
	June 28, 2025		December 28, 2024		June 29, 2024
Global Champion business - discontinued operations	$	—	$	38,841	$	463,026
Champion Japan business - discontinued operations	57,421		61,589		47,977
U.S.-based outlet store business - discontinued operations	—		—		—
Current assets held for sale	$	57,421	$	100,430	$	511,003

Global Champion business - discontinued operations	$	—	$	31,935	$	891,063
Champion Japan business - discontinued operations	23,412		27,658		28,415
U.S.-based outlet store business - discontinued operations	—		—		5,675
Noncurrent assets held for sale	$	23,412	$	59,593	$	925,153

Global Champion business - discontinued operations	$	—	$	10,716	$	233,272
Champion Japan business - discontinued operations	60,281		32,274		25,971
U.S.-based outlet store business - discontinued operations	—		—		6,991
Current liabilities held for sale	$	60,281	$	42,990	$	266,234

Global Champion business - discontinued operations	$	—	$	11,488	$	105,678
Champion Japan business - discontinued operations	13,582		21,099		20,926
U.S.-based outlet store business - discontinued operations	—		—		4,361
Noncurrent liabilities held for sale	$	13,582	$	32,587	$	130,965

In 2024, the Company determined that the exit of the global Champion business, U.S.-based outlet store business and the Champion Japan business represent multiple components of a single strategic plan that met held-for-sale and discontinued operations accounting criteria and began to separately report the results of these businesses as discontinued operations in its Condensed Consolidated Statements of Operations and to present the related assets and liabilities as held for sale in its Condensed Consolidated Balance Sheets. The Company completed the exit of the U.S.-based outlet store business in July 2024 and completed the sale of the intellectual property and certain operating assets of the global Champion business in the fourth quarter of 2024 on September 30, 2024 (“Initial Closing”). The Company continued to operate the Champion business in certain sectors and geographies through a transition period that ended on January 31, 2025 (“Deferred Business”). On January 31, 2025, the Company completed the sale of the Deferred Business (“Deferred Closing”). In December 2024, the Company finalized plans to exit the Champion Japan business and expects to complete the sale of the business within the current fiscal year. The results of these businesses are reported in the “Loss from discontinued operations” line in the Condensed Consolidated Statements of Operations. In addition, certain expenses related to the operations of the global Champion business, the U.S.-based outlet store business and the Champion Japan business were included in general corporate expenses, restructuring and other action-related charges and amortization of intangibles, which were previously excluded from segment operating profit, and have been reclassified to discontinued operations in 2024. These changes have been applied to all periods presented.

In the second quarter of 2024, the Company announced that it had reached an agreement to sell the intellectual property and certain operating assets of the global Champion business to Authentic Brands Group LLC (“Authentic”). Pursuant to the agreement, as amended, the Company completed the Initial Closing for the sale of the intellectual property and certain operating assets of the global Champion business to Authentic in the fourth quarter of 2024 on September 30, 2024 in exchange for gross cash proceeds of $857,450 and a receivable of $12,162, of which $4,161 was received during the six months ended June 28, 2025. In addition, the Company has the potential to receive additional contingent cash consideration of up to $300,000 pursuant to the agreement. The Company continued to operate the Deferred Business through a transition period that ended on January 31, 2025. On January 31, 2025, the Company completed the Deferred Closing for the sale of the Deferred Business. The Company continued certain sales from its supply chain to Authentic and the applicable service recipients on a transitional basis after the sale of the business under a manufacturing and supply agreement that was signed as part of closing the transaction. Additionally, the Company entered into a transitional services agreement pursuant to which the Company provided transitional services including information technology, human resources, finance and accounting services. The Company will continue to provide these services to Authentic and the applicable service recipients over a period of approximately 12 months from the completion of the Initial Closing. The sales and the related profit are included in continuing operations in the Condensed Consolidated Statements of Operations and in Other in Note “Business Segment Information”. The related receivables from Authentic or the applicable service recipients are included in “Trade accounts receivable, net” and “Other current assets” in the Condensed Consolidated Balance Sheets for all periods presented.

On January 31, 2025, the Company completed the Deferred Closing and received gross cash proceeds of $31,020 inclusive of fee reimbursements and other adjustments resulting in net cash proceeds of $29,713. During the quarter and six months ended June 28, 2025, the Company recognized a loss of $1,131 and $6,093, respectively, as the Company finalized the Deferred Close and recognized post-close working capital and proceed adjustments. This loss was recorded in “Loss on sale of businesses and classification of assets held for sale” within discontinued operations.

The following table reconciles the net proceeds received from the Deferred Closing for the six months ended June 28, 2025, which are reported in the “Proceeds from disposition of businesses” line within investing activities in the Condensed Consolidated Statements of Cash Flows, to the loss recognized on the global Champion business, which is reported in the “Loss on sale of businesses and classification of assets held for sale” line within operating activities in the Condensed Consolidated Statements of Cash Flows:


	Quarter Ended June 28, 2025		Six Months Ended June 28, 2025
Net cash proceeds received	$	—	$	29,713
Less: Net carrying value of deferred businesses	—		(29,528)

Less: Working capital and proceed adjustments	(1,131)		(6,278)
Loss on global Champion business	$	(1,131)	$	(6,093)

In the second quarter of 2024, the Company began actively marketing its U.S.-based outlet store business to prospective buyers. In July 2024, the Company entered into a purchase agreement with Restore Capital (HCR Stores), LLC (“Restore”), an affiliate of Hilco Merchant Resources, LLC, and completed the exit of the U.S.-based outlet store business. Under the purchase agreement, the Company paid Restore $12,000 at closing and an additional $3,000 in January 2025 and to provide certain inventory to Restore, in exchange for Restore agreeing to assume the operations and certain liabilities of the Company’s U.S.-based outlet store business. As of June 28, 2025, the Company had transferred the remaining inventory to Restore and no further obligations exist. The remaining inventory was previously reflected in the “Inventories” line and the offsetting valuation allowance was previously reflected in the “Valuation allowance - U.S.-based outlet store business” line in the “Assets and liabilities of the discontinued operations of the global Champion, U.S.-based outlet store and Champion Japan businesses” table below. The agreement with Restore did not include Champion-branded U.S. retail stores, which were addressed in accordance with the purchase agreement governing the sale of the global Champion business to Authentic.

Upon meeting the criteria for held-for-sale classification in the second quarter of 2024, which qualified as a triggering event, the Company performed an impairment analysis of the goodwill associated with the Company’s U.S.-based outlet store business, which resulted in a non-cash impairment charge of $2,500 in the quarter and six months ended June 29, 2024. Additionally, the Company recorded a valuation allowance against the net assets held for sale, which were primarily current assets, to adjust the carrying value of the U.S.-based outlet store business to the estimated fair value less costs of disposal, resulting in a non-cash charge of $51,071 in the quarter and six months ended June 29, 2024. This non-cash charge is reported as "Loss on classification of assets held for sale - U.S.-based outlet store business" for the quarter and six months ended June 29, 2024 in the summarized discontinued operations financial information below.

The sale of the intellectual property and certain operating assets of the global Champion business, which occurred in the fourth quarter of 2024, excluded the Champion Japan business. In December 2024, the Company finalized plans to exit the Champion Japan business and expects to complete the sale of the business within the current fiscal year. The Company determined that the exit of the Champion Japan business represented a component of the single strategic plan that included the global Champion and U.S.-based outlet store businesses, which met held-for-sale and discontinued operations accounting criteria in 2024. Accordingly, the Company began to separately report the results of Champion Japan business as discontinued operations in its Condensed Consolidated Statements of Operations and to present the related assets and liabilities as held for sale in its Condensed Consolidated Balance Sheets in the fourth quarter of 2024. These changes have been applied to all periods presented. The Company will continue to operate the Champion Japan business as a licensee of Authentic pursuant to the terms of a license agreement entered into at the Initial Closing until the sale of the Champion Japan business is completed. The operations of the Champion Japan business were previously reported in the International segment.

The operating results of discontinued operations only reflect revenues and expenses that are directly attributable to the global Champion, U.S.-based outlet store and Champion Japan businesses (the “Discontinued Operations”) that have been eliminated from continuing operations. Discontinued operations does not include any allocation of corporate overhead expense. The Company did not allocate interest expense to discontinued operations in the quarter ended June 28, 2025 and allocated interest expense to discontinued operations of approximately $17,605 in the quarter ended June 29, 2024. The Company allocated interest expense to discontinued operations of approximately $223 and $35,662 in the six months ended June 28, 2025 and June 29, 2024, respectively, resulting from the requirement to pay down a portion of the Company’s outstanding term debt under the Senior Secured Credit Facility with the net proceeds from the sale of the global Champion business. Interest expense was allocated to the global Champion business on a pro-rata basis for the expected amount of debt required to be repaid under the Senior Secured Credit Facility, compared to the total outstanding term debt subject to the repayment requirement. There was no interest allocated to the discontinued operations of the U.S.-based outlet store business or the Champion Japan business. The key components of the operating results of the Discontinued Operations are as follows:


	Quarters Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales	$	28,299	$	380,000	$	66,284	$	791,526
Cost of sales	17,734		319,532		53,246		567,564
Gross profit	10,565		60,468		13,038		223,962
Selling, general and administrative expenses	13,108		152,158		33,073		298,960
Impairment of goodwill	—		2,500		—		2,500
Loss on sale of businesses and classification of assets held for sale	1,131		51,071		6,093		51,071
Operating loss	(3,674)		(145,261)		(26,128)		(128,569)
Other expenses	180		170		370		379
Interest expense, net	78		15,584		417		31,690
Loss from discontinued operations before income taxes	(3,932)		(161,015)		(26,915)		(160,638)
Income tax (benefit) expense	(50)		1,782		569		8,479
Loss from discontinued operations, net of tax	$	(3,882)	$	(162,797)	$	(27,484)	$	(169,117)


	June 28, 2025		December 28, 2024		June 29, 2024
Cash and cash equivalents	$	500	$	500	$	19,434
Trade accounts receivable, net	30,588		32,122		138,089
Inventories	19,145		63,058		361,549
Other current assets	7,188		14,681		35,800
Valuation allowance - Global Champion Business Deferred Closing	—		(8,554)		—
Valuation allowance - U.S.-based outlet store business	—		(1,377)		(43,869)
Current assets held for sale - discontinued operations	57,421		100,430		511,003
Property, net	1,668		10,585		55,906
Right-of-use assets	12,129		39,137		146,439
Trademarks and other identifiable intangibles, net	—		273		267,610
Goodwill	5,316		4,907		446,677
Deferred tax assets	—		—		3,224
Other noncurrent assets	4,299		4,691		5,297

Noncurrent assets held for sale - discontinued operations	23,412		59,593		925,153
Total assets of discontinued operations	$	80,833	$	160,023	$	1,436,156
Accounts payable	$	40,042	$	15,139	$	149,509
Accrued liabilities	15,922		14,640		73,186
Lease liabilities	4,317		13,211		43,539
Current liabilities held for sale - discontinued operations	60,281		42,990		266,234
Lease liabilities - noncurrent	4,950		24,771		109,238
Pension and postretirement benefits	5,601		4,983		5,605
Other noncurrent liabilities	3,031		2,833		16,122
Noncurrent liabilities held for sale - discontinued operations	13,582		32,587		130,965
Total liabilities of discontinued operations	$	73,863	$	75,577	$	397,199


	Quarters Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Depreciation	$	—	$	3,759	$	—	$	7,121
Amortization	$	—	$	2,721	$	—	$	5,453
Capital expenditures	$	—	$	2,662	$	—	$	4,251
Impairment of goodwill	$	—	$	2,500	$	—	$	2,500
Inventory write-down charges	$	—	$	66,263	$	—	$	66,263
Loss on sale of businesses and classification of assets held for sale	$	1,131	$	51,071	$	6,093	$	51,071
Capital expenditures included in accounts payable at end of period	$	—	$	185	$	—	$	185