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| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware | 38-1185150 | |
| (State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
| 9341 Courtland Drive N.E., Rockford, Michigan | 49351 | |
| (Address of Principal Executive Offices) | (Zip Code) |
| Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
2
| • |
changes in national, regional or global economic and market conditions;
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| • |
the impact of financial and credit markets on the Company, its suppliers and customers;
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| • |
changes in interest rates, tax laws, duties, tariffs, quotas or applicable assessments
in countries of import and export;
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| • |
the impact of regulation, regulatory and legal proceedings and legal compliance risks;
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| • |
currency fluctuations;
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| • |
changes in costs of future pension funding requirements;
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| • |
the risks of doing business in developing countries, and politically or economically
volatile areas;
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| • |
the ability to secure and protect owned intellectual property or use licensed
intellectual property;
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| • |
changes in consumer preferences, spending patterns, buying patterns, or demand for the
Company’s products;
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| • |
changes in relationships with, including the loss of, significant customers;
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| • |
cancellation of orders for future delivery, or the failure of the Department of Defense
to exercise future purchase options, award new contracts or the cancellation of existing
contracts, by the Department of Defense or other military purchasers;
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| • |
the cost, availability and management of raw materials, inventories, services, labor and
contract manufacturers;
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| • |
service interruptions at shipping and receiving ports;
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| • |
the ability to adapt to and compete in global footwear, apparel and consumer-direct
markets; and
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| • |
strategic actions, including new initiatives and ventures, acquisitions and
dispositions, and our success in integrating acquired businesses and new initiatives and
ventures;
|
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and many other matters of national, regional and global scale, including those of a political,
environmental, economic, business and competitive nature. These uncertainties could cause a
material difference between an actual outcome and a forward-looking statement. These
uncertainties included here are not exhaustive and are described in more detail in Part I, Item
1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended January
1, 2011 and any information regarding such Risk Factors included in the
Company’s subsequent filings with the Securities and Exchange Commission. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking statements as a
prediction of actual results. The Company does not undertake an obligation to update, amend or
clarify forward-looking statements, whether as a result of new information, future events or
otherwise.
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3
| ITEM 1. |
Financial Statements
|
| March 26, | January 1, | March 27, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
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||||||||||||
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ASSETS
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||||||||||||
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Current assets:
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||||||||||||
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Cash and cash equivalents
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$ | 91,551 | $ | 150,400 | $ | 84,944 | ||||||
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Accounts receivable, less allowances
March 26, 2011 – $12,454 January 1, 2011 – $11,413 March 27, 2010 – $15,834 |
251,929 | 196,457 | 207,735 | |||||||||
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Inventories:
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||||||||||||
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Finished products
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226,947 | 188,647 | 154,083 | |||||||||
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Raw materials and work-in-process
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23,041 | 20,008 | 17,750 | |||||||||
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||||||||||||
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249,988 | 208,655 | 171,833 | |||||||||
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||||||||||||
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Deferred income taxes
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13,855 | 13,225 | 11,361 | |||||||||
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Prepaid expenses and other current assets
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13,294 | 11,397 | 10,564 | |||||||||
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||||||||||||
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Total current assets
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620,617 | 580,134 | 486,437 | |||||||||
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||||||||||||
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Property, plant and equipment:
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||||||||||||
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Gross cost
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287,776 | 281,564 | 304,277 | |||||||||
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Accumulated depreciation
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(212,332 | ) | (207,167 | ) | (232,093 | ) | ||||||
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||||||||||||
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75,444 | 74,397 | 72,184 | |||||||||
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||||||||||||
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Other assets:
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||||||||||||
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Goodwill
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39,881 | 39,014 | 38,253 | |||||||||
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Other non-amortizable intangibles
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16,535 | 16,464 | 16,034 | |||||||||
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Cash surrender value of life insurance
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36,804 | 36,042 | 35,735 | |||||||||
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Deferred income taxes
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37,402 | 37,602 | 34,937 | |||||||||
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Other
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2,589 | 2,922 | 3,232 | |||||||||
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||||||||||||
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133,211 | 132,044 | 128,191 | |||||||||
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||||||||||||
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Total assets
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$ | 829,272 | $ | 786,575 | $ | 686,812 | ||||||
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||||||||||||
4
| March 26, | January 1, | March 27, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
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Current liabilities:
|
||||||||||||
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Accounts payable
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$ | 60,353 | $ | 64,080 | $ | 37,539 | ||||||
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Accrued salaries and wages
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12,264 | 26,848 | 11,778 | |||||||||
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Income taxes
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11,672 | 2,746 | 6,938 | |||||||||
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Taxes, other than income taxes
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10,353 | 6,586 | 9,018 | |||||||||
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Restructuring reserve
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1,046 | 1,314 | 3,561 | |||||||||
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Other accrued liabilities
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42,322 | 37,046 | 39,505 | |||||||||
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Accrued pension liabilities
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2,018 | 2,018 | 2,044 | |||||||||
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Current maturities of long-term debt
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536 | 517 | 496 | |||||||||
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Revolving credit agreement
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30,000 | — | — | |||||||||
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||||||||||||
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Total current liabilities
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170,564 | 141,155 | 110,879 | |||||||||
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||||||||||||
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Long-term debt (less current maturities)
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— | 517 | 496 | |||||||||
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Deferred compensation
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4,374 | 4,410 | 6,154 | |||||||||
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Accrued pension liabilities
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55,435 | 83,685 | 77,008 | |||||||||
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Other non-current liabilities
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13,192 | 12,911 | 10,423 | |||||||||
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||||||||||||
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Stockholders’ equity
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||||||||||||
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Common Stock
— par value $1, authorized
160,000,000 shares; shares issued
(including shares in treasury):
|
||||||||||||
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March 26, 2011 – 64,723,233 shares
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January 1, 2011 – 63,976,387 shares
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March 27, 2010 – 63,547,715 shares
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64,723 | 63,976 | 63,548 | |||||||||
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Additional paid-in capital
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119,868 | 108,286 | 89,136 | |||||||||
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Retained earnings
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819,785 | 789,684 | 728,565 | |||||||||
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Accumulated other comprehensive income (loss)
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(35,290 | ) | (41,123 | ) | (48,574 | ) | ||||||
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Cost of shares in treasury:
|
||||||||||||
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March 26, 2011 – 15,155,905 shares
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January 1, 2011 – 14,976,835 shares
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March 27, 2010 – 14,084,787 shares
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(383,379 | ) | (376,926 | ) | (350,823 | ) | ||||||
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||||||||||||
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Total stockholders’ equity
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585,707 | 543,897 | 481,852 | |||||||||
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|
||||||||||||
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Total liabilities and stockholders’ equity
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$ | 829,272 | $ | 786,575 | $ | 686,812 | ||||||
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||||||||||||
5
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
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Revenue
|
$ | 330,872 | $ | 284,897 | ||||
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Cost of goods sold
|
193,075 | 166,327 | ||||||
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Restructuring and other transition costs
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— | 981 | ||||||
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|
||||||||
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|
||||||||
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Gross profit
|
137,797 | 117,589 | ||||||
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|
||||||||
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Selling, general and administrative expenses
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88,342 | 78,540 | ||||||
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Restructuring and other transition costs
|
— | 517 | ||||||
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|
||||||||
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Operating profit
|
49,455 | 38,532 | ||||||
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|
||||||||
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Other expenses (income):
|
||||||||
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Interest expense — net
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226 | 89 | ||||||
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Other income — net
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(580 | ) | (230 | ) | ||||
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|
||||||||
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(354 | ) | (141 | ) | ||||
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|
||||||||
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Earnings before income taxes
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49,809 | 38,673 | ||||||
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|
||||||||
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Income taxes
|
13,946 | 11,214 | ||||||
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|
||||||||
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|
||||||||
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Net earnings
|
$ | 35,863 | $ | 27,459 | ||||
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|
||||||||
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|
||||||||
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Net earnings per share (see Note 2):
|
||||||||
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Basic
|
$ | 0.74 | $ | 0.55 | ||||
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Diluted
|
$ | 0.72 | $ | 0.54 | ||||
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|
||||||||
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Cash dividends declared per share
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$ | 0.12 | $ | 0.11 | ||||
6
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
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|
||||||||
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OPERATING ACTIVITIES
|
||||||||
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Net earnings
|
$ | 35,863 | $ | 27,459 | ||||
|
Adjustments to reconcile net earnings to net cash
used in operating activities:
|
||||||||
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Depreciation
|
3,559 | 3,456 | ||||||
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Amortization
|
234 | 405 | ||||||
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Deferred income taxes
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132 | 157 | ||||||
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Stock-based compensation expense
|
3,281 | 2,570 | ||||||
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Excess tax benefits from stock-based compensation
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(1,316 | ) | (470 | ) | ||||
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Pension expense
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4,039 | 3,758 | ||||||
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Pension contribution
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(31,800 | ) | (10,400 | ) | ||||
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Restructuring and other transition costs
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— | 1,498 | ||||||
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Cash payments related to restructuring and other transition costs
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(275 | ) | (3,813 | ) | ||||
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Other
|
(1,567 | ) | 3,697 | |||||
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Changes in operating assets and liabilities:
|
||||||||
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Accounts receivable
|
(53,300 | ) | (45,608 | ) | ||||
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Inventories
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(38,757 | ) | (15,155 | ) | ||||
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Other operating assets
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(1,494 | ) | (4,738 | ) | ||||
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Accounts payable
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(4,414 | ) | (4,585 | ) | ||||
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Income taxes
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8,926 | (7,696 | ) | |||||
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Other operating liabilities
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(5,866 | ) | 5,935 | |||||
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||||||||
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Net cash used in operating activities
|
(82,755 | ) | (43,530 | ) | ||||
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|
||||||||
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INVESTING ACTIVITIES
|
||||||||
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Additions to property, plant and equipment
|
(4,345 | ) | (2,168 | ) | ||||
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Other
|
(640 | ) | (509 | ) | ||||
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|
||||||||
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Net cash used in investing activities
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(4,985 | ) | (2,677 | ) | ||||
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|
||||||||
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FINANCING ACTIVITIES
|
||||||||
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Net borrowings under revolver
|
30,000 | — | ||||||
|
Payments of long-term debt and capital lease obligations
|
(530 | ) | (537 | ) | ||||
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Cash dividends paid
|
(5,331 | ) | (5,416 | ) | ||||
|
Purchase of common stock for treasury
|
(5,063 | ) | (24,600 | ) | ||||
|
Surrender of common stock for income tax purposes
|
(1,555 | ) | (838 | ) | ||||
|
Proceeds from shares issued under stock incentive plans
|
7,415 | 5,417 | ||||||
|
Excess tax benefits from stock-based compensation
|
1,316 | 470 | ||||||
|
|
||||||||
|
Net cash provided by (used in) financing activities
|
26,252 | (25,504 | ) | |||||
|
Effect of foreign exchange rate changes
|
2,639 | (3,784 | ) | |||||
|
|
||||||||
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Decrease in cash and cash equivalents
|
(58,849 | ) | (75,495 | ) | ||||
|
|
||||||||
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Cash and cash equivalents at beginning of the period
|
150,400 | 160,439 | ||||||
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||||||||
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Cash and cash equivalents at end of the period
|
$ | 91,551 | $ | 84,944 | ||||
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7
8
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
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Numerator:
|
||||||||
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Net earnings
|
$ | 35,863 | $ | 27,459 | ||||
|
Adjustment for earnings allocated to nonvested restricted common stock
|
(588 | ) | (556 | ) | ||||
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|
||||||||
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Net earnings used in calculating basic earnings per share
|
35,275 | 26,903 | ||||||
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Adjustment for earnings reallocated to nonvested restricted common stock
|
18 | 6 | ||||||
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Net earnings used in calculating diluted earnings per share
|
$ | 35,293 | $ | 26,909 | ||||
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Denominator:
|
||||||||
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Weighted average shares outstanding
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49,292,383 | 49,593,214 | ||||||
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Adjustment for nonvested restricted common stock
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(1,379,644 | ) | (1,092,849 | ) | ||||
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Shares used in calculating basic earnings per share
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47,912,739 | 48,500,365 | ||||||
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Effect of dilutive stock options
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1,264,737 | 1,029,733 | ||||||
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Shares used in calculating diluted earnings per share
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49,177,476 | 49,530,098 | ||||||
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Net earnings per share:
|
||||||||
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Basic
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$ | 0.74 | $ | 0.55 | ||||
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Diluted
|
$ | 0.72 | $ | 0.54 | ||||
| Goodwill | Trademarks | Total | ||||||||||
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Balance at March 27, 2010
|
$ | 38,253 | $ | 16,034 | $ | 54,287 | ||||||
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Intangibles acquired
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— | 360 | 360 | |||||||||
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Foreign currency translation effects
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761 | 70 | 831 | |||||||||
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Balance at January 1, 2011
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39,014 | 16,464 | 55,478 | |||||||||
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Intangibles disposed
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— | (11 | ) | (11 | ) | |||||||
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Foreign currency translation effects
|
867 | 82 | 949 | |||||||||
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Balance at March 26, 2011
|
$ | 39,881 | 16,535 | 56,416 | ||||||||
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||||||||||||
9
| March 26, | January 1, | March 27, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
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Foreign currency translation adjustments
|
$ | 18,687 | $ | 11,548 | $ | 6,574 | ||||||
|
Fair value of foreign exchange contracts, net of taxes
|
(3,121 | ) | (1,815 | ) | (1,411 | ) | ||||||
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Pension adjustments, net of taxes
|
(50,856 | ) | (50,856 | ) | (53,737 | ) | ||||||
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||||||||||||
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Accumulated other comprehensive income (loss)
|
$ | (35,290 | ) | $ | (41,123 | ) | $ | (48,574 | ) | |||
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||||||||||||
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
|
Net earnings
|
$ | 35,863 | $ | 27,459 | ||||
|
Other comprehensive income (loss):
|
||||||||
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Foreign currency translation adjustments
|
7,139 | (7,903 | ) | |||||
|
Change in fair value of foreign exchange contracts, net of taxes
|
(1,306 | ) | 2,135 | |||||
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||||||||
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Comprehensive income
|
$ | 41,696 | $ | 21,691 | ||||
|
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||||||||
10
| 12 Weeks Ended March 26, 2011 | ||||||||||||||||
| Branded | ||||||||||||||||
| Footwear, | ||||||||||||||||
| Apparel and | Other | |||||||||||||||
| Licensing | Businesses | Corporate | Consolidated | |||||||||||||
|
Revenue
|
$ | 304,316 | $ | 26,556 | $ | — | $ | 330,872 | ||||||||
|
Intersegment revenue
|
9,023 | 365 | — | 9,388 | ||||||||||||
|
Earnings (loss) before income taxes
|
59,459 | (1,060 | ) | (8,590 | ) | 49,809 | ||||||||||
|
Total assets
|
650,322 | 62,541 | 116,409 | 829,272 | ||||||||||||
| 12 Weeks Ended March 27, 2010 | ||||||||||||||||
| Branded | ||||||||||||||||
| Footwear, | ||||||||||||||||
| Apparel and | Other | |||||||||||||||
| Licensing | Businesses | Corporate | Consolidated | |||||||||||||
|
Revenue
|
$ | 261,638 | $ | 23,259 | $ | — | $ | 284,897 | ||||||||
|
Intersegment revenue
|
7,421 | 729 | — | 8,150 | ||||||||||||
|
Earnings (loss) before income taxes
|
47,916 | (1,392 | ) | (7,851 | ) | 38,673 | ||||||||||
|
Total assets
|
520,477 | 46,656 | 119,679 | 686,812 | ||||||||||||
| Level 1: |
Fair value is measured using quoted prices (unadjusted) in active
markets for identical assets and liabilities.
|
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| Level 2: |
Fair value is measured using either direct or indirect inputs,
other than quoted prices included within Level 1, which are
observable for similar assets or liabilities.
|
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|
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| Level 3: |
Fair value is measured using valuation techniques in which one or
more significant inputs are unobservable.
|
11
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
|
Expected market price volatility
(1)
|
38.6 | % | 37.9 | % | ||||
|
Risk-free interest rate
(2)
|
1.9 | % | 1.9 | % | ||||
|
Dividend yield
(3)
|
1.6 | % | 1.9 | % | ||||
|
Expected term
(4)
|
4 years | 4 years | ||||||
| (1) |
Based on historical volatility of the Company’s common stock. The expected volatility is based on the
daily percentage change in the price of the stock over the four years prior to the grant.
|
|
| (2) |
Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant.
|
|
| (3) |
Represents the Company’s cash dividend yield for the expected term.
|
|
| (4) |
Represents the period of time that options granted are expected to be outstanding. As part of the
determination of the expected term, the Company concluded that all employee groups exhibit similar exercise
and post-vesting termination behavior.
|
12
| 12 Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2011 | 2010 | |||||||
|
Service cost pertaining to benefits
earned during the period
|
$ | 1,500 | $ | 1,322 | ||||
|
Interest cost on projected benefit obligations
|
3,075 | 2,935 | ||||||
|
Expected return on pension assets
|
(3,323 | ) | (2,877 | ) | ||||
|
Net amortization loss
|
2,787 | 2,378 | ||||||
|
|
||||||||
|
Net pension cost
|
$ | 4,039 | $ | 3,758 | ||||
|
|
||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | |||||||||||||||||||
|
Minimum royalties
|
1,693 | 880 | 898 | 916 | 934 | 953 | ||||||||||||||||||
|
Minimum advertising
|
2,091 | 1,999 | 2,059 | 2,121 | 2,184 | 4,169 | ||||||||||||||||||
13
| Non-cash | ||||||||||||||||||||
| Severance and | charges related | |||||||||||||||||||
| employee | to property and | Facility exit | Other related | |||||||||||||||||
| related | equipment | costs | restructuring | Total | ||||||||||||||||
|
Balance at March 27, 2010
|
$ | 1,824 | $ | — | $ | 1,355 | $ | 382 | $ | 3,561 | ||||||||||
|
Charges incurred
|
315 | 715 | 697 | 96 | 1,823 | |||||||||||||||
|
Amounts paid or utilized
|
(1,852 | ) | (715 | ) | (1,161 | ) | (342 | ) | (4,070 | ) | ||||||||||
|
|
||||||||||||||||||||
|
Balance at January 1, 2011
|
$ | 287 | $ | — | $ | 891 | $ | 136 | $ | 1,314 | ||||||||||
|
Amounts paid or utilized
|
(243 | ) | — | (17 | ) | (8 | ) | (268 | ) | |||||||||||
|
|
||||||||||||||||||||
|
Balance at March 26, 2011
|
$ | 44 | $ | — | $ | 874 | $ | 128 | $ | 1,046 | ||||||||||
|
|
||||||||||||||||||||
14
| ITEM 2. |
Management’s Discussion and Analysis of Financial Condition and
Results of Operations
|
| • |
Revenue for the first quarter of 2011 was $330.9 million, 16.1%
above first quarter 2010 revenue of $284.9 million, reflecting
strong organic growth across all operating groups.
|
||
| • |
Accounts receivable increased 21.3% in the first quarter of 2011
compared to the first quarter of 2010, driven primarily by the
increase and timing of revenue in the quarter.
|
||
| • |
Inventory increased $78.2 million, or 45.5%, in the first quarter
of 2011 compared to the first quarter of 2010, reflecting
strategic purchases of core product from third-party suppliers
prior to announced price increases, inventory for new collections
and the excellent outlook for the balance of the fiscal year.
|
||
| • |
Operating expenses as a percentage of revenue decreased to 26.7%
in the first quarter of 2011, from 27.7% in the first quarter of
2010, reflecting strong revenue growth and continued discipline
over general and administrative expenses.
|
||
| • |
The effective tax rate in the first quarter of 2011 was 28.0%
compared to 29.0% in the first quarter of 2010. This decrease was
driven by more favorable dispersion of taxable income to lower tax
rate jurisdictions and the impact of the U.S. research and
development tax credit that was not in effect in the first quarter
of 2010.
|
||
| • |
Diluted earnings per share for the first quarter of 2011 were
$0.72 per share compared to $0.54 per share for the first quarter
of 2010, including the impact of $0.02 per share of restructuring
and other transition costs in 2010.
|
||
| • |
The Company declared cash dividends of $0.12 per share in the
first quarter of 2011 compared to $0.11 per share in the first
quarter of 2010, a 9.1% increase.
|
||
| • |
During the first quarter of 2011, the Company repurchased
approximately 142,000 shares of common stock for approximately
$5.1 million.
|
15
| 2011 | 2010 | Change | ||||||||||||||||||||||
| % of | % of | |||||||||||||||||||||||
| (Millions of Dollars, Except Per Share Data) | $ | Total | $ | Total | $ | % | ||||||||||||||||||
|
Revenue
|
||||||||||||||||||||||||
|
Branded footwear, apparel and licensing
|
$ | 304.3 | 92.0 | % | $ | 261.6 | 91.8 | % | $ | 42.7 | 16.3 | % | ||||||||||||
|
Other business units
|
26.6 | 8.0 | % | 23.3 | 8.2 | % | 3.3 | 14.2 | % | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total Revenue
|
$ | 330.9 | 100.0 | % | $ | 284.9 | 100.0 | % | $ | 46.0 | 16.1 | % | ||||||||||||
|
|
||||||||||||||||||||||||
| % of | % of | |||||||||||||||||||||||
| $ | Revenue | $ | Revenue | $ | % | |||||||||||||||||||
|
Gross Profit
|
||||||||||||||||||||||||
|
Branded footwear, apparel and licensing
|
$ | 127.2 | 41.8 | % | $ | 108.8 | 41.6 | % | $ | 18.4 | 16.9 | % | ||||||||||||
|
Other business units
|
10.6 | 39.8 | % | 8.8 | 37.8 | % | 1.8 | 20.5 | % | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total Gross Profit
|
$ | 137.8 | 41.6 | % | $ | 117.6 | 41.3 | % | $ | 20.2 | 17.2 | % | ||||||||||||
|
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Selling, general and administrative expenses
|
$ | 88.3 | 26.7 | % | $ | 78.5 | 27.5 | % | $ | 9.8 | 12.5 | % | ||||||||||||
|
Restructuring and other transition costs
|
— | — | 0.5 | 0.2 | % | (0.5 | ) | (100.0 | %) | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total Operating Expenses
|
$ | 88.3 | 26.7 | % | $ | 79.0 | 27.7 | % | $ | 9.3 | 11.8 | % | ||||||||||||
|
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Interest expense — net
|
$ | 0.2 | 0.1 | % | $ | 0.1 | 0.0 | % | $ | 0.1 | 100.0 | % | ||||||||||||
|
Other income — net
|
(0.6 | ) | 0.2 | % | (0.2 | ) | 0.1 | % | 0.4 | 200.0 | % | |||||||||||||
|
Earnings before income taxes
|
49.8 | 15.0 | % | 38.7 | 13.6 | % | 11.1 | 28.7 | % | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Net Earnings
|
$ | 35.9 | 10.8 | % | $ | 27.5 | 9.6 | % | $ | 8.4 | 30.5 | % | ||||||||||||
|
|
||||||||||||||||||||||||
|
Diluted earnings per share
|
$ | 0.72 | — | $ | 0.54 | — | $ | 0.18 | 33.3 | % | ||||||||||||||
| • |
Outdoor Group
, consisting of
Merrell
®
,
Chaco
®
and
Patagonia
®
footwear and
Merrell
®
brand apparel;
|
| • |
Heritage Group
, consisting of
Bates
®
,
HyTest
®
,
Wolverine
®
boots and shoes and
Wolverine
®
brand apparel,
Cat
®
footwear and
Harley-Davidson
®
footwear; and
|
| • |
Lifestyle Group
, consisting of
Hush Puppies
®
,
Soft Style
®
Cushe
®
and
Sebago
®
footwear and apparel.
|
16
| 2011 | 2010 | Change | ||||||||||||||||||||||
| % of | % of | |||||||||||||||||||||||
| (Millions of Dollars) | $ | Total | $ | Total | $ | % | ||||||||||||||||||
|
Outdoor Group
|
$ | 138.1 | 41.7 | % | $ | 113.5 | 39.8 | % | $ | 24.6 | 21.7 | % | ||||||||||||
|
Heritage Group
|
111.1 | 33.6 | % | 93.9 | 32.9 | % | 17.2 | 18.3 | % | |||||||||||||||
|
Lifestyle Group
|
52.0 | 15.7 | % | 51.4 | 18.1 | % | 0.6 | 1.2 | % | |||||||||||||||
|
Other
|
3.1 | 1.0 | % | 2.8 | 1.0 | % | 0.3 | 10.7 | % | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total branded footwear, apparel and
licensing revenue
|
$ | 304.3 | 92.0 | % | $ | 261.6 | 91.8 | % | $ | 42.7 | 16.3 | % | ||||||||||||
|
Other business units
|
26.6 | 8.0 | % | 23.3 | 8.2 | % | 3.3 | 14.2 | % | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total Revenue
|
$ | 330.9 | 100.0 | % | $ | 284.9 | 100.0 | % | $ | 46.0 | 16.1 | % | ||||||||||||
|
|
||||||||||||||||||||||||
17
18
| Change from | ||||||||||||||||||||
| March 26, | January 1, | March 27, | January 1, | March 27, | ||||||||||||||||
| (Millions of dollars) | 2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
|
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 91.6 | $ | 150.4 | $ | 84.9 | $ | (58.8 | ) | $ | 6.7 | |||||||||
|
Accounts receivable
|
251.9 | 196.5 | 207.7 | 55.4 | 44.2 | |||||||||||||||
|
Inventories
|
250.0 | 208.7 | 171.8 | 41.3 | 78.2 | |||||||||||||||
|
Accounts payable
|
60.4 | 64.1 | 37.5 | (3.7 | ) | 22.9 | ||||||||||||||
|
Other current accrued liabilities
|
79.7 | 76.6 | 72.8 | 3.1 | 6.9 | |||||||||||||||
|
Interest-bearing debt
|
30.5 | 1.0 | 1.0 | 29.5 | 29.5 | |||||||||||||||
|
|
||||||||||||||||||||
|
Cash used in operating activities
|
(82.8 | ) | (43.5 | ) | (39.3 | ) | ||||||||||||||
|
Additions to property, plant and equipment
|
4.3 | 2.2 | 2.1 | |||||||||||||||||
|
Depreciation and amortization
|
3.8 | 3.9 | (0.1 | ) | ||||||||||||||||
19
20
| ITEM 3. |
Quantitative and Qualitative Disclosures about Market Risk
|
21
| ITEM 4. |
Controls and Procedures
|
22
| ITEM 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
| Total Number | ||||||||||||||||
| of Shares | Maximum | |||||||||||||||
| Purchased | Dollar Amount | |||||||||||||||
| as Part of | that | |||||||||||||||
| Total | Average | Publicly | May Yet | |||||||||||||
| Number of | Price | Announced | Be Purchased | |||||||||||||
| Shares | Paid per | Plans or | Under the Plans | |||||||||||||
| Period | Purchased | Share | Programs | or Programs | ||||||||||||
|
Period 1 (January 2, 2011 to January 29, 2011)
|
||||||||||||||||
|
Common Stock Repurchase Program
(1)
|
— | $ | — | — | $ | 154,110,177 | ||||||||||
|
Employee Transactions
(2)
|
1,527 | 31.88 | — | |||||||||||||
|
Period 2 (January 30, 2011 to February 26, 2011)
|
||||||||||||||||
|
Common Stock Repurchase Program
(1)
|
— | $ | — | — | $ | 154,110,177 | ||||||||||
|
Employee Transactions
(2)
|
44,430 | 36.09 | — | |||||||||||||
|
Period 3 (February 27, 2011 to March 26, 2011)
|
||||||||||||||||
|
Common Stock Repurchase Program
(1)
|
142,198 | $ | 35.57 | 142,198 | $ | 149,051,933 | ||||||||||
|
Employee Transactions
(2)
|
24,246 | 36.41 | — | |||||||||||||
|
Total for Quarter ended March 26, 2011
|
||||||||||||||||
|
Common Stock Repurchase Program
(1)
|
142,198 | $ | 35.57 | 142,198 | $ | 149,051,933 | ||||||||||
|
Employee Transactions
(2)
|
70,203 | 36.11 | — | |||||||||||||
| (1) |
The Company’s Board of Directors approved a common stock repurchase
program on February 11, 2010. This program authorized the repurchase
of up to $200.0 million of common stock over a four-year period,
commencing on the effective date of the program. All shares
repurchased during the period covered by this Quarterly Report on Form
10-Q (other than repurchases pursuant to the “Employee Transactions”
set forth above) were purchased under publicly announced programs.
|
|
| (2) |
Employee transactions include: (1) shares delivered or attested in
satisfaction of the exercise price and/or tax withholding obligations
by holders of employee stock options who exercised options, and (2)
restricted shares withheld to offset statutory minimum tax withholding
that occurs upon vesting of restricted shares. The Company’s employee
stock compensation plans provide that the shares delivered or attested
to, or withheld, shall be valued at the closing price of the Company’s
common stock on the date the relevant transaction occurs.
|
23
| ITEM 6. |
Exhibits
|
|
The following documents are filed as exhibits to this report on Form 10-Q:
|
| Exhibit | ||||
| Number | Document | |||
|
|
||||
| 3.1 |
Restated Certificate of Incorporation. Previously filed as
Exhibit 3.1 to the Company’s Annual Report on
Form 10-K
for the
year ended December 30, 2006. Here incorporated by reference.
|
|||
|
|
||||
| 3.2 |
Amended and Restated Bylaws. Previously filed as Exhibit 3.1 to
the Company’s Current Report on Form 8-K filed on October 15,
2008. Here incorporated by reference.
|
|||
|
|
||||
| 31.1 |
Certification of Chairman, Chief Executive Officer and President
under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
|
|
||||
| 31.2 |
Certification of Senior Vice President, Chief Financial Officer
and Treasurer under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
|
|
||||
| 32 |
Certification pursuant to 18 U.S.C. §1350.
|
|||
|
|
||||
| 101 |
The following materials from the Company’s Quarterly Report on
Form 10-Q for the twelve weeks ended March 26, 2011, formatted in
XBRL (eXtensible Business Reporting Language): (i) Consolidated
Condensed Balance Sheets as of March 26, 2011, January 1, 2011 and
March 27, 2010, (ii) Consolidated Condensed Statements of
Operations for the twelve weeks ended March 26, 2011 and March 27,
2010, (iii) Condensed Consolidated Condensed Statements of Cash
Flows for the twelve weeks ended March 26, 2011 and March 27,
2010, and (iv) Notes to Consolidated Condensed Financial
Statements, tagged as blocks of text.*
|
|||
| * |
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are
deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or
12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability
under those sections.
|
24
|
|
WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES | |||
|
|
||||
|
May 3, 2011
|
/s/ Blake W. Krueger
|
|||
|
Date
|
Blake W. Krueger | |||
|
|
Chairman, Chief Executive Officer and President | |||
|
|
(Duly Authorized Signatory for Registrant) | |||
|
|
||||
|
May 3, 2011
|
/s/ Donald T. Grimes
|
|||
|
Date
|
Donald T. Grimes | |||
|
|
Senior Vice President, Chief Financial Officer and Treasurer | |||
|
|
(Principal Financial Officer and Duly Authorized | |||
|
|
Signatory for Registrant) |
25
| Exhibit | ||||
| Number | Document | |||
|
|
||||
| 3.1 |
Restated Certificate of Incorporation. Previously filed as
Exhibit 3.1 to the Company’s Annual Report on
Form 10-K
for the
year ended December 30, 2006. Here incorporated by reference.
|
|||
|
|
||||
| 3.2 |
Amended and Restated Bylaws. Previously filed as Exhibit 3.1 to
the Company’s Current Report on Form 8-K filed on October 15,
2008. Here incorporated by reference.
|
|||
|
|
||||
| 31.1 |
Certification of Chairman, Chief Executive Officer and President
under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
|
|
||||
| 31.2 |
Certification of Senior Vice President, Chief Financial Officer
and Treasurer under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
|
|
||||
| 32 |
Certification pursuant to 18 U.S.C. §1350.
|
|||
|
|
||||
| 101 |
The following materials from the Company’s Quarterly Report on
Form 10-Q for the twelve weeks ended March 26, 2011, formatted in
XBRL (eXtensible Business Reporting Language): (i) Consolidated
Condensed Balance Sheets as of March 26, 2011, January 1, 2011 and
March 27, 2010, (ii) Consolidated Condensed Statements of
Operations for the twelve weeks ended March 26, 2011 and March 27,
2010, (iii) Condensed Consolidated Condensed Statements of Cash
Flows for the twelve weeks ended March 26, 2011 and March 27,
2010, and (iv) Notes to Consolidated Condensed Financial
Statements, tagged as blocks of text.*
|
|||
| * |
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are
deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or
12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability
under those sections.
|
26
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|