WOLVERINE WORLD WIDE INC DE

Previous wording

The Company’s brands are marketed in approximately 170 countries and territories at June 29, 2024, including through owned operations in the U.S., Canada, the United Kingdom and certain countries in continental Europe and Asia Pacific. In other regions (Latin America, portions of Europe and Asia Pacific, the Middle East and Africa), the Company relies on a network of third-party distributors, licensees and joint ventures. At June 29, 2024, the Company operated 121 retail stores in the U.S., Europe and Canada and 54 direct-to-consumer eCommerce sites.

Current wording

The Company’s brands are marketed in approximately 170 countries and territories at September 28, 2024, including through owned operations in the U.S., Canada, the United Kingdom and certain countries in continental Europe and Asia Pacific. In other regions (Latin America, portions of Europe and Asia Pacific, the Middle East and Africa), the Company relies on a network of third-party distributors, licensees and joint ventures. At September 28, 2024, the Company operated 120 retail stores in the U.S., Europe and Canada and 39 direct-to-consumer eCommerce sites.

Previous wording

•The effective tax rates in the second quarters of 2024 and 2023 were 13.1% and 19.8%, respectively.

Current wording

•The effective tax rates in the third quarters of 2024 and 2023 were 17.7% and 4.6%, respectively.

Previous wording

•Diluted earnings per share for the second quarter of 2024 were $0.17 per share compared to diluted earnings per share of $0.30 per share for the second quarter of 2023.

Current wording

•Diluted earnings per share for the third quarter of 2024 were $0.28 per share compared to diluted earnings per share of $0.11 per share for the third quarter of 2023.

Previous wording

•The Company declared cash dividends of $0.10 per share in the second quarters of both 2024 and 2023.

Current wording

•The Company declared cash dividends of $0.10 per share in the third quarters of both 2024 and 2023.

Previous wording

•Cash flow used in operating activities was $10.5 million for the first two quarters of 2024 compared to cash flow provided by operating activities of $45.9 million for the first two quarters of 2023.

Current wording

•Cash flow provided by operating activities was $97.7 million for the first three quarters of 2024 compared to cash flow provided by operating activities of $7.0 million for the first three quarters of 2023.

Previous wording

•Compared to the second quarter of 2023, inventory as of the second quarter of 2024 decreased $350.8 million, or 54.1%. As of the end of the second quarter of 2024, the Company had $18.9 million of inventory in-transit, which represents a decrease of $13.0 million as compared to the end of the second quarter of 2023.

Current wording

•Compared to the third quarter of 2023, inventory as of the third quarter of 2024 decreased $278.3 million, or 49.4%.

Previous wording

Revenue was $425.2 million for the second quarter of 2024, representing a decline of $163.9 million compared to the second quarter of 2023. The change in revenue reflected a $77.4 million, or 20.2%, decline from the Active Group, a $12.8 million, or 10.9%, decline from the Work Group, and a $73.7 million, or 83.8%, decline from Other. The Active Group’s revenue decrease was primarily driven by a decrease of $39.7 million from Saucony®, $33.9 million from Merrell® and $3.7 million from Chaco®. The Work Group’s revenue decrease was primarily driven by a decrease of $5.6 million from Cat®, $3.3 million from HYTEST®, $2.4 million from Harley-Davidson®, and $1.3 million from Wolverine®. The decline in Other revenue was primarily driven by a decrease in revenue from businesses that were sold in 2023 and 2024 and the licensing of the Hush Puppies®business, including decreases of $55.6 million from Sperry®, $10.9 million from the performance leathers business and $8.0 million from Hush Puppies®. Changes in foreign exchange rates decreased revenue by $0.7 million during the second quarter of 2024. Direct-to-consumer revenue decreased during the second quarter of 2024 by $19.0 million, or 14.4%, compared to the second quarter of 2023.

Current wording

Revenue was $440.2 million for the third quarter of 2024, representing a decrease of $87.5 million compared to the third quarter of 2023. The change in revenue reflected a $9.9 million, or 3.0%, decrease from the Active Group, a $13.9 million, or 11.3%, decrease from the Work Group, and a $63.7 million, or 83.7%, decrease from Other. The Active Group’s revenue decrease was primarily driven by a decrease of $11.5 million from Saucony®and $2.0 million from Chaco®partially offset by an increase of $2.2 million from Merrell®and $1.4 million from Sweaty Betty®. The Work Group’s revenue decrease was primarily driven by a decrease of $6.9 million from Wolverine®, $4.6 million from Cat®, and $0.9 million from Bates®. The decrease in Other revenue was primarily driven by a decrease in revenue from businesses that were sold in 2023 and 2024 and the licensing of the Hush Puppies®business, which includes decreases of $45.8 million from Sperry®, $8.2 million from the performance leathers business and $7.7 million from Hush Puppies®. Changes in foreign exchange rates increased revenue by $1.9 million during the third quarter of 2024. Direct-to-consumer revenue decreased during the third quarter of 2024 by $24.2 million, or 17.7%, compared to the third quarter of 2023.

Previous wording

Revenue was $820.1 million for the first two quarters of 2024, representing a decline of $368.4 million compared to the first two quarters of 2023. The change in revenue reflected a $173.5 million, or 22.6%, decrease from the Active Group, a $37.2 million, or 16.0%, decrease from the Work Group, and a $157.7 million, or 84.3%, decrease from Other. The Active Group’s revenue decrease was primarily driven by a decrease of $81.2 million from Merrell®, $72.2 million from Saucony® and $17.8 million from Chaco®. The Work Group’s revenue decrease was primarily driven by a decrease of $14.1 million from Cat®, $11.8 million from Wolverine®, $5.6 million from HYTEST®, $3.3 million from Harley-Davidson® and $2.4 million from Bates®. The decline in Other revenue was primarily driven by a decrease in revenue from businesses that were sold in 2023 and 2024 and the licensing of the Hush Puppies®business, including decreases of $116.1 million from Sperry®, $22.8 million from the performance leathers business, $16.4 million from Hush Puppies®and $6.5 million from Keds®. Changes in foreign exchange rates increased revenue by $2.3 million during the first two quarters of 2024. Direct-to-consumer revenue decreased during the first two quarters of 2024 by $39.1 million, or 15.1%, compared to the first two quarters of 2023.

Current wording

Revenue was $1,260.3 million for the first three quarters of 2024, representing a decrease of $455.9 million compared to the first three quarters of 2023. The change in revenue reflected a $183.4 million, or 16.7%, decrease from the Active Group, a $51.1 million, or 14.4%, decrease from the Work Group, and a $221.4 million, or 84.2%, decrease from Other. The Active Group’s revenue decrease was primarily driven by a decrease of $83.8 million from Saucony®, $79.0 million from Merrell®, and $19.7 million from Chaco®. The Work Group’s revenue decrease was primarily driven by a decrease of $18.7 million from Wolverine®, $18.7 million from Cat®, $6.4 million from HYTEST®, $4.0 million from Harley-Davidson® and $3.3 million from Bates®. The decrease in Other revenue was primarily driven by a decrease in revenue from businesses that were sold in 2023 and 2024 and the licensing of the Hush Puppies®business, which includes decreases of $162.0 million from Sperry®, $31.5 million from the performance leathers business, $24.1 million from Hush Puppies®and $6.5 million from Keds®. Changes in foreign exchange rates increased revenue by $4.3 million during the first three quarters of 2024. Direct-to-consumer revenue decreased during the first three quarters of 2024 by $63.3 million, or 16.0%, compared to the first three quarters of 2023.

Previous wording

Gross margin was 43.1% in the second quarter of 2024 compared to 38.7% in the second quarter of 2023. The gross margin increase in the second quarter was primarily driven by less end-of-life inventory sales, less supply chain costs and less promotional activity.

Current wording

Gross margin was 45.3% in the third quarter of 2024 compared to 40.8% in the third quarter of 2023. The gross margin increase in the third quarter was primarily driven by less end-of-life inventory sales and lower supply chain costs.

Previous wording

Gross margin was 44.5% in the first two quarters of 2024 compared to 39.0% during the first two quarters of 2023. The gross margin increase in the first two quarters of 2024 was primarily driven by favorable distribution channel mix, less end-of-life inventory sales, less supply chain costs and less promotional activity.

Current wording

Gross margin was 44.7% in the first three quarters of 2024 compared to 39.6% during the first three quarters of 2023. The gross margin increase in the first three quarters of 2024 was primarily driven by favorable distribution channel mix, less end-of-life inventory sales, lower supply chain costs and lower product costs.

Previous wording

Operating expenses decreased $27.6 million, from $181.7 million in the second quarter of 2023 to $154.1 million in the second quarter of 2024. The decrease was primarily driven by lower general and administrative costs ($14.2 million), lower impairment of long-lived assets ($12.4 million), lower selling costs ($11.9 million), lower advertising costs ($11.1 million), lower distribution costs ($5.4 million) and lower product development costs ($1.8 million), partially offset by higher environmental and other related costs, net of insurance recoveries ($13.7 million), higher incentive compensation costs ($8.7 million) and higher reorganization costs ($6.8 million). Environmental and other related costs were $10.8 million and $2.1 million in the second quarter of 2024 and 2023, respectively.

Current wording

Operating expenses decreased $24.1 million, from $188.1 million in the third quarter of 2023 to $164.0 million in the third quarter of 2024. The decrease was primarily driven by lower impairment of long-lived and intangible assets ($40.2 million), lower selling costs ($12.6 million), lower advertising costs ($7.3 million), lower distribution costs ($7.2 million), lower general and administrative costs ($6.5 million), lower reorganization costs ($3.7 million), lower product development costs ($1.7 million), and lower environmental and other related costs, net of insurance recoveries ($1.0 million), partially offset by lower gains on the sale of businesses, trademarks, and intangible assets ($49.2 million) and higher incentive compensation costs ($8.2 million). Environmental and other related costs were $2.2 million and $2.3 million in the third quarter of 2024 and 2023, respectively.

Previous wording

Operating expenses decreased $34.1 million, from $372.7 million in the first two quarters of 2023 to $338.6 million in the first two quarters of 2024. The decrease was primarily driven by lower selling costs ($22.6 million), lower general and administrative costs ($20.4 million), lower advertising costs ($20.2 million), lower distribution costs ($13.5 million), lower impairment of long-lived assets ($6.3 million) and lower product development costs ($4.2 million), partially offset by the 2023 gain on the divestiture of the Keds®business ($20.1 million), higher environmental and other related costs, net of insurance recoveries ($16.2 million), higher incentive compensation costs ($8.8 million) and higher reorganization costs ($8.0 million). Environmental and other related costs were $12.7 million and $3.7 million in the first two quarters of 2024 and 2023, respectively.

Current wording

Operating expenses decreased $58.2 million, from $560.8 million in the first three quarters of 2023 to $502.6 million in the first three quarters of 2024. The decrease was primarily driven by lower impairment of long-lived and intangible assets ($46.5 million), lower selling costs ($35.2 million), lower advertising costs ($27.5 million), lower general and administrative costs ($27.0 million), lower distribution costs ($20.7 million), and lower product development costs ($5.9 million), partially offset by lower gains on the sale of businesses, trademarks, and intangible assets ($69.3 million), higher incentive compensation costs ($17.0 million), higher environmental and other related costs, net of insurance recoveries ($15.2 million), and higher reorganization costs ($4.3 million). Environmental and other related costs were $15.0 million and $6.0 million in the first three quarters of 2024 and 2023, respectively.

Previous wording

Net interest expense was $11.9 million in the second quarter of 2024 compared to $16.1 million in the second quarter of 2023. Net interest expense was $23.9 million in the first two quarters of 2024 compared to $31.9 million in the first two quarters of 2023. The decrease in interest expense for both the quarter-to-date and year-to-date periods is due to lower average principal balances of variable rate debt.

Current wording

Net interest expense was $9.6 million in the third quarter of 2024 compared to $15.5 million in the third quarter of 2023. Net interest expense was $33.5 million in the first three quarters of 2024 compared to $47.4 million in the first three quarters of 2023. The decrease in interest expense for both the quarter-to-date and year-to-date periods is due to lower average principal balances of variable rate debt and lower weighted average interest rates on variable rate debt.

Previous wording

Other income was $0.8 million in the second quarter of 2024, compared to other income of $0.4 million in the second quarter of 2023. Other income was $1.6 million in the first two quarters of 2024, compared to other expense of $0.8 million in the first two quarters of 2023.

Current wording

Other income was $3.8 million in the third quarter of 2024, compared to other expense of $2.4 million in the third quarter of 2023. Other income was $5.4 million in the first three quarters of 2024, compared to other expense of $3.2 million in the first three quarters of 2023.

Previous wording

The effective tax rates in the second quarter of 2024 and 2023 were 13.1% and 19.8%, respectively. The effective tax rates in the firsttwo quarters of 2024 and 2023 were 47.8% and 27.8%, respectively. The decrease in the effective tax rate between 2024 and 2023 for the quarter-to-date period is due to an increase in discrete tax benefits recognized in the current year, as well as lower pretax income, which increases the impact of the discrete benefits on the effective tax rate. The increase in the effective tax rate between 2024 and 2023 for the year-to-date period is driven by lower pretax income in the current year, which increases the impact of the discrete tax expenses on the effective tax rate.

Current wording

The effective tax rates in the third quarter of 2024 and 2023 were 17.7% and 4.6%, respectively. The effective tax rates in the first three quarters of 2024 and 2023 were 21.1% and 24.5%, respectively. The increase in the effective tax rate between 2024 and 2023 for the quarter-to-date period is due to discrete tax expenses recognized in the current year compared to discrete tax benefits in the prior year period. The decrease in the effective tax rate between 2024 and 2023 for the year-to-date period is primarily driven by lower discrete tax expenses in the current year.

Previous wording

The Active Group’s revenue decreased $77.4 million, or 20.2%, in the second quarter of 2024 compared to the second quarter of 2023. The revenue decline was primarily driven by decreases of $39.7 million from Saucony®, $33.9 million from Merrell® and $3.7 million from Chaco®. The Active Group’s revenue decreased $173.5 million, or 22.6%, in the first two quarters of 2024 compared to the first two quarters of 2023. The revenue decline was primarily driven by decreases of $81.2 million from Merrell®, $72.2 million from Saucony® and $17.8 million from Chaco®. The Merrell® decrease is primarily due to lower end of life inventory sales versus the prior year and softer consumer demand in the U.S. wholesale and International channels. The Saucony® decrease was primarily driven by lower end of life inventory sales versus the prior year. The Chaco® decrease was primarily due to lower closeout and end of life inventory sales versus the prior year and softer consumer demand.

Current wording

The Active Group’s revenue decreased $183.4 million, or 16.7%, in the first three quarters of 2024 compared to the first three quarters of 2023. The revenue decrease was primarily driven by decreases of $83.8 million from Saucony®, $79.0 million from Merrell®, and $19.7 million from Chaco®. The Saucony® decrease was primarily driven by lower end of life inventory sales compared to the prior year, the divestiture of the China joint venture entity, effective January 1, 2024, and lower Saucony® kids revenue resulting from licensing the brand in the United States and Canada starting in the second quarter of 2024. The Merrell® decrease was primarily due to lower end of life inventory sales compared to the prior year, softer consumer demand in the U.S. wholesale and International channels and lower Merrell® kids revenue resulting from licensing the brand in the United States and Canada starting in the second quarter of 2024. The Chaco® decrease was primarily due to lower closeout and end of life inventory sales compared to the prior year and softer consumer demand.

Previous wording

The Active Group’s operating profit increased $2.3 million, or 5.8%, in the second quarter of 2024 compared to the second quarter of 2023. The operating profit increase was due to a 550 basis point increase in gross margin and a $17.5 million decrease in selling, general and administrative expenses, partially offset by revenue decreases. The Active Group’s operating profit decreased $13.6 million, or 14.8%, in the first two quarters of 2024 compared to the first two quarters of 2023. The operating profit decrease was due to revenue decreases, partially offset by a 440 basis point increase in gross margin and a $30.8 million decrease in selling, general and administrative expenses. The increase in gross margin in the current year period was due to decreased closeout sales and less promotional activity. The decrease in selling, general and administrative expenses in the current year periods was primarily due to lower advertising costs, selling expenses and distribution costs.

Current wording

The Active Group’s operating profit increased $20.6 million, or 63.0%, in the third quarter of 2024 compared to the third quarter of 2023. The operating profit increase was due to a 320 basis point increase in gross margin and a $14.5 million decrease in selling, general and administrative expenses, partially offset by revenue decreases. The Active Group’s operating profit increased $7.0 million, or 5.6%, in the first three quarters of 2024 compared to the first three quarters of 2023. The operating profit increase was due to a 420 basis point increase in gross margin and a $45.3 million decrease in selling, general and administrative expenses, partially offset by revenue decreases. The increase in gross margin in the current year period was due to decreased closeout sales, lower product costs, and lower supply chain costs. The decrease in selling, general and administrative expenses in the current year periods was primarily due to lower advertising costs, selling expenses and distribution costs.

Previous wording

The Work Group’s revenue decreased $12.8 million, or 10.9%, during the second quarter of 2024 compared to the second quarter of 2023. The revenue decline was primarily driven by decreases of $5.6 million from Cat®, $3.3 million from HYTEST®, $2.4 million from Harley-Davidson®, and $1.3 million from Wolverine®. The Work Group’s revenue decreased $37.2 million, or 16.0%, during the first two quarters of 2024 compared to the first two quarters of 2023. The revenue decline was primarily driven by decreases of $14.1 million from Cat®, $11.8 million from Wolverine®, $5.6 million from HYTEST®, $3.3 million from Harley-Davidson® and $2.4 million from Bates®. The Cat®decrease was primarily due to timing of shipments in the U.S. and international channels, lower closeout sales versus the prior year and softer consumer demand in the direct-to-consumer channel. The Wolverine® decrease was primarily due to softer consumer demand in the U.S. wholesale channel and lower closeout sales versus the prior year. The HYTEST®decrease was primarily due to due to lower closeout sales versus the prior year. The Harley-Davidson® decrease was primarily due to declines in top dealer accounts. The Bates® decrease was primarily due to softer consumer demand in the U.S. wholesale channel, high inventory levels at certain retail customers, and lower closeout sales versus the prior year.

Current wording

The Work Group’s revenue decreased $13.9 million, or 11.3%, during the third quarter of 2024 compared to the third quarter of 2023. The revenue decrease was primarily driven by decreases of $6.9 million from Wolverine®, $4.6 million from Cat®, and $0.9 million from Bates®. The Work Group’s revenue decreased $51.1 million, or 14.4%, during the first three quarters of 2024 compared to the first three quarters of 2023. The revenue decrease was primarily driven by decreases of $18.7 million from Wolverine®, $18.7 million from Cat®, $6.4 million from HYTEST®, $4.0 million from Harley-Davidson® and $3.3 million from Bates®. The Wolverine® decrease was primarily due to softer consumer demand in the U.S. wholesale channel, inventory shortages resulting from supply chain constraints, and lower closeout sales compared to the prior year. The Cat®decrease was primarily due to timing of shipments in the U.S. and international channels, lower closeout sales versus the prior year and softer consumer demand in the international wholesale and direct-to-consumer channels. The HYTEST®decrease was primarily due to lower closeout sales compared to the prior year. The Harley-Davidson® decrease was primarily due to declines in top dealer accounts. The Bates® decrease was primarily due to softer consumer demand in the U.S. direct-to-consumer channels, high inventory levels at certain retail customers, and lower closeout sales versus the prior year.

Previous wording

The Work Group’s operating profit decreased $0.2 million, or 1.4%, in the second quarter of 2024 compared to the second quarter of 2023. The operating profit decrease was due to revenue decreases, partially offset by a 190 basis point increase in gross margin and a $1.9 million decrease in selling, general and administrative expenses. The Work Group’s operating profit decreased $3.0 million, or 9.9%, in the first two quarters of 2024 compared to the first two quarters of 2023. The operating profit decrease was due to revenue decreases, partially offset by a 220 basis point increase in gross margin and a $5.3 million decrease in selling, general and administrative expenses. The increase in gross margin in the current year periods was due to decreased closeout sales, product mix and favorable average selling price. The decrease in selling, general and administrative expenses in the current year periods was primarily due to lower advertising costs and selling expenses.

Current wording

The Work Group’s operating profit increased $0.9 million, or 5.8%, in the third quarter of 2024 compared to the third quarter of 2023. The operating profit increase was due to a 140 basis point increase in gross margin and a $4.2 million decrease in selling, general and administrative expenses, partially offset by revenue decreases. The Work Group’s operating profit decreased $2.1 million, or 4.6%, in the first three quarters of 2024 compared to the first three quarters of 2023. The operating profit decrease was due to revenue decreases, partially offset by a 190 basis point increase in gross margin and a $9.5 million decrease in selling, general and administrative expenses. The increase in gross margin in the current year periods was due to decreased closeout sales, product mix and favorable average selling price. The decrease in selling, general and administrative expenses in the current year periods was primarily due to lower advertising costs and selling expenses.

Previous wording

The Other category’s revenue decreased $73.7 million, or 83.8%, in the second quarter of 2024 compared to the second quarter of 2023. The revenue decline was driven by decreases of $55.6 million from Sperry®, $10.9 million from the performance leathers business and $8.0 million from Hush Puppies®. The Other category’s revenue decreased $157.7 million, or 84.3%, in the first two quarters of 2024 compared to the first two quarters of 2023. The revenue decrease was primarily driven by decreases of $116.1 million from Sperry®, $22.8 million from the performance leathers business, $16.4 million from Hush Puppies®and $6.5 million from Keds®. The Sperry® decrease is due to the divestiture of the business effective January 10, 2024. The performance leathers business decrease is due to the divestiture of the U.S. leathers business, effective August 23, 2023 and the Asia-based leathers business, effective December 28, 2023. The Hush Puppies®decrease is due to the licensing of the brand in the United States and Canada starting in the third quarter of 2023. The Keds®decrease is due to the divestiture of the business, effective February 4, 2023.

Current wording

The Other category’s revenue decreased $63.7 million, or 83.7%, in the third quarter of 2024 compared to the third quarter of 2023. The revenue decrease was primarily driven by decreases of $45.8 million from Sperry®, $8.2 million from the performance leathers business and $7.7 million from Hush Puppies®. The Other category’s revenue decreased $221.4 million, or 84.2%, in the first three quarters of 2024 compared to the first three quarters of 2023. The revenue decrease was primarily driven by decreases of $162.0 million from Sperry®, $31.5 million from the performance leathers business, $24.1 million from Hush Puppies®and $6.5 million from Keds®. The Sperry® decrease is due to the divestiture of the business effective January 10, 2024. The performance leathers business decrease is due to the divestiture of the U.S. leathers business, effective August 23, 2023 and the Asia-based leathers business, effective December 28, 2023. The Hush Puppies®decrease is due to the licensing of the brand in the United States and Canada starting in the third quarter of 2023. The Keds®decrease is due to the divestiture of the business, effective February 4, 2023.

Previous wording

Other operating profit decreased $5.3 million, or 39.3%, in the second quarter of 2024 compared to the second quarter of 2023. The operating profit decrease was due to revenue decreases, partially offset by a $22.5 million decrease in selling, general and administrative costs. Other operating profit decreased $7.3 million, or 37.1%, in the first two quarters of 2024 compared to the first two quarters of 2023. The operating profit decrease was due to revenue decreases, partially offset by a $49.9 million decrease in selling, general and administrative costs. The decrease in selling, general and administrative expenses in the current year period was primarily due to the divestiture of the Sperry®business, performance leathers business, and Keds®business, along with the licensing of the Hush Puppies®business.

Current wording

Other operating profit increased $0.1 million, or 1.2%, in the third quarter of 2024 compared to the third quarter of 2023. The operating profit increase was due to a $21.1 million decrease in selling, general and administrative costs, partially offset by revenue decreases. Other operating profit decreased $7.2 million, or 25.8%, in the first three quarters of 2024 compared to the first three quarters of 2023. The operating profit decrease was due to revenue decreases, partially offset by a $71.0 million decrease in selling, general and administrative costs. The decrease in selling, general and administrative expenses in the current year period was primarily due to the divestiture of the Sperry®business, performance leathers business, and Keds®business, along with the licensing of the Hush Puppies®business.

Previous wording

Corporate expenses increased $41.5 million in the first two quarters of 2024 compared to the first two quarters of 2023, primarily due to the 2023 gain recorded on the sale of the Keds®business ($20.1 million), higher environmental and other related costs ($16.2 million), higher incentive compensation costs ($9.7 million) and higher reorganization costs ($8.0 million), partially offset by lower impairment of long-lived assets ($6.3 million) and lower employee costs ($3.4 million).

Current wording

Corporate expenses increased $55.2 million in the first three quarters of 2024 compared to the first three quarters of 2023, primarily due to lower gains on the sale of businesses, trademarks, and intangible assets ($69.3 million), higher incentive compensation costs ($16.2 million), higher environmental and other related costs ($15.2 million), and higher reorganization costs ($4.3 million), partially offset by lower impairment of long-lived and intangible assets ($46.5 million) and lower employee costs ($6.0 million).

Previous wording

(1)Cash and cash equivalents at December 30, 2023 and July 1, 2023 includes $5.6 million and $3.6 million, respectively, 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.

Current wording

(1)Cash and cash equivalents at December 30, 2023 and September 30, 2023 includes $5.6 million and $4.3 million, respectively, of cash and cash equivalents that are classified as held for sale that are not included in cash and cash equivalents in the consolidated condensed balance sheets.

Previous wording

Cash and cash equivalents of $148.3 million as of June 29, 2024 were $31.8 million lower compared to July 1, 2023. The decrease is due primarily to cash provided by operating activities of $65.4 million, proceeds from divestitures of $199.5 million, contributions from noncontrolling interests of $29.1 million, and proceeds from company-owned life insurance policies of $7.0 million, partially offset by borrowings less repayments of debt of $300.0 million, cash dividends paid of $32.4 million, and additions to property, plant and equipment of $8.5 million. The Company had $768.0 million of borrowing capacity available under the revolving facility as of June 29, 2024. Cash and cash equivalents located in foreign jurisdictions totaled $119.3 million as of June 29, 2024.

Current wording

Cash and cash equivalents of $140.2 million as of September 28, 2024 were $24.5 million lower compared to September 30, 2023. The decrease is due primarily to repayments less borrowings of debt of $395.0 million, cash dividends paid of $32.5 million, and additions to property, plant and equipment of $8.3 million, partially offset by cash provided by operating activities of $212.5 million, proceeds from divestitures of $155.3 million, contributions from noncontrolling interests of $29.1 million, proceeds from company-owned life insurance policy liquidations of $7.9 million and financing proceeds from company-owned life insurance policies of $7.0 million. The Company had $867.9 million of borrowing capacity available under the revolving facility as of September 28, 2024. Cash and cash equivalents located in foreign jurisdictions totaled $130.1 million as of September 28, 2024.

Previous wording

The Company did not repurchase shares during the first two quarters of both 2024 and 2023.

Current wording

The Company did not repurchase shares during the first three quarters of both 2024 and 2023.

Previous wording

A detailed discussion of environmental remediation costs is found in Note 15 to the consolidated condensed financial statements. The Company has established a reserve for estimated environmental remediation costs based upon an evaluation of currently available facts with respect to each individual site. As of June 29, 2024, the Company had a reserve of $46.2 million, of which $17.8 million is expected to be paid in the next 12 months and is recorded as a current obligation in other accrued liabilities, and the remaining $28.4 million is recorded in other liabilities and is expected to be paid over the course of up to 25 years. It is difficult to estimate the cost of environmental compliance and remediation given the uncertainties regarding the interpretation and enforcement of applicable environmental laws and regulations, the extent of environmental contamination and the existence of alternative cleanup methods.

Current wording

A detailed discussion of environmental remediation costs is found in Note 15 to the consolidated condensed financial statements. The Company has established a reserve for estimated environmental remediation costs based upon an evaluation of currently available facts with respect to each individual site. As of September 28, 2024, the Company had a reserve of $40.6 million, of which $18.8 million is expected to be paid in the next 12 months and is recorded as a current obligation in other accrued liabilities, and the remaining $21.8 million is recorded in other liabilities and is expected to be paid over the course of up to 25 years. It is difficult to estimate the cost of environmental compliance and remediation given the uncertainties regarding the interpretation and enforcement of applicable environmental laws and regulations, the extent of environmental contamination and the existence of alternative cleanup methods.

Previous wording

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 Revolving Facility allows the Company to borrow up to an aggregate amount of $1.0 billion.

Current wording

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 Revolving Facility allowed the Company to borrow up to an aggregate amount of $1.0 billion.

Previous wording

The Company’s debt at June 29, 2024 totaled $814.7 million compared to $920.8 million at December 30, 2023. The reduced debt position primarily resulted from repayments of debt using proceeds received from the sale of the Sperry® business.

Current wording

The Company’s debt at September 28, 2024 totaled $702.8 million compared to $920.8 million at December 30, 2023. The reduced debt position primarily resulted from repayments of debt using net cash provided by operating activities and proceeds received from the sale of the Sperry® business and Courtland Drive facility.

Previous wording

For the first two quarters of 2024, an increase in net working capital represented a use of cash of $3.9 million. Working capital balances were favorably impacted by a decrease in inventories of $72.4 million and a decrease in other operating assets of $4.3 million, offset by an increase in accounts receivable of $13.9 million, an increase in other operating liabilities of $38.8 million, an increase in accounts payable of $23.2 million, and an increase in income taxes payable of $4.7 million. Operating cash flows included depreciation and amortization expense adjustment of $13.3 million, impairment of long-lived assets of $9.3 million, stock-based compensation expense adjustment of $9.8 million, environmental and other related costs, net of cash payments and recoveries received cash outflow of $31.7 million, and pension expense adjustment of $0.3 million.

Current wording

For the first three quarters of 2024, a decrease in net working capital represented a source of cash of $31.8 million. Working capital balances were favorably impacted by a decrease in inventories of $87.2 million and an increase in accounts payable of $22.3 million, partially offset by a decrease in other operating liabilities of $46.7 million, an increase in other operating assets of $15.4 million, an increase in accounts receivable of $10.8 million and a decrease in income taxes payable of $4.8 million. Operating cash flows included depreciation and amortization expense adjustment of $19.4 million, impairment of long-lived assets of $9.3 million, stock-based compensation expense adjustment of $15.0 million, environmental and other related costs, net of cash payments and recoveries received cash outflow of $10.1 million, gain on sale of business of $8.5 million, and deferred income taxes of $23.5 million.

Previous wording

The Company made capital expenditures of $8.1 million and $14.2 million in the first two quarters of 2024 and 2023, respectively, for corporate headquarters improvements, eCommerce sites, distribution operations improvements and information systems and technology. The current year investing activity includes proceeds from divestitures of $92.5 million.

Current wording

The Company made capital expenditures of $12.2 million and $18.5 million in the first three quarters of 2024 and 2023, respectively, for corporate headquarters improvements, eCommerce sites, distribution operations improvements and information systems and technology. The current year investing activity includes proceeds from divestitures of $102.4 million.

Previous wording

The current year activity includes net payments under the Revolving Facility of $80.0 million. The Company paid $26.7 million and $5.0 million in principal payments associated with its financing arrangements during the first two quarters of 2024 and 2023, respectively. The Company paid $1.7 million and $5.7 million during the first two quarters of 2024 and 2023, respectively, in connection with shares or units withheld to pay employee taxes related to awards under stock incentive plans. The Company did not repurchase sharesin the first two quarters of 2024 or 2023.

Current wording

The current year activity includes net payments under the Revolving Facility of $180.0 million. The Company paid $39.2 million and $7.5 million in principal payments associated with its financing arrangements during the first three quarters of 2024 and 2023, respectively. The Company paid $2.0 million and $5.8 million during the first three quarters of 2024 and 2023, respectively, in connection with shares or units withheld to pay employee taxes related to awards under stock incentive plans. The Company did not repurchase sharesin the first three quarters of 2024 or 2023.

Previous wording

The Company declared cash dividends of $0.20 per share duringthe first two quarters of 2024 and 2023. Dividends paid in the first two quarters of 2024 and 2023 totaled $16.2 million and $16.4 million, resp ectively. A quarterly dividend of $0.10 per share was declared on July 31, 2024 to shareholders of record on October 1, 2024.

Current wording

The Company declared cash dividends of $0.30 per share duringthe first three quarters of 2024 and 2023. Dividends paid in the first three quarters of 2024 and 2023 totaled $24.4 million and $24.5 million, resp ectively. A quarterly dividend of $0.10 per share was declared on October 30, 2024 to shareholders of record on January 2, 2025.