Restructuring Activities

3 Months Ended

Mar. 02, 2025

Restructuring and Related Activities [Abstract]

In the first quarter of 2024, the Company’s Board of Directors (the "Board") approved a multi-year global productivity initiative, “Project Fuel”, designed to accelerate the execution of our Brand Led and DTC First strategies while fueling long-term profitable growth. The first phase of the global productivity initiative was completed primarily in the first half of 2024. The two-year initiative is expected to continue through the end of 2025. As this initiative progresses, the Company may incur additional restructuring charges, which could be significant to a future fiscal quarter or year.

For the three months ended March 2, 2025, the Company recognized restructuring charges of $6.7 million in connection with Project Fuel, consisting primarily of severance and other post-employment benefits, based on separation benefits provided by Company policy or statutory benefit plans as well as contract termination costs and asset impairments. These charges were recorded in “Restructuring charges, net” in the consolidated statements of operations. As of March 2, 2025, the restructuring liability was $85.6 million, with $64.7 million and $20.9 million classified as “Other accrued liabilities” and “Long-term employee related benefits and other liabilities”, respectively, within the Company’s consolidated balance sheet.

The Company also recognized $3.1 million of restructuring related charges during the three months ended March 2, 2025, primarily consisting of consulting fees, which were recorded in “Selling, general and administrative expenses” in the consolidated statements of operations.

For the three months ended February 25, 2024, the Company recognized net restructuring charges of $113.1 million consisting primarily of severance and other post-employment benefits, based on separation benefits provided by Company policy or statutory benefit plans. These charges were recorded in “Restructuring charges, net” in the consolidated statements of operations.

The Company also recognized $10.1 million of restructuring related charges during the three months ended February 25, 2024, primarily consulting fees, and $5.5 million in goodwill impairment charges related to our footwear business as a result of the decision to discontinue the category. The charges were recorded in “Selling, general and administrative expenses” in the consolidated statements of operations.

The following tables summarize the activities associated with restructuring liabilities for the periods presented. "Net Charges (Reversals)" represents the initial charge related to the restructuring activity as well as revisions of estimates related to severance and employee-related benefits and other, "Payments" consists of cash payments for severance and employee-related benefits and other, and "Foreign Currency Fluctuations" includes foreign currency fluctuations.


	Three Months Ended March 2, 2025
	Liabilities		Net Charges (Reversals)(1)			Payments		Foreign Currency Fluctuations		Liabilities
	December 1, 2024				March 2, 2025

	(Dollars in millions)
Severance and employee-related benefits	$	83.7	$	3.9		$	(23.5)	$	(0.3)	$	63.8
Contract termination costs and other	20.7		1.7			(0.5)		(0.1)		21.8
Total	$	104.4	$	5.6		$	(24.0)	$	(0.4)	$	85.6

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(1)Excludes $0.8 million in stock compensation related charges recorded in Additional paid-in capital and $2.1 million recorded in Property, plant and equipment, net related to impairment charges associated with the closure of distribution centers. Includes $1.8 million of Dockers® restructuring costs reported as discontinued operations.


	Three Months Ended February 25, 2024
	Liabilities		Net Charges (Reversals)(1)			Payments		Foreign Currency Fluctuations		Liabilities
	November 26, 2023				February 25, 2024

	(Dollars in millions)
Severance and employee-related benefits	$	17.8	$	113.4		$	(8.4)	$	0.2	$	123.0
Contract termination costs and other	0.2		—			(0.1)		(0.1)		—
Total	$	18.0	$	113.4		$	(8.5)	$	0.1	$	123.0

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(1)Excludes $2.0 million in stock compensation related charges recorded in Additional paid-in capital and $0.8 million in operating lease termination. Includes $3.1 million of Dockers® restructuring costs reported as discontinued operations.