Subsidiary Guarantors of the Public Bonds

6 Months Ended

Jun. 14, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Subsidiary Guarantors of the Public Bonds

SUBSIDIARY GUARANTORS OF THE PUBLIC BONDS

The following tables present consolidated condensed financial information for (a) the Company (for purposes of this discussion and table, “Parent”); (b) the guarantors of the Public Bonds, which include substantially all of the domestic, 100% owned subsidiaries of the Parent (“Subsidiary Guarantors”); and (c) the wholly- and partially-owned foreign subsidiaries of the Parent, which do not guarantee the Public Bonds (“Non-Guarantor Subsidiaries”). Separate financial statements of the Subsidiary Guarantors are not presented because they are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions.

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Operations and Comprehensive Income

For the 12 Weeks Ended June 14, 2014

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	110.2		$	1,035.2		$	170.3		$	(702.2	)	$	613.5
Cost of goods sold	77.3			884.5			89.9			(684.0		)	367.7
Restructuring costs	—			—			0.1			—			0.1
Gross profit	32.9			150.7			80.3			(18.2		)	245.7
Selling, general and administrative expenses	43.2			105.3			60.8			(18.5		)	190.8
Acquisition-related integration costs	1.9			0.6			—			—			2.5
Restructuring costs	1.5			—			1.9			—			3.4
Operating profit (loss)	(13.7		)	44.8			17.6			0.3			49.0
Other expenses:
Interest expense (income), net	10.5			0.1			(0.1		)	—			10.5
Other expense (income), net	0.1			(0.9		)	0.8			—			—
Total other expenses (income)	10.6			(0.8		)	0.7			—			10.5
Earnings (loss) before income taxes	(24.3		)	45.6			16.9			0.3			38.5
Income tax expense (benefit)	(9.1		)	17.1			2.9			—			10.9
Earnings (loss) before equity in earnings (loss) of consolidated subsidiaries	(15.2		)	28.5			14.0			0.3			27.6
Equity in earnings (loss) of consolidated subsidiaries	42.7			(10.8		)	2.2			(34.1		)	—
Net earnings	27.5			17.7			16.2			(33.8		)	27.6
Less: net earnings attributable to non-controlling interest	—			—			0.1			—			0.1
Net earnings attributable to Wolverine World Wide, Inc.	$	27.5		$	17.7		$	16.1		$	(33.8	)	$	27.5
Comprehensive income	$	33.3		$	17.6		$	21.3		$	(38.8	)	$	33.4
Less: comprehensive income attributable to non-controlling interest	0.2			—			0.1			—			0.3
Comprehensive income attributable to Wolverine World Wide, Inc.	$	33.1		$	17.6		$	21.2		$	(38.8	)	$	33.1

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Operations and Comprehensive Income

For the 12 Weeks Ended June 15, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	107.4		$	929.6	$	153.2		$	(602.4	)	$	587.8
Cost of goods sold	75.6			776.3		81.3			(586.5		)	346.7
Gross profit	31.8			153.3		71.9			(15.9		)	241.1
Selling, general and administrative expenses	47.9			97.1		66.8			(15.6		)	196.2
Acquisition-related integration costs	3.3			1.7		2.9			—			7.9
Operating profit (loss)	(19.4		)	54.5		2.2			(0.3		)	37.0
Other expenses:
Interest expense, net	12.3			—		0.2			—			12.5
Other expense (income), net	(0.2		)	—		0.6			0.2			0.6
Total other expenses	12.1			—		0.8			0.2			13.1
Earnings (loss) before income taxes	(31.5		)	54.5		1.4			(0.5		)	23.9
Income tax expense (benefit)	(12.3		)	21.2		(3.1		)	—			5.8
Earnings (loss) before equity in earnings of consolidated subsidiaries	(19.2		)	33.3		4.5			(0.5		)	18.1
Equity in earnings of consolidated subsidiaries	37.1			82.8		7.5			(127.4		)	—
Net earnings	17.9			116.1		12.0			(127.9		)	18.1
Less: net earnings attributable to non-controlling interest	—			—		0.2			—			0.2
Net earnings attributable to Wolverine World Wide, Inc.	$	17.9		$	116.1	$	11.8		$	(127.9	)	$	17.9
Comprehensive income	$	26.9		$	116.1	$	15.9		$	(131.8	)	$	27.1
Less: comprehensive income attributable to non-controlling interest	—			—		0.2			—			0.2
Comprehensive income attributable to Wolverine World Wide, Inc.	$	26.9		$	116.1	$	15.7		$	(131.8	)	$	26.9

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Operations and Comprehensive Income

For the 24 Weeks Ended June 14, 2014

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	224.7		$	1,974.9		$	370.1		$	(1,328.6	)	$	1,241.1
Cost of goods sold	154.3			1,682.7			199.2			(1,297.1		)	739.1
Restructuring costs	—			—			0.5			—			0.5
Gross profit	70.4			292.2			170.4			(31.5		)	501.5
Selling, general and administrative expenses	81.6			210.2			121.4			(31.9		)	381.3
Acquisition-related integration costs	2.9			1.2			—			—			4.1
Restructuring costs	1.5			—			1.9			—			3.4
Operating profit (loss)	(15.6		)	80.8			47.1			0.4			112.7
Other expenses:
Interest expense (income), net	21.3			0.2			(0.1		)	—			21.4
Other expense (income), net	(0.3		)	(0.9		)	2.0			—			0.8
Total other expenses (income)	21.0			(0.7		)	1.9			—			22.2
Earnings (loss) before income taxes	(36.6		)	81.5			45.2			0.4			90.5
Income tax expense (benefit)	(13.7		)	30.6			8.8			—			25.7
Earnings (loss) before equity in earnings of consolidated subsidiaries	(22.9		)	50.9			36.4			0.4			64.8
Equity in earnings of consolidated subsidiaries	87.5			48.8			35.8			(172.1		)	—
Net earnings	64.6			99.7			72.2			(171.7		)	64.8
Less: net earnings attributable to non-controlling interests	—			—			0.2			—			0.2
Net earnings attributable to Wolverine World Wide, Inc.	$	64.6		$	99.7		$	72.0		$	(171.7	)	$	64.6
Comprehensive income	$	67.5		$	99.4		$	73.2		$	(172.4	)	$	67.7
Less: comprehensive income attributable to non-controlling interest	—			—			0.2			—			0.2
Comprehensive income attributable to Wolverine World Wide, Inc.	$	67.5		$	99.4		$	73.0		$	(172.4	)	$	67.5

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Operations and Comprehensive Income

For the 24 Weeks Ended June 15, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	221.6		$	1,862.7	$	334.5		$	(1,185.1	)	$	1,233.7
Cost of goods sold	158.7			1,548.3		177.1			(1,153.5		)	730.6
Gross profit	62.9			314.4		157.4			(31.6		)	503.1
Selling, general and administrative expenses	88.2			210.7		123.7			(30.6		)	392.0
Acquisition-related integration costs	8.4			11.6		3.1			—			23.1
Operating profit (loss)	(33.7		)	92.1		30.6			(1.0		)	88.0
Other expenses:
Interest expense (income), net	25.4			0.1		(0.1		)	—			25.4
Other expense, net	—			—		0.8			0.2			1.0
Total other expenses	25.4			0.1		0.7			0.2			26.4
Earnings (loss) before income taxes	(59.1		)	92.0		29.9			(1.2		)	61.6
Income tax expense (benefit)	(23.0		)	35.8		0.9			—			13.7
Earnings (loss) before equity in earnings of consolidated subsidiaries	(36.1		)	56.2		29.0			(1.2		)	47.9
Equity in earnings of consolidated subsidiaries	83.8			183.4		50.6			(317.8		)	—
Net earnings	47.7			239.6		79.6			(319.0		)	47.9
Less: net earnings attributable to non-controlling interests	—			—		0.2			—			0.2
Net earnings attributable to Wolverine World Wide, Inc.	$	47.7		$	239.6	$	79.4		$	(319.0	)	$	47.7
Comprehensive income	$	52.8		$	239.6	$	75.1		$	(314.5	)	$	53.0
Less: comprehensive income attributable to non-controlling interest	—			—		0.2			—			0.2
Comprehensive income attributable to Wolverine World Wide, Inc.	$	52.8		$	239.6	$	74.9		$	(314.5	)	$	52.8

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

As of June 14, 2014

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	29.0		$	4.2		$	199.2		$	—		$	232.4
Accounts receivable, net	19.4			286.1			128.8			—			434.3
Inventories:
Finished products, net	61.9			301.5			76.5			(0.3		)	439.6
Raw materials and work-in-process, net	1.4			1.3			17.5			—			20.2
Total inventories	63.3			302.8			94.0			(0.3		)	459.8
Deferred income taxes	15.3			12.6			0.6			—			28.5
Prepaid expenses and other current assets	45.0			(17.5		)	10.5			—			38.0
Total current assets	172.0			588.2			433.1			(0.3		)	1,193.0
Property, plant and equipment:
Gross cost	226.4			150.7			40.7			—			417.8
Accumulated depreciation	(177.4		)	(67.8		)	(26.6		)	—			(271.8		)
Property, plant and equipment, net	49.0			82.9			14.1			—			146.0
Other assets:
Goodwill	7.8			353.0			84.0			—			444.8
Indefinite-lived intangibles	4.3			674.9			11.3			—			690.5
Amortizable intangibles, net	0.4			119.7			0.1			—			120.2
Deferred income taxes	—			—			3.4			—			3.4
Deferred financing costs, net	20.0			—			—			—			20.0
Other	48.8			11.5			2.7			0.3			63.3
Intercompany accounts receivable	—			1,736.4			484.3			(2,220.7		)	—
Investment in affiliates	3,148.5			635.4			403.5			(4,187.4		)	—
Total other assets	3,229.8			3,530.9			989.3			(6,407.8		)	1,342.2
Total assets	$	3,450.8		$	4,202.0		$	1,436.5		$	(6,408.1	)	$	2,681.2

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets - continued

As of June 14, 2014

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	37.1		$	81.7	$	47.1	$	—		$	165.9
Accrued salaries and wages	14.5			8.2		8.8		—			31.5
Other accrued liabilities	31.8			28.8		28.7		—			89.3
Current maturities of long-term debt	48.4			—		—		—			48.4
Total current liabilities	131.8			118.7		84.6		—			335.1
Long-term debt, less current maturities	1,082.2			0.7		—		—			1,082.9
Accrued pension liabilities	63.1			11.2		—		—			74.3
Deferred income taxes	(37.0		)	287.6		4.3		—			254.9
Other liabilities	13.4			10.3		2.4		—			26.1
Intercompany accounts payable	1,293.4			412.6		514.7		(2,220.7		)	—
Stockholders’ equity:
Wolverine World Wide, Inc. stockholders’ equity	903.9			3,360.9		826.5		(4,187.4		)	903.9
Non-controlling interest	—			—		4.0		—			4.0
Total stockholders’ equity	903.9			3,360.9		830.5		(4,187.4		)	907.9
Total liabilities and stockholders’ equity	$	3,450.8		$	4,202.0	$	1,436.5	$	(6,408.1	)	$	2,681.2

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

As of December 28, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	18.8		$	15.0		$	180.4		$	—		$	214.2
Accounts receivable, net	63.9			213.2			121.0			—			398.1
Inventories:
Finished products, net	55.0			270.8			81.0			(0.8		)	406.0
Raw materials and work-in-process, net	(0.1		)	0.9			21.4			—			22.2
Total inventories	54.9			271.7			102.4			(0.8		)	428.2
Deferred income taxes	15.3			12.6			1.2			—			29.1
Prepaid expenses and other current assets	26.9			11.1			10.4			—			48.4
Total current assets	179.8			523.6			415.4			(0.8		)	1,118.0
Property, plant and equipment:
Gross cost	223.7			143.2			49.2			—			416.1
Accumulated depreciation	(174.4		)	(57.4		)	(32.4		)	—			(264.2		)
Property, plant and equipment, net	49.3			85.8			16.8			—			151.9
Other assets:
Goodwill	7.7			354.3			83.3			—			445.3
Indefinite-lived intangibles	4.4			674.7			11.4			—			690.5
Amortizable intangibles, net	0.2			126.4			0.1			—			126.7
Deferred income taxes	—			—			3.4			—			3.4
Deferred financing costs, net	22.0			—			—			—			22.0
Other	46.0			12.3			5.3			0.8			64.4
Intercompany accounts receivable	—			1,445.4			347.5			(1,792.9		)	—
Investment in affiliates	3,033.2			555.6			393.5			(3,982.3		)	—
Total other assets	3,113.5			3,168.7			844.5			(5,774.4		)	1,352.3
Total assets	$	3,342.6		$	3,778.1		$	1,276.7		$	(5,775.2	)	$	2,622.2

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets - continued

As of December 28, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	31.6		$	61.7	$	41.9	$	—		$	135.2
Accrued salaries and wages	27.0			8.6		5.9		—			41.5
Other accrued liabilities	40.8			22.1		36.4		—			99.3
Current maturities of long-term debt	53.3			—		—		—			53.3
Total current liabilities	152.7			92.4		84.2		—			329.3
Long-term debt, less current maturities	1,096.7			—		—		—			1,096.7
Accrued pension liabilities	60.9			13.3		—		—			74.2
Deferred income taxes	(38.2		)	287.7		4.4		—			253.9
Other liabilities	12.4			11.5		2.8		—			26.7
Intercompany accounts payable	1,220.5			153.7		418.7		(1,792.9		)	—
Stockholders’ equity:
Wolverine World Wide, Inc. stockholders’ equity	837.6			3,219.5		762.8		(3,982.3		)	837.6
Non-controlling interest	—			—		3.8		—			3.8
Total stockholders’ equity	837.6			3,219.5		766.6		(3,982.3		)	841.4
Total liabilities and stockholders’ equity	$	3,342.6		$	3,778.1	$	1,276.7	$	(5,775.2	)	$	2,622.2

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

As of June 15, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	22.7		$	15.9		$	132.4		$	—		$	171.0
Accounts receivable, net	89.2			195.0			113.7			—			397.9
Inventories:
Finished products, net	58.4			311.1			86.7			(1.9		)	454.3
Raw materials and work-in-process, net	0.9			1.0			28.5			—			30.4
Total inventories	59.3			312.1			115.2			(1.9		)	484.7
Deferred income taxes	9.4			17.0			1.2			—			27.6
Prepaid expenses and other current assets	22.4			6.3			12.3			0.5			41.5
Total current assets	203.0			546.3			374.8			(1.4		)	1,122.7
Property, plant and equipment:
Gross cost	217.4			125.4			54.6			—			397.4
Accumulated depreciation	(168.2		)	(44.4		)	(36.1		)	—			(248.7		)
Property, plant and equipment, net	49.2			81.0			18.5			—			148.7
Other assets:
Goodwill	7.5			365.1			85.2			—			457.8
Indefinite-lived intangibles	4.1			664.4			11.3			—			679.8
Amortizable intangibles, net	0.4			142.8			0.2			—			143.4
Deferred income taxes	0.2			—			—			—			0.2
Deferred financing costs, net	35.8			—			—			—			35.8
Other	43.9			9.8			1.0			1.6			56.3
Intercompany accounts receivable	—			1,182.0			105.3			(1,287.3		)	—
Investment in affiliates	2,655.8			401.6			397.0			(3,454.4		)	—
Total other assets	2,747.7			2,765.7			600.0			(4,740.1		)	1,373.3
Total assets	$	2,999.9		$	3,393.0		$	993.3		$	(4,741.5	)	$	2,644.7

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets - continued

As of June 15, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	25.8		$	130.0	$	36.3	$	—		$	192.1
Accrued salaries and wages	16.6			19.7		7.3		—			43.6
Other accrued liabilities	44.9			15.2		32.5		0.2			92.8
Current maturities of long-term debt	37.1			—		—		—			37.1
Total current liabilities	124.4			164.9		76.1		0.2			365.6
Long-term debt, less current maturities	1,147.6			—		—		—			1,147.6
Accrued pension liabilities	130.6			36.3		—		—			166.9
Deferred income taxes	(52.1		)	290.7		1.5		—			240.1
Other liabilities	8.2			8.8		2.9		—			19.9
Intercompany accounts payable	938.1			29.3		319.9		(1,287.3		)	—
Stockholders’ equity:
Wolverine World Wide, Inc. stockholders’ equity	703.1			2,863.0		591.4		(3,454.4		)	703.1
Non-controlling interest	—			—		1.5		—			1.5
Total stockholders’ equity	703.1			2,863.0		592.9		(3,454.4		)	704.6
Total liabilities and stockholders’ equity	$	2,999.9		$	3,393.0	$	993.3	$	(4,741.5	)	$	2,644.7

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flow

For the 24 Weeks Ended June 14, 2014

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	47.8		$	(2.1	)	$	19.9		$	—	$	65.6
Investing activities
Additions to property, plant and equipment	(3.5		)	(7.9		)	(1.1		)	—		(12.5		)
Investment in joint venture	—			—			(0.7		)	—		(0.7		)
Other	(0.8		)	(0.8		)	—			—		(1.6		)
Net cash used in investing activities	(4.3		)	(8.7		)	(1.8		)	—		(14.8		)
Financing activities
Payments on long-term debt	(19.4		)	—			—			—		(19.4		)
Cash dividends paid	(12.0		)	—			—			—		(12.0		)
Purchases of shares under employee stock plans	(9.4		)	—			—			—		(9.4		)
Proceeds from the exercise of stock options	3.8			—			—			—		3.8
Excess tax benefits from stock-based compensation	3.7			—			—			—		3.7
Net cash used in financing activities	(33.3		)	—			—			—		(33.3		)
Effect of foreign exchange rate changes	—			—			0.7			—		0.7
Increase (decrease) in cash and cash equivalents	10.2			(10.8		)	18.8			—		18.2
Cash and cash equivalents at beginning of the year	18.8			15.0			180.4			—		214.2
Cash and cash equivalents at end of the period	$	29.0		$	4.2		$	199.2		$	—	$	232.4

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flow

For the 24 Weeks Ended June 15, 2013

(Unaudited)

(In millions)	Parent			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	80.3		$	(25.1	)	$	32.3		$	—	$	87.5
Investing activities
Additions to property, plant and equipment	(7.4		)	(7.3		)	—			—		(14.7		)
Proceeds from sale of property, plant and equipment	—			—			2.8			—		2.8
Investment in joint venture	—			—			(1.6		)	—		(1.6		)
Other	(0.1		)	(0.2		)	(0.9		)	—		(1.2		)
Net cash (used in) provided by investing activities	(7.5		)	(7.5		)	0.3			—		(14.7		)
Financing activities
Payments on long-term debt	(65.3		)	—			—			—		(65.3		)
Cash dividends paid	(11.8		)	—			—			—		(11.8		)
Purchases of shares under employee stock plans	(0.3		)	—			—			—		(0.3		)
Proceeds from the exercise of stock options	4.8			—			—			—		4.8
Excess tax benefits from stock-based compensation	1.2			—			—			—		1.2
Net cash used in financing activities	(71.4		)	—			—			—		(71.4		)
Effect of foreign exchange rate changes	—			—			(1.8		)	—		(1.8		)
Increase (decrease) in cash and cash equivalents	1.4			(32.6		)	30.8			—		(0.4		)
Cash and cash equivalents at beginning of the year	21.3			48.5			101.6			—		171.4
Cash and cash equivalents at end of the period	$	22.7		$	15.9		$	132.4		$	—	$	171.0