Business Segments (Notes)

6 Months Ended

Jul. 02, 2022

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Company’s portfolio of brands is organized into the following two operating segments, which the Company has determined to be reportable segments.

•Wolverine Michigan Group, consisting of Merrell® footwear and apparel, Cat® footwear, Wolverine® footwear and apparel, Chaco® footwear, Hush Puppies® footwear and apparel, Bates® uniform footwear, Harley-Davidson® footwear and Hytest® safety footwear; and

•Wolverine Boston Group, consisting of Sperry® footwear, Saucony® footwear and apparel, Keds® footwear, and the Kids’ footwear business, which includes the Stride Rite® licensed business, as well as Kids' footwear offerings from Saucony®, Sperry®, Keds®, Merrell®, Hush Puppies® and Cat®.

The Company also reports “Other” and “Corporate” categories. The Other category consists of the Sweaty Betty® activewear business, the Company’s leather marketing operations, sourcing operations that include third-party commission revenues and multi-branded direct-to-consumer retail stores. The Corporate category consists of the Champion trademarks gain in 2022 and unallocated corporate expenses, such as corporate employee costs, costs related to the COVID-19 pandemic 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 each reportable segment.

	Quarter Ended				Year-to-Date Ended
(In millions)	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Revenue:
Wolverine Michigan Group	$	389.7	$	354.4	$	719.0	$	652.1
Wolverine Boston Group	253.9		258.0		466.2		458.9
Other	70.0		19.5		143.2		31.6
Total	$	713.6	$	631.9	$	1,328.4	$	1,142.6
Segment operating profit (loss):
Wolverine Michigan Group	$	82.3	$	75.5	$	147.4	$	134.7
Wolverine Boston Group	39.9		47.0		69.1		81.1
Other	(0.5)		1.2		(0.4)		1.5
Corporate	46.2		(59.9)		(28.6)		(95.4)
Operating profit	167.9		63.8		187.5		121.9
Interest expense, net	10.1		9.7		$	18.8	$	19.3
Other expense (income), net	0.6		0.1		$	(0.5)	$	2.9
Earnings before income taxes	$	157.2	$	54.0	$	169.2	$	99.7

(In millions)	July 2, 2022		January 1, 2022		July 3, 2021
Total assets:
Wolverine Michigan Group	$	922.2	$	651.9	$	702.4
Wolverine Boston Group	1,263.4		1,123.6		1,157.9
Other	561.4		606.2		43.4
Corporate	202.0		204.7		399.9
Total	$	2,949.0	$	2,586.4	$	2,303.6
Goodwill:
Wolverine Michigan Group	$	142.6	$	145.1	$	145.7
Wolverine Boston Group	294.2		296.2		297.9
Other	102.3		115.3		—
Total	$	539.1	$	556.6	$	443.6