SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2011

Components of accounts receivable as of December 31, 2011 and January 1, 2011 are as follows:

(dollars in thousands)	December 31, 2011		January 1, 2011
Trade receivables, net	$	138,070	$	107,804
Royalties receivable		9,224		9,531
Tenant allowances and other receivables		10,460		4,118
Total	$	157,754	$	121,453

The Company's intangible assets were as follows:

		Fiscal 2011						Fiscal 2010
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount

Carter's goodwill (1)	Indefinite	$	136,570	$	--	$	136,570	$	136,570	$	--	$	136,570
Bonnie Togs goodwill (2)	Indefinite	$	52,109	$	--	$	52,109	$	--	$	--	$	--
Carter's tradename	Indefinite	$	220,233	$	--	$	220,233	$	220,233	$	--	$	220,233
OshKosh tradename	Indefinite	$	85,500	$	--	$	85,500	$	85,500	$	--	$	85,500
Bonnie Togs tradename	2 years	$	592	$	150	$	442	$	--	$	--	$	--
Non-compete agreements	4 years	$	295	$	37	$	258	$	--	$	--	$	--

(1)	$45.9 million of which relates to the Carter's wholesale segment, $82.0 million of which relates to the Carter's retail segment, and $8.6 million of which relates to the international segment. Please see Note 15, "Segment Information" for more information.

(2)	Relates to the international segment.

The following is a reconciliation of Bonnie Togs intangible assets:

(dollars in thousands)	Bonnie Togs Goodwill			Bonnie Togs Tradename			Non-compete agreements

Gross Balance at June 30, 2011	$	54,480		$	623		$	311
Purchase accounting adjustments		476			--			--
Foreign currency exchange adjustments		(2,847	)		(31	)		(16	)
Gross Balance at December 31, 2011	$	52,109		$	592		$	295

Accumulated other comprehensive (loss) income is summarized as follows:

(dollars in thousands)	Pension / post-retirement liability adjustment			Cumulative Translation Adjustment			Derivative hedging adjustment			Accumulated other comprehensive income

Balance at January 3, 2009	$	(5,652	)	$	--		$	(1,666	)	$	(7,318	)
Current year change		2,440			--			812			3,252
Balance at January 2, 2010		(3,212	)		--			(854	)		(4,066	)
Current year change		1,322			--			854			2,176
Balance at January 1, 2011		(1,890	)		--			--			(1,890	)
Current year change		(6,268	)		(3,124	)		--			(9,392	)
Balance at December 31, 2011	$	(8,158	)	$	(3,124	)	$	--		$	(11,282	)

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:

	For the fiscal years ended
	December 31, 2011			January 1, 2011			January 2, 2010

Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding		57,513,748			58,135,868			56,653,460
Dilutive effect of unvested restricted stock		129,262			117,708			119,886
Dilutive effect of stock options		571,907			762,473			1,574,378
Diluted number of common and common equivalent shares outstanding		58,214,917			59,016,049			58,347,724

Basic net income per common share:
Net income	$	114,016,000		$	146,472,000		$	115,640,000
Income allocated to participating securities		(1,210,944	)		(1,202,948	)		(910,980	)
Net income available to common shareholders	$	112,805,056		$	145,269,052		$	114,729,020

Basic net income per common share	$	1.96		$	2.50		$	2.03

Diluted net income per common share:
Net income	$	114,016,000		$	146,472,000		$	115,640,000
Income allocated to participating securities		(1,199,147	)		(1,187,501	)		(886,537	)
Net income available to common shareholders	$	112,816,853		$	145,284,499		$	114,753,463

Diluted net income per common share	$	1.94		$	2.46		$	1.97