GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheets

	Parent		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	229,056	$	11,817	$	58,485	$	—		$	299,358
Accounts receivable, net	—		176,825		18,315		7,331		—			202,471
Intercompany receivable	—		55,902		74,681		14,601		(145,184		)	—
Finished goods inventories	—		278,696		174,542		60,153		(25,800		)	487,591
Prepaid expenses and other current assets	—		11,402		16,028		4,750		—			32,180
Deferred income taxes	—		18,476		15,440		1,570		—			35,486
Total current assets	—		770,357		310,823		146,890		(170,984		)	1,057,086
Property, plant, and equipment, net	—		155,187		194,691		35,996		—			385,874
Goodwill	—		136,570		—		39,439		—			176,009
Tradenames and other intangibles, net	—		223,428		85,500		—		—			308,928
Other assets	—		17,771		605		324		—			18,700
Intercompany long-term receivable	—		—		428,436		—		(428,436		)	—
Intercompany long-term note receivable	—		100,000		—		—		(100,000		)	—
Investment in subsidiaries	788,124		753,753		145,076		—		(1,686,953		)	—
Total assets	$	788,124	$	2,157,066	$	1,165,131	$	222,649	$	(2,386,373	)	$	1,946,597
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	—	$	97,103	$	41,947	$	19,382	$	—		$	158,432
Intercompany payables	—		85,894		55,257		4,033		(145,184		)	—
Other current liabilities	—		16,473		90,718		11,986		—			119,177
Total current liabilities	—		199,470		187,922		35,401		(145,184		)	277,609
Long-term debt	—		561,399		—		18,977		—			580,376
Deferred income taxes	—		87,116		43,540		—		—			130,656
Intercompany long-term liability	—		428,436		—		—		(428,436		)	—
Intercompany long-term note payable	—		—		100,000		—		(100,000		)	—
Other long-term liabilities	—		66,721		89,252		13,859		—			169,832
Stockholders' equity	788,124		813,924		744,417		154,412		(1,712,753		)	788,124
Total liabilities and stockholders' equity	$	788,124	$	2,157,066	$	1,165,131	$	222,649	$	(2,386,373	)	$	1,946,597

CARTER’S, INC.

Condensed Consolidating Balance Sheet

As of January 2, 2016

(dollars in thousands)

	Parent		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	325,771	$	14,652	$	40,786	$	—		$	381,209
Accounts receivable, net	—		178,842		23,980		4,748		—			207,570
Intercompany receivable	—		52,676		133,092		3,317		(189,085		)	—
Finished goods inventories	—		271,148		184,618		48,960		(34,792		)	469,934
Prepaid expenses and other current assets	—		17,460		14,261		6,094		—			37,815
Deferred income taxes	—		19,502		13,544		1,034		—			34,080
Total current assets	—		865,399		384,147		104,939		(223,877		)	1,130,608
Property, plant, and equipment, net	—		162,031		180,322		29,351		—			371,704
Goodwill	—		136,570		—		38,304		—			174,874
Tradenames and other intangibles, net	—		225,348		85,500		—		—			310,848
Other assets	—		14,634		665		321		—			15,620
Intercompany long-term receivable	—		—		294,070		—		(294,070		)	—
Intercompany long-term note receivable	—		100,000		—		—		(100,000		)	—
Investment in subsidiaries	875,051		652,598		100,146		—		(1,627,795		)	—
Total assets	$	875,051	$	2,156,580	$	1,044,850	$	172,915	$	(2,245,742	)	$	2,003,654
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	—	$	93,585	$	44,951	$	19,112	$	—		$	157,648
Intercompany payables	—		134,694		51,362		3,029		(189,085		)	—
Other current liabilities	—		12,996		80,908		11,166		—			105,070
Total current liabilities	—		241,275		177,221		33,307		(189,085		)	262,718
Long-term debt	—		560,541		—		18,431		—			578,972
Deferred income taxes	—		84,038		44,800		—		—			128,838
Intercompany long-term liability	—		294,070		—		—		(294,070		)	—
Intercompany long-term note payable	—		—		100,000		—		(100,000		)	—
Other long-term liabilities	—		66,813		79,568		11,694		—			158,075
Stockholders' equity	875,051		909,843		643,261		109,483		(1,662,587		)	875,051
Total liabilities and stockholders' equity	$	875,051	$	2,156,580	$	1,044,850	$	172,915	$	(2,245,742	)	$	2,003,654

Condensed Consolidating Statements of Operations and Comprehensive Income

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,881,919		$	1,762,882		$	300,533		$	(746,150	)	$	3,199,184
Cost of goods sold	—			1,358,209			1,033,403			155,571			(727,148		)	1,820,035
Gross profit	—			523,710			729,479			144,962			(19,002		)	1,379,149
Selling, general, and administrative expenses	—			177,605			753,874			101,494			(37,567		)	995,406
Royalty income	—			(32,728		)	(19,660		)	—			9,573			(42,815		)
Operating income (loss)	—			378,833			(4,735		)	43,468			8,992			426,558
Interest expense	—			26,475			5,435			442			(5,308		)	27,044
Interest income	—			(5,756		)	—			(115		)	5,308			(563		)
(Income) loss in subsidiaries	(258,106		)	4,413			(29,306		)	—			282,999			—
Other (income) expense, net	—			(383		)	482			3,908			—			4,007
Income (loss) before income taxes	258,106			354,084			18,654			39,233			(274,007		)	396,070
Provision for income taxes	—			104,970			23,067			9,927			—			137,964
Net income (loss)	$	258,106		$	249,114		$	(4,413	)	$	29,306		$	(274,007	)	$	258,106

CARTER’S, INC.

Condensed Consolidating Statement of Operations

For the fiscal year ended January 2, 2016

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,813,950		$	1,639,826		$	246,158		$	(686,055	)	$	3,013,879
Cost of goods sold	—			1,286,411			989,284			136,317			(656,157		)	1,755,855
Gross profit	—			527,539			650,542			109,841			(29,898		)	1,258,024
Selling, general, and administrative expenses	—			181,150			679,532			88,257			(39,706		)	909,233
Royalty income	—			(32,978		)	(19,414		)	—			8,326			(44,066		)
Operating income (loss)	—			379,367			(9,576		)	21,584			1,482			392,857
Interest expense	—			26,550			5,331			557			(5,407		)	27,031
Interest income	—			(5,826		)	—			(81		)	5,407			(500		)
(Income) loss in subsidiaries	(237,822		)	19,775			(9,742		)	—			227,789			—
Other (income) expense, net	—			(6		)	(60		)	(1,796		)	—			(1,862		)
Income (loss) before income taxes	237,822			338,874			(5,105		)	22,904			(226,307		)	368,188
Provision for income taxes	—			102,534			20,590			7,242			—			130,366
Net income (loss)	$	237,822		$	236,340		$	(25,695	)	$	15,662		$	(226,307	)	$	237,822

CARTER’S, INC.

Condensed Consolidating Statement of Operations

For the fiscal year ended January 3, 2015

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,770,238		$	1,564,717		$	241,191		$	(682,278	)	$	2,893,868
Cost of goods sold	—			1,271,260			936,260			138,838			(636,930		)	1,709,428
Gross profit	—			498,978			628,457			102,353			(45,348		)	1,184,440
Selling, general, and administrative expenses	—			203,371			646,728			91,521			(51,369		)	890,251
Royalty income	—			(30,741		)	(18,896		)	—			10,481			(39,156		)
Operating income (loss)	—			326,348			625			10,832			(4,460		)	333,345
Interest expense	—			27,651			5,310			343			(5,651		)	27,653
Interest income	—			(5,998		)	—			(56		)	5,651			(403		)
(Income) loss in subsidiaries	(194,670		)	20,226			(15,050		)	—			189,494			—
Other (income) expense, net	—			(235		)	2,263			1,161			—			3,189
Income (loss) before income taxes	194,670			284,704			8,102			9,384			(193,954		)	302,906
Provision for income taxes	—			85,574			19,441			3,221			—			108,236
Net income (loss)	$	194,670		$	199,130		$	(11,339	)	$	6,163		$	(193,954	)	$	194,670

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income (loss)	$	258,106		$	249,114		$	(4,413	)	$	29,306	$	(274,007	)	$	258,106
Post-retirement benefit plans	(335		)	(335		)	(666		)	—		1,001			(335		)
Foreign currency translation adjustments	1,962			1,962			1,962			1,962		(5,886		)	1,962
Comprehensive income (loss)	$	259,733		$	250,741		$	(3,117	)	$	31,268	$	(278,892	)	$	259,733

For the fiscal year ended January 2, 2016

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	237,822		$	236,340		$	(25,695	)	$	15,662		$	(226,307	)	$	237,822
Post-retirement benefit plans	859			859			803			—			(1,662		)	859
Foreign currency translation adjustments	(14,189		)	(14,189		)	(29,574		)	(14,189		)	57,952			(14,189		)
Comprehensive income (loss)	$	224,492		$	223,010		$	(54,466	)	$	1,473		$	(170,017	)	$	224,492

For the fiscal year ended January 3, 2015

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	194,670		$	199,130		$	(11,339	)	$	6,163		$	(193,954	)	$	194,670
Post-retirement benefit plans	(5,110		)	(5,110		)	(4,963		)	—			10,073			(5,110		)
Foreign currency translation adjustments	(7,845		)	(7,845		)	(251		)	(7,845		)	15,941			(7,845		)
Comprehensive income (loss)	$	181,715		$	186,175		$	(16,553	)	$	(1,682	)	$	(167,940	)	$	181,715

Condensed Consolidating Statements of Cash Flows

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows provided by operating activities:	$	—		$	206,843		$	127,018		$	35,368		$	—		$	369,229
Cash flows from investing activities:
Capital expenditures	—			(22,934		)	(55,072		)	(10,550		)	—			(88,556		)
Intercompany investing activity	368,307			480			(2,118		)	131			(366,800		)	—
Proceeds from sale of property, plant and equipment	—			23			—			193			—			216
Net cash provided by(used in) investing activities	$	368,307		$	(22,431	)	$	(57,190	)	$	(10,226	)	$	(366,800	)	$	(88,340	)
Cash flows from financing activities:
Intercompany financing activity	—			(283,909		)	(74,681		)	(8,210		)	366,800			—
Dividends paid	(66,355		)	—			—			—			—			(66,355		)
Repurchase of common stock	(300,445		)	—			—			—			—			(300,445		)
Income tax benefit from stock-based compensation	—			2,782			2,018			—			—			4,800
Withholdings from vesting of restricted stock	(8,673		)	—			—			—			—			(8,673		)
Proceeds from exercise of stock options	7,166			—			—			—			—			7,166
Net cash (used in) provided by financing activities	(368,307		)	(281,127		)	(72,663		)	(8,210		)	366,800			(363,507		)
Effect of exchange rate changes on cash	—			—			—			767			—			767
Net (decrease) increase in cash and cash equivalents	—			(96,715		)	(2,835		)	17,699			—			(81,851		)
Cash and cash equivalents, beginning of fiscal year	—			325,771			14,652			40,786			—			381,209
Cash and cash equivalents, end of fiscal year	$	—		$	229,056		$	11,817		$	58,485		$	—		$	299,358

CARTER’S, INC.

Condensed Consolidating Statement of Cash Flows

For the fiscal year ended January 2, 2016

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows provided by operating activities:	$	—		$	148,656		$	115,589		$	43,742		$	—		$	307,987
Cash flows from investing activities:
Capital expenditures	—			(27,813		)	(64,707		)	(10,977		)	—			(103,497		)
Intercompany investing activity	161,993			5,642			(2,735		)	(8,582		)	(156,318		)	—
Proceeds from repayment of intercompany loan	—			35,000			—			—			(35,000		)	—
Issuance of intercompany loan	—			(15,000		)	—			—			15,000			—
Proceeds from sale of property, plant and equipment	—			65			—			7			—			72
Net cash provided by (used in) investing activities	$	161,993		$	(2,106	)	$	(67,442	)	$	(19,552	)	$	(176,318	)	$	(103,425	)
Cash flows from financing activities:
Intercompany financing activity	—			(108,761		)	(46,672		)	(885		)	156,318			—
Repayment of intercompany loan	—			—			—			(35,000		)	35,000			—
Proceeds from intercompany loan	—			—			—			15,000			(15,000		)	—
Borrowings under secured revolving credit facility	—			166,000			—			39,586			—			205,586
Payments on secured revolving credit facility	—			(186,000		)	—			(19,237		)	—			(205,237		)
Payment of debt issuance costs	—			(1,628		)	—			—			—			(1,628		)
Payment of contingent consideration	—			(7,572		)	—			—			—			(7,572		)
Dividends paid	(46,028		)	—			—			—			—			(46,028		)
Repurchase of common stock	(110,290		)	—			—			—			—			(110,290		)
Income tax benefit from stock-based compensation	—			6,104			2,735			—			—			8,839
Withholdings from vesting of restricted stock	(12,651		)	—			—			—			—			(12,651		)
Proceeds from exercise of stock options	6,976			—			—			—			—			6,976
Net cash (used in) provided by financing activities	(161,993		)	(131,857		)	(43,937		)	(536		)	176,318			(162,005		)
Effect of exchange rate changes on cash	—			—			—			(1,986		)	—			(1,986		)
Net increase in cash and cash equivalents	—			14,693			4,210			21,668			—			40,571
Cash and cash equivalents, beginning of fiscal year	—			311,078			10,442			19,118			—			340,638
Cash and cash equivalents, end of fiscal year	$	—		$	325,771		$	14,652		$	40,786		$	—		$	381,209

CARTER’S, INC.

Condensed Consolidating Statement of Cash Flows

For the fiscal year ended January 3, 2015

(dollars in thousands)

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows provided by operating activities:	$	—		$	189,945		$	83,439		$	9,013		$	—		$	282,397
Cash flows from investing activities:
Capital expenditures	—			(45,868		)	(46,694		)	(10,891		)	—			(103,453		)
Intercompany investing activity	118,060			15,864			(2,445		)	(8,901		)	(122,578		)	—
Proceeds from repayment of intercompany loan	—			15,000			—			—			(15,000		)	—
Issuance of intercompany loan	—			(35,000		)	—			—			35,000			—
Acquisition of tradenames	—			(3,550		)	—			—			—			(3,550		)
Proceeds from sale of property, plant and equipment	—			2,267			—			4			—			2,271
Net cash provided by (used in) investing activities	$	118,060		$	(51,287	)	$	(49,139	)	$	(19,788	)	$	(102,578	)	(104,732		)
Cash flows from financing activities:
Intercompany financing activity	—			(99,018		)	(26,302		)	2,742			122,578			—
Proceeds from intercompany loan	—			—			—			(15,000		)	15,000			—
Repayment of intercompany loan	—			—			—			35,000			(35,000		)	—
Payment of debt issuance costs	—			(177		)	—			—			—			(177		)
Payment of contingent consideration	—			(8,901		)	—			—			—			(8,901		)
Dividends paid	(40,477		)	—			—			—			—			(40,477		)
Repurchase of common stock	(82,099		)	—			—			—			—			(82,099		)
Income tax benefit from stock-based compensation	—			2,256			2,444			—			—			4,700
Withholdings from vesting of restricted stock	(4,548		)	—			—			—			—			(4,548		)
Proceeds from exercise of stock options	9,064			—			—			—			—			9,064
Net cash (used in) provided by financing activities	(118,060		)	(105,840		)	(23,858		)	22,742			102,578			(122,438		)
Effect of exchange rate changes on cash	—			—			—			(1,135		)	—			(1,135		)
Net increase in cash and cash equivalents	—			32,818			10,442			10,832			—			54,092
Cash and cash equivalents, beginning of fiscal year	—			278,260			—			8,286			—			286,546
Cash and cash equivalents, end of fiscal year	$	—		$	311,078		$	10,442		$	19,118		$	—		$	340,638

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows provided by operating activities:	$	—		$	148,656		$	115,589		$	43,742		$	—		$	307,987
Cash flows from investing activities:
Capital expenditures	—			(27,813		)	(64,707		)	(10,977		)	—			(103,497		)
Intercompany investing activity	161,993			5,642			(2,735		)	(8,582		)	(156,318		)	—
Proceeds from repayment of intercompany loan	—			35,000			—			—			(35,000		)	—
Issuance of intercompany loan	—			(15,000		)	—			—			15,000			—
Proceeds from sale of property, plant and equipment	—			65			—			7			—			72
Net cash provided by (used in) investing activities	$	161,993		$	(2,106	)	$	(67,442	)	$	(19,552	)	$	(176,318	)	$	(103,425	)
Cash flows from financing activities:
Intercompany financing activity	—			(108,761		)	(46,672		)	(885		)	156,318			—
Repayment of intercompany loan	—			—			—			(35,000		)	35,000			—
Proceeds from intercompany loan	—			—			—			15,000			(15,000		)	—
Borrowings under secured revolving credit facility	—			166,000			—			39,586			—			205,586
Payments on secured revolving credit facility	—			(186,000		)	—			(19,237		)	—			(205,237		)
Payment of debt issuance costs	—			(1,628		)	—			—			—			(1,628		)
Payment of contingent consideration	—			(7,572		)	—			—			—			(7,572		)
Dividends paid	(46,028		)	—			—			—			—			(46,028		)
Repurchase of common stock	(110,290		)	—			—			—			—			(110,290		)
Income tax benefit from stock-based compensation	—			6,104			2,735			—			—			8,839
Withholdings from vesting of restricted stock	(12,651		)	—			—			—			—			(12,651		)
Proceeds from exercise of stock options	6,976			—			—			—			—			6,976
Net cash (used in) provided by financing activities	(161,993		)	(131,857		)	(43,937		)	(536		)	176,318			(162,005		)
Effect of exchange rate changes on cash	—			—			—			(1,986		)	—			(1,986		)
Net increase in cash and cash equivalents	—			14,693			4,210			21,668			—			40,571
Cash and cash equivalents, beginning of fiscal year	—			311,078			10,442			19,118			—			340,638
Cash and cash equivalents, end of fiscal year	$	—		$	325,771		$	14,652		$	40,786		$	—		$	381,209