What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-27 compared with 2025-02-20 · 310 added, 292 removed, 1121 unchanged (35% of the section changed)

12 unchanged sentences

Revenue From Contracts With Customers 51

Inventories 53

Property, Plant and Equipment 54

7 unchanged sentences

Business Segments 67

Variable Interest Entities and Related Party Transactions

Divestitures and Assets and Liabilities Held for Sale 69

19 unchanged sentences

Net earnings (loss) 101.0 48.8 ( 38.1 )

net earnings (loss) attributable to noncontrolling interests 3.6 0.4 ( 0.8 )

net earnings attributable to noncontrolling interests 5.2 3.6 0.4

Net earnings (loss) attributable to Wolverine World Wide, Inc.

21 unchanged sentences

( 1.3 ) ( 1.4 ) ( 0.5 )

Curtailment gain, net of taxes of $ 0.3

Settlement loss, net of taxes of $ 0.3

Other comprehensive loss ( 6.7 ) ( 8.8 ) ( 34.5 )

Curtailment, net of taxes of $ 0.5 , $ — and $ 0.3

Settlement, net of taxes of $ 0.6 , $ 0.3 and $ —

Other comprehensive income (loss) 22.1 ( 6.7 ) ( 8.8 )

other comprehensive income (loss) attributable to noncontrolling interests 0.7 ( 1.1 ) 0.5

Other comprehensive loss attributable to Wolverine World Wide, Inc.

Other comprehensive income (loss) attributable to Wolverine World Wide, Inc.

21.4 ( 5.6 ) ( 9.3 )

Comprehensive income (loss) 123.1 42.1 ( 46.9 )

comprehensive income (loss) attributable to noncontrolling interests 2.5 0.9 ( 1.3 )

comprehensive income attributable to noncontrolling interests 5.9 2.5 0.9

Comprehensive income (loss) attributable to Wolverine World Wide, Inc.

4 unchanged sentences

Consolidated Balance Sheets

(In millions, except share data) December 28,

(In millions, except share data) January 3,

2026 December 28,

6 unchanged sentences

Prepaid expenses and other current assets 86.8 86.4

Current assets held for sale — 160.6

Total current assets 729.4 695.7

15 unchanged sentences

Borrowings under revolving credit agreements 75.0 70.0

Current liabilities held for sale — 24.2

Total current liabilities 521.1 533.1

19 unchanged sentences

See accompanying notes to consolidated financial statements.

WOLVERINE WORLD WIDE, INC.

Can WOLVERINE WORLD WIDE, INC.

AND SUBSIDIARIES

4 unchanged sentences

Net earnings (loss) $ 101.0 $ 48.8 $ ( 38.1 )

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization

5 unchanged sentences

Pension and SERP expense

( 1.0 ) 0.2 0.7

Impairment of long-lived assets — 9.3 185.3

13 unchanged sentences

23.3 ( 47.9 ) ( 36.6 )

Net cash provided by (used in) operating activities 180.1 121.8 ( 178.9 )

Net cash provided by operating activities 140.0 180.1 121.8

INVESTING ACTIVITIES

Additions to property, plant and equipment ( 14.5 ) ( 20.2 ) ( 14.6 )

Investment in joint ventures

Proceeds from sale of businesses, intangible assets and other assets, net of cash disposed of — 102.4 188.9

1 unchanged sentence

( 1.6 ) ( 3.3 ) ( 2.7 )

Net cash provided by investing activities 86.8 171.6 54.6

Net cash provided by (used in) investing activities ( 13.9 ) 86.8 171.6

FINANCING ACTIVITIES

5 unchanged sentences

Payments of debt issuance and debt extinguishment costs

( 3.9 ) — ( 0.9 )

Cash dividends paid

5 unchanged sentences

Contributions from noncontrolling interests

Net cash provided by (used in) financing activities ( 299.2 ) ( 246.3 ) 107.1

Net cash used in financing activities ( 77.7 ) ( 299.2 ) ( 246.3 )

Effect of foreign exchange rate changes

18 unchanged sentences

Additions to property, plant and equipment not yet paid — 1.3 0.3

Net income taxes paid (refunded):

(In millions) 1

Federal $ 11.7

State ( 0.2 )

Argentina 1.9

Other foreign jurisdictions 7.0

1 Disaggregated in accordance with ASU 2023-09, which the Company adopted prospectively in 2025.

See accompanying notes to consolidated financial statements.

Cash and cash equivalents as of December 30, 2023 in the Consolidated Statements of Cash Flows includes $ 5.6 million of cash and cash equivalents that are classified as held for sale that are not included in cash and cash equivalents in the Consolidated Balance Sheets.

WOLVERINE WORLD WIDE, INC.

6 unchanged sentences

Loss Treasury Stock Non-controlling Interest Total

Balance at January 1, 2022 $ 111.6 $ 298.9 $ 1,128.2 $ ( 98.9 ) $ ( 810.2 ) $ 14.8 $ 644.4

Net loss ( 188.3 ) ( 0.8 ) ( 189.1 )

Other comprehensive loss ( 34.0 ) ( 0.5 ) ( 34.5 )

Balance at December 31, 2022 $ 112.2 $ 325.4 $ 907.2 $ ( 132.9 ) $ ( 891.3 ) $ 18.4 $ 339.0

Cumulative effect of change in accounting principle (See Note 1) 7.2 7.2

Balance at December 31, 2022 112.2 325.4 914.4 ( 132.9 ) ( 891.3 ) 18.4 346.2

Net earnings (loss) ( 38.5 ) 0.4 ( 38.1 )

Other comprehensive income (loss) ( 9.3 ) 0.5 ( 8.8 )

Shares issued, net of shares forfeited under stock incentive plans ( 745,662 shares)

5 unchanged sentences

Issuance of treasury shares ( 9,924 shares)

Purchase of common stock for treasury ( 3,815,164 shares)

( 0.1 ) 0.3 0.2

Capital contribution from noncontrolling interests 30.1 2.1 32.2

Other $ ( 2.1 ) $ ( 2.1 )

Balance at December 30, 2023 $ 113.0 $ 364.0 $ 843.1 $ ( 142.2 ) $ ( 891.0 ) $ 21.4 $ 308.3

Net earnings (loss) ( 39.6 ) 0.4 ( 39.2 )

Other comprehensive income (loss) ( 9.3 ) 0.5 ( 8.8 )

Net earnings 45.2 3.6 48.8

Other comprehensive loss ( 5.6 ) ( 1.1 ) ( 6.7 )

Shares issued, net of shares forfeited under stock incentive plans ( 579,868 shares)

6 unchanged sentences

( 0.2 ) 0.2 —

Capital contribution from noncontrolling interests 30.1 2.1 32.2

Divestiture ( 14.7 ) ( 14.7 )

Balance at December 28, 2024 $ 113.7 $ 382.7 $ 855.1 $ ( 147.8 ) $ ( 890.8 ) $ 9.2 $ 322.1

10 unchanged sentences

Net earnings 95.8 5.2 101.0

Other comprehensive loss ( 5.6 ) ( 1.1 ) ( 6.7 )

Other comprehensive income 21.4 0.7 22.1

Shares issued, net of shares forfeited under stock incentive plans ( 1,033,494 shares)

1 unchanged sentence

Shares issued for stock options exercised, net ( 717,533 shares)

0.7 11.3 12.0

Stock-based compensation expense

2 unchanged sentences

Issuance of treasury shares ( 6,630 shares)

Purchase of common stock for treasury ( 900,000 shares)

( 14.5 ) ( 14.5 )

Divestiture ( 14.7 ) ( 14.7 )

Balance at December 28, 2024 $ 113.7 $ 382.7 $ 849.5 $ ( 147.8 ) $ ( 890.8 ) $ 9.2 $ 316.5

Balance at January 3, 2026 $ 115.5 $ 406.8 $ 917.2 $ ( 126.4 ) $ ( 905.1 ) $ 15.1 $ 423.1

See accompanying notes to consolidated financial statements.

33 unchanged sentences

The Company’s fiscal year is the 52- or 53-week period that ends on the Saturday nearest to December 31.

Fiscal years 2024, 2023 and 2022 each had 52 weeks.

Fiscal year 2025 had 53 weeks, while 2024 and 2023 each had 52 weeks.

Use of Estimates

26 unchanged sentences

Advertising expenses were $ 158.1 million, $ 140.3 million and $ 169.3 million for fiscal years 2025, 2024 and 2023, respectively.

Prepaid advertising totaled $ 1.3 million and $ 2.6 million as of December 28, 2024 and December 30, 2023, respectively.

Prepaid advertising totaled $ 4.7 million and $ 1.3 million as of January 3, 2026 and December 28, 2024, respectively.

Earnings Per Share

9 unchanged sentences

The Company values its inventory at the lower of cost or net realizable value.

Cost is determined by the LIFO method for certain domestic finished product inventories.

Cost is determined using the FIFO method for all raw materials, work-in-process and finished product inventories in foreign countries and certain domestic finished product inventories.

The average cost of inventory is used for finished product inventories of the Company’s U.S.

retail store business inventory.

Cost is determined using the first-in, first-out (“FIFO”) method for all raw materials, work-in-process and finished product inventories in foreign countries and domestic finished product inventories.

The Company changed its method of accounting for certain domestic inventory valued using the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) i nventory valuation method, refer to " Change in Accounting Principle " below for additional information regarding this change.

The average cost of inventory is used for finished product inventories of the Company’s retail store business inventory.

The Company has applied these inventory cost valuation methods consistently from year to year.

2 unchanged sentences

If actual market conditions are different from those projected, adjustments to those inventory reserves may be required.

The adjustments would increase or decrease the Company’s cost of sales and net income in the period in which they were realized or recorded.

Inventory quantities are verified at various times throughout the year by performing physical inventory counts and subsequently comparing those results to perpetual inventory

The adjustments would increase or decrease the Company’s cost of

sales and net income in the period in which they were realized or recorded.

Inventory quantities are verified at various times throughout the year by performing physical inventory counts and subsequently comparing those results to perpetual inventory balances.

If the Company determines that adjustments to the inventory quantities are appropriate, an adjustment to the Company’s cost of goods sold and inventory is recorded in the period in which such determination was made.

21 unchanged sentences

The incremental borrowing rate is based on an interest rate that the Company would normally pay to borrow on a collateralized basis over a similar term and an amount equal to the lease payments.

The Company also recognizes a right-of-use asset, which is equal to the lease liability as of December 28, 2024 adjusted for the remaining balance of accrued rent and unamortized lease incentives.

The Company also recognizes a right-of-use asset, which is equal to the lease liability as of January 3, 2026 adjusted for the remaining balance of accrued rent and unamortized lease incentives.

Deferred Financing Costs

6 unchanged sentences

Refer to Note 10 for further discussion regarding the Company's derivative arrangements and derivative accounting.

Goodwill and Other Intangibles

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses.

1 unchanged sentence

Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are subject to impairment tests at least annually.

The Company reviews the carrying amounts of goodwill and indefinite-lived intangible assets by reporting unit at least annually, or when indicators of impairment are present, to determine if such assets may be impaired.

The Company includes assumptions such as a discount rate and expected future operating performance, which includes forecasted revenue growth, earnings before interest, taxes, depreciation

and amortization ("EBITDA") margin and cost of capital, which are derived from internal projections and operating plans, as part of a discounted cash flow analysis to estimate fair value.

The Company reviews the carrying amounts of goodwill and indefinite-lived intangible assets by reporting unit at least annually, or when indicators of impairment

are present, to determine if such assets may be impaired.

The Company includes assumptions such as a discount rate and expected future operating performance, which includes forecasted revenue growth, earnings before interest, taxes, depreciation and amortization ("EBITDA") margin and cost of capital, which are derived from internal projections and operating plans, as part of a discounted cash flow analysis to estimate fair value.

If the carrying value of these assets is not recoverable, based on the discounted cash flow analysis, management compares the fair value of the assets to the carrying value.

7 unchanged sentences

Each impairment test is based on a comparison of the carrying amount of the asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group.

If such assets are considered to be impaired, the impairment amount to be recognized is the amount by which the carrying value of the assets exceeds their fair value.

If such assets are considered to be impaired, the impairment amount to be recognized is the amount by which the carrying amount of the assets exceeds their fair value.

In 2024, the Company incurred $ 6.1 million in non-cash impairment charges on the long-lived property, plant and equipment and lease right-of-use assets at the Company’s distribution center in Louisville, Kentucky to adjust the carrying amount of the assets to their estimated fair value.

The Louisville distribution center impairment charges were related to the Company’s transformation activities and actions to consolidate distribution operations.

The long-lived assets have no fair value after the Company stopped using the distribution center.

The Company incurred $ 3.2 million in 2024 and $ 37.3 million in 2023, respectively, in non-cash impairment charges on certain Corporate U.S., U.K.

The long-lived assets had no fair value after the Company stopped using the distribution center.

The Company incurred $ 3.2 million in 2024 and $ 37.3 million in 2023 in non-cash impairment charges on certain Corporate U.S., U.K.

and Canada office long-lived property, plant and equipment and right-of-use assets, to adjust the carrying amount of the assets to estimated fair value.

3 unchanged sentences

The following table provides details related to asset impairment charges recorded:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

2024 December 30,

Lease right-of-use assets impairment $ — $ 5.9 $ 28.6

53 unchanged sentences

Transaction gains and losses are included in the consolidated statements of operations and were not material for fiscal years 2025, 2024 and 2023.

Business Combination

The Company accounts for business combinations using the acquisition method of accounting, which requires that once control is obtained, the consolidated financial statements reflect the operations of an acquired business starting from the acquisition date.

All assets acquired and liabilities assumed are recorded at fair value as of the acquisition date.

The Company allocates the purchase price of an acquired business to the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, with any excess purchase price recorded as goodwill.

Contingent consideration, if any, is included in the purchase price and is recognized at its fair value on the acquisition date.

During the measurement period, which is up to one year from the acquisition date, adjustments to the assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill.

The determination of fair values of identifiable assets and liabilities requires estimates and the use of valuation techniques and requires management to make judgments that may involve the use of significant estimates.

For intangible assets acquired in a business combination, the Company typically uses the income method.

Significant estimates used in valuing certain intangible assets include, but are not limited to, the amount and timing of future cash flows, growth rates and discount rates, among other items.

If the actual results differ from the estimates and judgments used, the amounts recorded in the Consolidated Financial Statements may be exposed to potential impairment of the intangible assets and goodwill as discussed in the "Goodwill and Indefinite-Lived Intangibles" accounting policy.

Change in Accounting Principle

During the third quarter of 2025, the Company changed its method of accounting for certain domestic inventory valued using the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) i nventory valuation method.

Inventory valued under the LIFO method represented approximately 23.0 % and 23.8 % of the Company’s total inventories as of December 28, 2024 and December 30, 2023, respectively.

This change in accounting principle is preferable because it more closely resembles the physical flow of inventory, aligns with how the Company internally manages the business, conforms all of the Company’s distribution warehouse inventory to the FIFO method of accounting, and improves comparability with the Company’s peers.

Additionally, the Company intends to make a change from LIFO to FIFO for our tax provision in accordance with IRS rules and regulations.

The Company applied this change in inventory costing method by retrospectively adjusting its historical financial statements.

The tables below illustrate the impacts for the fiscal year 2025 and historical financial statement line items within the accompanying financial statements that were adjusted as a result of the retrospective application:

Fiscal Year 2025

Fiscal Year 2024

(In millions, except share data) As Computed under LIFO Effect of Change As Reported As Originally Reported Effect of Change As Adjusted

Consolidated Statement of Operations and Comprehensive Income (Loss)

Cost of goods sold $ 992.7 $ ( 5.1 ) 987.6 $ 973.5 $ 3.5 $ 977.0

Earnings (loss) before income taxes 116.4 5.1 121.5 61.6 ( 3.5 ) 58.1

Income tax expense (benefit) 19.3 1.2 20.5 10.1 ( 0.8 ) 9.3

Net earnings (loss) 97.1 3.9 101.0 51.5 ( 2.7 ) 48.8

Net earnings (loss) attributable to Wolverine World Wide, Inc.

91.9 3.9 95.8 47.9 ( 2.7 ) 45.2

Comprehensive income (loss) 119.2 3.9 123.1 44.8 ( 2.7 ) 42.1

Comprehensive income (loss) attributable to Wolverine World Wide, Inc.

113.3 3.9 117.2 42.3 ( 2.7 ) 39.6

Net earnings (loss) per share:

Basic $ 1.09 $ 0.05 1.14 $ 0.58 $ ( 0.03 ) $ 0.55

Diluted $ 1.09 $ 0.05 1.14 $ 0.58 $ ( 0.03 ) $ 0.55

Fiscal Year 2023

(In millions, except share data) As Originally Reported Effect of Change As Adjusted

Consolidated Statement of Operations and Comprehensive Income (Loss)

Cost of goods sold $ 1,370.4 $ ( 1.4 ) $ 1,369.0

Earnings (loss) before income taxes ( 134.2 ) 1.4 ( 132.8 )

Income tax expense (benefit) ( 95.0 ) 0.3 ( 94.7 )

Net earnings (loss) ( 39.2 ) 1.1 ( 38.1 )

Net earnings (loss) attributable to Wolverine World Wide, Inc.

( 39.6 ) 1.1 ( 38.5 )

Comprehensive income (loss) ( 48.0 ) 1.1 ( 46.9 )

Comprehensive income (loss) attributable to Wolverine World Wide, Inc.

( 48.9 ) 1.1 ( 47.8 )

Net earnings (loss) per share:

Basic $ ( 0.51 ) $ 0.02 $ ( 0.49 )

Diluted $ ( 0.51 ) $ 0.02 $ ( 0.49 )

January 3, 2026

December 28, 2024

(In millions) As Computed under LIFO Effect of Change As Reported As Originally Reported Effect of Change As Adjusted

Consolidated Balance Sheets

Finished products, net $ 260.3 $ 12.3 $ 272.6 $ 237.8 $ 7.2 $ 245.0

Deferred income taxes 86.9 ( 2.8 ) 84.1 93.7 ( 1.6 ) 92.1

Retained earnings 907.7 9.5 917.2 849.5 5.6 855.1

Fiscal Year 2025

Fiscal Year 2024

(In millions) As Computed under LIFO Effect of Change As Reported As Originally Reported Effect of Change As Adjusted

Consolidated Statement of Cash Flows

Net earnings (loss) $ 97.1 $ 3.9 $ 101.0 $ 51.5 $ ( 2.7 ) $ 48.8

Deferred income taxes 6.8 1.2 8.0 21.4 ( 0.8 ) 20.6

Inventories ( 15.8 ) ( 5.1 ) ( 20.9 ) 127.1 3.5 130.6

Fiscal Year 2023

(In millions) As Originally Reported Effect of Change As Adjusted

Consolidated Statement of Cash Flows

Net earnings (loss) $ ( 39.2 ) $ 1.1 $ ( 38.1 )

Deferred income taxes ( 95.8 ) 0.3 ( 95.5 )

Inventories 286.5 ( 1.4 ) 285.1

NEW ACCOUNTING STANDARDS

2 unchanged sentences

Standard Description Effect on the Financial Statements

ASU 2023-07, Improvements to Reportable Segment Disclosures Requires entities disclose on an annual and interim basis significant segment expense, including an amount and composition description for other segment items, and how reported measures of profit or loss are used by the chief operating decision maker in assessing segment performance and deciding how to allocate resources.

The Company adopted ASU 2023-07 for the year-ended December 28, 2024 and applied it retrospectively to all prior periods presented.

Refer to Note 18, "Business Segments."

ASU 2023-09, Improvements to Income Tax Disclosures Requires annual disclosures of prescribed standard categories for the components of the effective tax rate reconciliation and disclosure of income taxes paid disaggregated by jurisdiction.

The Company has adopted ASU 2023-09 for the year-ended January 3, 2026 and applied it prospectively.

Refer to Note 13, Income Taxes.

The FASB has issued the following ASUs that the Company has not yet adopted.

1 unchanged sentence

Standard Description Effect on the Financial Statements

ASU 2023-09, Improvements to Income Tax Disclosures Requires annual disclosures of prescribed standard categories for the components of the effective tax rate reconciliation, disclosure of income taxes paid disaggregated by jurisdiction, and other income-tax related disclosures.

The ASU is effective on a prospective basis, with retrospective application permitted, for fiscal years after December 15, 2024.

The Company is evaluating the impact of the new standard on its Consolidated Financial Statements.

ASU 2024-03, Disaggregation of Income Statement Expenses Requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement.

2 unchanged sentences

The Company is evaluating the impact of the new standard on its Consolidated Financial Statements.

ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software Modernizes the accounting for software costs with how software is developed today, clarifies when to begin capitalizing costs and enhances disclosure requirements.

The ASU is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted.

The Company is evaluating the impact of the new standard on its Consolidated Financial Statements.

EARNINGS PER SHARE

8 unchanged sentences

81.2 80.0 79.4

Effect of dilutive share-based awards

Shares used to calculate diluted earnings per share

81.7 80.0 79.4

Net earnings (loss) per share:

2 unchanged sentences

For fiscal years 2025, 2024 and 2023, 185,601 , 1,592,297 and 2,022,676 outstanding stock options, respectively, have not been included in the denominator for the computation of diluted earnings per share because they were anti-dilutive.

The Company has 2,000,000 authorized shares of $ 1 par value preferred stock, none of which was issued or outstanding as of December 28, 2024 or December 30, 2023.

The Company has 2,000,000 authorized shares of $ 1 par value preferred stock, none of which was issued or outstanding as of January 3, 2026 or December 28, 2024.

The Company has designated 150,000 shares of preferred stock as Series A junior participating preferred stock and 500,000 shares of preferred stock as Series B junior participating preferred stock for possible future issuance.

The Company did not repurchase Company common stock in fiscal years 2024 or 2023.

The Company repurchased $ 81.3 million of Company common stock in fiscal year 2022 under stock repurchase plans.

The Company repurchased $ 14.5 million of Company common stock in fiscal year 2025 under stock repurchase plans and did not repurchase Company common stock in fiscal years 2024 or 2023.

In addition to the stock repurchase program activity, the Company acquired $ 10.7 million, $ 2.6 million and $ 5.8 million of Company common stock in fiscal years 2025, 2024 and 2023, respectively, in connection with employee transactions related to stock incentive plans.

4 unchanged sentences

Goodwill balance at beginning of the year $ 424.6 $ 427.1

Sale of a business (see Note 20) — ( 20.4 )

Reclassified to assets held for sale (1)

Foreign currency translation effects 6.7 ( 2.5 )

Goodwill balance at end of the year $ 431.3 $ 424.6

(1) Represents goodwill associated with the Sperry ® business classified as held for sale as of fiscal 2023, refer to Note 20.

Goodwill balances are net of accumulated impairment charges.

Accumulated impairment charges were $ 48.4 million as of December 28, 2024 and December 30, 2023, and are related to the Sweaty Betty ® reporting unit, which is part of the Active reportable segment.

Accumulated impairment charges were $ 48.4 million as of January 3, 2026 and December 28, 2024, and are related to the Sweaty Betty ® reporting unit, which is part of the Active Group reportable segment.

The Company performs its annual testing for goodwill and indefinite-lived intangible asset impairment at the beginning of the fourth quarter of the fiscal year for all reporting units.

The Company did not recognize any impairment charges for goodwill and indefinite-lived intangible assets during 2024 and did not recognize any impairment charges for goodwill during 2023.

The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $ 173.0 million and $ 174.1 million as of December 28, 2024 and December 30, 2023, respectively.

The Company did not recognize any impairment charges for goodwill and indefinite-lived intangible assets during 2025 and 2024 and did not recognize any impairment charges for goodwill during 2023.

The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $ 180.2 million and $ 173.0 million as of January 3, 2026 and December 28, 2024, respectively.

In the third quarter of 2023, due to the continued lower current year performance of the Sperry ® brand, the Company determined that a triggering event had occurred requiring impairment testing of the Sperry ® trade name.

1 unchanged sentence

The impairment charge was due to reductions in future cash flow assumptions mainly due to decreases in anticipated future performance and an increase in the discount rate used in the valuation.

In the fourth quarter of fiscal 2022, after the c ompletion of the annual impairment testing, the Company recognized impairment charges of $ 191.0 million and $ 189.3 million to the Sperry ® and Sweaty Betty ® trade names, respectively.

For the Sweaty Betty ® reporting unit included in the fiscal 2025 annual impairment test, the estimated fair value of the reporting unit exceeded the carrying value by 16 %.

The Sweaty Betty ® trade name was valued using the income approach, specifically the multi-period excess earnings method.

The key assumptions used in the valuation were revenue growth, EBITDA margin, and the discount rate.

Although the Company believes the estimates and assumptions used in the valuation were appropriate, it is possible assumptions could change in future periods.

The key assumptions used in the valuations were revenue growth, EBITDA margin, and the discount rate.

Although the Company believes the estimates and assumptions used in the valuations were appropriate, it is possible assumptions could change in future periods.

The risk of future impairment to the Sweaty Betty ® trade name and Sweaty Betty ® goodwill depend on assumptions used in the determination of the trade name's and reporting unit's fair value, such as revenue growth, EBITDA margin, taxes, depreciation and amortization margin, discount rate, and assumed tax rate, or if macroeconomic conditions deteriorate and adversely affect the values of the Company's Sweaty Betty ® trade name and the Sweaty Betty ® reporting unit.

A future impairment charge of the Sweaty Betty ® trade name and the Sweaty Betty ® reporting unit goodwill could have an adverse material effect on the Company's consolidated financial results The carrying values of the Company’s Sweaty Betty ® trade name indefinite-lived intangible asset and the Sweaty Betty ® reporting unit goodwill were $ 98.4 million and $ 52.4 million, respectively, as of December 28, 2024.

A future impairment charge of the Sweaty Betty ® trade name and the Sweaty Betty ® reporting unit goodwill could have an adverse material effect on the Company's consolidated financial results.

The carrying values of the Company’s Sweaty Betty ® trade name indefinite-lived intangible asset and the Sweaty Betty ® reporting unit goodwill were $ 105.4 million and $ 56.2 million, respectively, as of January 3, 2026.

Amortizable intangible assets are amortized using the straight-line method over their estimated useful lives.

The combined gross carrying values and accumulated amortization for these amortizable intangibles are as follows:

December 28, 2024

January 3, 2026

(In millions) Gross carrying

12 unchanged sentences

Amortization expense for these amortizable intangible assets was $ 4.8 million, $ 4.8 million and $ 7.2 million for fiscal years 2025, 2024 and 2023, respectively.

Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to December 28, 2024 is as follows:

Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to January 3, 2026 is as follows:

(In millions) 2026 2027 2028 2029 2030

2 unchanged sentences

The Company and certain of its subsidiaries sell, on a continuous basis without recourse, their trade receivables to Rockford ARS, LLC (“Rockford ARS”), a wholly-owned bankruptcy-remote subsidiary of the Company.

On December 7, 2022, Rockford ARS entered into a receivables purchase agreement (“RPA”), which was subsequently amended on April 15, 2024, to sell up to $ 125.0 million of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” in the RPA) equal to the gross receivables transferred.

Rockford ARS entered into a receivables purchase agreement (“RPA”), to sell up to $ 125.0 million of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” in the RPA) equal to the gross receivables transferred.

The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables.

Rockford ARS has guaranteed to each Purchaser the prompt payment of sold receivables, and has granted a security interest in its assets for the benefit of the Purchasers.

Under the RPA, which matures on December 5, 2025 each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin.

Under the RPA, which was amended on September 25, 2025 to extend the maturity date to September 25, 2028 , each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin.

The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables.

4 unchanged sentences

The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded.

As of the fiscal years ended December 28, 2024 and December 30, 2023, the amount sold to the Purchasers was $ 112.4 million and $ 93.9 million, respectively, which was derecognized from the Consolidated Balance Sheets.

As collateral against sold receivables, Rockford ARS maintains a certain level of unsold receivables, which was $ 64.9 million and $ 62.3 million as of the fiscal years ended December 28, 2024 and December 30, 2023, respectively.

As of the fiscal years ended January 3, 2026 and December 28, 2024, the amount sold to the Purchasers was $ 112.4 million and $ 112.4 million, respectively, which was derecognized from the Consolidated Balance Sheets.

As collateral against sold receivables, Rockford ARS maintains a certain level of unsold receivables, which was $ 47.9 million and $ 64.9 million as of the fiscal years ended January 3, 2026 and December 28, 2024, respectively.

REVENUE FROM CONTRACTS WITH CUSTOMERS

15 unchanged sentences

The Company has agreements to license symbolic intellectual property with minimum guarantees or fixed consideration.

The Company is due $ 39.4 million of remaining fixed transaction price under its license agreements as of December 28, 2024, which it expects to recognize per the terms of its contracts over the course of time through December 2028 .

The Company was due $ 29.9 million of remaining fixed transaction price under its license agreements as of January 3, 2026, 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.

7 unchanged sentences

The Company’s contract balances are as follows:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

Product returns reserve $ 11.8 $ 12.2

Customer markdowns reserve 0.5 5.1

Other sales incentives reserve 3.0 4.1

9 unchanged sentences

The estimated cost of inventory for product returns is recorded in prepaid expenses and other current assets on the consolidated balance sheets.

The estimated cost of inventory for product returns was $ 4.4 million and $ 6.1 million at December 28, 2024 and December 30, 2023, respectively.

Customer Markdowns

Markdowns represent the estimated reserve resulting from commitments to sell products to the Company’s customers at prices lower than the list prices charged to customers who directly purchase the product from the Company.

Customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the end consumer.

The reserve is established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and a reduction to trade receivables, net on the consolidated balance sheets.

The estimated cost of inventory for product returns was $ 4.4 million and $ 4.4 million at January 3, 2026 and December 28, 2024, respectively.

Other Sales Incentives

The Company accrues for other customer allowances for certain customers that purchase required volumes or meet other criteria.

The Company accrues for other sales incentives for certain customers which includes reserves for customer allowances for volume purchases or purchases that satisfy other criteria and for customer markdowns in connection with commitments to sell products at prices lower than the list price.

These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and a reduction to trade receivables, net on the consolidated balance sheets depending on the nature of the item.

5 unchanged sentences

Customer advances are recognized in other accrued liabilities on the consolidated balance sheets.

The Company used the LIFO method to value inventories of $ 55.4 million and $ 88.8 million at December 28, 2024 and December 30, 2023, respectively.

During fiscal years 2024 and 2023, changes in the LIFO reserve decreased cost of goods sold by $ 3.9 million and increased cost of goods sold $ 1.3 million, respectively.

If the FIFO method had been used, inventories would have been $ 8.5 million and $ 12.3 million higher than reported at December 28, 2024 and December 30, 2023, respectively.

Total debt consists of the following obligations:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

Term Facility, due October 21, 2026 $ 32.5 $ 71.7

Term Facility $ — $ 32.5

Senior Notes, 4.000% interest, due August 15, 2029 550.0 550.0

2 unchanged sentences

Total debt $ 621.7 $ 648.0

The Company’s Credit Agreement provides for a term loan A facility (the “Term Facility”) and for a revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Senior Credit Facilities”).

The maturity date of the loans under the Senior Credit Facilities is October 21, 2026.

The Credit Agreement provides for a debt capacity of up to an aggregate debt amount (including outstanding term loan principal and revolver commitment amounts in addition to permitted incremental debt) not to exceed $ 2.0 billion unless certain specified conditions set forth in the Credit Agreement are met.

The Term Facility requires quarterly principal payments with a balloon payment due on October 21, 2026.

The scheduled principal payments due under the Term Facility over the next 12 month s total $ 10.0 million as of December 28, 2024 and are recorded as current maturities of long-term debt on the consolidated balance sheets.

In addition, the Company made payments towards the Term Facility in accordance with disposition proceeds language contained in the Credit Agreement.

The Revolving Facility allows the Company to borrow up to an aggregate amount of $ 800.0 million.

On September 24 2025, the Company entered into a 2025 Replacement Facility Amendment and Reaffirmation Agreement (the “Credit Agreement”) to replace the existing revolving credit facility and term loan A facility.

The new Credit Agreement provides for a revolving credit facility of $ 600.0 million (the “Revolving Facility”).

The maturity date of the loans under the Revolving Facility is September 24, 2030.

The Credit Agreement provides for a debt capacity of up to an aggregate debt amount (including existing revolver commitment amounts in addition to permitted incremental debt) not to exceed $ 850.0 million.

The Revolving Facility also includes a $ 75.0 million swingline subfacility and a $ 50.0 million letter of credit subfacility.

The Company had outstanding letters of credit under the Revolving Facility of $ 6.0 million and $ 6.6 million as of December 28, 2024 and December 30, 2023, respectively.

The Company had outstanding letters of credit under the Revolving Facility (or the prior revolving credit facility, as applicable) of $ 14.5 million and $ 6.0 million as of January 3, 2026 and December 28, 2024, respectively.

These outstanding letters of credit reduce the borrowing capacity under the Revolving Facility.

The interest rates applicable to amounts outstanding under Term Facility and to U.S.

dollar denominated amounts outstanding under the Revolving Facility are, at the Company’s option, either (1) the Alternate Base Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 0.125 % to 1.000 %, or (2) the Eurocurrency Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 1.125 % to 2.000 % (all capitalized terms used in this sentence are as defined in the Credit Agreement).

At December 28, 2024, the Term Facility and the Revolving Facility had a weighted-average interest rate of 5.84 %.

Loans under the Revolving Facility bear interest at a variable rate equal to either (i) the applicable base rate or (ii) the Secured Overnight Financing Rate (“SOFR”), plus in each case an interest margin determined by the Company’s net total leverage ratio, with a range of base rate margins from 0.250 % to 1.250 %, and a range of SOFR margins from 1.250 % to 2.250 %.

At January 3, 2026, the Revolving Facility had a weighted-average interest rate of 6.12 %.

The obligations of the Company pursuant to the Credit Agreement are guaranteed by substantially all of the Company’s material domestic subsidiaries and secured by substantially all of the personal and real property of the Company and its material domestic subsidiaries, subject to certain exceptions.

The Senior Credit Facilities also contain certain affirmative and negative covenants, including covenants that limit the ability of the Company and its Restricted Subsidiaries to, among other things:

The Revolving Facility also contain certain affirmative and negative covenants, including covenants that limit the ability of the Company and its Restricted Subsidiaries to, among other things:

incur or guarantee indebtedness;

2 unchanged sentences

consummate asset sales, acquisitions or mergers;

prepay certain other

indebtedness;

prepay certain other indebtedness;

or make investments, as well as covenants restricting the activities of certain foreign subsidiaries of the Company that hold intellectual property related assets.

Further, the Senior Credit Facilities require compliance with the following financial covenants:

a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (all capitalized terms used in this paragraph are as defined in the Senior Credit Facilities).

As of December 28, 2024, the Company was in compliance with all covenants and performance ratios under the Senior Credit Facilities.

On December 21, 2023, the Company entered into the fifth amendment (the "Fifth Amendment") to its Credit Agreement, dated as of July 31, 2012.

The Fifth Amendment provides the Company with additional allowable disposition capacity in fiscal 2023 and fiscal 2024 to support the Company's transformation.

Further, the Revolving Facility requires compliance with the following financial covenants:

a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (all capitalized terms used in this paragraph are as defined in the Revolving Facility).

As of January 3, 2026, the Company was in compliance with all covenants and performance ratios under the Revolving Facility.

The Company’s $ 550.0 million 4.000 % senior notes issued on August 26, 2021 are due on August 15, 2029.

1 unchanged sentence

The senior notes are guaranteed by substantially all of the Company’s domestic subsidiaries.

The Company has a foreign revolving credit facility with aggregate available borrowing s of $ 1.0 million that are un committed and, therefore, each borrowing against the facility is subject to approval by the lender.

There were no borrowings against this facility as of December 28, 2024 and December 30, 2023.

The Company included in interest expense the amortization of deferred financing costs of $ 2.7 million, $ 2.6 million, and $ 2.2 million in fiscal years 2025, 2024 and 2023 respectively.

Annual maturities of debt for the fiscal years subsequent to December 28, 2024 are as follows:

Annual maturitie s of debt for the fiscal years subsequent to January 3, 2026 are as follows:

(In millions) 2026 2027 2028 2029 2030 Thereafter

3 unchanged sentences

Property, plant and equipment consisted of the following:

(In millions) December 28,

(In millions) January 3,

2026 December 28, 2024

18 unchanged sentences

Operating lease assets obtained in exchange for lease liabilities 16.7 16.2

The weighted-average discount rate for operating leases as of December 28, 2024 is 5.1 %.

The weighted-average remaining lease term for operating leases as of December 28, 2024 is 7.0 years.

Future undiscounted cash flows for operating leases for the fiscal periods subsequent to December 28, 2024 are as follows:

The weighted-average discount rate for operating leases as of January 3, 2026 was 5.7 %.

The weighted-average remaining lease term for operating leases as of January 3, 2026 was 6.6 years.

Future undiscounted cash flows for operating leases for the fiscal periods subsequent to January 3, 2026 are as follows:

(In millions) Operating Leases

3 unchanged sentences

Recognized lease liability $ 140.3

The Company did not enter into any real estate leases with commencement dates subsequent to December 28, 2024.

The Company did not enter into any real estate leases with commencement dates subsequent to January 3, 2026.

DERIVATIVE FINANCIAL INSTRUMENTS

1 unchanged sentence

dollar inventory purchases made by non-U.S.

wholesale operations in the normal course of business.

These foreign currency forward exchange hedge contracts extended out to a maximum of 531 days and 531 days as of December 28, 2024 and December 30, 2023, respectively.

wholesale operations in the normal course of

These foreign currency forward exchange hedge contracts extended out to a maximum of 503 days and 531 days as of January 3, 2026 and December 28, 2024, respectively.

If, in the future, the foreign exchange contracts are determined not to be highly effective or are terminated before their contractual termination dates, the Company would remove the hedge designation from those contracts and reclassify into earnings the unrealized gains or losses that would otherwise be included in accumulated other comprehensive income (loss) within stockholders’ equity.

1 unchanged sentence

Foreign currency derivatives not designated as hedging instruments are offset by foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities.

The Company has an interest rate swap arrangement, which unless otherwise terminated, will mature on May 30, 2025 .

This agreement, which exchanges floating rate interest payments for fixed rate interest payments over the life of the agreement without the exchange of the underlying notional amounts, has been designated as a cash flow hedge of the underlying debt.

The notional amount of the interest rate swap arrangement is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss.

The differential paid or received on the interest rate swap arrangement is recognized as interest expense, net.

In accordance with ASC 815, the Company has formally documented the relationship between the interest rate swap and the variable rate borrowing, as well as its risk management objective and strategy for undertaking the hedge transactions.

This process included linking the derivative to the specific liability or asset on the balance sheet.

The Company also assessed at the inception of the hedge, and continues to assess on an ongoing basis, whether the derivative used in the hedging transaction is highly effective in offsetting changes in the cash flows of the hedged item.

The Company had an interest rate swap arrangement, which matured on May 30, 2025 .

The agreement exchanged floating rate interest payments for fixed rate interest payments over the life of the agreement without the exchange of the underlying notional amounts.

The differential paid or received on the interest rate swap arrangement was recognized as interest expense, net.

The notional amounts of the Company’s derivative instruments are as follows:

(Dollars in millions) December 28,

(Dollars in millions) January 3,

2026 December 28,

2 unchanged sentences

The recorded fair values of the Company’s derivative instruments are as follows:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

8 unchanged sentences

The Company recognized stock-based compensation expense of $ 24.4 million, $ 19.1 million and $ 15.2 million and related income tax benefits of $ 4.8 million, $ 3.7 million and $ 2.9 million for grants under its stock-based compensation plans in the statements of operations for fiscal years 2025, 2024 and 2023, respectively.

As of December 28, 2024, the Company had 5,043,053 stock incentive units (stock options, stock appreciation rights, restricted stock, restricted stock units and common stock) available for issuance under the Stock Incentive Plan of 2024 ("Stock Plan").

As of January 3, 2026, the Company had 4,790,839 stock incentive units (stock options, stock appreciation rights, restricted stock, restricted stock units and common stock) available for issuance under the Stock Incentive Plan of 2024 ("Stock Plan").

Each stock option or stock appreciation right granted counts as 1.0 stock incentive unit.

8 unchanged sentences

The Board of Directors awards an annual grant of Performance Awards to certain plan participants.

The number of Performance Awards that will be earned (and eligible to vest) during the performance period will depend on the Company’s level of success in achieving two specifically identified performance targets.

The number of Performance Awards that will be earned (and eligible to vest) during the performance period will depend on the Company’s level of success

in achieving two specifically identified performance targets.

Any portion of the Performance Awards that are not earned by the end of the three-year measurement period will be forfeited.

5 unchanged sentences

Awards Weighted-

Unvested at January 1, 2022 1,208,000 $ 33.62 764,415 $ 35.69

Unvested at December 31, 2022 1,516,478 $ 28.95 774,654 $ 34.14

Granted 1,678,585 13.66 686,294 14.82

9 unchanged sentences

Forfeited ( 193,012 ) 13.64 ( 188,956 ) 13.06

Unvested at December 28, 2024 2,768,895 $ 11.32 2,112,286 $ 18.72

As of December 28, 2024, there was $ 17.0 million of unrecognized compensation expense related to unvested Restricted Awards, which is expected to be recognized over a weighted-average period of 1.2 years.

The total fair value of Restricted Awards vested during the year ended December 28, 2024 was $ 8.5 million.

Unvested at January 3, 2026 2,046,096 $ 13.96 2,126,047 $ 13.20

As of January 3, 2026, there was $ 14.8 million of unrecognized compensation expense related to unvested Restricted Awards, which is expected to be recognized over a weighted-average period of 1.3 years.

The total fair value of Restricted Awards vested during the year ended January 3, 2026 was $ 27.1 million.

As of December 28, 2024, there was $ 17.0 million of unrecognized compensation expense related to unvested Restricted Awards, which was expected to be recognized over a weighted-average period of 1.2 years.

2 unchanged sentences

The total fair value of Restricted Awards vested during the year ended December 30, 2023 was $ 11.1 million.

As of December 28, 2024, there was $ 8.2 million of unrecognized compensation expense related to unvested Performance Awards, which is expected to be recognized over a weighted-average period of 1.7 years.

The total fair value of Performance Awards vested during the year ended December 28, 2024 was $ 0.5 million.

As of January 3, 2026, there was $ 9.8 million of unrecognized compensation expense related to unvested Performance Awards, which is expected to be recognized over a weighted-average period of 1.7 years.

The total fair value of Performance Awards vested during the year ended January 3, 2026 was $ 4.6 million.

As of December 28, 2024, there was $ 8.2 million of unrecognized compensation expense related to unvested Performance Awards, which was expected to be recognized over a weighted-average period of 1.7 years.

3 unchanged sentences

Stock Options

The Company estimated the fair value of employee stock options on the date of grant using the Black-Scholes-Merton formula.

The estimated weighted-average fair value for each option granted was $ 8.46 per share for fiscal year 2022.

A summary of the stock option transactions is as follows:

Shares Under Option Weighted-Average Exercise Price Average Remaining Contractual Term (Years)

Shares Under Option Weighted-Average Grant Date Price Average Remaining Contractual Term (Years)

Aggregate Intrinsic Value

(In millions)

Outstanding at January 1, 2022 2,488,812 $ 22.29 3.2 $ 16.7

Granted 20,171 25.19

Outstanding at December 31, 2022 2,333,410 $ 22.43 2.4 $ —

Exercised ( 6,042 ) 16.51

6 unchanged sentences

Canceled ( 459,334 ) 28.56

Outstanding at December 28, 2024 1,330,529 $ 21.74 1.0 $ 4.2

Unvested at December 28, 2024 ( 1,127 )

Exercisable at December 28, 2024 1,329,402 $ 21.74 1.0 $ 4.2

Outstanding and exercisable at January 3, 2026 153,662 $ 23.68 1.5 $ —

The total pretax intrinsic value of stock options exercised during fiscal years 2025, 2024 and 2023 was $ 8.2 million, $ 0.9 million and $ 0.0 million, respectively.

There was no unrecognized compensation expense related to stock option grants as of December 28, 2024 and as of December 30, 2023.

As of December 31, 2022, there was $ 0.1 million of unrecognized compensation expense related to stock option awards expected to be recognized over a weighted-average period of 0.9 years.

There was no unrecognized compensation expense related to stock option grants as of January 3, 2026 and as of December 28, 2024.

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price as of each fiscal year end, which would have been received by the option holders had all option holders exercised options, where the market price o f the Company's stock was above the strike price ("in-the-money"), as of that date.

As of December 28, 2024, 750,351 outstanding options were exercisable and in-the-money.

There were no in-the-money options exercisable as of December 30, 2023.

The Company’s closing stock price was $ 22.48 per share as of December 28, 2024 and $ 8.89 per share as of December 30, 2023.

As of January 3, 2026, 11,088 outstanding options were exercisable and in-the-money.

There were 750,351 in-the-money options exercisable as of December 28, 2024.

The Company’s closing stock price was $ 18.21 per share as of January 3, 2026 and $ 22.48 per share as of December 28, 2024.

RETIREMENT PLANS

The Company has two non-contributory, defined benefit pension plans that provide retirement benefits to less than half of its domestic employees.

The Company’s principal defined benefit pension plan, which is closed to new participants, provides benefits based on the employee’s years of service and final average earnings.

The second plan is closed to new participants and no longer accrue future benefits.

The Company has one non-contributory, defined benefit pension plan that provides retirement benefits to certain of its domestic employees.

The Company’s defined benefit pension plan, which is closed to new participants and no longer accrues future benefits, provides benefits based on the employee’s years of service and final average earnings.

The Company has a Supplemental Executive Retirement Plan (the “SERP”) for certain current and former employees that entitles a participating employee to receive payments from the Company following retirement based on the employee’s years of service and final average earnings (as defined in the SERP).

Under the SERP, the employees can elect early retirement with a corresponding reduction in benefits.

The Company also has individual deferred compensation agreements with certain former employees that entitle those employees to receive payments from the Company following retirement, generally for the duration of their lives.

The Company maintains life insurance policies with a cash surrender value of $ 42.3 million at December 28, 2024 and $ 48.3 million at December 30, 2023 recognized as other assets on the consolidated balance sheets that are intended to partially fund deferred compensation benefits under the SERP and deferred compensation agreements.

The Company maintains life insurance policies with a cash surrender value of $ 35.3 million at January 3, 2026 and $ 42.3 million at December 28, 2024 recognized as other assets on the consolidated balance sheets that are intended to partially fund deferred compensation benefits under the SERP.

The Company has two defined contribution 401(k) plans covering substantially all domestic employees that provide for discretionary Company contributions based on the amount of participant deferrals.

2 unchanged sentences

Contributions to these plans were $ 1.7 million, $ 1.4 million and $ 1.6 million in fiscal years 2025, 2024 and 2023, respectively.

The Company also has a benefit plan at a

foreign location that provides for retirement benefits based on years of service.

The obligation recorded under this plan was $ 0.1 million at December 28, 2024 and $ 0.6 million at December 30, 2023 and was recognized as a deferred compensation liability on the consolidated balance sheets.

The following summarizes the status of and changes in the Company’s assets and related obligations for its pension plans (which include the Company’s defined benefit pension plans and the SERP) for the fiscal years 2024 and 2023:

(In millions) 2025 2024

7 unchanged sentences

( 20.7 ) ( 31.0 )

( 60.0 ) ( 9.1 )

Projected benefit obligations at end of the year

7 unchanged sentences

( 20.7 ) ( 31.0 )

( 60.0 ) ( 9.1 )

Fair value of pension assets at end of the year

7 unchanged sentences

Funded status of qualified defined benefit plans and SERP $ ( 60.8 ) $ ( 75.5 )

Unrecognized net actuarial loss recognized in accumulated other comprehensive income was $ 7.6 million and $ 10.7 million, and amounts net of tax were $ 6.3 million and $ 8.7 million, as of December 28, 2024 and December 30, 2023, respectively.

The accumulated benefit obligations for all defined benefit pension plans and the SERP were $ 294.0 million at December 28, 2024 and $ 334.7 million at December 30, 2023.

The decrease in benefit obligation for fiscal 2024 was the result of benefits paid to plan participants and actuarial gains caused by changes to the discount rate.

The actuarial loss included in accumulated other comprehensive loss and expected to be recognized in net periodic pension income during fiscal 2025 is $ 1.7 million.

Unrecognized net actuarial gain (loss) recognized in accumulated other comprehensive income was $ 1.7 million and $( 7.6 ) million, and amounts net of tax were $ 1.0 million and $( 6.3 ) million, as of January 3, 2026 and December 28, 2024, respectively.

The accumulated benefit obligations for the defined benefit pension plan and the SERP were $ 236.7 million at January 3, 2026 and $ 294.0 million at December 28, 2024.

The decrease in benefit obligation for fiscal 2025 was the result of benefits paid to plan participants and benefit obligation settlement.

There are no actuarial losses included in accumulated other comprehensive loss that will be recognized in net periodic pension income during fiscal 2026.

The following is a summary of net pension and SERP expense recognized by the Company:

3 unchanged sentences

Expected return on pension assets ( 17.1 ) ( 19.6 ) ( 18.5 )

Net amortization loss (gain) ( 1.7 ) ( 0.7 ) 11.3

Net amortization gain ( 1.7 ) ( 1.7 ) ( 0.7 )

Curtailment ( 3.2 ) — ( 1.0 )

Settlement 2.7 0.9 —

Net pension expense $ 0.2 $ 0.7 $ 9.3

Net pension expense (income) $ ( 1.0 ) $ 0.2 $ 0.7

SERP expense 4.5 4.1 3.9

Qualified defined benefit pension plans expense (income) $ ( 3.9 ) $ ( 3.2 ) $ 5.5

Qualified defined benefit pension plans income $ ( 5.5 ) $ ( 3.9 ) $ ( 3.2 )

The non-service cost components of net pension expense is recorded in the Other expense (income), net line item on the consolidated statements of operations and comprehensive income.

27 unchanged sentences

fixed income investments.

The target investment allocations as of December 28, 2024 were 44 % in equity securities and 56 % in fixed income securities.

The target investment allocations as of January 3, 2026 were 54 % in equity securities and 46 % in fixed income securities.

Within the equity and fixed income classifications, the investments are diversified.

The Company’s asset allocations by asset category and fair value measurement are as follows:

December 28, 2024 December 30, 2023

(In millions) Total % of Total Total % of Total

Total Plan Fair Value Measurements

(In millions) Assets Level 1 Level 2 Level 3

January 3, 2026

Equity securities $ 87.6 $ 87.6 $ — $ —

46.0 % $ 122.7 1

Fixed income securities 9.3 9.3 — —

34.9 % 85.8 1

Cash 4.2 4.2 — —

Fair value of plan assets $ 227.9 100.0 % $ 262.7 100.0 %

Total plan assets in the fair value hierarchy $ 101.1 $ 101.1 $ — $ —

Plan assets measured at net asset value 1

Cash equivalents $ 36.4

Fixed income securities 39.8

Alternative investments 1.4

Total plan assets measured at net asset value $ 77.6

Total plan assets $ 178.7

1 In accordance with ASC 820, Fair Value Measurement (“ASC 820”), certain investments are measured at fair value using the net asset value per share as a practical expedient.

These assets have not been classified in the fair value hierarchy .

2 In accordance with ASC 820, investments have been measured using valuation techniques in which one or more significant inputs are unobservable (Level 3).

See Note 1 for additional information.

Total Plan Fair Value Measurements

(In millions) Assets Level 1 Level 2 Level 3

December 28, 2024

Equity securities $ 104.8 $ 104.8 $ — $ —

Fixed income securities 11.7 11.7 — —

Cash 4.5 4.5 — —

Total plan assets in the fair value hierarchy $ 121.0 $ 121.0 $ — $ —

Plan assets measured at net asset value 1

Cash equivalents $ 37.4

Fixed income securities 67.9

Alternative investments 1.6

Total plan assets measured at net asset value $ 106.9

Total plan assets $ 227.9

1 In accordance with ASC 820, Fair Value Measurement (“ASC 820”), certain investments are measured at fair value using the net asset value per share as a practical expedient.

These assets have not been classified in the fair value hierarchy.

The Company does not expect to make any contributions to its qualified defined benefit pension plans in fiscal 2026 and expects to make $ 4.4 million in contributions to the SERP in fiscal 2026.

Expected benefit payments for the fiscal years subsequent to December 28, 2024 are as follows:

Expected benefit payments for the fiscal years subsequent to January 3, 2026 are as follows:

(In millions) 2026 2027 2028 2029 2030 2031-2035

18 unchanged sentences

(In millions) 1

Amount Percent

Income taxes at U.S.

statutory rate of 21% $ 25.5 21.0 %

State and local income taxes, net of federal income tax 2

Foreign tax effects

Statutory tax rate difference between Hong Kong and United States ( 1.7 ) ( 1.4 ) %

Nontaxable foreign source income exemption regime ( 5.4 ) ( 4.5 ) %

Other ( 0.2 ) ( 0.1 ) %

United Kingdom

Changes in valuation allowances 1.4 1.2 %

Other ( 0.1 ) ( 0.1 ) %

Withholding taxes 1.7 1.4 %

Changes in valuation allowances ( 0.3 ) ( 0.2 ) %

Other 0.3 0.2 %

Other 5.5 4.6 %

Effect of Cross-Border Tax Laws

Foreign-derived intangible income ( 2.5 ) ( 2.1 ) %

Other 1.5 1.2 %

Foreign withholding tax credit ( 6.6 ) ( 5.4 ) %

Other ( 0.5 ) ( 0.4 ) %

Nontaxable or Nondeductible Items

Share-based payment awards ( 2.3 ) ( 1.9 ) %

Non-deductible executive compensation 3.3 2.8 %

Other ( 1.0 ) ( 0.9 ) %

Changes in Unrecognized Tax Benefits ( 0.1 ) ( 0.1 ) %

Other 0.5 0.4 %

Income tax expense (benefit) 20.5 16.9 %

1 Disaggregated in accordance with ASU 2023-09, which the Company adopted prospectively in 2025.

2 State taxes in California, Tennessee, Texas, and New York made up the majority (greater than 50% of the tax effect in this category.)

(In millions) 2024 2023

Income taxes at U.S.

statutory rate of 21% $ 12.2 $ ( 27.9 )

State income taxes, net of federal income tax ( 3.1 ) ( 2.0 )

7 unchanged sentences

Change in valuation allowance 0.5 29.0

Tax impact of impairment in foreign jurisdiction — — 3.0

Global Intangible Low Tax Income tax — 1.5

Foreign Derived Intangible Income tax benefit — — ( 8.2 )

Non-deductible executive compensation 1.4 ( 0.8 )

6 unchanged sentences

Significant components of the Company’s deferred income tax assets and liabilities are as follows:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

18 unchanged sentences

Net deferred income tax asset (liabilities) $ 55.5 $ 64.6

The valuation allowance for deferred income tax assets as of December 28, 2024 and December 30, 2023 was $ 56.2 million and $ 55.6 million, respectively.

The valuation allowance for deferred income tax assets as of January 3, 2026 and December 28, 2024 was $ 61.6 million and $ 56.2 million, respectively.

The net increase in the total valuation allowance during fiscal 2025 was $ 5.4 million.

5 unchanged sentences

tax jurisdiction.

The current year change in the valuation allowance results in a decrease against the state deferred tax assets of $ 0.4 million, an increase related to state net operating loss carryforward of $ 3.9 million, a decrease related to U.S.

federal capital loss carryforward of $ 0.4 million, and a net decrease relating to the foreign net operating losses and foreign tax credits and other deferred tax assets of $ 2.5 million.

At December 28, 2024, the Company had foreign net operating loss carryforwards of $ 33.3 million, which have expirations ranging from 2025 to an unlimited term during which they are available to offset future foreign taxable income.

The current year change in the valuation allowance results in a decrease against the

state deferred tax assets of $ 0.4 million, an increase related to the state net operating loss carryforward of $ 1.0 million, and a net increase relating to the foreign net operating losses and foreign tax credits and other deferred tax assets of $ 4.8 million.

At January 3, 2026, the Company had foreign net operating loss carryforwards of $ 41.8 million, which have expirations ranging from 2026 to an unlimited term during which they are available to offset future foreign taxable income.

The Company had U.S.

federal capital loss carryforwards, federal net operating loss carryforwards and Internal Revenue Code section 163(j) interest expense carryforwards of $ 103.5 million, $ 44.1 million, and $ 107.9 million respectively, which have expirations ranging from 2029 to an unlimited term during which they are available to offset future U.S.

federal capital loss carryforwards and Internal Revenue Code section 163(j) interest expense carryforwards of $ 103.4 million and $ 105.9 million respectively, which have expirations ranging from 2029 to an unlimited term during which they are available to offset future U.S.

federal taxable income.

9 unchanged sentences

Unrecognized tax benefits at end of the year $ 1.4 $ 1.6

The portion of the unrecognized tax benefits that, if recognized currently, would reduce the annual effective tax rate was $ 1.6 million and $ 2.6 million as of December 28, 2024 and December 30, 2023, respectively.

The portion of the unrecognized tax benefits that, if recognized currently, would reduce the annual effective tax rate was $ 1.4 million and $ 1.6 million as of January 3, 2026 and December 28, 2024, respectively.

The Company recognizes interest and penalties related to unrecognized tax benefits through interest expense and income tax expense, respectively.

Interest accrued related to unrecognized tax benefits was $ 0.3 million and $ 0.5 million as of December 28, 2024 and December 30, 2023, respectively.

Interest accrued related to unrecognized tax benefits was $ 0.3 million and $ 0.3 million as of January 3, 2026 and December 28, 2024, respectively.

The Company is subject to periodic audits by domestic and foreign tax authorities.

5 unchanged sentences

income tax examinations by tax authorities for years before 2020.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company does not expect these provisions and modifications to have a material impact on the consolidated financial statements.

The Company intends to repatriate cash held in foreign jurisdictions and as such has recorded a deferred tax liability related to additional state taxes and foreign withholding taxes on the future dividends received in the U.S.

1 unchanged sentence

The Company intends to permanently reinvest all non-cash undistributed earnings outside of the U.S.

and has, therefore, not established a deferred tax liability on the amount of non-cash foreign undistributed earnings of $ 37.9 million at December 28, 2024.

and has, therefore, not established a deferred tax liability on the amount of non-cash foreign undistributed earnings of $ 0.5 million at January 3, 2026.

However, if these non-cash undistributed earnings were repatriated, the Company would be required to accrue and pay applicable U.S.

2 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income represents net earnings and any revenue, expenses, gains and losses that, under U.S.

Accumulated other comprehensive income (loss) represents net earnings and any revenue, expenses, gains and losses that, under U.S.

GAAP, are excluded from net earnings and recognized directly as a component of stockholders’ equity.

20 unchanged sentences

22.5 ( 8.4 ) 7.3 21.4

Balance at December 28, 2024 $ ( 132.8 ) $ ( 8.7 ) $ ( 6.3 ) $ ( 147.8 )

Balance at January 3, 2026 $ ( 110.3 ) $ ( 17.1 ) $ 1.0 $ ( 126.4 )

(1) Other comprehensive income (loss) is reported net of taxes and noncontrolling interest.

1 unchanged sentence

Amounts related to foreign currency derivatives that are no longer deemed to be highly effective are included in other income.

Amounts related to interest rate swaps are included in interest expense.

(3) Amounts reclassified are included in the computation of net pension expense.

4 unchanged sentences

Quoted Prices With Other Observable Inputs (Level 2)

(In millions) December 28, 2024 December 30, 2023

(In millions) January 3, 2026 December 28, 2024

Financial assets:

5 unchanged sentences

Indefinite-lived intangible assets and goodwill are tested annually, or if a triggering event occurs that indicates an impairment loss may have been incurred, using fair value measurements with unobservable inputs (Level 3).

In the third quarter of 2023, based on the results of the impairment testing, the Company recognized impairment charges of $ 38.3 million to the Sperry ® trade name.

In the third quarter of 2023, based on the results of the impairment testing, the Company recognized impairment charges of $ 38.3 million to the Sperry ®

Refer to Note 4, “Goodwill and Other Intangible Assets” for additional discussion on the Sperry ® trade name impairment .

3 unchanged sentences

The carrying value and the fair value of the Company’s debt are as follows:

(In millions) December 28, 2024 December 30, 2023

(In millions) January 3, 2026 December 28, 2024

Carrying value $ 621.7 $ 648.0

8 unchanged sentences

PFOA and PFOS help provide non-stick, stain-resistant, and water-resistant qualities, and were used for many decades in commercial products like firefighting foams and metal plating, and in common consumer items like food wrappers, microwave popcorn bags, pizza boxes, Teflon™, carpets and Scotchgard™.

In May 2016, the Environmental Protection Agency (“EPA”) announced a lifetime health advisory level of 70 parts per trillion (“ppt”) combined for PFOA and PFOS, which the EPA reduced in June 2022 to 0.004 ppt and 0.02 ppt for PFOA and PFOS, respectively.

In January 2018, the Michigan Department of Environmental Quality (“MDEQ”, now known as the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”)) enacted a drinking water criterion of 70 ppt combined for PFOA and PFOS, which set an official state standard for acceptable concentrations of these contaminants in groundwater used for drinking water purposes.

In May 2016, the Environmental Protection Agency (“EPA”) announced a lifetime health advisory level of 70 parts per trillion (“ppt”) combined for PFOA and PFOS.

In January 2018, the Michigan Department of Environmental Quality (now known as the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”)) enacted a drinking water criterion of 70 ppt combined for PFOA and PFOS, which set an official state standard for acceptable concentrations of these contaminants in groundwater used for drinking water purposes.

On August 3, 2020, Michigan changed the standards for PFOA and PFOS in drinking water to 8 and 16 ppt, respectively, and set standards for four other PFAS substances.

3 unchanged sentences

Plainfield and Algoma Townships intervened in the EGLE Action alleging claims under RCRA, NREPA, the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and common law nuisance.

On February 3, 2020, the parties entered into a consent decree resolving the EGLE Action, which was approved by U.S.

District Judge Janet T.

Neff on February 19, 2020 (the “Consent Decree”).

On February 3, 2020, the parties entered into a consent decree resolving the EGLE Action, which was approved by the U.S.

District Judge on February 19, 2020 (the “Consent Decree”).

Under the Consent Decree, the Company agreed to pay for an extension of Plainfield Township’s municipal water system to more than 1,000 properties in Plainfield and Algoma Townships, subject to an aggregate cap of $69.5 million.

The Company also agreed to continue maintaining water filters for certain homeowners, resample certain residential wells for PFAS, continue remediation at the Company’s Tannery property and House Street site, and conduct further investigations and monitoring to assess the presence of PFAS in area groundwater.

The Company’s activities under the Consent Decree are not materially impacted by either the drinking water standards that became effective on August 3, 2020, or the EPA’s revised advisory levels issued in June 2022.

On December 19, 2018, the Company filed a third-party complaint against 3M Company seeking, among other things, recovery of the Company’s remediation and other costs incurred in defense of the EGLE Action ("the 3M Action").

On June 20, 2019, the 3M Company filed a counterclaim against the Company in response to the 3M Action, seeking, among other things, contractual and common law indemnity and contribution under CERCLA and Part 201 of NREPA.

On February 20, 2020, the Company and 3M Company entered into a settlement agreement resolving the 3M Action, under which 3M Company paid the Company a lump sum amount of $ 55.0 million during the first quarter of 2020.

On January 10, 2018, the EPA entered a Unilateral Administrative Order (the “Order”) under Section 106(a) of CERCLA, 42 U.S.C.

§ 9606(a) with an effective date of February 1, 2018.

The Order pertained to specified removal actions at the Company's Tannery and House Street sites, including certain time critical removal actions subsequently identified in an April 29, 2019 letter from the EPA, to abate the actual or threatened release of hazardous substances at or from the sites.

On October 28, 2019, the EPA and the Company entered into an Administrative Settlement and Order on Consent (“AOC”) that supersedes the Order and addresses the agreed-upon removal actions outlined in the Order.

The Company has completed the activities required by the AOC.

Separately, in February 2020, the Company entered into a settlement agreement with 3M Company for costs incurred in the defense of the EGLE Action.

The Company discusses its reserve for remediation costs in the environmental liabilities section below.

Individual and Class Action Litigation

Beginning in late 2017, individual lawsuits and three putative class action lawsuits were filed against the Company that raise a variety of claims, including claims related to property, remediation, and human health effects.

The three putative class action lawsuits were subsequently refiled in the U.S.

District Court for the Western District of Michigan as a single consolidated putative class action lawsuit.

Beginning in late 2017, individual lawsuits and three putative class action lawsuits, later consolidated into one, were filed against the Company that raise a variety of claims, including claims related to property, remediation, and human health effects.

3M Company has been named as a co-defendant in the individual lawsuits and consolidated putative class action lawsuit.

In addition, the current owner of a former landfill and gravel mining operation sued the Company seeking damages and cost recovery for property damage allegedly caused by the Company’s disposal of tannery waste containing PFAS.

The owner of another former landfill filed notice threatening suit and sent a demand letter to the Company seeking recovery for damages allegedly caused by the Company’s disposal of tannery waste containing PFAS (this notice, the former landfill and gravel mining suit and the individual lawsuits and putative class action, collectively, the “Litigation Matters”).

In addition, the owner of two landfills sued the Company in federal court in Michigan on December 4, 2025 seeking to recover PFAS response costs based on allegations that the tannery waste the landfills accepted from the Company contained PFAS (the "2025 Suit").

(The Landfill Suit, the Disposal Suit, the 2025 Suit, the individual lawsuits and putative class action, collectively, the “Litigation Matters”).

On January 11, 2022, the Company and 3M Company entered into a master settlement agreement with the law firm representing certain of the plaintiffs in the individual lawsuits included in the Litigation Matters, and each of these plaintiffs subsequently agreed to participate in the settlement.

5 unchanged sentences

On March 29, 2023, the court presiding over the putative class action granted final approval of the proposed settlement and dismissed the lawsuit with prejudice.

The last remaining Litigation Matter, the lawsuit filed by the current owner of a former landfill and gravel mining operations, was pending in Michigan state court but has been administratively stayed by the Court.

The Landfill Suit is pending and has been administratively stayed by the Michigan state court.

EGLE filed suit against the owner.

The final landfill owner that made the Disposal Claim agreed to negotiate before suit was filed and the parties settled on May 29, 2024.

For certain of the Litigation Matters described above, and as a result of developments during the 2025 fiscal year, the Company increased its accrual by $ 1.9 million.

The Company made related payments of $ 3.5 million in connection with the Litigation Matters described above during fiscal year 2025.

As of December 28, 2024, the Company had recorded liabilities of $ 10.1 million for certain of the Litigation Matters described above which are recorded as other accrued liabilities and other liabilities in the consolidated balance sheets.

As of January 3, 2026, the Company had recorded liabilities of $ 8.5 million for certain of the Litigation Matters described above which are recorded as other accrued liabilities and other liabilities in the consolidated balance sheets.

In December 2018, the Company filed a lawsuit against certain of its historic liability insurers, seeking to compel them to provide a defense against the Litigation Matters on the Company's behalf and coverage for remediation efforts undertaken by, and indemnity provided by, the Company.

Following the last recovery payment recieved, the lawsuit was dismissed in December 2024.

The Company recognized certain recoveries from legacy insurance policies in 2024 and 2023.

Following the last recovery payment received, the lawsuit was dismissed in December 2024.

The Company recognized certain recoveries from legacy insurance policies in 2024.

Other Litigation

11 unchanged sentences

$ 26.5 $ 39.7

The reserve balance as of December 28, 2024 includes $ 19.4 million that is expected to be paid within the next twelve months and is recorded as a current obligation in other accrued liabilities, with the remaining $ 20.3 million expected to be paid over the course of up to 25 years, recorded in other liabilities .

The reserve balance as of January 3, 2026 includes $ 12.0 million that is expected to be paid within the next twelve months and is recorded as a current obligation in other accrued liabilities, with the remaining $ 14.5 million expected to be paid over the course of up to 25 years, recorded in other liabilities .

The Company's remediation activity at the Tannery property, House Street site and other relevant operations or disposal sites is ongoing.

11 unchanged sentences

The Company has future minimum royalty and advertising obligations due under the terms of certain licenses held by the Company.

These minimum future obligations for the fiscal years subsequent to December 28, 2024 are as follows:

These minimum future obligations for the fiscal years subsequent to January 3, 2026 are as follows:

(In millions) 2026 2027 2028 2029 2030 Thereafter

7 unchanged sentences

BUSINESS SEGMENTS

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

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

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

2 unchanged sentences

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.

The Company's chief operating decision maker is the President and Chief Executive Officer.

The Company's chief operating decision maker is

the President and Chief Executive Officer.

The chief operating decision maker uses segment operating profit to assess the performance of and to allocate resources to each segment.

1 unchanged sentence

The Company also reports “Other” and “Corporate” categories.

Other 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 Corporate category consists of gains on the sale of businesses and trademarks, unallocated corporate expenses, such as corporate employee costs, corporate facility costs, IT 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.

27 unchanged sentences

Interest expense, net 42.7

Other expense, net 2.5

Loss before income taxes $ ( 134.2 )

Other income, net ( 3.3 )

Earnings before income taxes $ 58.1

Depreciation and amortization expense:

11 unchanged sentences

Interest expense, net 63.5

Other income, net ( 2.8 )

Other expense, net 2.5

Loss before income taxes $ ( 132.8 )

13 unchanged sentences

The location of the Company’s tangible long-lived assets, which comprises property, plant and equipment and lease right-of-use assets, is as follows:

(In millions) December 28,

(In millions) January 3,

2026 December 28,

6 unchanged sentences

While changes in suppliers could cause delays in manufacturing and a possible loss of sales, management believes that other suppliers could provide similar products on comparable terms.

VARIABLE INTEREST ENTITIES AND RELATED PARTY TRANSACTIONS

Assets and Liabilities of Consolidated VIEs

The Company had joint ventures, which were divested effective January 1, 2024, that sourced and marketed the Company’s footwear and apparel products in China.

Based upon the criteria set forth in FASB ASC 810, Consolidation , the Company had determined two of the consolidated joint ventures were variable interest entities (VIEs) of which the Company was the primary beneficiary and, as a result, the Company consolidated these VIEs.

The primary beneficiary determination was based on the relationship between the Company and the VIE, including contractual agreements between the Company and the VIE.

The Company had determined that two of the VIEs that were consolidated met the criteria to be classified as held for sale as of year end 2023.

Refer to Note 20, "Divestitures and Assets and Liabilities Held for Sale" for additional discussion.

Specifically, the Company had the power to direct the activities that were considered most significant to the entities’ performance and the Company had the obligation to absorb losses and the right to receive benefits that were significant to the entities.

The other equity holder’s interests were reflected in “net earnings (loss) attributable to noncontrolling interests” in the Consolidated Statement of Operations and “Noncontrolling interest” in the Consolidated Balance Sheets.

Assets held by the VIEs were only available to settle obligations of the respective entities.

Holders of liabilities of these VIEs did not have recourse to the Company.

The following is a summary of these VIE’s assets and liabilities included in the Company’s consolidated balance sheets.

(In millions) 2023

Assets held for sale 51.6

Liabilities held for sale 15.4

Nonconsolidated VIEs

The Company also had two joint ventures, which were divested effective January 1, 2024, that were VIEs that were not consolidated as the Company did not have the power to direct the most significant activities that impact the VIEs' economic

The two VIEs distributed footwear and apparel products in the Asia Pacific region.

The Company had determined that the VIEs that were not consolidated met the criteria to be classified as held for sale as of year-end fiscal 2023.

Refer to Note 20, "Divestitures and Assets and Liabilities Held for Sale" for additional discussion.

Related Party Transactions

In the normal course of business, the Company entered into transactions with related party equity affiliates.

Related party transactions consisted of the sale of goods, made at arm’s length, and other arrangements.

For the fiscal year ended December 30, 2023 the Company recognized net sales to equity affiliates totaling $ 66.5 million.

For the fiscal year ended December 28, 2024, the Company did not recognize any sales to equity affiliates.

The following table summarizes related party transactions included in the consolidated balance sheets.

(In millions) 2023

Accounts receivable due from related parties $ 15.4

Long term liabilities due to related parties 1.4

DIVESTITURES AND ASSETS AND LIABILITIES HELD FOR SALE

5 unchanged sentences

On January 10, 2024, the Company entered into a Purchase Agreement with ABG Intermediate Holdings 2 LLC, an affiliate of Authentic Brands Group LLC.

(the "ABG Buyer"), pursuant to which the ABG Buyer agreed to purchase all of the outstanding equity of certain subsidiaries of the Company that own or hold for use intellectual property used by the Company exclusively in the footwear, apparel, and accessories business conducted by the Company under the Sperry ® brand.

the footwear, apparel, and accessories business conducted by the Company under the Sperry ® brand.

In addition, on January 10, 2024 the Company entered into an Inventory Purchase Agreement with Aldo U.S.

12 unchanged sentences

As of December 30, 2023, the Company recognized an impairment charge of $ 1.8 million.

In determining the amount of the

impairment loss for the assets of this transaction during the fourth quarter of 2023, the Company included $ 0.8 million of accumulated foreign currency translation losses, which were classified within AOCI.

In determining the amount of the impairment loss for the assets of this transaction during the fourth quarter of 2023, the Company included $ 0.8 million of accumulated foreign currency translation losses, which were classified within AOCI.

Divestiture of Asia-based Leathers Business

31 unchanged sentences

The proceeds from the sales were used to reduce outstanding revolver borrowings.

Assets and Liabilities Held for Sale

The Sperry ® business and the Merrell ® and Saucony ® China joint venture entities met the criteria to be classified as held for sale as of December 30, 2023, and therefore the Company reclassified the related assets and liabilities as held for sale on the consolidated balance sheets as of December 30, 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 balance sheets:

(In millions) 2023

Cash and cash equivalents $ 5.6

Accounts receivables, net 15.4

Inventories 83.3

Other current assets 2.9

Property, plant and equipment, net 3.8

Lease right-of-use assets

Goodwill 43.0

Indefinite-lived intangibles 67.0

Amortizable intangibles, net 21.0

Other assets 7.8

Impairment of carrying value ( 96.8 )

Total assets held for sale 160.6

Accounts payable 4.8

Lease liabilities 9.0

Accrued liabilities 9.0

Other liabilities 1.4

Total liabilities held for sale $ 24.2

Report of Independent Registered Public Accounting Firm

2 unchanged sentences

We have audited the accompanying consolidated balance sheets of Wolverine World Wide, Inc.

and subsidiaries (the Company) as of December 28, 2024 and December 30, 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 28, 2024 and December 30, 2023, and the results of its operations and its cash flows for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, in conformity with U.S.

and subsidiaries (the Company) as of January 3, 2026 and December 28, 2024, the related consolidated statements of operations, comprehensive income (loss) , stockholders' equity and cash flows for each of the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 3, 2026 and December 28, 2024, and the results of its operations and its cash flows for the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2025 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2026 expressed an unqualified opinion thereon.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has elected to change its method of accounting for certain domestic inventory to the first-in, first-out ("FIFO") cost method from the last-in, first-out ("LIFO") cost method for all years presented.

Basis for Opinion

14 unchanged sentences

Valuation of goodwill and indefinite-lived intangibles

Description of the Matter At December 28, 2024, the carrying values of the Company’s Sweaty Betty trade name indefinite-lived intangible asset and the Sweaty Betty reporting unit goodwill were $98.4 million and $52.4 million, respectively.

Description of the Matter At January 3, 2026, the carrying values of the Company’s Sweaty Betty trade name indefinite-lived intangible asset and the Sweaty Betty reporting unit goodwill were $105.4 million and $56.2 million, respectively.

As discussed in Notes 1 and 4 to the consolidated financial statements, goodwill and indefinite-lived intangibles are tested for impairment at least annually.

5 unchanged sentences

Changes in these assumptions could have a significant impact on the fair values of the Sweaty Betty reporting unit and the Sweaty Betty trade name indefinite-lived intangible asset, the amount of any impairment charge, or both.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the impairment review process.

For example, we tested controls that address the risk of material misstatement relating to the valuation of the Sweaty Betty reporting unit and the Sweaty Betty trade name indefinite-lived intangible asset, including management’s review of the significant assumptions described above and the completeness and accuracy of the data used to develop such estimates.

To test the estimated fair values of the Sweaty Betty reporting unit and the Sweaty Betty trade name indefinite-lived intangible asset, our audit procedures included, among others, assessing the appropriateness of the valuation model used, evaluating the significant assumptions discussed above, and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions and estimates.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the impairment review processes.

Specifically, we tested controls that address the risk of material misstatement relating to the valuation of the Sweaty Betty reporting unit and the Sweaty Betty trade name indefinite-lived intangible asset, including management’s review of the significant assumptions described above and the completeness and accuracy of the data used to develop such estimates.

To test the estimated fair values of the Sweaty Betty reporting unit and the Sweaty Betty trade name indefinite-lived intangible asset, our audit procedures included, among others, assessing the appropriateness of the valuation models used, evaluating the significant assumptions discussed above, and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions and estimates.

We compared the financial projections to current industry and economic trends and the historical accuracy of management’s estimates.

8 unchanged sentences

We have audited Wolverine World Wide, Inc.

and subsidiaries’ internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

and subsidiaries’ internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, Wolverine World Wide, Inc.

and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 28, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 28, 2024 and December 30, 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated February 20, 2025 expressed an unqualified opinion thereon.

and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of January 3, 2026, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 3, 2026 and December 28, 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the fiscal years ended January 3, 2026, December 28, 2024 and December 30, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated February 27, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

19 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data