Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 24, 2023 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 01, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WOLVERINE WORLD WIDE INC /DE/ | |
Entity Central Index Key | 0000110471 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 79,432,708 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity File Number | 001-06024 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1185150 | |
Entity Address, Address Line One | 9341 Courtland Drive N.E. | |
Entity Address, City or Town | Rockford | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49351 | |
City Area Code | (616) | |
Local Phone Number | 866-5500 | |
Title of 12(b) Security | Common Stock, $1 Par Value | |
Trading Symbol | WWW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 599.4 | $ 614.8 |
Cost of goods sold | 363.1 | 353.5 |
Gross profit | 236.3 | 261.3 |
Selling, general and administrative expenses | 212 | 211.3 |
Gain on sale of business | (20.1) | 0 |
Environmental and other related costs, net of recoveries | (0.9) | 30.4 |
Operating profit | 45.3 | 19.6 |
Other expenses: | ||
Interest expense, net | 15.8 | 8.7 |
Other expense (income), net | 1.2 | (1.1) |
Total other expenses | 17 | 7.6 |
Earnings before income taxes | 28.3 | 12 |
Income tax expense | 10.3 | 3.6 |
Net earnings | 18 | 8.4 |
Less: net loss attributable to noncontrolling interests | (1) | (1.3) |
Net earnings attributable to Wolverine World Wide, Inc. | $ 19 | $ 9.7 |
Net Earnings Per Share: | ||
Basic | $ 0.23 | $ 0.12 |
Diluted | $ 0.23 | $ 0.12 |
Comprehensive income | $ 14.8 | $ 5.3 |
Less: comprehensive loss attributable to noncontrolling interests | (0.5) | (1.1) |
Comprehensive income attributable to Wolverine World Wide, Inc. | $ 15.3 | $ 6.4 |
Cash dividends declared per share | $ 0.10 | $ 0.10 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 116.2 | $ 131.5 | $ 149.6 |
Accounts receivable, less allowances: April 1, 2023: $13.3; December 31, 2022 $11.1; April 2, 2022: $25.4 | 251.2 | 241.7 | 370.6 |
Inventories: | |||
Finished products, net | 723.7 | 743.2 | 470.6 |
Raw materials and work-in-process, net | 2.2 | 2 | 12.7 |
Total inventories | 725.9 | 745.2 | 483.3 |
Prepaid expenses and other current assets | 87.2 | 79 | 74.4 |
Current assets held for sale | 22.1 | 67.9 | 0 |
Total current assets | 1,202.6 | 1,265.3 | 1,077.9 |
Noncurrent assets: | |||
Property plant and equipment net of accumulated depreciation: April 1, 2023: $242.7; December 31, 2022: $236.1; April 2, 2022: $222.0 | 140.5 | 136.2 | 128.4 |
Lease right-of-use assets, net | 172.2 | 174.7 | 137.7 |
Goodwill | 466.7 | 485 | 552.4 |
Indefinite-lived intangibles | 276.6 | 274 | 707.4 |
Amortizable intangibles, net | 60.1 | 67.4 | 72.6 |
Deferred Income Tax Assets, Net | 28.5 | 24.5 | 1.6 |
Other assets | 69.5 | 65.6 | 68 |
Total assets | 2,416.7 | 2,492.7 | 2,746 |
Current liabilities: | |||
Accounts payable | 226.9 | 272.2 | 293.8 |
Accrued salaries and wages | 23.9 | 32.3 | 18.9 |
Other accrued liabilities | 280.2 | 322.9 | 254.5 |
Lease liabilities | 39.3 | 39.1 | 35.2 |
Current maturities of long-term debt | 10 | 10 | 10 |
Borrowings under revolving credit agreements | 450 | 425 | 355 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 5.6 | 8.8 | 0 |
Total current liabilities | 1,035.9 | 1,110.3 | 967.4 |
Noncurrent liabilities: | |||
Long-term debt, less current maturities | 720.8 | 723 | 729.6 |
Accrued pension liabilities | 72.6 | 72.9 | 106.2 |
Deferred Income Tax Liabilities, Net | 34.2 | 35.3 | 110.8 |
Operating Lease, Liability, Noncurrent | 150.9 | 153.6 | 119.3 |
Other liabilities | 57.8 | 58.6 | 97.4 |
Stockholders’ equity: | |||
Common Stock - par value $1, authorized 320,000,000 shares; shares issued (including shares in treasury): April 1, 2023: 112,838,495 shares; December 31, 2022: 112,202,078 shares; April 2, 2022: 112,092,848 shares | 112.8 | 112.2 | 112.1 |
Additional paid-in capital | 323.8 | 325.4 | 302.3 |
Retained earnings | 917.9 | 907.2 | 1,129.6 |
Accumulated other comprehensive loss | (136.6) | (132.9) | (102.2) |
Cost of shares in treasury: April 1, 2023: 33,411,379 shares; December 31, 2022: 33,413,204 shares; April 2, 2022: 31,035,541 shares | (891.3) | (891.3) | (845.1) |
Total Wolverine World Wide, Inc. stockholders’ equity | 326.6 | 320.6 | 596.7 |
Noncontrolling interest | 17.9 | 18.4 | 18.6 |
Total stockholders’ equity | 344.5 | 339 | 615.3 |
Total liabilities and stockholders’ equity | $ 2,416.7 | $ 2,492.7 | $ 2,746 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Statement of Financial Position [Abstract] | |||
Accounts receivable allowance | $ 13.3 | $ 11.1 | $ 25.4 |
Accumulated depreciation | $ (242.7) | $ (236.1) | $ (222) |
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) | 112,838,495 | 112,202,078 | 112,092,848 |
Treasury shares | 33,411,379 | 33,413,204 | 31,035,541 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 18 | $ 8.4 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 8.5 | 8.5 |
Deferred income taxes | (3.8) | (6.8) |
Stock-based compensation expense | 4.5 | 10.3 |
Pension and SERP expense | 0.4 | 2.3 |
Environmental and other related costs, net of cash payments | (1.3) | 14.1 |
Gain on sale of business | (20.1) | 0 |
Other | (1.4) | 2.2 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10.9) | (52.2) |
Inventories | 20.1 | (122.8) |
Other operating assets | (10.1) | (8.1) |
Accounts payable | (49.4) | 74.4 |
Income taxes payable | 13 | 8.2 |
Other operating liabilities | (65.3) | (31) |
Net cash used in operating activities | (97.8) | (92.5) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (7.3) | (7.5) |
Proceeds from sale of business | 81.9 | 0 |
Other | (0.1) | 3.7 |
Net cash provided by (used in) investing activities | 74.5 | (3.8) |
FINANCING ACTIVITIES | ||
Repayments of Lines of Credit | (225) | (37) |
Proceeds from Lines of Credit | 250 | 167 |
Payments on long-term debt | (2.5) | (2.5) |
Cash dividends paid | (8.4) | (8.4) |
Purchases of common stock for treasury | 0 | (33.8) |
Payment, Tax Withholding, Share-based Payment Arrangement | (5.5) | (7.1) |
Proceeds from the exercise of stock options | 0.1 | 0.8 |
Contributions from noncontrolling interests | 0 | 7 |
Net cash provided by financing activities | 8.7 | 86 |
Effect of foreign exchange rate changes | (0.3) | (1.8) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (14.9) | (12.1) |
Cash and cash equivalents at beginning of the year | 135.5 | 161.7 |
Cash and cash equivalents at end of the quarter | $ 120.6 | $ 149.6 |
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 Jan. 01, 2022 | $ 644.4 | $ 111.6 | $ 298.9 | $ 1,128.2 | $ (98.9) | $ (810.2) | $ 14.8 |
Net earnings attributable to Wolverine World Wide, Inc. | 9.7 | 9.7 | |||||
Less: net loss attributable to noncontrolling interests | (1.3) | (1.3) | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 8.4 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3.3 | (3.3) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0.2 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (3.1) | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (7.2) | 0.4 | (7.6) | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0.8 | 0.1 | 0.7 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 10.3 | 10.3 | |||||
Dividends, Common Stock, Cash | (8.3) | (8.3) | |||||
Purchase of Common Stock for Treasury | 34.9 | 34.9 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 7 | 7 | |||||
Stockholders' Equity, Other | (2.1) | (2.1) | |||||
Ending Balance at Apr. 02, 2022 | 615.3 | 112.1 | 302.3 | 1,129.6 | (102.2) | (845.1) | 18.6 |
Beginning Balance at Dec. 31, 2022 | 339 | 112.2 | 325.4 | 907.2 | (132.9) | (891.3) | 18.4 |
Net earnings attributable to Wolverine World Wide, Inc. | 19 | 19 | |||||
Less: net loss attributable to noncontrolling interests | (1) | (1) | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 18 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3.7 | (3.7) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0.5 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (3.2) | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (5.6) | 0.6 | (6.2) | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0.1 | 0 | 0.1 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4.5 | 4.5 | |||||
Dividends, Common Stock, Cash | (8.3) | (8.3) | |||||
Ending Balance at Apr. 01, 2023 | $ 344.5 | $ 112.8 | $ 323.8 | $ 917.9 | $ (136.6) | $ (891.3) | $ 17.9 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - Parenthetical - $ / shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 633,012 | 420,226 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,405 | 40,528 |
Cash dividends declared per share | $ 0.10 | $ 0.10 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 1,825 | 1,285 |
Treasury Stock, Shares, Acquired | 0 | (1,432,813) |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | BASIS OF PRESENTATION 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; kids’ 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 ® , Merrell ® , Saucony ® , Sperry ® , Stride Rite ® , Sweaty Betty ® and Wolverine ® . The Company’s products are marketed worldwide through owned operations, through licensing and distribution arrangements with third parties, and joint ventures. 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™ . Effective February 4, 2023, the Company completed the sale of the Keds ® business. See Note 18 for further discussion. 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 notes 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 notes included in the Company’s 2022 Form 10-K. 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 2023 and 2022 each 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 experiences moderate fluctuations in sales volume during the year, as reflected in quarterly revenue. The Company expects current seasonal sales patterns to continue in future years. The Company also experiences some fluctuation in its levels of working capital, typically reflecting an increase in net working capital requirements near the end of the first and third fiscal quarters as inventory builds to support peak shipping periods. Historically, cash provided by operating activities is higher in the second half of the fiscal year due to collection of wholesale channel receivables and direct-to-consumer sales being higher during the holiday season. The Company meets its working capital requirements through internal operating cash flows and, as needed, borrowings under its revolving credit facility, as discussed in more detail under the caption "Liquidity and Capital Resources" in Item 2: "Management's Discussion and Analysis of Financial Condition and Results of Operations". The Company's working capital could also be impacted by other events, including pandemics. |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | NEW ACCOUNTING STANDARDS The Financial Accounting Standards Board (“FASB”) has issued the following Accounting Standards Update (“ASU”) that the Company has not yet adopted. The following is a summary of the new standard. Standard Description Effect on the Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting (as amended by ASU 2021-01 and ASU 2022-06). Provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for the Company’s borrowing instruments under the amended senior credit facility, which use LIBOR as a reference rate, and is available for adoption effective immediately. In December 2022, in ASU 2022-06, the FASB deferred the expiration date and extended the relief in Topic 848 beyond the cessation date of LIBOR. The new accounting rules must be adopted by December 31, 2024. The Company is evaluating the impact of the new standard on its Consolidated Financial Statements. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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) April 1, April 2, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 19.0 $ 9.7 Adjustment for earnings allocated to non-vested restricted common stock (0.4) (0.2) Net earnings used in calculating basic and diluted earnings per share $ 18.6 $ 9.5 Denominator: Weighted average shares outstanding 79.2 81.5 Effect of dilutive stock options — 0.4 Shares used in calculating diluted earnings per share 79.2 81.9 Net earnings per share: Basic $ 0.23 $ 0.12 Diluted $ 0.23 $ 0.12 For the quarters ended April 1, 2023 and April 2, 2022, 2,170,599 and 984,771 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 (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, April 2, Goodwill balance at beginning of the year $ 485.0 $ 556.6 Sale of business (see Note 18) (20.4) — Foreign currency translation effects 2.1 (4.2) Goodwill balance at end of the quarter $ 466.7 $ 552.4 The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $276.6 million, $274.0 million, and $707.4 million as of April 1, 2023, December 31, 2022, and April 2, 2022, respectively. In the fourth quarter of 2022, the Company recognized impairment charges of $191.0 million and $189.3 million to the Sperry ® and Sweaty Betty ® trade names, respectively, and recognized a $48.4 million goodwill impairment charge to the Sweaty Betty ® reporting unit. The Company conducted an interim impairment assessment as of April 1, 2023 and determined that there were no triggering events indicating impairment of the Company’s goodwill and indefinite-lived intangible assets. The risk of future non-cash impairment for the Sperry ® and Sweaty Betty ® trade names and Sweaty Betty ® goodwill is dependent on whether actual results differ from the key assumptions used in the determination of each trade name's fair value and the Sweaty Betty ® reporting unit’s fair value, such as revenue growth, earnings before interest, taxes depreciation and amortization margin, discount rate, and assumed tax rate, or if macroeconomic conditions deteriorate and adversely affect the values of the Company's Sperry ® and Sweaty Betty ® trade names and Sweaty Betty ® reporting unit. A future impairment charge of the Sperry ® trade name or Sweaty Betty ® trade name and Sweaty Betty ® reporting unit goodwill could have an adverse material effect on the Company's consolidated financial results. The carrying values of the Company’s Sperry ® and Sweaty Betty ® trade names indefinite-lived assets were $105.3 million an d $96.6 million, respectively, as of April 1, 2023. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Accounts Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ACCOUNTS RECEIVABLEThe Company and certain of its subsidiaries sell, on a continuous basis without recourse, their trade receivables to Rockford ARS, LLC (“Rockford ARS”), a wholly-owned bankruptcy-remote subsidiary of the Company. On December 7, 2022, Rockford ARS entered into a receivables purchase agreement (“RPA”) to sell up to $175.0 million of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” in the RPA) equal to the gross receivables transferred. The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables. Rockford ARS has guaranteed to each Purchaser the prompt payment of sold receivables, and has granted a security interest in its assets for the benefit of the Purchasers. Under the RPA, which matures on December 5, 2025 each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin. The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables. The proceeds of the RPA are classified as operating activities in the Company's consolidated condensed statements of cash flows. Cash received from collections of sold receivables may be used to fund additional purchases of receivables on a revolving basis or to return all or any portion of outstanding capital of the Purchasers. Subsequent collections of the pledged receivables, which have not been sold, will be classified as operating cash flows at the time of collection. Total receivables sold under the RPA were $183.2 million and total cash collections under the RPA were $176.0 million in the quarter ended April 1, 2023. The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. As of the fiscal quarter ended April 1, 2023, the amount sold to the Purchasers under the RPA was $149.9 million, which was derecognized from the consolidated condensed balance sheets. As collateral against sold receivables, Rockford ARS maintains a certain level of unsold receivables, which was $76.6 million as of the fiscal quarter ended April 1, 2023. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 reports disaggregated revenue by sales channel, including the wholesale and direct-to-consumer sales channels, reconciled to the Company’s reportable 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. The direct-to-consumer sales channel includes sales from the Company’s owned retail stores and from the Company’s owned eCommerce sites. Quarter Ended April 1, 2023 Quarter Ended April 2, 2022 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 291.0 $ 94.9 $ 385.9 $ 249.0 $ 97.1 $ 346.1 Work Group 103.3 11.2 114.5 125.3 13.2 138.5 Lifestyle Group 66.1 19.2 85.3 78.1 30.0 108.1 Other 12.5 1.2 13.7 21.0 1.1 22.1 Total Revenue $ 472.9 $ 126.5 $ 599.4 $ 473.4 $ 141.4 $ 614.8 The Company has agreements to license symbolic intellectual property with minimum guarantees or fixed consideration. The Company was due $7.7 million of remaining fixed transaction price under its license agreements as of April 1, 2023, which it expects to recognize per the terms of its contracts over the course of time through December 2026. 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. 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 fiscal periods presented related to the Company’s contract liabilities was nominal. The Company’s contract balances are as follows: (In millions) April 1, December 31, April 2, Product returns reserve $ 11.7 $ 15.3 $ 13.2 Customer markdowns reserve 5.0 2.6 2.9 Other sales incentives reserve 3.0 3.3 3.4 Customer rebates liability 14.3 19.8 16.7 Customer advances liability 13.2 9.1 7.9 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 affects net revenue and earnings in the period such variances become known. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consists of the following obligations: (In millions) April 1, December 31, April 2, Term Facility, due October 21, 2026 $ 187.5 $ 190.0 $ 197.5 Senior Notes, 4.000% interest, due August 15, 2029 550.0 550.0 550.0 Borrowings under revolving credit agreements 450.0 425.0 355.0 Unamortized deferred financing costs (6.7) (7.0) (7.9) Total debt $ 1,180.8 $ 1,158.0 $ 1,094.6 The Company’s credit agreement provides for a term loan A facility (the “Term Facility”) and for a revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Senior Credit Facilities”). The maturity date of the loans under the Senior Credit Facilities is October 21, 2026. The credit agreement provides for a debt capacity of up to an aggregate debt amount (including outstanding term loan principal and revolver commitment amounts in addition to permitted incremental debt) not to exceed $2.0 billion unless certain specified conditions set forth in the Credit Agreement are met. The Term Facility requires quarterly principal payments with a balloon payment due on October 21, 2026. The scheduled principal payments due under the Term Facility over the next 12 months total $10.0 million as of April 1, 2023 and are recorded as current maturities of long-term debt on the consolidated condensed balance sheets. The Revolving Facility allows the Company to borrow up to an aggregate amount of $1.0 billion. The Revolving Facility also includes a $100.0 million swingline subfacility and a $50.0 million letter of credit subfacility. The Company had outstanding letters of credit under the Revolving Facility of $6.5 million, $5.7 million and $6.0 million as of April 1, 2023, December 31, 2022 and April 2, 2022, respectively. These outstanding letters of credit reduce the borrowing capacity under the Revolving Facility. The interest rates applicable to amounts outstanding under Term Facility and to U.S. dollar denominated amounts outstanding under the Revolving Facility are, 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 1.000%, 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 2.000% (all capitalized terms used in this sentence are as defined in the Credit Agreement). At April 1, 2023, the Term Facility and the Revolving Facility had a weighted-average interest rate of 5.28%. 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 Senior Credit Facilities also contain 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 Senior Credit Facilities require compliance with the following financial covenants: a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (all capitalized terms used in this paragraph are as defined in the Senior Credit Facilities). As of April 1, 2023, the Company was in compliance with all covenants and performance ratios under the Senior Credit Facilities. The Company’s $550.0 million 4.000% senior notes issued on August 26, 2021 are due on August 15, 2029. Related interest payments are 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 $2.0 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 April 1, 2023, December 31, 2022 and April 2, 2022. The Company included in interest expense the amortization of deferred financing costs of $0.5 million for the quarters ended April 1, 2023 and April 2, 2022. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The following is a summary of the Company’s lease cost. Quarter Ended (In millions) April 1, April 2, Operating lease cost $ 10.5 $ 9.0 Variable lease cost 3.3 3.6 Short-term lease cost 0.7 1.0 Sublease income (1.5) (2.1) Total lease cost $ 13.0 $ 11.5 The following is a summary of the Company’s supplemental cash flow information related to leases. Quarter Ended (In millions) April 1, April 2, Cash paid for operating lease liabilities $ 11.4 $ 11.2 Operating lease assets obtained in exchange for lease liabilities 4.0 8.4 The Company entered into real estate leases which will commence subsequent to April 1, 2023 with future undiscounted rental payments of $0.8 million. |
Financial Instruments and Risk
Financial Instruments and Risk Management (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments and Risk Management | DERIVATIVE FINANCIAL INSTRUMENTS 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 524 days, 524 days, and 538 days as of April 1, 2023, December 31, 2022 and April 2, 2022, 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 accumulated other comprehensive income (loss) 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 May 30, 2025. This agreement, which exchanges floating rate interest payments 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 underlying 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, net. In accordance with FASB Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging , the Company has formally documented the relationship between the interest rate swap and the variable rate borrowing, as well as its risk management objective and strategy for undertaking the hedge transactions. This process included linking the derivative to the specific liability or asset on the balance sheet. The Company also assessed at the inception of the hedge, 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 notional amounts of the Company’s derivative instruments are as follows: (Dollars in millions) April 1, December 31, April 2, Foreign exchange hedge contracts $ 285.2 $ 334.2 $ 331.7 Interest rate swap 162.9 176.2 311.3 The recorded fair values of the Company’s derivative instruments are as follows: (In millions) April 1, December 31, April 2, Financial assets: Foreign exchange hedge contracts $ 4.4 $ 7.5 $ 9.1 Interest rate swap 4.5 6.1 5.0 Financial liabilities: Foreign exchange hedge contracts $ (2.5) $ (1.3) $ (1.0) |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company recognized compensation expense of $4.5 million and $10.3 million, and related income tax benefits of $0.8 million and $2.0 million, for grants under its stock-based compensation plans for the quarters ended April 1, 2023 and April 2, 2022, 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. The Company granted restricted awards and performance awards as follows: Quarter Ended April 1, 2023 Quarter Ended April 2, 2022 (In millions) Company Shares Issued Weighted-Average Grant Date Fair Value Company Shares Issued Weighted-Average Grant Date Fair Value Restricted Awards 1,102,621 $ 15.08 811,712 $ 27.02 Performance Awards 650,723 $ 15.07 382,291 $ 30.06 |
Retirement Plans (Notes)
Retirement Plans (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, April 2, Service cost pertaining to benefits earned during the period $ 0.8 $ 1.3 Interest cost on projected benefit obligations 4.4 3.3 Expected return on pension assets (4.6) (5.1) Net amortization loss (0.2) 2.8 Net pension expense $ 0.4 $ 2.3 The non-service cost components of net pension expense is recorded in the Other expense (income), net line item on the consolidated condensed statements of operations and comprehensive income. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 and April 2, 2022 were 36.3% and 30.4%, respectively. In the current year, the Company recognized larger discrete tax expenses, which increased the effective tax rate. The increase in the effective tax rate was partially offset by an increase in pretax income, which reduced the impact of the discrete adjustments. The Company is subject to periodic audits by U.S. federal, state, local and non-U.S. tax authorities. Currently, the Company is undergoing routine periodic audits in both U.S. federal, state, local and non-U.S. 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 2017 in the majority of tax jurisdictions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) 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 April 1, 2023 and April 2, 2022 is as follows: (In millions) Foreign Derivatives Pension Total Balance at January 1, 2022 $ (56.8) $ (8.9) $ (33.2) $ (98.9) Other comprehensive income (loss) before reclassifications (1) (13.7) 8.5 — (5.2) Amounts reclassified from accumulated other comprehensive income (loss) — (0.4) (2) 2.8 (3) 2.4 Income tax expense (benefit) — 0.1 (0.6) (0.5) Net reclassifications — (0.3) 2.2 1.9 Net current-period other comprehensive income (loss) (1) (13.7) 8.2 2.2 (3.3) Balance at April 2, 2022 $ (70.5) $ (0.7) $ (31.0) $ (102.2) Balance at December 31, 2022 $ (133.1) $ 1.9 $ (1.7) $ (132.9) Other comprehensive income (loss) before reclassifications (1) (1.4) (0.9) — (2.3) Amounts reclassified from accumulated other comprehensive income (loss) 4.2 (7.3) (2) (0.2) (3) (3.3) Income tax expense (benefit) — 1.8 0.1 1.9 Net reclassifications 4.2 (5.5) (0.1) (1.4) Net current-period other comprehensive income (loss) (1) 2.8 (6.4) (0.1) (3.7) Balance at April 1, 2023 $ (130.3) $ (4.5) $ (1.8) $ (136.6) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts related to foreign currency derivatives deemed to be highly effective are included in cost of goods sold. Amounts related to foreign currency derivatives that are no longer deemed to be highly effective are included in other income. Amounts related to the interest rate swap are included in interest expense. (3) Amounts reclassified are included in the computation of net pension expense. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis. For additional information regarding the Company’s fair value policies, refer to Note 1 in the Company’s 2022 Form 10-K. 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) April 1, December 31, April 2, Financial assets: Derivatives $ 8.9 $ 13.6 $ 14.1 Financial liabilities: Derivatives $ (2.5) $ (1.3) $ (1.0) The fair value of foreign currency forward exchange contracts represents the estimated receipts or payments necessary to terminate the contracts. The interest rate swap was valued based on the current forward rates of the future cash flows. 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 are as follows: (In millions) April 1, December 31, April 2, Carrying value $ 1,180.8 $ 1,158.0 $ 1,094.6 Fair value 1,099.4 1,042.9 1,033.0 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 |
Apr. 01, 2023 | |
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 Company 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™. 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, which the EPA reduced in June 2022 to 0.004 ppt and 0.02 ppt for PFOA and PFOS, respectively. In January 2018, the Michigan Department of Environmental Quality (“MDEQ”, now known as the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”)) 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. On August 3, 2020, Michigan changed the standards for PFOA and PFOS in drinking water to 8 and 16 ppt, respectively, and set standards for four other PFAS substances. Civil and Regulatory Actions of EGLE and EPA On January 10, 2018, EGLE filed a civil action against the Company in the U.S. District Court for the Western District of Michigan under the federal Resource Conservation and Recovery Act of 1976 (“RCRA”) and Parts 201 and 31 of the Michigan Natural Resources and Environmental Protection Act (“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 resulted in releases of PFAS at levels exceeding applicable Michigan cleanup criteria for PFOA and PFOS (the "EGLE Action"). Plainfield and Algoma Townships intervened in the EGLE Action alleging claims under RCRA, NREPA, the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and common law nuisance. On February 3, 2020, the parties entered into a consent decree resolving the EGLE Action, which was approved by U.S. District Judge Janet T. Neff on February 19, 2020 (the “Consent Decree”). Under the Consent Decree, the Company agreed to pay for an extension of Plainfield Township’s municipal water system to more than 1,000 properties in Plainfield and Algoma Townships, subject to an aggregate cap of $69.5 million. The Company also agreed to continue maintaining water filters for certain homeowners, resample certain residential wells for PFAS, continue remediation at the Company’s Tannery property and House Street site, and conduct further investigations and monitoring to assess the presence of PFAS in area groundwater. The Company’s activities under the Consent Decree are not materially impacted by either the drinking water standards that became effective on August 3, 2020, or the EPA’s revised advisory levels issued in June 2022. On December 19, 2018, the Company filed a third-party complaint against 3M Company seeking, among other things, recovery of the Company’s remediation and other costs incurred in defense of the EGLE Action ("the 3M Action"). On June 20, 2019, the 3M Company filed a counterclaim against the Company in response to the 3M Action, seeking, among other things, contractual and common law indemnity and contribution under CERCLA and Part 201 of NREPA. On February 20, 2020, the Company and 3M Company entered into a settlement agreement resolving the 3M Action, under which 3M Company paid the Company a lump sum amount of $55.0 million during the first quarter of 2020. 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) with an effective date of February 1, 2018. The Order pertained to specified removal actions at the Company's Tannery and House Street sites, including certain time critical removal actions subsequently identified in an April 29, 2019 letter from the EPA, to abate the actual or threatened release of hazardous substances at or from the sites. On October 28, 2019, the EPA and the Company entered into an Administrative Settlement and Order on Consent (“AOC”) that supersedes the Order and addresses the agreed-upon removal actions outlined in the Order. The Company has completed the activities required by the AOC, and is awaiting the final review and determination from the EPA. The Company discusses its reserve for remediation costs in the environmental liabilities section below. Individual and Class Action Litigation Beginning in late 2017, individual lawsuits and three putative class action lawsuits were filed against the Company that raise a variety of claims, including claims related to property, remediation, and human health effects. The three putative class action lawsuits were subsequently refiled in the U.S. District Court for the Western District of Michigan as a single consolidated putative class action lawsuit. 3M Company has been named as a co-defendant in the individual lawsuits and consolidated putative class action lawsuit. In addition, the current owner of a former landfill and gravel mining operation sued the Company seeking damages and cost recovery for property damage allegedly caused by the Company’s disposal of tannery waste containing PFAS (this suit collectively with the individual lawsuits and putative class action, the “Litigation Matters”). On January 11, 2022, the Company and 3M Company entered into a master settlement agreement with the law firm representing certain of the plaintiffs in the individual lawsuits included in the Litigation Matters, and each of these plaintiffs subsequently agreed to participate in the settlement. These plaintiffs’ lawsuits were dismissed with prejudice on or around April 25, 2022. On December 9, 2021, the Company and 3M Company reached a settlement in principle to resolve certain of the remaining individual lawsuits included in the Litigation Matters, and the parties entered into definitive settlement agreements in March 2022. These plaintiffs’ lawsuits were dismissed with prejudice on June 14, 2022. The last remaining individual action was dismissed without prejudice on June 24, 2022. In addition, in September 2022, the parties to the putative class action filed a motion for preliminary approval of a proposed class action settlement seeking to resolve the putative class action plaintiffs’ claims. On March 29, 2023, the court presiding over the putative class action granted final approval of the proposed settlement and dismissed the lawsuit with prejudice. The last remaining Litigation Matter, the lawsuit filed by the current owner of a former landfill and gravel mining operations, is currently pending in Michigan state court. There were no developments during the first quarter of 2023 that required the Company to change the amount accrued for certain of the Litigation Matters described above and the Company did not make any payments in connection with the Litigation Matters described above during the first quarter of 2023. As of April 1, 2023, the Company had recorded liabilities of $40.5 million for certain of the Litigation Matters described above which are recorded as other accrued liabilities in the consolidated condensed balance sheets. In December 2018, the Company filed a lawsuit against certain of its historic liability insurers, seeking to compel them to provide a defense against the Litigation Matters on the Company's behalf and coverage for remediation efforts undertaken by, and indemnity provided by, the Company. The Company recognized certain recoveries from legacy insurance policies in 2023 and 2022 and continues pursuing additional recoveries through the lawsuit. 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, intellectual property, and consumer related matters. 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 to the Company and reserves for liabilities that the Company has 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 the environmental remediation reserve established by the Company: Quarter Ended (In millions) April 1, April 2, Remediation liability at beginning of the year $ 74.1 $ 85.7 Amounts paid (0.8) (10.5) Remediation liability at the end of the quarter $ 73.3 $ 75.2 The reserve balance as of April 1, 2023 includes $49.7 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 $23.6 million expected to be paid over the course of up to 25 years, recorded in other liabilities. The Company's remediation activity at the Tannery property, House Street site and other relevant operations or disposal sites is ongoing. Although the Consent Decree has made near-term costs more clear, it is difficult to estimate the long-term 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. Future 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 The Company has future minimum royalty and advertising obligations due under the terms of certain licenses held by the Company. These minimum future obligations for the fiscal periods subsequent to April 1, 2023 are as follows: (In millions) 2023 2024 2025 2026 2027 Thereafter Minimum royalties $ 0.6 $ — $ — $ — $ — $ — Minimum advertising 1.7 3.9 4.1 4.2 4.3 4.5 |
Business Segments (Notes)
Business Segments (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company’s portfolio of brands are organized into the following three reportable segments. During the fourth quarter of 2022, the Company announced changes to its reportable segments as a result of changes in how its Chief Operating Decision Maker, the Company's Chief Executive Officer, allocates resources to and assess performance of the Company's operating segments. All prior period disclosures have been retrospectively adjusted to reflect the new reportable segments. • Active Group, consisting of Merrell ® footwear and apparel, Saucony ® footwear and apparel, Sweaty Betty ® activewear, and Chaco ® footwear; • Work Group, consisting of Wolverine ® footwear and apparel, Cat ® footwear, Bates ® uniform footwear, Harley-Davidson ® footwear and HYTEST ® safety footwear; and • Lifestyle Group , consisting of Sperry ® footwear and Hush Puppies ® footwear and apparel as well as Keds ® footwear prior to the divestiture of the brand, effective February 4, 2023. The Company's operating segments are the Work Group, Lifestyle Group, Active Group, and Sweaty Betty ® . Sweaty Betty ® and the Active Group were evaluated and combined into one reportable segment because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. Kids' footwear offerings from Saucony ® , Sperry ® , Merrell ® , Hush Puppies ® and Cat ® as well as Keds ® prior to divestiture of the brand effective February 4, 2023 are included with the applicable brand. 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, multi-branded direct-to-consumer retail stores and the Stride Rite ® licensed business. The Corporate category consists of unallocated corporate expenses, such as corporate employee costs, reorganization activities, and environmental and other related costs. The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. Revenue for the reportable 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 direct-to-consumer businesses. The Company’s reportable segments are determined based on how the Company internally reports and evaluates financial information used to make operating decisions. Company management uses various financial measures to evaluate the performance of the reportable segments. The following is a summary of certain key financial measures for the respective fiscal periods indicated. Quarter Ended (In millions) April 1, April 2, Revenue: Active Group $ 385.9 $ 346.1 Work Group 114.5 138.5 Lifestyle Group 85.3 108.1 Other 13.7 22.1 Total $ 599.4 $ 614.8 Segment operating profit (loss): Active Group $ 52.1 $ 53.2 Work Group 15.5 25.5 Lifestyle Group 2.8 13.1 Other 3.4 2.5 Corporate (28.5) (74.7) Operating profit 45.3 19.6 Interest expense, net 15.8 8.7 Other expense (income), net 1.2 (1.1) Earnings before income taxes $ 28.3 $ 12.0 (In millions) April 1, December 31, April 2, Total assets: Active Group $ 1,345.2 $ 1,331.5 $ 1,465.4 Work Group 363.5 375.7 324.8 Lifestyle Group 441.9 514.8 681.5 Other 63.8 58.6 68.3 Corporate 202.3 212.1 206.0 Total $ 2,416.7 $ 2,492.7 $ 2,746.0 Goodwill: Active Group $ 316.0 $ 314.4 $ 376.2 Work Group 60.0 59.6 60.9 Lifestyle Group 77.2 97.4 101.6 Other 13.5 13.6 13.7 Total $ 466.7 $ 485.0 $ 552.4 |
Investments, Equity Method and
Investments, Equity Method and Joint Ventures | 3 Months Ended |
Apr. 01, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | VARIABLE INTEREST ENTITIES AND RELATED PARTY TRANSACTIONS Assets and Liabilities of Consolidated VIEs The Company has joint ventures that source and market the Company’s footwear and apparel products in China. Based upon the criteria set forth in FASB ASC 810, Consolidation , the Company has determined two of the joint ventures are variable interest entities (VIEs) of which the Company is the primary beneficiary and, as a result, the Company consolidates these VIEs. The primary beneficiary determination is based on the relationship between the Company and the VIE, including contractual agreements between the Company and the VIE. Specifically, the Company has the power to direct the activities that are considered most significant to the entities’ performance and the Company has the obligation to absorb losses and the right to receive benefits that are significant to the entities. The other equity holder’s interests are reflected in “net loss attributable to noncontrolling interests” in the consolidated condensed statement of operations and “Noncontrolling interest” in the consolidated condensed balance sheets. Assets held by these VIEs are only available to settle obligations of the respective entities. Holders of liabilities of these VIEs do not have recourse to the Company. The following is a summary of these VIE’s assets and liabilities included in the Company’s consolidated condensed balance sheets. (In millions) April 1, December 31, April 2, Cash $ 11.6 $ 5.8 $ 19.5 Accounts receivable 15.5 19.7 6.9 Inventory 26.0 16.0 12.6 Other current assets 2.0 2.4 — Noncurrent assets 1.1 0.8 0.7 Total assets $ 56.2 $ 44.7 $ 39.7 Current liabilities $ 10.7 $ 9.6 $ 4.5 Noncurrent liabilities 1.8 1.6 2.4 Total liabilities $ 12.5 $ 11.2 $ 6.9 Nonconsolidated VIEs The Company also has two joint ventures that are VIEs that are not consolidated as the Company does not have the power to direct the most significant activities that impact the VIEs' economic performance. The two VIEs distribute footwear and apparel products in the Asia Pacific region. The following is a summary of carrying amounts of assets included in the Company’s consolidated condensed balance sheets as of April 1, 2023, December 31, 2022 and April 2, 2022, respectively, related to VIEs for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss is the same as the carrying amounts. The following is a summary of the carrying amounts of assets included in the Company’s Consolidated Condensed Balance Sheets. (In millions) April 1, December 31, April 2, Equity method investments (1) $ 6.9 $ 8.1 $ 5.9 (1) Equity method investments are included in “Other Assets” on the consolidated condensed balance sheets. Related Party Transactions In the normal course of business, the Company enters into transactions with related party equity affiliates. Related party transactions consist of the sale of goods, made at arm’s length, and other arrangements. The Company recognized net sales to equity affiliates totaling $10.6 million and $5.1 million for the quarters ended April 1, 2023 and April 2, 2022, respectively. The following table summarizes related party transactions included in the consolidated condensed balance sheets. (In millions) April 1, December 31, April 2, Accounts receivable due from related parties $ 15.5 $ 18.1 $ 6.9 Long term liabilities due to related parties 1.6 — 2.4 Long term assets due from related parties — 1.6 — |
Divestitures (Notes)
Divestitures (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | DIVESTITURE AND ASSETS AND LIABILITIES HELD FOR SALE Divestiture of Keds Business On February 7, 2023 the Company entered into an Asset Purchase Agreement with Designer Brands, Inc. (the "Buyer") pursuant to which the Buyer agreed to purchase the global Keds ® business. The sale was effective February 4, 2023, in accordance with the terms and conditions of the Asset Purchase Agreement. The following table summarizes the net gain recognized in connection with the divestiture: (In millions) Net proceeds $ 83.4 Net assets disposed (65.9) Direct costs to sell (1.6) AOCI reclassification adjustment, foreign currency translation 4.2 Gain on sale of business $ 20.1 The Company determined that the divestiture of the Keds ® business did not represent a strategic shift that had or will have a major effect on the Consolidated Results of Operations, and therefore results were not classified as discontinued operations. The proceeds from the sales were used to reduce outstanding revolver borrowings. Assets and Liabilities Held for Sale During the fourth quarter of 2022, the Company announced that it had initiated a formal process to divest the Wolverine Leathers business. The Company has determined that the Wolverine Leathers business meets the criteria to be classified as held for sale, and therefore have reclassified the related assets and liabilities as held for sale on the consolidated condensed balance sheets. The following is a summary of the major categories of assets and liabilities that have been classified as held for sale on the consolidated condensed balance sheets at April 1, 2023: (In millions) April 1, 2023 Cash and cash equivalents $ 4.4 Accounts receivables, net 6.5 Inventories 11.2 Total assets held for sale $ 22.1 Accounts payable 4.8 Accrued liabilities 0.8 Total liabilities held for sale $ 5.6 The Company determined that the planned divestiture of the Wolverine Leathers business does not represent a strategic shift that had or will have a major effect on the consolidated condensed results of operations, and therefore results of this business were not classified as discontinued operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | 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; kids’ 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 ® , Merrell ® , Saucony ® , Sperry ® , Stride Rite ® , Sweaty Betty ® and Wolverine ® . The Company’s products are marketed worldwide through owned operations, through licensing and distribution arrangements with third parties, and joint ventures. 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™ . Effective February 4, 2023, the Company completed the sale of the Keds ® business. See Note 18 for further discussion. |
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 notes 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 notes included in the Company’s 2022 Form 10-K. |
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 2023 and 2022 each 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 experiences moderate fluctuations in sales volume during the year, as reflected in quarterly revenue. The Company expects current seasonal sales patterns to continue in future years. The Company also experiences some fluctuation in its levels of working capital, typically reflecting an increase in net working capital requirements near the end of the first and third fiscal quarters as inventory builds to support peak shipping periods. Historically, cash provided by operating activities is higher in the second half of the fiscal year due to collection of wholesale channel receivables and direct-to-consumer sales being higher during the holiday season. The Company meets its working capital requirements through internal operating cash flows and, as needed, borrowings under its revolving credit facility, as discussed in more detail under the caption "Liquidity and Capital Resources" in Item 2: "Management's Discussion and Analysis of Financial Condition and Results of Operations". The Company's working capital could also be impacted by other events, including pandemics. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, April 2, Numerator: Net earnings attributable to Wolverine World Wide, Inc. $ 19.0 $ 9.7 Adjustment for earnings allocated to non-vested restricted common stock (0.4) (0.2) Net earnings used in calculating basic and diluted earnings per share $ 18.6 $ 9.5 Denominator: Weighted average shares outstanding 79.2 81.5 Effect of dilutive stock options — 0.4 Shares used in calculating diluted earnings per share 79.2 81.9 Net earnings per share: Basic $ 0.23 $ 0.12 Diluted $ 0.23 $ 0.12 |
Goodwill and Indefinite-Lived_2
Goodwill and Indefinite-Lived Intangibles (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: Quarter Ended (In millions) April 1, April 2, Goodwill balance at beginning of the year $ 485.0 $ 556.6 Sale of business (see Note 18) (20.4) — Foreign currency translation effects 2.1 (4.2) Goodwill balance at end of the quarter $ 466.7 $ 552.4 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Revenue From Contracts With Customers [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Quarter Ended April 1, 2023 Quarter Ended April 2, 2022 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 291.0 $ 94.9 $ 385.9 $ 249.0 $ 97.1 $ 346.1 Work Group 103.3 11.2 114.5 125.3 13.2 138.5 Lifestyle Group 66.1 19.2 85.3 78.1 30.0 108.1 Other 12.5 1.2 13.7 21.0 1.1 22.1 Total Revenue $ 472.9 $ 126.5 $ 599.4 $ 473.4 $ 141.4 $ 614.8 |
Contract with Customer, Asset and Liability [Table Text Block] | The Company’s contract balances are as follows: (In millions) April 1, December 31, April 2, Product returns reserve $ 11.7 $ 15.3 $ 13.2 Customer markdowns reserve 5.0 2.6 2.9 Other sales incentives reserve 3.0 3.3 3.4 Customer rebates liability 14.3 19.8 16.7 Customer advances liability 13.2 9.1 7.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Total debt consists of the following obligations: (In millions) April 1, December 31, April 2, Term Facility, due October 21, 2026 $ 187.5 $ 190.0 $ 197.5 Senior Notes, 4.000% interest, due August 15, 2029 550.0 550.0 550.0 Borrowings under revolving credit agreements 450.0 425.0 355.0 Unamortized deferred financing costs (6.7) (7.0) (7.9) Total debt $ 1,180.8 $ 1,158.0 $ 1,094.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following is a summary of the Company’s lease cost. Quarter Ended (In millions) April 1, April 2, Operating lease cost $ 10.5 $ 9.0 Variable lease cost 3.3 3.6 Short-term lease cost 0.7 1.0 Sublease income (1.5) (2.1) Total lease cost $ 13.0 $ 11.5 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following is a summary of the Company’s supplemental cash flow information related to leases. Quarter Ended (In millions) April 1, April 2, Cash paid for operating lease liabilities $ 11.4 $ 11.2 Operating lease assets obtained in exchange for lease liabilities 4.0 8.4 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, December 31, April 2, Foreign exchange hedge contracts $ 285.2 $ 334.2 $ 331.7 Interest rate swap 162.9 176.2 311.3 |
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) April 1, December 31, April 2, Financial assets: Foreign exchange hedge contracts $ 4.4 $ 7.5 $ 9.1 Interest rate swap 4.5 6.1 5.0 Financial liabilities: Foreign exchange hedge contracts $ (2.5) $ (1.3) $ (1.0) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The Company granted restricted awards and performance awards as follows: Quarter Ended April 1, 2023 Quarter Ended April 2, 2022 (In millions) Company Shares Issued Weighted-Average Grant Date Fair Value Company Shares Issued Weighted-Average Grant Date Fair Value Restricted Awards 1,102,621 $ 15.08 811,712 $ 27.02 Performance Awards 650,723 $ 15.07 382,291 $ 30.06 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, April 2, Service cost pertaining to benefits earned during the period $ 0.8 $ 1.3 Interest cost on projected benefit obligations 4.4 3.3 Expected return on pension assets (4.6) (5.1) Net amortization loss (0.2) 2.8 Net pension expense $ 0.4 $ 2.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The change in accumulated other comprehensive income (loss) during the quarters ended April 1, 2023 and April 2, 2022 is as follows: (In millions) Foreign Derivatives Pension Total Balance at January 1, 2022 $ (56.8) $ (8.9) $ (33.2) $ (98.9) Other comprehensive income (loss) before reclassifications (1) (13.7) 8.5 — (5.2) Amounts reclassified from accumulated other comprehensive income (loss) — (0.4) (2) 2.8 (3) 2.4 Income tax expense (benefit) — 0.1 (0.6) (0.5) Net reclassifications — (0.3) 2.2 1.9 Net current-period other comprehensive income (loss) (1) (13.7) 8.2 2.2 (3.3) Balance at April 2, 2022 $ (70.5) $ (0.7) $ (31.0) $ (102.2) Balance at December 31, 2022 $ (133.1) $ 1.9 $ (1.7) $ (132.9) Other comprehensive income (loss) before reclassifications (1) (1.4) (0.9) — (2.3) Amounts reclassified from accumulated other comprehensive income (loss) 4.2 (7.3) (2) (0.2) (3) (3.3) Income tax expense (benefit) — 1.8 0.1 1.9 Net reclassifications 4.2 (5.5) (0.1) (1.4) Net current-period other comprehensive income (loss) (1) 2.8 (6.4) (0.1) (3.7) Balance at April 1, 2023 $ (130.3) $ (4.5) $ (1.8) $ (136.6) (1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest. (2) Amounts related to foreign currency derivatives deemed to be highly effective are included in cost of goods sold. Amounts related to foreign currency derivatives that are no longer deemed to be highly effective are included in other income. Amounts related to the interest rate swap are included in interest expense. (3) Amounts reclassified are included in the computation of net pension expense. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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) April 1, December 31, April 2, Financial assets: Derivatives $ 8.9 $ 13.6 $ 14.1 Financial liabilities: Derivatives $ (2.5) $ (1.3) $ (1.0) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and the fair value of the Company’s debt are as follows: (In millions) April 1, December 31, April 2, Carrying value $ 1,180.8 $ 1,158.0 $ 1,094.6 Fair value 1,099.4 1,042.9 1,033.0 |
Litigation and Contingencies (T
Litigation and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Exit Costs by Cost [Table Text Block] | The following is a summary of the activity with respect to the environmental remediation reserve established by the Company: Quarter Ended (In millions) April 1, April 2, Remediation liability at beginning of the year $ 74.1 $ 85.7 Amounts paid (0.8) (10.5) Remediation liability at the end of the quarter $ 73.3 $ 75.2 |
Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company | These minimum future obligations for the fiscal periods subsequent to April 1, 2023 are as follows: (In millions) 2023 2024 2025 2026 2027 Thereafter Minimum royalties $ 0.6 $ — $ — $ — $ — $ — Minimum advertising 1.7 3.9 4.1 4.2 4.3 4.5 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Revenue and Operating Profit by Segment | Quarter Ended (In millions) April 1, April 2, Revenue: Active Group $ 385.9 $ 346.1 Work Group 114.5 138.5 Lifestyle Group 85.3 108.1 Other 13.7 22.1 Total $ 599.4 $ 614.8 Segment operating profit (loss): Active Group $ 52.1 $ 53.2 Work Group 15.5 25.5 Lifestyle Group 2.8 13.1 Other 3.4 2.5 Corporate (28.5) (74.7) Operating profit 45.3 19.6 Interest expense, net 15.8 8.7 Other expense (income), net 1.2 (1.1) Earnings before income taxes $ 28.3 $ 12.0 |
Assets and Goodwill by Segment | (In millions) April 1, December 31, April 2, Total assets: Active Group $ 1,345.2 $ 1,331.5 $ 1,465.4 Work Group 363.5 375.7 324.8 Lifestyle Group 441.9 514.8 681.5 Other 63.8 58.6 68.3 Corporate 202.3 212.1 206.0 Total $ 2,416.7 $ 2,492.7 $ 2,746.0 Goodwill: Active Group $ 316.0 $ 314.4 $ 376.2 Work Group 60.0 59.6 60.9 Lifestyle Group 77.2 97.4 101.6 Other 13.5 13.6 13.7 Total $ 466.7 $ 485.0 $ 552.4 |
Investments, Equity Method an_2
Investments, Equity Method and Joint Ventures (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | The following is a summary of these VIE’s assets and liabilities included in the Company’s consolidated condensed balance sheets. (In millions) April 1, December 31, April 2, Cash $ 11.6 $ 5.8 $ 19.5 Accounts receivable 15.5 19.7 6.9 Inventory 26.0 16.0 12.6 Other current assets 2.0 2.4 — Noncurrent assets 1.1 0.8 0.7 Total assets $ 56.2 $ 44.7 $ 39.7 Current liabilities $ 10.7 $ 9.6 $ 4.5 Noncurrent liabilities 1.8 1.6 2.4 Total liabilities $ 12.5 $ 11.2 $ 6.9 |
Equity Method Investments | The following is a summary of the carrying amounts of assets included in the Company’s Consolidated Condensed Balance Sheets. (In millions) April 1, December 31, April 2, Equity method investments (1) $ 6.9 $ 8.1 $ 5.9 |
Schedule of Related Party Transactions | The following table summarizes related party transactions included in the consolidated condensed balance sheets. (In millions) April 1, December 31, April 2, Accounts receivable due from related parties $ 15.5 $ 18.1 $ 6.9 Long term liabilities due to related parties 1.6 — 2.4 Long term assets due from related parties — 1.6 — |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Divestitures [Abstract] | |
Schedule of gain loss on sale of business | The following table summarizes the net gain recognized in connection with the divestiture: (In millions) Net proceeds $ 83.4 Net assets disposed (65.9) Direct costs to sell (1.6) AOCI reclassification adjustment, foreign currency translation 4.2 Gain on sale of business $ 20.1 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following is a summary of the major categories of assets and liabilities that have been classified as held for sale on the consolidated condensed balance sheets at April 1, 2023: (In millions) April 1, 2023 Cash and cash equivalents $ 4.4 Accounts receivables, net 6.5 Inventories 11.2 Total assets held for sale $ 22.1 Accounts payable 4.8 Accrued liabilities 0.8 Total liabilities held for sale $ 5.6 |
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 | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,170,599 | 984,771 |
Numerator: | ||
Net earnings attributable to Wolverine World Wide, Inc. | $ 19 | $ 9.7 |
Adjustment for earnings allocated to non-vested restricted common stock | (0.4) | (0.2) |
Net earnings used in calculating basic and diluted earnings per share | $ 18.6 | $ 9.5 |
Denominator: | ||
Weighted average shares outstanding | 79,200,000 | 81,500,000 |
Effect of dilutive stock options | 0 | 400,000 |
Shares used in calculating diluted earnings per share | 79,200,000 | 81,900,000 |
Net Earnings Per Share: [Abstract] | ||
Basic | $ 0.23 | $ 0.12 |
Diluted | $ 0.23 | $ 0.12 |
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 | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 485 | $ 556.6 |
Goodwill, Written off Related to Sale of Business Unit | (20.4) | 0 |
Foreign currency translation effects | 2.1 | (4.2) |
Goodwill, Ending balance | $ 466.7 | $ 552.4 |
Goodwill and Indefinite-Lived_4
Goodwill and Indefinite-Lived Intangibles Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 274 | $ 276.6 | $ 707.4 |
Sperry [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 105.3 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 191 | ||
Sweaty Betty [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 96.6 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 189.3 | ||
Goodwill, Impairment Loss | $ 48.4 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Sale of accounts receivable, maximum amount under agreement | $ 175 |
Receivables Purchase Agreement Maturity Date | Dec. 05, 2025 |
Accounts receivable sold | $ 183.2 |
Receivables Purchase Agreement Cash Collections | 176 |
Receivables Purchase Agreement Uncollected | 149.9 |
Receivables Purchase Agreement Collateral | $ 76.6 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers Additional Information (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Revenue Recognition [Abstract] | |
Remaining Fixed Transaction Price | $ 7.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2026 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers Disaggrated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Revenue | $ 599.4 | $ 614.8 |
Other [Member] | ||
Revenue | 13.7 | 22.1 |
Active Group | ||
Revenue | 385.9 | 346.1 |
Work Group | ||
Revenue | 114.5 | 138.5 |
Lifestyle Group | ||
Revenue | 85.3 | 108.1 |
Wholesale Channel [Member] | ||
Revenue | 472.9 | 473.4 |
Wholesale Channel [Member] | Other [Member] | ||
Revenue | 12.5 | 21 |
Wholesale Channel [Member] | Active Group | ||
Revenue | 291 | 249 |
Wholesale Channel [Member] | Work Group | ||
Revenue | 103.3 | 125.3 |
Wholesale Channel [Member] | Lifestyle Group | ||
Revenue | 66.1 | 78.1 |
Consumer-Direct Channel [Member] | ||
Revenue | 126.5 | 141.4 |
Consumer-Direct Channel [Member] | Other [Member] | ||
Revenue | 1.2 | 1.1 |
Consumer-Direct Channel [Member] | Active Group | ||
Revenue | 94.9 | 97.1 |
Consumer-Direct Channel [Member] | Work Group | ||
Revenue | 11.2 | 13.2 |
Consumer-Direct Channel [Member] | Lifestyle Group | ||
Revenue | $ 19.2 | $ 30 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers Contract Balances (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Revenue from Contracts with Customer [Abstract] | |||
Product Returns Reserve | $ 11.7 | $ 15.3 | $ 13.2 |
Customer Markdowns Reserve | 5 | 2.6 | 2.9 |
Sales Incentives Reserve | 3 | 3.3 | 3.4 |
Customer Rebates Liability | 14.3 | 19.8 | 16.7 |
Customer Advances, Current | $ 13.2 | $ 9.1 | $ 7.9 |
Debt (Schedule of Borrowings) (
Debt (Schedule of Borrowings) (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreements | $ 450 | $ 425 | $ 355 |
Debt Issuance Costs, Noncurrent, Net | (6.7) | (7) | (7.9) |
Total debt | 1,180.8 | 1,158 | 1,094.6 |
Term Loan A [Member] | October Twenty One Two Thousand Twenty Six | |||
Debt Instrument [Line Items] | |||
Long-term debt | 187.5 | 190 | 197.5 |
Senior Notes [Member] | August Fifteenth Two Thousand Twenty Nine [Domain] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 550 | $ 550 | $ 550 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 10 | $ 10 | $ 10 |
Amortization of deferred financing costs | 0.5 | 0.5 | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount debt instrument | $ 2,000 | ||
Alternative Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1% | ||
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 | 2% | ||
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 | $ 1,000 | ||
Outstanding letters of credit | 6.5 | 6 | 5.7 |
Swingline Subfacility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility amount | 100 | ||
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 | 2 | ||
August Fifteenth Two Thousand Twenty Nine [Domain] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 550 | 550 | 550 |
Interest rate | 4% | ||
October Twenty One Two Thousand Twenty Six | Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 5.28% | ||
Debt, Long-term and Short-term, Combined Amount | $ 187.5 | $ 197.5 | $ 190 |
Leases Operating Lease Costs (D
Leases Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||
Operating Lease, Expense | $ 10.5 | $ 9 |
Variable Lease, Cost | 3.3 | 3.6 |
Short-term Lease, Cost | 0.7 | 1 |
Sublease Income | (1.5) | (2.1) |
Lease, Cost | $ 13 | $ 11.5 |
Leases, Supplemental Cash Flow
Leases, Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 11.4 | $ 11.2 |
Lease assets obtained in exchange for lease liabilities | $ 4 | $ 8.4 |
Leases Additional Information (
Leases Additional Information (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Leases [Abstract] | |
Lessee Operating Lease Not Yet Commenced Value | $ 0.8 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Derivative Notional Amounts) (Details) - Hedge [Member] - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Foreign exchange contracts [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Notional Amount | $ 285.2 | $ 334.2 | $ 331.7 |
Interest rate swaps [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Notional Amount | $ 162.9 | $ 176.2 | $ 311.3 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management Derivative Recorded Values (Details) - Hedge [Member] - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Foreign exchange contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange contracts, asset | $ 4.4 | $ 7.5 | $ 9.1 |
Foreign exchange contracts liabilities | (2.5) | (1.3) | (1) |
Interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate swap, assets | $ 4.5 | $ 6.1 | $ 5 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Additional Information) (Details) | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Foreign exchange contracts [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Maximum remaining maturity of foreign currency derivatives | 524 days | 538 days | 524 days |
Interest rate swaps [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Financial instrument expiration date | May 30, 2025 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Restricted Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 1,102,621 | 811,712 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 15.08 | $ 27.02 |
Performance Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 650,723 | 382,291 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 15.07 | $ 30.06 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 4.5 | $ 10.3 |
Related income tax benefits on share based compensation | $ 0.8 | $ 2 |
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 | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Retirement Benefits [Abstract] | ||
Service cost pertaining to benefits earned during the period | $ 0.8 | $ 1.3 |
Interest cost on projected benefit obligations | 4.4 | 3.3 |
Expected return on pension assets | (4.6) | (5.1) |
Net amortization loss | (0.2) | 2.8 |
Net pension expense | $ 0.4 | $ 2.3 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Percent | 36.30% | 30.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance AOCI | $ (132.9) | $ (98.9) |
Accumulated other comprehensive loss | (136.6) | (102.2) |
Other comprehensive income (loss) before reclassifications | (2.3) | (5.2) |
Amounts reclassified from AOCI | (3.3) | 2.4 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 1.9 | (0.5) |
Net reclassifications | (1.4) | 1.9 |
Other Comprehensive Income (Loss), Net of Tax | (3.2) | (3.1) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3.7 | 3.3 |
Ending balance AOCI | (136.6) | (102.2) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance AOCI | (133.1) | (56.8) |
Accumulated other comprehensive loss | (130.3) | (70.5) |
Other comprehensive income (loss) before reclassifications | (1.4) | (13.7) |
Amounts reclassified from AOCI | 4.2 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0 | 0 |
Net reclassifications | 4.2 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (2.8) | 13.7 |
Ending balance AOCI | (130.3) | (70.5) |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance AOCI | 1.9 | (8.9) |
Accumulated other comprehensive loss | (4.5) | (0.7) |
Other comprehensive income (loss) before reclassifications | (0.9) | 8.5 |
Amounts reclassified from AOCI | (7.3) | (0.4) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 1.8 | 0.1 |
Net reclassifications | (5.5) | (0.3) |
Other Comprehensive Income (Loss), Net of Tax | 6.4 | (8.2) |
Ending balance AOCI | (4.5) | (0.7) |
Pension adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance AOCI | (1.7) | (33.2) |
Accumulated other comprehensive loss | (1.8) | (31) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | (0.2) | 2.8 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0.1 | (0.6) |
Net reclassifications | (0.1) | 2.2 |
Other Comprehensive Income (Loss), Net of Tax | 0.1 | (2.2) |
Ending balance AOCI | $ (1.8) | $ (31) |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Fair Value Measurements (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 8.9 | $ 13.6 | $ 14.1 |
Derivative Liability | $ (2.5) | $ (1.3) | $ (1) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Disclosures (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Fair Value Disclosures [Abstract] | |||
Debt, Carrying Value | $ 1,180.8 | $ 1,158 | $ 1,094.6 |
Debt, Fair Value | $ 1,099.4 | $ 1,042.9 | $ 1,033 |
Litigation and Contingencies En
Litigation and Contingencies Environmental Remediation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Environmental Exit Cost [Line Items] | ||
Site Contingency, Recovery from Third Party of Environmental Remediation Cost | $ 55 | |
Loss Contingency Accrual | $ 40.5 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Remediation liability at beginning of the year | 74.1 | 85.7 |
Amounts paid | (0.8) | (10.5) |
Remediation liability at the end of the quarter | 73.3 | $ 75.2 |
Environmental remediation accrual, noncurrent | 49.7 | |
Environmental remediation accrual, current | $ 23.6 | |
Site Contingency, Time Frame of Disbursements | 25 |
Litigation and Contingencies Mi
Litigation and Contingencies Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Royalties [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | $ 0.6 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Advertising [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | 1.7 |
2024 | 3.9 |
2025 | 4.1 |
2026 | 4.2 |
2027 | 4.3 |
Thereafter | $ 4.5 |
Litigation and Contingencies (A
Litigation and Contingencies (Additional Information) (Details) - Licensing agreements [Member] - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Long-term Purchase Commitment [Line Items] | ||
Royalty expense, licensing agreements | $ 0.3 | $ 0.5 |
Advertising expense, licensing agreements | $ 1.3 | $ 1.3 |
Business Segments (Revenue and
Business Segments (Revenue and Operating Profit by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 599.4 | $ 614.8 |
Operating profit (loss) | 45.3 | 19.6 |
Interest expense, net | 15.8 | 8.7 |
Other Nonoperating Income (Expense) | 1.2 | (1.1) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 28.3 | 12 |
Active Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 385.9 | 346.1 |
Operating profit (loss) | 52.1 | 53.2 |
Work Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 114.5 | 138.5 |
Operating profit (loss) | 15.5 | 25.5 |
Lifestyle Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 85.3 | 108.1 |
Operating profit (loss) | 2.8 | 13.1 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13.7 | 22.1 |
Operating profit (loss) | 3.4 | 2.5 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss) | $ (28.5) | $ (74.7) |
Business Segments (Assets and G
Business Segments (Assets and Goodwill by Segment) (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 2,416.7 | $ 2,492.7 | $ 2,746 | |
Goodwill | 466.7 | 485 | 552.4 | $ 556.6 |
Active Group | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,345.2 | 1,331.5 | 1,465.4 | |
Goodwill | 316 | 314.4 | 376.2 | |
Work Group | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 363.5 | 375.7 | 324.8 | |
Goodwill | 60 | 59.6 | 60.9 | |
Lifestyle Group | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 441.9 | 514.8 | 681.5 | |
Goodwill | 77.2 | 97.4 | 101.6 | |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 63.8 | 58.6 | 68.3 | |
Goodwill | 13.5 | 13.6 | 13.7 | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 202.3 | $ 212.1 | $ 206 |
JV Consolidated Balances (Detai
JV Consolidated Balances (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 116.2 | $ 131.5 | $ 149.6 |
Accounts receivable, less allowances of $11.1 and $28.3 | 251.2 | 241.7 | 370.6 |
Inventory, Net | 725.9 | 745.2 | 483.3 |
Total assets | 2,416.7 | 2,492.7 | 2,746 |
Total current liabilities | 1,035.9 | 1,110.3 | 967.4 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 11.6 | 5.8 | 19.5 |
Accounts receivable, less allowances of $11.1 and $28.3 | 15.5 | 19.7 | 6.9 |
Inventory, Net | 26 | 16 | 12.6 |
Other Assets, Current | 2 | 2.4 | 0 |
Assets, Noncurrent | 1.1 | 0.8 | 0.7 |
Total assets | 56.2 | 44.7 | 39.7 |
Total current liabilities | 10.7 | 9.6 | 4.5 |
Liabilities, Noncurrent | 1.8 | 1.6 | 2.4 |
Liabilities | $ 12.5 | $ 11.2 | $ 6.9 |
JV Equity Method Balances (Deta
JV Equity Method Balances (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 6.9 | $ 8.1 | $ 5.9 |
JV Related Party Transactions (
JV Related Party Transactions (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Accounts Receivable, Related Parties | $ 15.5 | $ 18.1 | $ 6.9 |
Due to Related Parties | 1.6 | 0 | 2.4 |
Due from Related Parties | $ 0 | $ 1.6 | $ 0 |
Investments, Equity Method an_3
Investments, Equity Method and Joint Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Revenue from Related Parties | $ 10.6 | $ 5.1 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups Keds (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain (Loss) on Disposition of Business | $ 20.1 | $ 0 |
Keds [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | 83.4 | |
Disposal Group, Including Discontinued Operations, Net Assets | (65.9) | |
Disposal Group Including Discontinued Operation Transaction Costs | (1.6) | |
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | 4.2 | |
Gain (Loss) on Disposition of Business | $ 20.1 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups Leathers (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 4.4 | $ 4 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 6.5 | ||
Disposed, Inventory | 11.2 | ||
Current assets held for sale | 22.1 | 67.9 | $ 0 |
Disposal Group, Including Discontinued Operation, Accounts Payable | 4.8 | ||
Disposed, other accrued liabilities | (0.8) | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 5.6 | $ 8.8 | $ 0 |