v3.25.1
BUSINESS SEGMENT INFORMATION
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
The Company has two reportable segments:
•Wrangler — Wrangler® branded denim, apparel, footwear and accessories.
•Lee — Lee® branded denim, apparel, footwear and accessories.
The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand net revenues and segment profit of Wrangler® and Lee®, which are the Company's reportable segments. Segment profit is defined as income before income taxes, interest expense, interest income and corporate and other expenses. Segment assets and segment expenditures for long-lived assets are not regularly provided to or used by the chief operating decision maker and thus are not disclosed.
In addition, we report an "Other" category to reconcile the Company's segment revenues to total revenues and segment profit to income before income taxes, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of Chic®, Rock & Republic®, other company-owned brands and private label apparel, and the associated costs.
Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2024 Annual Report on Form 10-K.
Corporate and other expenses, including certain acquisition-related costs, restructuring and transformation costs and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit.
The following table presents financial information for the Company's reportable segments and income before income taxes:
Three Months Ended March
(In thousands)20252024
Wrangler
Net revenues (1)
$420,246 $409,494 
Cost of goods sold226,184 233,280 
Selling, general and administrative expenses105,829 99,402 
Other segment items (2)
1,385 2,146 
Segment profit$86,848 $74,666 
Lee
Net revenues (1)
$199,900 $219,443 
Cost of goods sold98,008 111,225 
Selling, general and administrative expenses68,737 72,078 
Other segment items (2)
708 1,046 
Segment profit$32,447 $35,094 
Total reportable segment profit$119,295 $109,760 
Corporate and other expenses(56,779)(28,060)
Interest expense(9,808)(9,292)
Interest income3,440 2,425 
Loss related to other revenues (3)
(217)(153)
Income before income taxes$55,931 $74,680 
(1) Refer to Note 3 to the Company's financial statements in this Form 10-Q for the reconciliation of reportable segment revenues to consolidated net revenues.
(2) "Other segment items" primarily includes funding fees related to the sale of trade accounts receivable program discussed in Note 5 to the Company's financial statements in this Form 10-Q. Funding fees are reflected in the Company's statements of operations within "other expense, net".
(3) "Loss related to other revenues" includes sales and licensing of Chic®, Rock & Republic®, other company-owned brands and private label apparel, and the associated costs, for purposes of reconciling "total reportable segment profit" to consolidated "income before income taxes."