Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 26, 2019 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WOLVERINE WORLD WIDE INC /DE/ | |
Entity Central Index Key | 0000110471 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 88,754,695 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 523.4 | $ 534.1 |
Cost of goods sold | 303.2 | 306.2 |
Gross profit | 220.2 | 227.9 |
Selling, general and administrative expenses | 164 | 163.7 |
Environmental and other related costs | 3.8 | 2.7 |
Operating profit | 52.4 | 61.5 |
Other expenses: | ||
Interest expense, net | 6.9 | 7.2 |
Other income, net | (1.3) | (0.6) |
Total other expenses | 5.6 | 6.6 |
Earnings before income taxes | 46.8 | 54.9 |
Income tax expense | 6.2 | 8.3 |
Net earnings | 40.6 | 46.6 |
Less: net earnings (loss) attributable to noncontrolling interests | 0.1 | (0.1) |
Net earnings attributable to Wolverine World Wide, Inc. | $ 40.5 | $ 46.7 |
Net earnings per share (see Note 3): | ||
Basic | $ 0.44 | $ 0.49 |
Diluted | $ 0.43 | $ 0.48 |
Comprehensive income | $ 43.4 | $ 46.1 |
Less: comprehensive income attributable to noncontrolling interests | 0.3 | 0.2 |
Comprehensive income attributable to Wolverine World Wide, Inc. | $ 43.1 | $ 45.9 |
Cash dividends declared per share | $ 0.10 | $ 0.08 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 80.6 | $ 143.1 | $ 257.1 |
Accounts receivable, less allowances: March 30, 2019: $25.7; December 29, 2018: $26.6; March 31, 2018: $33.6 | 375.5 | 361.2 | 295.3 |
Inventories: | |||
Finished products, net | 359.2 | 301.4 | 278.7 |
Raw materials and work-in-process, net | 14.8 | 16.2 | 11.8 |
Total inventories | 374 | 317.6 | 290.5 |
Prepaid expenses and other current assets | 45.4 | 45.8 | 37.5 |
Total current assets | 875.5 | 867.7 | 880.4 |
Property, plant and equipment: | |||
Gross cost | 385.6 | 381.8 | 394.5 |
Accumulated depreciation | (252.6) | (250.9) | (260.8) |
Property plant and equipment net | 133 | 130.9 | 133.7 |
Lease right-of-use assets, net | 157.2 | 0 | 0 |
Other assets: | |||
Goodwill | 425.9 | 424.4 | 429.3 |
Indefinite-lived intangibles | 604.5 | 604.5 | 604.5 |
Amortizable intangibles, net | 70.7 | 71.9 | 75.6 |
Deferred income taxes | 3.4 | 3.1 | 4.5 |
Other | 81.1 | 80.6 | 76 |
Total other assets | 1,185.6 | 1,184.5 | 1,189.9 |
Total assets | 2,351.3 | 2,183.1 | 2,204 |
Current liabilities: | |||
Accounts payable | 112.6 | 202.3 | 97.2 |
Accrued salaries and wages | 16.9 | 31.9 | 17.5 |
Other accrued liabilities | 98 | 106.4 | 120 |
Current maturities of long-term debt | 10 | 7.5 | 41.2 |
Borrowings under revolving credit agreements and other short-term notes | 326 | 125 | 0.8 |
Operating Lease, Liability, Current | 28.6 | 0 | 0 |
Total current liabilities | 592.1 | 473.1 | 276.7 |
Long-term debt, less current maturities | 435.3 | 438 | 630.3 |
Operating Lease, Liability, Noncurrent | 147.3 | 0 | 0 |
Accrued pension liabilities | 92.1 | 92 | 142 |
Deferred income taxes | 108.6 | 107.9 | 84.4 |
Other liabilities | 58.6 | 80.5 | 113.3 |
Wolverine World Wide, Inc. stockholders’ equity: | |||
Common Stock - par value $1, authorized 320,000,000 shares; shares issued (including shares in treasury): March 30, 2019: 107,881,756 shares; December 29, 2018: 107,609,206 shares; March 31, 2018: 106,825,575 shares | 107.9 | 107.6 | 106.8 |
Additional paid-in capital | 208 | 201.4 | 163.1 |
Retained earnings | 1,201.2 | 1,169.7 | 1,039.4 |
Accumulated other comprehensive loss | (85.7) | (88.3) | (84.1) |
Cost of shares in treasury: March 30, 2019: 19,152,384 shares; December 29, 2018: 15,905,681 shares; March 31, 2018: 12,048,223 shares | (520) | (404.4) | (273.7) |
Total Wolverine World Wide, Inc. stockholders’ equity | 911.4 | 986 | 951.5 |
Noncontrolling interest | 5.9 | 5.6 | 5.8 |
Total stockholders’ equity | 917.3 | 991.6 | 957.3 |
Total liabilities and stockholders’ equity | $ 2,351.3 | $ 2,183.1 | $ 2,204 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Accounts receivable allowance | $ 25.7 | $ 26.6 | $ 33.6 |
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 shares in treasury) | 107,881,756 | 107,609,206 | 106,825,575 |
Treasury shares | 19,152,384 | 15,905,681 | 12,048,223 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 40.6 | $ 46.6 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 7.2 | 7.8 |
Deferred income taxes | (0.4) | (0.5) |
Stock-based compensation expense | 6.6 | 7.9 |
Pension contribution | 0 | (0.3) |
Pension and SERP expense | 1.4 | 1.5 |
Cash payments related to restructuring costs | (0.1) | (3.1) |
Environmental and other related costs, net of cash payments | (1) | (0.9) |
Other | (5.9) | 0.3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13.6) | (23.9) |
Inventories | (56.3) | (13.6) |
Other operating assets | 0.5 | 8.2 |
Accounts payable | (89.6) | (65.3) |
Income taxes payable | (0.5) | (0.9) |
Other operating liabilities | (21.3) | (25.1) |
Net cash used in operating activities | (132.4) | (61.3) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (7.8) | (3.4) |
Other | (0.1) | (0.7) |
Net cash used in investing activities | (7.9) | (4.1) |
FINANCING ACTIVITIES | ||
Net borrowings under revolving credit agreements and other short-term notes | 201 | 0.3 |
Payments on long-term debt | 0 | (111.3) |
Payments of debt issuance costs | (0.3) | 0 |
Cash dividends paid | (7.9) | (5.8) |
Purchases of common stock for treasury | (103.1) | (42.5) |
Employee taxes paid under stock-based compensation plans | (16.3) | (7.9) |
Proceeds from the exercise of stock options | 4.1 | 8.1 |
Net cash provided by (used in) financing activities | 77.5 | (159.1) |
Effect of foreign exchange rate changes | 0.3 | 0.6 |
Decrease in cash and cash equivalents | (62.5) | (223.9) |
Cash and cash equivalents at beginning of the year | 143.1 | 481 |
Cash and cash equivalents at end of the quarter | $ 80.6 | $ 257.1 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | |
Beginning Balance at Dec. 30, 2017 | $ 955.2 | $ 106.4 | $ 149.2 | $ 992.2 | $ (75.2) | $ (223) | $ 5.6 | |
Net earnings attributable to Wolverine World Wide, Inc. | 46.7 | |||||||
Less: net earnings (loss) attributable to noncontrolling interests | (0.1) | |||||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 46.6 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | [1] | (0.8) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0.3 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (0.5) | |||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (1.8) | (0.1) | (1.7) | |||||
Stock Issued During Period, Value, Stock Options Exercised | 8.1 | 0.5 | 7.6 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 7.9 | 7.9 | ||||||
Dividends, Common Stock, Cash | 7.6 | 7.6 | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 0.1 | (0.1) | 0 | |||||
Purchase of Common Stock for Treasury | 44.6 | 44.6 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 6.1 | 6.1 | ||||||
Ending Balance at Mar. 31, 2018 | 957.3 | 106.8 | 163.1 | 1,039.4 | (84.1) | (273.7) | 5.8 | |
Beginning Balance at Dec. 29, 2018 | 991.6 | 107.6 | 201.4 | 1,169.7 | (88.3) | (404.4) | 5.6 | |
Net earnings attributable to Wolverine World Wide, Inc. | 40.5 | |||||||
Less: net earnings (loss) attributable to noncontrolling interests | 0.1 | |||||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 40.6 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | [1] | 2.6 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0.2 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 2.8 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (3.8) | 0 | (3.8) | |||||
Stock Issued During Period, Value, Stock Options Exercised | 4.1 | 0.3 | 3.8 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 6.6 | 6.6 | ||||||
Dividends, Common Stock, Cash | 9 | 9 | ||||||
Purchase of Common Stock for Treasury | 103.1 | 103.1 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 12.5 | 12.5 | ||||||
Ending Balance at Mar. 30, 2019 | $ 917.3 | $ 107.9 | $ 208 | $ 1,201.2 | $ (85.7) | $ (520) | $ 5.9 | |
[1] | Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Nature of Operations Wolverine World Wide, Inc. (the “Company”) is a leading designer, marketer and licensor 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 ® , Sperry ® , Stride Rite ® and Wolverine ® . The Company’s products are marketed worldwide through owned operations and through licensing and distribution arrangements with third parties. The Company also operates retail stores and eCommerce sites to market 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 2018 Form 10-K. As described in Note 2, the Company adopted ASU 2016-02, Leases , at the beginning of the first quarter of fiscal 2019. Under the modified retrospective method, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As described in Note 16, the Company realigned certain brands into a new operating segment during the first quarter of fiscal 2019. All prior period disclosures have been restated to reflect the new reportable operating segments. Fiscal Year The Company’s fiscal year is the 52 or 53-week period that ends on the Saturday nearest to December 31. Fiscal years 2019 and 2018 both have 52 weeks. The Company reports its quarterly results of operations on the basis of 13-week quarters for each of the first three fiscal quarters and a 13 or 14-week period for the fiscal fourth quarter. References to particular years or quarters refer to the Company’s fiscal years ended on the Saturday nearest to December 31 or the fiscal quarters within those years. Seasonality The Company’s business is subject to seasonal influences that 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 Ac
New Accounting Standards New Accounting Standards (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | NEW ACCOUNTING STANDARDS The Financial Accounting Standards Board (“FASB”) issued the following Accounting Standards Update (“ASU”) that the Company adopted during 2019 . The following is a summary of the effect of adoption of this new standard. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2016-02, Leases (as amended by ASUs 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01) The core principle is that a lessee shall recognize a lease liability in its statement of financial position for the present value of all future lease payments. A lessee would also recognize a right-of-use asset representing its right to use the underlying asset for the lease term. Under a new transition method, a reporting entity will apply the new lease requirements as of the effective date and continue to report comparative periods presented in the financial statements under GAAP in effect during the comparable periods. The Company adopted ASU 2016-02 at the beginning of the first quarter using the modified retrospective approach and elected the package of practical expedients for its existing leases. The Company recognized a lease liability of $178.1 million, which was equal to the present value of the future lease payments for its portfolio of operating leases. The Company recognized a right-of-use asset of $157.3 million, which is equal to the lease liabilities adjusted for the balance of accrued rent and unamortized lease incentives as of the effective date. The adoption of ASU 2016-02 did not have a material impact on the Company’s results of operations or cash flows. See Note 8 for additional information on the adoption of this standard and disclosures regarding the Company’s leases. The FASB has issued the following ASU that has not yet been adopted by the Company. The following is a summary of the planned adoption period and anticipated impact of adopting this new standard. Standard Description Planned Period of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2016-13, Measurement of Credit Losses on Financial Instruments (as amended by ASU 2018-19) Seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. Q1 2020 The Company is evaluating the impacts of the new standard on its existing financial instruments, including trade receivables. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company calculates earnings per share in accordance with FASB 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. Quarter Ended (In millions, except per share data) March 30, March 31, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 40.5 $ 46.7 Adjustment for earnings allocated to non-vested restricted common stock (0.8 ) (0.9 ) Net earnings used in calculating basic and diluted earnings per share 39.7 45.8 Denominator: Weighted average shares outstanding 91.0 95.7 Adjustment for non-vested restricted common stock (1.0 ) (2.0 ) Shares used in calculating basic earnings per share 90.0 93.7 Effect of dilutive stock options 1.8 1.9 Shares used in calculating diluted earnings per share 91.8 95.6 Net earnings per share: Basic $ 0.44 $ 0.49 Diluted $ 0.43 $ 0.48 For the quarters ended March 30, 2019 and March 31, 2018 , 33,614 and 101,321 outstanding stock options, 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. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangibles | GOODWILL AND INDEFINITE-LIVED INTANGIBLES The changes in the carrying amount of goodwill are as follows: Quarter Ended (In millions) March 30, March 31, Goodwill balance at beginning of the year $ 424.4 $ 429.8 Foreign currency translation effects 1.5 (0.5 ) Goodwill balance at end of the quarter $ 425.9 $ 429.3 The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $ 604.5 million as of March 30, 2019 and December 29, 2018. The carrying value of the Company’s Sperry ® trade name was $ 518.2 million as of March 30, 2019 . If the operating results for Sperry ® were to decline in future periods compared to current projections, the Company may need to record a non-cash impairment charge. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
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 2019. Under the agreement, up to $ 150.0 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 condensed 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 as of the end of the first quarter of 2018. 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. During the third quarter of fiscal 2018, the Company discontinued selling accounts receivables under the agreement. The Company continued to service the outstanding receivables until they were collected. The following is a summary of the stated amount of accounts receivable that was sold as well as fees charged by the financial institution. Quarter Ended (In millions) March 30, March 31, Accounts receivable sold $ — $ 112.6 Fees charged — 0.5 The fees charged are recorded in other expense. Net proceeds of this program are classified in operating activities in the consolidated condensed statements of cash flows. This program reduced the Company's accounts receivable by $ 71.0 million as of March 31, 2018 . |
Revenue From Contracts With Cus
Revenue From Contracts With Customers (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition and Performance Obligations The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers . Revenue is recognized upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration to be received in exchange for those goods or services. The Company identifies the performance obligation in the contract, determines the transaction price, allocates the transaction price to the performance obligations and recognizes revenue upon completion of the performance obligation. Revenue is recognized net of variable consideration and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company holds agreements to license symbolic intellectual property with minimum guarantees or fixed consideration. The Company has $ 39.9 million of remaining fixed transaction price under its license agreements as of March 30, 2019 , which it expects to recognize per the terms of its contracts over the course of time through December 2024 . The Company has elected to omit the remaining variable consideration under its license agreements given the Company recognizes revenue equal to what it has the right to invoice and that amount corresponds directly with the value to the customer of the Company’s performance to date. The Company provides disaggregated revenue by sales channel, including the wholesale and consumer-direct sales channels, reconciled to the Company’s reportable operating segments. The wholesale channel includes royalty revenues due to the similarity in the Company’s oversight and management, customer base, the performance obligation (footwear and apparel goods) and point in time completion of the performance obligation. Quarter Ended March 30, 2019 Quarter Ended March 31, 2018 (In millions) Wholesale Consumer-Direct Total Wholesale Consumer-Direct Total Wolverine Michigan Group $ 272.3 $ 30.4 $ 302.7 $ 271.5 $ 24.4 $ 295.9 Wolverine Boston Group 175.5 29.3 204.8 194.2 24.8 219.0 Other 15.0 0.9 15.9 17.8 1.4 19.2 Total $ 462.8 $ 60.6 $ 523.4 $ 483.5 $ 50.6 $ 534.1 Reserves for Variable Consideration Revenue is recorded at the net sales price (“transaction price”), which includes estimates of variable consideration for which reserves are established. Components of variable consideration include trade discounts and allowances, product returns, customer markdowns, customer rebates and other sales incentives relating to the sale of the Company’s products. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales. These estimates take into consideration a range of possible outcomes, which are probability-weighted in accordance with the expected value method for relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. Revenue recognized during the quarters ended March 30, 2019 and March 31, 2018 , related to the Company’s contract liabilities, was nominal. The Company’s contract balances are as follows: (In millions) March 30, December 29, March 31, Product returns reserve $ 10.9 $ 13.6 $ 13.3 Customer rebates liability 11.3 12.8 10.6 Customer markdowns reserve 4.8 4.0 6.3 Other sales incentives reserves 2.5 2.3 4.2 Customer advances liability 3.5 3.8 5.4 The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from initial estimates. If actual results in the future vary from initial estimates, the Company subsequently adjusts these estimates, which would affect net revenue and earnings in the period such variances become known. |
Debt
Debt | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consists of the following obligations: (In millions) March 30, December 29, March 31, Term Loan A, due December 6, 2023 $ 200.0 $ 200.0 $ 426.9 Senior Notes, 5.000% interest, due September 1, 2026 250.0 250.0 250.0 Borrowings under revolving credit agreements and other short-term notes 326.0 125.0 0.8 Capital lease obligation — 0.4 0.4 Unamortized debt issuance costs (4.7 ) (4.9 ) (5.8 ) Total debt $ 771.3 $ 570.5 $ 672.3 On December 6, 2018, the Company amended its credit agreement (as amended, the "Credit Agreement"). The Credit Agreement includes a $ 200.0 million term loan facility (“Term Loan A”) and an $ 800.0 million Revolving Credit Facility, both with maturity dates of December 6, 2023. 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 $ 1,750.0 million , unless certain specified conditions set forth in the Credit Agreement are met. Term Loan A requires quarterly principal payments with a balloon payment due on December 6, 2023. The scheduled principal payments due over the next 12 months total $ 10.0 million as of March 30, 2019 and are recorded as current maturities of long-term debt on the consolidated condensed balance sheets. The Revolving Credit Facility allows the Company to borrow up to an aggregate amount of $800.0 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 $ 2.3 million , $ 2.5 million and $ 2.5 million as of March 30, 2019 , December 29, 2018 and March 31, 2018 , respectively. These outstanding letters of credit reduce the borrowing capacity under the Revolving Credit Facility. The interest rates applicable to amounts outstanding under Term Loan A 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 0.125% to 0.750% , or (2) the Eurocurrency Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 1.125% to 1.750% (all capitalized terms used in this sentence are as defined in the Credit Agreement). The Company has an interest rate swap arrangement that reduces the Company’s exposure to fluctuations in interest rates on its variable rate debt. At March 30, 2019 , Term Loan A and the Revolving Credit Facility had weighted-average interest rates of 3.31 % and 3.78% , respectively. 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 30, 2019 , the Company was in compliance with all covenants and performance ratios under the Credit Agreement. The Company has $ 250.0 million of senior notes outstanding that are due on September 1, 2026 (the “Senior Notes”). The Senior Notes bear interest at 5.00% with the related interest payments due semi-annually. The Senior Notes are guaranteed by substantially all of the Company’s domestic subsidiaries. The Company has a foreign Revolving Credit Facility with aggregate available borrowings of $ 4.0 million that are uncommitted and, therefore, each borrowing against the facility is subject to approval by the lender. There were no borrowings against this facility as of March 30, 2019 and December 29, 2018 and $ 0.8 million as of March 31, 2018 . Prior to fiscal 2019, the Company had a capital lease obligation. As a result of the adoption of ASU 2016-02, Leases, the capital lease is now classified as a financing lease and is no longer included in long term debt. The Company included in interest expense the amortization of deferred financing costs of $ 0.4 million and $1.0 million for the quarters ended March 30, 2019 and March 31, 2018 , respectively. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | The Company adopted ASU 2016-02, Leases , at the beginning of the first quarter of 2019 using the modified retrospective approach applied to all leases as of the date of application. The Company elected the package of practical expedients for leases existing as of the effective date under which it did not reassess whether contracts contain leases under the new definition of a lease, the lease classification or whether previously capitalized initial direct costs would qualify for capitalization under ASU 2016-02. In addition, the Company did not elect the hindsight practical expedient for considering judgments and estimates relating to its existing leases such as determining the remaining lease term. Description of Leases The Company’s leases consist primarily of corporate offices, retail stores, distribution centers, showrooms, vehicles and office equipment. The Company leases assets in the normal course of business to meet its current and future needs while providing flexibility to its operations. The Company enters into contracts with third parties to lease specifically identified assets. Most of the Company’s leases have contractually specified renewal periods. Most retail store leases have early termination clauses that the Company can elect if stipulated sales amounts are not achieved. The Company determines the lease term for each lease based on the terms of each contract and factors in renewal and early termination options if such options are reasonably certain to be exercised. Accounting for Leases Under FASB ASC Topic 842, Leases , the Company has elected the practical expedient to account for lease components and nonlease components associated with individual leases as a single lease component for all of its leases. In addition, the Company has elected to account for multiple lease components as a single lease component. The Company’s leases may include variable lease costs such as payments based on changes to an index, payments based on a percentage of retail store sales, and maintenance, utilities, shared marketing or other service costs that are paid directly to the lessor under terms of the lease. The Company recognizes variable lease payments when the amounts are incurred and determinable. The Company has elected to account for leases less than one year as short-term leases and accordingly does not recognize a right-of-use asset or lease liability for these leases. The Company recognizes rent expense on a straight-line basis over the lease term. The Company subleases certain portions of leased offices and distribution centers that exceed the Company’s current operational needs. Since the Company utilizes the majority of the leased space and retains the obligation to the lessor, the underlying leases continue to be accounted for as operating leases. Sublease income is recognized on a straight-line basis over the term of the sublease, and beginning in fiscal 2019, is recognized in Other income, net on the consolidated condensed statements of operations and comprehensive income. The Company recognizes a lease liability in current and noncurrent liabilities equal to the present value of the fixed future lease payments using an incremental borrowing rate as of the commencement date of each lease. The incremental borrowing rate is based on interest rate that the Company would normally pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments. The weighted-average discount rate for operating leases as of March 30, 2019 is 5.1 %. The Company also recognizes a right-of-use asset, which is equal to the lease liability as of March 30, 2019 adjusted for the remaining balance of accrued rent and unamortized lease incentives. The following is a summary of the Company’s lease cost. Quarter Ended (In millions) March 30, Operating lease cost $ 8.0 Variable lease cost 3.5 Short-term lease cost 0.2 Sublease income (1.0 ) Total lease cost $ 10.7 The weighted-average remaining lease term for operating leases as of March 30, 2019 is 10.7 years. Future undiscounted cash flows for operating leases for the fiscal periods subsequent to March 30, 2019 are as follows: (In millions) Operating Leases Remainder of 2019 $ 21.6 2020 29.0 2021 26.5 2022 23.9 2023 17.7 Thereafter 111.6 Total future payments 230.3 Less: imputed interest 54.4 Recognized lease liability $ 175.9 The Company made cash payments of $ 9.6 million for operating lease liabilities during the quarter ended March 30, 2019 . During the quarter ended March 30, 2019 , the Company entered into new leases that resulted in the noncash recognition of right-of-use assets and lease liabilities of $ 5.1 million . In addition, the Company entered into real estate leases which will commence subsequent to March 30, 2019 with future undiscounted rental payments of $ 6.9 million . The Company has a financing lease with future payments of $ 0.4 million and a remaining term of 2.8 years. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Mar. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments and Risk Management | DERIVATIVE FINANCIAL INSTRUMENTS The Company follows FASB ASC Topic 815, Derivatives and Hedging ("ASC 815"), which requires that all derivative instruments be recorded on the consolidated condensed balance sheets at fair value by establishing criteria for designation and effectiveness of hedging relationships. The Company does not hold or issue financial instruments for trading purposes. The Company utilizes foreign currency forward exchange contracts designated as cash flow hedges 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 extended out to a maximum of 531 days, 524 days and 545 days, as of March 30, 2019 , December 29, 2018 and March 31, 2018 , respectively. If, in the future, the foreign exchange contracts are determined not to be highly effective or are terminated before their contractual termination dates, the Company would remove the hedge designation from those contracts and reclassify into earnings the unrealized gains or losses that would otherwise be included in AOCI within stockholders’ equity. The Company also utilizes foreign currency forward exchange contracts that are not designated as hedging instruments to manage foreign currency transaction 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 an interest rate swap arrangement, which unless otherwise terminated, will mature on July 13, 2020 . This agreement, which exchanges floating rate for fixed rate interest payments over the life of the agreement without the exchange of the underlying notional amounts, has been designated as a cash flow hedge of the debt. The notional amount of the interest rate swap arrangement is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap arrangement is recognized as interest expense. In accordance with ASC 815, the Company has formally documented the relationship between the interest rate swap 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 hedge’s inception, and continues to assess on an ongoing basis, whether the derivative used in the hedging transaction is highly effective in offsetting changes in the cash flows of the hedged item. The Company has a cross currency swap to minimize the impact of exchange rate fluctuations. The hedging instrument, which, unless otherwise terminated, will mature on September 1, 2021 , has been designated as a hedge of a net investment in a foreign operation. The Company will pay 2.75 % on the euro-denominated notional amount and receive 5.00 % on the U.S. dollar notional amount, with an exchange of principal at maturity. Changes in fair value related to movements in the foreign currency exchange spot rate are recorded in accumulated other comprehensive income (loss) (“AOCI”), offsetting the currency translation adjustment related to the underlying net investment that is also recorded in AOCI. All other changes in fair value are recorded in interest expense. In accordance with ASC 815, the Company has formally documented the relationship between the cross-currency swap and the Company’s investment in its euro-denominated subsidiary, as well as its risk management objective and strategy for undertaking the hedge transaction. This process included linking the derivative to its net investment on the balance sheet. The Company also assessed at the hedge’s inception, and continues to assess on an ongoing basis, whether the derivative used in the hedging transaction is highly effective in offsetting changes in expected cash flows of the hedged item. The notional amounts of the Company’s derivative instruments are as follows: (Dollars in millions) March 30, December 29, March 31, Foreign exchange contracts: Hedge contracts $ 235.3 $ 220.3 $ 198.9 Non-hedge contracts — 4.8 5.5 Interest rate swaps 162.5 181.3 442.0 Cross currency swap 79.8 95.8 106.4 The recorded fair values of the Company’s derivative instruments are as follows: (In millions) March 30, December 29, March 31, Financial assets: Foreign exchange contracts - hedge $ 7.0 $ 8.7 $ 0.9 Interest rate swaps 0.9 1.6 2.3 Financial liabilities: Foreign exchange contracts - hedge $ (1.0 ) $ — $ (3.1 ) Cross currency swap (5.1 ) (8.2 ) (19.0 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company recognized compensation expense of $ 6.6 million and $ 7.9 million and related income tax benefits of $ 1.3 million and $ 1.6 million for grants under its stock-based compensation plans for the quarters ended March 30, 2019 and March 31, 2018 , respectively. The Company grants restricted stock or units (“restricted awards”), performance-based restricted stock or units (“performance awards”) and stock options under its stock-based compensation plans. During the quarter ended March 30, 2019 , the Company issued 482,893 restricted awards at a weighted average grant date fair value of $34.81 per award. During the quarter ended March 31, 2018 , the Company issued 502,775 restricted awards at a weighted average grant date fair value of $ 31.87 per award. During the quarter ended March 30, 2019 , the Company issued 329,089 performance awards at a weighted average grant date fair value of $37.65 per award. During the quarter ended March 31, 2018 , the Company issued 335,315 performance awards at a weighted average grant date fair value of $ 31.85 per award. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS The following is a summary of net pension and Supplemental Executive Retirement Plan (“SERP”) expense recognized by the Company. Quarter Ended (In millions) March 30, March 31, Service cost pertaining to benefits earned during the period $ 1.4 $ 1.6 Interest cost on projected benefit obligations 3.8 4.1 Expected return on pension assets (4.4 ) (5.0 ) Net amortization loss 0.6 0.8 Net pension expense $ 1.4 $ 1.5 The non-service cost components of net pension expense is recorded in the Other income, net line item on the consolidated condensed statements of operations and comprehensive income. The Company made contributions to its pension plans of $ 0.3 million for the quarter ended March 31, 2018 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company maintains management and operational activities in overseas subsidiaries, and its foreign earnings are taxed at rates that are different than the U.S. federal statutory income tax rate. A significant amount of the Company’s earnings are generated by its Canadian, European and Asian subsidiaries and, to a lesser extent, in jurisdictions that are not subject to income tax. The Company intends to permanently reinvest all non-cash undistributed earnings outside of the U.S. and has, therefore not established a deferred tax liability on that amount of foreign unremitted earnings. However, if these non-cash undistributed earnings were repatriated, the Company would be required to accrue and pay applicable U.S. taxes and withholding taxes payable to various countries. It is not practicable to estimate the amount of the deferred tax liability associated with these non-cash unremitted earnings due to the complexity of the hypothetical calculation. The Company’s effective tax rates for the quarters ended March 30, 2019 and March 31, 2018 were 13.2% and 15.1% , respectively. The lower effective tax rate in the current year period reflects the positive net impact from discrete items. 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 condensed 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 2014 in the majority of tax jurisdictions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
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 accumulated other comprehensive income (loss) during the quarters ended March 30, 2019 and March 31, 2018 is as follows: (In millions) Foreign currency translation adjustments Derivatives Pension adjustments Total Balance of AOCI as of December 30, 2017 $ (32.7 ) $ (13.9 ) $ (28.6 ) $ (75.2 ) Other comprehensive income (loss) before reclassifications (1) (0.2 ) (3.2 ) — (3.4 ) Amounts reclassified from AOCI — 2.7 (2) 0.8 (3) 3.5 Income tax expense (benefit) — (0.8 ) (0.1 ) (0.9 ) Net reclassifications — 1.9 0.7 2.6 Net current-period other comprehensive income (loss) (1) (0.2 ) (1.3 ) 0.7 (0.8 ) Reclassifications to retained earnings (4) $ — $ (2.1 ) $ (6.0 ) $ (8.1 ) Balance of AOCI as of March 31, 2018 $ (32.9 ) $ (17.3 ) $ (33.9 ) $ (84.1 ) Balance of AOCI as of December 29, 2018 $ (53.0 ) $ 0.9 $ (36.2 ) $ (88.3 ) Other comprehensive income (loss) before reclassifications (1) 2.4 1.3 — 3.7 Amounts reclassified from AOCI — (1.8 ) (2) 0.6 (3) (1.2 ) Income tax expense (benefit) — 0.2 (0.1 ) 0.1 Net reclassifications — (1.6 ) 0.5 (1.1 ) Net current-period other comprehensive income (loss) (1) 2.4 (0.3 ) 0.5 2.6 Balance of AOCI as of March 30, 2019 $ (50.6 ) $ 0.6 $ (35.7 ) $ (85.7 ) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts related to foreign currency derivatives are included in cost of goods sold. Amounts related to interest rate swaps and the cross-currency swap are included in interest expense. (3) Amounts reclassified are included in the computation of net pension expense. (4) Amounts reclassified to retained earnings upon adoption of ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities and ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS 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. Recurring Fair Value Measurements The following table sets forth financial assets and liabilities measured at fair value in the consolidated condensed 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 30, December 29, March 31, Financial assets: Derivatives $ 7.9 $ 10.3 $ 3.2 Financial liabilities: Derivatives $ (6.1 ) $ (8.2 ) $ (22.1 ) The fair value of foreign currency forward exchange contracts represents the estimated receipts or payments necessary to terminate the contracts. The interest rate swaps are valued based on the current forward rates of the future cash flows. The fair value of the cross-currency swap is determined using the current forward rates and changes in the spot rate. Fair Value Disclosures The Company’s financial instruments that are not recorded at fair value consist of cash and cash equivalents, accounts and notes receivable, accounts payable, borrowings under revolving credit agreements and other short-term and long-term debt. The carrying amount of these financial instruments is historical cost, which approximates fair value, except for the debt. The carrying value and the fair value of the Company’s debt, excluding capital leases, are as follows: (In millions) March 30, December 29, March 31, Carrying value $ 771.3 $ 570.1 $ 671.9 Fair value 782.2 566.8 681.4 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). |
Litigation and Contingencies (N
Litigation and Contingencies (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | LITIGATION AND CONTINGENCIES Litigation The Company operated a leather tannery in Rockford, Michigan from the early 1900s through 2009 (the “Tannery”). The Company also owns a parcel on House Street in Plainfield Township that the Company used for the disposal of Tannery byproducts until about 1970 (the "House Street" site). Beginning in the late 1950s, the Company used 3M Company’s Scotchgard™ in its processing of certain leathers at the Tannery. Until 2002 when 3M changed its Scotchgard™ formula, Tannery byproducts disposed of by the Company at the House Street site and other locations may have contained PFOA and/or PFOS, two chemicals in the family of compounds known as per- and polyfluoroalkyl substances (together, “PFAS”). PFOA and PFOS help provide non-stick, stain-resistant, and water-resistant qualities, and were used for many decades in commercial products like firefighting foams and metal plating, and in common consumer items like food wrappers, microwave popcorn bags, pizza boxes, Teflon™, carpets and Scotchgard™. The United States Centers for Disease Control and Prevention has concluded that studies of the health effects of PFOA and PFOS are “inconsistent and inconclusive,” but in May 2016, the Environmental Protection Agency (“EPA”) announced a lifetime health advisory level of 70 parts per trillion ("ppt") combined for PFOA and PFOS. Lifetime health advisories, while not enforceable, serve as guidance and are benchmarks for determining if concentrations of chemicals in tap water from public utilities are safe for public consumption. In January 2018, the Michigan Department of Environmental Quality (“MDEQ”) enacted a drinking water criterion of 70 ppt combined for PFOA and PFOS, which set an official state standard for acceptable concentrations of these contaminants in groundwater used for drinking water purposes. The Company has been served with two regulatory actions including a civil action filed by the MDEQ under the federal Resource Conservation and Recovery Act of 1976 (“RCRA”), Part 201 of the Michigan Natural Resources and Environmental Protection Act (“NREPA”) and Part 31 of NREPA, and a Unilateral Administrative Order issued by the EPA under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) Section 106. The Company has also been served with individual lawsuits and three putative class action lawsuits. Regulatory and Civil Actions of EPA and MDEQ On January 10, 2018, the MDEQ filed a civil action against the Company under the federal RCRA and Parts 201 and 31 of NREPA alleging that the Company’s past and present handling, storage, treatment, transportation and/or disposal of solid waste at the Company’s properties has contributed to the disposal of solid wastes that was done in a way that resulted in releases of PFAS at levels that resulted in detections exceeding applicable Michigan cleanup criteria for PFOA and PFOS (the "MDEQ Action"). Plainfield and Algoma Townships have intervened in the MDEQ Action alleging claims under RCRA, CERCLA, Part 201 of NREPA, and common law nuisance. The MDEQ Action seeks to require the Company to investigate the location and extent of PFAS in the environment, develop and implement plans for the continued sampling and analysis of impacts to drinking water wells from PFAS released or disposed of by the Company, and provide alternative drinking water supplies to homes impacted by PFAS for which the Company is allegedly responsible. The MDEQ Action further seeks to require the Company to connect users of drinking water wells to municipal drinking water supplies to address allegedly unacceptable risks posed by a release or threat of release of PFAS attributable to the Company. On December 19, 2018, the Company filed a third-party complaint against the 3M Company seeking, among other things, recovery of the Company’s remediation and other costs incurred in defense of the MDEQ Action. The Company is working with the MDEQ to analyze the Tannery property, House Street site and other relevant disposal sites, test nearby residential drinking water wells and coordinate communications to impacted homeowners. The Company’s current remediation efforts have included, among other items, providing alternate drinking water to impacted homes, including bottled water and water filtration systems, sampling residential wells, installing and sampling monitoring wells and collecting and analyzing soil and sediment samples. The Company continues to collect and analyze this data on a continuing basis with the MDEQ and EPA. On January 10, 2018, the EPA entered a Unilateral Administrative Order (the “Order”) under Section 106(a) of CERCLA, 42 U.S.C. § 9606(a). The effective date of the Order was February 1, 2018. The Order pertains to the Company's Tannery and House Street sites and directs the Company to conduct specified removal actions to abate actual or threatened releases of hazardous substances at or from the sites. On February 1, 2018, the Company filed its Notice of Intent to Comply with the EPA Order, which outlined the Company’s position on certain aspects of the proposed Order. In its response, the Company has agreed to comply with the terms of the Order, but has identified inaccuracies and shortcomings in the Order that challenge the legal basis for the Order. Pursuant to the Order, in May and June of 2018, the Company submitted to the EPA its final removal work plans for performing the removal actions at the Tannery and House Street sites. The Company has also provided the EPA with other submittals required by the Order, including a Sampling and Analysis Plan, Health and Safety Plan, Quality Assurance Project Plan, monthly progress reports and other technical reports. The Company discusses its reserve for remediation costs in the environmental liabilities section below. Individual and Class Action Litigation Individual lawsuits and three putative class action lawsuits have been filed against the Company that raise a variety of claims, including claims related to property, remediation, and human health effects. In addition, the current owner of a former landfill and gravel mining operation has sued the Company seeking damages and cost recovery for property damage allegedly caused by the Company’s disposal of tannery waste containing PFAS (collectively with the individual lawsuits and putative class actions, the “Litigation Matters”). Assessing potential liability with respect to the Litigation Matters at this time, however, is difficult. The Litigation Matters are in various stages of discovery and preliminary motions. In addition, there is minimal direct and relevant precedent for these types of claims related to PFAS, and the science regarding the human health effects of PFAS exposure in the environment remains inconclusive and inconsistent, thereby creating additional uncertainties. Due to these factors, combined with the complexities and uncertainties of litigation, the Company is unable to conclude that adverse verdicts resulting from the Litigation Matters are probable, and therefore no amounts are currently reserved for these claims. The Company intends to continue to vigorously defend itself against these claims. In addition, in December 2018 the Company filed a lawsuit against certain of its historic liability insurers, seeking their participation in Wolverine's defense and remediation efforts. Other Litigation The Company is also involved in 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 are not expected to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Environmental Liabilities The following is a summary of the activity with respect to an environmental remediation reserve established by the Company: Quarter Ended (In millions) March 30, March 31, Remediation liability at beginning of the year $ 22.6 $ 31.1 Changes in estimate — 0.9 Amounts paid (2.3 ) (2.8 ) Remediation liability at the end of the quarter $ 20.3 $ 29.2 The reserve balance as of March 30, 2019 comprises $ 9.2 million that is expected to be paid within the next twelve months and is recorded as a current obligation in other accrued liabilities, with the remaining $ 11.1 million expected to be paid over the course of up to 28 years, recorded in other liabilities. The Company establishes a reserve for estimated environmental remediation costs based upon the evaluation of currently-available facts with respect to each individual site. The liabilities are recognized on an undiscounted basis when they are probable and reasonably estimable, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. Liabilities for estimated costs of environmental remediation are based primarily upon third-party environmental studies, other internal analysis and the extent of the contamination and the nature of required remedial actions at each site. No estimated recoveries from legacy insurance policies or other responsible parties are included in the reserve. The Company's remediation activity at the Tannery property, House Street site and other relevant disposal sites is ongoing. It is difficult to estimate the cost of environmental compliance and remediation given the uncertainties regarding the interpretation and enforcement of applicable environmental laws and regulations, the extent of environmental contamination and the existence of alternative cleanup methods. Developments may occur that could materially change the Company’s current cost estimates, including, but not limited to: (i) changes in the information available regarding the environmental impact of the Company’s operations and products; (ii) changes in environmental regulations, changes in permissible levels of specific compounds in drinking water sources, or changes in enforcement theories and policies, including efforts to recover natural resource damages; (iii) new and evolving analytical and remediation techniques; (iv) changes to the form of remediation; (v) success in allocating liability to other potentially responsible parties; and (vi) the financial viability of other potentially responsible parties and third-party indemnitors. For locations at which remediation activity is largely ongoing, the Company cannot estimate a possible loss or range of loss in excess of the associated established reserves for the reasons described above. The Company adjusts recorded liabilities as further information develops or circumstances change. Minimum Royalties and Advertising Commitments Minimum future royalty and advertising obligations for the fiscal periods subsequent to March 30, 2019 under the terms of certain licenses held by the Company are as follows: (In millions) 2019 2020 2021 2022 2023 Thereafter Minimum royalties $ 1.0 $ 1.5 $ 1.7 $ 1.8 $ — $ — Minimum advertising 2.7 3.2 3.3 3.4 3.5 3.6 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 $ 0.5 million and $ 0.5 million for the quarters ended March 30, 2019 and March 31, 2018 , 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 $ 0.4 million and $ 0.8 million for the quarters ended March 30, 2019 and March 31, 2018 , respectively. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company’s portfolio of brands is organized into the following two operating segments, which the Company has determined to be reportable operating segments. During the first quarter of 2019, the brands that were formerly aligned with the Wolverine Outdoor & Lifestyle Group and Wolverine Heritage Group were realigned into a new operating segment, the Wolverine Michigan Group. The change was to align our brands under key leadership to best support innovation and efficiency. All prior-period disclosures have been restated to reflect these new reportable operating segments. • Wolverine Michigan Group , consisting of Merrell ® footwear and apparel, Cat ® footwear, Wolverine ® footwear and apparel, Chaco ® footwear, Hush Puppies ® footwear and apparel, Bates ® uniform footwear, Harley-Davidson ® footwear and HyTest ® safety footwear; and • Wolverine Boston Group , consisting of Sperry ® footwear and apparel, Saucony ® footwear and apparel, Keds ® footwear and apparel, and the Kids footwear business, which includes the Stride Rite ® licensed business, as well as kids' footwear offerings from Saucony ® , Sperry ® , Keds ® , Merrell ® , Hush Puppies ® and Cat ® . The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. 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, sourcing operations that include third-party commission revenues and multi-branded consumer-direct retail stores. The Corporate category consists of unallocated corporate expenses, such as environmental and other related 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 each reportable operating segment. Quarter Ended (In millions) March 30, March 31, Revenue: Wolverine Michigan Group $ 302.7 $ 295.9 Wolverine Boston Group 204.8 219.0 Other 15.9 19.2 Total $ 523.4 $ 534.1 Operating profit (loss): Wolverine Michigan Group $ 58.5 $ 65.3 Wolverine Boston Group 32.0 36.8 Other 0.8 0.9 Corporate (38.9 ) (41.5 ) Total $ 52.4 $ 61.5 (In millions) March 30, December 29, March 31, Total assets: Wolverine Michigan Group $ 775.0 $ 626.8 $ 591.0 Wolverine Boston Group 1,365.0 1,282.2 1,235.8 Other 48.5 50.0 42.5 Corporate 162.8 224.1 334.7 Total $ 2,351.3 $ 2,183.1 $ 2,204.0 Goodwill: Wolverine Michigan Group $ 144.3 $ 143.8 $ 146.1 Wolverine Boston Group 281.6 280.6 283.2 Total $ 425.9 $ 424.4 $ 429.3 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Mar. 30, 2019 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On April 30, 2019 , the Company acquired Sportlab S.R.L., which is a current distributor of Saucony® footwear in Italy . In addition to $ 11.7 million paid on April 30, 2019, the Company will make additional payments for trade receivables and an earnout provision. The earnout provision will be calculated on the extent by which a specified revenue target is missed or exceeded during fiscal 2019. Due to the close proximity of the closing date of the transaction to the Form 10-Q filing, the Company is unable to provide the initial accounting impacts of the acquisition at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | Nature of Operations Wolverine World Wide, Inc. (the “Company”) is a leading designer, marketer and licensor 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 ® , Sperry ® , Stride Rite ® and Wolverine ® . The Company’s products are marketed worldwide through owned operations and through licensing and distribution arrangements with third parties. The Company also operates retail stores and eCommerce sites to market 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 2018 Form 10-K. As described in Note 2, the Company adopted ASU 2016-02, Leases , at the beginning of the first quarter of fiscal 2019. Under the modified retrospective method, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As described in Note 16, the Company realigned certain brands into a new operating segment during the first quarter of fiscal 2019. All prior period disclosures have been restated to reflect the new reportable operating segments. |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52 or 53-week period that ends on the Saturday nearest to December 31. Fiscal years 2019 and 2018 both have 52 weeks. The Company reports its quarterly results of operations on the basis of 13-week quarters for each of the first three fiscal quarters and a 13 or 14-week period for the fiscal fourth quarter. References to particular years or quarters refer to the Company’s fiscal years ended on the Saturday nearest to December 31 or the fiscal quarters within those years. |
Seasonality | Seasonality The Company’s business is subject to seasonal influences that 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. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The Company calculates earnings per share in accordance with FASB 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. |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company’s leases consist primarily of corporate offices, retail stores, distribution centers, showrooms, vehicles and office equipment. The Company leases assets in the normal course of business to meet its current and future needs while providing flexibility to its operations. The Company enters into contracts with third parties to lease specifically identified assets. Most of the Company’s leases have contractually specified renewal periods. Most retail store leases have early termination clauses that the Company can elect if stipulated sales amounts are not achieved. The Company determines the lease term for each lease based on the terms of each contract and factors in renewal and early termination options if such options are reasonably certain to be exercised. |
Separation of Lease and Nonlease Components [Policy Text Block] | Under FASB ASC Topic 842, Leases , the Company has elected the practical expedient to account for lease components and nonlease components associated with individual leases as a single lease component for all of its leases. In addition, the Company has elected to account for multiple lease components as a single lease component. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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. Quarter Ended (In millions, except per share data) March 30, March 31, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 40.5 $ 46.7 Adjustment for earnings allocated to non-vested restricted common stock (0.8 ) (0.9 ) Net earnings used in calculating basic and diluted earnings per share 39.7 45.8 Denominator: Weighted average shares outstanding 91.0 95.7 Adjustment for non-vested restricted common stock (1.0 ) (2.0 ) Shares used in calculating basic earnings per share 90.0 93.7 Effect of dilutive stock options 1.8 1.9 Shares used in calculating diluted earnings per share 91.8 95.6 Net earnings per share: Basic $ 0.44 $ 0.49 Diluted $ 0.43 $ 0.48 |
Goodwill and Indefinite-Lived_2
Goodwill and Indefinite-Lived Intangibles (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: Quarter Ended (In millions) March 30, March 31, Goodwill balance at beginning of the year $ 424.4 $ 429.8 Foreign currency translation effects 1.5 (0.5 ) Goodwill balance at end of the quarter $ 425.9 $ 429.3 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following is a summary of the stated amount of accounts receivable that was sold as well as fees charged by the financial institution. Quarter Ended (In millions) March 30, March 31, Accounts receivable sold $ — $ 112.6 Fees charged — 0.5 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Quarter Ended March 30, 2019 Quarter Ended March 31, 2018 (In millions) Wholesale Consumer-Direct Total Wholesale Consumer-Direct Total Wolverine Michigan Group $ 272.3 $ 30.4 $ 302.7 $ 271.5 $ 24.4 $ 295.9 Wolverine Boston Group 175.5 29.3 204.8 194.2 24.8 219.0 Other 15.0 0.9 15.9 17.8 1.4 19.2 Total $ 462.8 $ 60.6 $ 523.4 $ 483.5 $ 50.6 $ 534.1 |
Contract with Customer, Asset and Liability [Table Text Block] | The Company’s contract balances are as follows: (In millions) March 30, December 29, March 31, Product returns reserve $ 10.9 $ 13.6 $ 13.3 Customer rebates liability 11.3 12.8 10.6 Customer markdowns reserve 4.8 4.0 6.3 Other sales incentives reserves 2.5 2.3 4.2 Customer advances liability 3.5 3.8 5.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Total debt consists of the following obligations: (In millions) March 30, December 29, March 31, Term Loan A, due December 6, 2023 $ 200.0 $ 200.0 $ 426.9 Senior Notes, 5.000% interest, due September 1, 2026 250.0 250.0 250.0 Borrowings under revolving credit agreements and other short-term notes 326.0 125.0 0.8 Capital lease obligation — 0.4 0.4 Unamortized debt issuance costs (4.7 ) (4.9 ) (5.8 ) Total debt $ 771.3 $ 570.5 $ 672.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future undiscounted cash flows for operating leases for the fiscal periods subsequent to March 30, 2019 are as follows: (In millions) Operating Leases Remainder of 2019 $ 21.6 2020 29.0 2021 26.5 2022 23.9 2023 17.7 Thereafter 111.6 Total future payments 230.3 Less: imputed interest 54.4 Recognized lease liability $ 175.9 |
Lease, Cost [Table Text Block] | The following is a summary of the Company’s lease cost. Quarter Ended (In millions) March 30, Operating lease cost $ 8.0 Variable lease cost 3.5 Short-term lease cost 0.2 Sublease income (1.0 ) Total lease cost $ 10.7 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The notional amounts of the Company’s derivative instruments are as follows: (Dollars in millions) March 30, December 29, March 31, Foreign exchange contracts: Hedge contracts $ 235.3 $ 220.3 $ 198.9 Non-hedge contracts — 4.8 5.5 Interest rate swaps 162.5 181.3 442.0 Cross currency swap 79.8 95.8 106.4 |
Schedule of Derivative Assets at Fair Value [Table Text Block] | The recorded fair values of the Company’s derivative instruments are as follows: (In millions) March 30, December 29, March 31, Financial assets: Foreign exchange contracts - hedge $ 7.0 $ 8.7 $ 0.9 Interest rate swaps 0.9 1.6 2.3 Financial liabilities: Foreign exchange contracts - hedge $ (1.0 ) $ — $ (3.1 ) Cross currency swap (5.1 ) (8.2 ) (19.0 ) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Net Pension and SERP Expense Recognized | The following is a summary of net pension and Supplemental Executive Retirement Plan (“SERP”) expense recognized by the Company. Quarter Ended (In millions) March 30, March 31, Service cost pertaining to benefits earned during the period $ 1.4 $ 1.6 Interest cost on projected benefit obligations 3.8 4.1 Expected return on pension assets (4.4 ) (5.0 ) Net amortization loss 0.6 0.8 Net pension expense $ 1.4 $ 1.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The change in accumulated other comprehensive income (loss) during the quarters ended March 30, 2019 and March 31, 2018 is as follows: (In millions) Foreign currency translation adjustments Derivatives Pension adjustments Total Balance of AOCI as of December 30, 2017 $ (32.7 ) $ (13.9 ) $ (28.6 ) $ (75.2 ) Other comprehensive income (loss) before reclassifications (1) (0.2 ) (3.2 ) — (3.4 ) Amounts reclassified from AOCI — 2.7 (2) 0.8 (3) 3.5 Income tax expense (benefit) — (0.8 ) (0.1 ) (0.9 ) Net reclassifications — 1.9 0.7 2.6 Net current-period other comprehensive income (loss) (1) (0.2 ) (1.3 ) 0.7 (0.8 ) Reclassifications to retained earnings (4) $ — $ (2.1 ) $ (6.0 ) $ (8.1 ) Balance of AOCI as of March 31, 2018 $ (32.9 ) $ (17.3 ) $ (33.9 ) $ (84.1 ) Balance of AOCI as of December 29, 2018 $ (53.0 ) $ 0.9 $ (36.2 ) $ (88.3 ) Other comprehensive income (loss) before reclassifications (1) 2.4 1.3 — 3.7 Amounts reclassified from AOCI — (1.8 ) (2) 0.6 (3) (1.2 ) Income tax expense (benefit) — 0.2 (0.1 ) 0.1 Net reclassifications — (1.6 ) 0.5 (1.1 ) Net current-period other comprehensive income (loss) (1) 2.4 (0.3 ) 0.5 2.6 Balance of AOCI as of March 30, 2019 $ (50.6 ) $ 0.6 $ (35.7 ) $ (85.7 ) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts related to foreign currency derivatives are included in cost of goods sold. Amounts related to interest rate swaps and the cross-currency swap are included in interest expense. (3) Amounts reclassified are included in the computation of net pension expense. (4) Amounts reclassified to retained earnings upon adoption of ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities and ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth financial assets and liabilities measured at fair value in the consolidated condensed 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 30, December 29, March 31, Financial assets: Derivatives $ 7.9 $ 10.3 $ 3.2 Financial liabilities: Derivatives $ (6.1 ) $ (8.2 ) $ (22.1 ) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amount of these financial instruments is historical cost, which approximates fair value, except for the debt. The carrying value and the fair value of the Company’s debt, excluding capital leases, are as follows: (In millions) March 30, December 29, March 31, Carrying value $ 771.3 $ 570.1 $ 671.9 Fair value 782.2 566.8 681.4 |
Litigation and Contingencies (T
Litigation and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Exit Costs by Cost [Table Text Block] | The following is a summary of the activity with respect to an environmental remediation reserve established by the Company: Quarter Ended (In millions) March 30, March 31, Remediation liability at beginning of the year $ 22.6 $ 31.1 Changes in estimate — 0.9 Amounts paid (2.3 ) (2.8 ) Remediation liability at the end of the quarter $ 20.3 $ 29.2 |
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 30, 2019 under the terms of certain licenses held by the Company are as follows: (In millions) 2019 2020 2021 2022 2023 Thereafter Minimum royalties $ 1.0 $ 1.5 $ 1.7 $ 1.8 $ — $ — Minimum advertising 2.7 3.2 3.3 3.4 3.5 3.6 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Operating Profit by Segment | Quarter Ended (In millions) March 30, March 31, Revenue: Wolverine Michigan Group $ 302.7 $ 295.9 Wolverine Boston Group 204.8 219.0 Other 15.9 19.2 Total $ 523.4 $ 534.1 Operating profit (loss): Wolverine Michigan Group $ 58.5 $ 65.3 Wolverine Boston Group 32.0 36.8 Other 0.8 0.9 Corporate (38.9 ) (41.5 ) Total $ 52.4 $ 61.5 |
Assets and Goodwill by Segment | (In millions) March 30, December 29, March 31, Total assets: Wolverine Michigan Group $ 775.0 $ 626.8 $ 591.0 Wolverine Boston Group 1,365.0 1,282.2 1,235.8 Other 48.5 50.0 42.5 Corporate 162.8 224.1 334.7 Total $ 2,351.3 $ 2,183.1 $ 2,204.0 Goodwill: Wolverine Michigan Group $ 144.3 $ 143.8 $ 146.1 Wolverine Boston Group 281.6 280.6 283.2 Total $ 425.9 $ 424.4 $ 429.3 |
New Accounting Standards Additi
New Accounting Standards Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets, net | $ 157.2 | $ 0 | $ 0 |
Operating Lease, Liability | $ 175.9 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets, net | 157.3 | ||
Operating Lease, Liability | $ 178.1 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 33,614 | 101,321 |
Numerator: | ||
Net earnings attributable to Wolverine World Wide, Inc. | $ 40.5 | $ 46.7 |
Adjustment for earnings allocated to non-vested restricted common stock | (0.8) | (0.9) |
Net earnings used in calculating basic and diluted earnings per share | $ 39.7 | $ 45.8 |
Denominator: | ||
Weighted average shares outstanding | 91,000,000 | 95,700,000 |
Adjustment for non-vested restricted common stock | (1,000,000) | (2,000,000) |
Shares used in calculating basic earnings per share | 90,000,000 | 93,700,000 |
Effect of dilutive stock options | 1,800,000 | 1,900,000 |
Shares used in calculating diluted earnings per share | 91,800,000 | 95,600,000 |
Net earnings per share: | ||
Basic | $ 0.44 | $ 0.49 |
Diluted | $ 0.43 | $ 0.48 |
Goodwill and Indefinite-Lived_3
Goodwill and Indefinite-Lived Intangibles (Changes in the Carrying Amount of Goodwill and Indefinite-Lived Intangibles) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 424.4 | $ 429.8 |
Foreign currency translation effects | 1.5 | (0.5) |
Goodwill, Ending balance | $ 425.9 | $ 429.3 |
Goodwill and Indefinite-Lived_4
Goodwill and Indefinite-Lived Intangibles Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 604.5 | $ 604.5 | $ 604.5 |
Sperry [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 518.2 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of accounts receivable, maximum amount under agreement | $ 150 | |
Sale of accounts receivable percent paid at sale | 90.00% | |
Accounts receivable sold | $ 0 | $ 112.6 |
Fee charged on sale of accounts receivable | 0 | $ 0.5 |
Accounts receivable, reduction due to sale | $ 71 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers Disaggrated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenue | $ 523.4 | $ 534.1 |
Wolverine Michigan Group [Member] | ||
Revenue | 302.7 | 295.9 |
Wolverine Boston Group [Member] | ||
Revenue | 204.8 | 219 |
Other [Member] | ||
Revenue | 15.9 | 19.2 |
Wholesale Channel [Member] | ||
Revenue | 462.8 | 483.5 |
Wholesale Channel [Member] | Wolverine Michigan Group [Member] | ||
Revenue | 272.3 | 271.5 |
Wholesale Channel [Member] | Wolverine Boston Group [Member] | ||
Revenue | 175.5 | 194.2 |
Wholesale Channel [Member] | Other [Member] | ||
Revenue | 15 | 17.8 |
Consumer-Direct Channel [Member] | ||
Revenue | 60.6 | 50.6 |
Consumer-Direct Channel [Member] | Wolverine Michigan Group [Member] | ||
Revenue | 30.4 | 24.4 |
Consumer-Direct Channel [Member] | Wolverine Boston Group [Member] | ||
Revenue | 29.3 | 24.8 |
Consumer-Direct Channel [Member] | Other [Member] | ||
Revenue | $ 0.9 | $ 1.4 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers Additional Information (Details) $ in Millions | Mar. 30, 2019USD ($) |
Revenue Recognition [Abstract] | |
Remaining Fixed Transaction Price | $ 39.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2024 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers Contract Balances (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Revenue from Contracts with Customer [Abstract] | |||
Customer Advances, Current | $ 3.5 | $ 3.8 | $ 5.4 |
Customer Markdowns Reserve | 4.8 | 4 | 6.3 |
Sales Incentives Reserve | 2.5 | 2.3 | 4.2 |
Customer Rebates Liability | 11.3 | 12.8 | 10.6 |
Product Returns Reserve | $ 10.9 | $ 13.6 | $ 13.3 |
Debt (Schedule of Borrowings) (
Debt (Schedule of Borrowings) (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreements and other short-term notes | $ 326 | $ 125 | $ 0.8 |
Capital Lease Obligations | 0 | 0.4 | 0.4 |
Unamortized debt issuance costs | (4.7) | (4.9) | (5.8) |
Total debt | 771.3 | 570.5 | 672.3 |
Term Loan A [Member] | December Sixth Two Thousand Twenty Two [Domain] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 200 | 200 | 426.9 |
Senior Notes [Member] | September First Two Thousand Twenty Six [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 250 | $ 250 | $ 250 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 10 | $ 41.2 | $ 7.5 |
Borrowings under revolving credit agreements and other short-term notes | 326 | 0.8 | 125 |
Amortization of deferred financing costs | 0.4 | 1 | |
Capital Lease Obligations | 0 | 0.4 | 0.4 |
Debt Issuance Costs, Noncurrent, Net | 4.7 | 5.8 | 4.9 |
Total debt | 771.3 | 672.3 | 570.5 |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 1,750 | ||
Alternative Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Alternative Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Euro Currency Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Euro Currency Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 800 | ||
Outstanding letters of credit | 2.3 | 2.5 | 2.5 |
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 | $ 4 | ||
Borrowings under revolving credit agreements and other short-term notes | 0.8 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.78% | ||
December Sixth Two Thousand Twenty Two [Domain] | Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 200 | 426.9 | 200 |
Aggregate principal amount debt instrument | $ 200 | ||
Weighted average interest rate | 3.31% | ||
September First Two Thousand Twenty Six [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 250 | $ 250 | $ 250 |
Aggregate principal amount debt instrument | $ 250 | ||
Interest rate | 5.00% |
Leases Operating Lease Costs (D
Leases Operating Lease Costs (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Expense | $ 8 |
Variable Lease, Cost | 3.5 |
Short-term Lease, Cost | 0.2 |
Sublease Income | (1) |
Lease, Cost | $ 10.7 |
Leases Future Lease Payments (D
Leases Future Lease Payments (Details) $ in Millions | Mar. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 21.6 |
2020 | 29 |
2021 | 26.5 |
2022 | 23.9 |
2023 | 17.7 |
Thereafter | 111.6 |
Lessee, Operating Lease, Liability, Payments, Due | 230.3 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (54.4) |
Operating Lease, Liability | $ 175.9 |
Leases Additional Information (
Leases Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.10% |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 8 months 12 days |
Operating Lease, Payments | $ 9.6 |
Lease assets obtained in exchange for lease liabilities | 5.1 |
Lessee Operating Lease Not Yet Commenced | 6.9 |
Finance Lease, Liability, Payments, Due | $ 0.4 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 9 months 18 days |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Derivative Notional Amounts) (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Foreign exchange contracts [Member] | Hedge [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 235.3 | $ 220.3 | $ 198.9 |
Foreign exchange contracts [Member] | Non-hedge [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 0 | 4.8 | 5.5 |
Interest rate swaps [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 162.5 | 181.3 | 442 |
Cross currency swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 79.8 | $ 95.8 | $ 106.4 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management Derivative Recorded Values (Details) - Hedge [Member] - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Derivatives, Fair Value [Line Items] | |||
Foreign exchange contracts, asset | $ 7 | $ 8.7 | $ 0.9 |
Interest rate swap, assets | 0.9 | 1.6 | 2.3 |
Foreign exchange contracts liabilities | (1) | 0 | (3.1) |
Cross currency swap, liabilities | $ (5.1) | $ (8.2) | $ (19) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Additional Information) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Foreign exchange contracts [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Maximum remaining maturity of foreign currency derivatives | 531 days | 545 days | 524 days |
Cross currency swap [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Derivative, Fixed Interest Rate | 2.75% | ||
Derivative, Forward Interest Rate | 5.00% | ||
July Thirteenth Two Thousand Twenty [Member] | Interest rate swaps [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Financial instrument expiration date | Jul. 13, 2020 | ||
September First Two Thousand Twenty One [Member] | Cross currency swap [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Financial instrument expiration date | Sep. 1, 2021 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 6.6 | $ 7.9 |
Related income tax benefits on share based compensation | $ 1.3 | $ 1.6 |
Restricted Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 482,893 | 502,775 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 34.81 | $ 31.87 |
Performance Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 329,089 | 335,315 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 37.65 | $ 31.85 |
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. 30, 2019 | Mar. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost pertaining to benefits earned during the period | $ 1.4 | $ 1.6 |
Interest cost on projected benefit obligations | 3.8 | 4.1 |
Expected return on pension assets | (4.4) | (5) |
Net amortization loss | 0.6 | 0.8 |
Net pension expense | 1.4 | 1.5 |
Pension contribution | $ 0 | $ 0.3 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Percent | 13.20% | 15.10% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance AOCI | $ (88.3) | $ (75.2) | |
Other comprehensive income (loss) before reclassifications | [1] | 3.7 | (3.4) |
Amounts reclassified from AOCI | (1.2) | 3.5 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0.1 | (0.9) | |
Net reclassifications | (1.1) | 2.6 | |
Other comprehensive income (loss) | [1] | 2.6 | (0.8) |
Ending balance AOCI | (85.7) | (84.1) | |
Effect Of New Accounting Principle In Period Of Adoption | (8.1) | ||
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance AOCI | (53) | (32.7) | |
Other comprehensive income (loss) before reclassifications | [1] | 2.4 | (0.2) |
Amounts reclassified from AOCI | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0 | 0 | |
Net reclassifications | 0 | 0 | |
Other comprehensive income (loss) | [1] | 2.4 | (0.2) |
Ending balance AOCI | (50.6) | (32.9) | |
Effect Of New Accounting Principle In Period Of Adoption | 0 | ||
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance AOCI | 0.9 | (13.9) | |
Other comprehensive income (loss) before reclassifications | [1] | 1.3 | (3.2) |
Amounts reclassified from AOCI | [2] | (1.8) | 2.7 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0.2 | (0.8) | |
Net reclassifications | (1.6) | 1.9 | |
Other comprehensive income (loss) | [1] | (0.3) | (1.3) |
Ending balance AOCI | 0.6 | (17.3) | |
Effect Of New Accounting Principle In Period Of Adoption | (2.1) | ||
Pension adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance AOCI | (36.2) | (28.6) | |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 |
Amounts reclassified from AOCI | [3] | 0.6 | 0.8 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | (0.1) | (0.1) | |
Net reclassifications | 0.5 | 0.7 | |
Other comprehensive income (loss) | [1] | 0.5 | 0.7 |
Ending balance AOCI | $ (35.7) | (33.9) | |
Effect Of New Accounting Principle In Period Of Adoption | $ (6) | ||
[1] | Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. | ||
[2] | Amounts related to foreign currency derivatives are included in cost of goods sold. Amounts related to interest rate swaps and the cross-currency swap are included in interest expense. | ||
[3] | Amounts reclassified are included in the computation of net pension expense. |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Fair Value Measurements (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 7.9 | $ 10.3 | $ 3.2 |
Derivative Liability | $ (6.1) | $ (8.2) | $ (22.1) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Disclosures (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 |
Fair Value Disclosures [Abstract] | |||
Debt, Carrying Value | $ 771.3 | $ 570.1 | $ 671.9 |
Debt, Fair Value | $ 782.2 | $ 566.8 | $ 681.4 |
Litigation and Contingencies En
Litigation and Contingencies Environmental Remediation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Remediation liability at beginning of the year | $ 22.6 | $ 31.1 |
Changes in estimate | 0 | 0.9 |
Amounts paid | (2.3) | (2.8) |
Remediation liability at the end of the quarter | 20.3 | $ 29.2 |
Environmental remediation accrual, current | 9.2 | |
Environmental remediation accrual, noncurrent | $ 11.1 |
Litigation and Contingencies Mi
Litigation and Contingencies Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company (Details) $ in Millions | Mar. 30, 2019USD ($) |
Royalties [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | $ 1 |
2020 | 1.5 |
2021 | 1.7 |
2022 | 1.8 |
2023 | 0 |
Thereafter | 0 |
Advertising [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | 2.7 |
2020 | 3.2 |
2021 | 3.3 |
2022 | 3.4 |
2023 | 3.5 |
Thereafter | $ 3.6 |
Litigation and Contingencies (A
Litigation and Contingencies (Additional Information) (Details) - Licensing agreements [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Long-term Purchase Commitment [Line Items] | ||
Royalty expense, licensing agreements | $ 0.5 | $ 0.5 |
Advertising expense, licensing agreements | $ 0.4 | $ 0.8 |
Business Segments (Revenue and
Business Segments (Revenue and Operating Profit by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 523.4 | $ 534.1 |
Operating profit (loss) | 52.4 | 61.5 |
Wolverine Michigan Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 302.7 | 295.9 |
Operating profit (loss) | 58.5 | 65.3 |
Wolverine Boston Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 204.8 | 219 |
Operating profit (loss) | 32 | 36.8 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15.9 | 19.2 |
Operating profit (loss) | 0.8 | 0.9 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss) | $ (38.9) | $ (41.5) |
Business Segments (Assets and G
Business Segments (Assets and Goodwill by Segment) (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 2,351.3 | $ 2,183.1 | $ 2,204 | |
Goodwill | 425.9 | 424.4 | 429.3 | $ 429.8 |
Wolverine Michigan Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 775 | 626.8 | 591 | |
Goodwill | 144.3 | 143.8 | 146.1 | |
Wolverine Boston Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,365 | 1,282.2 | 1,235.8 | |
Goodwill | 281.6 | 280.6 | 283.2 | |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 48.5 | 50 | 42.5 | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 162.8 | $ 224.1 | $ 334.7 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Subsequent Event [Line Items] | |
Subsequent Event, Date | Apr. 30, 2019 |
Subsequent Event, Description | the Company acquired Sportlab S.R.L., which is a current distributor of Saucony® footwear in Italy |
Subsequent Event, Amount Inestimable | Due to the close proximity of the closing date of the transaction to the Form 10-Q filing, the Company is unable to provide the initial accounting impacts of the acquisition at this time. |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred | $ 11.7 |