QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of incorporation) | (I.R.S. employer identification no.) | ||||||||||
(Address of principal executive office) | (Zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 1. | Financial Statements |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Income from continuing operations before income tax expense | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Income from continuing operations | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Earnings (loss) per share - basic: | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Earnings (loss) per share - diluted: | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Translation adjustments | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gain on qualifying cash flow hedges, net of tax of $(3,658), $(1,140), $(2,689) and $(6,316), respectively | |||||||||||||||||||||||
Unrecognized income from pension and postretirement plans, net of tax of $(1,435), $(1,566), $(2,752) and $(3,615), respectively | |||||||||||||||||||||||
Total other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income (loss) | $ | ( | $ | $ | $ | ( |
July 2, 2022 | January 1, 2022 | July 3, 2021 | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Trade accounts receivable, net | |||||||||||||||||
Inventories | |||||||||||||||||
Other current assets | |||||||||||||||||
Current assets held for sale | |||||||||||||||||
Total current assets | |||||||||||||||||
Property, net | |||||||||||||||||
Right-of-use assets | |||||||||||||||||
Trademarks and other identifiable intangibles, net | |||||||||||||||||
Goodwill | |||||||||||||||||
Deferred tax assets | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Accounts payable | $ | $ | $ | ||||||||||||||
Accrued liabilities | |||||||||||||||||
Lease liabilities | |||||||||||||||||
Accounts Receivable Securitization Facility | |||||||||||||||||
Current portion of long-term debt | |||||||||||||||||
Current liabilities held for sale | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Lease liabilities - noncurrent | |||||||||||||||||
Pension and postretirement benefits | |||||||||||||||||
Other noncurrent liabilities | |||||||||||||||||
Total liabilities | |||||||||||||||||
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 — 348,825,622, 349,903,253 and 349,115,441, respectively | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at April 2, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net exercise of stock options, vesting of restricted stock units and other | — | — | |||||||||||||||||||||||||||||||||
Balances at July 2, 2022 | $ | $ | $ | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at January 1, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net exercise of stock options, vesting of restricted stock units and other | ( | — | — | ( | |||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Balances at July 2, 2022 | $ | $ | $ | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at April 3, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net exercise of stock options, vesting of restricted stock units and other | — | — | |||||||||||||||||||||||||||||||||
Balances at July 3, 2021 | $ | $ | $ | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at January 2, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net exercise of stock options, vesting of restricted stock units and other | ( | — | — | ( | |||||||||||||||||||||||||||||||
Balances at July 3, 2021 | $ | $ | $ | $ | ( | $ |
Six Months Ended | |||||||||||
July 2, 2022(1) | July 3, 2021(1) | ||||||||||
Operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of acquisition intangibles | |||||||||||
Other amortization | |||||||||||
Impairment of intangible assets and goodwill | |||||||||||
(Gain) loss on sale of business and classification of assets held for sale | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Other | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Other assets | ( | ||||||||||
Accounts payable | |||||||||||
Accrued pension and postretirement benefits | ( | ( | |||||||||
Accrued liabilities and other | ( | ||||||||||
Net cash from operating activities | ( | ||||||||||
Investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Purchase of trademarks | ( | ||||||||||
Proceeds from sales of assets | |||||||||||
Other | ( | ||||||||||
Net cash from investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Repayments on Term Loan Facilities | ( | ( | |||||||||
Borrowings on Accounts Receivable Securitization Facility | |||||||||||
Repayments on Accounts Receivable Securitization Facility | ( | ||||||||||
Borrowings on Revolving Loan Facilities | |||||||||||
Repayments on Revolving Loan Facilities | ( | ||||||||||
Borrowings on notes payable | |||||||||||
Repayments on notes payable | ( | ( | |||||||||
Share repurchases | ( | ||||||||||
Cash dividends paid | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash from financing activities | ( | ||||||||||
Effect of changes in foreign exchange rates on cash | ( | ( | |||||||||
Change in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Balances included in the Condensed Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash and cash equivalents included in current assets held for sale | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
July 2, 2022 | January 1, 2022 | July 3, 2021 | |||||||||||||||
U.S. Sheer Hosiery business - continuing operations | $ | $ | $ | ||||||||||||||
European Innerwear business - discontinued operations | |||||||||||||||||
Total current assets held for sale | $ | $ | $ | ||||||||||||||
U.S. Sheer Hosiery business - continuing operations | $ | $ | $ | ||||||||||||||
European Innerwear business - discontinued operations | |||||||||||||||||
Total current liabilities held for sale | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Impairment of intangible assets and goodwill | |||||||||||||||||||||||
Loss on sale of business and classification of assets held for sale | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | |||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Loss from discontinued operations before income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Net income (loss) from discontinued operations, net of tax | $ | ( | $ | ( | $ | $ | ( |
July 2, 2022 | January 1, 2022 | July 3, 2021 | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Trade accounts receivable, net | |||||||||||||||||
Inventories | |||||||||||||||||
Other current assets | |||||||||||||||||
Property, net | |||||||||||||||||
Right-of-use assets | |||||||||||||||||
Trademarks and other identifiable intangibles, net | |||||||||||||||||
Deferred tax assets | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||
Allowance to adjust assets to estimated fair value, less costs of disposal | ( | ( | |||||||||||||||
Total assets of discontinued operations | $ | $ | $ | ||||||||||||||
Accounts payable | $ | $ | $ | ||||||||||||||
Accrued liabilities | |||||||||||||||||
Lease liabilities | |||||||||||||||||
Notes payable | |||||||||||||||||
Lease liabilities - noncurrent | |||||||||||||||||
Pension and postretirement benefits | |||||||||||||||||
Other noncurrent liabilities | |||||||||||||||||
Total liabilities of discontinued operations | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Depreciation | $ | $ | $ | $ | |||||||||||||||||||
Amortization | $ | $ | $ | $ | |||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | |||||||||||||||||||
Impairment of intangible assets and goodwill | $ | $ | $ | $ | |||||||||||||||||||
Loss on sale of business and classification of assets held for sale | $ | $ | $ | $ | |||||||||||||||||||
Capital expenditures included in accounts payable at end of period | $ | $ | $ | $ | |||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | $ | $ | $ | |||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Third-party brick-and-mortar wholesale | $ | $ | $ | $ | |||||||||||||||||||
Consumer-directed | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Effect of potentially dilutive securities: | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Employee stock purchase plan and other | |||||||||||||||||||||||
Diluted weighted average shares outstanding |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units |
July 2, 2022 | January 1, 2022 | July 3, 2021 | |||||||||||||||
Raw materials | $ | $ | $ | ||||||||||||||
Work in process | |||||||||||||||||
Finished goods | |||||||||||||||||
$ | $ | $ |
Interest Rate as of July 2, 2022 | Principal Amount | Maturity Date | |||||||||||||||||||||
July 2, 2022 | January 1, 2022 | ||||||||||||||||||||||
Senior Secured Credit Facility: | |||||||||||||||||||||||
Revolving Loan Facility | $ | $ | November 2026 | ||||||||||||||||||||
Term Loan A | November 2026 | ||||||||||||||||||||||
4.875% Senior Notes | May 2026 | ||||||||||||||||||||||
4.625% Senior Notes | May 2024 | ||||||||||||||||||||||
3.5% Senior Notes | June 2024 | ||||||||||||||||||||||
Accounts Receivable Securitization Facility | June 2023 | ||||||||||||||||||||||
Less long-term debt issuance costs | |||||||||||||||||||||||
Less current maturities | |||||||||||||||||||||||
$ | $ |
Cumulative Translation Adjustment(1) | Cash Flow Hedges | Defined Benefit Plans | Income Taxes | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
Balance at April 2, 2022 | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ||||||||||||||||||||||||||||
Current-period other comprehensive income (loss) activity | ( | ( | ( | ( | |||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at July 2, 2022 | $ | ( | $ | $ | ( | $ | $ | ( |
Cumulative Translation Adjustment(1) | Cash Flow Hedges | Defined Benefit Plans | Income Taxes | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
Balance at January 1, 2022 | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||||||||
Current-period other comprehensive income (loss) activity | ( | ( | ( | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at July 2, 2022 | $ | ( | $ | $ | ( | $ | $ | ( |
Cumulative Translation Adjustment(1) | Cash Flow Hedges | Defined Benefit Plans | Income Taxes | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
Balance at April 3, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ||||||||||||||||||||||||||||
Current-period other comprehensive income (loss) activity | ( | ( | ( | ( | |||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at July 3, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Cumulative Translation Adjustment(1) | Cash Flow Hedges | Defined Benefit Plans | Income Taxes | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
Balance at January 2, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ||||||||||||||||||||||||||||
Current-period other comprehensive income (loss) activity | ( | ( | ( | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at July 3, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Component of AOCI | Location of Reclassification into Income | Amount of Reclassification from AOCI | ||||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | |||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||||||
Write-off of cumulative translation associated with sale of business | Income (loss) from discontinued operations, net of tax | $ | $ | $ | $ | |||||||||||||||||||||||||||
Gain (loss) on forward foreign exchange contracts designated as cash flow hedges | Cost of sales | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Income tax | ( | ( | ||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | ( | ( | ( | |||||||||||||||||||||||||||||
Net of tax | ( | ( | ||||||||||||||||||||||||||||||
Gain (loss) on cross-currency swap contracts designated as cash flow hedges | Selling, general and administrative expenses | ( | ( | |||||||||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Income tax | ( | ( | ||||||||||||||||||||||||||||||
Net of tax | ( | ( | ||||||||||||||||||||||||||||||
Amortization of deferred actuarial loss and prior service cost | Other expenses | ( | ( | ( | ( | |||||||||||||||||||||||||||
Income tax | ||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||
Pension activity associated with sale of business | Income (loss) from discontinued operations, net of tax | ( | ||||||||||||||||||||||||||||||
Net of tax | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Total reclassifications | $ | ( | $ | ( | $ | ( | $ | ( |
Hedge Type | July 2, 2022 | January 1, 2022 | |||||||||||||||
U.S. dollar equivalent notional amount of derivative instruments: | |||||||||||||||||
Forward foreign exchange contracts | Cash Flow and Mark to Market | $ | $ | ||||||||||||||
Cross-currency swap contracts | Cash Flow | $ | $ | ||||||||||||||
Cross-currency swap contracts | Net Investment | $ | $ |
Balance Sheet Location | Fair Value | ||||||||||||||||
July 2, 2022 | January 1, 2022 | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Forward foreign exchange contracts | Other current assets | $ | $ | ||||||||||||||
Cross-currency swap contracts | Other current assets | ||||||||||||||||
Forward foreign exchange contracts | Other noncurrent assets | ||||||||||||||||
Cross-currency swap contracts | Other noncurrent assets | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward foreign exchange contracts | Other current assets | ||||||||||||||||
Total derivative assets | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Forward foreign exchange contracts | Accrued liabilities | ( | ( | ||||||||||||||
Cross-currency swap contracts | Accrued liabilities | ( | ( | ||||||||||||||
Forward foreign exchange contracts | Other noncurrent liabilities | ( | |||||||||||||||
Cross-currency swap contracts | Other noncurrent liabilities | ( | ( | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward foreign exchange contracts | Accrued liabilities | ( | ( | ||||||||||||||
Total derivative liabilities | ( | ( | |||||||||||||||
Net derivative asset/(liability) | $ | $ | ( |
Amount of Gain (Loss) Recognized in AOCI on Derivative Instruments | |||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Forward foreign exchange contracts | $ | $ | ( | $ | $ | ||||||||||||||||||
Cross-currency swap contracts | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ |
Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | ||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||||||||
Forward foreign exchange contracts(1) | Cost of sales | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||
Forward foreign exchange contracts(1) | Income (loss) from discontinued operations, net of tax | ( | ( | ( | |||||||||||||||||||||||||
Cross-currency swap contracts(1) | Selling, general and administrative expenses | ( | ( | ||||||||||||||||||||||||||
Cross-currency swap contracts(1) | Interest expense, net | ( | ( | ( | ( | ||||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | $ | $ | $ | $ | |||||||||||||||||||
Interest expense, net | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | ( | $ | ( | $ | $ | ( |
Amount of Gain (Loss) Recognized in AOCI | |||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||||||||
Euro-denominated long-term debt | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Cross-currency swap contracts | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | ||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||||||||
Euro-denominated long-term debt | Income (loss) from discontinued operations, net of tax | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Cross-currency swap contracts | Income (loss) from discontinued operations, net of tax | $ | ( | ||||||||||||||||||||||||||
Cross-currency swap contracts (amounts excluded from effectiveness testing) | Interest expense, net | ||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Quarters Ended | Six Months Ended | |||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | ( | ( | $ | ( | ||||||||||||||||||||||
Interest expense, net (amounts excluded from effectiveness testing) |
Location of Gain (Loss) Recognized in Income on Derivatives | Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||||||||
Forward foreign exchange contracts | Cost of sales | $ | $ | $ | $ | ||||||||||||||||||||||||
Forward foreign exchange contracts | Selling, general and administrative expenses | ( | ( | ||||||||||||||||||||||||||
Forward foreign exchange contracts | Income (loss) from discontinued operations, net of tax | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Assets (Liabilities) at Fair Value as of July 2, 2022 | |||||||||||||||||||||||
Total | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Forward foreign exchange contracts - assets | $ | $ | $ | $ | |||||||||||||||||||
Cross-currency swap contracts - assets | |||||||||||||||||||||||
Forward foreign exchange contracts - liabilities | ( | ( | |||||||||||||||||||||
Cross-currency swap contracts - liabilities | ( | ( | |||||||||||||||||||||
Total derivative contracts | |||||||||||||||||||||||
Deferred compensation plan liability | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Assets (Liabilities) at Fair Value as of January 1, 2022 | |||||||||||||||||||||||
Total | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Forward foreign exchange contracts - assets | $ | $ | $ | $ | |||||||||||||||||||
Cross-currency swap contracts - assets | |||||||||||||||||||||||
Forward foreign exchange contracts - liabilities | ( | ( | |||||||||||||||||||||
Cross-currency swap contracts - liabilities | ( | ( | |||||||||||||||||||||
Total derivative contracts | ( | ( | |||||||||||||||||||||
Deferred compensation plan liability | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Innerwear | $ | $ | $ | $ | |||||||||||||||||||
Activewear | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Segment operating profit: | |||||||||||||||||||||||
Innerwear | $ | $ | $ | $ | |||||||||||||||||||
Activewear | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total segment operating profit | |||||||||||||||||||||||
Items not included in segment operating profit: | |||||||||||||||||||||||
General corporate expenses | ( | ( | ( | ( | |||||||||||||||||||
Restructuring and other action-related charges | ( | ( | ( | ( | |||||||||||||||||||
Amortization of intangibles | ( | ( | ( | ( | |||||||||||||||||||
Total operating profit | |||||||||||||||||||||||
Other expenses | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income from continuing operations before income tax expense | $ | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Total included in operating profit | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Total restructuring and other action-related charges | $ | $ | $ | $ |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Full Potential Plan: | |||||||||||||||||||||||
Professional services | $ | $ | $ | $ | |||||||||||||||||||
Gain on classification of assets held for sale | ( | ( | |||||||||||||||||||||
Operating model | ( | ||||||||||||||||||||||
Supply chain segmentation | |||||||||||||||||||||||
Technology | |||||||||||||||||||||||
Impairment of intangible assets | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total included in operating profit | |||||||||||||||||||||||
Discrete tax benefits | |||||||||||||||||||||||
Tax benefit effect on actions | |||||||||||||||||||||||
Total benefit included in income tax expense | |||||||||||||||||||||||
Total restructuring and other action-related charges | $ | $ | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Quarters Ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net sales | $ | 1,513,467 | $ | 1,751,311 | $ | (237,844) | (13.6) | % | |||||||||||||||
Cost of sales | 941,366 | 1,069,682 | (128,316) | (12.0) | |||||||||||||||||||
Gross profit | 572,101 | 681,629 | (109,528) | (16.1) | |||||||||||||||||||
Selling, general and administrative expenses | 424,847 | 464,235 | (39,388) | (8.5) | |||||||||||||||||||
Operating profit | 147,254 | 217,394 | (70,140) | (32.3) | |||||||||||||||||||
Other expenses | 1,889 | 1,855 | 34 | 1.8 | |||||||||||||||||||
Interest expense, net | 33,724 | 42,440 | (8,716) | (20.5) | |||||||||||||||||||
Income from continuing operations before income tax expense | 111,641 | 173,099 | (61,458) | (35.5) | |||||||||||||||||||
Income tax expense | 18,980 | 25,236 | (6,256) | (24.8) | |||||||||||||||||||
Income from continuing operations | 92,661 | 147,863 | (55,202) | (37.3) | |||||||||||||||||||
Loss from discontinued operations, net of tax | (560) | (19,187) | 18,627 | (97.1) | |||||||||||||||||||
Net income | $ | 92,101 | $ | 128,676 | $ | (36,575) | (28.4) | % |
Net Sales | |||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Innerwear | $ | 685,778 | $ | 780,650 | $ | (94,872) | (12.2) | % | |||||||||||||||
Activewear | 330,400 | 404,189 | (73,789) | (18.3) | |||||||||||||||||||
International | 424,189 | 478,923 | (54,734) | (11.4) | |||||||||||||||||||
Other | 73,100 | 87,549 | (14,449) | (16.5) | |||||||||||||||||||
Total | $ | 1,513,467 | $ | 1,751,311 | $ | (237,844) | (13.6) | % |
Operating Profit and Margin | |||||||||||||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Innerwear | $ | 141,659 | 20.7 | % | $ | 186,169 | 23.8 | % | $ | (44,510) | (23.9) | % | |||||||||||||||||||||||
Activewear | 22,857 | 6.9 | 41,047 | 10.2 | (18,190) | (44.3) | |||||||||||||||||||||||||||||
International | 55,953 | 13.2 | 61,900 | 12.9 | (5,947) | (9.6) | |||||||||||||||||||||||||||||
Other | 5,333 | 7.3 | 9,220 | 10.5 | (3,887) | (42.2) | |||||||||||||||||||||||||||||
Corporate | (78,548) | NM | (80,942) | NM | 2,394 | (3.0) | |||||||||||||||||||||||||||||
Total | $ | 147,254 | 9.7 | % | $ | 217,394 | 12.4 | % | $ | (70,140) | (32.3) | % |
Quarters Ended | |||||||||||
July 2, 2022 | July 3, 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Restructuring and other action-related charges: | |||||||||||
Full Potential Plan: | |||||||||||
Professional services | $ | 7,086 | $ | 13,804 | |||||||
Gain on classification of assets held for sale | (4,340) | — | |||||||||
Operating model | 825 | — | |||||||||
Supply chain segmentation | 269 | — | |||||||||
Technology | 1,971 | — | |||||||||
Other | 569 | 4,860 | |||||||||
Total included in operating profit | 6,380 | 18,664 | |||||||||
Tax benefit effect on actions | 1,085 | 1,903 | |||||||||
Total restructuring and other action-related charges | $ | 5,295 | $ | 16,761 |
Six Months Ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net sales | $ | 3,089,623 | $ | 3,259,340 | $ | (169,717) | (5.2) | % | |||||||||||||||
Cost of sales | 1,933,344 | 1,975,030 | (41,686) | (2.1) | |||||||||||||||||||
Gross profit | 1,156,279 | 1,284,310 | (128,031) | (10.0) | |||||||||||||||||||
Selling, general and administrative expenses | 838,513 | 876,794 | (38,281) | (4.4) | |||||||||||||||||||
Operating profit | 317,766 | 407,516 | (89,750) | (22.0) | |||||||||||||||||||
Other expenses | 2,876 | 4,416 | (1,540) | (34.9) | |||||||||||||||||||
Interest expense, net | 65,687 | 86,900 | (21,213) | (24.4) | |||||||||||||||||||
Income from continuing operations before income tax expense | 249,203 | 316,200 | (66,997) | (21.2) | |||||||||||||||||||
Income tax expense | 42,365 | 39,933 | 2,432 | 6.1 | |||||||||||||||||||
Income from continuing operations | 206,838 | 276,267 | (69,429) | (25.1) | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 3,965 | (410,853) | 414,818 | (101.0) | |||||||||||||||||||
Net income (loss) | $ | 210,803 | $ | (134,586) | $ | 345,389 | (256.6) | % | |||||||||||||||
Net Sales | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Innerwear | $ | 1,264,725 | $ | 1,351,085 | $ | (86,360) | (6.4) | % | |||||||||||||||
Activewear | 717,337 | 768,192 | (50,855) | (6.6) | |||||||||||||||||||
International | 934,318 | 985,184 | (50,866) | (5.2) | |||||||||||||||||||
Other | 173,243 | 154,879 | 18,364 | 11.9 | |||||||||||||||||||
Total | $ | 3,089,623 | $ | 3,259,340 | $ | (169,717) | (5.2) | % |
Operating Profit and Margin | |||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Higher (Lower) | Percent Change | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Innerwear | $ | 243,805 | 19.3 | % | $ | 313,586 | 23.2 | % | $ | (69,781) | (22.3) | % | |||||||||||||||||||||||
Activewear | 71,841 | 10.0 | 101,641 | 13.2 | (29,800) | (29.3) | |||||||||||||||||||||||||||||
International | 145,391 | 15.6 | 149,080 | 15.1 | (3,689) | (2.5) | |||||||||||||||||||||||||||||
Other | 4,662 | 2.7 | 11,106 | 7.2 | (6,444) | (58.0) | |||||||||||||||||||||||||||||
Corporate | (147,933) | NM | (167,897) | NM | 19,964 | (11.9) | |||||||||||||||||||||||||||||
Total | $ | 317,766 | 10.3 | % | $ | 407,516 | 12.5 | % | $ | (89,750) | (22.0) | % |
Six Months Ended | |||||||||||
July 2, 2022 | July 3, 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Restructuring and other action-related charges: | |||||||||||
Full Potential Plan: | |||||||||||
Professional services | $ | 14,994 | $ | 25,510 | |||||||
Gain on classification of assets held for sale | (10,868) | — | |||||||||
Operating model | (1,094) | — | |||||||||
Supply chain segmentation | 1,289 | — | |||||||||
Technology | 6,430 | — | |||||||||
Impairment of intangible assets | — | 7,302 | |||||||||
Other | 431 | 5,245 | |||||||||
Total included in operating profit | 11,182 | 38,057 | |||||||||
Discrete tax benefits | — | 7,295 | |||||||||
Tax benefit effect on actions | 1,901 | 5,910 | |||||||||
Total benefit included in income tax expense | 1,901 | 13,205 | |||||||||
Total restructuring and other action-related charges | $ | 9,281 | $ | 24,852 | |||||||
As of July 2, 2022 | |||||||||||
Borrowing Capacity | Available Liquidity | ||||||||||
(dollars in thousands) | |||||||||||
Senior Secured Credit Facility: | |||||||||||
Revolving Loan Facility(1) | $ | 1,000,000 | $ | 634,940 | |||||||
Accounts Receivable Securitization Facility(2) | 163,284 | 58,584 | |||||||||
Other international credit facilities | 49,786 | 23,798 | |||||||||
Total liquidity from credit facilities | $ | 1,213,070 | $ | 717,322 | |||||||
Cash and cash equivalents | 247,922 | ||||||||||
Total liquidity | $ | 965,244 |
Six Months Ended | |||||||||||
July 2, 2022 | July 3, 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Operating activities | $ | (441,074) | $ | 212,256 | |||||||
Investing activities | (146,364) | (15,939) | |||||||||
Financing activities | 316,306 | (413,921) | |||||||||
Effect of changes in foreign exchange rates on cash | (41,575) | (16,780) | |||||||||
Change in cash, cash equivalents and restricted cash | (312,707) | (234,384) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | 560,629 | 910,603 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 247,922 | $ | 676,219 | |||||||
Balances included in the Condensed Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | $ | 247,922 | $ | 667,298 | |||||||
Cash and cash equivalents included in current assets held for sale | — | 8,921 | |||||||||
Cash and cash equivalents at end of period | $ | 247,922 | $ | 676,219 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
10.1 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101.INS XBRL | Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 | ||||||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
* | Management contract or compensatory plans or arrangements. |
HANESBRANDS INC. | ||||||||
By: | /s/ Michael P. Dastugue | |||||||
Michael P. Dastugue Chief Financial Officer (Duly authorized officer and principal financial officer) |
Name | Date of Agreement | ||||
Michael E. Faircloth | August 21, 2013 | ||||
Kristin L. Oliver | September 8, 2020 | ||||
Greg L. Hall | January 12, 2021 | ||||
Joseph W. Cavaliere | February 8, 2021 | ||||
Tracy M. Preston | March 29, 2021 | ||||
Michael P. Dastugue | May 1, 2021 | ||||
Vanessa LeFebvre | August 15, 2022 |
/s/ Stephen B. Bratspies | ||
Stephen B. Bratspies Chief Executive Officer |
/s/ Michael P. Dastugue | ||
Michael P. Dastugue Chief Financial Officer |
/s/ Stephen B. Bratspies | ||
Stephen B. Bratspies Chief Executive Officer |
/s/ Michael P. Dastugue | ||
Michael P. Dastugue Chief Financial Officer |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,513,467 | $ 1,751,311 | $ 3,089,623 | $ 3,259,340 |
Cost of sales | 941,366 | 1,069,682 | 1,933,344 | 1,975,030 |
Gross profit | 572,101 | 681,629 | 1,156,279 | 1,284,310 |
Selling, general and administrative expenses | 424,847 | 464,235 | 838,513 | 876,794 |
Operating profit | 147,254 | 217,394 | 317,766 | 407,516 |
Other expenses | 1,889 | 1,855 | 2,876 | 4,416 |
Interest expense, net | 33,724 | 42,440 | 65,687 | 86,900 |
Income from continuing operations before income tax expense | 111,641 | 173,099 | 249,203 | 316,200 |
Income tax expense | 18,980 | 25,236 | 42,365 | 39,933 |
Income from continuing operations | 92,661 | 147,863 | 206,838 | 276,267 |
Income (loss) from discontinued operations, net of tax | (560) | (19,187) | 3,965 | (410,853) |
Net income (loss) | $ 92,101 | $ 128,676 | $ 210,803 | $ (134,586) |
Earnings (loss) per share, basic: | ||||
Continuing operations | $ 0.26 | $ 0.42 | $ 0.59 | $ 0.79 |
Discontinued operations | 0.00 | (0.05) | 0.01 | (1.17) |
Net income (loss) | 0.26 | 0.37 | 0.60 | (0.38) |
Earnings (loss) per share, diluted: | ||||
Continuing operations | 0.26 | 0.42 | 0.59 | 0.79 |
Discontinued operations | 0.00 | (0.05) | 0.01 | (1.17) |
Net income (loss) | $ 0.26 | $ 0.37 | $ 0.60 | $ (0.38) |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income (loss) | $ 92,101 | $ 128,676 | $ 210,803 | $ (134,586) |
Other comprehensive income (loss): | ||||
Translation adjustments | (122,122) | (11,231) | (94,825) | (36,432) |
Unrealized gain on qualifying cash flow hedges, net of tax of $(3,658), $(1,140), $(2,689) and $(6,316), respectively | 5,056 | 2,856 | 8,410 | 11,396 |
Unrecognized income from pension and postretirement plans, net of tax of $(1,435), $(1,566), $(2,752) and $(3,615), respectively | 3,995 | 4,332 | 8,256 | 11,067 |
Total other comprehensive income (loss) | (113,071) | (4,043) | (78,159) | (13,969) |
Comprehensive income (loss) | $ (20,970) | $ 124,633 | $ 132,644 | $ (148,555) |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract] | ||||
Tax portion of unrealized gain on qualifying cash flow hedges | $ (3,658) | $ (1,140) | $ (2,689) | $ (6,316) |
Tax portion of unrecognized income from pension and postretirement plans | $ (1,435) | $ (1,566) | $ (2,752) | $ (3,615) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jul. 02, 2022 |
Jan. 01, 2022 |
Jul. 03, 2021 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 348,825,622 | 349,903,253 | 349,115,441 |
Common stock, shares outstanding | 348,825,622 | 349,903,253 | 349,115,441 |
Basis of Presentation |
6 Months Ended |
---|---|
Jul. 02, 2022 | |
Basis of Presentation [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. 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 interim 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. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 1, 2022. 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. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. Key Business Strategies In the first quarter of 2021, the Company announced that it reached the decision to exit its European Innerwear business as part of its strategy to streamline its portfolio under its Full Potential plan and determined that this business met held-for-sale and discontinued operations accounting criteria. Accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Condensed Consolidated Statements of Income, and to present the related assets and liabilities as held for sale in the Condensed Consolidated Balance Sheets. On November 4, 2021, the Company announced that it reached an agreement to sell its European Innerwear business to an affiliate of Regent, L.P. and completed the sale on March 5, 2022. Unless otherwise noted, discussion within these notes to the condensed consolidated interim financial statements relates to continuing operations. See Note “Assets and Liabilities Held for Sale” for additional information. In addition, in the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential plan and determined that this business met held-for-sale accounting criteria. The related assets and liabilities are presented as held for sale in the Condensed Consolidated Balance Sheets at July 2, 2022 and January 1, 2022. The operations of the U.S. Sheer Hosiery business are reported in “Other” for all periods presented in Note “Business Segment Information”. The Company is currently exploring potential purchasers for this business and expects to complete the sale within the next 12 months. See Note “Assets and Liabilities Held for Sale” for additional information. In June of 2022, the Company purchased the Champion trademark for footwear in the United States, Puerto Rico and Canada from Keds, LLC (“KEDS”) for $102,500. The trademark was recorded in “Trademarks and other identifiable intangibles, net” line in the Condensed Consolidated Balance Sheets and has an indefinite life. The Company previously licensed the Champion trademark for footwear in these locations. The purchase of the trademark was part of an agreement with KEDS settling litigation between the two parties and is another step forward in the Company’s Full Potential plan of growing the global Champion brand. Ransomware Attack On May 24, 2022, the Company identified that it had become subject to a ransomware attack and activated its incident response and business continuity plans designed to contain the incident. As part of the Company’s forensic investigation and assessment of the impact, the Company determined that certain of its information technology systems were affected by the ransomware attack. Upon discovering the incident, the Company took a series of measures to further safeguard the integrity of its information technology systems, including working with cybersecurity experts to contain the incident and implementing business continuity plans to restore and support continued operations. These measures also included resecuring data, remediation of the malware across infected machines, rebuilding critical systems, global password reset and enhanced security monitoring. The Company notified appropriate law enforcement authorities as well as certain data protection regulators, and will continue to evaluate and provide breach notifications or regulatory filings as may be required by applicable law as the Company continues its review of the scope and impact of the incident. At this time, the Company believes the incident has been contained. The Company has restored substantially all of its critical information technology systems, and manufacturing, retail and other internal operations continue. There is no ongoing operational impact on the Company’s ability to provide its products and services. The Company maintains insurance, including coverage for cyber-attacks, subject to certain deductibles and policy limitations, in an amount that the Company believes appropriate.During the quarter and six months ended July 2, 2022, the Company incurred costs of $15,509, net of expected insurance recoveries, related to the ransomware attack. The costs included $14,168 related primarily to supply chain disruptions, which are reflected in the “Cost of sales” line of the Condensed Consolidated Statements of Income and $1,341, net of expected insurance recoveries, related primarily to information technology, legal and consulting fees, which are reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income in the quarter and six months ended July 2, 2022. The Company continues to assess the security event and cannot determine, at this time, the full extent of the impact from such event on its business, results of operations or financial condition or whether such impact will ultimately have a material adverse effect.
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Recent Accounting Pronouncements |
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Jul. 02, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” The new accounting rules provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The new accounting rules can be adopted any time before the fourth quarter of 2022. 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, cash flows and disclosures and does not currently intend to early adopt the new rules. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The new accounting rules require entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The new accounting rules will be effective for the Company in the first quarter of 2023, including interim periods. Early adoption is permitted. The adoption impact of the new accounting rules will depend on the magnitude of future acquisitions. Derivatives and Hedging In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method.” The new accounting rules allow entities to expand the use of the portfolio layer method to all financial assets and designate multiple hedged layers within a single closed portfolio. The new accounting rules also clarify guidance related to hedge basis adjustments and the related disclosures for these adjustments. The new accounting rules will be effective for the Company in the first quarter of 2023, including interim periods. Early adoption is permitted. 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, cash flows and disclosures.
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure | Assets and Liabilities Held for Sale Assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheets as of July 2, 2022, January 1, 2022 and July 3, 2021 consist of the following:
U.S. Sheer Hosiery Business - Continuing Operations In the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential plan and determined that this business met held-for-sale accounting criteria. The related assets and liabilities are presented as held for sale in the Condensed Consolidated Balance Sheets at July 2, 2022 and January 1, 2022. The Company recorded a non-cash charge of $38,364 in the fourth quarter of 2021, to record a valuation allowance against the net assets held for sale to write down the carrying value of the disposal group to the estimated fair value less costs of disposal. The Company recorded non-cash gains of $4,340 and $10,868 to adjust the valuation allowance resulting from a decrease in carrying value due to changes in working capital in the quarter and six months ended July 2, 2022, respectively. The operations of the U.S. Sheer Hosiery business are reported in “Other” for all periods presented in Note “Business Segment Information”. The Company is currently exploring potential purchasers for this business and expects to complete the sale within the next 12 months. European Innerwear Business - Discontinued Operations In the first quarter of 2021, the Company announced that it reached the decision to exit its European Innerwear business as part of its strategy to streamline its portfolio under its Full Potential plan and determined that this business met held-for-sale and discontinued operations accounting criteria. Accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Condensed Consolidated Statements of Income, and to present the related assets and liabilities as held for sale in the Condensed Consolidated Balance Sheets. On November 4, 2021, the Company announced that it had reached an agreement to sell its European Innerwear business to an affiliate of Regent, L.P. and completed the sale on March 5, 2022. Under the agreement, the purchaser received all the assets and operating liabilities of the European Innerwear business. The operations of the European Innerwear business were previously reported primarily in the International segment. Upon meeting the criteria for held-for-sale classification in the first quarter of 2021 which qualified as a triggering event, the Company performed a full impairment analysis of the disposal group's indefinite-lived intangible assets and goodwill. As a result of the strategic decision to exit the European Innerwear business, forecasts were revised to include updated market conditions and the removal of strategic operating decisions that would no longer occur under the Company's ownership. The revised forecasts indicated impairment of certain indefinite-lived trademarks and license agreements as well as the full goodwill balance attributable to the European Innerwear business. As a result of this impairment analysis, a non-cash charge of $155,745 was recorded as "Impairment of intangible assets and goodwill" in the summarized discontinued operations financial information for the six months ended July 3, 2021. In addition, the Company recorded a valuation allowance against the net assets held for sale to write down the carrying value of the disposal group to the estimated fair value less costs of disposal, resulting in non-cash charges of $9,828 and $236,180 for the quarter and six months ended July 3, 2021, respectively, as "(Gain) loss on sale of business and classification of assets held for sale" in the summarized discontinued operations financial information. In the quarter and six months ended July 2, 2022, the Company recorded the final loss on the sale of the European Innerwear business of $560 and $373, respectively, primarily resulting from changes in working capital balances and foreign exchange rates. Additionally, the Company recorded an impairment charge of $7,302 in continuing operations on an indefinite-lived trademark for the six months ended July 3, 2021 which is reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Income. This charge related to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale. The Company has continued certain sales from its supply chain to the European Innerwear business on a transitional basis after the sale of the business. Under the terms of the Manufacturing and Supply Agreement that was signed as part of closing the transaction, the Company will provide these services for periods up to 34 months from the closing date of the transaction. Additionally, the Company entered into a Transitional Services Agreement pursuant to which the Company will provide transitional services including information technology, human resources, facilities management, and limited finance and accounting services for periods up to 12 months from the closing date of the transaction. The sales and the related profit are included in continuing operations in the Condensed Consolidated Statements of Income and in “Other” in Note “Business Segment Information” in all periods presented and have not been eliminated as intercompany transactions in consolidation for the period when the European Innerwear business was owned by the Company. The related receivables from the European Innerwear business are included in “Trade accounts receivable, net” in the Condensed Consolidated Balance Sheets for all periods presented. The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the European Innerwear business. Discontinued operations does not include any allocation of corporate overhead expense or interest expense. The key components from discontinued operations related to the European Innerwear business are as follows:
Assets and liabilities of discontinued operations classified as held for sale in the Condensed Consolidated Balance Sheets as of July 2, 2022, January 1, 2022 and July 3, 2021 consist of the following:
The cash flows related to discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information related to discontinued operations:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The following table presents the Company’s revenues disaggregated by the customer’s method of purchase:
Revenue Sources Third-Party Brick-and-Mortar Wholesale Revenue Third-party brick-and-mortar wholesale revenue is primarily generated by sales of the Company’s products to retailers to support their brick-and-mortar operations. Third-party brick-and-mortar wholesale revenue also includes royalty revenue from licensing agreements. The Company earns royalties through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensees. Consumer-Directed Revenue Consumer-directed revenue is primarily generated through sales driven directly by the consumer through company-operated stores and e-commerce platforms, which include both owned sites and the sites of the Company’s retail customers.
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Basic earnings per share (“EPS”) was computed by dividing net income (loss) by the number of weighted average shares of common stock outstanding during the period. Diluted EPS was calculated to give effect to all potentially issuable dilutive shares of common stock using the treasury stock method. The reconciliation of basic to diluted weighted average shares outstanding is as follows:
The following securities were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive:
On August 10, 2022, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share of the Company’s outstanding common stock to be paid on September 14, 2022 to stockholders of record at the close of business on August 24, 2022. On February 2, 2022, the Company’s Board of Directors approved a new share repurchase program for up to $600,000 of shares to be repurchased in open market transactions or privately negotiated transactions, subject to market conditions, legal requirements and other factors. Additionally, management has been granted authority to establish a trading plan under Rule 10b5-1 of the Exchange Act in connection with share repurchases, which will allow the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for the Company and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. The new program replaced the Company’s previous share repurchase program for up to 40,000 shares that was originally approved on February 6, 2020. For the quarter ended July 2, 2022, the Company did not enter into any transactions to repurchase shares under the new program. For the six months ended July 2, 2022, the Company entered into transactions to repurchase 1,577 shares at a weighted average repurchase price of $15.84 per share under the new program. The shares were repurchased at a total cost of $25,018 including broker’s commissions of $31. The Company did not repurchase any shares under the previous share repurchase program during 2022 through the expiration of the program on February 2, 2022 or during the quarter or six months ended July 3, 2021. At July 2, 2022, the remaining repurchase authorization under the current share repurchase program totaled $575,013.
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following:
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consisted of the following:
As of July 2, 2022, the Company had $634,940 of borrowing availability under the $1,000,000 Revolving Loan Facility after taking into account $358,000 of USD revolver loans and $7,060 of standby and trade letters of credit issued and outstanding under this facility. The Company’s accounts receivable securitization facility (the “ARS Facility”) entered into in November 2007 was amended in June 2022. The latest amendment increased the fluctuating facility limit to $225,000 (previously $175,000) and extended the maturity date to June 2023. Additionally, the amendment changed the Company’s interest rate option as defined in the ARS Facility from the rate announced from time to time by PNC Bank, N.A. as its prime rate or the London Interbank Offered Rate to the rate announced from time to time by PNC Bank, N.A. as its prime rate or the Secured Overnight Financing Rate and increased certain receivables to the pledged collateral pool for the facility. Borrowings under the Company’s ARS Facility are permitted only to the extent that the face of the receivables in the collateral pool, net of applicable concentrations, reserves and other deductions, exceeds the outstanding loans and also subject to a quarterly fluctuating facility limit, which is not to exceed $225,000. The Company’s maximum borrowing capacity as per the fluctuating limit under the ARS Facility was $200,000 as of July 2, 2022. The Company had $58,584 of borrowing availability under the ARS Facility at July 2, 2022. The Company had $23,798 of borrowing availability under other international credit facilities after taking into account outstanding borrowings and letters of credit outstanding under the applicable facilities at July 2, 2022. As of July 2, 2022, the Company was in compliance with all financial covenants under its credit facilities and other outstanding indebtedness. Under the terms of its Senior Secured Credit Facility, among other financial and non-financial covenants, the Company is required to maintain a minimum interest coverage ratio and a maximum leverage ratio, each of which is defined in the Senior Secured Credit Facility. The method of calculating all the components used in the covenants is included in the Senior Secured Credit Facility.
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Income Taxes |
6 Months Ended |
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Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective income tax rate was 17.0% and 14.6% for the quarters ended July 2, 2022 and July 3, 2021, respectively. The Company’s effective income tax rate was 17.0% and 12.6% for the six months ended July 2, 2022 and July 3, 2021, respectively. The higher effective tax rate for the quarter ended July 2, 2022 was primarily due to non-recurring discrete tax charges totaling $4,576 for adjustments related to prior period tax returns and measurement of deferred tax liabilities. The higher effective tax rate for the six months ended July 2, 2022 was primarily due to a non-recurring discrete tax benefit for the release of reserves for unrecognized tax benefits totaling $7,034, partially offset by a discrete charge for changes in valuation allowances of $3,672 during the six months ended July 3, 2021. |
Accumulated Other Comprehensive Loss |
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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:
(1)Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note “Financial Instruments and Risk Management” for additional disclosures about net investment hedges.
(1)Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges. The Company had the following reclassifications out of AOCI:
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Financial Instruments and Risk Management |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure Financial Instruments and Risk Management [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Risk Management | Financial Instruments and Risk Management The Company uses forward foreign exchange contracts and cross-currency swap contracts to manage its exposures to movements in foreign exchange rates primarily related to the Australian dollar, Euro, Canadian dollar and Mexican peso. The Company also uses a combination of cross-currency swap contracts and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in its European subsidiaries.
Fair Values of Derivative Instruments The fair values of derivative instruments related to forward foreign exchange contracts and cross-currency swap contracts recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:
Cash Flow Hedges The Company uses forward foreign exchange contracts and cross-currency swap contracts to reduce the effect of fluctuating foreign currencies on 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. On April 1, 2021, in connection with a reduction in the amount of the 3.5% Senior Notes designated in the European net investment hedge discussed below, the Company entered into three pay-fixed rate, receive-fixed rate cross-currency swap contracts with a total notional amount of €300,000. The Company designated these cross-currency swap contracts to hedge the undesignated portion of the foreign currency cash flow exposure related to the Company’s 3.5% Senior Notes, which had a carrying amount of €500,000 as of July 2, 2022. These cross-currency swap contracts, which mature on June 15, 2024, swap Euro-denominated interest payments for U.S. dollar-denominated interest payments, thereby economically converting €300,000 of the Company’s €500,000 fixed-rate 3.5% Senior Notes to a fixed-rate 4.7945% USD-denominated obligation. The Company expects to reclassify into earnings during the next 12 months a net gain from AOCI of approximately $3,373. The Company is hedging exposure to the variability in future foreign currency-denominated cash flows for forecasted transactions over the next 15 months and for long-term debt over the next 24 months. The effect of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Income and AOCI is as follows:
(1)The Company does not exclude amounts from effectiveness testing for cash flow hedges that would require recognition into earnings based on changes in fair value. The following table presents the amounts in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded:
Net Investment Hedges In July 2019, the Company entered into two pay-fixed rate, receive-fixed rate cross-currency swap contracts with a total notional amount of €300,000 that were designated as hedges of a portion of the beginning balance of the Company’s net investment in its European subsidiaries. These cross-currency swap contracts, which mature on May 15, 2024, swap U.S. dollar-denominated interest payments for Euro-denominated interest payments, thereby economically converting a portion of the Company’s fixed-rate 4.625% Senior Notes to a fixed-rate 2.3215% Euro-denominated obligation. In July 2019, the Company also designated the full amount of its 3.5% Senior Notes with a carrying value of €500,000, which is a nonderivative financial instrument, as a hedge of a portion of the beginning balance of the Company’s European net investment. As of April 1, 2021, the Company reduced the amount of its 3.5% Senior Notes designated in the European net investment hedge from €500,000 to €200,000. As of July 2, 2022 and January 1, 2022, the U.S. dollar equivalent carrying value of Euro-denominated long-term debt designated as a partial European net investment hedge was $208,501 and $227,454, respectively. The amount of after-tax gains (losses) included in AOCI in the Condensed Consolidated Balance Sheets related to derivative instruments and nonderivative financial instruments designated as net investment hedges are as follows:
The effect of derivative and non-derivative instruments designated as net investment hedges on the Condensed Consolidated Statements of Income are as follows:
The following table presents the amounts in the Condensed Consolidated Statements of Income in which the effects of net investment hedges are recorded:
Mark to Market Hedges Derivatives used in mark to market hedges are not designated as hedges under the accounting standards. The Company uses forward foreign exchange derivative contracts as hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany lending transactions denominated in foreign currencies. Forward foreign exchange derivative contracts are recorded as mark to market hedges when the hedged item is a recorded asset or liability that is revalued in each accounting period. 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 instruments not designated as hedges on the Condensed Consolidated Statements of Income is as follows:
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Fair Value of Assets and Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities As of July 2, 2022 and January 1, 2022, 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 forward foreign exchange derivative contracts, cross-currency swap derivative contracts and deferred compensation plan liabilities. The fair values of forward foreign exchange derivative contracts are determined using the cash flows of the forward contracts, discount rates to account for the passage of time and current foreign exchange market data which are all based on inputs readily available in public markets and are categorized as Level 2. The fair values of cross-currency swap derivative contracts are determined using the cash flows of the swap contracts, discount rates to account for the passage of time, current foreign exchange and interest rate market data and credit risk, which are all based on inputs readily available in public markets and are categorized as Level 2. The fair value of deferred compensation plan liabilities is based on readily available current market data and is categorized as Level 2. The Company’s defined benefit pension plan investments are not required to be measured at fair value or disclosed on a quarterly recurring basis. There were no changes during the quarter and the six months ended July 2, 2022 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of and during the quarter and the six months ended July 2, 2022, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring basis 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.
Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade accounts receivable and accounts payable approximated fair value as of July 2, 2022 and January 1, 2022. The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $65,534 and $61,948 as of July 2, 2022 and January 1, 2022, respectively. The fair value of debt, which is classified as a Level 2 liability, was $3,576,798 and $3,504,412 as of July 2, 2022 and January 1, 2022, respectively. Debt had a carrying value of $3,771,576 and $3,368,634 as of July 2, 2022 and January 1, 2022, 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.
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Business Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information 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 team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S.-based outlet stores, U.S. Sheer Hosiery business and certain sales from its supply chain and transitional services with the European Innerwear business which was sold on March 5, 2022. In the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential plan. See Note “Assets and Liabilities Held for Sale” for additional information. The types of products and services from which each reportable segment derives its revenues are as follows: •Innerwear includes sales in the United States of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear. •Activewear includes sales in the United States of branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel. •International primarily includes sales of the Company’s innerwear and activewear products outside the United States, primarily in Australasia, Europe, Asia, Latin America and Canada. The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, restructuring and other action-related charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 1, 2022.
The Company incurred restructuring and other action-related charges that were reported in the following lines in the Condensed Consolidated Statements of Income:
The components of restructuring and other action-related charges were as follows:
Restructuring and other action-related charges within operating profit included $6,380 and $18,664 of charges related to the implementation of the Company’s Full Potential plan in the quarters ended July 2, 2022 and July 3, 2021, respectively. Full Potential plan charges in the quarter ended July 2, 2022 included a non-cash gain of $4,340, which is reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income, to adjust the valuation allowance related to the U.S. Sheer Hosiery business resulting from a decrease in carrying value due to changes in working capital. Restructuring and other action-related charges within operating profit included $11,182 and $38,057 of charges related to the implementation of the Company’s Full Potential plan in the six months ended July 2, 2022 and July 3, 2021, respectively. Full Potential plan charges in the six months ended July 2, 2022 included a non-cash gain of $10,868, which is reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income, to adjust the valuation allowance related to the U.S. Sheer Hosiery business resulting from a decrease in carrying value due to changes in working capital. Full Potential plan charges in the six months ended July 3, 2021 included impairment charges of $7,302, which are reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income, related to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale. In the third quarter of 2021, the Company recorded a charge for an action to resize its U.S. corporate office workforce through a voluntary retirement program which was included in restructuring and other action-related charges. At January 1, 2022, the accrual for employee termination and other benefits related to the Company’s 2021 voluntary retirement program was $15,688. The Company made benefit payments and other accrual adjustments of $7,869 during the six months ended July 2, 2022, resulting in an ending accrual of $7,819 which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheets at July 2, 2022.
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Assets and Liabilities Held for Sale (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Held for Sale | Assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheets as of July 2, 2022, January 1, 2022 and July 3, 2021 consist of the following:
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Discontinued Operations Tables | The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the European Innerwear business. Discontinued operations does not include any allocation of corporate overhead expense or interest expense. The key components from discontinued operations related to the European Innerwear business are as follows:
Assets and liabilities of discontinued operations classified as held for sale in the Condensed Consolidated Balance Sheets as of July 2, 2022, January 1, 2022 and July 3, 2021 consist of the following:
The cash flows related to discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information related to discontinued operations:
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Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by the customer’s method of purchase:
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Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic to Diluted Weighted Average Shares | The reconciliation of basic to diluted weighted average shares outstanding is as follows:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt consisted of the following:
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Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note “Financial Instruments and Risk Management” for additional disclosures about net investment hedges.
(1)Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges.
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Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The Company had the following reclassifications out of AOCI:
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Financial Instruments and Risk Management (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Financial Instruments and Risk Management [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions |
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Fair Values of Derivative Instruments | The fair values of derivative instruments related to forward foreign exchange contracts and cross-currency swap contracts recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:
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Effect of Cash Flow Hedge Derivative Instruments | The effect of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Income and AOCI is as follows:
(1)The Company does not exclude amounts from effectiveness testing for cash flow hedges that would require recognition into earnings based on changes in fair value. The following table presents the amounts in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded:
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Effect of Net Investment Hedge Derivative Instruments | The amount of after-tax gains (losses) included in AOCI in the Condensed Consolidated Balance Sheets related to derivative instruments and nonderivative financial instruments designated as net investment hedges are as follows:
The effect of derivative and non-derivative instruments designated as net investment hedges on the Condensed Consolidated Statements of Income are as follows:
The following table presents the amounts in the Condensed Consolidated Statements of Income in which the effects of net investment hedges are recorded:
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Effect of Mark to Market Hedge Derivative Instruments | The effect of derivative instruments not designated as hedges on the Condensed Consolidated Statements of Income is as follows:
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Fair Value of Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [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.
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Business Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
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Segment Operating Profit |
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Restructuring and other action-related charges | The Company incurred restructuring and other action-related charges that were reported in the following lines in the Condensed Consolidated Statements of Income:
The components of restructuring and other action-related charges were as follows:
|
Basis of Presentation (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jul. 02, 2022 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Purchase of trademarks | $ 103,000,000 | $ 0 | |
Ransomware Attack | |||
Ransomware Recovery Costs Net [Line Items] | |||
Ransomware Recovery Costs Net | $ 15,509,000 | 15,509,000 | |
Ransomware Attack | Cost of sales | |||
Ransomware Recovery Costs Net [Line Items] | |||
Ransomware Recovery Costs Net | 14,168,000 | 14,168,000 | |
Ransomware Attack | Selling, general and administrative expenses | |||
Ransomware Recovery Costs Net [Line Items] | |||
Ransomware Recovery Costs Net | 1,341,000 | 1,341,000 | |
Champion footwear trademark | |||
Purchase of trademarks | $ 102,500,000 | $ 102,500,000 |
Assets and Liabilities Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands |
Jul. 02, 2022 |
Jan. 01, 2022 |
Jul. 03, 2021 |
---|---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets held for sale | $ 12,094 | $ 327,157 | $ 301,986 |
Current liabilities held for sale | 12,094 | 316,902 | 289,751 |
Continuing Operations, Disposal Group, Held-for-sale | U.S. Sheer Hosiery Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets held for sale | 12,094 | 5,426 | 0 |
Current liabilities held for sale | 12,094 | 5,426 | 0 |
Discontinued Operations, Held-for-sale | European Innerwear Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets held for sale | 0 | 321,731 | 301,986 |
Current liabilities held for sale | $ 0 | $ 311,476 | $ 289,751 |
Discontinued Operations - Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Gain) Loss on Sale of Business and Classification of Assets Held For Sale | $ (10,495) | $ 236,180 | ||
Discontinued Operations, Held-for-sale | European Innerwear Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | $ 0 | $ 0 | 0 | 2,608 |
Amortization | 0 | 0 | 0 | 1,460 |
Capital expenditures | 0 | 735 | 715 | 4,070 |
Impairment of intangible assets and goodwill | 0 | 0 | 0 | 155,745 |
(Gain) Loss on Sale of Business and Classification of Assets Held For Sale | 560 | 9,828 | 373 | 236,180 |
Capital expenditures included in accounts payable at end of period | 0 | 1,580 | 0 | 3,374 |
Right-of-use assets obtained in exchange for lease obligations | $ 0 | $ 1,642 | $ 0 | $ 3,137 |
Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Disaggregation of Revenue | ||||
Net sales | $ 1,513,467 | $ 1,751,311 | $ 3,089,623 | $ 3,259,340 |
Third-party brick-and-mortar wholesale | ||||
Disaggregation of Revenue | ||||
Net sales | 1,029,645 | 1,233,531 | 2,155,911 | 2,258,270 |
Consumer-directed | ||||
Disaggregation of Revenue | ||||
Net sales | $ 483,822 | $ 517,780 | $ 933,712 | $ 1,001,070 |
Stockholders' Equity Reconciliation of Basic to Diluted Weighted Average Shares (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Reconciliation of basic to diluted weighted average shares [Line Items] | ||||
Basic weighted average shares outstanding | 349,772 | 350,987 | 350,012 | 350,995 |
Diluted weighted average shares outstanding | 350,303 | 352,052 | 350,878 | 351,869 |
Stock options | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 24 | 4 | 16 |
Restricted stock units | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 523 | 1,039 | 856 | 855 |
Employee stock purchase plan and other | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 8 | 2 | 6 | 3 |
Inventories (Details) - USD ($) $ in Thousands |
Jul. 02, 2022 |
Jan. 01, 2022 |
Jul. 03, 2021 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 103,315 | $ 68,683 | $ 72,436 |
Work in process | 123,842 | 110,246 | 101,862 |
Finished goods | 1,863,554 | 1,405,086 | 1,356,324 |
Total Inventories | $ 2,090,711 | $ 1,584,015 | $ 1,530,622 |
Debt - Additional Information (Detail) - USD ($) $ in Thousands |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jan. 01, 2022 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 3,771,576 | $ 3,368,634 | |
Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | 634,940 | ||
Maximum Borrowing Capacity | 1,000,000 | ||
Standby and trade letters of credit issued | 7,060 | ||
Long-term debt, gross | 358,000 | 0 | |
Accounts Receivable Securitization Facility | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | 58,584 | ||
Maximum Borrowing Capacity | 225,000 | $ 175,000 | |
Current Borrowing Capacity | 200,000 | ||
Long-term debt, gross | 104,700 | $ 0 | |
Other International Debt | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 23,798 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Effective income tax rate, percent | 17.00% | 14.60% | 17.00% | 12.60% |
Income tax expense | $ 18,980 | $ 25,236 | $ 42,365 | $ 39,933 |
Discrete benefit for the release of reserves for unrecognized tax benefits [Member] | ||||
Income tax expense | (7,034) | |||
Discrete charge for changes in valuation allowance | ||||
Income tax expense | $ 3,672 | |||
Discrete tax charges for adjustments related to prior period tax returns and measurement of deferred tax liabilities | ||||
Income tax expense | $ 4,576 |
Financial Instruments and Risk Management - Notional Amounts of Derivative Instruments (Details) € in Thousands, $ in Thousands |
Jul. 02, 2022
USD ($)
|
Jan. 01, 2022
USD ($)
|
Apr. 01, 2021
EUR (€)
|
Jul. 10, 2019
EUR (€)
|
---|---|---|---|---|
Forward foreign exchange contract | Cash Flow and Mark to Market Hedges | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 303,733 | $ 308,071 | ||
Cross-currency swap contract | Cash Flow Hedge | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 352,920 | 352,920 | € 300,000 | |
Cross-currency swap contract | Net Investment Hedge | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 335,940 | $ 335,940 | € 300,000 |
Financial Instruments and Risk Management - Effect of Mark to Market Hedge Derivative Instruments (Details) - Forward foreign exchange contract - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | $ 6,363 | $ 7,823 | $ 2,453 | $ 25,668 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | 6,841 | 5,629 | 2,639 | 18,624 |
Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | (478) | 880 | (186) | 3,091 |
Income (loss) from discontinued operations, net of tax | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | $ 0 | $ 1,314 | $ 0 | $ 3,953 |
Fair Value of Assets and Liabilities (Additional Information) (Details) - USD ($) $ in Thousands |
Jul. 02, 2022 |
Jan. 01, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 65,534 | $ 61,948 |
Carrying value of debt | 3,771,576 | 3,368,634 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 3,576,798 | $ 3,504,412 |
Business Segment Information - Net Sales (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022
USD ($)
|
Jul. 03, 2021
USD ($)
|
Jul. 02, 2022
USD ($)
numberOfSegments
|
Jul. 03, 2021
USD ($)
|
|
Schedule Of Sales Revenue By Business Segment [Line Items] | ||||
Number of operating segments | numberOfSegments | 3 | |||
Net sales | $ 1,513,467 | $ 1,751,311 | $ 3,089,623 | $ 3,259,340 |
Innerwear | ||||
Schedule Of Sales Revenue By Business Segment [Line Items] | ||||
Net sales | 685,778 | 780,650 | 1,264,725 | 1,351,085 |
Activewear | ||||
Schedule Of Sales Revenue By Business Segment [Line Items] | ||||
Net sales | 330,400 | 404,189 | 717,337 | 768,192 |
International | ||||
Schedule Of Sales Revenue By Business Segment [Line Items] | ||||
Net sales | 424,189 | 478,923 | 934,318 | 985,184 |
Other | ||||
Schedule Of Sales Revenue By Business Segment [Line Items] | ||||
Net sales | $ 73,100 | $ 87,549 | $ 173,243 | $ 154,879 |
Business Segment Information - Segment Operating Profit (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2022 |
Jul. 03, 2021 |
Jul. 02, 2022 |
Jul. 03, 2021 |
|
Segment operating profit: | ||||
Total operating profit | $ 147,254 | $ 217,394 | $ 317,766 | $ 407,516 |
Operating profit | ||||
General corporate expenses | (64,840) | (54,685) | (122,068) | (114,508) |
Amortization of intangibles | (7,328) | (7,593) | (14,683) | (15,332) |
Other expenses | (1,889) | (1,855) | (2,876) | (4,416) |
Interest expense, net | (33,724) | (42,440) | (65,687) | (86,900) |
Income from continuing operations before income tax expense | 111,641 | 173,099 | 249,203 | 316,200 |
Operating Profit | ||||
Operating profit | ||||
Restructuring and other action-related charges | (6,380) | (18,664) | (11,182) | (38,057) |
Innerwear | ||||
Segment operating profit: | ||||
Total operating profit | 141,659 | 186,169 | 243,805 | 313,586 |
Activewear | ||||
Segment operating profit: | ||||
Total operating profit | 22,857 | 41,047 | 71,841 | 101,641 |
International | ||||
Segment operating profit: | ||||
Total operating profit | 55,953 | 61,900 | 145,391 | 149,080 |
Other | ||||
Segment operating profit: | ||||
Total operating profit | 5,333 | 9,220 | 4,662 | 11,106 |
Total segment operating profit | ||||
Segment operating profit: | ||||
Total operating profit | $ 225,802 | $ 298,336 | $ 465,699 | $ 575,413 |
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