Business Segments (Notes)

6 Months Ended

Jun. 29, 2024

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Company’s portfolio of brands is organized into the following reportable segments.

•Active Group, consisting of Merrell® footwear and apparel, Saucony® footwear and apparel, Sweaty Betty® activewear, and Chaco® footwear; and

•Work Group, consisting of Wolverine® footwear and apparel, Cat® footwear, Bates® uniform footwear, Harley-Davidson® footwear and HYTEST® safety footwear;

The Company's operating segments are the Active Group, Work 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 Sperry® footwear, Keds® footwear, Hush Puppies® footwear and apparel, 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 gains on the sale of businesses and trademarks, unallocated corporate expenses, such as corporate employee costs, corporate facility costs, reorganization activities, impairment of long-lived assets 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.

	Quarter Ended				Year-to-Date Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenue:
Active Group	$	305.9	$	383.3	$	595.7	$	769.2
Work Group	105.0		117.8		195.1		232.3
Other	14.3		88.0		29.3		187.0
Total	$	425.2	$	589.1	$	820.1	$	1,188.5
Segment operating profit (loss):
Active Group	$	42.1	$	39.8	$	78.3	$	91.9
Work Group	14.6		14.8		27.3		30.3
Other	8.2		13.5		12.4		19.7
Corporate	(35.8)		(22.0)		(92.0)		(50.5)
Operating profit	29.1		46.1		26.0		91.4
Interest expense, net	11.9		16.1		23.9		31.9
Other expense (income), net	(0.8)		(0.4)		(1.6)		0.8
Earnings before income taxes	$	18.0	$	30.4	$	3.7	$	58.7

(In millions)	June 29, 2024		December 30, 2023		July 1, 2023
Total assets:
Active Group	$	1,072.7	$	1,183.9	$	1,315.3
Work Group	282.8		288.4		319.4
Other	98.5		250.8		471.2
Corporate	342.3		339.7		251.4
Total	$	1,796.3	$	2,062.8	$	2,357.3
Goodwill:
Active Group	$	316.5	$	317.7	$	317.4
Work Group	60.2		60.3		60.3
Other	49.1		49.1		92.0
Total	$	425.8	$	427.1	$	469.7