Discontinued Operations

3 Months Ended

Mar. 02, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

In the fourth quarter of 2024 the Company announced it was undertaking an evaluation of strategic alternatives to the global Dockers® business, including a sale or other strategic transactions. During the first quarter of 2025, the Company commenced a sale process of its Dockers® business with the target of completing a transaction in fiscal year 2025.

As of March 2, 2025, the Company determined that the Dockers® business met held for sale and discontinued operations accounting criteria. Accordingly, Dockers® net assets were classified as held for sale in the consolidated balance sheets for all periods presented. The Dockers® net assets were classified as current and non-current. Additionally, the Company classified the Dockers® business as discontinued operations in its consolidated statements of operations for all periods presented.

The following table presents the assets and liabilities held for sale:

	March 2, 2025		December 1, 2024
	(Dollars in millions)
Current Assets:
Inventories	$	107.7	$	108.1
Total current assets held for sale	107.7		108.1
Property, plant and equipment, net	10.8		11.3
Operating lease right-of-use assets, net	25.1		23.6
Total non-current assets held for sale	35.9		34.9
Total assets held for sale	$	143.6	$	143.0
Current Liabilities:
Short-term operating lease liabilities	$	6.0	$	5.9
Total current liabilities held for sale	6.0		5.9
Long-term operating lease liabilities	18.2		17.5
Total long-term liabilities held for sale	18.2		17.5
Total liabilities held for sale	$	24.2	$	23.4

The following table presents the results of discontinued operations:

	Three Months Ended
	March 2, 2025		February 25, 2024
	(Dollars in millions)
Net revenues	$	67.4	$	77.4
Cost of goods sold	31.0		40.7
Gross profit	36.4		36.7
Selling, general and administrative expenses	41.5		34.6
Restructuring charges, net(1)	1.8		3.1
Net loss from discontinued operations before income taxes	(6.9)		(1.0)
Income tax benefit	(1.7)		(0.2)
Net loss from discontinued operations, net of taxes	$	(5.2)	$	(0.8)

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(1)Restructuring charges, net previously attributable to corporate expenses were reported as discontinued operations for the three months ended February 25, 2024.

Cash flows related to discontinued operations are included in the consolidated statements of cash flows. Depreciation and amortization included in discontinued operations was $1.1 million and $1.0 million for the three months ended March 2, 2025 and February 25, 2024, respectively. There were no significant operating noncash items or investing activities cash flows from discontinued operations during the three months ended March 2, 2025 and February 25, 2024.