Business Segments

9 Months Ended

Sep. 07, 2013

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

During the first quarter of fiscal 2013, the Company reorganized its portfolio of 16 brands, including the PLG brands acquired in the fourth quarter of fiscal 2012, into the following three operating segments, which the Company has determined are reportable operating segments.

• Lifestyle Group, consisting of Sperry Top-Sider^® footwear and apparel, Stride Rite^® footwear, Hush Puppies^® footwear and apparel, Keds^® footwear, and Soft Style^® footwear;

• Performance Group, consisting of Merrell^® footwear and apparel, Saucony^® footwear and apparel, Chaco^® footwear, Patagonia^® footwear, and Cushe^® footwear; and

• Heritage Group, consisting of Wolverine^® footwear and apparel, Cat^® footwear, Bates^® uniform footwear, Sebago^® footwear and apparel, Harley-Davidson^® footwear, and HyTest^® Safety footwear.

The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. Reported revenue of the reportable operating segments includes revenue from the sale of branded footwear, apparel and accessories to third-party customers; royalty income from the licensing of the Company’s trademarks and brand names to third-party licensees and distributors; and revenue from the Company’s mono-branded consumer direct business. Prior year results have been restated to reflect these new reportable operating segments.

The Other category consists of the Company’s multi-branded consumer direct business, leather marketing operations, and sourcing operations that include third-party commission revenues. The Corporate category consists primarily of unallocated corporate expenses including acquisition-related transaction and integration expenses. This segment structure is consistent with the way management makes operating decisions, allocates resources and manages the growth and profitability of the Company’s business. The Company allocated goodwill in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other in connection with the reorganization of the Company’s brand portfolio in the first quarter of fiscal 2013.

The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies set forth in Note 1 to the consolidated condensed financial statements.

Company management uses various financial measures to evaluate the performance of the reportable operating segments. The following is a summary of certain key financial measures for the respective fiscal periods indicated.

	12 Weeks Ended						36 Weeks Ended
(In millions)	September 7, 2013			September 8, 2012			September 7, 2013			September 8, 2012
Revenue:
Lifestyle Group	$	295.8		$	38.0		$	821.3		$	98.9
Performance Group	254.1			152.2			694.5			454.3
Heritage Group	144.6			143.5			373.7			374.2
Other	22.1			19.4			60.8			61.2
Total	$	716.6		$	353.1		$	1,950.3		$	988.6
Operating (loss) profit:
Lifestyle Group	$	56.6		$	9.9		$	148.5		$	22.0
Performance Group	56.4			33.4			137.8			101.2
Heritage Group	24.6			25.6			56.0			57.7
Other	0.2			(0.7		)	(0.3		)	(1.3		)
Corporate	(51.5		)	(21.9		)	(167.7		)	(73.5		)
Total	$	86.3		$	46.3		$	174.3		$	106.1

(In millions)	September 7, 2013		September 8, 2012
Total assets:
Lifestyle Group	$	1,448.9	$	79.6
Performance Group	547.9		256.3
Heritage Group	277.7		251.7
Other	63.3		55.6
Corporate	332.4		304.8
Total	$	2,670.2	$	948.0
Goodwill:
Lifestyle Group	$	329.5	$	6.5
Performance Group	92.9		10.3
Heritage Group	23.4		22.8
Total	$	445.8	$	39.6