Restructuring Activities

6 Months Ended

Jun. 01, 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 and six months ended June 1, 2025, the Company recognized restructuring charges of $6.8 million and $13.5 million, respectively, 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 and a gain on the sale of a previously closed distribution center. These charges were recorded in “Restructuring charges, net” in the consolidated statements of income. As of June 1, 2025, the restructuring liability was $86.7 million, with $69.2 million and $17.5 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 $4.4 million and $7.5 million of restructuring related charges during the three and six months ended June 1, 2025, respectively, primarily consisting of consulting fees, which were recorded in “Selling, general and administrative expenses” in the consolidated statements of income.

For the three and six months ended May 26, 2024, the Company recognized restructuring charges of $55.1 million and $168.2 million, respectively, 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 income.

The Company also recognized $5.2 million and $15.3 million of restructuring related charges during the three and six months ended May 26, 2024, respectively, consisting primarily of 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 during the six months ended May 26, 2024. The charges were recorded in “Selling, general and administrative expenses” in the consolidated statements of income.

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 June 1, 2025
	Liabilities		Net Charges (Reversals)(1)			Payments		Foreign Currency Fluctuations		Liabilities
	March 2, 2025				June 1, 2025

	(Dollars in millions)
Severance and employee-related benefits	$	63.8	$	7.6		$	(15.6)	$	2.8	$	58.6
Contract termination costs and other	21.8		2.1			(0.1)		4.3		28.1
Total	$	85.6	$	9.7		$	(15.7)	$	7.1	$	86.7

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(1)Excludes $0.5 million in stock compensation related charges recorded in Additional paid-in capital and $7.2 million of asset impairment charges in connection with the closures of distribution centers, partially offset by a $9.3 million gain on the sale of a previously closed distribution center. Includes $1.4 million of Dockers® restructuring costs reported as discontinued operations.


	Six Months Ended June 1, 2025
	Liabilities		Net Charges (Reversals)(1)			Payments		Foreign Currency Fluctuations		Liabilities
	December 1, 2024				June 1, 2025

	(Dollars in millions)
Severance and employee-related benefits	$	83.7	$	11.6		$	(39.0)	$	2.3	$	58.6
Contract termination costs and other	20.7		3.7			(0.6)		4.3		28.1
Total	$	104.4	$	15.3		$	(39.6)	$	6.6	$	86.7

_____________

(1)Excludes $1.3 million in stock compensation related charges recorded in Additional paid-in capital, $9.2 million of asset impairment charges in connection with the closures of distribution centers, partially offset by a $9.3 million gain on the sale of a previously closed distribution center. Includes $3.2 million of Dockers® restructuring costs reported as discontinued operations.


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

	(Dollars in millions)
Severance and employee-related benefits	$	123.0	$	32.6		$	(22.6)	$	0.6	$	133.6
Contract termination costs and other	—		22.5			(2.1)		—		20.4
Total	$	123.0	$	55.1		$	(24.7)	$	0.6	$	154.0


	Six Months Ended May 26, 2024
	Liabilities		Net Charges (Reversals)(1)			Payments		Foreign Currency Fluctuations		Liabilities
	November 26, 2023				May 26, 2024

	(Dollars in millions)
Severance and employee-related benefits	$	17.8	$	146.0		$	(31.0)	$	0.8	$	133.6
Contract termination costs and other	0.2		22.5			(2.2)		(0.1)		20.4
Total	$	18.0	$	168.5		$	(33.2)	$	0.7	$	154.0

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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.