XML 45 R28.htm IDEA: XBRL DOCUMENT v3.22.4
Business Segments (Notes)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
The Company’s portfolio of brands are organized into the following three reportable segments. During the fourth quarter of 2022, the Company announced changes to its reportable segments as a result of changes in how its Chief Operating Decision Maker, the Company's Chief Executive Officer, allocates resources to and assess performance of the Company's operating segments. All prior period disclosures have been retrospectively adjusted to reflect the new reportable segments.
•Active Group, consisting of Merrell® footwear and apparel, Saucony® footwear and apparel, Sweaty Betty® activewear, and Chaco® footwear;
•Work Group, consisting of Wolverine® footwear and apparel, Cat® footwear, Bates® uniform footwear, Harley-Davidson® footwear and HYTEST® safety footwear; and
• Lifestyle Group, consisting of Sperry® footwear, Keds® footwear, and Hush Puppies® footwear and apparel.
The Company's operating segments are the Work Group, Lifestyle Group, Active Group, and Sweaty Betty®. Sweaty Betty® and the Active Group were evaluated and combined into one reportable segment because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance
Kids' footwear offerings from Saucony®, Sperry®, 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 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 the gain on the sale of the Champion trademarks in fiscal 2022 and unallocated corporate expenses, such as corporate employee costs, costs related to the COVID-19 pandemic, impairment of intangible assets and goodwill, reorganization activities, and environmental and other related costs.
The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. Revenue for the reportable segments includes revenue from the sale of branded footwear, apparel and accessories to third-party customers; revenue from third-party licensees and distributors; and revenue from the Company’s direct-to-consumer businesses. The Company’s reportable segments are determined based on how the Company internally reports and evaluates financial information used to make operating decisions.
Company management uses various financial measures to evaluate the performance of the reportable segments. The following is a summary of certain key financial measures for the respective fiscal periods indicated.
 Fiscal Year
(In millions)202220212020
Revenue:
Active Group$1,570.2 $1,319.6 $909.3 
Work Group590.5 548.8 425.4 
Lifestyle Group447.5 477.0 407.0 
Other76.6 69.5 49.4 
Total$2,684.8 $2,414.9 $1,791.1 
Operating profit (loss):
Active Group$198.4 $229.5 $164.1 
Work Group102.5 103.8 65.2 
Lifestyle Group48.1 67.5 34.2 
Other11.8 8.1 6.1 
Corporate(569.2)(253.2)(406.7)
Total$(208.4)$155.7 $(137.1)
Interest expense, net47.3 37.4 43.6 
Debt extinguishment and other costs— 34.3 5.5 
Other expense (income), net(2.8)3.7 (2.1)
Earnings (loss) before income taxes$(252.9)$80.3 $(184.1)
 Fiscal Year
(In millions)202220212020
Depreciation and amortization expense:
Active Group$8.1 $5.4 $2.7 
Work Group0.3 0.3 0.4 
Lifestyle Group2.0 2.3 3.0 
Other1.4 1.6 2.0 
Corporate22.8 23.6 24.7 
Total$34.6 $33.2 $32.8 
Capital expenditures:
Active Group$18.9 $5.0 $1.4 
Work Group0.4 0.4 — 
Lifestyle Group2.0 0.1 1.7 
Other3.2 1.7 0.9 
Corporate12.0 10.4 6.3 
Total$36.5 $17.6 $10.3 


(In millions)December 31,
2022		January 1,
2022
Total assets:
Active Group$1,331.5 $1,377.3 
Work Group375.7 284.2 
Lifestyle Group514.8 663.4 
Other58.6 57.8 
Corporate212.1 203.7 
Total$2,492.7 $2,586.4 
Goodwill:
Active Group$314.4 $380.3 
Work Group59.6 61.3 
Lifestyle Group97.4 101.3 
Other13.6 13.7 
Total$485.0 $556.6 
Geographic dispersion of revenue from external customers, based on shipping destination is as follows:
Fiscal Year
(In millions)202220212020
United States$1,563.1 $1,573.9 $1,234.2 
Foreign:
Europe, Middle East and Africa602.5 460.3 279.8 
Asia Pacific245.7 161.6 120.3 
Canada126.8 116.9 88.9 
Latin America146.7 102.2 67.9 
Total from foreign territories1,121.7 841.0 556.9 
Total revenue$2,684.8 $2,414.9 $1,791.1 
The location of the Company’s tangible long-lived assets, which comprises property, plant and equipment and lease right-of-use assets, is as follows:
(In millions)December 31,
2022		January 1,
2022		January 2,
2021
United States$222.3 $205.8 $222.2 
Foreign countries88.6 61.4 44.9 
Total$310.9 $267.2 $267.1 
The Company does not believe that it is dependent upon any single customer because no customer accounts for more than 10% of consolidated revenue in any year.
During fiscal 2022, the Company sourced 100% of its footwear products and apparel and accessories from third-party suppliers, located primarily in the Asia Pacific region. While changes in suppliers could cause delays in manufacturing and a possible loss of sales, management believes that other suppliers could provide similar products on comparable terms.