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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
    For the quarterly period ended July 3, 2021
OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to __________
Commission file number: 001-31829
CARTER’S, INC.
(Exact name of registrant as specified in its charter)
Delaware
13-3912933
(State or other jurisdiction of(I.R.S. Employer Identification No.)
incorporation or organization)

Phipps Tower,
3438 Peachtree Road NE, Suite 1800
Atlanta, Georgia 30326
(Address of principal executive offices, including zip code)
(678) 791-1000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, par value $0.01 per shareCRINew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer x Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes No x
As of July 23, 2021, there were 44,011,080 shares of the registrant’s common stock outstanding.






CARTER’S, INC.
INDEX
Page
Unaudited Condensed Consolidated Balance Sheets as of July 3, 2021, January 2, 2021 and June 27, 2020
Unaudited Condensed Consolidated Statements of Operations for the fiscal quarter and two fiscal quarters ended July 3, 2021 and June 27, 2020
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the fiscal quarter and two fiscal quarters ended July 3, 2021 and June 27, 2020
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the fiscal quarters ended July 3, 2021, April 3, 2021, June 27, 2020 and March 28, 2020
Unaudited Condensed Consolidated Statements of Cash Flows for the two fiscal quarters ended July 3, 2021 and June 27, 2020
Part II. Other Information
Certifications




PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CARTER’S, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(unaudited)
July 3, 2021January 2, 2021June 27, 2020
ASSETS
Current assets:
Cash and cash equivalents$1,120,901 $1,102,323 $1,000,581 
Accounts receivable, net of allowance for credit losses of $7,130, $5,940, and $9,242, respectively
163,957 186,512 165,578 
Finished goods inventories, net of inventory reserves of $15,726, $14,206, and $32,092, respectively
619,617 599,262 672,205 
Prepaid expenses and other current assets66,549 57,927 51,180 
Total current assets1,971,024 1,946,024 1,889,544 
Property, plant, and equipment, net of accumulated depreciation of $545,702, $583,980, and $559,142, respectively
231,944 262,345 287,941 
Operating lease assets527,121 593,008 648,505 
Tradenames, net307,768 307,893 308,017 
Goodwill213,195 211,776 208,573 
Customer relationships, net35,777 37,510 38,950 
Other assets29,097 34,024 31,104 
Total assets$3,315,926 $3,392,580 $3,412,634 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$356,826 $472,140 $458,075 
Current operating lease liabilities158,270 185,152 163,665 
Other current liabilities113,240 135,240 80,634 
Total current liabilities628,336 792,532 702,374 
Long-term debt, net990,437 989,530 1,232,649 
Deferred income taxes58,150 52,770 63,850 
Long-term operating lease liabilities484,881 554,497 620,063 
Other long-term liabilities56,618 65,218 60,420 
Total liabilities$2,218,422 $2,454,547 $2,679,356 
Commitments and contingencies - Note 14
Stockholders’ equity:
Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding at July 3, 2021, January 2, 2021, and June 27, 2020
$ $ $ 
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 44,011,080, 43,780,075, and 43,636,176 shares issued and outstanding at July 3, 2021, January 2, 2021, and June 27, 2020, respectively
440 438 436 
Additional paid-in capital31,521 17,752 5,539 
Accumulated other comprehensive loss(27,263)(32,760)(45,045)
Retained earnings1,092,806 952,603 772,348 
Total stockholders’ equity1,097,504 938,033 733,278 
Total liabilities and stockholders’ equity$3,315,926 $3,392,580 $3,412,634 
See accompanying notes to the unaudited condensed consolidated financial statements.
1


CARTER’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
(unaudited)
Fiscal quarter endedTwo fiscal quarters ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Net sales$746,400 $514,885 $1,533,761 $1,169,357 
Cost of goods sold379,793 284,073 781,524 687,445 
Adverse purchase commitments (inventory and raw materials), net(2,100)(4,703)(8,430)18,134 
Gross profit368,707 235,515 760,667 463,778 
Royalty income, net6,645 3,588 14,108 10,926 
Selling, general, and administrative expenses267,770 218,149 539,697 487,986 
Goodwill impairment   17,742 
Intangible asset impairment   26,500 
Operating income (loss)107,582 20,954 235,078 (57,524)
Interest expense15,295 15,312 30,643 24,176 
Interest income(201)(423)(426)(887)
Other (income) expense, net(723)587 (1,640)5,405 
Income (loss) before income taxes93,211 5,478 206,501 (86,218)
Income tax provision (benefit) 21,608 (2,678)48,702 (15,680)
Net income (loss)$71,603 $8,156 $157,799 $(70,538)
Basic net income (loss) per common share$1.63 $0.19 $3.59 $(1.64)
Diluted net income (loss) per common share$1.62 $0.19 $3.58 $(1.64)
Dividend declared and paid per common share$0.40 $ $0.40 $0.60 
See accompanying notes to the unaudited condensed consolidated financial statements.
2


CARTER’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(unaudited)
Fiscal quarter endedTwo fiscal quarters ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Net income (loss)$71,603 $8,156 $157,799 $(70,538)
Other comprehensive income (loss):
Foreign currency translation adjustments4,271 3,581 5,497 (9,411)
Comprehensive income (loss)$75,874 $11,737 $163,296 $(79,949)
See accompanying notes to the unaudited condensed consolidated financial statements.
3


CARTER’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(amounts in thousands, except share amounts)
(unaudited)
Common stock - shares
Common
stock - $
Additional
paid-in
capital
Accumulated other comprehensive
loss
Retained
earnings
Total
stockholders’
equity
Balance at December 28, 201943,963,103 $440 $ $(35,634)$915,324 $880,130 
Exercise of stock options33,158  1,840   1,840 
Withholdings from vesting
of restricted stock
(43,611) (4,712)  (4,712)
Restricted stock activity132,759 1 (1)   
Stock-based compensation expense—  1,945   1,945 
Repurchase of common stock(474,684)(5)928  (46,178)(45,255)
Cash dividends declared and paid—    (26,260)(26,260)
Comprehensive loss—   (12,992)(78,694)(91,686)
Balance at March 28, 202043,610,725 $436 $ $(48,626)$764,192 $716,002 
Exercise of stock options14,180  1,076   1,076 
Withholdings from vesting
of restricted stock
(1,016) (77)  (77)
Restricted stock activity12,287      
Stock-based compensation expense—  4,540   4,540 
Comprehensive income—   3,581 8,156 11,737 
Balance at June 27, 202043,636,176 $436 $5,539 $(45,045)$772,348 $733,278 
Common stock - shares
Common
stock - $
Additional
paid-in
capital
Accumulated other comprehensive
loss
Retained
earnings
Total
stockholders’
equity
Balance at January 2, 202143,780,075 $438 $17,752 $(32,760)$952,603 $938,033 
Exercise of stock options12,065  811   811 
Withholdings from vesting
of restricted stock
(37,444) (3,588)  (3,588)
Restricted stock activity192,963 2 (2)   
Stock-based compensation expense—  6,931   6,931 
Comprehensive income—   1,226 86,196 87,422 
Balance at April 3, 202143,947,659 $440 $21,904 $(31,534)$1,038,799 $1,029,609 
Exercise of stock options57,274  4,336   4,336 
Withholdings from vesting
of restricted stock
(1,057) (110)  (110)
Restricted stock activity7,204      
Stock-based compensation expense—  5,391   5,391 
Cash dividends declared and paid—    (17,596)(17,596)
Comprehensive income—   4,271 71,603 75,874 
Balance at July 3, 202144,011,080 $440 $31,521 $(27,263)$1,092,806 $1,097,504 
            See accompanying notes to the unaudited condensed consolidated financial statements.
4


CARTER’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
Two fiscal quarters ended
July 3, 2021June 27, 2020
Cash flows from operating activities:
Net income (loss)$157,799 $(70,538)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property, plant, and equipment44,613 43,774 
Amortization of intangible assets1,866 1,858 
Provisions for excess and obsolete inventory1,451 23,058 
Goodwill impairment 17,742 
Intangible asset impairments 26,500 
Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries2,056 7,332 
Amortization of debt issuance costs1,497 916 
Stock-based compensation expense12,322 6,485 
Unrealized foreign currency exchange loss, net61 1,621 
Provisions for doubtful accounts receivable from customers1,206 3,036 
Unrealized (gain) loss on investments(1,279)1,904 
Deferred income taxes expense (benefit)5,817 (10,559)
Effect of changes in operating assets and liabilities:
Accounts receivable21,620 80,566 
Finished goods inventories(19,663)(106,922)
Prepaid expenses and other assets(*)
(8,724)(4,156)
Accounts payable and other liabilities(171,119)214,796 
Net cash provided by operating activities$49,523 $237,413 
Cash flows from investing activities:
Capital expenditures$(20,506)$(16,708)
Proceeds from sale of investments(*)
5,000 1,400 
Net cash used in investing activities$(15,506)$(15,308)
Cash flows from financing activities:
Proceeds from senior notes due 2025$ $500,000 
Payment of debt issuance costs(223)(7,639)
Borrowings under secured revolving credit facility 644,000 
Payments on secured revolving credit facility (500,000)
Repurchases of common stock (45,255)
Dividends paid(17,596)(26,260)
Withholdings from vesting of restricted stock(3,698)(4,789)
Proceeds from exercises of stock options5,147 2,916 
Net cash (used in) provided by financing activities$(16,370)$562,973 
Net effect of exchange rate changes on cash and cash equivalents931 1,192 
Net increase in cash and cash equivalents$18,578 $786,270 
Cash and cash equivalents, beginning of period1,102,323 214,311 
Cash and cash equivalents, end of period$1,120,901 $1,000,581 
(*)Cash flows for the two fiscal quarters ended June 27, 2020 were revised to reflect the reclassification of $1.4 million proceeds from sale of investments from cash flows from operating activities to cash flows from investing activities.
See accompanying notes to the unaudited condensed consolidated financial statements.
5


CARTER’S, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 1 – THE COMPANY
Carter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s, OshKosh, Skip Hop, Child of Mine, Just One You, Simple JoysMy First Love, little planet, and other brands. The Company’s products are sourced through contractual arrangements with manufacturers worldwide for: 1) wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and 2) distribution to the Company’s own retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies.
NOTE 2 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income (loss), statement of stockholders’ equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter ended July 3, 2021 are not necessarily indicative of the results that may be expected for the current fiscal year ending January 1, 2022.
The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates.
The accompanying condensed consolidated balance sheet as of January 2, 2021 was derived from the Company’s audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q.
COVID-19
The Company is closely monitoring the effects of the ongoing coronavirus (“COVID-19”) pandemic and its impact on our business. Additionally, the Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of July 3, 2021 and through the date of this report filing. The accounting matters assessed included, but were not limited to, our allowance for credit losses, inventory reserves, adverse inventory and fabric purchase commitments, stock-based compensation, and the carrying value of our goodwill, indefinite-lived intangible assets, and other long-lived assets. Based on these assessments, in the second quarter and first two quarters of fiscal 2021, the Company recorded a benefit in fabric purchase commitment charges of $2.1 million and $8.4 million, respectively, related to better than expected sales of inventory and utilization of fabric that was reserved for in the first quarter of fiscal 2020 due to COVID-19 related disruptions. As of July 3, 2021, the outstanding reserve for adverse inventory and fabric purchase commitments related to COVID-19 disruptions in the first two quarters of fiscal 2020 was not material.
Additional COVID-19 related charges were $1.0 million and $3.2 million in the second quarter of fiscal 2021 and the first two quarters of fiscal 2021, respectively. These charges were primarily related to the costs associated with additional personal protective equipment and cleaning supplies.
Accounting Policies
The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies.
6


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 3 - REVENUE RECOGNITION
The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements as well as arrangements that are implied by customary practices or law.
Disaggregation of Revenue
The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the second quarter and two quarters ended fiscal 2021 and 2020 were as follows:
Fiscal quarter ended July 3, 2021
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$ $231,630 $33,610 $265,240 
Direct-to-consumer423,627  57,533 481,160 
$423,627 $231,630 $91,143 $746,400 
Royalty income$2,360 $2,876 $1,409 $6,645 
Two fiscal quarters ended July 3, 2021
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$ $515,007 $76,402 $591,409 
Direct-to-consumer830,694  111,658 942,352 
$830,694 $515,007 $188,060 $1,533,761 
Royalty income$5,430 $6,651 $2,027 $14,108 
Fiscal quarter ended June 27, 2020
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$ $151,744 $15,541 $167,285 
Direct-to-consumer316,016  31,584 347,600 
$316,016 $151,744 $47,125 $514,885 
Royalty income$1,252 $1,508 $828 $3,588 
Two fiscal quarters ended June 27, 2020
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$ $403,874 $54,272 $458,146 
Direct-to-consumer636,733  74,478 711,211 
$636,733 $403,874 $128,750 $1,169,357 
Royalty income$3,746 $5,590 $1,590 $10,926 
7


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)July 3, 2021January 2, 2021June 27, 2020
Trade receivables from wholesale customers, net$164,591 $180,830 $159,043 
Royalties receivable5,991 5,733 5,371 
Tenant allowances and other receivables9,478 12,315 15,188 
Total receivables$180,060 $198,878 $179,602 
Less: Wholesale accounts receivable reserves(*)
(16,103)(12,366)(14,024)
Accounts receivable, net$163,957 $186,512 $165,578 
(*)Includes allowance for credit losses of $7.1 million $5.9 million, and $9.2 million for the periods ended July 3, 2021, January 2, 2021, and June 27, 2020, respectively.
Contract Assets and Liabilities
The Company’s contract assets are not material.
Contract Liabilities
The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:    
(dollars in thousands)July 3, 2021January 2, 2021June 27, 2020
Contract liabilities - current:
Unredeemed gift cards$18,049 $18,300 $15,667 
Unredeemed customer loyalty rewards4,829 5,241 4,664 
Carter’s credit card - upfront bonus(1)
714 714 714 
Total contract liabilities - current(2)
$23,592 $24,255 $21,045 
Contract liabilities - non-current(3)
$2,500 $2,857 $3,214 
Total contract liabilities$26,092 $27,112 $24,259 
(1)The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months.
(2)Included with Other current liabilities on the Company’s consolidated balance sheets.
(3)This amount reflects the non-current portion of the Carter’s credit card upfront bonus.
NOTE 4 - LEASES
The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease.
As of July 3, 2021, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statements of cash flows.
The following components of lease expense are included in Selling, general and administrative expenses on the Company’s consolidated statements of operations for the second quarter and first two quarters of fiscal 2021 and 2020:
Fiscal quarter endedTwo fiscal quarters ended
(dollars in thousands)July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Operating lease cost$42,100 $45,527 $84,798 $91,950 
Variable lease cost (*)
16,276 19,219 32,674 35,504 
Net lease cost$58,376 $64,746 $117,472 $127,454 
(*)Includes short-term leases, which are not material, and operating lease asset impairment charges.
8


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
Supplemental balance sheet information related to leases was as follows:
Fiscal quarter ended
July 3, 2021June 27, 2020
Weighted average remaining operating lease term (years)5.25.7
Weighted average discount rate for operating leases3.30%3.95%
Cash paid for amounts included in the measurement of operating lease liabilities in the second quarter and two first quarters of fiscal 2021 were $56.8 million and $114.7 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities in the second quarter and first two quarters of fiscal 2020 were $47.6 million and $97.8 million, respectively. The total cash paid in the second quarter and first two quarters of fiscal 2020 reflects the contractual amounts due to be paid in cash. For the fiscal quarter ended June 27, 2020, the Company deferred cash payments of $35.8 million of these amounts, which are included in the statement of cash flows as part of the change in Accounts payable and other liabilities.
Non-cash transactions to recognize operating assets and liabilities for new leases for the second quarter and first two quarters of fiscal 2021 were $4.3 million and $7.6 million, respectively. Non-cash transactions to recognize operating assets and liabilities for the second quarter and first two quarters of fiscal 2020 were $15.8 million and $45.2 million, respectively.
As of July 3, 2021, the maturities of lease liabilities were as follows:
(dollars in thousands)Operating leases
Remainder of 2021$93,535 
2022159,881 
2023132,257 
2024105,945 
202576,952 
202654,170 
After 202678,074 
Total lease payments$700,814 
Less: Interest(57,663)
Present value of lease liabilities(*)$643,151 
(*)As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.
NOTE 5 – ACCUMULATED OTHER COMPREHENSIVE LOSS
The components of Accumulated other comprehensive loss consisted of the following:
(dollars in thousands)July 3, 2021January 2, 2021June 27, 2020
Cumulative foreign currency translation adjustments$(15,810)$(21,307)$(35,933)
Pension and post-retirement obligations(*)
(11,453)(11,453)(9,112)
Total accumulated other comprehensive loss$(27,263)$(32,760)$(45,045)
(*)Net of income taxes of $3.5 million, $3.5 million, and $2.8 million for the period ended July 3, 2021, January 2, 2021, and June 27, 2020, respectively.
During the first two quarters of both fiscal 2021 and fiscal 2020, no amounts were reclassified from Accumulated other comprehensive loss to the statement of operations.
9


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 6 – GOODWILL AND INTANGIBLE ASSETS
The balances and changes in the carrying amount of goodwill attributable to each segment were as follows:
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Balance at December 28, 2019$83,934 $74,454 $70,638 $229,026 
Goodwill impairment(1)
  (17,742)(17,742)
Foreign currency impact  (2,711)(2,711)
Balance at June 27, 2020$83,934 $74,454 $50,185 $208,573 
Balance at January 2, 2021(2)
$83,934 $74,454 $53,388 $211,776 
Foreign currency impact  1,419 1,419 
Balance at July 3, 2021(2)
$83,934 $74,454 $54,807 $213,195 
(1)In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment.
(2)Goodwill for the International reporting unit is net of accumulated impairment losses of $17.7 million.
A summary of the carrying value of the Company’s intangible assets were as follows:
July 3, 2021January 2, 2021
(dollars in thousands)Weighted-average useful lifeGross amountAccumulated amortizationNet amountGross amountAccumulated amortizationNet amount
Carter’s tradename
Indefinite$220,233 $— $220,233 $220,233 $— $220,233 
OshKosh tradename
Indefinite70,000 — 70,000 70,000 — 70,000 
Skip Hop tradename
Indefinite15,000 — 15,000 15,000 — 15,000 
Finite-life tradenames
5-20 years
3,911 1,376 2,535 3,911 1,251 2,660 
Total tradenames$309,144 $1,376 $307,768 $309,144 $1,251 $307,893 
Skip Hop customer relationships15 years$47,300 $13,422 $33,878 $47,300 $11,834 $35,466 
Carter’s Mexico customer relationships10 years3,116