Abstract: A shoe having an upper, an outsole, a midsole, and an insole. An insulating sock-type liner is fitted within the shoe, having a suspended connection to an upper portion of the shoe and a cemented connection to each of the midsole and insole. The insulating liner is capable of combination with a sock-type waterproofing liner that fits within the insulating liner. The insulating liner has a bottom extension relative to the waterproofing liner for securement to the midsole under the insole. Also, the insulating layer has a front cut-out portion that allows flexing of the shoe as well as a person's foot.