Investments, Equity Method and Joint Ventures (Notes)

12 Months Ended

Dec. 31, 2022

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 has joint ventures that source and market the Company’s footwear and apparel products in China. Based upon the criteria set forth in FASB ASC 810, Consolidation, the Company has determined two of the consolidated joint ventures are variable interest entities (VIEs) and the Company is the primary beneficiary. The primary beneficiary determination is based on the relationship between the Company and the VIE, including contractual agreements between the Company and the VIE.

Specifically, the Company has the power to direct the activities that are considered most significant to the entities’ performance and the Company has the obligation to absorb losses and the right to receive benefits that are significant to the entities. The other equity holder’s interests are reflected in “net earnings (loss) attributable to noncontrolling interests” in the Consolidated Statement of Operations and “Noncontrolling interest” in the Consolidated Balance Sheets. Assets held by the VIEs are only available to settle obligations of the respective entities. Holders of liabilities of the VIEs do not have recourse to the Company.

The following is a summary of the entities’ assets and liabilities included in the Company’s consolidated balance sheets.

	Fiscal Year
(In millions)	2022		2021
Cash	$	5.8	$	3.7
Accounts receivable	19.7		8.0
Inventory	16.0		9.7
Other current assets	2.4		0.1
Noncurrent assets	0.8		0.7
Total assets	44.7		22.2
Current liabilities	9.6		4.0
Noncurrent liabilities	1.6		2.4
Total liabilities	$	11.2	$	6.4

Nonconsolidated VIEs

The Company also has two joint ventures that are VIEs and are not consolidated as the Company does not have the power to direct the most significant activities that impact the VIEs' economic performance. The two VIEs distribute footwear and apparel products in the Asia Pacific region. The following is a summary of carrying amounts of assets included in the Company’s consolidated balance sheets for fiscal years 2022 and 2021 related to VIEs for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss is the same as the carrying amounts.

The following is a summary of the carrying amounts of assets included in the Company’s consolidated balance sheets.

	Fiscal Year
(In millions)	2022		2021
Equity method investments (1)	$	8.1	$	7.1

(1) Equity method investments are included in “Other Assets” on the Consolidated Balance Sheets.

Related Party Transactions

In the normal course of business, the Company enters 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 fiscal years ended December 31, 2022 and January 1, 2022 the Company recognized net sales to equity affiliates totaling $35.5 million and $19.5 million, respectively.

The following table summarizes related party transactions included in the consolidated balance sheets.

	Fiscal Year
(In millions)	2022		2021
Accounts receivable due from related parties	$	18.1	$	10.3
Long term liabilities due to related parties	—		2.4
Long term assets due from related parties	1.6		—