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Business Segments
 6 Months Ended
Jun. 15, 2013
Segment Reporting [Abstract]  
Business Segments
12. BUSINESS SEGMENTS

During the first quarter of fiscal 2013, the Company reorganized its portfolio of 16 brands, including the PLG brands acquired in the fourth quarter of fiscal 2012, into the following three operating segments, which the Company has determined are reportable operating segments.

 

  •  

Lifestyle Group, consisting of Sperry Top-Sider® footwear and apparel, Stride Rite® footwear, Hush Puppies® footwear and apparel, Keds® footwear, and Soft Style® footwear;

 

  •  

Performance Group, consisting of Merrell® footwear and apparel, Saucony® footwear and apparel, Chaco® footwear, Patagonia® footwear, and Cushe® footwear; and

 

  •  

Heritage Group, consisting of Wolverine® footwear and apparel, Cat® footwear, Bates® uniform footwear, Sebago® footwear and apparel, Harley-Davidson® footwear, and HyTest® Safety footwear.

The reportable segments are engaged in designing, manufacturing, sourcing, marketing, licensing and distributing branded footwear, apparel and accessories. Reported revenue of the reportable operating segments includes revenue from the sale of branded footwear, apparel and accessories to third-party customers; royalty income from the licensing of the Company’s trademarks and brand names to third-party licensees and distributors; and revenue from the Company’s mono-branded consumer direct business. The operating segment managers of the Lifestyle, Performance and Heritage Group operating segments all report directly to the Chief Operating Decision Maker. Prior year results have been restated to reflect these new reportable operating segments.

The Other category consists of the Company’s multi-branded consumer direct business, leather marketing operations, and sourcing operations which include third-party commission revenues. The Corporate category consists primarily of unallocated corporate expenses including acquisition-related transaction and integration expenses. This segment structure is consistent with the way management makes operating decisions, allocates resources and manages the growth and profitability of the Company’s business. The Company allocated goodwill in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other in connection with the reorganization of the Company’s brand portfolio in the first quarter of fiscal 2013.

The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies set forth in Note 1 to the consolidated condensed financial statements.

 

The performance of the reportable operating segments is evaluated by the Company’s management using various financial measures. The following is a summary of certain key financial measures for the respective fiscal periods indicated.

 

     12 Weeks Ended     24 Weeks Ended  

(In millions)

    June 15,
2013		     June 16,
2012		     June 15,
2013		     June 16,
2012		  

Revenue:

         

Lifestyle Group

    $ 255.2      $ 28.5      $ 525.5      $ 60.9   

Performance Group

      199.7        149.3        440.2        301.9   

Heritage Group

      110.6        111.5        229.1        230.7   

Other

      22.3        23.4        38.9        42.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 587.8      $ 312.7      $ 1,233.7      $ 635.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit:

         

Lifestyle Group

    $ 45.8      $ 5.6      $ 91.9      $ 12.1   

Performance Group

      30.5        29.9        81.4        67.8   

Heritage Group

      16.1        15.6        31.5        32.1   

Other

      0.6        0.5        (0.4 )      (0.7 ) 

Corporate

      (56.0 )      (28.8 )      (116.4 )      (51.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 37.0      $ 22.8      $ 88.0      $ 59.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(In millions)

    June 15,
2013		      June 16,
2012		  

Total assets:

      

Lifestyle Group

    $ 1,458.5       $ 69.3   

Performance Group

      514.5         235.1   

Heritage Group

      243.8         214.9   

Other

      77.1         66.7   

Corporate

      350.8         306.3   
  

 

 

     

 

 

  

Total

    $ 2,644.7       $ 892.3   
  

 

 

     

 

 

  

Goodwill:

      

Lifestyle Group

    $ 347.3       $ 6.6   

Performance Group

      87.0         10.3   

Heritage Group

      23.5         22.2   
  

 

 

     

 

 

  

Total

    $ 457.8       $ 39.1