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Discontinued Operations and Disposal Groups (Notes) | 12 Months Ended
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Dec. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Mergers, Acquisitions and Dispositions Disclosures | Divestiture of Keds® Business On February 7, 2023 the Company entered into an Asset Purchase Agreement with Designer Brands, Inc. (the "Buyer") pursuant to which the Buyer agreed to purchase the global Keds® business. The sale was effective as of February 4, 2023, in accordance with the terms and conditions of the Asset Purchase Agreement. The following table summarizes the net gain recognized in connection with the divestiture:
(In millions) |
Net proceeds | $ | 83.4 |
Net assets disposed | (65.9) |
Direct costs to sell | (1.6) |
AOCI reclassification adjustment, foreign currency translation | 4.2 |
Gain on sale of business | $ | 20.1 |
The Company determined that the divestiture of the Keds® business did not represent a strategic shift that had or will have a major effect on the Consolidated Results of Operations, and therefore results were not classified as discontinued operations. The proceeds from the sales were used to reduce outstanding borrowings under the Revolving Facility. Divestiture of U.S. Wolverine Leathers Business On August 23, 2023, the Company completed the sale of its U.S. performance leathers business to its long-time customer, New Balance. The Company received $4.0 million in cash for the sale and recognized a gain on sale of $1.9 million. The assets sold, which were included in the Other segment category, consist of $2.1 million in inventory. Divestiture of Hush Puppies® intellectual property in China, Hong Kong, and Macau On September 1, 2023, the Company entered into an asset purchase agreement to sell the Hush Puppies® trademarks, patents, copyrights and domains in China, Hong Kong and Macau to its current sublicensee, Beijing Jiaman Dress Co., Ltd. for cash of $58.8 million and recognized a gain on sale of $55.8 million. The gain on sale is net of transaction related fees of $3.0 million. The transaction closed on September 14, 2023. The Company continues to own the Hush Puppies® brand throughout the rest of the world. Sale-Leaseback of Louisville Distribution Facility On December 28, 2023, the Company completed a sale and leaseback transaction with an independent third party for the land, building and related fixed assets of its distribution center located in Louisville, Kentucky for a sale price of $23.5 million. The distribution center was leased back to the Company via a two year lease agreement which includes a one year renewal option. The transaction qualifies for sales recognition under the sale leaseback accounting requirements and the Company recorded a gain of $12.6 million. Divestiture of Asia-based Leathers Business On December 14, 2023, the Company completed the sale of its Asia-based performance leathers business to Interhides Public Company Limited, a current materials vendor of the Company. The Company received $8.2 million in cash for the sale. The assets sold, which were included in the Other segment category, consist of $8.2 million in inventory. Assets and Liabilities Held for Sale On January 10, 2024, the Company completed the sale of the global Sperry® business and as of fiscal 2023 year-end, determined that the Sperry® business met the criteria to be classified as held for sale. The Company received gross proceeds of $97.4 million in cash, subject to customary purchase price adjustments. The Company determined that the divestiture of the Sperry® business does not represent a strategic shift that had or will have a major effect on the consolidated condensed results of operations, and therefore results of this business were not classified as discontinued operations. Upon classification as held for sale, the Company compared the Sperry® business' carrying value with its fair value, less costs to sell. Based upon the selling price, the Company estimated implied losses in excess of the carrying value of the Sperry® business' long-lived assets. As a result, the Company recorded non-cash impairment charges totaling $95.0 million during fiscal 2023 to reduce the net carrying value of the Sperry® business' long-lived assets to zero. Also during fiscal 2023, the Company recorded an impairment charge of $11.0 million related to assets that will not convey as part of the Sperry® sale transactions and are not expected to be used within the Company’s other businesses. These charges are reported within the impairment of long-lived assets line on the consolidated statements of operations. This write-down includes a $1.0 million loss related to currency translation adjustments in accumulated other comprehensive loss. On December 17, 2023, the Company entered into an agreement to sell the Company’s equity interest in the Merrell and Saucony China joint venture entities to Xtep International Holdings Limited ("Xtep"), its joint venture partner. On January 1, 2024, the Company completed the sale of and received cash of $22.0 million. The Company has determined that the Merrell and Saucony China joint venture entities meet the criteria to be classified as held for sale as of year-end 2023, and therefore have reclassified the related assets and liabilities as held for sale on the Consolidated Balance Sheets. The Company determined that the planned divestiture does not represent a strategic shift that had or will have a major effect on the consolidated condensed results of operations, and therefore results of this business were not classified as discontinued operations. The Keds® business and the performance leathers business met the criteria to be classified as held for sale as of year end 2022, and therefore reclassified the related assets and liabilities as held for sale on the Consolidated Balance Sheets as of year end 2022. As noted above, the Company completed the sale of both the Keds® business and performance leathers business in fiscal 2023. The following is a summary of the major categories of assets and liabilities that have been classified as held for sale on the consolidated condensed balance sheets:
| Fiscal Year
(In millions) | 2023 |  | 2022
Cash and cash equivalents | $ | 5.6 |  |  | $ | 4.0 |
Accounts receivables, net | 15.4 |  |  | 3.5 |
Inventories | 83.3 |  |  | 43.1 |
Other current assets | 2.9 |  |  | — |
Property, plant and equipment, net | 3.8 |  |  | — |
Lease right-of-use assets | 7.6 |  |  | — |
Goodwill | 43.0 |  |  | — |
Indefinite-lived intangibles | 67.0 |  |  | 11.4 |
Amortizable intangibles, net | 21.0 |  |  | — |
Other assets | 7.8 |  |  | 5.9 |
Impairment of carrying value | (96.8) |  |  | — |
Total assets held for sale | 160.6 |  |  | 67.9 |
Accounts payable | 4.8 |  |  | 8.1 |
Lease liabilities | 9.0 |  |  | — |
Accrued liabilities | 9.0 |  |  | 0.7 |
Other liabilities | 1.4 |  |  | — |
Total liabilities held for sale | $ | 24.2 |  |  | $ | 8.8 |

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent Reference 2: 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 + Details
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