WOLVERINE WORLD WIDE INC /DE/WWW
WOLVERINE WORLD WIDE INC /DE/ Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill are as follows:
| Fiscal Year | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Goodwill balance at beginning of the year | $ | 424.6 | $ | 427.1 | |||||||
| Foreign currency translation effects | 6.7 | (2.5) | |||||||||
| Goodwill balance at end of the year | $ | 431.3 | $ | 424.6 | |||||||
Goodwill balances are net of accumulated impairment charges. Accumulated impairment charges were $48.4 million as of January 3, 2026 and December 28, 2024, and are related to the Sweaty Betty® reporting unit, which is part of the Active Group reportable segment.
The Company performs its annual testing for goodwill and indefinite-lived intangible asset impairment at the beginning of the fourth quarter of the fiscal year for all reporting units. The Company did not recognize any impairment charges for goodwill and indefinite-lived intangible assets during 2025 and 2024 and did not recognize any impairment charges for goodwill during 2023. The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $180.2 million and $173.0 million as of January 3, 2026 and December 28, 2024, respectively. In the third quarter of 2023, due to the continued lower current year performance of the Sperry® brand, the Company determined that a triggering event had occurred requiring impairment testing of the Sperry® trade name. Based on the results of the impairment testing, the Company recognized impairment charges of $38.3 million to the Sperry® trade name. The impairment charge was due to reductions in future cash flow assumptions mainly due to decreases in anticipated future performance and an increase in the discount rate used in the valuation.
For the Sweaty Betty® reporting unit included in the fiscal 2025 annual impairment test, the estimated fair value of the reporting unit exceeded the carrying value by 16%. The Sweaty Betty® trade name was valued using the income approach, specifically the multi-period excess earnings method. The key assumptions used in the valuations were revenue growth, EBITDA margin, and the discount rate. Although the Company believes the estimates and assumptions used in the valuations were appropriate, it is possible assumptions could change in future periods. The risk of future impairment to the Sweaty Betty® trade name and Sweaty Betty® goodwill depend on assumptions used in the determination of the trade name's and reporting unit's fair value, such as revenue growth, EBITDA margin, taxes, depreciation and amortization margin, discount rate, and assumed tax rate, or if macroeconomic conditions deteriorate and adversely affect the values of the Company's Sweaty Betty® trade name and the Sweaty Betty® reporting unit. A future impairment charge of the Sweaty Betty® trade name and the Sweaty Betty® reporting unit goodwill could have an adverse material effect on the Company's consolidated financial results. The carrying values of the Company’s Sweaty Betty® trade name indefinite-lived intangible asset and the Sweaty Betty® reporting unit goodwill were $105.4 million and $56.2 million, respectively, as of January 3, 2026.
Amortizable intangible assets are amortized using the straight-line method over their estimated useful lives. The combined gross carrying values and accumulated amortization for these amortizable intangibles are as follows:
| January 3, 2026 | |||||||||||||||||||||||
| (In millions) | Gross carrying value | Accumulated amortization | Net | Average remaining life (years) | |||||||||||||||||||
| Customer relationships | $ | 60.7 | $ | 35.4 | $ | 25.3 | 8 | ||||||||||||||||
| Other | 21.1 | 17.1 | 4.0 | 3 | |||||||||||||||||||
| Total | $ | 81.8 | $ | 52.5 | $ | 29.3 | |||||||||||||||||
| December 28, 2024 | |||||||||||||||||||||||
| (In millions) | Gross carrying value | Accumulated amortization | Net | Average remaining life (years) | |||||||||||||||||||
| Customer relationships | $ | 58.8 | $ | 31.2 | $ | 27.6 | 9 | ||||||||||||||||
| Other | 23.1 | 19.2 | 3.9 | 3 | |||||||||||||||||||
| Total | $ | 81.9 | $ | 50.4 | $ | 31.5 | |||||||||||||||||
Amortization expense for these amortizable intangible assets was $4.8 million, $4.8 million and $7.2 million for fiscal years 2025, 2024 and 2023, respectively. Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to January 3, 2026 is as follows:
| (In millions) | 2026 | 2027 | 2028 | 2029 | 2030 | ||||||||||||||||||||||||
| Amortization expense | $ | 4.7 | $ | 4.4 | $ | 4.2 | $ | 3.8 | $ | 3.4 | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 26, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.