Discontinued Operations (Tables)

9 Months Ended

Aug. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

The following table reconciles the gross proceeds with the gain on sale of Dockers® intellectual property and operations in the U.S. and Canada included in “Net income (loss) from discontinued operations, net of taxes”.

	Three Months Ended
	August 31, 2025
Gross proceeds	$	194.7
Less direct costs to sell	16.6
Less carrying amount of Dockers® intellectual property and operations in the U.S. and Canada	39.1
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada	$	139.0

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 income for all periods presented.

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

	August 31, 2025		December 1, 2024
	(Dollars in millions)
Current Assets:
Inventories	$	57.7	$	108.1
Total current assets held for sale	57.7		108.1
Property, plant and equipment, net	6.8		11.3
Operating lease right-of-use assets, net	12.3		23.6
Total non-current assets held for sale	19.1		34.9
Total assets held for sale	$	76.8	$	143.0
Current Liabilities:
Short-term operating lease liabilities	$	4.5	$	5.9
Total current liabilities held for sale	4.5		5.9
Long-term operating lease liabilities	6.1		17.5
Total long-term liabilities held for sale	6.1		17.5
Total liabilities held for sale	$	10.6	$	23.4

The following table presents the results of discontinued operations:

	Three Months Ended				Nine Months Ended
	August 31, 2025		August 25, 2024		August 31, 2025		August 25, 2024
	(Dollars in millions)
Net revenues	$	55.3	$	73.7	$	194.5	$	233.5
Cost of goods sold	27.3		36.9		95.6		120.7
Gross profit	28.0		36.8		98.9		112.8
Selling, general and administrative expenses	30.4		39.2		116.0		112.1
Restructuring charges, net(1)	8.6		—		16.9		3.1
Income (loss) from discontinued operations before income taxes and gain on sale	(11.0)		(2.4)		(34.0)		(2.4)
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada before income taxes	139.0		—		139.0		—
Total income (loss) from discontinued operations before income taxes	128.0		(2.4)		105.0		(2.4)
Income tax expense (benefit)	31.9		(0.4)		26.7		(0.4)
Net income (loss) from discontinued operations, net of taxes	$	96.1	$	(2.0)	$	78.3	$	(2.0)

____________

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

Results of Discontinued Operations

The following table reconciles the gross proceeds with the gain on sale of Dockers® intellectual property and operations in the U.S. and Canada included in “Net income (loss) from discontinued operations, net of taxes”.

	Three Months Ended
	August 31, 2025
Gross proceeds	$	194.7
Less direct costs to sell	16.6
Less carrying amount of Dockers® intellectual property and operations in the U.S. and Canada	39.1
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada	$	139.0

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 income for all periods presented.

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

	August 31, 2025		December 1, 2024
	(Dollars in millions)
Current Assets:
Inventories	$	57.7	$	108.1
Total current assets held for sale	57.7		108.1
Property, plant and equipment, net	6.8		11.3
Operating lease right-of-use assets, net	12.3		23.6
Total non-current assets held for sale	19.1		34.9
Total assets held for sale	$	76.8	$	143.0
Current Liabilities:
Short-term operating lease liabilities	$	4.5	$	5.9
Total current liabilities held for sale	4.5		5.9
Long-term operating lease liabilities	6.1		17.5
Total long-term liabilities held for sale	6.1		17.5
Total liabilities held for sale	$	10.6	$	23.4

The following table presents the results of discontinued operations:

	Three Months Ended				Nine Months Ended
	August 31, 2025		August 25, 2024		August 31, 2025		August 25, 2024
	(Dollars in millions)
Net revenues	$	55.3	$	73.7	$	194.5	$	233.5
Cost of goods sold	27.3		36.9		95.6		120.7
Gross profit	28.0		36.8		98.9		112.8
Selling, general and administrative expenses	30.4		39.2		116.0		112.1
Restructuring charges, net(1)	8.6		—		16.9		3.1
Income (loss) from discontinued operations before income taxes and gain on sale	(11.0)		(2.4)		(34.0)		(2.4)
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada before income taxes	139.0		—		139.0		—
Total income (loss) from discontinued operations before income taxes	128.0		(2.4)		105.0		(2.4)
Income tax expense (benefit)	31.9		(0.4)		26.7		(0.4)
Net income (loss) from discontinued operations, net of taxes	$	96.1	$	(2.0)	$	78.3	$	(2.0)

____________

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

Reconciliation of Gross Proceeds From Discontinued Operations

The following table reconciles the gross proceeds with the gain on sale of Dockers® intellectual property and operations in the U.S. and Canada included in “Net income (loss) from discontinued operations, net of taxes”.

	Three Months Ended
	August 31, 2025
Gross proceeds	$	194.7
Less direct costs to sell	16.6
Less carrying amount of Dockers® intellectual property and operations in the U.S. and Canada	39.1
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada	$	139.0

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 income for all periods presented.

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

	August 31, 2025		December 1, 2024
	(Dollars in millions)
Current Assets:
Inventories	$	57.7	$	108.1
Total current assets held for sale	57.7		108.1
Property, plant and equipment, net	6.8		11.3
Operating lease right-of-use assets, net	12.3		23.6
Total non-current assets held for sale	19.1		34.9
Total assets held for sale	$	76.8	$	143.0
Current Liabilities:
Short-term operating lease liabilities	$	4.5	$	5.9
Total current liabilities held for sale	4.5		5.9
Long-term operating lease liabilities	6.1		17.5
Total long-term liabilities held for sale	6.1		17.5
Total liabilities held for sale	$	10.6	$	23.4

The following table presents the results of discontinued operations:

	Three Months Ended				Nine Months Ended
	August 31, 2025		August 25, 2024		August 31, 2025		August 25, 2024
	(Dollars in millions)
Net revenues	$	55.3	$	73.7	$	194.5	$	233.5
Cost of goods sold	27.3		36.9		95.6		120.7
Gross profit	28.0		36.8		98.9		112.8
Selling, general and administrative expenses	30.4		39.2		116.0		112.1
Restructuring charges, net(1)	8.6		—		16.9		3.1
Income (loss) from discontinued operations before income taxes and gain on sale	(11.0)		(2.4)		(34.0)		(2.4)
Gain on sale of Dockers® intellectual property and operations in the U.S. and Canada before income taxes	139.0		—		139.0		—
Total income (loss) from discontinued operations before income taxes	128.0		(2.4)		105.0		(2.4)
Income tax expense (benefit)	31.9		(0.4)		26.7		(0.4)
Net income (loss) from discontinued operations, net of taxes	$	96.1	$	(2.0)	$	78.3	$	(2.0)

____________

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