (loss) attributable to noncontrolling interest | (0.1) | (0.2) |
Comprehensive income attributable to Wolverine World Wide, Inc. | 23.4 | 83.5 |
Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | (205.2) | (643.3) |
Cost of goods sold | (190.2) | (628.8) |
Gross profit | (15) | (14.5) |
Selling, general and administrative expenses | (15) | (14.5) |
Other expenses: | ||
Equity in earnings (loss) of consolidated subsidiaries | (74.3) | (74.8) |
Net earnings | (74.3) | (74.8) |
Net earnings attributable to Wolverine World Wide, Inc. | (74.3) | (74.8) |
Comprehensive income | (75.8) | (62.7) |
Less: comprehensive income (loss) attributable to noncontrolling interest | 0.3 | |
Comprehensive income attributable to Wolverine World Wide, Inc. | $ (76.1) | $ (62.7) |
Subsidiary Guarantors of the 61
Subsidiary Guarantors of the Public Bonds (Consolidated Condensed Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 | Mar. 28, 2015 | Jan. 03, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 158.2 | $ 194.1 | $ 121.3 | $ 223.8 |
Accounts receivable, net | 326 | 298.9 | 357.2 | |
Inventories: | ||||
Finished products, net | 462.6 | 448 | 404.3 | |
Raw materials and work-in-process, net | 18.2 | 18.6 | 15.5 | |
Total inventories | 480.8 | 466.6 | 419.8 | |
Deferred income taxes | 0 | 0 | 27.9 | |
Prepaid expenses and other current assets | 40.3 | 54.2 | 61.9 | |
Total current assets | 1,005.3 | 1,013.8 | 988.1 | |
Property, plant and equipment: | ||||
Gross cost | 440.5 | 431.5 | 420.3 | |
Accumulated depreciation | (305.2) | (299.9) | (285) | |
Property plant and equipment net | 135.3 | 131.6 | 135.3 | |
Other assets: | ||||
Goodwill | 430.2 | 429.1 | 434.1 | 438.8 |
Indefinite-lived intangibles | 685.4 | 685.4 | 690.5 | 690.5 |
Amortizable intangibles, net | 93.8 | 97.3 | 108.7 | |
Deferred income taxes | 3 | 3.7 | 2.7 | |
Other | 71.6 | 73.5 | 68.7 | |
Total other assets | 1,284 | 1,289 | 1,304.7 | |
Total assets | 2,424.6 | 2,434.4 | 2,428.1 | |
Current liabilities: | ||||
Accounts payable | 105.9 | 199.7 | 96.4 | |
Accrued salaries and wages | 18.1 | 28.5 | 18.1 | |
Other accrued liabilities | 123.1 | 108.2 | 121.3 | |
Current maturities of long-term debt | 16.9 | 16.9 | 42 | |
Borrowings under revolving credit agreement | 60 | 0 | 14.5 | |
Total current liabilities | 324 | 353.3 | 292.3 | |
Long-term debt, less current maturities | 793.4 | 792.9 | 788.4 | |
Accrued pension liabilities | 110.2 | 109.6 | 129.1 | |
Deferred income taxes | 177.4 | 178.6 | 220 | |
Other liabilities | 38.5 | 30.3 | 26.9 | |
Stockholders’ equity | ||||
Wolverine World Wide, Inc. stockholders’ equity | 974.4 | 963.7 | 967.1 | |
Noncontrolling interest | 6.7 | 6 | 4.3 | |
Total stockholders’ equity | 981.1 | 969.7 | 971.4 | |
Total liabilities and stockholders’ equity | 2,424.6 | 2,434.4 | 2,428.1 | |
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 16.2 | 27.2 | 109.9 | 11.4 |
Accounts receivable, net | 3.3 | 84.8 | 15.6 | |
Inventories: | ||||
Finished products, net | 0 | (0.8) | 65.5 | |
Raw materials and work-in-process, net | 0 | 0.8 | 0.7 | |
Total inventories | 0 | 0 | 66.2 | |
Deferred income taxes | 12.8 | |||
Prepaid expenses and other current assets | 5.6 | 10.7 | 45.2 | |
Total current assets | 25.1 | 122.7 | 249.7 | |
Property, plant and equipment: | ||||
Gross cost | 191.2 | 228.4 | 234.6 | |
Accumulated depreciation | (148.3) | (178.1) | (185.8) | |
Property plant and equipment net | 42.9 | 50.3 | 48.8 | |
Other assets: | ||||
Goodwill | 2.7 | 2.7 | 7.8 | |
Indefinite-lived intangibles | 3.8 | 3.8 | 4.3 | |
Amortizable intangibles, net | 0.5 | 0.6 | 0.5 | |
Deferred income taxes | 0 | |||
Other | 40.4 | 54.1 | 53.3 | |
Intercompany accounts receivable | 22.1 | 19.8 | 22.1 | |
Investment in affiliates | 3,509.1 | 3,388.4 | 3,193.1 | |
Total other assets | 3,578.6 | 3,469.4 | 3,281.1 | |
Total assets | 3,646.6 | 3,642.4 | 3,579.6 | |
Current liabilities: | ||||
Accounts payable | 12 | 37.3 | 24.4 | |
Accrued salaries and wages | 7.1 | 17.2 | 9.3 | |
Other accrued liabilities | 42.1 | 42.6 | 36.4 | |
Current maturities of long-term debt | 16.9 | 16.9 | 42 | |
Borrowings under revolving credit agreement | 60 | 14.5 | ||
Total current liabilities | 138.1 | 114 | 126.6 | |
Long-term debt, less current maturities | 792.8 | 792.3 | 787.8 | |
Accrued pension liabilities | 92 | 91.2 | 107.9 | |
Deferred income taxes | (74.6) | (75.2) | (57.5) | |
Other liabilities | 23 | 17 | 13.9 | |
Intercompany accounts payable | 1,700.9 | 1,739.4 | 1,633.8 | |
Stockholders’ equity | ||||
Wolverine World Wide, Inc. stockholders’ equity | 974.4 | 963.7 | 967.1 | |
Noncontrolling interest | 0 | |||
Total stockholders’ equity | 974.4 | 963.7 | 967.1 | |
Total liabilities and stockholders’ equity | 3,646.6 | 3,642.4 | 3,579.6 | |
Subsidiary Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 2.4 | 2.6 | (87.8) | 3.3 |
Accounts receivable, net | 221.5 | 105.8 | 204 | |
Inventories: | ||||
Finished products, net | 363.3 | 371.7 | 256.5 | |
Raw materials and work-in-process, net | 4.5 | 1.8 | 1.2 | |
Total inventories | 367.8 | 373.5 | 257.7 | |
Deferred income taxes | 14 | |||
Prepaid expenses and other current assets | 23.9 | 24.9 | (0.5) | |
Total current assets | 615.6 | 506.8 | 387.4 | |
Property, plant and equipment: | ||||
Gross cost | 218.1 | 170.5 | 152.8 | |
Accumulated depreciation | (141.7) | (103.6) | (76.7) | |
Property plant and equipment net | 76.4 | 66.9 | 76.1 | |
Other assets: | ||||
Goodwill | 353.7 | 353.3 | 353 | |
Indefinite-lived intangibles | 675.3 | 675.3 | 674.9 | |
Amortizable intangibles, net | 93.3 | 96.7 | 108.1 | |
Other | 27.8 | 15.6 | 12 | |
Intercompany accounts receivable | 3,070.8 | 3,002 | 2,433.4 | |
Investment in affiliates | 882.8 | 854 | 961.3 | |
Total other assets | 5,103.7 | 4,996.9 | 4,542.7 | |
Total assets | 5,795.7 | 5,570.6 | 5,006.2 | |
Current liabilities: | ||||
Accounts payable | 68.4 | 98.7 | 35.7 | |
Accrued salaries and wages | 6.7 | 4.3 | 4.9 | |
Other accrued liabilities | 44.1 | 35.6 | 44.7 | |
Borrowings under revolving credit agreement | 0 | 0 | ||
Total current liabilities | 119.2 | 138.6 | 85.3 | |
Long-term debt, less current maturities | 0.6 | 0.6 | 0.6 | |
Accrued pension liabilities | 18.2 | 18.4 | 21.2 | |
Deferred income taxes | 249.8 | 249.8 | 274.7 | |
Other liabilities | 13.5 | 11.2 | 10.4 | |
Intercompany accounts payable | 1,486 | 1,360 | 856.5 | |
Stockholders’ equity | ||||
Wolverine World Wide, Inc. stockholders’ equity | 3,908.4 | 3,792 | 3,757.5 | |
Noncontrolling interest | 0 | |||
Total stockholders’ equity | 3,908.4 | 3,792 | 3,757.5 | |
Total liabilities and stockholders’ equity | 5,795.7 | 5,570.6 | 5,006.2 | |
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 139.6 | 164.3 | 99.2 | 209.1 |
Accounts receivable, net | 101.2 | 108.3 | 137.6 | |
Inventories: | ||||
Finished products, net | 99.3 | 77.1 | 82.3 | |
Raw materials and work-in-process, net | 13.7 | 16 | 13.6 | |
Total inventories | 113 | 93.1 | 95.9 | |
Deferred income taxes | 1.1 | |||
Prepaid expenses and other current assets | 10.8 | 18.6 | 17.2 | |
Total current assets | 364.6 | 384.3 | 351 | |
Property, plant and equipment: | ||||
Gross cost | 31.2 | 32.6 | 32.9 | |
Accumulated depreciation | (15.2) | (18.2) | (22.5) | |
Property plant and equipment net | 16 | 14.4 | 10.4 | |
Other assets: | ||||
Goodwill | 73.8 | 73.1 | 73.3 | |
Indefinite-lived intangibles | 6.3 | 6.3 | 11.3 | |
Amortizable intangibles, net | 0.1 | |||
Deferred income taxes | 3 | 3.7 | 2.7 | |
Other | 3.4 | 3.8 | 3.4 | |
Intercompany accounts receivable | 603.3 | 583.9 | 501.4 | |
Investment in affiliates | 996.6 | 949.4 | 1,045.5 | |
Total other assets | 1,686.4 | 1,620.2 | 1,637.7 | |
Total assets | 2,067 | 2,018.9 | 1,999.1 | |
Current liabilities: | ||||
Accounts payable | 25.5 | 63.7 | 36.3 | |
Accrued salaries and wages | 4.3 | 7 | 3.9 | |
Other accrued liabilities | 36.9 | 30 | 40.2 | |
Borrowings under revolving credit agreement | 0 | 0 | ||
Total current liabilities | 66.7 | 100.7 | 80.4 | |
Deferred income taxes | 2.2 | 4 | 2.8 | |
Other liabilities | 2 | 2.1 | 2.6 | |
Intercompany accounts payable | 509.3 | 506.3 | 466.6 | |
Stockholders’ equity | ||||
Wolverine World Wide, Inc. stockholders’ equity | 1,480.1 | 1,399.8 | 1,442.4 | |
Noncontrolling interest | 6.7 | 6 | 4.3 | |
Total stockholders’ equity | 1,486.8 | 1,405.8 | 1,446.7 | |
Total liabilities and stockholders’ equity | 2,067 | 2,018.9 | 1,999.1 | |
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Other assets: | ||||
Intercompany accounts receivable | (3,696.2) | (3,605.7) | (2,956.9) | |
Investment in affiliates | (5,388.5) | (5,191.8) | (5,199.9) | |
Total other assets | (9,084.7) | (8,797.5) | (8,156.8) | |
Total assets | (9,084.7) | (8,797.5) | (8,156.8) | |
Current liabilities: | ||||
Borrowings under revolving credit agreement | 0 | 0 | ||
Intercompany accounts payable | (3,696.2) | (3,605.7) | (2,956.9) | |
Stockholders’ equity | ||||
Wolverine World Wide, Inc. stockholders’ equity | (5,388.5) | (5,191.8) | (5,199.9) | |
Total stockholders’ equity | (5,388.5) | (5,191.8) | (5,199.9) | |
Total liabilities and stockholders’ equity | $ (9,084.7) | $ (8,797.5) | $ (8,156.8) |
Subsidiary Guarantors of the 62
Subsidiary Guarantors of the Public Bonds (Consolidated Condensed Statements of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ (78.9) | $ (43) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (9.9) | (6.4) |
Other | (0.6) | (0.7) |
Net cash used in investing activities | (10.5) | (7.1) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreement | 60 | 14.5 |
Payments on long-term debt | 0 | (58) |
Cash dividends paid | (6) | (6.1) |
Purchase of common stock for treasury | (0.1) | 0 |
Purchases of shares under employee stock plans | (4.2) | (7.4) |
Proceeds from the exercise of stock options | 1.9 | 5.8 |
Excess tax benefits from stock-based compensation | 0.1 | 3.4 |
Contributions from noncontrolling interests | 0.8 | 0 |
Net cash provided by (used in) financing activities | 52.5 | (47.8) |
Effect of foreign exchange rate changes | 1 | (4.6) |
Decrease in cash and cash equivalents | (35.9) | (102.5) |
Cash and cash equivalents at beginning of the year | 194.1 | 223.8 |
Cash and cash equivalents at end of the period | 158.2 | 121.3 |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (59) | 150.8 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (3.1) | (3.9) |
Other | (0.6) | (0.6) |
Net cash used in investing activities | (3.7) | (4.5) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreement | 60 | 14.5 |
Payments on long-term debt | (58) | |
Cash dividends paid | (6) | (6.1) |
Purchase of common stock for treasury | (0.1) | |
Purchases of shares under employee stock plans | (4.2) | (7.4) |
Proceeds from the exercise of stock options | 1.9 | 5.8 |
Excess tax benefits from stock-based compensation | 0.1 | 3.4 |
Contributions from noncontrolling interests | 0 | |
Net cash provided by (used in) financing activities | 51.7 | (47.8) |
Decrease in cash and cash equivalents | (11) | 98.5 |
Cash and cash equivalents at beginning of the year | 27.2 | 11.4 |
Cash and cash equivalents at end of the period | 16.2 | 109.9 |
Subsidiary Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 4.6 | (88.8) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (4.8) | (2.2) |
Other | (0.1) | |
Net cash used in investing activities | (4.8) | (2.3) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreement | 0 | 0 |
Purchase of common stock for treasury | 0 | |
Contributions from noncontrolling interests | 0 | |
Decrease in cash and cash equivalents | (0.2) | (91.1) |
Cash and cash equivalents at beginning of the year | 2.6 | 3.3 |
Cash and cash equivalents at end of the period | 2.4 | (87.8) |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (24.5) | (105) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (2) | (0.3) |
Net cash used in investing activities | (2) | (0.3) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreement | 0 | 0 |
Purchase of common stock for treasury | 0 | |
Contributions from noncontrolling interests | 0.8 | |
Net cash provided by (used in) financing activities | 0.8 | |
Effect of foreign exchange rate changes | 1 | (4.6) |
Decrease in cash and cash equivalents | (24.7) | (109.9) |
Cash and cash equivalents at beginning of the year | 164.3 | 209.1 |
Cash and cash equivalents at end of the period | 139.6 | 99.2 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
INVESTING ACTIVITIES | ||
Net cash used in investing activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of foreign exchange rate changes | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the year | 0 | 0 |
Cash and cash equivalents at end of the period | $ 0 | $ 0 |