0000110471 2010-03-28 2010-06-19 0000110471 2009-03-29 2009-06-20 0000110471 2009-01-03 0000110471 2009-01-04 2009-06-20 0000110471 2010-06-19 0000110471 2010-01-02 0000110471 2009-06-20 0000110471 2010-07-23 0000110471 2010-01-03 2010-06-19 iso4217:USD xbrli:shares xbrli:shares iso4217:USD

<div align="left" style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; ">   <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>1. Summary of Significant Accounting Policies</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NATURE OF OPERATIONS</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Wolverine World Wide, Inc. is a leading designer, manufacturer and marketer of a broad range of quality casual shoes, performance outdoor footwear, apparel, work shoes and boots, and uniform shoes and boots. The Company’s global portfolio of owned and licensed brands includes: <i>Bates</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>Cat</i><sup style="font-size: 85%; vertical-align: text-top">®</sup> Footwear, <i>Chaco</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>Cushe</i><sup style="font-size: 85%; vertical-align: text-top">TM</sup>, <i>Harley-Davidson</i><sup style="font-size: 85%; vertical-align: text-top">®</sup> Footwear, <i>Hush Puppies</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>HyTest</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>Merrell</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>Patagonia</i><sup style="font-size: 85%; vertical-align: text-top">®</sup> Footwear, <i>Sebago</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>, <i>Soft Style</i><sup style="font-size: 85%; vertical-align: text-top">®</sup> and <i>Wolverine</i><sup style="font-size: 85%; vertical-align: text-top">®</sup>. Licensing programs are utilized to extend the global reach of the Company’s owned brands. The Company also operates a retail division to market its own brands as well as branded footwear and apparel from other manufacturers; a leathers division that markets <i>Wolverine Performance Leathers</i>™; and a pigskin procurement operation. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>BASIS OF PRESENTATION</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for a complete presentation of the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included in the accompanying financial statements. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>REVENUE RECOGNITION</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Revenue is recognized on the sale of products manufactured or sourced by the Company when the related goods have been shipped, legal title has passed to the customer and collectability is reasonably assured. Revenue generated through programs with licensees and distributors involving products bearing the Company’s trademarks is recognized as earned according to stated contractual terms upon either the purchase or shipment of branded products by licensees and distributors. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company records provisions against gross revenue for estimated stock returns and cash discounts in the period when the related revenue is recorded. These estimates are based on factors that include, but are not limited to, historical stock returns, historical discounts taken and analysis of credit memorandum activity. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>COST OF GOODS SOLD</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Cost of goods sold for the Company’s operations include the actual product costs, including inbound freight charges, purchasing, sourcing, inspection and receiving costs. Warehousing costs are included in selling, general and administrative expenses. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>SEASONALITY</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s business is subject to seasonal influences and the Company’s fiscal year has twelve weeks in each of the first three quarters and sixteen or seventeen weeks in the fourth quarter. Both factors can cause significant differences in revenue, earnings and cash flows from quarter to quarter; however, the differences have followed a consistent pattern in previous years. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>RECLASSIFICATIONS</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain prior period amounts on the consolidated condensed financial statements have been reclassified to conform to current period presentation. These reclassifications did not affect net earnings. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>2. Earnings Per Share</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth the computation of basic and diluted earnings per share: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Numerator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Net earnings </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>17,222</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,906</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>44,681</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">18,401</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Adjustment for earnings allocated to nonvested restricted common stock </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(273</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(111</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(670</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(321</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net earnings used in calculating basic earnings per share </div></td> <td> </td> <td> </td> <td align="right"><b>16,949</b></td> <td> </td> <td> </td> <td> </td> <td align="right">7,795</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>44,011</b></td> <td> </td> <td> </td> <td> </td> <td align="right">18,080</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Adjustment for earnings reallocated to nonvested restricted common stock </div></td> <td> </td> <td> </td> <td align="right"><b>6</b></td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>15</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net earnings used in calculating diluted earnings per share </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>16,955</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,795</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>44,026</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">18,081</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Denominator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Weighted average shares outstanding </div></td> <td> </td> <td> </td> <td align="right"><b>49,160,001</b></td> <td> </td> <td> </td> <td> </td> <td align="right">49,087,819</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>49,376,607</b></td> <td> </td> <td> </td> <td> </td> <td align="right">49,001,869</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Adjustment for nonvested restricted common stock </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1,248,223</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(689,497</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1,170,522</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(854,248</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Shares used in calculating basic earnings per share </div></td> <td> </td> <td> </td> <td align="right"><b>47,911,778</b></td> <td> </td> <td> </td> <td> </td> <td align="right">48,398,322</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>48,206,085</b></td> <td> </td> <td> </td> <td> </td> <td align="right">48,147,621</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Effect of dilutive stock options </div></td> <td> </td> <td> </td> <td align="right"><b>1,056,525</b></td> <td> </td> <td> </td> <td> </td> <td align="right">559,669</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>1,043,953</b></td> <td> </td> <td> </td> <td> </td> <td align="right">523,434</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Shares used in calculating diluted earnings per share </div></td> <td> </td> <td> </td> <td align="right"><b>48,968,303</b></td> <td> </td> <td> </td> <td> </td> <td align="right">48,957,991</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>49,250,038</b></td> <td> </td> <td> </td> <td> </td> <td align="right">48,671,055</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Net earnings per share: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:45px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.35</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.16</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.91</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.38</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:45px; text-indent:-15px">Diluted </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.35</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.16</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.89</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.37</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Options to purchase 851,533 and 989,145 shares of common stock for the 12 and 24 weeks ended June 19, 2010, respectively, and 3,564,712 and 3,425,423 shares for the 12 and 24 weeks ended June 20, 2009, respectively have not been included in the denominator for the computation of diluted earnings per share because the related exercise prices of these shares were greater than the average market price for the quarters then-ended and, therefore, they were anti-dilutive. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company calculates earnings per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, <i>Earnings Per Share </i>(“ASC 260”). ASC 260 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the earnings allocation in computing earnings per share under the two-class method. Under the guidance in ASC 260, the Company’s unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and must be included in the computation of earnings per share pursuant to the two-class method. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>3. Goodwill and Other Non-Amortizable Intangibles</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The changes in the carrying amount of goodwill and other non-amortizable intangibles are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="58%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Goodwill</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Trademarks</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at June 20, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">39,785</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15,970</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">55,755</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Intangibles acquired </div></td> <td> </td> <td> </td> <td align="right">369</td> <td> </td> <td> </td> <td> </td> <td align="right">256</td> <td> </td> <td> </td> <td> </td> <td align="right">625</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation effects </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(182</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(182</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at January 2, 2010 </div></td> <td> </td> <td> </td> <td align="right">39,972</td> <td> </td> <td> </td> <td> </td> <td align="right">16,226</td> <td> </td> <td> </td> <td> </td> <td align="right">56,198</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Intangibles acquired </div></td> <td> </td> <td> </td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>87</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>87</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation effects </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1,908</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(212</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(2,120</b></td> <td nowrap="nowrap"><b>)</b></td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at June 19, 2010 </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>38,064</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right"><b>16,101</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right"><b>54,165</b></td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>4. Comprehensive Income (Loss)</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Comprehensive income (loss) represents net earnings and any revenue, expenses, gains and losses that, under accounting principles generally accepted in the United States, are excluded from net earnings and recognized directly as a component of stockholders’ equity. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The ending accumulated other comprehensive income (loss) is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="58%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">January 2,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4,532</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">14,477</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">9,971</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of foreign exchange contracts, net of taxes </div></td> <td> </td> <td> </td> <td align="right"><b>1,816</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,546</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,642</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Pension adjustments, net of taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(53,737</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(53,737</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(45,885</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive income (loss) </div></td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(47,389</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(42,806</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(37,556</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The reconciliation from net earnings to comprehensive income is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net earnings </div></td> <td> </td> <td align="left">$</td> <td align="right"><b>17,222</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,906</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>44,681</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">18,401</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Other comprehensive income (loss): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(2,042</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">14,155</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(9,945</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">10,843</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Change in fair value of foreign exchange contracts, net of taxes </div></td> <td> </td> <td> </td> <td align="right"><b>3,227</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,102</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right"><b>5,362</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,565</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income </div></td> <td> </td> <td align="left">$</td> <td align="right"><b>18,407</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15,959</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>40,098</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">23,679</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>5. Business Segments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has one reportable segment that is engaged in designing, manufacturing, sourcing, marketing, licensing, and distributing to the retail sector branded footwear, apparel and accessories. Revenue earned from the operations of this segment is derived from the sale of branded footwear, apparel and accessories to external customers as well as royalty income from the licensing of the Company’s trademarks and brand names to third party licensees and distributors. The operating segments aggregated into the branded footwear, apparel and licensing segment manufacture, source, market and distribute products in a similar manner. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The other business units in the following tables consist of the Company’s retail, leather and pigskin procurement operations. These other operations do not collectively form a reportable segment because their respective operations are dissimilar and they do not meet the applicable quantitative requirements. At June 19, 2010, the Company operated 79 retail stores in North America, 5 retail stores in the United Kingdom and 28 consumer-direct internet sites that sell Company-branded products, as well as footwear, apparel and accessory products under brands that are owned by unaffiliated companies. The other business units distribute products through retail and wholesale channels. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company measures segment profits as earnings before income taxes. The accounting policies used to determine profitability and total assets of the branded footwear, apparel and licensing segment and other business units are the same as those disclosed in Note 1. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Business segment information is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended June 19, 2010</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Branded</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Footwear,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Apparel and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Other</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Licensing</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Business Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Corporate</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>225,147</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>33,052</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>258,199</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment revenue </div></td> <td> </td> <td> </td> <td align="right"><b>9,149</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>777</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>9,926</b></td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings (loss) before income taxes </div></td> <td> </td> <td> </td> <td align="right"><b>31,330</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>2,237</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(9,308</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right"><b>24,259</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td> </td> <td align="right"><b>520,097</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>43,393</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>121,023</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>684,513</b></td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended June 19, 2010</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Branded</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Footwear,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Apparel and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Other</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Licensing</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Business Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Corporate</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>486,785</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>56,311</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>543,096</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment revenue </div></td> <td> </td> <td> </td> <td align="right"><b>16,568</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>1,506</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>18,074</b></td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings (loss) before income taxes </div></td> <td> </td> <td> </td> <td align="right"><b>79,246</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>845</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(17,159</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right"><b>62,932</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td> </td> <td align="right"><b>520,097</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>43,393</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>121,023</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>684,513</b></td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000">12 Weeks Ended June 20, 2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Branded</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Footwear,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Apparel and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Other</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Licensing</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Business Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Corporate</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">218,139</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">28,299</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,438</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment revenue </div></td> <td> </td> <td> </td> <td align="right">10,557</td> <td> </td> <td> </td> <td> </td> <td align="right">332</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">10,889</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings (loss) before income taxes </div></td> <td> </td> <td> </td> <td align="right">19,166</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,660</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,829</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">11,677</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td> </td> <td align="right">516,354</td> <td> </td> <td> </td> <td> </td> <td align="right">45,228</td> <td> </td> <td> </td> <td> </td> <td align="right">106,180</td> <td> </td> <td> </td> <td> </td> <td align="right">667,762</td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000">24 Weeks Ended June 20, 2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Branded</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Footwear,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Apparel and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Other</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Licensing</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Business Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Corporate</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">453,223</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">48,539</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">501,762</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment revenue </div></td> <td> </td> <td> </td> <td align="right">21,919</td> <td> </td> <td> </td> <td> </td> <td align="right">1,468</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">23,387</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings (loss) before income taxes </div></td> <td> </td> <td> </td> <td align="right">48,567</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,498</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,888</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">27,181</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td> </td> <td align="right">516,354</td> <td> </td> <td> </td> <td> </td> <td align="right">45,228</td> <td> </td> <td> </td> <td> </td> <td align="right">106,180</td> <td> </td> <td> </td> <td> </td> <td align="right">667,762</td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>6. Financial Instruments and Risk Management</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company follows FASB ASC Topic 820, <i>Fair Value Measurements and Disclosures </i>(“ASC 820”), which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="3%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="85%"> </td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top">Level 1: </td> <td> </td> <td align="left" valign="top"> <div align="justify">Fair value is measured using quoted prices (unadjusted) in active markets for identical assets and liabilities. </div></td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top">Level 2: </td> <td> </td> <td align="left" valign="top"> <div align="justify">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. </div></td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top">Level 3: </td> <td> </td> <td align="left" valign="top"> <div align="justify">Fair value is measured using valuation techniques in which one or more significant inputs are unobservable. </div></td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">As of June 19, 2010 and June 20, 2009, an asset of $1,988 and a liability of $3,651, respectively, have been recognized for the fair value of the Company’s foreign exchange contracts. In accordance with ASC 820, these liabilities and assets fall within Level 2 of the fair value hierarchy. The fair values for these financial instruments are determined using prices for recently-traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs. The Company did not have any additional assets or liabilities that were measured at fair value on a recurring basis at June 19, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, borrowings under the Company’s revolving credit agreement and long-term debt. The carrying amounts of the Company’s financial instruments approximate their fair value. As of June 19, 2010 the carrying value and fair value of the Company’s fixed rate long-term debt was $984 and $1,010, respectively. As of June 20, 2009 the carrying value and fair value of the Company’s fixed rate long-term debt was $1,643 and $1,680, respectively. Fair value was determined using discounted cash flow analyses and current interest rates for similar instruments; therefore, the debt instruments fall within Level 2 of the fair value hierarchy. The Company does not hold or issue financial instruments for trading purposes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company entered into a new credit agreement with a bank syndicate during the second quarter of 2010 which provides the Company with a revolving credit facility, including a swing-line facility and letter of credit facility, in an initial aggregate amount of up to $150.0 million. This amount is subject to increase up to a maximum aggregate amount of $225.0 million under certain circumstances. The revolving credit facility is used to support working capital requirements and other business needs. There were no amounts outstanding under the revolving credit facility at June 19, 2010 compared to $34.8 million outstanding at June 20, 2009 under the former revolving credit agreement. The Company considers balances drawn on the revolving credit facility, if any, to be short-term in nature. The Company was in compliance with all debt covenant requirements at June 19, 2010 and June 20, 2009. Proceeds from the new credit facility, along with cash flows from operations, are expected to be sufficient to meet working capital needs for the foreseeable future. Any excess cash flows from operating activities are expected to be used to purchase property, plant and equipment, pay down debt, fund internal and external growth initiatives, pay dividends or repurchase the Company’s common stock. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company follows FASB ASC Topic 815, <i>Derivatives and Hedging, </i>which is intended to improve transparency in financial reporting and requires that all derivative instruments be recorded on the consolidated condensed balance sheets at fair value by establishing criteria for designation and effectiveness of hedging relationships. The Company utilizes foreign currency forward exchange contracts to manage the volatility associated with U.S. dollar inventory purchases made by non-U.S. wholesale operations in the normal course of business. At June 19, 2010 and June 20, 2009, foreign exchange contracts with a notional value of $91,900 and $72,315, respectively, were outstanding to purchase U.S. dollars with maturities ranging up to 308 days. These contracts have been designated as cash flow hedges. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The fair value of the foreign currency forward exchange contracts represents the estimated receipts or payments necessary to terminate the contracts. Hedge effectiveness is evaluated by the hypothetical derivative method. Any hedge ineffectiveness is reported within the cost of goods sold caption of the consolidated condensed statements of operations. Hedge ineffectiveness was not material to the consolidated condensed financial statements for the 12 and 24 weeks ended June 19, 2010 and June 20, 2009. If, in the future, the foreign exchange contracts are determined to be ineffective hedges or terminated before their contractual termination dates, the Company would be required to reclassify into earnings all or a portion of the unrealized amounts related to the cash flow hedges that are currently included in accumulated other comprehensive income (loss) within stockholders’ equity. For the 12 weeks ended June 19, 2010 and June 20, 2009, the Company recognized net gains of $676 and $333, respectively, in accumulated other comprehensive income (loss) related to the effective portion of its foreign exchange contracts. For the 12 weeks ended June 19, 2010 and June 20, 2009, the Company reclassified a gain of $991 and a loss of $2,742, respectively, from accumulated other comprehensive income (loss) into cost of goods sold related to the effective portion of its foreign exchange contracts designated and qualifying as cash flow hedges. For the 24 weeks ended June 19, 2010 and June 20, 2009, the Company recognized a net loss of $203 and a net gain of $3,167, respectively, in accumulated other comprehensive income (loss) related to the effective portion of its foreign exchange contracts. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">For the 24 weeks ended June 19, 2010 and June 20, 2009, the Company reclassified a gain of $2,408 and a loss of $3,986, respectively, from accumulated other comprehensive income (loss) into cost of goods sold related to the effective portion of its foreign exchange contracts designated and qualifying as cash flow hedges. </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>7. Stock-Based Compensation</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of FASB ASC Topic 718, <i>Compensation-Stock Compensation </i>(“ASC 718”). The Company recognized compensation costs of $2,555 and $5,110, respectively, and related income tax benefits of $791 and $1,557, respectively, for grants under its stock-based compensation plans in the consolidated condensed statement of operations for the 12 and 24 weeks ended June 19, 2010. For the 12 and 24 weeks ended June 20, 2009, the Company recognized compensation costs of $2,486 and $4,033, respectively, and related income tax benefits of $553 and $918, respectively, for grants under its stock-based compensation plans. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Stock-based compensation expense recognized in the consolidated condensed statements of operations for the 12 and 24 weeks ended June 19, 2010 and June 20, 2009 is based on awards ultimately expected to vest and, therefore, has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company estimated the fair value of employee stock options on the date of grant using the Black-Scholes model. The estimated weighted-average fair value for each option granted during the 24 weeks ended June 19, 2010 and June 20, 2009 was $6.94 and $4.36 per share, respectively, based on the following weighted-average assumptions: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected market price volatility <sup style="font-size: 85%; vertical-align: text-top">(1)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>37.2</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">36.4</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>37.9</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">34.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate <sup style="font-size: 85%; vertical-align: text-top">(2)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>2.1</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.6</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>1.9</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.6</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Dividend yield <sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>1.7</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>1.9</b></td> <td nowrap="nowrap"><b>%</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Expected term <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td colspan="2" nowrap="nowrap" align="right"><b>4 years</b></td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="right">4 years</td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="right"><b>4 years</b></td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="right">4 years</td> <td> </td> </tr>  </table> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr style="font-size: 6pt"> <td width="3%"> </td> <td width="1%"> </td> <td width="96"> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td> <div style="text-align: justify">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 four years. </div></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td> <td> </td> <td> <div style="text-align: justify">Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. </div></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td> <td> </td> <td> <div style="text-align: justify">Represents the Company’s cash dividend yield for the expected term. </div></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td> <td> </td> <td> <div style="text-align: justify">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. </div></td> </tr> </table> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company issued 154,658 and 1,017,829 shares of common stock in connection with the exercise of stock options and new restricted stock grants during the 12 and 24 weeks ended June 19, 2010, respectively. During the 12 and 24 weeks ended June 19, 2010, the Company cancelled 17,328 and 21,081 shares, respectively, of common stock as a result of forfeiture of restricted stock awards. The Company issued 120,200 and 816,069 shares of common stock in connection with the exercise of stock options and new restricted stock grants during the 12 and 24 weeks ended June 20, 2009, respectively. During the 12 and 24 weeks ended June 20, 2009, the Company cancelled 7,850 and 11,384 shares, respectively, of common stock as a result of forfeiture of restricted stock awards. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>8. Pension Expense</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">A summary of net pension and Supplemental Executive Retirement Plan costs recognized by the Company is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost pertaining to benefits earned during the period </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,322</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,077</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>2,644</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,155</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost on projected benefit obligations </div></td> <td> </td> <td> </td> <td align="right"><b>2,936</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,839</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>5,871</b></td> <td> </td> <td> </td> <td> </td> <td align="right">5,677</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on pension assets </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(2,877</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,518</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(5,754</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,036</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Net amortization loss </div></td> <td> </td> <td> </td> <td align="right"><b>2,378</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,214</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>4,756</b></td> <td> </td> <td> </td> <td> </td> <td align="right">4,428</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net pension expense </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>3,759</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,612</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>7,517</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,224</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>9. Litigation and Contingencies</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is involved in environmental claims and other legal actions arising in the normal course of business. The environmental claims include sites where the U.S. Environmental Protection Agency has notified the Company that it is a potentially responsible party with respect to environmental remediation. However, after taking into consideration legal counsel’s evaluation of all actions and claims against the Company, management is currently of the opinion that their outcome will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is involved in routine litigation incidental to its business and is a party to legal actions and claims, including, but not limited to, those related to employment and intellectual property. Some of the legal proceedings include claims for compensatory as well as punitive damages. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the meritorious legal defenses available to the Company, liabilities that have been recorded with respect to such actions and claims, and applicable insurance coverage, the Company’s management currently believes that these items will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to certain of the Company’s lease agreements, the Company has provided financial guarantees to third parties in the form of indemnification provisions. These provisions require the Company to indemnify and reimburse the third parties for certain costs incurred by such third parties in connection with these lease agreements, including but not limited to adverse judgments in lawsuits, taxes and operating costs. The terms of the guarantees are equal to the terms of the related lease agreements. The Company is not able to calculate the maximum potential amount of future payments it could be required to make under these guarantees, as the potential payment is dependent upon the occurrence of future unknown events. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has future minimum royalty and other obligations due under the terms of certain licenses held by the Company. These minimum future obligations are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2012</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2013</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2014</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Thereafter</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Minimum royalties </div></td> <td> </td> <td align="left">$</td> <td align="right">1,544</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,772</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">970</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">999</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,029</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,060</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Minimum advertising </div></td> <td> </td> <td> </td> <td align="right">1,837</td> <td> </td> <td> </td> <td> </td> <td align="right">1,941</td> <td> </td> <td> </td> <td> </td> <td align="right">1,999</td> <td> </td> <td> </td> <td> </td> <td align="right">2,059</td> <td> </td> <td> </td> <td> </td> <td align="right">2,121</td> <td> </td> <td> </td> <td> </td> <td align="right">4,434</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Minimum royalties are based on both fixed obligations and assumptions related to the consumer price index. Royalty payments in excess of minimum requirements are based upon future sales levels and are not included in the above table. In accordance with these agreements, the Company incurred royalty expense of $728 and $1,467, respectively for the 12 and 24 weeks ended June 19, 2010. For the 12 and 24 weeks ended June 20, 2009, the Company incurred royalty expense of $756 and $1,345, respectively. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The terms of certain license agreements also require the Company to make advertising expenditures based on the level of sales. In accordance with these agreements, the Company incurred advertising expense of $669 and $1,281, respectively, for the 12 and 24 weeks ended June 19, 2010. For the 12 and 24 weeks ended June 20, 2009, the Company incurred advertising expense of $492 and $1,049, respectively. </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>10. Restructuring and Other Transition Costs</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On January 7, 2009 the Board of Directors of the Company approved a strategic restructuring plan designed to create significant operating efficiencies, improve its supply chain and create a stronger global brand platform. On October 7, 2009, the Company announced that its restructuring plan was expanded to include the consolidation of two owned domestic manufacturing facilities into one and to finalize realignment in certain of the Company’s product creation organizations. The strategic restructuring plan and all actions, except for certain cash payments, to be taken under the plan were completed as of June 19, 2010. The Company incurred restructuring and other transition costs of $2,736 ($1,943 on an after-tax basis), or $0.04 per diluted share, and $4,234 ($3,006 on an after-tax basis), or $0.06 per diluted share, for the 12 and 24 weeks ended June 19, 2010. For the 12 and 24 weeks ended June 20, 2009, the Company incurred restructuring and other transition costs of $7,919 ($5,361 on an after-tax basis), or $0.11 per diluted share and $22,377 ($15,149 on an after-tax basis), or $0.31 per diluted share, respectively. In fiscal 2009 the Company incurred restructuring and other transition costs of approximately $35,600, or $0.53 per diluted share. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The following is a summary of the restructuring and other transition costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>24 Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 19,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 20,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Restructuring </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,823</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,159</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>2,239</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">19,204</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Other transition costs </div></td> <td> </td> <td> </td> <td align="right"><b>913</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,760</td> <td> </td> <td> </td> <td> </td> <td align="right"><b>1,995</b></td> <td> </td> <td> </td> <td> </td> <td align="right">3,173</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total restructuring and other transition costs </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>2,736</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,919</td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4,234</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">22,377</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Restructuring</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company incurred the following restructuring charges: $1,823 ($1,294 on an after-tax basis), or $0.03 per diluted share, for the 12 weeks ended June 19, 2010; $2,239 ($1,590 on an after-tax basis), or $0.03 per diluted share, for the 24 weeks ended June 19, 2010; $5,159 ($3,493 on an after-tax basis), or $0.07 per diluted share, for the 12 weeks ended June 20, 2009; and $19,204 ($13,001 on an after-tax basis), or $0.27 per diluted share, for the 24 weeks ended June 20, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The following is a summary of the activity with respect to a liability established by the Company in connection with the restructuring plan, by category of costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="30%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Non-cash</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Severance and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">charges related</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">employee</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">to property and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Facility exit</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Other related</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">related</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">equipment</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">costs</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">restructuring</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at June 20, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">2,384</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">666</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">65</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,115</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Charges incurred </div></td> <td> </td> <td> </td> <td align="right">4,420</td> <td> </td> <td> </td> <td> </td> <td align="right">1,768</td> <td> </td> <td> </td> <td> </td> <td align="right">1,784</td> <td> </td> <td> </td> <td> </td> <td align="right">1,907</td> <td> </td> <td> </td> <td> </td> <td align="right">9,879</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts paid or utilized </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,938</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,768</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(965</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,397</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,068</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at January 2, 2010 </div></td> <td> </td> <td align="left">$</td> <td align="right">3,866</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,485</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">575</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,926</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Charges incurred </div></td> <td> </td> <td> </td> <td align="right"><b>571</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>715</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>803</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>150</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>2,239</b></td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts paid or utilized </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(3,113</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(715</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(398</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(599</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(4,825</b></td> <td nowrap="nowrap"><b>)</b></td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at June 19, 2010 </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,324</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>—</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,890</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>126</b></td> <td> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>3,340</b></td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Other Transition Costs</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Incremental costs incurred related to the restructuring plan that do not qualify as restructuring costs under the provisions of FASB ASC Topic 420, <i>Exit or Disposal Cost Obligations</i>, have been included in the Company’s consolidated condensed statements of operations on the line titled “Restructuring and other transition costs”. These primarily include costs related to closure of facilities, new employee training and transition to outsourced services. All costs included in this caption were solely related to the transition and implementation of the restructuring plan and do not include ongoing business operating costs. Other transition costs were $913 ($648 on an after-tax basis), and $1,995 ($1,416 on an after-tax basis) for the 12 and 24 weeks ended June 19, 2010, respectively, and $2,760 ($1,869 on an after-tax basis) and $3,173 ($2,148 on an after-tax basis) for the 12 and 24 weeks ended June 20, 2009, respectively. </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>11. Business Acquisitions</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounted for the following acquisitions under the provisions of FASB ASC Topic 805, <i>Business Combinations</i>. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On January 8, 2009, the Company announced the acquisition of the <i>Cushe</i><sup style="font-size: 85%; vertical-align: text-top">TM</sup> footwear brand. The purchase price consisted of $1,477 cash, a $1,477 note payable and contingent consideration of $839. The Company acquired assets valued at $273 (consisting primarily of property, plant and equipment and inventory) and assumed operating liabilities valued at $290, resulting in goodwill and intangibles of $3,810. Amounts recorded relating to the acquisition are subject to changes in foreign currency exchange rates. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On January 22, 2009, the Company acquired the <i>Chaco</i><sup style="font-size: 85%; vertical-align: text-top">®</sup> footwear brand and certain assets valued at $3,912, consisting primarily of accounts receivable and inventory, for cash of $6,910 and assumed operating liabilities valued at $4,662. The purchase resulted in goodwill and intangibles recorded of $7,660. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Using the purchase method of accounting, the purchase price in each of these acquisitions is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the effective date of the acquisition. The excess purchase price over the assets and liabilities is recorded as goodwill. The purchase price allocation for each acquisition was finalized during the third quarter of 2009 and a final determination of all purchase accounting adjustments was made upon finalization of asset valuations and acquisition costs. Pro forma results of operations have not been presented because the effects of these acquisitions, individually and in the aggregate, were not material to the Company’s consolidated results of operations. Both of the brands have been consolidated into the Company’s results of operations since their respective acquisition dates. </div> </div>

<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>12. New Accounting Standards</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">In April 2009, the FASB issued FASB ASC Topic 825, <i>Financial Instruments </i>and ASC Topic 270, <i>Interim Reporting </i>(“ASC 825” and “ASC 270”), to require, on an interim basis, disclosures about the fair value of financial instruments for public entities. ASC 825 and ASC 270 are expected to improve the transparency and quality of information provided to financial statement users by increasing the frequency of disclosures about fair value for interim periods as well as annual periods. ASC 825 and ASC 270 are effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. The Company has disclosed the information required by ASC 825 and ASC 270 on an interim basis, and the adoption did not affect the Company’s consolidated financial position, results of operations or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">In May 2009, the FASB issued FASB ASC Topic 855, <i>Subsequent Events </i>(“ASC 855”). The objective of this statement is to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. ASC 855, among other things, sets forth the period after the balance sheet date during which management should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements and the disclosures an entity should make about events or transactions that occurred after the balance sheet date. In accordance with this statement, an entity should apply the requirements to interim or annual financial periods ending after June 15, 2009. The Company adopted ASC 855 in the second quarter of 2009 and the adoption did not affect the Company’s consolidated financial position, results of operations or cash flows. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">In June 2009, the FASB issued FASB ASC Topic 105, <i>Generally Accepted Accounting Principles </i>(“ASC 105”). ASC 105 establishes the FASB Accounting Standards Codification<sup style="font-size: 85%; vertical-align: text-top">TM</sup> (“Codification”) as the source of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. ASC 105 and the Codification were effective for financial statements issued for interim and annual periods ending after September 15, 2009 (fiscal year ended January 2, 2010 for the Company). The Company adopted this ASC and included the required disclosures in its financial statements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">In January 2010, the FASB issued Accounting Standard Update (“ASU”) No. 2010-06, <i>Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements </i>(“ASU No. 2010-06”). ASU No. 2010-06 amends existing disclosure requirements under ASC 820 by adding required disclosures about items transferring into and out of Levels 1 and 2 in the fair value hierarchy; adding separate disclosures about purchases, sales, issuances and settlements relative to Level 3 measurements; and clarifying the existing fair value disclosures about the level of disaggregation. ASU No. 2010-06 is effective for financial statements issued for interim and annual periods beginning after December 15, 2009 (first quarter 2010 for the Company), except for the requirement to provide Level 3 activity, which is effective for fiscal years beginning after December 15, 2010 (first quarter 2011 for the Company). The Company adopted the applicable disclosure requirements of this ASU in the first quarter of 2010, and the adoption did not affect the Company’s consolidated financial position, results of operations or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">In February 2010, the FASB issued ASU No. 2010-09, <i>Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements</i>. This ASU, which was effective immediately, removed the requirement for an SEC filer to disclose a date through which subsequent events have been evaluated. The Company adopted this standard in the first quarter of 2010 and the adoption did not affect the Company’s consolidated financial position, results of operations or cash flows. </div> </div>

false --01-01 Q2 2010 2010-06-19 10-Q 0000110471 63686651 Yes Large Accelerated Filer WOLVERINE WORLD WIDE INC /DE/ No Yes

30826000

42262000

43038000

182881000

163755000

183221000

8923000

18887000

10530000

18558000

20751000

15907000

224350000

229196000

235348000

-37556000

-42806000

-47389000

69037000

81021000

94316000

704000

795000

-9322000

8327000

14021000

13946000

14217000

667762000

707933000

684513000

468966000

503538000

483915000

89502000

79171000

160439000

110120000

-10331000

-50319000

37247000

35405000

36323000

0.22

0.11

0.22

0.11

160000000

62427269

62763924

63678277

62427000

62764000

63678000

303441000

153380000

320420000

154093000

6108000

5870000

5558000

2000

-649000

10780000

12475000

9941000

35094000

35690000

6571000

7059000

0.38

0.16

0.91

0.35

0.37

0.16

0.89

0.35

1751000

-4197000

873000

194983000

92040000

221270000

103681000

27181000

11677000

62932000

24259000

8780000

3771000

18251000

7037000

-18370000

1276000

9052000

21639000

-16096000

15693000

631000

2101000

15574000

-20799000

169516000

140124000

155363000

183661000

158065000

170773000

14145000

17941000

15410000

667762000

707933000

684513000

151528000

132851000

117857000

34800000

549000

538000

492000

1094000

1077000

492000

-40074000

-50463000

-13954000

-5992000

41946000

10333000

18401000

7906000

44681000

17222000

-620000

-639000

-250000

-391000

27801000

12316000

63182000

24650000

52713000

42443000

42506000

27796000

3746000

3865000

1999000

1968000

2019000

-412000

-520000

-165000

-395000

1063000

890000

6195000

48057000

11662000

6912000

10729000

10799000

7954000

4937000

5102000

2044000

64582000

84134000

80476000

7224000

7517000

12473000

8804000

9860000

1553000

8057000

302348000

303148000

305903000

77998000

73952000

70555000

3000

537000

3115000

5926000

3340000

673713000

706439000

740472000

501762000

246438000

543096000

258199000

148143000

72823000

155260000

76720000

4033000

5110000

442451000

482033000

478111000

13163074

13170471

14822207

325170000

325385000

372966000

55755000 56198000 54165000 208000 119000 85000 -4000 -24700000 3338000 1018000 1406000 425000 19039000 6901000 2828000 2311000 22378000 4234000 120798000 130443000 130043000