10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

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: 001-32891

Hanesbrands Inc.

(Exact name of registrant as specified in its charter)

Maryland	20-3552316
(State of incorporation)	(I.R.S. employer identification no.)
1000 East Hanes Mill Road Winston-Salem, North Carolina	27105
(Address of principal executive office)	(Zip code)

(336) 519-8080

(Registrant’s telephone number including area code)

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post 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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨(Do not check if a smaller reporting company)	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 October 27, 2017, there were 364,584,181 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS

		Page
Forward-Looking Statements		1
Where You Can Find More Information		1
PART I
Item 1.	Financial Statements (unaudited):
	Condensed Consolidated Statements of Income for the quarters and nine months ended September 30, 2017 and October 1, 2016	2
	Condensed Consolidated Statements of Comprehensive Income for the quarters and nine months ended September 30, 2017 and October 1, 2016	3
	Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016	4
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and October 1, 2016	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30
PART II
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signatures		33

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “will,” “expect,” “project,” “estimate,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. In particular, statements under the heading “Outlook” and other information appearing under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” include forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements.

Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that the expectation or belief will result or will be achieved or accomplished. More information on factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission (the “SEC”), including this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2016, under the caption “Risk Factors,” and available on the “Investors” section of our corporate website, www.Hanes.com/investors.

All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report on Form 10-Q or our Annual Report on Form 10-K for the year ended December 31, 2016, particularly under the caption “Risk Factors.” We undertake no obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the SEC. You can read our SEC filings over the Internet at the SEC’s website at www.sec.gov. To receive copies of public records not posted to the SEC’s web site at prescribed rates, you may complete an online form at www.sec.gov, send a fax to (202) 772-9337 or submit a written request to the SEC, Office of FOIA/PA Operations, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information.

We make available free of charge at www.Hanes.com/investors (in the “Investors” section) copies of materials we file with, or furnish to, the SEC. By referring to our corporate website, www.Hanes.com/corporate, or any of our other websites, we do not incorporate any such website or its contents into this Quarterly Report on Form 10-Q.

1

PART I

Item 1. Financial Statements

HANESBRANDS INC.

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Net sales	$	1,799,270	$	1,761,019	$	4,826,235		$	4,452,890
Cost of sales	1,120,813		1,111,653		2,962,345			2,788,977
Gross profit	678,457		649,366		1,863,890			1,663,913
Selling, general and administrative expenses	425,153		421,014		1,260,641			1,091,946
Operating profit	253,304		228,352		603,249			571,967
Other expenses	1,881		1,559		4,659			50,533
Interest expense, net	43,917		43,433		130,184			111,539
Income from continuing operations before income tax expense	207,506		183,360		468,406			409,895
Income tax expense	4,150		10,570		19,804			28,693
Income from continuing operations	203,356		172,790		448,602			381,202
Income (loss) from discontinued operations, net of tax	—		1,068		(2,097		)	1,068
Net income	$	203,356	$	173,858	$	446,505		$	382,270
Earnings per share — basic:
Continuing operations	$	0.56	$	0.46	$	1.22		$	1.00
Discontinued operations	—		—		(0.01		)	—
Net income	$	0.56	$	0.46	$	1.21		$	1.00
Earnings per share — diluted:
Continuing operations	$	0.55	$	0.45	$	1.21		$	0.99
Discontinued operations	—		—		(0.01		)	—
Net income	$	0.55	$	0.45	$	1.20		$	0.99

See accompanying notes to Condensed Consolidated Financial Statements.

2

HANESBRANDS INC.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

	Quarter Ended					Nine Months Ended
	September 30, 2017		October 1, 2016			September 30, 2017		October 1, 2016
Net income	$	203,356	$	173,858		$	446,505	$	382,270
Other comprehensive income (loss), net of tax of $1,427, ($247), $7,870 and ($701), respectively	5,051		(2,713		)	9,349		13,691
Comprehensive income	$	208,407	$	171,145		$	455,854	$	395,961

See accompanying notes to Condensed Consolidated Financial Statements.

3

HANESBRANDS INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

(unaudited)

	September 30, 2017			December 31, 2016
Assets
Cash and cash equivalents	$	400,045		$	460,245
Trade accounts receivable, net	1,009,188			836,924
Inventories	1,953,918			1,840,565
Other current assets	196,875			137,535
Current assets of discontinued operations	—			45,897
Total current assets	3,560,026			3,321,166
Property, net	624,602			692,464
Trademarks and other identifiable intangibles, net	1,371,007			1,285,458
Goodwill	1,141,942			1,098,540
Deferred tax assets	504,059			464,872
Other noncurrent assets	79,087			67,980
Total assets	$	7,280,723		$	6,930,480
Liabilities and Stockholders’ Equity
Accounts payable	$	852,671		$	761,647
Accrued liabilities	614,599			619,795
Notes payable	23,969			56,396
Accounts Receivable Securitization Facility	250,995			44,521
Current portion of long-term debt	154,395			133,843
Current liabilities of discontinued operations	—			9,466
Total current liabilities	1,896,629			1,625,668
Long-term debt	3,566,547			3,507,685
Pension and postretirement benefits	378,573			371,612
Other noncurrent liabilities	207,807			201,601
Total liabilities	6,049,556			5,706,566
Stockholders’ equity:
Preferred stock (50,000,000 authorized shares; $.01 par value)
Issued and outstanding — None	—			—
Common stock (2,000,000,000 authorized shares; $.01 par value)
Issued and outstanding — 364,571,559 and 378,687,052, respectively	3,646			3,787
Additional paid-in capital	267,675			260,002
Retained earnings	1,386,488			1,396,116
Accumulated other comprehensive loss	(426,642		)	(435,991		)
Total stockholders’ equity	1,231,167			1,223,914
Total liabilities and stockholders’ equity	$	7,280,723		$	6,930,480

See accompanying notes to Condensed Consolidated Financial Statements.

4

HANESBRANDS INC. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
	Nine Months Ended
	September 30, 2017			October 1, 2016
Operating activities:
Net income	$	446,505		$	382,270
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of long-lived assets	89,762			73,715
Write-off on early extinguishment of debt	2,153			12,667
Charges incurred for amendments of credit facilities	—			34,624
Amortization of debt issuance costs	7,943			6,401
Stock compensation expense	6,351			16,292
Deferred taxes and other	(12,744		)	(18,938		)
Changes in assets and liabilities, net of acquisition of businesses:
Accounts receivable	(147,933		)	(198,217		)
Inventories	(74,945		)	4,557
Other assets	(42,664		)	(6,167		)
Accounts payable	71,264			(80,589		)
Accrued pension and postretirement benefits	15,021			(34,419		)
Accrued liabilities and other	(29,623		)	16,095
Net cash from operating activities	331,090			208,291
Investing activities:
Purchases of property, plant and equipment	(60,418		)	(65,439		)
Proceeds from sales of assets	4,398			68,701
Acquisition of businesses, net of cash acquired	(524		)	(963,127		)
Disposition of businesses	40,285			—
Net cash from investing activities	(16,259		)	(959,865		)
Financing activities:
Borrowings on notes payable	212,804			854,915
Repayments on notes payable	(249,708		)	(943,893		)
Borrowings on Accounts Receivable Securitization Facility	342,315			194,549
Repayments on Accounts Receivable Securitization Facility	(135,841		)	(145,638		)
Borrowings on Revolving Loan Facilities	2,957,799			2,995,442
Repayments on Revolving Loan Facilities	(2,738,000		)	(2,992,000		)
Borrowings on Senior Notes	—			2,359,347
Repayments on Senior Notes	—			(1,000,000		)
Borrowings on Term Loan Facilities	—			301,272
Repayments on Term Loan Facilities	(201,281		)	(154,670		)
Borrowings on International Debt	—			8,368
Repayments on International Debt	(44,073		)	(11,186		)
Share repurchases	(299,919		)	(379,901		)
Cash dividends paid	(165,211		)	(125,798		)
Payments to amend and refinance credit facilities	(559		)	(79,492		)
Payment of contingent consideration	(41,250		)	—
Taxes paid related to net shares settlement of equity awards	(8,075		)	(2,919		)
Other	3,401			1,529
Net cash from financing activities	(367,598		)	879,925
Effect of changes in foreign exchange rates on cash	(7,433		)	2,693
Change in cash and cash equivalents	(60,200		)	131,044
Cash and cash equivalents at beginning of year	460,245			319,169
Cash and cash equivalents at end of period	$	400,045		$	450,213

See accompanying notes to Condensed Consolidated Financial Statements.

5

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands, except per share data)

(unaudited)

(1) Basis of Presentation

These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair statement of the results of operations, financial condition and cash flows of Hanesbrands Inc., a Maryland corporation, and its consolidated subsidiaries (the “Company” or “Hanesbrands”). In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the results of operations, financial condition and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. Three subsidiaries of the Company close on the calendar month-end, which is less than a week different than the Company’s consolidated quarter end. The difference in reporting of financial information for these subsidiaries did not have a material impact on the Company’s financial condition, results of operations or cash flows.

As a result of further policy harmonization related to acquired businesses, certain prior year amounts in the condensed consolidated financial statements, none of which are material, have been reclassified to conform with the current year presentation. The reclassification on the Condensed Consolidated Balance Sheet is between the “Trade accounts receivable, net” line and the “Accrued liabilities” line of $22,746 as of December 31, 2016. The reclassification on the Condensed Consolidated Statement of Cash Flow is between the “Accounts Receivable” and the “Accrued liabilities and other” line of $2,744 for the nine months ended October 1, 2016. This reclassification had no impact on the Company’s results of operations.

These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K. The year end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

(2) Recent Accounting Pronouncements

Inventory

In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory”, which requires inventory to be recorded at the lower of cost or net realizable value. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows.

Hedge Accounting

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, which clarifies that a change in the counterparty to a derivative contract, in and of itself, does not require the dedesignation of a hedging relationship. The new standard, which can be adopted prospectively or on a modified retrospective basis, was effective for the Company in the first quarter of 2017. Also in March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”, which clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows.

6

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The new standard will be effective for the Company in the first quarter of 2018 and can be applied using a modified retrospective or full retrospective method. The Company has established an implementation team consisting of finance, accounting and front-end business partners to analyze the impact of the guidance across all of its revenue sources. The Company has evaluated the new standard against its existing accounting policies and practices, including reviewing standard purchase orders, invoices, shipping terms, conducting questionnaires with our global team and reviewing contracts with customers. The Company has not identified any information that would indicate that the new guidance will have a material impact on the Company’s financial statements. The Company expects to have enhanced disclosures related to disaggregation of revenue sources and accounting policies. The Company expects to adopt the new standard in the first quarter of 2018 using the modified retrospective transition method.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. Issues addressed in the new guidance that are relevant to the Company include debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and beneficial interests in securitization transactions. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s cash flows.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The new rules eliminate the exception for an intra-entity transfer of an asset other than inventory, which aligns the recognition of income tax consequences for such transfers. The new rules require the recognition of current and deferred income taxes resulting from these transfers when the transfer occurs rather than when it is sold to an external party. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Definition of a Business

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The new rules provide for the application of a screen test to consider whether substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If the screen test determines this to be true, the set is not a business. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Compensation Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. The new rules require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Stock Compensation

In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The new rules provide guidance about which changes to the terms or conditions of a share-based payment award

7

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

require an entity to apply modification accounting. Under the new rules, an entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award immediately before the original award is modified. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Lease Accounting

In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations and cash flows.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The new rules expand the hedging strategies that qualify for hedge accounting, including contractually-specified price components of a commodity purchase or sale, hedges of the benchmark rate component of the contractual coupon cash flows of fixed-rate assets and liabilities, hedges of the portion of a closed portfolio of prepayable assets and partial-term hedges of fixed-rate assets and liabilities. The new rules also allow additional time to complete hedge effectiveness testing and allow qualitative assessments subsequent to initial quantitative tests if there is a supportable expectation that the hedge will remain highly effective. The new rules will be effective for the Company in the first quarter of 2019, with early adoption permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The new rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2020. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

(3) Acquisitions

Hanes Australasia

On July 14, 2016, the Company acquired 100% of the outstanding shares of Pacific Brands Limited (“Hanes Australasia”) for a total purchase price of AUD$1,049,360 ($800,871). US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand, a portion of the net proceeds from the 3.5% Senior Notes issued in June 2016 and borrowings under the Australian Term A-1 Loan Facility and the Australian Term A-2 Loan Facility.

8

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

The acquired assets and assumed liabilities at the date of acquisition (July 14, 2016) include the following:

Cash and cash equivalents	$	54,294
Accounts receivable, net	36,019
Inventories	104,806
Other current assets	16,588
Current assets of discontinued operations	50,839
Property, net	34,835
Trademarks and other identifiable intangibles	506,170
Deferred tax assets and other noncurrent assets	23,687
Total assets acquired	827,238
Accounts payable	89,309
Accrued liabilities and other	24,912
Current liabilities of discontinued operations	14,564
Long-term debt	41,976
Deferred tax liabilities and other noncurrent liabilities	16,320
Total liabilities assumed	187,081
Net assets acquired	640,157
Goodwill	160,714
Purchase price	$	800,871

Since July 14, 2016, goodwill decreased by $25,434 as a result of measurement period adjustments, primarily related to the valuation adjustments for the Dunlop Flooring and Tontine Pillow businesses and completion of deferred tax balances. The purchase price allocation was finalized in the third quarter of 2017.

Champion Europe

On June 30, 2016, the Company acquired 100% of Champion Europe S.p.A. (“Champion Europe”), which owns the trademark for the Champion brand in Europe, the Middle East and Africa, from certain individual shareholders in an all-cash transaction valued at €220,751 ($245,554) on an enterprise value basis, less working capital adjustments as defined in the purchase agreement, which included €40,700 ($45,277) in estimated contingent consideration. US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand and a portion of the net proceeds from the 3.5% Senior Notes issued in June 2016.

The estimated contingent consideration is included in the “Accrued liabilities” line in the accompanying Condensed Consolidated Balance Sheet and is based on 10 times Champion Europe’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) in excess of €18,600, calculated as defined by the purchase agreement, for the calendar year 2016 and is payable in 2017. The contingent consideration is required to be revalued each reporting period until paid. At September 30, 2017, the contingent consideration payment was pending finalization of Champion Europe’s calendar year 2016 EBITDA calculation in accordance with the purchase agreement. On April 28, 2017, an initial payment of €37,820 ($41,250) was made to the sellers towards the contingent consideration liability, which represents the mutually agreed portion of the contingent consideration. Management continues to evaluate and discuss the proposed adjustments to the EBITDA calculation with the sellers and believes the remaining accrual is consistent with management’s expectations for any additional amount that will be due in connection with the contingent consideration. In addition to the initial payment, additional contingent consideration payments could total up to approximately €46,600.

9

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

The acquired assets, contingent consideration and assumed liabilities at the date of acquisition (June 30, 2016) include the following:

Cash and cash equivalents	$	14,581
Trade accounts receivable, net	27,926
Inventories	53,816
Other current assets	5,976
Property, net	24,605
Trademarks and other identifiable intangibles	135,277
Deferred tax assets and other noncurrent assets	3,777
Total assets acquired	265,958
Accounts payable	66,594
Accrued liabilities and other (including contingent consideration)	60,887
Notes payable	27,748
Deferred tax liabilities and other noncurrent liabilities	20,282
Total liabilities assumed and contingent consideration	175,511
Net assets acquired	90,447
Goodwill	109,830
Initial consideration paid	200,277
Estimated contingent consideration	45,277
Total purchase price	$	245,554

Since June 30, 2016, goodwill increased by $1,665 as a result of measurement period adjustments primarily to working capital. The purchase price allocation was finalized in the second quarter of 2017.

Consolidated Pro Forma Results

Consolidated unaudited pro forma results of operations for the Company are presented below assuming that the 2016 acquisitions of Hanes Australasia and Champion Europe had occurred on January 4, 2015. Pro forma operating results for the quarter and nine months ended October 1, 2016 exclude expenses totaling $751 and $6,187 respectively, for acquisition-related adjustments primarily related to inventory and stock compensation.

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales	$	1,799,270	$	1,780,530	$	4,826,235	$	4,859,619
Net income from continuing operations	203,356		172,040		448,602		448,589
Earnings per share from continuing operations:
Basic	$	0.56	$	0.45	$	1.22	$	1.17
Diluted	0.55		0.45		1.21		1.16

Subsequent Event

On October 13, 2017, the Company acquired 100% of Alternative Apparel, Inc. (“Alternative Apparel”) from Rosewood Capital V, L.P. and certain individual shareholders in an all-cash transaction valued at approximately $60,000 on an enterprise value basis. Alternative Apparel sells the Alternative brand better basics T-shirts, fleece and other tops and bottoms. Alternative is a lifestyle brand known for its comfort, style and social responsibility. The Company funded the acquisition with cash on hand and short term borrowing under the Revolving Loan Facility. The Company believes this acquisition will create growth opportunities by supporting its Activewear growth strategy by expanding its market and channel penetration, including online, supported by the Company’s global low-cost supply chain and manufacturing network. Due to the immaterial nature of this acquisition, the Company has not provided additional disclosures herein.

10

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

(4) Discontinued Operations

As part of the Company’s acquisition of Hanes Australasia, the Company acquired Hanes Australasia’s legacy Dunlop Flooring and Tontine Pillow businesses. The Company concluded that these businesses were not a strategic fit; therefore, the decision was made to divest of the businesses.

In February 2017, the Company sold its Dunlop Flooring business for AUD$34,564 ($26,219) in net cash proceeds at the time of sale, with an additional AUD$1,334 ($1,012) of proceeds received in April 2017 related to a working capital adjustment, resulting in a pre-tax loss of AUD$2,715 ($2,083). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Dunlop Flooring business was reported as part of discontinued operations since the date of acquisition.

In March 2017, the Company sold its Tontine Pillow business for AUD$13,500 ($10,363) in net cash proceeds at the time of sale. A working capital adjustment of AUD$966 ($742) was paid to the buyer in April 2017, resulting in a net pre-tax gain of AUD$2,415 ($1,856). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Tontine Pillow business was reported as part of discontinued operations since the date of acquisition.

The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows:

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Net sales	$	—	$	15,587	$	6,865		$	15,587
Cost of sales	—		9,996		4,507			9,996
Gross profit	—		5,591		2,358			5,591
Selling, general and administrative expenses	—		3,570		3,729			3,570
Operating profit (loss)	—		2,021		(1,371		)	2,021
Other expenses	—		495		303			495
Net loss on disposal of businesses	—		—		242			—
Income (loss) from discontinued operations before income tax expense	—		1,526		(1,916		)	1,526
Income tax expense	—		458		181			458
Net income (loss) from discontinued operations, net of tax	$	—	$	1,068	$	(2,097	)	$	1,068

(5) Stockholders’ Equity

Basic earnings per share (“EPS”) was computed by dividing net income by the number of weighted average shares of common stock outstanding. Diluted EPS was calculated to give effect to all potentially dilutive shares of common stock using the treasury stock method.

The reconciliation of basic to diluted weighted average shares outstanding is as follows:

	Quarter Ended		Nine Months Ended
	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
Basic weighted average shares outstanding	366,083	379,368	368,885	382,235
Effect of potentially dilutive securities:
Stock options	1,541	1,890	1,591	2,016
Restricted stock units	535	1,293	470	1,210
Employee stock purchase plan and other	1	7	1	17
Diluted weighted average shares outstanding	368,160	382,558	370,947	385,478

There were 28 and 58 restricted stock units excluded from the diluted earnings per share calculation because their effect would be anti-dilutive for the quarter and nine months endedSeptember 30, 2017, respectively. For the quarter and nine months

11

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

endedOctober 1, 2016, there were 42 restricted stock units excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. For the quarters and nine months endedSeptember 30, 2017 and October 1, 2016, no options were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive.

For the quarters ended September 30, 2017 and October 1, 2016, the Company declared cash dividends of $0.15 and $0.11 per share, respectively. For the nine months endedSeptember 30, 2017 and October 1, 2016, the Company declared cash dividends of $0.45 and $0.33 per share, respectively.

On October 24, 2017, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share on outstanding shares of common stock to be paid on December 5, 2017 to stockholders of record at the close of business on November 14, 2017.

On April 27, 2016, the Company’s Board of Directors approved a new share repurchase program for up to 40,000 shares to be repurchased in open market transactions, subject to market conditions, legal requirements and other factors. The Company did not repurchase any shares during the quarters ended September 30, 2017 and October 1, 2016. For the nine months endedSeptember 30, 2017, the Company entered into transactions to repurchase 14,696 shares at a weighted average repurchase price of $20.39 per share. The shares were repurchased at a total cost of $299,919. For the nine months endedOctober 1, 2016, the Company repurchased 14,243 shares under the previous share repurchase program at a weighted average purchase price of $26.65 per share. The shares were repurchased at a total cost of $379,901. At September 30, 2017, the remaining repurchase authorization totaled 25,304 shares. The program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

(6) Inventories

Inventories consisted of the following:

	September 30, 2017		December 31, 2016
Raw materials	$	130,567	$	131,228
Work in process	201,729		185,066
Finished goods	1,621,622		1,524,271
	$	1,953,918	$	1,840,565

12

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

(7) Debt

Debt consisted of the following:

	Interest Rate as of September 30, 2017	Principal Amount				Maturity Date
		September 30, 2017		December 31, 2016
Senior Secured Credit Facility:
Revolving Loan Facility	2.99%	$	211,000	$	—	April 2020
Term Loan A	2.95%	605,625		655,469		April 2020
Term Loan B	3.74%	318,625		318,625		April 2022
Australian Term A-1	3.15%	156,974		143,544		July 2019
Australian Term A-2	—%	—		143,544		July 2021
4.875% Senior Notes	4.88%	900,000		900,000		May 2026
4.625% Senior Notes	4.63%	900,000		900,000		May 2024
3.5% Senior Notes	3.50%	587,268		520,617		June 2024
European Revolving Loan Facility	1.50%	79,868		62,474		September 2018
Accounts Receivable Securitization Facility	2.12%	250,995		44,521		March 2018
Other International Debt	Various	2,027		43,789		Various
		4,012,382		3,732,583
Less long-term debt issuance cost		40,445		46,534
Less current maturities		405,390		178,364
		$	3,566,547	$	3,507,685

As of September 30, 2017, the Company had $784,117 of borrowing availability under the $1,000,000 Revolving Loan Facility after taking into account outstanding borrowings and $4,883 of standby and trade letters of credit issued and outstanding under this facility. The Company also had $24,005 of borrowing availability under the Accounts Receivable Securitization Facility, $37,586 of borrowing availability under the European Revolving Loan Facility, $51,016 of borrowing availability under the Australian Revolving Loan Facility and $60,648 of borrowing availability under other international lines of credit after taking into account outstanding borrowings and letters of credit outstanding under the applicable facility.

In March 2017, the Company amended the Accounts Receivable Securitization Facility that it entered into in November 2007 (the “Accounts Receivable Securitization Facility”). This amendment primarily extended the maturity date to March 2018.

In September 2017, the Company amended the European Revolving Loan Facility primarily to extend the maturity date to September 2018.

As of September 30, 2017, the Company was in compliance with all financial covenants under its credit facilities.

(8) Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss (“AOCI”) are as follows:

	Cumulative Translation Adjustment			Hedges			Defined Benefit Plans			Income Taxes			Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	(78,059	)	$	13,772		$	(606,583	)	$	234,879		$	(435,991	)
Amounts reclassified from accumulated other comprehensive loss	—			(3,348		)	14,440			(4,611		)	6,481
Current-period other comprehensive income (loss) activity	34,047			(43,660		)	—			12,481			2,868
Balance at September 30, 2017	$	(44,012	)	$	(33,236	)	$	(592,143	)	$	242,749		$	(426,642	)

13

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

The Company had the following reclassifications out of AOCI:

Component of AOCI	Location of Reclassification into Income	Amount of Reclassification from AOCI						Amount of Reclassification from AOCI
		Quarter Ended						Nine Months Ended
		September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Gain on foreign exchange contracts	Cost of sales	$	414		$	715		$	3,348		$	4,424
	Income tax	191			(278		)	(934		)	(1,721		)
	Net of tax	605			437			2,414			2,703
Amortization of deferred actuarial loss and prior service cost	Selling, general and administrative expenses	(4,862		)	(4,307		)	(14,440		)	(12,843		)
	Income tax	1,867			1,675			5,545			4,996
	Net of tax	(2,995		)	(2,632		)	(8,895		)	(7,847		)
Total reclassifications		$	(2,390	)	$	(2,195	)	$	(6,481	)	$	(5,144	)

(9) Financial Instruments and Risk Management

The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. As of September 30, 2017, the notional U.S. dollar equivalent of commitments to sell foreign currencies within the Company’s derivative portfolio was $588,866, primarily consisting of contracts hedging exposures to the Australian dollar, Euro, Canadian dollar, Mexican peso, and the New Zealand dollar.

Fair Values of Derivative Instruments

The fair values of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:

	Balance Sheet Location	Fair Value
		September 30, 2017			December 31, 2016
Hedges	Other current assets	$	907		$	16,729
Non-hedges	Other current assets	541			4,363
Total derivative assets		1,448			21,092
Hedges	Accrued liabilities	(21,169		)	(207		)
Non-hedges	Accrued liabilities	(4,503		)	(172		)
Total derivative liabilities		(25,672		)	(379		)
Net derivative (liability) asset		$	(24,224	)	$	20,713

Cash Flow Hedges

The Company uses forward foreign exchange contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates.

The Company expects to reclassify into earnings during the next 12 months a net loss from AOCI of approximately $16,432.

The changes in fair value of derivatives excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Income.

14

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows:

	Amount of Loss Recognized in AOCI (Effective Portion)						Amount of Loss Recognized in AOCI (Effective Portion)
	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Foreign exchange contracts	$	(17,379	)	$	(3,594	)	$	(43,660	)	$	(7,131	)

	Location of Gain Reclassified from AOCI into Income (Effective Portion)	Amount of Gain Reclassified from AOCI into Income (Effective Portion)				Amount of Gain Reclassified from AOCI into Income (Effective Portion)
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Foreign exchange contracts	Cost of sales	$	414	$	715	$	3,348	$	4,424

Derivative Contracts Not Designated As Hedges

The Company uses foreign exchange derivative contracts as economic hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany lending transactions denominated in foreign currencies. These contracts are not designated as hedges under the accounting standards and are recorded at fair value in the Condensed Consolidated Balance Sheet. Any gains or losses resulting from changes in fair value are recognized directly into earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities.

The effect of derivative contracts not designated as hedges on the Condensed Consolidated Statements of Income is as follows:

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain Recognized in Income				Amount of Gain (Loss) Recognized in Income
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Foreign exchange contracts	Selling, general and administrative expenses	$	3,277	$	7,694	$	(1,398	)	$	7,970

(10) Fair Value of Assets and Liabilities

As of September 30, 2017, the Company held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis. These consisted of the Company’s derivative instruments related to foreign exchange rates, deferred compensation plan liabilities and contingent consideration resulting from the Champion Europe acquisition. The fair values of foreign currency derivatives are determined using the cash flows of the foreign exchange contract, discount rates to account for the passage of time and current foreign exchange market data and are categorized as Level 2. The fair value of deferred compensation plans is based on readily available current market data and is categorized as Level 2. The fair value of the contingent consideration obligation was determined by applying a multiple of 10 times Champion Europe’s EBITDA for calendar year 2016 in excess of €18,600, as defined per the purchase agreement, as further described in Note 3 to the Company’s condensed consolidated financial statements, and is categorized as Level 3. An initial payment of €37,820 was made on April 28, 2017 to the sellers, which represents the mutually agreed portion of the contingent consideration. The remaining contingent consideration obligation will be revalued each reporting period until the related contingencies are resolved, with any adjustments to the fair value recognized in earnings. The Company’s defined benefit pension plan investments are not required to be measured at fair value on a recurring basis.

15

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

There were no changes during the quarter ended September 30, 2017 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. There were no transfers into or out of Level 1, Level 2 or Level 3 during the quarter ended September 30, 2017. As of and during the quarter and nine months endedSeptember 30, 2017, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis.

The following tables set forth, by level within the fair value hierarchy, the Company’s financial assets and liabilities accounted for at fair value on a recurring basis.

	Assets (Liabilities) at Fair Value as of September 30, 2017
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	1,448		$	—	$	1,448		$	—
Foreign exchange derivative contracts	(25,672		)	—		(25,672		)	—
	(24,224		)	—		(24,224		)	—
Champion Europe contingent consideration	(3,383		)	—		—			(3,383		)
Deferred compensation plan liability	(53,237		)	—		(53,237		)	—
Total	$	(80,844	)	$	—	$	(77,461	)	$	(3,383	)

	Assets (Liabilities) at Fair Value as of December 31, 2016
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	21,092		$	—	$	21,092		$	—
Foreign exchange derivative contracts	(379		)	—		(379		)	—
	20,713			—		20,713			—
Champion Europe contingent consideration	(42,378		)	—		—			(42,378		)
Deferred compensation plan liability	(51,868		)	—		(51,868		)	—
Total	$	(73,533	)	$	—	$	(31,155	)	$	(42,378	)

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable and accounts payable approximated fair value as of September 30, 2017 and December 31, 2016. The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $23,998 and $18,726 as of September 30, 2017 and December 31, 2016, respectively. The fair value of debt, which is classified as a Level 2 liability, was $4,206,792 and $3,729,270 as of September 30, 2017 and December 31, 2016, respectively. Debt had a carrying value of $4,012,382 and $3,732,583 as of September 30, 2017 and December 31, 2016, respectively. The fair values were estimated using quoted market prices as provided in secondary markets, which consider the Company’s credit risk and market related conditions. The carrying amounts of the Company’s notes payable, which is classified as a Level 2 liability, approximated fair value as of September 30, 2017 and December 31, 2016, primarily due to the short-term nature of these instruments.

(11) Income Taxes

The Company’s effective income tax rate for continuing operations was 2% and 6% for the quarters ended September 30, 2017 and October 1, 2016, respectively. The Company’s effective income tax rate for continuing operations was 4% and 7% for the nine months endedSeptember 30, 2017 and October 1, 2016, respectively. The lower effective income tax rate for the quarter and nine months endedSeptember 30, 2017 compared to the quarter and nine months endedOctober 1, 2016 was primarily due to favorable adjustments resulting from the finalization of the prior year federal tax return, resulting in the recognition of previously unrecognized foreign tax credits, recognized discretely in the period ending September 30, 2017.

16

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

Additionally, there was a lower proportion of earnings attributed to domestic subsidiaries, which are taxed at higher rates than foreign subsidiaries, for the nine months ending September 30, 2017 as compared to the nine months ending October 1, 2016.

(12) Business Segment Information

In the first quarter of 2017, the Company realigned its reporting segments to reflect the new model under which the business will be managed and results will be reviewed by the chief executive officer, who is the Company’s chief operating decision maker. The former Direct to Consumer segment, which consisted of the Company’s U.S. value-based (“outlet”) stores, legacy catalog business and U.S. retail Internet operations, was eliminated. The Company’s U.S. retail Internet operations, which sells products directly to consumers, is now reported in the respective Innerwear and Activewear segments. Other consists of the Company’s U.S. value-based (“outlet”) stores, U.S. hosiery business (previously reported in the Innerwear segment) and legacy catalog operations. Prior year segment sales and operating profit results have been revised to conform to the current year presentation.

The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms.

The types of products and services from which each reportable segment derives its revenues are as follows:

• Innerwear sells basic branded products that are replenishment in nature under the product categories of men’s underwear, panties, children’s underwear, socks and intimate apparel, which includes bras and shapewear.

• Activewear sells basic branded products that are primarily seasonal in nature under the product categories of branded printwear and retail activewear, as well as licensed logo apparel in collegiate bookstores, mass retail and other channels.

• International primarily relates to the Europe, Australia, Asia, Latin America and Canada geographic locations that sell products that span across the Innerwear and Activewear reportable segments.

The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, acquisition-related and integration charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2016.

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales:
Innerwear	$	644,059	$	679,096	$	1,868,255	$	1,953,807
Activewear	519,496		516,713		1,226,595		1,207,767
International	556,730		478,122		1,509,370		1,026,871
Other	78,985		87,088		222,015		264,445
Total net sales	$	1,799,270	$	1,761,019	$	4,826,235	$	4,452,890

17

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Segment operating profit:
Innerwear	$	141,002		$	147,902		$	407,982		$	435,660
Activewear	79,015			72,962			162,053			160,076
International	76,414			61,312			185,216			109,184
Other	10,162			9,199			16,250			27,408
Total segment operating profit	306,593			291,375			771,501			732,328
Items not included in segment operating profit:
General corporate expenses	(26,136		)	(14,776		)	(63,354		)	(54,798		)
Acquisition-related and integration charges	(16,874		)	(42,587		)	(81,303		)	(91,651		)
Amortization of intangibles	(10,279		)	(5,660		)	(23,595		)	(13,912		)
Total operating profit	253,304			228,352			603,249			571,967
Other expenses	(1,881		)	(1,559		)	(4,659		)	(50,533		)
Interest expense, net	(43,917		)	(43,433		)	(130,184		)	(111,539		)
Income from continuing operations before income tax expense	$	207,506		$	183,360		$	468,406		$	409,895

For the quarter endedSeptember 30, 2017, the Company incurred acquisition-related and integration charges of $16,874, of which $2,230 is reported in the “Cost of sales” line and $14,644 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter endedOctober 1, 2016, the Company incurred acquisition-related and integration charges of $42,587, of which $13,563 is reported in the “Cost of sales” line and $29,024 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income.

For the nine months endedSeptember 30, 2017, the Company incurred acquisition-related and integration charges of $81,303, of which $21,989 is reported in the “Cost of sales” line and $59,314 is reported in the “Selling, general and administrative expenses” line. For the nine months endedOctober 1, 2016, the Company incurred acquisition-related and integration charges of $138,942, of which $27,732 is reported in the “Cost of sales” line, $63,919 is reported in the “Selling, general and administrative expenses” line and $47,291 is reported in the “Other expenses” line in the Condensed Consolidated Statement of Income.

As part of the Hanes Europe Innerwear acquisition strategy, in 2015 the Company identified management and administrative positions that were considered non-essential and/or duplicative that have or will be eliminated. As of December 31, 2016, the Company had accrued approximately $32,542 for expected benefit payments related to employee termination and other benefits for affected employees. During the nine months ended September 30, 2017, there were approximately $9,836 of benefit payments and foreign currency adjustments, resulting in an accrual of $22,706, of which, $10,905 and $11,801, is included in the “Accrued liabilities” and “Other noncurrent liabilities” lines of the Condensed Consolidated Balance Sheet, respectively.

In the first quarter of 2017, the Company approved an action to resize its U.S. corporate office workforce through separation programs affecting employees primarily in the Innerwear and Activewear segments. As of April 1, 2017, the Company accrued approximately $10,145 for employee termination and other benefits in accordance with expected benefit payments, with the majority of charges reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2017, there were approximately $8,477 of benefit payments and an additional accrual of $4,653, resulting in an ending accrual of $6,321 included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheet.

The Company closed its Nanjing, China textile plant in the first quarter of 2017 as part of a plan to realign its Asia textile production in order to better support its global commercial footprint, which has evolved over the past 10 years through major acquisitions in the United States, Europe and Australia. As of April 1, 2017, the Company accrued approximately $8,534 for employee termination and other benefits in accordance with expected benefit payments for employees. The charges, along with other facility exit costs of $2,831, were reflected in the “Cost of sales” line of the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2017, there were approximately $8,057 of benefit payments and foreign

18

HANESBRANDS INC.

Notes to Condensed Consolidated Financial Statements — (Continued)

(dollars and shares in thousands, except per share data)

(unaudited)

currency adjustments, resulting in an accrual of $477, which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheet. As of September 30, 2017, the Nanjing, China textile plant, valued at $65,570, was classified as assets held for sale and reported within the “Other current assets” line of the Condensed Consolidated Balance Sheet.

19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This management’s discussion and analysis of financial condition and results of operations, or MD&A, contains forward-looking statements that involve risks and uncertainties. Please see “Forward-Looking Statements” in this Quarterly Report on Form 10-Q for a discussion of the uncertainties, risks and assumptions associated with these statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2016, which were included in our Annual Report on Form 10-K filed with the SEC. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those included elsewhere in this Quarterly Report on Form 10-Q and those included in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016.

Overview

We are a consumer goods company with a portfolio of leading apparel brands, including Hanes, Champion, DIM, Maidenform, Playtex, Bonds, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Berlei, Lilyette and Gear for Sports. We design, manufacture, source and sell a broad range of basic apparel such as T-shirts, bras, panties, men’s underwear, children’s underwear, activewear, socks and hosiery.

Our operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. In the first quarter of 2017, we realigned our reporting segments to reflect the new model under which the business will be managed and results will be reviewed by the chief executive officer, who is our chief operating decision maker. The former Direct to Consumer segment, which consisted of our U.S. value-based (“outlet”) stores, legacy catalog business and U.S. retail Internet operations, was eliminated. Our U.S. retail Internet operations, which sells products directly to consumers, is now reported in the respective Innerwear and Activewear segments. Other consists of our U.S. value-based (“outlet”) stores, U.S. hosiery business (previously reported in the Innerwear segment) and legacy catalog operations. Prior year segment sales and operating profit results have been revised to conform to the current year presentation.

Highlights from the Third Quarter Ended September 30, 2017

Key financial highlights are as follows:

• Total net sales in the third quarter of 2017 were $1.80 billion, compared with $1.76 billion in the same period of 2016, representing a 2% increase.

• Operating profit increased 11% to $253 million in the third quarter of 2017, compared with $228 million in the same period of 2016. As a percentage of sales, operating profit was 14.1% in the third quarter of 2017 compared to 13.0% in the same period of 2016. Included within operating profit for both the third quarter of 2017 and 2016 were acquisition-related and integration charges of $17 million and $43 million, respectively.

• Diluted earnings per share from continuing operations increased 22% to $0.55 in the third quarter of 2017, compared with $0.45 in the same period of 2016.

In 2017, we began executing a multi-year program (“Project Booster”) to drive investment for sales growth, cost reduction and increased cash flow. Under Project Booster, we are investing to accelerate worldwide omnichannel and global Champion growth, while also investing in marketing and brand building for our leading lineup of brands globally. To fund growth initiatives, reduce costs and increase cash flow, we expect to reduce overhead, including headcount, to reflect market trends and needs; drive additional supply chain optimization beyond integration synergies; and focus on inventory turns and other working capital improvements. We intend to use our size and scale to drive supply chain optimization, including by investing in our domestic distribution center network to better serve the online channel, gaining procurement and product development savings, utilizing global fabric platforms and silhouettes, and continuing to internalize production.

The Project Booster initiative is expected to generate approximately $150 million in annualized cost savings. We expect to annually reinvest approximately $50 million of the savings in targeted growth opportunities, which would result in approximately $100 million of annual net cost savings and incremental cash from operations by the end of 2019. In addition to the annual net cost savings, we also plan to drive approximately $200 million of non-recurring working capital improvements which will result in a one-time benefit to cash from operations by the end of 2019.

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Outlook

We expect our 2017 full year net sales to be approximately $6.450 billion to $6.475 billion.

Interest and other expenses are expected to be approximately $180 million, combined.

We estimate our full year effective income tax rate to be approximately 5%, assuming no changes to U.S. tax law and policy.

We expect cash flow from operations to be in the range of $625 million to $725 million. We expect capital expenditures of approximately $90 million.

Seasonality and Other Factors

Our operating results are subject to some variability due to seasonality and other factors. Generally, our diverse range of product offerings helps mitigate the impact of seasonal changes in demand for certain items. We generally have higher sales during the back-to-school and holiday shopping seasons and during periods of cooler weather, which benefits certain product categories such as fleece. Sales levels in any period are also impacted by customers’ decisions to increase or decrease their inventory levels in response to anticipated consumer demand. Our customers may cancel or change delivery schedules, manage on-hand inventory levels, or change the mix of products ordered with minimal notice to us. Media, advertising and promotion expenses may vary from period to period during a fiscal year depending on the timing of our advertising campaigns for retail selling seasons and product introductions.

Although the majority of our products are replenishment in nature and tend to be purchased by consumers on a planned, rather than on an impulse basis, our sales are impacted by discretionary spending by consumers. Discretionary spending is affected by many factors, including, among others, general business conditions, interest rates, inflation, consumer debt levels, the availability of consumer credit, taxation, gasoline prices, weather, unemployment trends and other matters that influence consumer confidence and spending. Many of these factors are outside of our control. Consumers’ purchases of discretionary items, including our products, could decline during periods when disposable income is lower, when prices increase in response to rising costs, or in periods of actual or perceived unfavorable economic conditions. These consumers may choose to purchase fewer of our products or to purchase lower-priced products of our competitors in response to higher prices for our products, or may choose not to purchase our products at prices that reflect our price increases that become effective from time to time.

Changes in product sales mix can impact our gross profit as the percentage of our sales attributable to higher margin products, such as intimate apparel and men’s underwear, and lower margin products, such as activewear, fluctuate from time to time. In addition, sales attributable to higher and lower margin products within the same product category fluctuate from time to time. Our customers may change the mix of products ordered with minimal notice to us, which makes trends in product sales mix difficult to predict. However, certain changes in product sales mix are seasonal in nature, as sales of socks, hosiery and fleece products generally have higher sales during the last two quarters (July to December) of each fiscal year as a result of cooler weather, back-to-school shopping and holidays, while other changes in product mix may be attributable to customers’ preferences and discretionary spending.

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Condensed Consolidated Results of Operations — Third Quarter EndedSeptember 30, 2017 Compared with Third Quarter EndedOctober 1, 2016

	Quarter Ended
	September 30, 2017		October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	1,799,270	$	1,761,019	$	38,251		2.2	%
Cost of sales	1,120,813		1,111,653		9,160			0.8
Gross profit	678,457		649,366		29,091			4.5
Selling, general and administrative expenses	425,153		421,014		4,139			1.0
Operating profit	253,304		228,352		24,952			10.9
Other expenses	1,881		1,559		322			20.7
Interest expense, net	43,917		43,433		484			1.1
Income from continuing operations before income tax expense	207,506		183,360		24,146			13.2
Income tax expense	4,150		10,570		(6,420		)	(60.7	)
Income from continuing operations	203,356		172,790		30,566			17.7
Income from discontinued operations, net of tax	—		1,068		(1,068		)	NM
Net income	$	203,356	$	173,858	$	29,498		17.0	%

Net Sales

Net sales increased 2% during the third quarter of 2017 primarily due to the following:

• Acquisition of It’s Greek to Me and GTM Retail, Inc. (“GTM”) in 2016, which added incremental net sales of approximately $15 million in the third quarter of 2017;

• Increased net sales driven by our global Champion and global online growth initiatives;

• Increased net sales in our Hanes Australasia business;

• Increased net sales within our sock product category; and

• Favorable impact of foreign exchange rates in our International businesses.

Partially offset by:

• Lower net sales in our remaining U.S. product categories as a result of softer-than-expected back-to-school trends driven by weak traffic at retail and continued declines in the overall apparel category; and

• Declines in hosiery sales within the U.S. and certain European markets.

Gross Profit

The increase in gross profit was attributable to supply chain efficiencies and synergies recognized from the integration of our acquisitions and lower acquisition-related and integration charges. Included in gross profit in the third quarters of 2017 and 2016 are charges of approximately $2 million and $14 million, respectively, related to acquisition-related and integration costs.

Selling, General and Administrative Expenses

As a percentage of net sales, our selling, general and administrative expenses were 23.6% for the third quarter of 2017 compared to 23.9% in the same period of 2016. Included in selling, general and administrative expenses were charges of $15 million and $29 million of acquisition-related and integration costs for the third quarters of 2017 and 2016, respectively. Selling, general and administrative expenses, as a percentage of net sales, decreased slightly due to lower acquisition-related and integration costs for the third quarter of 2017 compared to 2016, offset partially by the higher proportion selling, general and administrative expenses for the recently acquired entities, primarily GTM.

Other Highlights

Interest Expense – relatively flat in the third quarter of 2017 compared to the third quarter of 2016. A higher weighted average interest rate in 2017 compared to the same period of 2016 was nearly offset in full by lower debt balances. Our weighted average interest rate on our outstanding debt was 3.84% during the third quarter of 2017, compared to 3.69% in third quarter of 2016.

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Income Tax Expense – our effective income tax rate was 2% and 6% for the third quarters of 2017 and 2016, respectively. The lower tax rate in 2017 compared to the same period of 2016 is primarily driven by favorable adjustments due to the finalization of the prior year federal tax return, resulting in the recognition of previously unrecognized foreign tax credits, recognized discretely in the quarter. Additionally, there was a lower proportion of earnings attributed to domestic subsidiaries in the quarter, which are taxed at higher rates than foreign subsidiaries.  

Operating Results by Business Segment — Third Quarter EndedSeptember 30, 2017 Compared with Third Quarter EndedOctober 1, 2016

	Net Sales				Operating Profit
	Quarter Ended				Quarter Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
	(dollars in thousands)
Innerwear	$	644,059	$	679,096	$	141,002		$	147,902
Activewear	519,496		516,713		79,015			72,962
International	556,730		478,122		76,414			61,312
Other	78,985		87,088		10,162			9,199
Corporate	—		—		(53,289		)	(63,023		)
Total	$	1,799,270	$	1,761,019	$	253,304		$	228,352

Innerwear

	Quarter Ended
	September 30, 2017		October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	644,059	$	679,096	$	(35,037	)	(5.2	)%
Segment operating profit	141,002		147,902		(6,900		)	(4.7	)

Innerwear net sales decreased due to lower net sales in both our basics and intimates apparel businesses. Strength in our sock and licensed intimate apparel businesses was more than offset by declines in other product categories as a result of softer-than-expected back-to-school trends driven by weak traffic at retail and continued declines in the overall apparel category. Declines at retail were partially offset by strong online growth across all Innerwear product categories.

Decreased operating profit was largely driven by lower sales volume coupled with lower margins from unfavorable product mix, partially offset by lower selling, general and administrative expenses from continued cost control.

Activewear

	Quarter Ended
	September 30, 2017		October 1, 2016		Higher (Lower)		Percent Change
	(dollars in thousands)
Net sales	$	519,496	$	516,713	$	2,783	0.5	%
Segment operating profit	79,015		72,962		6,053		8.3

Activewear net sales increased with our expansion into the teamwear and fanware space with the acquisition of GTM in 2016, increased net sales in the licensed sports apparel business within the college bookstore business and growth in the online channel across Activewear product categories. Sales increases were offset partially by sales declines in our Hanes activewear apparel, primarily in the mass merchant channel.

Operating profit increased primarily as a result of product mix favoring higher gross margin businesses, sales volume and continued cost control.

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International

	Quarter Ended
	September 30, 2017		October 1, 2016		Higher (Lower)		Percent Change
	(dollars in thousands)
Net sales	$	556,730	$	478,122	$	78,608	16.4	%
Segment operating profit	76,414		61,312		15,102		24.6

Net sales in the International segment were higher as a result of the following:

• Increased net sales driven by our global Champion sales growth, primarily in the Europe and Asia markets;

• Increased innerwear net sales within our Hanes Australasia and Latin America businesses; and

• Favorable impact of foreign currency exchange rates.

Partially offset by:

• Declining hosiery sales and slower traffic at retail in certain European markets.

Operating profit increased primarily due to higher sales volume, coupled with cost synergies realized in our Hanes Europe Innerwear and Hanes Australasia businesses.

Other

	Quarter Ended
	September 30, 2017		October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	78,985	$	87,088	$	(8,103	)	(9.3	)%
Segment operating profit	10,162		9,199		963			10.5

Other net sales were lower as a result of continued declines in hosiery sales in the U.S. and slower traffic at our outlet stores and the impact from weather-related store closures. Operating profit increased as a result of continued cost control partially offset by lower sales volume.

Corporate

Corporate expenses included certain administrative costs and acquisition-related and integration charges. Acquisition-related and integration costs are expenses related directly to an acquisition and its integration into the organization. These costs include legal fees, consulting fees, bank fees, severance costs, certain purchase accounting items, facility closures, inventory write-offs, information technology costs and similar charges. Acquisition-related currency transactions represent the foreign exchange gain from financing activities related to the Champion Europe and Hanes Australasia acquisitions.

	Quarter Ended
	September 30, 2017			October 1, 2016
	(dollars in thousands)
Acquisition-related and integration costs:
Hanes Australasia	$	9,383		$	19,575
Hanes Europe Innerwear	8,136			18,673
Champion Europe	2,528			6,032
Knights Apparel	(3,429		)	5,588
Other acquisitions	256			549
Acquisition-related currency transactions	—			(7,830		)
Total acquisition-related and integration costs	$	16,874		$	42,587

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Condensed Consolidated Results of Operations — Nine Months EndedSeptember 30, 2017 Compared with Nine Months EndedOctober 1, 2016

	Nine Months Ended
	September 30, 2017			October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	4,826,235		$	4,452,890	$	373,345		8.4	%
Cost of sales	2,962,345			2,788,977		173,368			6.2
Gross profit	1,863,890			1,663,913		199,977			12.0
Selling, general and administrative expenses	1,260,641			1,091,946		168,695			15.4
Operating profit	603,249			571,967		31,282			5.5
Other expenses	4,659			50,533		(45,874		)	(90.8	)
Interest expense, net	130,184			111,539		18,645			16.7
Income from continuing operations before income tax expense	468,406			409,895		58,511			14.3
Income tax expense	19,804			28,693		(8,889		)	(31.0	)
Income from continuing operations	448,602			381,202		67,400			17.7
Income from discontinued operations, net of tax	(2,097		)	1,068		(3,165		)	NM
Net income	$	446,505		$	382,270	$	64,235		16.8	%

Net Sales

Net sales increased 8% in the nine months of 2017 compared to the same period of 2016 as a result of the following:

• Acquisitions of Hanes Australasia, Champion Europe and GTM in 2016, which added incremental net sales of approximately $451 million in the nine months of 2017;

• Increased net sales driven by our global Champion and global online growth initiatives;

• Increased net sales in our sock product category; and

• Sales growth in licensed sports apparel in the college bookstore business.

Partially offset by:

• Lower net sales in our remaining Innerwear product categories as a result of challenging consumer traffic at retail, cautious inventory management by retailers and store closures within the mid-tier and department store channel;

• Lower net sales in our licensed sports apparel business and Hanes activewear apparel within the mass merchant channel; and

• Lower net sales in Other driven by continued declines in hosiery, slower traffic at our outlet stores and the planned exit from our legacy catalog business in the third quarter of 2016.

Gross Profit

Gross profit increased in the nine months of 2017 compared to the same period in 2016 due to higher sales volume primarily from acquisitions, supply chain efficiencies and synergies recognized from the integration of our acquisitions, and lower acquisition-related and integration charges. Included in gross profit in the nine months of 2017 and 2016 are charges of approximately $22 million and $28 million, respectively, related to acquisition-related and integration costs.

Selling, General and Administrative Expenses

As a percentage of net sales, our selling, general and administrative expenses were 26.1% for the nine months of 2017 compared to 24.5% in the same period of 2016. Included in selling, general and administrative expenses were charges of $59 million and $64 million of acquisition-related and integration costs for the nine months of 2017 and 2016, respectively. The higher selling, general and administrative expenses, as a percentage of net sales, resulted from the higher proportion of selling, general and administrative expenses for our recently acquired businesses, primarily Hanes Australasia, Champion Europe and GTM, and expenses related to our Project Booster initiative including our U.S. corporate office headcount reduction efforts, offset partially by synergy benefits from the integration of prior acquisitions, cost savings from the planned reduction of our legacy catalog distribution, lower acquisition-related and integration costs and continued cost control.

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Other Highlights

Other Expenses –lower by $46 million in the nine months of 2017 compared to 2016, primarily due to costs associated with the redemption of our 6.375% Senior Notes in 2016, which included a call premium and write-off of unamortized debt issuance costs.

Interest Expense – higher by $19 million for the nine months of 2017 compared to 2016 primarily due to higher debt balances to help fund acquisitions and share repurchases coupled with a higher weighted average interest rate. Our weighted average interest rate on our outstanding debt was 3.78% for the nine months of 2017 and 3.65% for the nine months of 2016.

Income Tax Expense – our effective income tax rate was 4% and 7% for the nine months of 2017 and 2016, respectively. The lower effective income tax rate for the nine months endedSeptember 30, 2017 compared to the nine months endedOctober 1, 2016 was primarily due to favorable adjustments related to the finalization of the prior year federal tax return, resulting in the recognition of previously unrecognized foreign tax credits, recognized discretely in the third quarter of 2017. Additionally, there was a lower proportion of earnings attributed to domestic subsidiaries in 2017, which are taxed at higher rates than foreign subsidiaries.

Discontinued Operations – the results of our discontinued operations include the operations of two businesses, Dunlop Flooring and Tontine Pillow, which were purchased in the Hanes Australasia acquisition in 2016 and sold during the first quarter of 2017.

Operating Results by Business Segment — Nine Months EndedSeptember 30, 2017 Compared with Nine Months EndedOctober 1, 2016

	Net Sales				Operating Profit
	Nine Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
	(dollars in thousands)
Innerwear	$	1,868,255	$	1,953,807	$	407,982		$	435,660
Activewear	1,226,595		1,207,767		162,053			160,076
International	1,509,370		1,026,871		185,216			109,184
Other	$	222,015	264,445		16,250			27,408
Corporate	—		—		(168,252		)	(160,361		)
Total net sales	$	4,826,235	$	4,452,890	$	603,249		$	571,967

Innerwear

	Nine Months Ended
	September 30, 2017		October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	1,868,255	$	1,953,807	$	(85,552	)	(4.4	)%
Segment operating profit	407,982		435,660		(27,678		)	(6.4	)

Innerwear net sales decreased in both our basics and intimates apparel businesses. Strength in our sock and licensed intimate apparel businesses, as well as growth in the online channel was more than offset by declines in other product categories due to challenging consumer traffic at retail and cautious inventory management by retailers. Our intimate apparel business also experienced sales declines driven by the continued impact from retail store closures in the mid-tier and department store channel, partially offset by strong performance from our new Maidenform sport and millennial product offerings.

Decreased operating profit was driven largely by lower sales volume coupled with lower margins from unfavorable product mix, as well as expenses related to Project Booster, offset partially by continued cost control.

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Activewear 

	Nine Months Ended
	September 30, 2017		October 1, 2016		Higher (Lower)		Percent Change
	(dollars in thousands)
Net sales	$	1,226,595	$	1,207,767	$	18,828	1.6	%
Segment operating profit	162,053		160,076		1,977		1.2

Activewear net sales increased as a result of our expansion into the teamwear and fanware space with the acquisition of GTM in 2016, growth in our core Champion brand outside of the mass merchant channel, increased licensed sports apparel sales in the college bookstore business, and growth across Activewear product categories online, partially offset by sales declines in Hanes activewear apparel and licensed sports apparel within the mass merchant channel.

Operating profit increased primarily as a result of increased sales volume and continued cost control offset, in part, by the impact of retailer bankruptcies and higher proportion of selling, general and administrative expenses at our recently acquired GTM business.

International

	Nine Months Ended
	September 30, 2017		October 1, 2016		Higher (Lower)		Percent Change
	(dollars in thousands)
Net sales	$	1,509,370	$	1,026,871	$	482,499	47.0	%
Segment operating profit	185,216		109,184		76,032		69.6

Net sales in the International segment were higher as a result of the following:

• Incremental net sales from the acquisitions of Hanes Australasia and Champion Europe in 2016; and

• Continued growth in Asia within our Activewear product category, primarily driven by Champion and Hanes sales growth.

Partially offset by:

• Declining hosiery sales and slower traffic at retail in certain European markets.

Operating profit increased primarily due to higher sales volume, coupled with cost synergies realized in our Hanes Europe Innerwear and Hanes Australasia businesses.

Other

	Nine Months Ended
	September 30, 2017		October 1, 2016		Higher (Lower)			Percent Change
	(dollars in thousands)
Net sales	$	222,015	$	264,445	$	(42,430	)	(16.0	)%
Segment operating profit	16,250		27,408		(11,158		)	(40.7	)

Other net sales were lower as a result of continued declines in hosiery sales in the U.S., slower traffic at our outlet stores and the planned exit from our legacy catalog business in 2016. Operating profit decreased as a result of lower sales volume, offset, in part, by continued cost control.

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Corporate

Corporate expenses included certain administrative costs and acquisition-related and integration charges. Acquisition-related and integration costs are expenses related directly to an acquisition and its integration into the organization. These costs include legal fees, consulting fees, bank fees, severance costs, certain purchase accounting items, facility closures, inventory write-offs, infrastructure (including information technology), and similar charges. Acquisition-related currency transactions represent the foreign exchange gain from financing activities related to the Champion Europe and Hanes Australasia acquisitions.

	Nine Months Ended
	September 30, 2017		October 1, 2016
	(dollars in thousands)
Acquisition-related and integration costs:
Hanes Europe Innerwear	$	38,528	$	59,919
Hanes Australasia	27,361		20,732
Champion Europe	8,096		7,550
Knights Apparel	6,885		15,623
Other acquisitions	433		3,466
Acquisition-related currency transactions	—		(15,639		)
Total acquisition-related and integration costs	$	81,303	$	91,651

Liquidity and Capital Resources

Trends and Uncertainties Affecting Liquidity

Our primary sources of liquidity are cash generated by operations and availability under our $1.0 billion revolving credit facility (the “Revolving Loan Facility”), our senior secured credit facility (the “Senior Secured Credit Facility”), our accounts receivable securitization facility (the “Accounts Receivable Securitization Facility”) and our international loan facilities.

At September 30, 2017, we had $784 million of borrowing availability under our Revolving Loan Facility (after taking into account outstanding letters of credit), $24 million borrowing availability under our Accounts Receivable Securitization Facility, $149 million of borrowing availability under our international loan facilities, which includes our European Revolving Loan Facility, our Australian Revolving Loan Facility and other international notes payable and debt facilities, and $400 million in cash and cash equivalents. We currently believe that our existing cash balances and cash generated by operations, typically in the second half of the year, together with our available credit capacity, will enable us to comply with the terms of our indebtedness and meet foreseeable liquidity requirements.

The following have impacted or may impact our liquidity:

• we have principal and interest obligations under our debt;

• we acquired Champion Europe in June 2016 and Hanes Australasia in July 2016 and we may pursue additional strategic business acquisitions in the future;

• the amount of contingent consideration we are required to pay in connection with the Champion Europe acquisition may be inconsistent with management’s expectations;

• we expect to continue to invest in efforts to improve operating efficiencies and lower costs;

• contributions to our pension plans;

• we may increase or decrease the portion of the current-year income of our foreign subsidiaries that we remit to the United States, which could significantly impact our effective income tax rate;

• our Board of Directors has authorized a regular quarterly dividend; and

• our Board of Directors has authorized share repurchases.

Dividends

In January, April and July of 2017, our Board of Directors declared a regular quarterly dividend of $0.15 per share, which were paid in March, June and September of 2017, respectively. On October 24, 2017, our Board of Directors declared a regular quarterly cash dividend of $0.15 per share to be paid on December 5, 2017 to stockholders of record at the close of business on November 14, 2017.

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Share Repurchase Program

In April 2016, our Board of Directors approved a new share repurchase program for up to 40 million shares to be repurchased in open market transactions, subject to market conditions, legal requirements and other factors. For the nine months endedSeptember 30, 2017, we entered into transactions to repurchase approximately 15 million shares at a weighted average repurchase price of $20.39 per share. The shares were repurchased at a total cost of $300 million. For the nine months endedOctober 1, 2016 we repurchased approximately 14 million shares under the previous share repurchase program at a weighted average purchase price of $26.65. The shares were repurchased at a total cost of $380 million. At September 30, 2017, the remaining repurchase authorization under the current share repurchase program totaled approximately 25 million shares. The program does not obligate us to acquire any particular amount of common stock and may be suspended or discontinued at any time at our discretion.

Cash Requirements for Our Business

We rely on our cash flows generated from operations and the borrowing capacity under our credit facilities to meet the cash requirements of our business. The primary cash requirements of our business are payments to vendors in the normal course of business, capital expenditures, maturities of debt and related interest payments, business acquisitions, contributions to our pension plans, repurchases of our stock and regular quarterly dividend payments. We believe we have sufficient cash and available borrowings for our foreseeable liquidity needs.

There have been no significant changes in the cash requirements for our business from those described in our Annual Report on Form 10-K for the year ended December 31, 2016.

Sources and Uses of Our Cash

The information presented below regarding the sources and uses of our cash flows for the nine months endedSeptember 30, 2017 and October 1, 2016 was derived from our condensed consolidated financial statements.

	Nine Months Ended
	September 30, 2017			October 1, 2016
	(dollars in thousands)
Operating activities	$	331,090		$	208,291
Investing activities	(16,259		)	(959,865		)
Financing activities	(367,598		)	879,925
Effect of changes in foreign currency exchange rates on cash	(7,433		)	2,693
Change in cash and cash equivalents	(60,200		)	131,044
Cash and cash equivalents at beginning of year	460,245			319,169
Cash and cash equivalents at end of period	$	400,045		$	450,213

Operating Activities

Our overall liquidity is primarily driven by our cash flow from operations, which is dependent on net income, as well as changes in our working capital. We typically use cash during the first half of the year and generate most of our cash flow in the second half of the year. As compared to prior year, the higher net cash provided by operating activities is due to strong working capital management, specifically related to increased accounts receivable collections, extension of our accounts payable terms and no voluntary pension contribution in the first nine months of 2017 compared to $40 million in the same period of 2016.

Investing Activities

The lower net cash used by investing activities is primarily the result of cash received from our dispositions of the Dunlop Flooring and Tontine Pillow businesses as well as our acquisitions of Champion Europe and Pacific Brands in the first nine months of 2016.

Financing Activities

The lower net cash from financing activities was primarily the result of lower borrowings on our loan facilities in the first nine months of 2017 and the issuance of our three Senior Notes and incurrence of debt under our Australia term loan facilities in 2016 to help fund the acquisitions of Champion Europe and Hanes Australasia.

29

Financing Arrangements

In March 2017, we amended the Accounts Receivable Securitization Facility. This amendment primarily extended the maturity date to March 2018.

In September 2017, we amended the European Revolving Loan Facility to extend the maturity date to September 2018.

As of September 30, 2017, we were in compliance with all financial covenants under our credit facilities. We expect to maintain compliance with these covenants for the foreseeable future, however economic conditions or the occurrence of events discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016 or other SEC filings could cause noncompliance.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements within the meaning of Item 303(a)(4) of SEC Regulation S-K.

Critical Accounting Policies and Estimates

We have chosen accounting policies that we believe are appropriate to accurately and fairly report our operating results and financial condition in conformity with U.S. GAAP. We apply these accounting policies in a consistent manner. Our significant accounting policies are discussed in Note 2, “Summary of Significant Accounting Policies,” to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016.

The application of critical accounting policies requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. These estimates and assumptions are based on historical and other factors believed to be reasonable under the circumstances. We evaluate these estimates and assumptions on an ongoing basis and may retain outside consultants to assist in our evaluation. If actual results ultimately differ from previous estimates, the revisions are included in results of operations in the period in which the actual amounts become known. The critical accounting policies that involve the most significant management judgments and estimates used in preparation of our financial statements, or are the most sensitive to change from outside factors, are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2016. There have been no material changes in these policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2016.

Recently Issued Accounting Pronouncements

For a summary of recently issued accounting pronouncements, see Note, “Recent Accounting Pronouncements” to our financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no significant changes in our market risk exposures from those described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2016.

Item 4. Controls and Procedures

As required by Exchange Act Rule 13a-15(b), our management, including our Chief Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Exchange Act Rule 13a-15(e), as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective.

In connection with the evaluation required by Exchange Act Rule 13a-15(d), our management, including our Chief Executive Officer and Principal Financial Officer, concluded that no changes in our internal control over financial reporting occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

30

PART II

Item 1. Legal Proceedings

Although we are subject to various claims and legal actions that occur from time to time in the ordinary course of our business, we are not party to any pending legal proceedings that we believe could have a material adverse effect on our business, results of operations, financial condition or cash flows.

Item 1A. Risk Factors

The risk factors that affect our business and financial results are discussed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. There are no material changes to the risk factors previously disclosed, nor have we identified any previously undisclosed risks that could materially adversely affect our business and financial results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

31

Item 6. Exhibits

Exhibit Number	Description
2.1	Scheme Implementation Deed, Dated April 27, 2016, between Hanesbrands Inc. and Pacific Brands Limited (incorporated by reference from Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 20, 2016).
3.1	Articles of Amendment and Restatement of Hanesbrands Inc. (incorporated by reference from Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 5, 2006).
3.2	Articles Supplementary (Junior Participating Preferred Stock, Series A) (incorporated by reference from Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 5, 2006).
3.3	Articles of Amendment to Articles of Amendment and Restatement of Hanesbrands Inc. (incorporated by reference from Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 28, 2015).
3.4	Articles Supplementary (Reclassifying Junior Participating Preferred Stock, Series A) (incorporated by reference from Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2015).
3.5	Amended and Restated Bylaws of Hanesbrands Inc. (incorporated by reference from Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 26, 2017).
31.1	Certification of Gerald W. Evans, Jr., Chief Executive Officer.
31.2	Certification of Richard D. Moss, Principal Financial Officer.
32.1	Section 1350 Certification of Gerald W. Evans, Jr., Chief Executive Officer.
32.2	Section 1350 Certification of Richard D. Moss, Principal Financial Officer.
101.INS XBRL	Instance Document
101.SCH XBRL	Taxonomy Extension Schema Document
101.CAL XBRL	Taxonomy Extension Calculation Linkbase Document
101.LAB XBRL	Taxonomy Extension Label Linkbase Document
101.PRE XBRL	Taxonomy Extension Presentation Linkbase Document
101.DEF XBRL	Taxonomy Extension Definition Linkbase Document

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HANESBRANDS INC.
By:	/s/ Richard D. Moss
	Richard D. Moss Duly Appointed Officer and Principal Financial Officer

Date: November 2, 2017

33

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Gerald W. Evans, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Hanesbrands Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Gerald W. Evans, Jr.

Gerald W. Evans, Jr.

Chief Executive Officer

Date: November 2, 2017

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Richard D. Moss, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Hanesbrands Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Richard D. Moss

Richard D. Moss

Principal Financial Officer

Date: November 2, 2017

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hanesbrands Inc. (“Hanesbrands”) on Form 10-Q for the fiscal quarter ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerald W. Evans, Jr., Chief Executive Officer of Hanesbrands, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Hanesbrands.

/s/ Gerald W. Evans, Jr.

Gerald W. Evans, Jr.

Chief Executive Officer

Date: November 2, 2017

The foregoing certification is being furnished to accompany Hanesbrands Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2017 (the “Report”) solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed as part of the Report or as a separate disclosure document and shall not be deemed incorporated by reference into any other filing of Hanesbrands Inc. that incorporates the Report by reference. A signed original of this written certification required by Section 906 has been provided to Hanesbrands Inc. and will be retained by Hanesbrands Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hanesbrands Inc. (“Hanesbrands”) on Form 10-Q for the fiscal quarter ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard D. Moss, Principal Financial Officer of Hanesbrands, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Hanesbrands.

/s/ Richard D. Moss

Richard D. Moss

Principal Financial Officer

Date: November 2, 2017

The foregoing certification is being furnished to accompany Hanesbrands Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2017 (the “Report”) solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed as part of the Report or as a separate disclosure document and shall not be deemed incorporated by reference into any other filing of Hanesbrands Inc. that incorporates the Report by reference. A signed original of this written certification required by Section 906 has been provided to Hanesbrands Inc. and will be retained by Hanesbrands Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 27, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	HBI
Entity Registrant Name	Hanesbrands Inc.
Entity Central Index Key	0001359841
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		364,584,181

XML

Condensed Consolidated Statements of Income (Unaudted) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Income Statement [Abstract]
Net sales	$ 1,799,270	$ 1,761,019	$ 4,826,235	$ 4,452,890
Cost of sales	1,120,813	1,111,653	2,962,345	2,788,977
Gross profit	678,457	649,366	1,863,890	1,663,913
Selling, general and administrative expenses	425,153	421,014	1,260,641	1,091,946
Operating profit	253,304	228,352	603,249	571,967
Other expenses	1,881	1,559	4,659	50,533
Interest expense, net	43,917	43,433	130,184	111,539
Income from continuing operations before income tax expense	207,506	183,360	468,406	409,895
Income tax expense	4,150	10,570	19,804	28,693
Income from continuing operations	203,356	172,790	448,602	381,202
Income (loss) from discontinued operations, net of tax	0	1,068	(2,097)	1,068
Net income	$ 203,356	$ 173,858	$ 446,505	$ 382,270
Earnings per share — basic:
Continuing operations	$ 0.56	$ 0.46	$ 1.22	$ 1.00
Discontinued operations	0.00	0.00	(0.01)	0.00
Net income	0.56	0.46	1.21	1.00
Earnings per share — diluted:
Continuing operations	0.55	0.45	1.21	0.99
Discontinued operations	0.00	0.00	(0.01)	0.00
Net income	$ 0.55	$ 0.45	$ 1.20	$ 0.99

XML

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract]
Net income	$ 203,356	$ 173,858	$ 446,505	$ 382,270
Other comprehensive income (loss), net of tax of $1,427, ($247), $7,870 and ($701), respectively	5,051	(2,713)	9,349	13,691
Comprehensive income	$ 208,407	$ 171,145	$ 455,854	$ 395,961

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract]
Tax on other comprehensive income	$ 1,427	$ (247)	$ 7,870	$ (701)

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 400,045	$ 460,245
Trade accounts receivable, net	1,009,188	836,924
Inventories	1,953,918	1,840,565
Other current assets	196,875	137,535
Current assets of discontinued operations	0	45,897
Total current assets	3,560,026	3,321,166
Property, net	624,602	692,464
Trademarks and other identifiable intangibles, net	1,371,007	1,285,458
Goodwill	1,141,942	1,098,540
Deferred tax assets	504,059	464,872
Other noncurrent assets	79,087	67,980
Total assets	7,280,723	6,930,480
Liabilities and Stockholders’ Equity
Accounts payable	852,671	761,647
Accrued liabilities	614,599	619,795
Notes payable	23,969	56,396
Accounts Receivable Securitization Facility	250,995	44,521
Current portion of long-term debt	154,395	133,843
Current liabilities of discontinued operations	0	9,466
Total current liabilities	1,896,629	1,625,668
Long-term debt	3,566,547	3,507,685
Pension and postretirement benefits	378,573	371,612
Other noncurrent liabilities	207,807	201,601
Total liabilities	6,049,556	5,706,566
Stockholders’ equity:
Preferred stock (50,000,000 authorized shares; $.01 par value) Issued and outstanding - None	0	0
Common stock (2,000,000,000 authorized shares; $.01 par value) Issued and outstanding - 364,571,559 and 378,687,052 respectively	3,646	3,787
Additional paid-in capital	267,675	260,002
Retained earnings	1,386,488	1,396,116
Accumulated other comprehensive loss	(426,642)	(435,991)
Total stockholders’ equity	1,231,167	1,223,914
Total liabilities and stockholders’ equity	$ 7,280,723	$ 6,930,480

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	364,571,559	378,687,052
Common stock, shares outstanding	364,571,559	378,687,052

XML

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Operating activities:
Net income	$ 446,505	$ 382,270
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of long-lived assets	89,762	73,715
Write off of Deferred Debt Issuance Cost	2,153	12,667
Charges incurred for amendments of credit facilities	0	34,624
Amortization of debt issuance costs	7,943	6,401
Stock compensation expense	6,351	16,292
Deferred taxes and other	(12,744)	(18,938)
Changes in assets and liabilities, net of acquisition of businesses:
Accounts receivable	(147,933)	(198,217)
Inventories	(74,945)	4,557
Other assets	(42,664)	(6,167)
Accounts payable	71,264	(80,589)
Accrued pension and postretirement benefits	15,021	(34,419)
Accrued liabilities and other	(29,623)	16,095
Net cash from operating activities	331,090	208,291
Investing activities:
Purchases of property, plant and equipment	(60,418)	(65,439)
Proceeds from sales of assets	4,398	68,701
Acquisition of businesses, net of cash acquired	(524)	(963,127)
Disposition of businesses	40,285	0
Net cash from investing activities	(16,259)	(959,865)
Financing activities:
Borrowings on notes payable	212,804	854,915
Repayments on notes payable	(249,708)	(943,893)
Borrowings on Accounts Receivable Securitization Facility	342,315	194,549
Repayments on Accounts Receivable Securitization Facility	(135,841)	(145,638)
Borrowings on Revolving Loan Facilities	2,957,799	2,995,442
Repayments on Revolving Loan Facilities	(2,738,000)	(2,992,000)
Borrowings on Senior Notes	0	2,359,347
Repayments on Senior Notes	0	(1,000,000)
Borrowings on Term Loan Facilities	0	301,272
Repayments on Term Loan Facilities	(201,281)	(154,670)
Borrowings on International Debt	0	8,368
Repayments on International Debt	(44,073)	(11,186)
Share repurchases	(299,919)	(379,901)
Cash dividends paid	(165,211)	(125,798)
Payments to amend and refinance credit facilities	(559)	(79,492)
Payment of contingent consideration	(41,250)	0
Taxes paid related to net shares settlement of equity awards	(8,075)	(2,919)
Other	3,401	1,529
Net cash from financing activities	(367,598)	879,925
Effect of changes in foreign exchange rates on cash	(7,433)	2,693
Change in cash and cash equivalents	(60,200)	131,044
Cash and cash equivalents at beginning of year	460,245	319,169
Cash and cash equivalents at end of period	$ 400,045	$ 450,213

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair statement of the results of operations, financial condition and cash flows of Hanesbrands Inc., a Maryland corporation, and its consolidated subsidiaries (the “Company” or “Hanesbrands”). In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the results of operations, financial condition and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. Three subsidiaries of the Company close on the calendar month-end, which is less than a week different than the Company’s consolidated quarter end. The difference in reporting of financial information for these subsidiaries did not have a material impact on the Company’s financial condition, results of operations or cash flows.

As a result of further policy harmonization related to acquired businesses, certain prior year amounts in the condensed consolidated financial statements, none of which are material, have been reclassified to conform with the current year presentation. The reclassification on the Condensed Consolidated Balance Sheet is between the “Trade accounts receivable, net” line and the “Accrued liabilities” line of $22,746 as of December 31, 2016. The reclassification on the Condensed Consolidated Statement of Cash Flow is between the “Accounts Receivable” and the “Accrued liabilities and other” line of $2,744 for the nine months ended October 1, 2016. This reclassification had no impact on the Company’s results of operations.

These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K. The year end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

XML

Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Inventory

In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory”, which requires inventory to be recorded at the lower of cost or net realizable value. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows.

Hedge Accounting

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, which clarifies that a change in the counterparty to a derivative contract, in and of itself, does not require the dedesignation of a hedging relationship. The new standard, which can be adopted prospectively or on a modified retrospective basis, was effective for the Company in the first quarter of 2017. Also in March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”, which clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The new standard will be effective for the Company in the first quarter of 2018 and can be applied using a modified retrospective or full retrospective method. The Company has established an implementation team consisting of finance, accounting and front-end business partners to analyze the impact of the guidance across all of its revenue sources. The Company has evaluated the new standard against its existing accounting policies and practices, including reviewing standard purchase orders, invoices, shipping terms, conducting questionnaires with our global team and reviewing contracts with customers. The Company has not identified any information that would indicate that the new guidance will have a material impact on the Company’s financial statements. The Company expects to have enhanced disclosures related to disaggregation of revenue sources and accounting policies. The Company expects to adopt the new standard in the first quarter of 2018 using the modified retrospective transition method.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. Issues addressed in the new guidance that are relevant to the Company include debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and beneficial interests in securitization transactions. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s cash flows.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The new rules eliminate the exception for an intra-entity transfer of an asset other than inventory, which aligns the recognition of income tax consequences for such transfers. The new rules require the recognition of current and deferred income taxes resulting from these transfers when the transfer occurs rather than when it is sold to an external party. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Definition of a Business

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The new rules provide for the application of a screen test to consider whether substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If the screen test determines this to be true, the set is not a business. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Compensation Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. The new rules require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Stock Compensation

In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The new rules provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new rules, an entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award immediately before the original award is modified. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Lease Accounting

In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations and cash flows.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The new rules expand the hedging strategies that qualify for hedge accounting, including contractually-specified price components of a commodity purchase or sale, hedges of the benchmark rate component of the contractual coupon cash flows of fixed-rate assets and liabilities, hedges of the portion of a closed portfolio of prepayable assets and partial-term hedges of fixed-rate assets and liabilities. The new rules also allow additional time to complete hedge effectiveness testing and allow qualitative assessments subsequent to initial quantitative tests if there is a supportable expectation that the hedge will remain highly effective. The new rules will be effective for the Company in the first quarter of 2019, with early adoption permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The new rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2020. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.

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Acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions

Acquisitions

Hanes Australasia

On July 14, 2016, the Company acquired 100% of the outstanding shares of Pacific Brands Limited (“Hanes Australasia”) for a total purchase price of AUD$1,049,360 ($800,871). US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand, a portion of the net proceeds from the 3.5% Senior Notes issued in June 2016 and borrowings under the Australian Term A-1 Loan Facility and the Australian Term A-2 Loan Facility.

The acquired assets and assumed liabilities at the date of acquisition (July 14, 2016) include the following:

Cash and cash equivalents	$	54,294
Accounts receivable, net	36,019
Inventories	104,806
Other current assets	16,588
Current assets of discontinued operations	50,839
Property, net	34,835
Trademarks and other identifiable intangibles	506,170
Deferred tax assets and other noncurrent assets	23,687
Total assets acquired	827,238
Accounts payable	89,309
Accrued liabilities and other	24,912
Current liabilities of discontinued operations	14,564
Long-term debt	41,976
Deferred tax liabilities and other noncurrent liabilities	16,320
Total liabilities assumed	187,081
Net assets acquired	640,157
Goodwill	160,714
Purchase price	$	800,871

Since July 14, 2016, goodwill decreased by $25,434 as a result of measurement period adjustments, primarily related to the valuation adjustments for the Dunlop Flooring and Tontine Pillow businesses and completion of deferred tax balances. The purchase price allocation was finalized in the third quarter of 2017.

Champion Europe

On June 30, 2016, the Company acquired 100% of Champion Europe S.p.A. (“Champion Europe”), which owns the trademark for the Champion brand in Europe, the Middle East and Africa, from certain individual shareholders in an all-cash transaction valued at €220,751 ($245,554) on an enterprise value basis, less working capital adjustments as defined in the purchase agreement, which included €40,700 ($45,277) in estimated contingent consideration. US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand and a portion of the net proceeds from the 3.5% Senior Notes issued in June 2016.

The estimated contingent consideration is included in the “Accrued liabilities” line in the accompanying Condensed Consolidated Balance Sheet and is based on 10 times Champion Europe’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) in excess of €18,600, calculated as defined by the purchase agreement, for the calendar year 2016 and is payable in 2017. The contingent consideration is required to be revalued each reporting period until paid. At September 30, 2017, the contingent consideration payment was pending finalization of Champion Europe’s calendar year 2016 EBITDA calculation in accordance with the purchase agreement. On April 28, 2017, an initial payment of €37,820 ($41,250) was made to the sellers towards the contingent consideration liability, which represents the mutually agreed portion of the contingent consideration. Management continues to evaluate and discuss the proposed adjustments to the EBITDA calculation with the sellers and believes the remaining accrual is consistent with management’s expectations for any additional amount that will be due in connection with the contingent consideration. In addition to the initial payment, additional contingent consideration payments could total up to approximately €46,600.

The acquired assets, contingent consideration and assumed liabilities at the date of acquisition (June 30, 2016) include the following:

Cash and cash equivalents	$	14,581
Trade accounts receivable, net	27,926
Inventories	53,816
Other current assets	5,976
Property, net	24,605
Trademarks and other identifiable intangibles	135,277
Deferred tax assets and other noncurrent assets	3,777
Total assets acquired	265,958
Accounts payable	66,594
Accrued liabilities and other (including contingent consideration)	60,887
Notes payable	27,748
Deferred tax liabilities and other noncurrent liabilities	20,282
Total liabilities assumed and contingent consideration	175,511
Net assets acquired	90,447
Goodwill	109,830
Initial consideration paid	200,277
Estimated contingent consideration	45,277
Total purchase price	$	245,554

Since June 30, 2016, goodwill increased by $1,665 as a result of measurement period adjustments primarily to working capital. The purchase price allocation was finalized in the second quarter of 2017.

Consolidated Pro Forma Results

Consolidated unaudited pro forma results of operations for the Company are presented below assuming that the 2016 acquisitions of Hanes Australasia and Champion Europe had occurred on January 4, 2015. Pro forma operating results for the quarter and nine months ended October 1, 2016 exclude expenses totaling $751 and $6,187 respectively, for acquisition-related adjustments primarily related to inventory and stock compensation.

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales	$	1,799,270	$	1,780,530	$	4,826,235	$	4,859,619
Net income from continuing operations	203,356		172,040		448,602		448,589
Earnings per share from continuing operations:
Basic	$	0.56	$	0.45	$	1.22	$	1.17
Diluted	0.55		0.45		1.21		1.16

Subsequent Event

On October 13, 2017, the Company acquired 100% of Alternative Apparel, Inc. (“Alternative Apparel”) from Rosewood Capital V, L.P. and certain individual shareholders in an all-cash transaction valued at approximately $60,000 on an enterprise value basis. Alternative Apparel sells the Alternative brand better basics T-shirts, fleece and other tops and bottoms. Alternative is a lifestyle brand known for its comfort, style and social responsibility. The Company funded the acquisition with cash on hand and short term borrowing under the Revolving Loan Facility. The Company believes this acquisition will create growth opportunities by supporting its Activewear growth strategy by expanding its market and channel penetration, including online, supported by the Company’s global low-cost supply chain and manufacturing network. Due to the immaterial nature of this acquisition, the Company has not provided additional disclosures herein.

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Discontinued Operations

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

As part of the Company’s acquisition of Hanes Australasia, the Company acquired Hanes Australasia’s legacy Dunlop Flooring and Tontine Pillow businesses. The Company concluded that these businesses were not a strategic fit; therefore, the decision was made to divest of the businesses.

In February 2017, the Company sold its Dunlop Flooring business for AUD$34,564 ($26,219) in net cash proceeds at the time of sale, with an additional AUD$1,334 ($1,012) of proceeds received in April 2017 related to a working capital adjustment, resulting in a pre-tax loss of AUD$2,715 ($2,083). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Dunlop Flooring business was reported as part of discontinued operations since the date of acquisition.

In March 2017, the Company sold its Tontine Pillow business for AUD$13,500 ($10,363) in net cash proceeds at the time of sale. A working capital adjustment of AUD$966 ($742) was paid to the buyer in April 2017, resulting in a net pre-tax gain of AUD$2,415 ($1,856). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Tontine Pillow business was reported as part of discontinued operations since the date of acquisition.

The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows:

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Net sales	$	—	$	15,587	$	6,865		$	15,587
Cost of sales	—		9,996		4,507			9,996
Gross profit	—		5,591		2,358			5,591
Selling, general and administrative expenses	—		3,570		3,729			3,570
Operating profit (loss)	—		2,021		(1,371		)	2,021
Other expenses	—		495		303			495
Net loss on disposal of businesses	—		—		242			—
Income (loss) from discontinued operations before income tax expense	—		1,526		(1,916		)	1,526
Income tax expense	—		458		181			458
Net income (loss) from discontinued operations, net of tax	$	—	$	1,068	$	(2,097	)	$	1,068

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Stockholders' Equity

Stockholders’ Equity

Basic earnings per share (“EPS”) was computed by dividing net income by the number of weighted average shares of common stock outstanding. Diluted EPS was calculated to give effect to all potentially dilutive shares of common stock using the treasury stock method.

The reconciliation of basic to diluted weighted average shares outstanding is as follows:

	Quarter Ended		Nine Months Ended
	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
Basic weighted average shares outstanding	366,083	379,368	368,885	382,235
Effect of potentially dilutive securities:
Stock options	1,541	1,890	1,591	2,016
Restricted stock units	535	1,293	470	1,210
Employee stock purchase plan and other	1	7	1	17
Diluted weighted average shares outstanding	368,160	382,558	370,947	385,478

There were 28 and 58 restricted stock units excluded from the diluted earnings per share calculation because their effect would be anti-dilutive for the quarter and nine months endedSeptember 30, 2017, respectively. For the quarter and nine months endedOctober 1, 2016, there were 42 restricted stock units excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. For the quarters and nine months endedSeptember 30, 2017 and October 1, 2016, no options were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive.

For the quarters ended September 30, 2017 and October 1, 2016, the Company declared cash dividends of $0.15 and $0.11 per share, respectively. For the nine months endedSeptember 30, 2017 and October 1, 2016, the Company declared cash dividends of $0.45 and $0.33 per share, respectively.

On October 24, 2017, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share on outstanding shares of common stock to be paid on December 5, 2017 to stockholders of record at the close of business on November 14, 2017.

On April 27, 2016, the Company’s Board of Directors approved a new share repurchase program for up to 40,000 shares to be repurchased in open market transactions, subject to market conditions, legal requirements and other factors. The Company did not repurchase any shares during the quarters ended September 30, 2017 and October 1, 2016. For the nine months endedSeptember 30, 2017, the Company entered into transactions to repurchase 14,696 shares at a weighted average repurchase price of $20.39 per share. The shares were repurchased at a total cost of $299,919. For the nine months endedOctober 1, 2016, the Company repurchased 14,243 shares under the previous share repurchase program at a weighted average purchase price of $26.65 per share. The shares were repurchased at a total cost of $379,901. At September 30, 2017, the remaining repurchase authorization totaled 25,304 shares. The program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

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Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consisted of the following:

	September 30, 2017		December 31, 2016
Raw materials	$	130,567	$	131,228
Work in process	201,729		185,066
Finished goods	1,621,622		1,524,271
	$	1,953,918	$	1,840,565

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Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt

Debt

Debt consisted of the following:

	Interest Rate as of September 30, 2017	Principal Amount				Maturity Date
		September 30, 2017		December 31, 2016
Senior Secured Credit Facility:
Revolving Loan Facility	2.99%	$	211,000	$	—	April 2020
Term Loan A	2.95%	605,625		655,469		April 2020
Term Loan B	3.74%	318,625		318,625		April 2022
Australian Term A-1	3.15%	156,974		143,544		July 2019
Australian Term A-2	—%	—		143,544		July 2021
4.875% Senior Notes	4.88%	900,000		900,000		May 2026
4.625% Senior Notes	4.63%	900,000		900,000		May 2024
3.5% Senior Notes	3.50%	587,268		520,617		June 2024
European Revolving Loan Facility	1.50%	79,868		62,474		September 2018
Accounts Receivable Securitization Facility	2.12%	250,995		44,521		March 2018
Other International Debt	Various	2,027		43,789		Various
		4,012,382		3,732,583
Less long-term debt issuance cost		40,445		46,534
Less current maturities		405,390		178,364
		$	3,566,547	$	3,507,685

As of September 30, 2017, the Company had $784,117 of borrowing availability under the $1,000,000 Revolving Loan Facility after taking into account outstanding borrowings and $4,883 of standby and trade letters of credit issued and outstanding under this facility. The Company also had $24,005 of borrowing availability under the Accounts Receivable Securitization Facility, $37,586 of borrowing availability under the European Revolving Loan Facility, $51,016 of borrowing availability under the Australian Revolving Loan Facility and $60,648 of borrowing availability under other international lines of credit after taking into account outstanding borrowings and letters of credit outstanding under the applicable facility.

In March 2017, the Company amended the Accounts Receivable Securitization Facility that it entered into in November 2007 (the “Accounts Receivable Securitization Facility”). This amendment primarily extended the maturity date to March 2018.

In September 2017, the Company amended the European Revolving Loan Facility primarily to extend the maturity date to September 2018.

As of September 30, 2017, the Company was in compliance with all financial covenants under its credit facilities.

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss (“AOCI”) are as follows:

	Cumulative Translation Adjustment			Hedges			Defined Benefit Plans			Income Taxes			Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	(78,059	)	$	13,772		$	(606,583	)	$	234,879		$	(435,991	)
Amounts reclassified from accumulated other comprehensive loss	—			(3,348		)	14,440			(4,611		)	6,481
Current-period other comprehensive income (loss) activity	34,047			(43,660		)	—			12,481			2,868
Balance at September 30, 2017	$	(44,012	)	$	(33,236	)	$	(592,143	)	$	242,749		$	(426,642	)

The Company had the following reclassifications out of AOCI:

Component of AOCI	Location of Reclassification into Income	Amount of Reclassification from AOCI						Amount of Reclassification from AOCI
		Quarter Ended						Nine Months Ended
		September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Gain on foreign exchange contracts	Cost of sales	$	414		$	715		$	3,348		$	4,424
	Income tax	191			(278		)	(934		)	(1,721		)
	Net of tax	605			437			2,414			2,703
Amortization of deferred actuarial loss and prior service cost	Selling, general and administrative expenses	(4,862		)	(4,307		)	(14,440		)	(12,843		)
	Income tax	1,867			1,675			5,545			4,996
	Net of tax	(2,995		)	(2,632		)	(8,895		)	(7,847		)
Total reclassifications		$	(2,390	)	$	(2,195	)	$	(6,481	)	$	(5,144	)

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Financial Instruments and Risk Management

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Financial Instruments and Risk Management

Financial Instruments and Risk Management

The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. As of September 30, 2017, the notional U.S. dollar equivalent of commitments to sell foreign currencies within the Company’s derivative portfolio was $588,866, primarily consisting of contracts hedging exposures to the Australian dollar, Euro, Canadian dollar, Mexican peso, and the New Zealand dollar.

Fair Values of Derivative Instruments

The fair values of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:

	Balance Sheet Location	Fair Value
		September 30, 2017			December 31, 2016
Hedges	Other current assets	$	907		$	16,729
Non-hedges	Other current assets	541			4,363
Total derivative assets		1,448			21,092
Hedges	Accrued liabilities	(21,169		)	(207		)
Non-hedges	Accrued liabilities	(4,503		)	(172		)
Total derivative liabilities		(25,672		)	(379		)
Net derivative (liability) asset		$	(24,224	)	$	20,713

Cash Flow Hedges

The Company uses forward foreign exchange contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates.

The Company expects to reclassify into earnings during the next 12 months a net loss from AOCI of approximately $16,432.

The changes in fair value of derivatives excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Income.

The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows:

	Amount of Loss Recognized in AOCI (Effective Portion)						Amount of Loss Recognized in AOCI (Effective Portion)
	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Foreign exchange contracts	$	(17,379	)	$	(3,594	)	$	(43,660	)	$	(7,131	)

	Location of Gain Reclassified from AOCI into Income (Effective Portion)	Amount of Gain Reclassified from AOCI into Income (Effective Portion)				Amount of Gain Reclassified from AOCI into Income (Effective Portion)
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Foreign exchange contracts	Cost of sales	$	414	$	715	$	3,348	$	4,424

Derivative Contracts Not Designated As Hedges

The Company uses foreign exchange derivative contracts as economic hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany lending transactions denominated in foreign currencies. These contracts are not designated as hedges under the accounting standards and are recorded at fair value in the Condensed Consolidated Balance Sheet. Any gains or losses resulting from changes in fair value are recognized directly into earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities.

The effect of derivative contracts not designated as hedges on the Condensed Consolidated Statements of Income is as follows:

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain Recognized in Income				Amount of Gain (Loss) Recognized in Income
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Foreign exchange contracts	Selling, general and administrative expenses	$	3,277	$	7,694	$	(1,398	)	$	7,970

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Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

As of September 30, 2017, the Company held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis. These consisted of the Company’s derivative instruments related to foreign exchange rates, deferred compensation plan liabilities and contingent consideration resulting from the Champion Europe acquisition. The fair values of foreign currency derivatives are determined using the cash flows of the foreign exchange contract, discount rates to account for the passage of time and current foreign exchange market data and are categorized as Level 2. The fair value of deferred compensation plans is based on readily available current market data and is categorized as Level 2. The fair value of the contingent consideration obligation was determined by applying a multiple of 10 times Champion Europe’s EBITDA for calendar year 2016 in excess of €18,600, as defined per the purchase agreement, as further described in Note 3 to the Company’s condensed consolidated financial statements, and is categorized as Level 3. An initial payment of €37,820 was made on April 28, 2017 to the sellers, which represents the mutually agreed portion of the contingent consideration. The remaining contingent consideration obligation will be revalued each reporting period until the related contingencies are resolved, with any adjustments to the fair value recognized in earnings. The Company’s defined benefit pension plan investments are not required to be measured at fair value on a recurring basis.

There were no changes during the quarter ended September 30, 2017 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. There were no transfers into or out of Level 1, Level 2 or Level 3 during the quarter ended September 30, 2017. As of and during the quarter and nine months endedSeptember 30, 2017, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis.

The following tables set forth, by level within the fair value hierarchy, the Company’s financial assets and liabilities accounted for at fair value on a recurring basis.

	Assets (Liabilities) at Fair Value as of September 30, 2017
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	1,448		$	—	$	1,448		$	—
Foreign exchange derivative contracts	(25,672		)	—		(25,672		)	—
	(24,224		)	—		(24,224		)	—
Champion Europe contingent consideration	(3,383		)	—		—			(3,383		)
Deferred compensation plan liability	(53,237		)	—		(53,237		)	—
Total	$	(80,844	)	$	—	$	(77,461	)	$	(3,383	)

	Assets (Liabilities) at Fair Value as of December 31, 2016
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	21,092		$	—	$	21,092		$	—
Foreign exchange derivative contracts	(379		)	—		(379		)	—
	20,713			—		20,713			—
Champion Europe contingent consideration	(42,378		)	—		—			(42,378		)
Deferred compensation plan liability	(51,868		)	—		(51,868		)	—
Total	$	(73,533	)	$	—	$	(31,155	)	$	(42,378	)

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable and accounts payable approximated fair value as of September 30, 2017 and December 31, 2016. The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $23,998 and $18,726 as of September 30, 2017 and December 31, 2016, respectively. The fair value of debt, which is classified as a Level 2 liability, was $4,206,792 and $3,729,270 as of September 30, 2017 and December 31, 2016, respectively. Debt had a carrying value of $4,012,382 and $3,732,583 as of September 30, 2017 and December 31, 2016, respectively. The fair values were estimated using quoted market prices as provided in secondary markets, which consider the Company’s credit risk and market related conditions. The carrying amounts of the Company’s notes payable, which is classified as a Level 2 liability, approximated fair value as of September 30, 2017 and December 31, 2016, primarily due to the short-term nature of these instruments.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective income tax rate for continuing operations was 2% and 6% for the quarters ended September 30, 2017 and October 1, 2016, respectively. The Company’s effective income tax rate for continuing operations was 4% and 7% for the nine months endedSeptember 30, 2017 and October 1, 2016, respectively. The lower effective income tax rate for the quarter and nine months endedSeptember 30, 2017 compared to the quarter and nine months endedOctober 1, 2016 was primarily due to favorable adjustments resulting from the finalization of the prior year federal tax return, resulting in the recognition of previously unrecognized foreign tax credits, recognized discretely in the period ending September 30, 2017. Additionally, there was a lower proportion of earnings attributed to domestic subsidiaries, which are taxed at higher rates than foreign subsidiaries, for the nine months ending September 30, 2017 as compared to the nine months ending October 1, 2016.

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Business Segment Information

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Business Segment Information

Business Segment Information

In the first quarter of 2017, the Company realigned its reporting segments to reflect the new model under which the business will be managed and results will be reviewed by the chief executive officer, who is the Company’s chief operating decision maker. The former Direct to Consumer segment, which consisted of the Company’s U.S. value-based (“outlet”) stores, legacy catalog business and U.S. retail Internet operations, was eliminated. The Company’s U.S. retail Internet operations, which sells products directly to consumers, is now reported in the respective Innerwear and Activewear segments. Other consists of the Company’s U.S. value-based (“outlet”) stores, U.S. hosiery business (previously reported in the Innerwear segment) and legacy catalog operations. Prior year segment sales and operating profit results have been revised to conform to the current year presentation.

The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms.

The types of products and services from which each reportable segment derives its revenues are as follows:

• Innerwear sells basic branded products that are replenishment in nature under the product categories of men’s underwear, panties, children’s underwear, socks and intimate apparel, which includes bras and shapewear.

• Activewear sells basic branded products that are primarily seasonal in nature under the product categories of branded printwear and retail activewear, as well as licensed logo apparel in collegiate bookstores, mass retail and other channels.

• International primarily relates to the Europe, Australia, Asia, Latin America and Canada geographic locations that sell products that span across the Innerwear and Activewear reportable segments.

The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, acquisition-related and integration charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2016.

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales:
Innerwear	$	644,059	$	679,096	$	1,868,255	$	1,953,807
Activewear	519,496		516,713		1,226,595		1,207,767
International	556,730		478,122		1,509,370		1,026,871
Other	78,985		87,088		222,015		264,445
Total net sales	$	1,799,270	$	1,761,019	$	4,826,235	$	4,452,890

	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Segment operating profit:
Innerwear	$	141,002		$	147,902		$	407,982		$	435,660
Activewear	79,015			72,962			162,053			160,076
International	76,414			61,312			185,216			109,184
Other	10,162			9,199			16,250			27,408
Total segment operating profit	306,593			291,375			771,501			732,328
Items not included in segment operating profit:
General corporate expenses	(26,136		)	(14,776		)	(63,354		)	(54,798		)
Acquisition-related and integration charges	(16,874		)	(42,587		)	(81,303		)	(91,651		)
Amortization of intangibles	(10,279		)	(5,660		)	(23,595		)	(13,912		)
Total operating profit	253,304			228,352			603,249			571,967
Other expenses	(1,881		)	(1,559		)	(4,659		)	(50,533		)
Interest expense, net	(43,917		)	(43,433		)	(130,184		)	(111,539		)
Income from continuing operations before income tax expense	$	207,506		$	183,360		$	468,406		$	409,895

For the quarter endedSeptember 30, 2017, the Company incurred acquisition-related and integration charges of $16,874, of which $2,230 is reported in the “Cost of sales” line and $14,644 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter endedOctober 1, 2016, the Company incurred acquisition-related and integration charges of $42,587, of which $13,563 is reported in the “Cost of sales” line and $29,024 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income.

For the nine months endedSeptember 30, 2017, the Company incurred acquisition-related and integration charges of $81,303, of which $21,989 is reported in the “Cost of sales” line and $59,314 is reported in the “Selling, general and administrative expenses” line. For the nine months endedOctober 1, 2016, the Company incurred acquisition-related and integration charges of $138,942, of which $27,732 is reported in the “Cost of sales” line, $63,919 is reported in the “Selling, general and administrative expenses” line and $47,291 is reported in the “Other expenses” line in the Condensed Consolidated Statement of Income.

As part of the Hanes Europe Innerwear acquisition strategy, in 2015 the Company identified management and administrative positions that were considered non-essential and/or duplicative that have or will be eliminated. As of December 31, 2016, the Company had accrued approximately $32,542 for expected benefit payments related to employee termination and other benefits for affected employees. During the nine months ended September 30, 2017, there were approximately $9,836 of benefit payments and foreign currency adjustments, resulting in an accrual of $22,706, of which, $10,905 and $11,801, is included in the “Accrued liabilities” and “Other noncurrent liabilities” lines of the Condensed Consolidated Balance Sheet, respectively.

In the first quarter of 2017, the Company approved an action to resize its U.S. corporate office workforce through separation programs affecting employees primarily in the Innerwear and Activewear segments. As of April 1, 2017, the Company accrued approximately $10,145 for employee termination and other benefits in accordance with expected benefit payments, with the majority of charges reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2017, there were approximately $8,477 of benefit payments and an additional accrual of $4,653, resulting in an ending accrual of $6,321 included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheet.

The Company closed its Nanjing, China textile plant in the first quarter of 2017 as part of a plan to realign its Asia textile production in order to better support its global commercial footprint, which has evolved over the past 10 years through major acquisitions in the United States, Europe and Australia. As of April 1, 2017, the Company accrued approximately $8,534 for employee termination and other benefits in accordance with expected benefit payments for employees. The charges, along with other facility exit costs of $2,831, were reflected in the “Cost of sales” line of the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2017, there were approximately $8,057 of benefit payments and foreign currency adjustments, resulting in an accrual of $477, which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheet. As of September 30, 2017, the Nanjing, China textile plant, valued at $65,570, was classified as assets held for sale and reported within the “Other current assets” line of the Condensed Consolidated Balance Sheet.

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Hanes Australasia

Business Acquisition [Line Items]

Schedule of acquired assets and liabilities assumed

The acquired assets and assumed liabilities at the date of acquisition (July 14, 2016) include the following:

Cash and cash equivalents	$	54,294
Accounts receivable, net	36,019
Inventories	104,806
Other current assets	16,588
Current assets of discontinued operations	50,839
Property, net	34,835
Trademarks and other identifiable intangibles	506,170
Deferred tax assets and other noncurrent assets	23,687
Total assets acquired	827,238
Accounts payable	89,309
Accrued liabilities and other	24,912
Current liabilities of discontinued operations	14,564
Long-term debt	41,976
Deferred tax liabilities and other noncurrent liabilities	16,320
Total liabilities assumed	187,081
Net assets acquired	640,157
Goodwill	160,714
Purchase price	$	800,871

Champion Europe

Business Acquisition [Line Items]

Schedule of acquired assets and liabilities assumed

Cash and cash equivalents	$	14,581
Trade accounts receivable, net	27,926
Inventories	53,816
Other current assets	5,976
Property, net	24,605
Trademarks and other identifiable intangibles	135,277
Deferred tax assets and other noncurrent assets	3,777
Total assets acquired	265,958
Accounts payable	66,594
Accrued liabilities and other (including contingent consideration)	60,887
Notes payable	27,748
Deferred tax liabilities and other noncurrent liabilities	20,282
Total liabilities assumed and contingent consideration	175,511
Net assets acquired	90,447
Goodwill	109,830
Initial consideration paid	200,277
Estimated contingent consideration	45,277
Total purchase price	$	245,554

Unaudited pro forma results of operations

Consolidated unaudited pro forma results of operations for the Company are presented below assuming that the 2016 acquisitions of Hanes Australasia and Champion Europe had occurred on January 4, 2015. Pro forma operating results for the quarter and nine months ended October 1, 2016 exclude expenses totaling $751 and $6,187 respectively, for acquisition-related adjustments primarily related to inventory and stock compensation.

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales	$	1,799,270	$	1,780,530	$	4,826,235	$	4,859,619
Net income from continuing operations	203,356		172,040		448,602		448,589
Earnings per share from continuing operations:
Basic	$	0.56	$	0.45	$	1.22	$	1.17
Diluted	0.55		0.45		1.21		1.16

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2017

Tontine Pillow and Dunlop Flooring [Member] | Discontinued Operations [Member]

Income Statement and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued operations

The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows:

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Net sales	$	—	$	15,587	$	6,865		$	15,587
Cost of sales	—		9,996		4,507			9,996
Gross profit	—		5,591		2,358			5,591
Selling, general and administrative expenses	—		3,570		3,729			3,570
Operating profit (loss)	—		2,021		(1,371		)	2,021
Other expenses	—		495		303			495
Net loss on disposal of businesses	—		—		242			—
Income (loss) from discontinued operations before income tax expense	—		1,526		(1,916		)	1,526
Income tax expense	—		458		181			458
Net income (loss) from discontinued operations, net of tax	$	—	$	1,068	$	(2,097	)	$	1,068

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Reconciliation of Basic to Diluted Weighted Average Shares

The reconciliation of basic to diluted weighted average shares outstanding is as follows:

	Quarter Ended		Nine Months Ended
	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
Basic weighted average shares outstanding	366,083	379,368	368,885	382,235
Effect of potentially dilutive securities:
Stock options	1,541	1,890	1,591	2,016
Restricted stock units	535	1,293	470	1,210
Employee stock purchase plan and other	1	7	1	17
Diluted weighted average shares outstanding	368,160	382,558	370,947	385,478

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Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following:

	September 30, 2017		December 31, 2016
Raw materials	$	130,567	$	131,228
Work in process	201,729		185,066
Finished goods	1,621,622		1,524,271
	$	1,953,918	$	1,840,565

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Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt

Debt consisted of the following:

	Interest Rate as of September 30, 2017	Principal Amount				Maturity Date
		September 30, 2017		December 31, 2016
Senior Secured Credit Facility:
Revolving Loan Facility	2.99%	$	211,000	$	—	April 2020
Term Loan A	2.95%	605,625		655,469		April 2020
Term Loan B	3.74%	318,625		318,625		April 2022
Australian Term A-1	3.15%	156,974		143,544		July 2019
Australian Term A-2	—%	—		143,544		July 2021
4.875% Senior Notes	4.88%	900,000		900,000		May 2026
4.625% Senior Notes	4.63%	900,000		900,000		May 2024
3.5% Senior Notes	3.50%	587,268		520,617		June 2024
European Revolving Loan Facility	1.50%	79,868		62,474		September 2018
Accounts Receivable Securitization Facility	2.12%	250,995		44,521		March 2018
Other International Debt	Various	2,027		43,789		Various
		4,012,382		3,732,583
Less long-term debt issuance cost		40,445		46,534
Less current maturities		405,390		178,364
		$	3,566,547	$	3,507,685

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss (“AOCI”) are as follows:

	Cumulative Translation Adjustment			Hedges			Defined Benefit Plans			Income Taxes			Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	(78,059	)	$	13,772		$	(606,583	)	$	234,879		$	(435,991	)
Amounts reclassified from accumulated other comprehensive loss	—			(3,348		)	14,440			(4,611		)	6,481
Current-period other comprehensive income (loss) activity	34,047			(43,660		)	—			12,481			2,868
Balance at September 30, 2017	$	(44,012	)	$	(33,236	)	$	(592,143	)	$	242,749		$	(426,642	)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss

The Company had the following reclassifications out of AOCI:

Component of AOCI	Location of Reclassification into Income	Amount of Reclassification from AOCI						Amount of Reclassification from AOCI
		Quarter Ended						Nine Months Ended
		September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Gain on foreign exchange contracts	Cost of sales	$	414		$	715		$	3,348		$	4,424
	Income tax	191			(278		)	(934		)	(1,721		)
	Net of tax	605			437			2,414			2,703
Amortization of deferred actuarial loss and prior service cost	Selling, general and administrative expenses	(4,862		)	(4,307		)	(14,440		)	(12,843		)
	Income tax	1,867			1,675			5,545			4,996
	Net of tax	(2,995		)	(2,632		)	(8,895		)	(7,847		)
Total reclassifications		$	(2,390	)	$	(2,195	)	$	(6,481	)	$	(5,144	)

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Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Fair Values of Derivative Instruments

The fair values of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:

	Balance Sheet Location	Fair Value
		September 30, 2017			December 31, 2016
Hedges	Other current assets	$	907		$	16,729
Non-hedges	Other current assets	541			4,363
Total derivative assets		1,448			21,092
Hedges	Accrued liabilities	(21,169		)	(207		)
Non-hedges	Accrued liabilities	(4,503		)	(172		)
Total derivative liabilities		(25,672		)	(379		)
Net derivative (liability) asset		$	(24,224	)	$	20,713

Effect of Cash Flow Hedge Derivative Instruments

The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows:

	Amount of Loss Recognized in AOCI (Effective Portion)						Amount of Loss Recognized in AOCI (Effective Portion)
	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Foreign exchange contracts	$	(17,379	)	$	(3,594	)	$	(43,660	)	$	(7,131	)

	Location of Gain Reclassified from AOCI into Income (Effective Portion)	Amount of Gain Reclassified from AOCI into Income (Effective Portion)				Amount of Gain Reclassified from AOCI into Income (Effective Portion)
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Foreign exchange contracts	Cost of sales	$	414	$	715	$	3,348	$	4,424

Effect of Mark to Market Hedge Derivative Instruments on Condensed Consolidated Statements of Income

The effect of derivative contracts not designated as hedges on the Condensed Consolidated Statements of Income is as follows:

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain Recognized in Income				Amount of Gain (Loss) Recognized in Income
		Quarter Ended				Nine Months Ended
		September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Foreign exchange contracts	Selling, general and administrative expenses	$	3,277	$	7,694	$	(1,398	)	$	7,970

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Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

The following tables set forth, by level within the fair value hierarchy, the Company’s financial assets and liabilities accounted for at fair value on a recurring basis.

	Assets (Liabilities) at Fair Value as of September 30, 2017
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	1,448		$	—	$	1,448		$	—
Foreign exchange derivative contracts	(25,672		)	—		(25,672		)	—
	(24,224		)	—		(24,224		)	—
Champion Europe contingent consideration	(3,383		)	—		—			(3,383		)
Deferred compensation plan liability	(53,237		)	—		(53,237		)	—
Total	$	(80,844	)	$	—	$	(77,461	)	$	(3,383	)

	Assets (Liabilities) at Fair Value as of December 31, 2016
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange derivative contracts	$	21,092		$	—	$	21,092		$	—
Foreign exchange derivative contracts	(379		)	—		(379		)	—
	20,713			—		20,713			—
Champion Europe contingent consideration	(42,378		)	—		—			(42,378		)
Deferred compensation plan liability	(51,868		)	—		(51,868		)	—
Total	$	(73,533	)	$	—	$	(31,155	)	$	(42,378	)

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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Net Sales

	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net sales:
Innerwear	$	644,059	$	679,096	$	1,868,255	$	1,953,807
Activewear	519,496		516,713		1,226,595		1,207,767
International	556,730		478,122		1,509,370		1,026,871
Other	78,985		87,088		222,015		264,445
Total net sales	$	1,799,270	$	1,761,019	$	4,826,235	$	4,452,890

Segment Operating Profit

	Quarter Ended						Nine Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Segment operating profit:
Innerwear	$	141,002		$	147,902		$	407,982		$	435,660
Activewear	79,015			72,962			162,053			160,076
International	76,414			61,312			185,216			109,184
Other	10,162			9,199			16,250			27,408
Total segment operating profit	306,593			291,375			771,501			732,328
Items not included in segment operating profit:
General corporate expenses	(26,136		)	(14,776		)	(63,354		)	(54,798		)
Acquisition-related and integration charges	(16,874		)	(42,587		)	(81,303		)	(91,651		)
Amortization of intangibles	(10,279		)	(5,660		)	(23,595		)	(13,912		)
Total operating profit	253,304			228,352			603,249			571,967
Other expenses	(1,881		)	(1,559		)	(4,659		)	(50,533		)
Interest expense, net	(43,917		)	(43,433		)	(130,184		)	(111,539		)
Income from continuing operations before income tax expense	$	207,506		$	183,360		$	468,406		$	409,895

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Basis of Presentation Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2017 USD ($)
Balance Sheet Reclassification [Member]
Prior Period Adjustment [Line Items]
Prior Period Reclassification Adjustment	$ 22,746
Cash Flow Statement Reclassification [Member]
Prior Period Adjustment [Line Items]
Prior Period Reclassification Adjustment	$ 2,744

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Acquisitions Narrative (Details) € in Thousands, AUD in Thousands, $ in Thousands						1 Months Ended		9 Months Ended		12 Months Ended
	Oct. 13, 2017 USD ($)	Apr. 28, 2017 EUR (€)	Apr. 28, 2017 USD ($)	Jul. 14, 2016 AUD	Jul. 14, 2016 USD ($)	Jun. 30, 2016 EUR (€)	Jun. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Dec. 31, 2016 EUR (€)	Sep. 30, 2017 EUR (€)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)
Business Acquisition [Line Items]
Payment for Contingent Consideration Liability, Financing Activities								$ 41,250	$ 0
Goodwill												$ 1,141,942	$ 1,098,540
Hanes Australasia
Business Acquisition [Line Items]
Percent of business acquired					100.00%
Payments to acquire businesses				AUD 1,049,360	$ 800,871
Goodwill					$ 160,714
Champion Europe
Business Acquisition [Line Items]
Percent of business acquired						100.00%								100.00%
Payments to acquire businesses						€ 220,751	$ 245,554
Estimated contingent consideration						€ 40,700								$ 45,277
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple						10	10
Contingent Consideration EBITDA Floor | €										€ 18,600
Payment for Contingent Consideration Liability, Financing Activities		€ 37,820	$ 41,250
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | €											€ 46,600
Goodwill														$ 109,830
Valuation Adjustments [Member] | Hanes Australasia
Business Acquisition [Line Items]
Goodwill, purchase accounting adjustments								(25,434)
Working Capital | Champion Europe
Business Acquisition [Line Items]
Goodwill, purchase accounting adjustments								$ 1,665
3.50% Senior Notes
Business Acquisition [Line Items]
Interest Rate on Senior Notes Issued											3.50%	3.50%
Subsequent Event [Member] | Alternative Apparel [Member]
Business Acquisition [Line Items]
Percent of business acquired	100.00%
Payments to acquire businesses	$ 60,000

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Acquisitions (Details) € in Thousands, $ in Thousands	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 14, 2016 USD ($)	Jun. 30, 2016 EUR (€)	Jun. 30, 2016 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 1,141,942	$ 1,098,540
Hanes Australasia
Business Acquisition [Line Items]
Cash and cash equivalents			$ 54,294
Trade accounts receivable			36,019
Inventories			104,806
Other current assets			16,588
Current assets of discontinued operations			50,839
Property, net			34,835
Trademarks and other identifiable intangibles			506,170
Deferred tax assets and other noncurrent assets			23,687
Total assets acquired			827,238
Accounts payable			89,309
Accrued liabilities and other			24,912
Deferred tax liabilities and other noncurrent liabilities			16,320
Current Liabilities of Discontinued Operations			14,564
Long-term Debt			41,976
Total liabilities assumed			187,081
Net assets acquired			640,157
Goodwill			160,714
Purchase price			$ 800,871
Champion Europe
Business Acquisition [Line Items]
Cash and cash equivalents					$ 14,581
Trade accounts receivable					27,926
Inventories					53,816
Other current assets					5,976
Property, net					24,605
Trademarks and other identifiable intangibles					135,277
Deferred tax assets and other noncurrent assets					3,777
Total assets acquired					265,958
Accounts payable					66,594
Accrued liabilities and other					60,887
Notes payable					27,748
Deferred tax liabilities and other noncurrent liabilities					20,282
Total liabilities assumed					175,511
Net assets acquired					90,447
Goodwill					109,830
Initial consideration paid					200,277
Estimated contingent consideration				€ 40,700	45,277
Purchase price					$ 245,554

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Acquisition Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Business Acquisition [Line Items]
Pro forma revenue	$ 1,799,270		$ 4,826,235
Pro forma net income	$ 203,356		$ 448,602
Pro forma earnings per share, basic	$ 0.56		$ 1.22
Pro forma earnings per share, diluted	$ 0.55		$ 1.21
Champion Europe
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs		$ 751		$ 6,187
Pro Forma [Member] | Champion Europe
Business Acquisition [Line Items]
Pro forma revenue		1,780,530		4,859,619
Pro forma net income		$ 172,040		$ 448,589
Pro forma earnings per share, basic		$ 0.45		$ 1.17
Pro forma earnings per share, diluted		$ 0.45		$ 1.16

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Discontinued Operations (Details) - Discontinued Operations [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Income Statement and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	$ 0	$ 15,587	$ 6,865	$ 15,587
Cost of sales	0	9,996	4,507	9,996
Gross profit	0	5,591	2,358	5,591
Selling, general and administrative expenses	0	3,570	3,729	3,570
Operating profit (loss)	0	2,021	(1,371)	2,021
Other expenses	0	495	303	495
Net (loss) on disposal of businesses	0	0	(242)	0
Income (loss) from discontinued operations before income tax expense	0	1,526	(1,916)	1,526
Income tax expense	0	458	181	458
Net income (loss) from discontinued operations, net of tax	$ 0	$ 1,068	$ (2,097)	$ 1,068

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Discontinued Operations Narrative (Details) AUD in Thousands, $ in Thousands	1 Months Ended						3 Months Ended
	Apr. 30, 2017 AUD	Apr. 30, 2017 USD ($)	Mar. 31, 2017 AUD	Mar. 31, 2017 USD ($)	Feb. 28, 2017 AUD	Feb. 28, 2017 USD ($)	Sep. 30, 2017 AUD	Sep. 30, 2017 USD ($)
Dunlop Flooring [Member]
Income Statement and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses					AUD 34,564	$ 26,219
Adjustments to Proceeds from Previous Divestiture	AUD 1,334	$ 1,012
Gain (Loss) on Disposition of Business							AUD (2,715)	$ (2,083)
Tontine Pillow [Member]
Income Statement and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses			AUD 13,500	$ 10,363
Adjustments to Proceeds from Previous Divestiture	AUD (966)	$ (742)
Gain (Loss) on Disposition of Business							AUD 2,415	$ 1,856

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Stockholders' Equity (Reconciliation of basic to diluted weighted average shares) (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Disclosure Reconciliation Of Basic To Diluted Weighted Average Shares [Abstract]
Basic weighted average shares outstanding	366,083	379,368	368,885	382,235
Effect of potentially dilutive securities:
Stock options	1,541	1,890	1,591	2,016
Restricted stock units	535	1,293	470	1,210
Employee stock purchase plan and other	1	7	1	17
Diluted weighted average shares outstanding	368,160	382,558	370,947	385,478

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Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
	Oct. 24, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Apr. 27, 2016
Stockholders' Equity [Line Items]
Dividends, Per Share, Declared		$ 0.15	$ 0.11	$ 0.45	$ 0.33
Common Stock [Member]
Stockholders' Equity [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		0	0	0	0
Restricted Stock Units (RSUs) [Member]
Stockholders' Equity [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		28	42	58	42
2007 Share Repurchase Plan [Member]
Stockholders' Equity [Line Items]
Stock repurchased during period, shares					14,243
Shares acquired weighted average cost per share					$ 26.65
Stock repurchased during period, value					$ 379,901
2016 Share Repurchase Plan [Member]
Stockholders' Equity [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased						40,000
Stock repurchased during period, shares				14,696
Shares acquired weighted average cost per share				$ 20.39
Stock repurchased during period, value				$ 299,919
Remaining number of shares authorized to be repurchased		25,304		25,304
Subsequent Event [Member]
Stockholders' Equity [Line Items]
Dividends, Per Share, Declared	$ 0.15

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Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 130,567	$ 131,228
Work in process	201,729	185,066
Finished goods	1,621,622	1,524,271
Total Inventories	$ 1,953,918	$ 1,840,565

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Debt (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Principal amount	$ 4,012,382	$ 3,732,583
Long-term debt issuance cost	40,445	46,534
Long-term debt, current maturities	405,390	178,364
Long-term debt, excluding current maturities	$ 3,566,547	3,507,685
Revolving Loan Facility
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	2.99%
Principal amount	$ 211,000	0
Term Loan A
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	2.95%
Principal amount	$ 605,625	655,469
Term Loan B
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	3.74%
Principal amount	$ 318,625	318,625
Australian Term A-1 Loan Facility
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	3.15%
Principal amount	$ 156,974	143,544
Australian Term A-2 Loan Facility
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	0.00%
Principal amount	$ 0	143,544
4.875% Senior Notes
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	4.875%
Principal amount	$ 900,000	900,000
4.625% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	4.625%
Principal amount	$ 900,000	900,000
3.50% Senior Notes
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	3.50%
Principal amount	$ 587,268	520,617
European Revolving Loan Facility
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	1.50%
Principal amount	$ 79,868	62,474
Accounts Receivable Securitization Facility
Debt Instrument [Line Items]
Interest rate as of September 30, 2017	2.12%
Principal amount	$ 250,995	44,521
Other International Debt
Debt Instrument [Line Items]
Principal amount	$ 2,027	$ 43,789
Debt Instrument, Interest Rate Terms	Various

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Debt (Additional Information) (Detail) $ in Thousands	Sep. 30, 2017 USD ($)
Revolving Loan Facility
Debt Instrument [Line Items]
Remaining capacity under senior secured credit facility	$ 784,117
Maximum borrowing capacity under revolving credit facility	1,000,000
Trade letters of credit issued	4,883
European Revolving Loan Facility
Debt Instrument [Line Items]
Remaining capacity under senior secured credit facility	37,586
Australian Revolving Facility
Debt Instrument [Line Items]
Remaining capacity under senior secured credit facility	51,016
Accounts Receivable Securitization Facility
Debt Instrument [Line Items]
Remaining capacity under senior secured credit facility	24,005
Other International Debt
Debt Instrument [Line Items]
Remaining capacity under senior secured credit facility	$ 60,648

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(Accumulated Other Comprehensive Income (Loss) Rollforward) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward]
Balance at December 31, 2016, tax	$ 234,879
Amounts reclassified from accumulated other comprehensive loss, tax	(4,611)
Current-period other comprehensive income (loss) activity, tax	12,481
Balance at September 30, 2017, tax	242,749
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at December 31, 2016, net of tax	(435,991)
Amounts reclassified from accumulated other comprehensive loss, net of tax	6,481
Current-period other comprehensive income (loss) activity, net of tax	2,868
Balance at September 30, 2017, net of tax	(426,642)
Cumulative translation adjustment
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward]
Balance at December 31, 2016, before tax	(78,059)
Amounts reclassified from accumulated other comprehensive loss, before tax	0
Current-period other comprehensive income (loss) activity, before tax	34,047
Balance at September 30, 2017, before tax	(44,012)
Foreign exchange contracts
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward]
Balance at December 31, 2016, before tax	13,772
Amounts reclassified from accumulated other comprehensive loss, before tax	(3,348)
Current-period other comprehensive income (loss) activity, before tax	(43,660)
Balance at September 30, 2017, before tax	(33,236)
Defined benefit plans
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward]
Balance at December 31, 2016, before tax	(606,583)
Amounts reclassified from accumulated other comprehensive loss, before tax	14,440
Current-period other comprehensive income (loss) activity, before tax	0
Balance at September 30, 2017, before tax	$ (592,143)

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	$ 1,120,813	$ 1,111,653	$ 2,962,345	$ 2,788,977
Selling, general and administrative expenses	425,153	421,014	1,260,641	1,091,946
Income tax expense (benefit)	4,150	10,570	19,804	28,693
Net income	203,356	173,858	446,505	382,270
Reclassification out of Accumulated Other Comprehensive Income
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net income	(2,390)	(2,195)	(6,481)	(5,144)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of deferred actuarial loss and prior service cost
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative expenses	(4,862)	(4,307)	(14,440)	(12,843)
Income tax expense (benefit)	(1,867)	(1,675)	(5,545)	(4,996)
Net income	(2,995)	(2,632)	(8,895)	(7,847)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract | Gain (loss) on cash flow hedges:
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	414	715	3,348	4,424
Income tax expense (benefit)	(191)	278	934	1,721
Net income	$ 605	$ 437	$ 2,414	$ 2,703

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Financial Instruments and Risk Management (Additional Information) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Derivative [Line Items]
Amount expected to be reclassified into earnings	$ (16,432)
Foreign Exchange Contract | Designated as Hedging Instrument | Short
Derivative [Line Items]
Commitments to sell and purchase foreign currencies in foreign currency cash flow hedge derivative portfolio	$ 588,866

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Financial Instruments and Risk Management (Fair Values of Derivative Instruments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Fair value of assets and liabilities	$ (24,224)	$ 20,713
Other current assets
Derivatives, Fair Value [Line Items]
Total derivative assets	1,448	21,092
Other current assets | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivative assets	907	16,729
Other current assets | Non-hedges
Derivatives, Fair Value [Line Items]
Total derivative assets	541	4,363
Accrued liabilities
Derivatives, Fair Value [Line Items]
Total derivative liabilities	25,672	379
Accrued liabilities | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivative liabilities	21,169	207
Accrued liabilities | Non-hedges
Derivatives, Fair Value [Line Items]
Total derivative liabilities	$ 4,503	$ 172

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Financial Instruments and Risk Management (Effect of cash flow hedge derivative instruments) (Detail) - Foreign Exchange Contract - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (Effective Portion)	$ (17,379)	$ (3,594)	$ (43,660)	$ (7,131)
Cost of Sales
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)	$ 414	$ 715	$ 3,348	$ 4,424

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Financial Instruments and Risk Management (Effect of mark to market hedge derivative instruments on Condensed Consolidated Statements of Income) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Foreign Exchange Contract | Selling, General and Administrative Expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 3,277	$ 7,694	$ (1,398)	$ 7,970

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Fair Value of Assets and Liabilities (Additional Information) (Detail) € in Thousands, $ in Thousands			9 Months Ended
	Apr. 28, 2017 EUR (€)	Apr. 28, 2017 USD ($)	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Dec. 31, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment for Contingent Consideration Liability, Financing Activities			$ 41,250	$ 0
Allowance for Doubtful Accounts Receivable, Current			23,998		$ 18,726
Carrying value of debt			4,012,382		3,732,583
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt			$ 4,206,792		$ 3,729,270
Champion Europe
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment for Contingent Consideration Liability, Financing Activities	€ 37,820	$ 41,250

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Fair Value of Assets and Liabilities (Fair Value of Financial Assets and Liabilities Measured on Recurring Basis) (Detail) € in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2016 EUR (€)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets and liabilities			$ (24,224)	$ 20,713
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets and liabilities			(24,224)	20,713
Champion Europe contingent consideration			3,383	42,378
Deferred compensation plan liability			53,237	51,868
Net Effect Of Financial Asset Less Financial Liability			(80,844)	(73,533)
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets and liabilities			0	0
Champion Europe contingent consideration			0	0
Deferred compensation plan liability			0	0
Net Effect Of Financial Asset Less Financial Liability			0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets and liabilities			(24,224)	20,713
Champion Europe contingent consideration			0	0
Deferred compensation plan liability			53,237	51,868
Net Effect Of Financial Asset Less Financial Liability			(77,461)	(31,155)
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets and liabilities			0	0
Deferred compensation plan liability			0	0
Net Effect Of Financial Asset Less Financial Liability			(3,383)	(42,378)
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets			1,448	21,092
Total derivative liabilities			25,672	379
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Quoted Prices In Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets			0	0
Total derivative liabilities			0	0
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets			1,448	21,092
Total derivative liabilities			25,672	379
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets			0	0
Total derivative liabilities			0	0
Contingent consideration [Member] | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Champion Europe contingent consideration			$ 3,383	$ 42,378
Champion Europe
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple	10
Contingent Consideration EBITDA Floor | €		€ 18,600

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Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Income Tax Disclosure [Abstract]
Effective Income Tax Rate, Percent	2.00%	6.00%	4.00%	7.00%

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Business Segment Information (Detail) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017 USD ($)	Apr. 01, 2017 USD ($)	Oct. 01, 2016 USD ($)	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Dec. 31, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments				3
Net sales:
Net sales	$ 1,799,270		$ 1,761,019	$ 4,826,235	$ 4,452,890
Segment operating profit:
Total operating profit	253,304		228,352	603,249	571,967
General corporate expenses	26,136		14,776	63,354	54,798
Acquisition-related and integration charges	16,874		42,587	81,303	91,651
Amortization of intangibles	10,279		5,660	23,595	13,912
Other expenses	(1,881)		(1,559)	(4,659)	(50,533)
Interest expense, net	43,917		43,433	130,184	111,539
Income before income tax expense	207,506		183,360	468,406	409,895
Innerwear
Net sales:
Net sales	644,059		679,096	1,868,255	1,953,807
Segment operating profit:
Total operating profit	141,002		147,902	407,982	435,660
Activewear
Net sales:
Net sales	519,496		516,713	1,226,595	1,207,767
Segment operating profit:
Total operating profit	79,015		72,962	162,053	160,076
International
Net sales:
Net sales	556,730		478,122	1,509,370	1,026,871
Segment operating profit:
Total operating profit	76,414		61,312	185,216	109,184
Total segment operating profit
Segment operating profit:
Total operating profit	306,593		291,375	771,501	732,328
Total
Segment operating profit:
Acquisition-related and integration charges	16,874		42,587	81,303	138,942
Cost of Sales
Segment operating profit:
Acquisition-related and integration charges	2,230		13,563	21,989	27,732
Selling, General and Administrative Expenses
Segment operating profit:
Acquisition-related and integration charges	14,644		29,024	59,314	63,919
Other expenses
Segment operating profit:
Acquisition-related and integration charges				47,291
Corporate, Non-Segment
Net sales:
Net sales	78,985		87,088	222,015	264,445
Segment operating profit:
Total operating profit	10,162		$ 9,199	16,250	$ 27,408
Hanes Europe Innerwear
Segment operating profit:
Other Employee Related Liabilities	22,706			22,706		$ 32,542
Employee termination and other benefits paid				9,836
Hanes Europe Innerwear | Accrued liabilities
Segment operating profit:
Other Employee Related Liabilities	10,905			10,905
Hanes Europe Innerwear | Other Noncurrent Liabilities
Segment operating profit:
Other Employee Related Liabilities	11,801			11,801
U.S. Corporate Workforce
Segment operating profit:
Employee termination and other benefits paid				8,477
U.S. Corporate Workforce | Accrued liabilities
Segment operating profit:
Other Employee Related Liabilities	6,321	$ 10,145		6,321
U.S. Corporate Workforce | Selling, General and Administrative Expenses
Segment operating profit:
Restructuring Charges				4,653
Nanjing Closure
Segment operating profit:
Employee termination and other benefits paid	8,057
Nanjing Closure | Accrued liabilities
Segment operating profit:
Other Employee Related Liabilities	477	8,534		477
Nanjing Closure | Other Current Assets [Member]
Segment operating profit:
Assets held-for-sale	$ 65,570			$ 65,570
Nanjing Closure | Cost of Sales
Segment operating profit:
Facility exit costs		$ 2,831