GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 30, 2017

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	$	—	$	129,463	$	10,030	$	39,001	$	—		$	178,494
Accounts receivable, net	—		182,944		40,286		17,331		—			240,561
Intercompany receivable	—		87,702		162,007		58,980		(308,689		)	—
Finished goods inventories	—		296,065		206,556		66,569		(20,468		)	548,722
Prepaid expenses and other current assets	—		17,013		19,019		13,860		—			49,892
Total current assets	—		713,187		437,898		195,741		(329,157		)	1,017,669
Property, plant, and equipment, net	—		147,858		189,511		40,555		—			377,924
Goodwill	—		136,570		45,368		48,486		—			230,424
Tradenames, net	—		223,251		142,300		—		—			365,551
Customer relationships, net	—		—		44,996		3,000		—			47,996
Other assets	—		23,884		2,392		2,159		—			28,435
Intercompany long-term receivable	—		—		441,294		—		(441,294		)	—
Intercompany long-term note receivable	—		100,000		—		—		(100,000		)	—
Investment in subsidiaries	857,093		1,052,901		231,994		—		(2,141,988		)	—
Total assets	$	857,093	$	2,397,651	$	1,535,753	$	289,941	$	(3,012,439	)	$	2,067,999
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	—	$	115,658	$	49,313	$	17,143	$	—		$	182,114
Intercompany Liabilities	—		215,573		91,697		1,419		(308,689		)	—
Other current liabilities	—		11,805		121,074		13,631		—			146,510
Total current liabilities	—		343,036		262,084		32,193		(308,689		)	328,624
Long-term debt, net	—		617,306		—		—		—			617,306
Deferred income taxes	—		46,620		37,550		678		—			84,848
Intercompany long-term liability	—		441,294		—		—		(441,294		)	—
Intercompany long-term note payable	—		—		100,000		—		(100,000		)	—
Other long-term liabilities	—		71,834		92,570		15,724		—			180,128
Stockholders' equity	857,093		877,561		1,043,549		241,346		(2,162,456		)	857,093
Total liabilities and stockholders' equity	$	857,093	$	2,397,651	$	1,535,753	$	289,941	$	(3,012,439	)	$	2,067,999

CARTER’S, INC.

Condensed Consolidating Balance Sheet

As of December 31, 2016

(dollars in thousands)

	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, net	—		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

Condensed Consolidating Statements of Operations and Comprehensive Income

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,922,930		$	1,955,611		$	372,312		$	(850,443	)	$	3,400,410
Cost of goods sold	—			1,406,517			1,143,815			196,389			(829,625		)	1,917,096
Gross profit	—			516,413			811,796			175,923			(20,818		)	1,483,314
Selling, general, and administrative expenses	—			181,129			837,253			126,055			(37,510		)	1,106,927
Royalty income	—			(34,816		)	(19,725		)	—			11,360			(43,181		)
Operating income (loss)	—			370,100			(5,732		)	49,868			5,332			419,568
Interest expense	—			29,758			5,498			96			(5,308		)	30,044
Interest income	—			(5,497		)	—			(156		)	5,308			(345		)
(Income) loss in subsidiaries	(302,764		)	(25,343		)	(38,948		)	—			367,055			—
Other income, net	—			(1,153		)	1,281			(1,291		)	—			(1,163		)
Income (loss) before income taxes	302,764			372,335			26,437			51,219			(361,723		)	391,032
Provision for income taxes	—			74,903			1,096			12,269			—			88,268
Net income (loss)	$	302,764		$	297,432		$	25,341		$	38,950		$	(361,723	)	$	302,764

CARTER’S, INC.

Condensed Consolidating Statement of Operations

For the fiscal year ended December 31, 2016

(dollars in thousands)

	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

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income	$	302,764		$	297,432		$	25,341		$	38,950	$	(361,723	)	$	302,764
Post-retirement benefit plans	(692		)	(692		)	(430		)	—		1,122			(692		)
Foreign currency translation adjustments	6,339			6,339			6,339			6,339		(19,017		)	6,339
Comprehensive income	$	308,411		$	303,079		$	31,250		$	45,289	$	(379,618	)	$	308,411

For the fiscal year ended December 31, 2016

(dollars in thousands)

	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

Condensed Consolidating Statements of Cash Flows

	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows provided by operating activities:	$	—		$	166,999		$	118,813		$	43,809		$	—		$	329,621
Cash flows from investing activities:
Capital expenditures	—			(21,690		)	(38,899		)	(8,884		)	—			(69,473		)
Acquisitions of businesses, net of cash acquired	—			(143,270		)	746			(15,933		)				(158,457		)
Intercompany investing activity	256,991			(25,607		)	894			27,397			(259,675		)	—
Disposals of property, plant and equipment	—			—			15			—			—			15
Net cash provided by (used in) investing activities	$	256,991		$	(190,567	)	$	(37,244	)	$	2,580		$	(259,675	)	$	(227,915	)
Cash flows from financing activities:
Intercompany financing activity	—			(128,906		)	(83,356		)	(47,413		)	259,675			—
Borrowings under secured revolving credit facility	—			200,000			—			—			—			200,000
Payments on secured revolving credit facility	—			(145,000		)	—			(18,965		)	—			(163,965		)
Payment of debt issuance costs	—			(2,119		)	—			—			—			(2,119		)
Dividends paid	(70,914		)	—			—			—			—			(70,914		)
Repurchases of common stock	(188,762		)	—			—			—			—			(188,762		)
Withholdings from vesting of restricted stock	(5,753		)	—			—			—			—			(5,753		)
Proceeds from exercises of stock options	8,438			—			—			—			—			8,438
Net cash (used in) provided by financing activities	(256,991		)	(76,025		)	(83,356		)	(66,378		)	259,675			(223,075		)
Effect of exchange rate changes on cash	—			—			—			505			—			505
Decrease in cash and cash equivalents	—			(99,593		)	(1,787		)	(19,484		)	—			(120,864		)
Cash and cash equivalents, beginning of fiscal year	—			229,056			11,817			58,485			—			299,358
Cash and cash equivalents, end of fiscal year	$	—		$	129,463		$	10,030		$	39,001		$	—		$	178,494

CARTER’S, INC.

Condensed Consolidating Statement of Cash Flows

For the fiscal year ended December 31, 2016

(dollars in thousands)

	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		)	—
Disposals 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		)
Repurchases 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 exercises 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			—
Disposals 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			—
Proceeds from intercompany loan	—			—			—			15,000			(15,000		)	—
Repayment of intercompany loan	—			—			—			(35,000		)	35,000			—
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		)
Repurchases 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 exercises 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

	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		)	—
Disposals 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		)
Repurchases 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 exercises 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