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Revenue From Contracts With Customers (Notes)
 9 Months Ended
Sep. 28, 2019
Revenue From Contracts With Customers [Abstract]  
Revenue from Contract with Customer [Text Block]
REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue Recognition and Performance Obligations
The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. Revenue is recognized upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration to be received in exchange for those goods or services. The Company identifies the performance obligation in the contract, determines the transaction price, allocates the transaction price to the performance obligations and recognizes revenue upon completion of the performance obligation. Revenue is recognized net of variable consideration and any taxes collected from customers, which are subsequently remitted to governmental authorities.
The Company holds agreements to license symbolic intellectual property with minimum guarantees or fixed consideration. The Company has $35.2 million of remaining fixed transaction price under its license agreements as of September 28, 2019, which it expects to recognize per the terms of its contracts over the course of time through December 2024. The Company has elected to omit the remaining variable consideration under its license agreements given the Company recognizes revenue equal to what it has the right to invoice and that amount corresponds directly with the value to the customer of the Company’s performance to date.
The Company provides disaggregated revenue by sales channel, including the wholesale and consumer-direct sales channels, reconciled to the Company’s reportable operating segments. The wholesale channel includes royalty revenues due to the similarity in the Company’s oversight and management, customer base, the performance obligation (footwear and apparel goods) and point in time completion of the performance obligation.
 
Quarter Ended September 28, 2019
 
Quarter Ended September 29, 2018
(In millions)
Wholesale
 
Consumer-Direct
 
Total
 
Wholesale
 
Consumer-Direct
 
Total
Wolverine Michigan Group
$
279.5

 
$
39.3

 
$
318.8

 
$
291.1

 
$
36.6

 
$
327.7

Wolverine Boston Group
203.5

 
37.8

 
241.3

 
183.7

 
30.9

 
214.6

Other
12.9

 
1.3

 
14.2

 
14.4

 
1.9

 
16.3

Total
$
495.9

 
$
78.4

 
$
574.3

 
$
489.2

 
$
69.4

 
$
558.6

 
Year-To-Date Ended September 28, 2019
 
Year-To-Date Ended September 29, 2018
(In millions)
Wholesale
 
Consumer-Direct
 
Total
 
Wholesale
 
Consumer-Direct
 
Total
Wolverine Michigan Group
$
829.1

 
$
110.6

 
$
939.7

 
$
842.2

 
$
95.5

 
$
937.7

Wolverine Boston Group
570.7

 
106.1

 
676.8

 
577.3

 
87.4

 
664.7

Other
46.3

 
3.5

 
49.8

 
51.3

 
5.9

 
57.2

Total
$
1,446.1

 
$
220.2

 
$
1,666.3

 
$
1,470.8

 
$
188.8

 
$
1,659.6


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)
September 28,
2019
 
December 29,
2018
 
September 29,
2018
Product returns reserve
$
9.5

 
$
13.6

 
$
13.7

Customer markdowns reserve
3.6

 
4.0

 
4.9

Other sales incentives reserve
1.9

 
2.3

 
2.5

Customer rebates liability
10.8

 
12.8

 
14.0

Customer advances liability
5.4

 
3.8

 
3.9


The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from initial estimates. If actual results in the future vary from initial estimates, the Company subsequently adjusts these estimates, which affects net revenue and earnings in the period such variances become known.