Revenue From Contracts With Customers (Notes)

9 Months Ended

Sep. 30, 2023

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 reports disaggregated revenue by sales channel, including the wholesale and direct-to-consumer sales channels, reconciled to the Company’s reportable 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. The direct-to-consumer sales channel includes sales from the Company’s owned retail stores and from the Company’s owned eCommerce sites.

	Quarter Ended September 30, 2023						Quarter Ended October 1, 2022
(In millions)	Wholesale		Direct-to-Consumer		Total		Wholesale		Direct-to-Consumer		Total
Active Group	$	225.2	$	103.4	$	328.6	$	288.7	$	109.5	$	398.2
Work Group	111.4		11.6		123.0		145.4		12.4		157.8
Lifestyle Group	42.8		20.0		62.8		81.7		36.0		117.7
Other	11.7		1.6		13.3		15.8		1.9		17.7
Total Revenue	$	391.1	$	136.6	$	527.7	$	531.6	$	159.8	$	691.4

	Year-To-Date Ended September 30, 2023						Year-To-Date Ended October 1, 2022
(In millions)	Wholesale		Direct-to-Consumer		Total		Wholesale		Direct-to-Consumer		Total
Active Group	$	800.4	$	297.4	$	1,097.8	$	849.5	$	323.1	$	1,172.6
Work Group	322.4		32.9		355.3		398.1		37.7		435.8
Lifestyle Group	162.0		61.0		223.0		244.8		102.1		346.9
Other	35.9		4.2		40.1		60.0		4.5		64.5
Total Revenue	$	1,320.7	$	395.5	$	1,716.2	$	1,552.4	$	467.4	$	2,019.8

The Company has agreements to license symbolic intellectual property with minimum guarantees or fixed consideration. The Company was due $15.2 million of remaining fixed transaction price under its license agreements as of September 30, 2023, which it expects to recognize per the terms of its contracts over the course of time through December 2028. 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.

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 30, 2023		December 31, 2022		October 1, 2022
Product returns reserve	$	10.8	$	15.3	$	11.6
Customer markdowns reserve	4.6		2.6		2.2
Other sales incentives reserve	3.4		3.3		3.7
Customer rebates liability	14.0		19.8		18.2
Customer advances liability	4.9		9.1		5.3

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.