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Discontinued Operations | 9 Months Ended
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Aug. 31, 2025
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In the fourth quarter of 2024 the Company announced it had initiated a formal review of strategic alternatives to the global Dockers® brand, which could include a sale or other strategic transactions. During the first quarter of 2025, the Company commenced a sale process of its Dockers® business and the Company determined that the Dockers® business met held for sale and discontinued operations accounting criteria. During the second quarter of 2025, the Company entered into a definitive agreement to sell its Dockers® business for an initial transaction value of $311 million, subject to customary adjustments and closing conditions, with the potential to reach up to $391 million through an $80 million earnout opportunity in future years based on the performance of the Dockers® business. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada for gross proceeds of $194.7 million, resulting in a gain on sale of $139.0 million, net of direct costs to sell. The sale of the remaining Dockers® operations is expected to close on or around January 31, 2026. Under the terms of a transition services agreement, the Company will provide certain post-closing accounting, tax, digital technology and supply chain services for Dockers® operations in the U.S. and Canada for a transitional period generally ending on January 31, 2026. Fees earned under the transition services agreement are included in “Selling, general and administrative expenses” in the consolidated statements of income. The following table reconciles the gross proceeds with the gain on sale of Dockers® intellectual property and operations in the U.S. and Canada included in “Net income (loss) from discontinued operations, net of taxes”.
| Three Months Ended
| August 31, 2025
Gross proceeds | $ | 194.7 |
Less direct costs to sell | 16.6 |
Less carrying amount of Dockers® intellectual property and operations in the U.S. and Canada | 39.1 |
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada | $ | 139.0 |
Dockers® net assets were classified as held for sale in the consolidated balance sheets for all periods presented. The Dockers® net assets were classified as current and non-current. Additionally, the Company classified the Dockers® business as discontinued operations in its consolidated statements of income for all periods presented. The following table presents the assets and liabilities held for sale:
| August 31, 2025 |  | December 1, 2024
| (Dollars in millions)
Current Assets: |  |  |
Inventories | $ | 57.7 |  |  | $ | 108.1 |
Total current assets held for sale | 57.7 |  |  | 108.1 |
Property, plant and equipment, net | 6.8 |  |  | 11.3 |
Operating lease right-of-use assets, net | 12.3 |  |  | 23.6 |
Total non-current assets held for sale | 19.1 |  |  | 34.9 |
Total assets held for sale | $ | 76.8 |  |  | $ | 143.0 |
Current Liabilities: |  |  |
Short-term operating lease liabilities | $ | 4.5 |  |  | $ | 5.9 |
Total current liabilities held for sale | 4.5 |  |  | 5.9 |
Long-term operating lease liabilities | 6.1 |  |  | 17.5 |
Total long-term liabilities held for sale | 6.1 |  |  | 17.5 |
Total liabilities held for sale | $ | 10.6 |  |  | $ | 23.4 |
The following table presents the results of discontinued operations:
| Three Months Ended |  | Nine Months Ended
| August 31, 2025 |  | August 25, 2024 |  | August 31, 2025 |  | August 25, 2024
| (Dollars in millions)
Net revenues | $ | 55.3 |  |  | $ | 73.7 |  |  | $ | 194.5 |  |  | $ | 233.5 |
Cost of goods sold | 27.3 |  |  | 36.9 |  |  | 95.6 |  |  | 120.7 |
Gross profit | 28.0 |  |  | 36.8 |  |  | 98.9 |  |  | 112.8 |
Selling, general and administrative expenses | 30.4 |  |  | 39.2 |  |  | 116.0 |  |  | 112.1 |
Restructuring charges, net(1) | 8.6 |  |  | — |  |  | 16.9 |  |  | 3.1 |
Income (loss) from discontinued operations before income taxes and gain on sale | (11.0) |  |  | (2.4) |  |  | (34.0) |  |  | (2.4) |
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada before income taxes | 139.0 |  |  | — |  |  | 139.0 |  |  | — |
Total income (loss) from discontinued operations before income taxes | 128.0 |  |  | (2.4) |  |  | 105.0 |  |  | (2.4) |
Income tax expense (benefit) | 31.9 |  |  | (0.4) |  |  | 26.7 |  |  | (0.4) |
Net income (loss) from discontinued operations, net of taxes | $ | 96.1 |  |  | $ | (2.0) |  |  | $ | 78.3 |  |  | $ | (2.0) |
____________ (1)Restructuring charges, net amounts previously attributable to corporate expenses were reported as discontinued operations for the nine months ended August 25, 2024. Cash flows related to discontinued operations are included in the consolidated statements of cash flows. The gain on sale of Dockers® intellectual property and operations in the U.S. and Canada of $155.6 million, prior to costs to sell, was an adjustment to reconcile net income to net cash provided by operating activities and the proceeds from sale of $194.7 million were included in cash flows from investing activities. There were no other significant operating noncash items or investing activities cash flows from discontinued operations during the three and nine months ended August 31, 2025 and August 25, 2024.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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