Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 22, 2024 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | WOLVERINE WORLD WIDE INC /DE/ | |
Entity Central Index Key | 0000110471 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 80,010,618 | |
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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 425.2 | $ 589.1 | $ 820.1 | $ 1,188.5 |
Cost of goods sold | 242 | 361.3 | 455.5 | 724.4 |
Gross profit | 183.2 | 227.8 | 364.6 | 464.1 |
Selling, general and administrative expenses | 166.6 | 195.5 | 343.4 | 407.5 |
Gain on sale of businesses, trademarks, and intangible assets | 0 | 0 | 0 | (20.1) |
Impairment, Long-Lived Asset, Held-for-Use | 3.2 | 15.6 | 9.3 | 15.6 |
Environmental and other related costs (income), net of recoveries | (15.7) | (29.4) | (14.1) | (30.3) |
Operating profit | 29.1 | 46.1 | 26 | 91.4 |
Other expenses: | ||||
Interest expense, net | 11.9 | 16.1 | 23.9 | 31.9 |
Other expense (income), net | (0.8) | (0.4) | (1.6) | 0.8 |
Total other expenses | 11.1 | 15.7 | 22.3 | 32.7 |
Earnings before income taxes | 18 | 30.4 | 3.7 | 58.7 |
Income tax expense | 2.4 | 6 | 1.8 | 16.3 |
Net earnings | 15.6 | 24.4 | 1.9 | 42.4 |
Less: net earnings (loss) attributable to noncontrolling interests | 1.4 | 0.4 | 2.2 | (0.6) |
Net earnings (loss) attributable to Wolverine World Wide, Inc. | $ 14.2 | $ 24 | $ (0.3) | $ 43 |
Net Earnings Per Share: | ||||
Basic | $ 0.17 | $ 0.30 | $ (0.01) | $ 0.53 |
Diluted | $ 0.17 | $ 0.30 | $ (0.01) | $ 0.53 |
Comprehensive income (loss) | $ 12.9 | $ 25.2 | $ (6.4) | $ 40 |
Less: comprehensive income (loss) attributable to noncontrolling interests | 0.7 | 0.1 | 1.6 | (0.4) |
Comprehensive income (loss) attributable to Wolverine World Wide, Inc. | $ 12.2 | $ 25.1 | $ (8) | $ 40.4 |
Cash dividends declared per share | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 148.3 | $ 179 | $ 176.5 |
Accounts receivable, less allowances: June 29, 2024: $8.9; December 30, 2023 $18.3; July 1, 2023: $12.0 | 272.2 | 230.8 | 241.5 |
Inventories: | |||
Finished products, net | 295.4 | 371.6 | 645.9 |
Raw materials and work-in-process, net | 1.7 | 2 | 2 |
Total inventories | 297.1 | 373.6 | 647.9 |
Prepaid expenses and other current assets | 73.2 | 81.1 | 78.9 |
Current assets held for sale | 0 | 160.6 | 19.1 |
Total current assets | 790.8 | 1,025.1 | 1,163.9 |
Noncurrent assets: | |||
Property plant and equipment net of accumulated depreciation: June 29, 2024: $247.1; December 30, 2023: $255.2; July 1, 2023: $250.0 | 90.2 | 96.3 | 134.3 |
Lease right-of-use assets, net | 103.6 | 118.2 | 155.4 |
Goodwill | 425.8 | 427.1 | 469.7 |
Indefinite-lived intangibles | 173.4 | 174.1 | 279.2 |
Amortizable intangibles, net | 33.1 | 34.9 | 59.1 |
Deferred Income Tax Assets, Net | 116.4 | 116.4 | 25.1 |
Other assets | 63 | 70.7 | 70.6 |
Total assets | 1,796.3 | 2,062.8 | 2,357.3 |
Current liabilities: | |||
Accounts payable | 181.6 | 206 | 252.2 |
Accrued salaries and wages | 28.2 | 37.1 | 19.2 |
Other accrued liabilities | 188.2 | 252.4 | 254.5 |
Lease liabilities | 32.6 | 34.7 | 39.2 |
Current maturities of long-term debt | 10 | 10 | 10 |
Borrowings under revolving credit agreements | 225 | 305 | 385 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 24.2 | 4.1 |
Total current liabilities | 665.6 | 869.4 | 964.2 |
Noncurrent liabilities: | |||
Long-term debt, less current maturities | 579.7 | 605.8 | 718.5 |
Accrued pension liabilities | 77 | 78.4 | 72.1 |
Deferred Income Tax Liabilities, Net | 27.8 | 26.9 | 33.9 |
Operating Lease, Liability, Noncurrent | 119.8 | 132.4 | 146.7 |
Other liabilities | 56 | 49.9 | 55 |
Stockholders’ equity: | |||
Common Stock - par value $1, authorized 320,000,000 shares; shares issued (including shares in treasury): June 29, 2024: 113,406,905 shares; December 30, 2023: 112,953,782 shares; July 1, 2023: 112,918,046 shares | 113.4 | 113 | 112.9 |
Additional paid-in capital | 371.6 | 364 | 326.8 |
Retained earnings | 817.9 | 834.8 | 933.8 |
Accumulated other comprehensive loss | (149.9) | (142.2) | (135.5) |
Cost of shares in treasury: June 29, 2024: 33,396,787 shares; December 30, 2023: 33,403,280 shares; July 1, 2023: 33,409,577 shares | (890.9) | (891) | (891.2) |
Total Wolverine World Wide, Inc. stockholders’ equity | 262.1 | 278.6 | 346.8 |
Noncontrolling interest | 8.3 | 21.4 | 20.1 |
Total stockholders’ equity | 270.4 | 300 | 366.9 |
Total liabilities and stockholders’ equity | $ 1,796.3 | $ 2,062.8 | $ 2,357.3 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Statement of Financial Position [Abstract] | |||
Accounts receivable allowance | $ 8.9 | $ 18.3 | $ 12 |
Accumulated depreciation | $ (247.1) | $ (255.2) | $ (250) |
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) | 113,406,905 | 112,953,782 | 112,918,046 |
Treasury Stock, Common, Shares | 33,396,787 | 33,403,280 | 33,409,577 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
OPERATING ACTIVITIES | |||||
Net earnings | $ 15.6 | $ 24.4 | $ 1.9 | $ 42.4 | |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 13.3 | 17.1 | |||
Deferred income taxes | (0.7) | (0.6) | |||
Stock-based compensation expense | 5.7 | 3.3 | 9.8 | 7.8 | |
Pension and SERP expense | (0.3) | 0.8 | |||
Impairment, Long-Lived Asset, Held-for-Use | 3.2 | 15.6 | 9.3 | 15.6 | |
Environmental and other related costs, net of cash payments | (31.7) | (41) | |||
Gain on sale of businesses, trademarks and intangible assets | 0 | 20.1 | |||
Other | (8.2) | (0.9) | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (13.9) | 0.8 | |||
Inventories | 72.4 | 100.3 | |||
Other operating assets | 4.3 | (4.6) | |||
Accounts payable | (23.2) | (23.1) | |||
Income taxes payable | (4.7) | 6.1 | |||
Other operating liabilities | (38.8) | (54.7) | |||
Net cash provided by (used in) operating activities | (10.5) | 45.9 | |||
INVESTING ACTIVITIES | |||||
Additions to property, plant and equipment | (8.1) | (14.2) | |||
Proceeds from sale of businesses, intangible assets and other assets, net of cash disposed of | 92.5 | 81.9 | |||
Proceeds from Life Insurance Policy | 7.9 | 0 | |||
Other | (2.4) | (0.7) | |||
Net cash provided by investing activities | 89.9 | 67 | |||
FINANCING ACTIVITIES | |||||
Repayments of Lines of Credit | (299) | (475) | |||
Proceeds from Lines of Credit | 219 | 435 | |||
Cash Received From Borrowings Against Company Owned Life Insurance Policies | 7 | 0 | |||
Payments on long-term debt | (26.7) | (5) | |||
Payments of Debt Issuance Costs | 0 | (0.9) | |||
Cash dividends paid | (16.2) | (16.4) | |||
Payment, Tax Withholding, Share-based Payment Arrangement | (1.7) | (5.7) | |||
Proceeds from the exercise of stock options | 0 | 0.1 | |||
Contributions from noncontrolling interests | 0 | 2.1 | |||
Net cash used in financing activities | (117.6) | (65.8) | |||
Effect of foreign exchange rate changes | 1.9 | (2.5) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (36.3) | 44.6 | |||
Cash and cash equivalents at beginning of the year | 184.6 | 135.5 | $ 135.5 | ||
Cash and cash equivalents at end of the quarter | $ 148.3 | $ 180.1 | $ 148.3 | $ 180.1 | $ 184.6 |
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, Common | Noncontrolling Interest [Member] |
Beginning Balance at Dec. 31, 2022 | $ 339 | $ 112.2 | $ 325.4 | $ 907.2 | $ (132.9) | $ (891.3) | $ 18.4 |
Net earnings (loss) attributable to Wolverine World Wide, Inc. | 43 | 43 | |||||
Less: net earnings (loss) attributable to noncontrolling interests | (0.6) | (0.6) | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 42.4 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2.6 | (2.6) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0.2 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (2.4) | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (5.8) | 0.7 | (6.5) | ||||
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 | 7.8 | 7.8 | |||||
Dividends, Common Stock, Cash | (16.4) | (16.4) | |||||
Stock Issued During Period, Value, Treasury Stock Reissued | 0.1 | 0 | 0.1 | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 2.1 | 2.1 | |||||
Ending Balance at Jul. 01, 2023 | 366.9 | 112.9 | 326.8 | 933.8 | (135.5) | (891.2) | 20.1 |
Beginning Balance at Apr. 01, 2023 | 344.5 | 112.8 | 323.8 | 917.9 | (136.6) | (891.3) | 17.9 |
Net earnings (loss) attributable to Wolverine World Wide, Inc. | 24 | 24 | |||||
Less: net earnings (loss) attributable to noncontrolling interests | 0.4 | 0.4 | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 24.4 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.1) | 1.1 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (0.3) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 0.8 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (0.2) | 0.1 | (0.3) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3.3 | 3.3 | |||||
Dividends, Common Stock, Cash | (8.1) | (8.1) | |||||
Stock Issued During Period, Value, Treasury Stock Reissued | 0.1 | 0.1 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 2.1 | 2.1 | |||||
Ending Balance at Jul. 01, 2023 | 366.9 | 112.9 | 326.8 | 933.8 | (135.5) | (891.2) | 20.1 |
Beginning Balance at Dec. 30, 2023 | 300 | 113 | 364 | 834.8 | (142.2) | (891) | 21.4 |
Net earnings (loss) attributable to Wolverine World Wide, Inc. | (0.3) | (0.3) | |||||
Less: net earnings (loss) attributable to noncontrolling interests | 2.2 | 2.2 | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 1.9 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 7.7 | (7.7) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (0.6) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (8.3) | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (1.7) | 0.4 | (2.1) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9.8 | 9.8 | |||||
Dividends, Common Stock, Cash | (16.6) | (16.6) | |||||
Stock Issued During Period, Value, Treasury Stock Reissued | 0 | (0.1) | 0.1 | ||||
Stockholders' Equity, Other | (14.7) | (14.7) | |||||
Ending Balance at Jun. 29, 2024 | 270.4 | 113.4 | 371.6 | 817.9 | (149.9) | (890.9) | 8.3 |
Beginning Balance at Mar. 30, 2024 | 260.1 | 113.3 | 366.1 | 812 | (147.9) | (891) | 7.6 |
Net earnings (loss) attributable to Wolverine World Wide, Inc. | 14.2 | 14.2 | |||||
Less: net earnings (loss) attributable to noncontrolling interests | 1.4 | 1.4 | |||||
Income (Loss), Including Portion Attributable to Noncontrolling Interest, before Tax | 15.6 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2 | (2) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (0.7) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (2.7) | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (0.1) | 0.1 | (0.2) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 5.7 | 5.7 | |||||
Dividends, Common Stock, Cash | (8.3) | (8.3) | |||||
Stock Issued During Period, Value, Treasury Stock Reissued | 0.1 | 0 | 0.1 | ||||
Ending Balance at Jun. 29, 2024 | $ 270.4 | $ 113.4 | $ 371.6 | $ 817.9 | $ (149.9) | $ (890.9) | $ 8.3 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 86,986 | 76,914 | 453,123 | 709,926 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | 6,042 | |
Cash dividends declared per share | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 2,923 | 1,802 | 6,493 | 3,627 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 ® , 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 through 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. Effective February 4, 2023, the Company completed the sale of the Keds ® business. See Note 18 for further discussion. In the third quarter of fiscal 2023, the Company entered into a multi-year licensing agreement of the Hush Puppies ® brand in the United States and Canada and completed the sale of the Hush Puppies ® trademarks, patents, copyrights, and domains in China, Hong Kong, and Macau. The Company will continue to own the Hush Puppies ® brand throughout the rest of the world. See Note 18 for further discussion. Effective August 23, 2023, the Company completed the sale of the U.S. Leathers business and effective December 28, 2023, the Company completed the sale of the Asia-based Leathers business. See Note 18 for further discussion. Effective January 1, 2024, the Company completed the sale of the Company’s equity interest joint venture entities that sourced and marketed Merrell ® and Saucony ® footwear and apparel products in China. See Note 18 for further discussion. Effective January 10, 2024, the Company completed the sale of the Sperry ® business. See Note 18 for further discussion. Effective May 4, 2024, the Company entered into global multi-year licensing agreements of the Merrell ® and Saucony ® kids footwear and Merrell ® apparel and accessories. 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 2023 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 2024 and 2023 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 fourth fiscal 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 health crises. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. Each impairment test is based on a comparison of the carrying amount of the asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group. Assets are considered impaired if the carrying amount exceeds fair value. The impairment amount recognized is the amount by which the carrying amount of the assets exceeds their fair value. In the first quarter of 2024, the Company incurred non-cash impairment charges on the long-lived property, plant and equipment and lease right-of-use assets at the Company’s distribution center in Louisville, Kentucky to adjust the carrying amount of the assets to their estimated fair value. The Louisville distribution center impairment was related to the Company’s transformation activities and actions to consolidate distribution operations. The long-lived assets are not expected to have a fair value after the Company stops using the distribution center. In the second quarter of 2024 and 2023, the Company incurred non-cash impairment charges on certain Corporate U.S. and Canada office long-lived property, plant and equipment and right-of-use assets, primarily resulting from divestiture activities and consolidation of corporate office space, to adjust the carrying amount of the assets to estimated fair value. Fair value was estimated based on the discounted cash flows of estimated rental income from subleases net of estimated expenses. The following table provides details related to asset impairment charges recorded: Quarter Ended Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Lease right-of-use assets impairment $ 3.0 $ 12.1 $ 5.9 $ 12.1 Property, plant and equipment impairment 0.2 3.5 3.4 3.5 Total impairment $ 3.2 $ 15.6 $ 9.3 $ 15.6 |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 Updates (“ASU”) that the Company has not yet adopted. The following is a summary of the new standards and anticipated impact of adopting these new standards. Standard Description Effect on the Financial Statements ASU 2023-07, Improvements to Reportable Segment Disclosures Requires entities disclose on an annual and interim basis significant segment expense, including an amount and composition description for other segment items, and how reported measures of profit or loss are used by the chief operating decision maker in assessing segment performance and deciding how to allocate resources. The ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the new standard on its Consolidated Financial Statements. ASU 2023-09, Improvements to Income Tax Disclosures Requires annual disclosures of prescribed standard categories for the components of the effective tax rate reconciliation, disclosure of income taxes paid disaggregated by jurisdiction, and other income-tax related disclosures. The ASU is effective on a prospective basis, with retrospective application permitted, for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the new standard on its Consolidated Financial Statements. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 Year-To-Date Ended (In millions, except per share data) June 29, July 1, June 29, July 1, Numerator: Net earnings (loss) attributable to Wolverine World Wide, Inc. $ 14.2 $ 24.0 $ (0.3) $ 43.0 Adjustment for earnings allocated to non-vested restricted common stock (0.5) (0.5) (0.6) (1.0) Net earnings (loss) used in calculating basic and diluted earnings per share $ 13.7 $ 23.5 $ (0.9) $ 42.0 Denominator: Weighted average shares outstanding 80.0 79.5 79.9 79.3 Effect of dilutive stock options — — — — Shares used in calculating diluted earnings per share 80.0 79.5 79.9 79.3 Net earnings (loss) per share: Basic $ 0.17 $ 0.30 $ (0.01) $ 0.53 Diluted $ 0.17 $ 0.30 $ (0.01) $ 0.53 For the quarter and year-to-date ended June 29, 2024, 1,574,879 and 1,672,689 outstanding stock options, respectively, have not been included in the denominator for the computation of diluted earnings per share because they were anti-dilutive. For the quarter and year-to-date ended July 1, 2023, 1,991,262 and 2,080,931 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) | 6 Months Ended |
Jun. 29, 2024 | |
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: Year-To-Date Ended (In millions) June 29, July 1, Goodwill balance at beginning of the year $ 427.1 $ 485.0 Sale of business (see Note 18) — (20.4) Foreign currency translation effects (1.3) 5.1 Goodwill balance at end of the quarter $ 425.8 $ 469.7 Goodwill balances are net of accumulated impairment charges. Accumulated impairment charges were $48.4 million as of June 29, 2024 and July 1, 2023, and are related to the Sweaty Betty ® reporting unit, which is part of the Active segment. The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $173.4 million, $174.1 million, and $279.2 million as of June 29, 2024, December 30, 2023, and July 1, 2023, respectively. The Company conducted an interim impairment assessment as of June 29, 2024 and determined that there were no triggering events indicating impairment of the Company’s goodwill and indefinite-lived intangible assets. Following the fiscal 2023 annual impairment test, the Company concluded that the estimated fair value of the Sweaty Betty ® reporting unit exceeded its carrying value by 5%. The key assumptions used in the valuation were revenue growth, EBITDA margin, and the discount rate. Although the Company believes the estimates and assumptions used in the valuation were appropriate, it is possible that assumptions could change in future periods. The risk of future impairment to the Sweaty Betty ® trade name and Sweaty Betty ® goodwill depend on key assumptions used in the determination of the trade name's and 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 Sweaty Betty ® trade name and the Sweaty Betty ® reporting unit. A future impairment charge of the Sweaty Betty ® trade name and the 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 Sweaty Betty ® trade name indefinite-lived intangible asset and the Sweaty Betty ® reporting unit goodwill were $98.7 million an d $52.6 million, respectively, as of June 29, 2024. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
Accounts Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ACCOUNTS RECEIVABLE The 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”), which was subsequently amended on April 15, 2024, to sell up to $125.0 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, are classified as operating cash flows at the time of collection. Total receivables sold under the RPA were $102.7 million and $205.0 million for the quarter and year-to-date ended June 29, 2024, respectively. Total receivables sold under the RPA were $182.4 million and $365.6 million for the quarter and year-to-date ended July 1, 2023, respectively. Total cash collections under the RPA were $104.1 million and $205.8 million in the quarter and year-to-date ended June 29, 2024, respectively. Total cash collections under the RPA were $196.8 million and $372.8 million in the quarter and year-to-date ended July 1, 2023, respectively. 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 quarters ended June 29, 2024 and July 1, 2023, the amount sold to the Purchasers under the RPA was $93.0 million and $135.5 million, respectively, which was derecognized from the consolidated condensed balance sheets. As collateral against sold receivables, Rockford ARS maintains a certain level of unsold receivables, which were $53.6 million and $68.5 million as of the fiscal quarters ended June 29, 2024 and July 1, 2023, respectively. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 Quarter Ended July 1, 2023 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 203.1 $ 102.8 $ 305.9 $ 284.2 $ 99.1 $ 383.3 Work Group 95.8 9.2 105.0 107.7 10.1 117.8 Other 12.9 1.4 14.3 64.8 23.2 88.0 Total Revenue $ 311.8 $ 113.4 $ 425.2 $ 456.7 $ 132.4 $ 589.1 Year-To-Date Ended June 29, 2024 Year-To-Date Ended July 1, 2023 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 399.3 $ 196.4 $ 595.7 $ 575.2 $ 194.0 $ 769.2 Work Group 177.1 18.0 195.1 211.0 21.3 232.3 Other 23.9 5.4 29.3 143.4 43.6 187.0 Total Revenue $ 600.3 $ 219.8 $ 820.1 $ 929.6 $ 258.9 $ 1,188.5 The Company has agreements to license symbolic intellectual property with minimum guarantees or fixed consideration. The Company was due $39.7 million of remaining fixed transaction price under its license agreements as of June 29, 2024, which it expects to recognize per the terms of its contracts over the course of time through December 2028. 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) June 29, December 30, July 1, Product returns reserve $ 8.4 $ 13.1 $ 12.2 Customer markdowns reserve 0.4 5.1 4.6 Other sales incentives reserve 2.9 4.2 3.1 Customer rebates liability 8.4 14.7 13.3 Customer advances liability 6.1 6.8 5.7 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) | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consists of the following obligations: (In millions) June 29, December 30, July 1, Term Facility, due October 21, 2026 $ 45.0 $ 71.7 $ 185.0 Senior Notes, 4.000% interest, due August 15, 2029 550.0 550.0 550.0 Borrowings under revolving credit agreements 225.0 305.0 385.0 Unamortized deferred financing costs (5.3) (5.9) (6.5) Total debt $ 814.7 $ 920.8 $ 1,113.5 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 June 29, 2024 and are recorded as current maturities of long-term debt on the consolidated condensed balance sheets. In addition, the Company made payments towards the Term Facility in accordance with disposition proceeds language contained in the Credit Agreement. 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 $7.0 million, $6.6 million and $6.5 million as of June 29, 2024, December 30, 2023 and July 1, 2023, 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 June 29, 2024, the Term Facility and the Revolving Facility had a weighted-average interest rate of 6.35%. 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 June 29, 2024, the Company was in compliance with all covenants and performance ratios under the Senior Credit Facilities. On December 21, 2023, the Company entered into the fifth amendment (the "Fifth Amendment") to its Credit Agreement, dated as of July 31, 2012. The Fifth Amendment provides the Company with additional allowable disposition capacity in fiscal 2023 and fiscal 2024 to support the Company's transformation. 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 $1.0 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 June 29, 2024, December 30, 2023 and July 1, 2023. The Company included in interest expense the amortization of deferred financing costs of $0.5 million and $1.1 million for the quarter and year-to-date ended June 29, 2024, respectively. The Company included in interest expense the amortization of deferred financing costs of $0.5 million and $1.0 million for the quarter and year-to-date ended July 1, 2023, respectively. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The following is a summary of the Company’s lease cost. Quarter Ended Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Operating lease cost $ 8.0 $ 10.0 $ 16.9 $ 20.5 Variable lease cost 3.0 3.7 5.9 7.0 Short-term lease cost 0.6 1.2 1.1 1.9 Sublease income (1.5) (1.7) (2.8) (3.2) Total lease cost $ 10.1 $ 13.2 $ 21.1 $ 26.2 The following is a summary of the Company’s supplemental cash flow information related to leases. Quarter Ended Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Cash paid for operating lease liabilities $ 13.3 $ 11.2 $ 26.3 $ 22.6 Operating lease assets obtained in exchange for lease liabilities 0.3 1.4 4.9 5.4 |
Financial Instruments and Risk
Financial Instruments and Risk Management (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 503 days, 531 days, and 524 days as of June 29, 2024, December 30, 2023 and July 1, 2023, 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) June 29, December 30, July 1, Foreign exchange hedge contracts $ 257.9 $ 269.0 $ 295.0 Interest rate swap 41.1 75.3 119.9 The recorded fair values of the Company’s derivative instruments are as follows: (In millions) June 29, December 30, July 1, Financial assets: Foreign exchange hedge contracts $ 3.2 $ — $ 1.6 Interest rate swap 0.8 1.8 3.9 Financial liabilities: Foreign exchange hedge contracts $ (1.0) $ (5.1) $ (4.7) Foreign exchange hedge contract financial assets are recorded to prepaid expenses and other current assets and financial liabilities are recorded to other accrued liabilities on the consolidated balance sheets. Interest rate swap financial assets are recorded to other assets and financial liabilities are recorded to other liabilities on the consolidated condensed balance sheets. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company recognized compensation expense of $5.7 million and $9.8 million, and related income tax benefits of $1.1 million and $1.9 million, for grants under its stock-based compensation plans for the quarter and year-to-date ended June 29, 2024, respectively. The Company recognized compensation expense of $3.3 million and $7.8 million, and related income tax benefits of $0.7 million and $1.5 million, for grants under its stock-based compensation plans for the quarter and year-to-date ended July 1, 2023, 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: Year-To-Date Ended June 29, 2024 Year-To-Date Ended July 1, 2023 (In millions) Company Shares Issued Weighted-Average Grant Date Fair Value Company Shares Issued Weighted-Average Grant Date Fair Value Restricted Awards 1,865,330 $ 8.43 1,253,579 $ 15.18 Performance Awards 1,233,484 $ 8.56 659,162 $ 15.20 |
Retirement Plans (Notes)
Retirement Plans (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Service cost pertaining to benefits earned during the period $ 0.7 $ 0.8 $ 1.4 $ 1.6 Interest cost on projected benefit obligations 4.5 4.5 8.9 8.9 Expected return on pension assets (4.9) (4.7) (9.8) (9.3) Net amortization loss (0.4) (0.2) (0.8) (0.4) Net pension expense (income) $ (0.1) $ 0.4 $ (0.3) $ 0.8 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) | 6 Months Ended |
Jun. 29, 2024 | |
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 quarter and year-to-date ended June 29, 2024 were 13.1% and 47.8%, respectively. The Company’s effective tax rates for the quarter and year-to-date ended July 1, 2023 were 19.8% and 27.8%, respectively. The decrease in the effective tax rate between 2024 and 2023 for the quarter-to-date period is due to an increase in discrete tax benefits recognized in the current year, as well as lower pretax income, which increases the impact of the discrete benefits on the effective tax rate. The increase in the effective tax rate between 2024 and 2023 for the year-to-date period is driven by lower pretax income in the current year, which increases the impact of the discrete tax expenses on the effective tax rate. 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 2020 in the majority of tax jurisdictions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 and July 1, 2023 is as follows: (In millions) Foreign Derivatives Pension Total Balance at April 1, 2023 $ (130.3) $ (4.5) $ (1.8) $ (136.6) Other comprehensive income (loss) before reclassifications (1) 5.3 (2.0) — 3.3 Amounts reclassified from accumulated other comprehensive loss — (2.8) (2) (0.2) (3) (3.0) Income tax expense — 0.8 — 0.8 Net reclassifications — (2.0) (0.2) (2.2) Net current-period other comprehensive income (loss) (1) 5.3 (4.0) (0.2) 1.1 Balance at July 1, 2023 $ (125.0) $ (8.5) $ (2.0) $ (135.5) Balance at March 30, 2024 $ (124.2) $ (14.6) $ (9.1) $ (147.9) Other comprehensive income (loss) before reclassifications (1) (2.8) 1.3 — (1.5) Amounts reclassified from accumulated other comprehensive loss — (0.2) (2) (0.4) (3) (0.6) Income tax expense — 0.1 — 0.1 Net reclassifications — (0.1) (0.4) (0.5) Net current-period other comprehensive income (loss) (1) (2.8) 1.2 (0.4) (2.0) Balance at June 29, 2024 $ (127.0) $ (13.4) $ (9.5) $ (149.9) (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. The change in accumulated other comprehensive income (loss) during the year-to-date periods ended June 29, 2024 and July 1, 2023 is as follows: (In millions) Foreign Derivatives Pension Total Balance at December 31, 2022 $ (133.1) $ 1.9 $ (1.7) $ (132.9) Other comprehensive income (loss) before reclassifications (1) 3.9 (2.9) — 1.0 Amounts reclassified from accumulated other comprehensive income (loss) 4.2 (10.1) (2) (0.4) (3) (6.3) Income tax expense (benefit) — 2.6 0.1 2.7 Net reclassifications 4.2 (7.5) (0.3) (3.6) Net current-period other comprehensive income (loss) (1) 8.1 (10.4) (0.3) (2.6) Balance at July 1, 2023 $ (125.0) $ (8.5) $ (2.0) $ (135.5) Balance at December 30, 2023 $ (116.3) $ (17.1) $ (8.8) $ (142.2) Other comprehensive income (loss) before reclassifications (1) (10.9) 5.9 — (5.0) Amounts reclassified from accumulated other comprehensive income (loss) 0.2 (2.9) (2) (0.8) (3) (3.5) Income tax expense (benefit) — 0.7 0.1 0.8 Net reclassifications 0.2 (2.2) (0.7) (2.7) Net current-period other comprehensive income (loss) (1) (10.7) 3.7 (0.7) (7.7) Balance at June 29, 2024 $ (127.0) $ (13.4) $ (9.5) $ (149.9) (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) | 6 Months Ended |
Jun. 29, 2024 | |
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 2023 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) June 29, December 30, July 1, Financial assets: Derivatives $ 4.0 $ 1.8 $ 5.5 Financial liabilities: Derivatives $ (1.0) $ (5.1) $ (4.7) 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) June 29, December 30, July 1, Carrying value $ 814.7 $ 920.8 $ 1,113.5 Fair value 732.0 813.3 1,020.1 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) | 6 Months Ended |
Jun. 29, 2024 | |
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. 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. The owner of another former landfill filed notice threatening suit and sent a demand letter to the Company seeking recovery for damages allegedly caused by the Company’s disposal of tannery waste containing PFAS (this notice, the former landfill and gravel mining 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, was pending in Michigan state court but has been administratively stayed by the Court. For certain of the Litigation Matters described above, and as a result of developments during the second quarter of 2024, the Company increased its accrual by $8.4 million. The Company made no payments in connection with the Litigation Matters described above during the first two quarters of 2024. As of June 29, 2024, the Company had recorded liabilities of $11.1 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 2024 and 2023 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: Year-To-Date Ended (In millions) June 29, July 1, Remediation liability at beginning of the year $ 57.9 $ 74.1 Changes in estimate 3.8 (21.0) Amounts paid (15.5) (6.7) Remediation liability at the end of the quarter $ 46.2 $ 46.4 The reserve balance as of June 29, 2024 includes $17.8 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 $28.4 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 June 29, 2024 are as follows: (In millions) 2024 2025 2026 2027 2028 Thereafter Minimum royalties $ 0.5 $ — $ — $ — $ — $ — Minimum advertising — 3.0 3.1 3.2 3.3 — Minimum royalties are based on both fixed obligations and assumptions regarding the Consumer Price Index. Royalty obligations in excess of minimum requirements are based upon future sales levels. In accordance with these agreements, the Company incurred royalty expense of $0.3 million and $0.6 million for the quarter and year-to-date ended June 29, 2024, respectively. For the quarter and year-to-date ended July 1, 2023, the Company incurred royalty expense in accordance with these agreements of $0.4 million and $0.7 million, respectively. The terms of certain license agreements also require the Company to make advertising expenditures based on the level of sales of the licensed products. In accordance with these agreements, the Company incurred advertising expense of $1.2 million and $2.3 million for the quarter and year-to-date ended June 29, 2024, respectively. For the quarter and year-to-date ended July 1, 2023, the Company incurred advertising expense in accordance with these agreements of $2.4 million and $3.7 million, respectively. |
Business Segments (Notes)
Business Segments (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company’s portfolio of brands is organized into the following reportable segments. • Active Group, consisting of Merrell ® footwear and apparel, Saucony ® footwear and apparel, Sweaty Betty ® activewear, and Chaco ® footwear; and • Work Group, consisting of Wolverine ® footwear and apparel, Cat ® footwear, Bates ® uniform footwear, Harley-Davidson ® footwear and HYTEST ® safety footwear; The Company's operating segments are the Active Group, Work 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 ® , Keds ® , Merrell ® , Hush Puppies ® and Cat ® are included with the applicable brand. The Company also reports “Other” and “Corporate” categories. The Other category consists of Sperry ® footwear, Keds ® footwear, Hush Puppies ® footwear and apparel, 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 gains on the sale of businesses and trademarks, unallocated corporate expenses, such as corporate employee costs, corporate facility costs, reorganization activities, impairment of long-lived assets 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 Year-to-Date Ended (In millions) June 29, July 1, June 29, July 1, Revenue: Active Group $ 305.9 $ 383.3 $ 595.7 $ 769.2 Work Group 105.0 117.8 195.1 232.3 Other 14.3 88.0 29.3 187.0 Total $ 425.2 $ 589.1 $ 820.1 $ 1,188.5 Segment operating profit (loss): Active Group $ 42.1 $ 39.8 $ 78.3 $ 91.9 Work Group 14.6 14.8 27.3 30.3 Other 8.2 13.5 12.4 19.7 Corporate (35.8) (22.0) (92.0) (50.5) Operating profit 29.1 46.1 26.0 91.4 Interest expense, net 11.9 16.1 23.9 31.9 Other expense (income), net (0.8) (0.4) (1.6) 0.8 Earnings before income taxes $ 18.0 $ 30.4 $ 3.7 $ 58.7 (In millions) June 29, December 30, July 1, Total assets: Active Group $ 1,072.7 $ 1,183.9 $ 1,315.3 Work Group 282.8 288.4 319.4 Other 98.5 250.8 471.2 Corporate 342.3 339.7 251.4 Total $ 1,796.3 $ 2,062.8 $ 2,357.3 Goodwill: Active Group $ 316.5 $ 317.7 $ 317.4 Work Group 60.2 60.3 60.3 Other 49.1 49.1 92.0 Total $ 425.8 $ 427.1 $ 469.7 |
Investments, Equity Method and
Investments, Equity Method and Joint Ventures | 6 Months Ended |
Jun. 29, 2024 | |
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 had equity interests in Merrell ® and Saucony ® joint ventures that sourced Merrell ® and Saucony ® footwear and apparel products in China. Based upon the criteria set forth in FASB ASC 810, Consolidation , the Company had determined that two of the joint ventures were variable interest entities (VIEs) of which the Company was the primary beneficiary and, as a result, the Company consolidated these VIEs. The Merrell ® and Saucony ® joint ventures were divested effective January 1, 2024. The following is a summary of these VIEs’ assets and liabilities included in the Company’s consolidated condensed balance sheets. (In millions) December 30, July 1, Cash $ — $ 7.4 Accounts receivable — 7.2 Inventory — 31.8 Other current assets — 2.9 Noncurrent assets — 0.9 Assets held for sale 51.6 — Total assets $ 51.6 $ 50.2 Current liabilities $ — $ 10.1 Noncurrent liabilities — 0.1 Liabilities held for sale 15.4 — Total liabilities $ 15.4 $ 10.2 Nonconsolidated VIEs The Company also had equity interests in two Merrell ® and Saucony ® joint ventures that marketed the Company’s Merrell ® and Saucony ® footwear and apparel products in China that were VIEs that are not consolidated as the Company did not have the power to direct the most significant activities that impact the VIEs' economic performance. The following is a summary of carrying amounts of assets included in the Company’s consolidated condensed balance sheets as of December 30, 2023 and July 1, 2023, respectively, related to VIEs for which the Company was not the primary beneficiary. The following is a summary of the carrying amounts of assets included in the Company’s Consolidated Condensed Balance Sheets. (In millions) December 30, July 1, Equity method investments (1) $ — $ 7.5 (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 entered into transactions with related party equity affiliates. Related party transactions consist of the sale of goods, made at arm’s length, and other arrangements. For the quarter and year-to-date ended July 1, 2023, the Company recognized net sales to equity affiliates totaling $13.6 million and $24.2 million, respectively. The Company did not recognize any sales to equity affiliates for the quarter and year-to-date ended June 29, 2024. The following table summarizes related party transactions included in the consolidated condensed balance sheets. (In millions) December 30, July 1, Accounts receivable due from related parties $ 15.4 $ 7.2 Long term liabilities due to related parties 1.4 — |
Divestitures (Notes)
Divestitures (Notes) | 6 Months Ended |
Jun. 29, 2024 | |
Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | DIVESTITURES AND ASSETS AND LIABILITIES HELD FOR SALE Divestiture of Sperry ® Business On January 10, 2024, the Company entered into a Purchase Agreement with ABG Intermediate Holdings 2 LLC, an affiliate of Authentic Brands Group LLC. (the "ABG Buyer"), pursuant to which the ABG Buyer agreed to purchase all of the outstanding equity of certain subsidiaries of the Company that own or hold for use intellectual property used by the Company exclusively in the footwear, apparel, and accessories business conducted by the Company under the Sperry ® brand. In addition, on January 10, 2024 the Company entered into an Inventory Purchase Agreement with Aldo U.S. Inc., an affiliate of the Aldo Group (the "Aldo Buyer"), pursuant to which the Aldo Buyer agreed to purchase certain inventory and other assets of the Sperry ® business, and to assume certain contracts of the Sperry ® business, including Sperry ® retail store leases. The sale was effective January 10, 2024, in accordance with the terms and conditions of the Purchase Agreement. The aggregate purchase price under these two purchase agreements was $97.4 million in cash. As of December 30, 2023, the Company recognized an impairment charge of $95.0 million which included $6.0 million for disposal costs. In determining the amount of the impairment loss for the assets of this transaction during the fourth quarter of 2023, the Company included $1.0 million of accumulated foreign currency translation gains, which were classified within accumulated other comprehensive income (“AOCI”). The Company determined that the divestiture of the Sperry ® business did 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. Divestiture of Merrell and Saucony China Joint Venture Entities On December 17, 2023, the Company and Xtep entered into a Purchase Agreement pursuant to which Xtep agreed to purchase the Company’s equity interest in the Merrell and Saucony joint venture entities that sourced and marketed Merrell ® and Saucony ® footwear and apparel products in China (Saucony Brand Operations Ltd., Saucony Distribution Operations Ltd., Merrell Brand Operations Ltd. and Merrell Distribution Operations Ltd.), transitioning the business from a joint venture model to a license and distribution rights model under which Xtep will exclusively carry out the development, marketing and distribution of footwear, apparel and accessories for the Saucony and Merrell brands in China. The sale was effective January 1, 2024, in accordance with the terms and conditions of the Purchase Agreement and the purchase price was $22.0 million in cash. As of December 30, 2023, the Company recognized an impairment charge of $1.8 million. In determining the amount of the impairment loss for the assets of this transaction during the fourth quarter of 2023, the Company included $0.8 million of accumulated foreign currency translation losses, which were classified within AOCI. Divestiture of Asia-based Leathers Business On December 14, 2023, the Company completed the sale of its Asia-based performance leathers business to Interhides Public Company Limited, a current materials vendor of the Company. The Company received $8.2 million in cash for the sale. The assets sold, which were included in the Other segment category, consist of $8.2 million in inventory. Sale-Leaseback of Louisville Distribution Facility On December 28, 2023, the Company completed a sale and leaseback transaction with an independent third party for the land, building and related fixed assets of the Company’s distribution center located in Louisville, Kentucky for a sale price of $23.5 million. The distribution center was leased back to the Company via a two-year lease agreement, which includes a one year renewal option. The transaction qualifies for sales recognition under the sale leaseback accounting requirements and the Company recorded a gain of $12.6 million in the fourth quarter of 2023. Divestiture of Hush Puppies intellectual property in China, Hong Kong, and Macau On September 1, 2023, the Company entered into an asset purchase agreement to sell the Hush Puppies ® trademarks, patents, copyrights and domains in China, Hong Kong and Macau to its current sublicensee, Beijing Jiaman Dress Co., Ltd. for cash of $58.8 million and recognized a gain on sale of $55.8 million in the third quarter of 2023. The gain on sale is net of transaction related fees of $3.0 million. The transaction closed on September 14, 2023. The Company will continue to own the Hush Puppies ® brand throughout the rest of the world. Divestiture of U.S. Wolverine Leathers Business On August 23, 2023, the Company completed the sale of its U.S. Wolverine Leathers business to its long-time customer, New Balance. The Company received $4.0 million in cash for the sale and recognized a gain on sale of $1.9 million. The assets sold, which were included in the Other segment category, consist of $2.1 million in inventory. 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 the first quarter of 2023 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 The Sperry ® business and the Merrell ® and Saucony ® China joint venture entities met the criteria to be classified as held for sale as of December 30, 2023, and therefore the Company reclassified the related assets and liabilities as held for sale on the Consolidated Balance Sheets as of December 30, 2023. The performance leathers business met the criteria to be classified as held for sale as of July 1, 2023, and therefore the Company reclassified the related assets and liabilities as held for sale on the Consolidated Balance Sheets as of July 1, 2023. 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: (In millions) December 30, 2023 July 1, Cash and cash equivalents $ 5.6 $ 3.6 Accounts receivables, net 15.4 4.7 Inventories 83.3 10.8 Other current assets 2.9 — Property, plant and equipment, net 3.8 — Lease right-of-use assets 7.6 — Goodwill 43.0 — Indefinite-lived intangibles 67.0 — Amortizable intangibles, net 21.0 — Other assets 7.8 — Impairment of carrying value (96.8) — Total assets held for sale $ 160.6 $ 19.1 Accounts payable $ 4.8 $ 3.4 Lease liabilities 9.0 — Accrued liabilities 9.0 0.7 Other liabilities 1.4 — Total liabilities held for sale $ 24.2 $ 4.1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net earnings (loss) attributable to Wolverine World Wide, Inc. | $ 14.2 | $ 24 | $ (0.3) | $ 43 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 29, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Amy M. Klimek [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 3, 2024, Amy M. Klimek, Executive Vice President, Global Human Resources, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 10,214 shares of Wolverine World Wide, Inc. common stock issuable upon exercise of vested stock options between August 30, 2024 and May 1, 2025, subject to certain conditions. |
Name | Amy M. Klimek |
Title | Executive Vice President, Global Human Resources |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 3, 2024 |
Arrangement Duration | 244 days |
Aggregate Available | 10,214 |
Christopher E. Hufnagel [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 6, 2024, Christopher E. Hufnagel, President and Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 49,083 shares of Wolverine World Wide, Inc. common stock issuable upon exercise of vested stock options between September 9, 2024 and May 30, 2025, subject to certain conditions. |
Name | Christopher E. Hufnagel |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 6, 2024 |
Arrangement Duration | 263 days |
Aggregate Available | 49,083 |
David A. Latchana [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 7, 2024, David A. Latchana, Chief Legal Officer and Corporate Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 11,713 shares of Wolverine World Wide, Inc. common stock issuable upon exercise of vested stock options between September 6, 2024 and May 30, 2025, subject to certain conditions. |
Name | David A. Latchana |
Title | Chief Legal Officer and Corporate Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 7, 2024 |
Arrangement Duration | 266 days |
Aggregate Available | 11,713 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
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 ® , 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 through 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. Effective February 4, 2023, the Company completed the sale of the Keds ® business. See Note 18 for further discussion. In the third quarter of fiscal 2023, the Company entered into a multi-year licensing agreement of the Hush Puppies ® brand in the United States and Canada and completed the sale of the Hush Puppies ® trademarks, patents, copyrights, and domains in China, Hong Kong, and Macau. The Company will continue to own the Hush Puppies ® brand throughout the rest of the world. See Note 18 for further discussion. Effective August 23, 2023, the Company completed the sale of the U.S. Leathers business and effective December 28, 2023, the Company completed the sale of the Asia-based Leathers business. See Note 18 for further discussion. Effective January 1, 2024, the Company completed the sale of the Company’s equity interest joint venture entities that sourced and marketed Merrell ® and Saucony ® footwear and apparel products in China. See Note 18 for further discussion. Effective January 10, 2024, the Company completed the sale of the Sperry ® business. See Note 18 for further discussion. Effective May 4, 2024, the Company entered into global multi-year licensing agreements of the Merrell ® and Saucony ® kids footwear and Merrell ® apparel and accessories. |
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 2023 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 2024 and 2023 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 fourth fiscal 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 health crises. |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. Each impairment test is based on a comparison of the carrying amount of the asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group. Assets are considered impaired if the carrying amount exceeds fair value. The impairment amount recognized is the amount by which the carrying amount of the assets exceeds their fair value. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Details of Impairment of Long-Lived Assets Held and Used by Asset | The following table provides details related to asset impairment charges recorded: Quarter Ended Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Lease right-of-use assets impairment $ 3.0 $ 12.1 $ 5.9 $ 12.1 Property, plant and equipment impairment 0.2 3.5 3.4 3.5 Total impairment $ 3.2 $ 15.6 $ 9.3 $ 15.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 Year-To-Date Ended (In millions, except per share data) June 29, July 1, June 29, July 1, Numerator: Net earnings (loss) attributable to Wolverine World Wide, Inc. $ 14.2 $ 24.0 $ (0.3) $ 43.0 Adjustment for earnings allocated to non-vested restricted common stock (0.5) (0.5) (0.6) (1.0) Net earnings (loss) used in calculating basic and diluted earnings per share $ 13.7 $ 23.5 $ (0.9) $ 42.0 Denominator: Weighted average shares outstanding 80.0 79.5 79.9 79.3 Effect of dilutive stock options — — — — Shares used in calculating diluted earnings per share 80.0 79.5 79.9 79.3 Net earnings (loss) per share: Basic $ 0.17 $ 0.30 $ (0.01) $ 0.53 Diluted $ 0.17 $ 0.30 $ (0.01) $ 0.53 |
Goodwill and Indefinite-Lived_2
Goodwill and Indefinite-Lived Intangibles (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: Year-To-Date Ended (In millions) June 29, July 1, Goodwill balance at beginning of the year $ 427.1 $ 485.0 Sale of business (see Note 18) — (20.4) Foreign currency translation effects (1.3) 5.1 Goodwill balance at end of the quarter $ 425.8 $ 469.7 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Revenue From Contracts With Customers [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Quarter Ended June 29, 2024 Quarter Ended July 1, 2023 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 203.1 $ 102.8 $ 305.9 $ 284.2 $ 99.1 $ 383.3 Work Group 95.8 9.2 105.0 107.7 10.1 117.8 Other 12.9 1.4 14.3 64.8 23.2 88.0 Total Revenue $ 311.8 $ 113.4 $ 425.2 $ 456.7 $ 132.4 $ 589.1 Year-To-Date Ended June 29, 2024 Year-To-Date Ended July 1, 2023 (In millions) Wholesale Direct-to-Consumer Total Wholesale Direct-to-Consumer Total Active Group $ 399.3 $ 196.4 $ 595.7 $ 575.2 $ 194.0 $ 769.2 Work Group 177.1 18.0 195.1 211.0 21.3 232.3 Other 23.9 5.4 29.3 143.4 43.6 187.0 Total Revenue $ 600.3 $ 219.8 $ 820.1 $ 929.6 $ 258.9 $ 1,188.5 |
Contract with Customer, Asset and Liability [Table Text Block] | The Company’s contract balances are as follows: (In millions) June 29, December 30, July 1, Product returns reserve $ 8.4 $ 13.1 $ 12.2 Customer markdowns reserve 0.4 5.1 4.6 Other sales incentives reserve 2.9 4.2 3.1 Customer rebates liability 8.4 14.7 13.3 Customer advances liability 6.1 6.8 5.7 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Total debt consists of the following obligations: (In millions) June 29, December 30, July 1, Term Facility, due October 21, 2026 $ 45.0 $ 71.7 $ 185.0 Senior Notes, 4.000% interest, due August 15, 2029 550.0 550.0 550.0 Borrowings under revolving credit agreements 225.0 305.0 385.0 Unamortized deferred financing costs (5.3) (5.9) (6.5) Total debt $ 814.7 $ 920.8 $ 1,113.5 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following is a summary of the Company’s lease cost. Quarter Ended Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Operating lease cost $ 8.0 $ 10.0 $ 16.9 $ 20.5 Variable lease cost 3.0 3.7 5.9 7.0 Short-term lease cost 0.6 1.2 1.1 1.9 Sublease income (1.5) (1.7) (2.8) (3.2) Total lease cost $ 10.1 $ 13.2 $ 21.1 $ 26.2 |
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 Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Cash paid for operating lease liabilities $ 13.3 $ 11.2 $ 26.3 $ 22.6 Operating lease assets obtained in exchange for lease liabilities 0.3 1.4 4.9 5.4 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, December 30, July 1, Foreign exchange hedge contracts $ 257.9 $ 269.0 $ 295.0 Interest rate swap 41.1 75.3 119.9 |
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) June 29, December 30, July 1, Financial assets: Foreign exchange hedge contracts $ 3.2 $ — $ 1.6 Interest rate swap 0.8 1.8 3.9 Financial liabilities: Foreign exchange hedge contracts $ (1.0) $ (5.1) $ (4.7) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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: Year-To-Date Ended June 29, 2024 Year-To-Date Ended July 1, 2023 (In millions) Company Shares Issued Weighted-Average Grant Date Fair Value Company Shares Issued Weighted-Average Grant Date Fair Value Restricted Awards 1,865,330 $ 8.43 1,253,579 $ 15.18 Performance Awards 1,233,484 $ 8.56 659,162 $ 15.20 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 Year-To-Date Ended (In millions) June 29, July 1, June 29, July 1, Service cost pertaining to benefits earned during the period $ 0.7 $ 0.8 $ 1.4 $ 1.6 Interest cost on projected benefit obligations 4.5 4.5 8.9 8.9 Expected return on pension assets (4.9) (4.7) (9.8) (9.3) Net amortization loss (0.4) (0.2) (0.8) (0.4) Net pension expense (income) $ (0.1) $ 0.4 $ (0.3) $ 0.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The change in accumulated other comprehensive income (loss) during the quarters ended June 29, 2024 and July 1, 2023 is as follows: (In millions) Foreign Derivatives Pension Total Balance at April 1, 2023 $ (130.3) $ (4.5) $ (1.8) $ (136.6) Other comprehensive income (loss) before reclassifications (1) 5.3 (2.0) — 3.3 Amounts reclassified from accumulated other comprehensive loss — (2.8) (2) (0.2) (3) (3.0) Income tax expense — 0.8 — 0.8 Net reclassifications — (2.0) (0.2) (2.2) Net current-period other comprehensive income (loss) (1) 5.3 (4.0) (0.2) 1.1 Balance at July 1, 2023 $ (125.0) $ (8.5) $ (2.0) $ (135.5) Balance at March 30, 2024 $ (124.2) $ (14.6) $ (9.1) $ (147.9) Other comprehensive income (loss) before reclassifications (1) (2.8) 1.3 — (1.5) Amounts reclassified from accumulated other comprehensive loss — (0.2) (2) (0.4) (3) (0.6) Income tax expense — 0.1 — 0.1 Net reclassifications — (0.1) (0.4) (0.5) Net current-period other comprehensive income (loss) (1) (2.8) 1.2 (0.4) (2.0) Balance at June 29, 2024 $ (127.0) $ (13.4) $ (9.5) $ (149.9) (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. The change in accumulated other comprehensive income (loss) during the year-to-date periods ended June 29, 2024 and July 1, 2023 is as follows: (In millions) Foreign Derivatives Pension Total Balance at December 31, 2022 $ (133.1) $ 1.9 $ (1.7) $ (132.9) Other comprehensive income (loss) before reclassifications (1) 3.9 (2.9) — 1.0 Amounts reclassified from accumulated other comprehensive income (loss) 4.2 (10.1) (2) (0.4) (3) (6.3) Income tax expense (benefit) — 2.6 0.1 2.7 Net reclassifications 4.2 (7.5) (0.3) (3.6) Net current-period other comprehensive income (loss) (1) 8.1 (10.4) (0.3) (2.6) Balance at July 1, 2023 $ (125.0) $ (8.5) $ (2.0) $ (135.5) Balance at December 30, 2023 $ (116.3) $ (17.1) $ (8.8) $ (142.2) Other comprehensive income (loss) before reclassifications (1) (10.9) 5.9 — (5.0) Amounts reclassified from accumulated other comprehensive income (loss) 0.2 (2.9) (2) (0.8) (3) (3.5) Income tax expense (benefit) — 0.7 0.1 0.8 Net reclassifications 0.2 (2.2) (0.7) (2.7) Net current-period other comprehensive income (loss) (1) (10.7) 3.7 (0.7) (7.7) Balance at June 29, 2024 $ (127.0) $ (13.4) $ (9.5) $ (149.9) (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) | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, December 30, July 1, Financial assets: Derivatives $ 4.0 $ 1.8 $ 5.5 Financial liabilities: Derivatives $ (1.0) $ (5.1) $ (4.7) |
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) June 29, December 30, July 1, Carrying value $ 814.7 $ 920.8 $ 1,113.5 Fair value 732.0 813.3 1,020.1 |
Litigation and Contingencies (T
Litigation and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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: Year-To-Date Ended (In millions) June 29, July 1, Remediation liability at beginning of the year $ 57.9 $ 74.1 Changes in estimate 3.8 (21.0) Amounts paid (15.5) (6.7) Remediation liability at the end of the quarter $ 46.2 $ 46.4 |
Minimum Royalty and Advertising Obligations Due Under Terms of Certain Licenses Held by Company | These minimum future obligations for the fiscal periods subsequent to June 29, 2024 are as follows: (In millions) 2024 2025 2026 2027 2028 Thereafter Minimum royalties $ 0.5 $ — $ — $ — $ — $ — Minimum advertising — 3.0 3.1 3.2 3.3 — |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Revenue and Operating Profit by Segment | Quarter Ended Year-to-Date Ended (In millions) June 29, July 1, June 29, July 1, Revenue: Active Group $ 305.9 $ 383.3 $ 595.7 $ 769.2 Work Group 105.0 117.8 195.1 232.3 Other 14.3 88.0 29.3 187.0 Total $ 425.2 $ 589.1 $ 820.1 $ 1,188.5 Segment operating profit (loss): Active Group $ 42.1 $ 39.8 $ 78.3 $ 91.9 Work Group 14.6 14.8 27.3 30.3 Other 8.2 13.5 12.4 19.7 Corporate (35.8) (22.0) (92.0) (50.5) Operating profit 29.1 46.1 26.0 91.4 Interest expense, net 11.9 16.1 23.9 31.9 Other expense (income), net (0.8) (0.4) (1.6) 0.8 Earnings before income taxes $ 18.0 $ 30.4 $ 3.7 $ 58.7 |
Assets and Goodwill by Segment | (In millions) June 29, December 30, July 1, Total assets: Active Group $ 1,072.7 $ 1,183.9 $ 1,315.3 Work Group 282.8 288.4 319.4 Other 98.5 250.8 471.2 Corporate 342.3 339.7 251.4 Total $ 1,796.3 $ 2,062.8 $ 2,357.3 Goodwill: Active Group $ 316.5 $ 317.7 $ 317.4 Work Group 60.2 60.3 60.3 Other 49.1 49.1 92.0 Total $ 425.8 $ 427.1 $ 469.7 |
Investments, Equity Method an_2
Investments, Equity Method and Joint Ventures (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | The following is a summary of these VIEs’ assets and liabilities included in the Company’s consolidated condensed balance sheets. (In millions) December 30, July 1, Cash $ — $ 7.4 Accounts receivable — 7.2 Inventory — 31.8 Other current assets — 2.9 Noncurrent assets — 0.9 Assets held for sale 51.6 — Total assets $ 51.6 $ 50.2 Current liabilities $ — $ 10.1 Noncurrent liabilities — 0.1 Liabilities held for sale 15.4 — Total liabilities $ 15.4 $ 10.2 |
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) December 30, July 1, Equity method investments (1) $ — $ 7.5 |
Schedule of Related Party Transactions | The following table summarizes related party transactions included in the consolidated condensed balance sheets. (In millions) December 30, July 1, Accounts receivable due from related parties $ 15.4 $ 7.2 Long term liabilities due to related parties 1.4 — |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Divestitures [Abstract] | |
Schedule of gain loss on sale of business | The following table summarizes the net gain recognized in the first quarter of 2023 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: (In millions) December 30, 2023 July 1, Cash and cash equivalents $ 5.6 $ 3.6 Accounts receivables, net 15.4 4.7 Inventories 83.3 10.8 Other current assets 2.9 — Property, plant and equipment, net 3.8 — Lease right-of-use assets 7.6 — Goodwill 43.0 — Indefinite-lived intangibles 67.0 — Amortizable intangibles, net 21.0 — Other assets 7.8 — Impairment of carrying value (96.8) — Total assets held for sale $ 160.6 $ 19.1 Accounts payable $ 4.8 $ 3.4 Lease liabilities 9.0 — Accrued liabilities 9.0 0.7 Other liabilities 1.4 — Total liabilities held for sale $ 24.2 $ 4.1 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Accounting Policies [Line Items] | ||||
Impairment, Long-Lived Asset, Held-for-Use | $ 3.2 | $ 15.6 | $ 9.3 | $ 15.6 |
Operating Lease Right of Use Asset [Member] | ||||
Accounting Policies [Line Items] | ||||
Impairment, Long-Lived Asset, Held-for-Use | 3 | 12.1 | 5.9 | 12.1 |
Property Plant and Equipment [Member] | ||||
Accounting Policies [Line Items] | ||||
Impairment, Long-Lived Asset, Held-for-Use | $ 0.2 | $ 3.5 | $ 3.4 | $ 3.5 |
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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,574,879 | 1,991,262 | 1,672,689 | 2,080,931 |
Numerator: | ||||
Net earnings (loss) attributable to Wolverine World Wide, Inc. | $ 14.2 | $ 24 | $ (0.3) | $ 43 |
Adjustment for earnings allocated to non-vested restricted common stock | (0.5) | (0.5) | (0.6) | (1) |
Net earnings (loss) used in calculating basic and diluted earnings per share | $ 13.7 | $ 23.5 | $ (0.9) | $ 42 |
Denominator: | ||||
Weighted average shares outstanding | 80,000,000 | 79,500,000 | 79,900,000 | 79,300,000 |
Effect of dilutive stock options | 0 | 0 | 0 | 0 |
Shares used in calculating diluted earnings per share | 80,000,000 | 79,500,000 | 79,900,000 | 79,300,000 |
Net Earnings Per Share: [Abstract] | ||||
Basic | $ 0.17 | $ 0.30 | $ (0.01) | $ 0.53 |
Diluted | $ 0.17 | $ 0.30 | $ (0.01) | $ 0.53 |
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 | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 427.1 | $ 485 |
Goodwill, Written off Related to Sale of Business Unit | 0 | (20.4) |
Foreign currency translation effects | (1.3) | 5.1 |
Goodwill, Ending balance | $ 425.8 | $ 469.7 |
Goodwill and Indefinite-Lived_4
Goodwill and Indefinite-Lived Intangibles Additional Information (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | $ 173.4 | $ 174.1 | $ 279.2 | |
Goodwill | 425.8 | $ 427.1 | $ 469.7 | $ 485 |
Sweaty Betty [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 48.4 | |||
Indefinite-lived intangibles | 98.7 | |||
Fair Value Exceeding Carrying Value of Goodwill, Percent | 5% | |||
Goodwill | $ 52.6 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sale of accounts receivable, maximum amount under agreement | $ 125 | $ 125 | ||
Receivables Purchase Agreement Maturity Date | Dec. 05, 2025 | |||
Accounts receivable sold | $ 102.7 | $ 182.4 | 205 | $ 365.6 |
Receivables Purchase Agreement Cash Collections | 104.1 | 196.8 | 205.8 | 372.8 |
Receivables Purchase Agreement Uncollected | 93 | 135.5 | 93 | 135.5 |
Receivables Purchase Agreement Collateral | $ 53.6 | $ 68.5 | $ 53.6 | $ 68.5 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers Additional Information (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Revenue Recognition [Abstract] | |
Remaining Fixed Transaction Price | $ 39.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2028 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers Disaggrated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenue | $ 425.2 | $ 589.1 | $ 820.1 | $ 1,188.5 |
Active Group | ||||
Revenue | 305.9 | 383.3 | 595.7 | 769.2 |
Work Group | ||||
Revenue | 105 | 117.8 | 195.1 | 232.3 |
Other [Member] | ||||
Revenue | 14.3 | 88 | 29.3 | 187 |
Wholesale Channel [Member] | ||||
Revenue | 311.8 | 456.7 | 600.3 | 929.6 |
Wholesale Channel [Member] | Active Group | ||||
Revenue | 203.1 | 284.2 | 399.3 | 575.2 |
Wholesale Channel [Member] | Work Group | ||||
Revenue | 95.8 | 107.7 | 177.1 | 211 |
Wholesale Channel [Member] | Other [Member] | ||||
Revenue | 12.9 | 64.8 | 23.9 | 143.4 |
Consumer-Direct Channel [Member] | ||||
Revenue | 113.4 | 132.4 | 219.8 | 258.9 |
Consumer-Direct Channel [Member] | Active Group | ||||
Revenue | 102.8 | 99.1 | 196.4 | 194 |
Consumer-Direct Channel [Member] | Work Group | ||||
Revenue | 9.2 | 10.1 | 18 | 21.3 |
Consumer-Direct Channel [Member] | Other [Member] | ||||
Revenue | $ 1.4 | $ 23.2 | $ 5.4 | $ 43.6 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers Contract Balances (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Revenue from Contracts with Customer [Abstract] | |||
Product Returns Reserve | $ 8.4 | $ 13.1 | $ 12.2 |
Customer Markdowns Reserve | 0.4 | 5.1 | 4.6 |
Sales Incentives Reserve | 2.9 | 4.2 | 3.1 |
Customer Rebates Liability | 8.4 | 14.7 | 13.3 |
Customer Advances, Current | $ 6.1 | $ 6.8 | $ 5.7 |
Debt (Schedule of Borrowings) (
Debt (Schedule of Borrowings) (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreements | $ 225 | $ 305 | $ 385 |
Debt Issuance Costs, Noncurrent, Net | (5.3) | (5.9) | (6.5) |
Total debt | 814.7 | 920.8 | 1,113.5 |
Term Loan A [Member] | October Twenty One Two Thousand Twenty Six | |||
Debt Instrument [Line Items] | |||
Long-term debt | 45 | 71.7 | 185 |
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 | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Debt Instrument [Line Items] | |||||
Current maturities of long-term debt | $ 10 | $ 10 | $ 10 | $ 10 | $ 10 |
Amortization of deferred financing costs | 0.5 | 0.5 | 1.1 | 1 | |
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount debt instrument | 2,000 | $ 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 | $ 1,000 | |||
Outstanding letters of credit | 7 | 6.5 | 7 | 6.5 | 6.6 |
Swingline Subfacility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility amount | 100 | 100 | |||
Letter of Credit Subfacility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility amount | 50 | 50 | |||
Foreign Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility amount | 1 | 1 | |||
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 | 550 | 550 |
Interest rate | 4% | 4% | |||
October Twenty One Two Thousand Twenty Six | Term Loan A [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 6.35% | 6.35% | |||
Debt, Long-term and Short-term, Combined Amount | $ 45 | $ 185 | $ 45 | $ 185 | $ 71.7 |
Leases Operating Lease Costs (D
Leases Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 8 | $ 10 | $ 16.9 | $ 20.5 |
Variable Lease, Cost | 3 | 3.7 | 5.9 | 7 |
Short-term Lease, Cost | 0.6 | 1.2 | 1.1 | 1.9 |
Sublease Income | (1.5) | (1.7) | (2.8) | (3.2) |
Lease, Cost | $ 10.1 | $ 13.2 | $ 21.1 | $ 26.2 |
Leases, Supplemental Cash Flow
Leases, Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Leases [Abstract] | ||||
Operating Lease, Payments | $ 13.3 | $ 11.2 | $ 26.3 | $ 22.6 |
Lease assets obtained in exchange for lease liabilities | $ 0.3 | $ 1.4 | $ 4.9 | $ 5.4 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Derivative Notional Amounts) (Details) - Hedge [Member] - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Foreign exchange contracts [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Notional Amount | $ 257.9 | $ 269 | $ 295 |
Interest rate swaps [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Notional Amount | $ 41.1 | $ 75.3 | $ 119.9 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management Derivative Recorded Values (Details) - Hedge [Member] - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Foreign exchange contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange contracts, asset | $ 3.2 | $ 0 | $ 1.6 |
Foreign exchange contracts liabilities | (1) | (5.1) | (4.7) |
Interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate swap, assets | $ 0.8 | $ 1.8 | $ 3.9 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Additional Information) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Foreign exchange contracts [Member] | |||
Financial Instruments And Derivatives [Line Items] | |||
Maximum remaining maturity of foreign currency derivatives | 503 days | 524 days | 531 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 | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Restricted Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 1,865,330 | 1,253,579 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 8.43 | $ 15.18 |
Performance Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards Issued | 1,233,484 | 659,162 |
Awards Issued, Weighted Average Grant Date Fair Value | $ 8.56 | $ 15.20 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 5.7 | $ 3.3 | $ 9.8 | $ 7.8 |
Related income tax benefits on share based compensation | $ 1.1 | $ 0.7 | $ 1.9 | $ 1.5 |
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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Retirement Benefits [Abstract] | ||||
Service cost pertaining to benefits earned during the period | $ 0.7 | $ 0.8 | $ 1.4 | $ 1.6 |
Interest cost on projected benefit obligations | 4.5 | 4.5 | 8.9 | 8.9 |
Expected return on pension assets | (4.9) | (4.7) | (9.8) | (9.3) |
Net amortization loss | (0.4) | (0.2) | (0.8) | (0.4) |
Net pension expense (income) | $ (0.1) | $ 0.4 | $ (0.3) | $ 0.8 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Percent | 13.10% | 19.80% | 47.80% | 27.80% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | $ (147.9) | $ (136.6) | $ (142.2) | $ (132.9) |
Accumulated other comprehensive loss | (149.9) | (135.5) | (149.9) | (135.5) |
Other comprehensive income (loss) before reclassifications | (1.5) | 3.3 | (5) | 1 |
Amounts reclassified from AOCI | (0.6) | (3) | (3.5) | (6.3) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0.1 | 0.8 | 0.8 | 2.7 |
Net reclassifications | (0.5) | (2.2) | (2.7) | (3.6) |
Other Comprehensive Income (Loss), Net of Tax | (2.7) | 0.8 | (8.3) | (2.4) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2 | (1.1) | 7.7 | 2.6 |
Ending balance AOCI | (149.9) | (135.5) | (149.9) | (135.5) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (124.2) | (130.3) | (116.3) | (133.1) |
Accumulated other comprehensive loss | (127) | (125) | (127) | (125) |
Other comprehensive income (loss) before reclassifications | (2.8) | 5.3 | (10.9) | 3.9 |
Amounts reclassified from AOCI | 0 | 0 | 0.2 | 4.2 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0 | 0 | 0 | 0 |
Net reclassifications | 0 | 0 | 0.2 | 4.2 |
Other Comprehensive Income (Loss), Net of Tax | 2.8 | (5.3) | 10.7 | (8.1) |
Ending balance AOCI | (127) | (125) | (127) | (125) |
Derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (14.6) | (4.5) | (17.1) | 1.9 |
Accumulated other comprehensive loss | (13.4) | (8.5) | (13.4) | (8.5) |
Other comprehensive income (loss) before reclassifications | 1.3 | (2) | 5.9 | (2.9) |
Amounts reclassified from AOCI | (0.2) | (2.8) | (2.9) | (10.1) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0.1 | 0.8 | 0.7 | 2.6 |
Net reclassifications | (0.1) | (2) | (2.2) | (7.5) |
Other Comprehensive Income (Loss), Net of Tax | (1.2) | 4 | (3.7) | 10.4 |
Ending balance AOCI | (13.4) | (8.5) | (13.4) | (8.5) |
Pension adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance AOCI | (9.1) | (1.8) | (8.8) | (1.7) |
Accumulated other comprehensive loss | (9.5) | (2) | (9.5) | (2) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | (0.4) | (0.2) | (0.8) | (0.4) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 0 | 0 | 0.1 | 0.1 |
Net reclassifications | (0.4) | (0.2) | (0.7) | (0.3) |
Other Comprehensive Income (Loss), Net of Tax | 0.4 | 0.2 | 0.7 | 0.3 |
Ending balance AOCI | $ (9.5) | $ (2) | $ (9.5) | $ (2) |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Fair Value Measurements (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 4 | $ 1.8 | $ 5.5 |
Derivative Liability | $ (1) | $ (5.1) | $ (4.7) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Disclosures (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Fair Value Disclosures [Abstract] | |||
Debt, Carrying Value | $ 814.7 | $ 920.8 | $ 1,113.5 |
Debt, Fair Value | $ 732 | $ 813.3 | $ 1,020.1 |
Litigation and Contingencies En
Litigation and Contingencies Environmental Remediation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Environmental Exit Cost [Line Items] | ||
Site Contingency, Recovery from Third Party of Environmental Remediation Cost | $ 55 | |
Loss Contingency Accrual, Period Increase (Decrease) | $ 8.4 | |
Loss Contingency Accrual | 11.1 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Remediation liability at beginning of the year | 57.9 | 74.1 |
Changes in estimate | 3.8 | (21) |
Amounts paid | (15.5) | (6.7) |
Remediation liability at the end of the quarter | 46.2 | $ 46.4 |
Environmental remediation accrual, noncurrent | 28.4 | |
Environmental remediation accrual, current | $ 17.8 | |
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 | Jun. 29, 2024 USD ($) |
Royalties [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2024 | $ 0.5 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Advertising [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2024 | 0 |
2025 | 3 |
2026 | 3.1 |
2027 | 3.2 |
2028 | 3.3 |
Thereafter | $ 0 |
Litigation and Contingencies (A
Litigation and Contingencies (Additional Information) (Details) - Licensing agreements [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Long-term Purchase Commitment [Line Items] | ||||
Royalty expense, licensing agreements | $ 0.3 | $ 0.4 | $ 0.6 | $ 0.7 |
Advertising expense, licensing agreements | $ 1.2 | $ 2.4 | $ 2.3 | $ 3.7 |
Business Segments (Revenue and
Business Segments (Revenue and Operating Profit by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 425.2 | $ 589.1 | $ 820.1 | $ 1,188.5 |
Operating profit (loss) | 29.1 | 46.1 | 26 | 91.4 |
Interest expense, net | 11.9 | 16.1 | 23.9 | 31.9 |
Other Nonoperating Income (Expense) | (0.8) | (0.4) | (1.6) | 0.8 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 18 | 30.4 | 3.7 | 58.7 |
Active Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 305.9 | 383.3 | 595.7 | 769.2 |
Operating profit (loss) | 42.1 | 39.8 | 78.3 | 91.9 |
Work Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 105 | 117.8 | 195.1 | 232.3 |
Operating profit (loss) | 14.6 | 14.8 | 27.3 | 30.3 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14.3 | 88 | 29.3 | 187 |
Operating profit (loss) | 8.2 | 13.5 | 12.4 | 19.7 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss) | $ (35.8) | $ (22) | $ (92) | $ (50.5) |
Business Segments (Assets and G
Business Segments (Assets and Goodwill by Segment) (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 1,796.3 | $ 2,062.8 | $ 2,357.3 | |
Goodwill | 425.8 | 427.1 | 469.7 | $ 485 |
Active Group | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,072.7 | 1,183.9 | 1,315.3 | |
Goodwill | 316.5 | 317.7 | 317.4 | |
Work Group | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 282.8 | 288.4 | 319.4 | |
Goodwill | 60.2 | 60.3 | 60.3 | |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 98.5 | 250.8 | 471.2 | |
Goodwill | 49.1 | 49.1 | 92 | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 342.3 | $ 339.7 | $ 251.4 |
JV Consolidated Balances (Detai
JV Consolidated Balances (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 148.3 | $ 179 | $ 176.5 |
Accounts receivable, less allowances | 272.2 | 230.8 | 241.5 |
Inventory, Net | 297.1 | 373.6 | 647.9 |
Current assets held for sale | 0 | 160.6 | 19.1 |
Total assets | 1,796.3 | 2,062.8 | 2,357.3 |
Total current liabilities | 665.6 | 869.4 | 964.2 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 0 | 24.2 | 4.1 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 0 | 7.4 | |
Accounts receivable, less allowances | 0 | 7.2 | |
Inventory, Net | 0 | 31.8 | |
Other Assets, Current | 0 | 2.9 | |
Assets, Noncurrent | 0 | 0.9 | |
Current assets held for sale | 51.6 | 0 | |
Total assets | 51.6 | 50.2 | |
Total current liabilities | 0 | 10.1 | |
Liabilities, Noncurrent | 0 | 0.1 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 15.4 | 0 | |
Liabilities | $ 15.4 | $ 10.2 |
JV Equity Method Balances (Deta
JV Equity Method Balances (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Jul. 01, 2023 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 0 | $ 7.5 |
JV Related Party Transactions (
JV Related Party Transactions (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Related Party Transaction [Line Items] | |||
Accounts receivable, less allowances | $ 272.2 | $ 230.8 | $ 241.5 |
Other liabilities | 56 | 49.9 | 55 |
Other assets | $ 63 | 70.7 | 70.6 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable, less allowances | 15.4 | 7.2 | |
Other liabilities | $ 1.4 | $ 0 |
Investments, Equity Method an_3
Investments, Equity Method and Joint Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Related Party Transaction [Line Items] | ||||
Revenue | $ 425.2 | $ 589.1 | $ 820.1 | $ 1,188.5 |
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 13.6 | $ 24.2 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups Keds (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jan. 10, 2024 | Jan. 01, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of businesses, intangible assets and other assets, net of cash disposed of | $ 92.5 | $ 81.9 | |||
Disposal Group, Including Discontinued Operation, Impairment | 0 | $ (96.8) | |||
Gain on sale of businesses, trademarks and intangible assets | $ 0 | $ 20.1 | |||
Sperry [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of businesses, intangible assets and other assets, net of cash disposed of | $ 97.4 | ||||
Disposal Group, Including Discontinued Operation, Impairment | 95 | ||||
Disposal Group Including Discontinued Operation Transaction Costs | 6 | ||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | 1 | ||||
China Joint Venture [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of businesses, intangible assets and other assets, net of cash disposed of | $ 22 | ||||
Disposal Group, Including Discontinued Operation, Impairment | 1.8 | ||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | (0.8) | ||||
Asia Leathers [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 8.2 | ||||
Disposal Group, Including Discontinued Operations, Net Assets | 8.2 | ||||
Louisville DC [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 23.5 | ||||
Gain on sale of businesses, trademarks and intangible assets | 12.6 | ||||
Hush Puppies Asia | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group Including Discontinued Operation Transaction Costs | 3 | ||||
Disposal Group, Including Discontinued Operation, Consideration | 58.8 | ||||
Gain on sale of businesses, trademarks and intangible assets | 55.8 | ||||
U.S. Leathers | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 4 | ||||
Disposal Group, Including Discontinued Operations, Net Assets | 2.1 | ||||
Gain on sale of businesses, trademarks and intangible assets | 1.9 | ||||
Keds [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group Including Discontinued Operation Transaction Costs | (1.6) | ||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | 4.2 | ||||
Disposal Group, Including Discontinued Operation, Consideration | 83.4 | ||||
Disposal Group, Including Discontinued Operations, Net Assets | (65.9) | ||||
Gain on sale of businesses, trademarks and intangible assets | $ 20.1 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups Leathers (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 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 | $ 5.6 | $ 3.6 | $ 4 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 15.4 | 4.7 | ||
Disposed, Inventory | 83.3 | 10.8 | ||
Disposed, prepaid expenses and other current assets | 2.9 | 0 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 3.8 | 0 | ||
Disposal Group, Including Discontinued Operation, Operating Lease, Right of Use Asset | 7.6 | 0 | ||
Disposal Group, Including Discontinued Operation, Goodwill | 43 | 0 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets | 67 | 0 | ||
Disposal Group, Including Discontinued Operation, Amortizable Intangible Assets Net | 21 | 0 | ||
Disposal Group, Including Discontinued Operation, Other Assets | 7.8 | 0 | ||
Disposal Group, Including Discontinued Operation, Impairment | (96.8) | 0 | ||
Current assets held for sale | $ 0 | 160.6 | 19.1 | |
Disposal Group, Including Discontinued Operation, Accounts Payable | 4.8 | 3.4 | ||
Disposal Group, Including Discontinued Operation, Operating Lease, Liability | 9 | 0 | ||
Disposed, other accrued liabilities | 9 | 0.7 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities | 1.4 | 0 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 0 | $ 24.2 | $ 4.1 |