Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 04, 2015 | Jul. 24, 2015 | |
Document Information [Abstract] | ||
Entity Registrant Name | CARTERS INC | |
Entity Central Index Key | 1,060,822 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 4, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 52,244,408 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Current assets: | |||
Cash and cash equivalents | $ 244,301 | $ 340,638 | $ 207,920 |
Accounts receivable, net | 157,145 | 184,563 | 133,885 |
Finished goods inventories | 544,256 | 444,844 | 538,233 |
Prepaid expenses and other current assets | 48,475 | 34,788 | 43,684 |
Deferred income taxes | 31,871 | 36,625 | 36,534 |
Total current assets | 1,026,048 | 1,041,458 | 960,256 |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 353,138 | 333,097 | 325,675 |
Tradenames and other intangibles, net | 312,836 | 317,297 | 318,346 |
Goodwill | 178,753 | 181,975 | 186,173 |
Deferred debt issuance costs, net | 5,952 | 6,677 | 7,407 |
Other assets | 12,842 | 12,592 | 11,305 |
Total assets | 1,889,569 | 1,893,096 | 1,809,162 |
Current liabilities: | |||
Accounts payable | 145,809 | 150,243 | 164,199 |
Other current liabilities | 76,451 | 97,728 | 75,561 |
Total current liabilities | 222,260 | 247,971 | 239,760 |
Long-term debt | 586,298 | 586,000 | 586,000 |
Deferred income taxes | 119,230 | 121,536 | 114,878 |
Other long-term liabilities | 158,842 | 150,905 | 148,152 |
Total liabilities | $ 1,086,630 | $ 1,106,412 | $ 1,088,790 |
Commitments and contingencies - Note 13 | |||
Stockholders' equity: | |||
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at July 4, 2015, January 3, 2015, and June 28, 2014 | $ 0 | $ 0 | $ 0 |
Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 52,331,208, 52,712,193, and 53,311,864 shares issued and outstanding at July 4, 2015, January 3, 2015 and June 28, 2014, respectively | 523 | 527 | 533 |
Additional paid-in capital | 0 | 0 | 0 |
Accumulated other comprehensive loss | (29,275) | (23,037) | (10,050) |
Retained earnings | 831,691 | 809,194 | 729,889 |
Total stockholders' equity | 802,939 | 786,684 | 720,372 |
Total liabilities and stockholders' equity | $ 1,889,569 | $ 1,893,096 | $ 1,809,162 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Statement of Financial Position [Abstract] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 257,394 | $ 245,011 | $ 220,847 |
Preferred stock; par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized | 100,000 | 100,000 | 100,000 |
Preferred stock; issued | 0 | 0 | 0 |
Preferred stock; outstanding | 0 | 0 | 0 |
Common stock, voting; par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, voting; shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock voting; shares issued | 52,977,519 | 54,541,879 | 54,542,594 |
Common stock voting; shares outstanding | 52,977,519 | 54,541,879 | 54,542,594 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 612,765 | $ 574,065 | $ 1,297,529 | $ 1,225,709 |
Cost of goods sold | 349,870 | 328,588 | 750,582 | 718,507 |
Gross profit | 262,895 | 245,477 | 546,947 | 507,202 |
Selling, general, and administrative expenses | 209,296 | 206,315 | 420,479 | 416,410 |
Royalty income | (8,353) | (8,185) | (19,989) | (18,086) |
Operating income | 61,952 | 47,347 | 146,457 | 108,878 |
Interest expense | 6,935 | 6,882 | 13,627 | 13,780 |
Interest income | (157) | (140) | (294) | (272) |
Other (income) expense, net | (1,900) | (189) | 62 | 407 |
Income before income taxes | 57,074 | 40,794 | 133,062 | 94,963 |
Provision for income taxes | 20,969 | 14,897 | 47,165 | 34,770 |
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 |
Diluted net income per common share | $ 0.69 | $ 0.48 | $ 1.63 | $ 1.12 |
Dividend declared and paid per common share | 0.68 | 0.48 | 1.62 | 1.11 |
Dividend declared per common share | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (244) | 2,792 | (6,238) | 32 |
Comprehensive income | $ 35,861 | $ 28,689 | $ 79,659 | $ 60,225 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 6 months ended Jul. 04, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
Balance at Jan. 03, 2015 | $ 786,684,000 | $ 527,000 | $ 0 | $ (23,037,000) | $ 809,194,000 |
Balance (in shares) at Jan. 03, 2015 | 54,541,879 | 52,712,193 | |||
Income tax benefit from stock-based compensation | $ 6,890,000 | 6,890,000 | |||
Exercise of stock options | 4,560,000 | $ 1,000 | 4,559,000 | ||
Exercise of stock options (in shares) | 128,050 | ||||
Withholdings from vesting of restricted stock | (12,377,000) | $ (1,000) | (12,376,000) | ||
Withholdings from vesting of restricted stock (in shares) | (144,468) | ||||
Restricted stock activity | 0 | $ 1,000 | (1,000) | ||
Restricted stock activity (in shares) | 128,725 | ||||
Stock-based compensation expense | 8,465,000 | $ 0 | 8,465,000 | ||
Stock Issued During Period, Shares, New Issues | 10,933 | ||||
Stock Issued During Period, Value, New Issues | 1,095,000 | 1,095,000 | |||
Repurchase of common stock | (48,894,000) | $ (5,000) | 8,632,000 | (40,257,000) | |
Repurchase of common stock (in shares) | (504,225) | ||||
Cash dividends declared and paid | (23,143,000) | (23,143,000) | |||
Comprehensive income (loss) | 79,659,000 | (6,238,000) | 85,897,000 | ||
Balance at Jul. 04, 2015 | $ 802,939,000 | $ 523,000 | $ 0 | $ (29,275,000) | $ 831,691,000 |
Balance (in shares) at Jul. 04, 2015 | 52,977,519 | 52,331,208 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 85,897 | $ 60,193 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,338 | 29,679 |
Amortization of tradenames | 4,429 | 11,877 |
Accretion of contingent consideration | 809 | 451 |
Amortization of debt issuance costs | 678 | 763 |
Non-cash stock-based compensation expense | 9,560 | 9,829 |
Unrealized foreign currency exchange loss, net | 84 | 0 |
Income tax benefit from stock-based compensation | (6,890) | (3,750) |
Loss on disposal of property, plant, and equipment | 90 | 544 |
Deferred income taxes | 1,886 | (5,626) |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | 28,649 | 59,761 |
Inventories | (103,379) | (120,383) |
Prepaid expenses and other assets | (14,244) | (9,979) |
Accounts payable and other liabilities | (10,775) | (235) |
Net cash provided by operating activities | 27,132 | 33,124 |
Cash flows from investing activities: | ||
Capital expenditures | (50,284) | (61,300) |
Proceeds from sale of property, plant, and equipment | 43 | 134 |
Net cash used in investing activities | (50,241) | (61,166) |
Cash flows from financing activities: | ||
Payments of debt issuance costs | 0 | (114) |
Borrowings under secured revolving credit facility | 20,349 | 0 |
Payments on secured revolving credit facility | 20,000 | 0 |
Repurchase of common stock | (48,894) | (36,080) |
Dividends paid | (23,143) | (20,380) |
Income tax benefit from stock-based compensation | 6,890 | 3,750 |
Withholdings from vesting of restricted stock | (12,377) | (4,251) |
Proceeds from exercise of stock options | 4,560 | 6,548 |
Net cash used in financing activities | 72,615 | 50,527 |
Effect of exchange rate changes on cash | (613) | (57) |
Net decrease in cash and cash equivalents | (96,337) | (78,626) |
Cash and cash equivalents, beginning of period | 340,638 | 286,546 |
Cash and cash equivalents, end of period | $ 244,301 | $ 207,920 |
THE COMPANY
THE COMPANY | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | THE COMPANY Carter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company,” “its,” "us" and "our") design, source, and market branded childrenswear under the Carter’s, Child of Mine, Just One You, Precious Firsts , OshKosh , and other brands. The Company's products are sourced through contractual arrangements with manufacturers worldwide for wholesale distribution to major domestic and international retailers and for the Company's own retail stores and websites that market its brand name merchandise and other licensed products manufactured by other companies. As of July 4, 2015 , the Company operated 562 Carter’s stores in the United States, 221 OshKosh stores in the United States, and 133 stores in Canada. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION The accompanying unaudited condensed consolidated financial statements include the accounts of Carter's, Inc. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income, statement of stockholder’s equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter and two fiscal quarters ended July 4, 2015 are not necessarily indicative of the results that may be expected for the 2015 fiscal year ending January 2, 2016 . The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The accompanying condensed consolidated balance sheet as of January 3, 2015 was derived from the Company's audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q. The accounting policies the Company follows are set forth in the Company's Annual Report on Form 10-K for the 2014 fiscal year ended January 3, 2015 . There have been no material changes to these accounting policies, except as disclosed in note 10, Fair Value Measurements , to update the Company's accounting policy for foreign currency hedging activities. The Company's fiscal year ends on the Saturday in December or January, nearest the last day of December, resulting in an additional week of results every five or six years. As a result, fiscal 2014, which ended on January 3, 2015 , contained 53 weeks. Fiscal 2015, which will end on January 2, 2016, contains 52 weeks. The first and second quarters of fiscal 2015 and fiscal 2014 each contained 13 weeks. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jul. 04, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components, net of applicable income taxes, of accumulated other comprehensive (loss) consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Cumulative foreign currency translation adjustments $ (21,635 ) $ (15,397 ) $ (7,520 ) Pension and post-retirement liability adjustments (7,640 ) (7,640 ) (2,530 ) Total accumulated other comprehensive loss $ (29,275 ) $ (23,037 ) $ (10,050 ) Changes in accumulated other comprehensive loss for the second quarter and first two quarters of fiscal 2015 consisted of additional losses for foreign currency translation adjustments of approximately $0.2 million and $6.2 million , respectively. Changes consisted of gains for foreign currency translation adjustments of approximately $2.8 million for the second quarter of fiscal 2014 and were immaterial for the first two quarters of fiscal 2014. During the first and second quarters of both fiscal 2015 and fiscal 2014, no amounts were reclassified from accumulated other comprehensive loss to the statement of operations. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and other intangible assets were as follows: July 4, 2015 January 3, 2015 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s goodwill Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Bonnie Togs goodwill Indefinite 42,183 — 42,183 45,405 — 45,405 Total goodwill $ 178,753 $ — $ 178,753 $ 181,975 $ — $ 181,975 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Other tradenames 2-20 years 42,036 34,933 7,103 42,073 30,541 11,532 Total tradenames 347,769 34,933 312,836 347,806 30,541 317,265 Non-compete agreements 4 years 219 219 — 257 225 32 Total tradenames and other intangibles, net $ 347,988 $ 35,152 $ 312,836 $ 348,063 $ 30,766 $ 317,297 June 28, 2014 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter’s goodwill Indefinite $ 136,570 $ — $ 136,570 Bonnie Togs goodwill Indefinite 49,603 — 49,603 Total goodwill $ 186,173 $ — $ 186,173 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 Other tradenames 2-3 years 38,570 26,028 12,542 Total tradenames 344,303 26,028 318,275 Non-compete agreements 4 years 281 210 71 Total tradenames and other intangibles, net $ 344,584 $ 26,238 $ 318,346 ` The Company recorded approximately $2.1 million and $4.4 million in amortization expense for the fiscal quarter and two fiscal quarters ended July 4, 2015 , respectively, and approximately $5.6 million and $11.9 million in amortization expense for the fiscal quarter and two fiscal quarters ended June 28, 2014 , respectively. At July 4, 2015 , the estimated future amortization expense for these assets is approximately $2.0 million for the remainder of fiscal 2015, $1.9 million for fiscal 2016, $0.2 million for each fiscal year 2017, 2018 and 2019, and $2.6 million thereafter. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Jul. 04, 2015 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | COMMON STOCK SHARE REPURCHASES In the second quarter of fiscal 2013, the Company's Board of Directors authorized the repurchase of shares in an amount up to $300 million , inclusive of amounts remaining under previous authorizations. In the third quarter of 2013, the Board approved an additional $400 million share repurchase authorization. The total remaining capacity under the repurchase authorizations as of July 4, 2015 was approximately $136.2 million , based on settled repurchase transactions. The authorizations have no expiration date. Open Market Repurchases The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: Fiscal quarter ended Two fiscal quarters ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Number of shares repurchased 346,325 477,551 504,225 499,151 Aggregate cost of shares repurchased (in millions) $ 34.8 $ 34.4 $ 48.9 $ 36.1 Average price per share $ 100.40 $ 72.10 $ 96.97 $ 72.28 Future repurchases may occur from time to time in the open market, in negotiated transactions, or otherwise. The timing and amount of any repurchases will be determined by the Company’s management, based on its evaluation of market conditions, share price, other investment priorities, and other factors. Accelerated Stock Repurchase Program On August 29, 2013 , the Company entered into a $300 million fixed-dollar uncollared accelerated stock repurchase agreements (the "ASR agreements") and a $100 million fixed-dollar collared accelerated stock repurchase agreements, each with JPMorgan Chase Bank, N. A. The ASR agreements were settled in January 2014 . As of the date of settlement, the Company had received a total of approximately 5.6 million shares, of which one million shares were received in January 2014 . All shares received under the ASR agreements were retired upon receipt. DIVIDENDS During the second quarter of fiscal 2015 and fiscal 2014, the Company paid cash dividends per share of $ 0.22 and $ 0.19 , respectively. During the first two quarters of fiscal 2015 and fiscal 2014, the Company paid cash dividends per share of $0.44 and $0.38 , respectively. Future declarations of dividends and the establishment of future record and payment dates are at the discretion of the Company's Board of Directors and based on a number of factors including the Company's future financial performance and other investment priorities. Provisions in the Company's secured revolving credit facility and indenture governing its senior notes could have the effect of restricting the Company's ability to pay future cash dividends on, or make future repurchases of, its common stock as further described in the Company's Annual Report for Form 10-K for the 2014 fiscal year ended January 3, 2015. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jul. 04, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Senior notes $ 400,000 $ 400,000 $ 400,000 Secured revolving credit facility 186,298 186,000 186,000 Total long-term debt $ 586,298 $ 586,000 $ 586,000 Secured Revolving Credit Facility As of July 4, 2015 , the Company had $186.3 million in outstanding borrowings under its secured revolving credit facility, exclusive of $6.4 million of outstanding letters of credit. In the first quarter of fiscal 2015, the Company replaced $20.0 million of outstanding borrowings with CAD $ 25.5 million of borrowings in Canadian dollars, which approximated $20.3 million and is still outstanding as of July 4, 2015 . Amounts outstanding under the revolving credit facility currently accrue interest at a LIBOR rate plus Base Rate , which as of July 4, 2015 was 1.93% for U.S. dollar borrowings and at CDOR plus Base Rate, which as of July 4, 2015 was 2.74% , for Canadian dollar borrowings. As of July 4, 2015 , there was approximately $182.3 million available for future borrowing. As of July 4, 2015 , the Company was in compliance with the financial debt covenants under the secured revolving credit facility. Senior Notes As of July 4, 2015 , The William Carter Company ("TWCC" or the "Subsidiary Issuer"), a 100% owned subsidiary of Carter's, Inc., had outstanding $400 million principal amount of senior notes bearing interest at a fixed rate of 5.25% per annum and maturing on August 15, 2021. The senior notes are unsecured and are fully and unconditionally guaranteed by Carter's, Inc. and certain subsidiaries of TWCC. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company recorded stock-based compensation cost as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock options $ 1,020 $ 1,089 $ 2,344 $ 2,459 Restricted stock: Time-based awards 1,612 1,697 3,695 3,639 Performance-based awards 1,093 1,427 2,426 2,650 Stock awards 1,095 1,081 1,095 1,081 Total $ 4,820 $ 5,294 $ 9,560 $ 9,829 All stock-based compensation expense was reflected as a component of selling, general, and administrative expenses, where other forms of compensation were recorded. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jul. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company maintains a defined contribution plan and two defined benefit plans. The two defined benefit plans include the OshKosh B'Gosh pension plan and a post-retirement life and medical plan. OSHKOSH B'GOSH PENSION PLAN The net periodic pension (benefit) cost included in the statement of operations was comprised of: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Interest cost $ 623 $ 622 $ 1,246 $ 1,244 Expected return on plan assets (785 ) (798 ) (1,570 ) (1,596 ) Recognized actuarial loss 161 21 322 42 Net periodic pension (benefit) cost $ (1 ) $ (155 ) $ (2 ) $ (310 ) POST-RETIREMENT LIFE AND MEDICAL PLAN The components of post-retirement benefit expense charged to the statement of operations were as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost – benefits attributed to service during the period $ 32 $ 28 $ 64 $ 56 Interest cost on accumulated post-retirement benefit obligation 45 57 90 114 Amortization net actuarial gain (48 ) (52 ) (96 ) (104 ) Curtailment gain — (22 ) — (44 ) Total net periodic post-retirement benefit cost $ 29 $ 11 $ 58 $ 22 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jul. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the first quarter of fiscal 2015 , the Company recognized prior-year income tax benefits of approximately $1.8 million due to a favorable settlement of an IRS audit of fiscal 2011, 2012 and 2013, in addition to a favorable settlement of a state income tax audit. These settlements have decreased the Company's effective tax rate during fiscal 2015 compared to fiscal 2014 . As of July 4, 2015 , the Company had gross unrecognized income tax benefits of approximately $9.8 million , of which $6.6 million , if ultimately recognized, may affect the Company’s effective tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions. Included in the reserves for unrecognized tax benefits at July 4, 2015 are approximately $1.7 million of reserves for which the statute of limitations is expected to expire within the next fiscal year. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective tax rate for fiscal 2015 or fiscal 2016 along with the effective tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized tax benefits as a component of income tax expense. During the fiscal quarter and two fiscal quarters ended July 4, 2015 and June 28, 2014 , interest expense recorded on uncertain tax positions was not significant. The Company had approximately $0.9 million , $0.9 million , and $0.9 million of interest accrued on uncertain tax positions as of July 4, 2015 , January 3, 2015 , and June 28, 2014 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS INVESTMENTS The Company invests in marketable securities, principally equity-based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities owned by the Company are included in other assets on the Company's consolidated balance sheet. The Company had approximately $7.9 million , $7.6 million , and $6.7 million of such Level 1 investments as of July 4, 2015 , January 3, 2015 , and June 28, 2014 , respectively. Gains on the investments in marketable securities were not material for the fiscal quarter and $0.3 million for the two fiscal quarters ended July 4, 2015 . Gains on the investments in marketable securities were not material for the fiscal quarter and two fiscal quarters ended June 28, 2014 . FOREIGN CURRENCY CONTRACTS As part of the Company's overall strategy to manage the level of exposure to the risk of foreign currency exchange rate fluctuations, primarily between the U.S. dollar and Canadian dollar, the Company's Canadian subsidiary may use currency contracts to hedge purchases that are made in U.S. dollars, primarily for inventory. As part of this hedging strategy, the Company uses foreign currency forward exchange contracts that have maturities of less than 12 months to provide continuing coverage throughout the hedging period. As currently designed, the Company's contacts are not designated for hedge accounting treatment, and therefore changes in the fair value of these contracts are recorded in Other (income) expense, net in the Company's consolidated statement of operations. Such foreign currency gains and losses include the mark-to-market fair value adjustments at the end of each reporting period related to open contracts, as well as any realized gains and losses on contracts settled during the reporting period. Fair values are calculated by using readily observable market inputs (market-quoted currency exchange rates in effect between U.S. and Canadian dollars), classified as Level 2 within the fair value hierarchy, and included in other current assets or other current liabilities on the Company's consolidated balance sheet. On the consolidated statement of cash flows, it is the Company's policy to include all activity, including cash settlement of the contracts, as a component of cash flows from operations. At July 4, 2015 , t he fair values of the open contracts approximated $1.6 million and are included in the Company's consolidated balance sheet within prepaid expenses and other current assets and the notional value was approximately $40.0 million . During the second quarter of fiscal 2015, the Company recorded approximately $1.6 million of unrealized gains related to the mark-to-market adjustments and realized gains of approximately $0.3 million for contracts settled during that period. During the first quarter of fiscal 2015 and the first two quarters of fiscal 2014, the Company did not utilize foreign exchange contracts. CONTINGENT CONSIDERATION The following table summarizes the changes in the remaining contingent consideration liability related to the Company's 2011 acquisition of Bonnie Togs: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Balance at the beginning of period $ 7,661 $ 16,315 $ 7,711 $ 16,348 Accretion 326 (8 ) 809 451 Foreign currency translation adjustment (42 ) 541 (575 ) 49 Final contingent settlement 1,077 — 1,077 — Balance at the end of period $ 9,022 $ 16,848 $ 9,022 $ 16,848 As of July 4, 2015 , the fair value of the remaining Bonnie Togs earn-out obligation is its carrying value since the earn-out period has completed and the final payment to the seller is scheduled to be paid in August 2015. In prior periods, the Company determined the fair value (level 3 in the fair value hierarchy) of the contingent consideration based upon a probability-weighted discounted cash flow analysis that reflected a high probability that the earnings targets would be met, and a discount rate of 18% . BORROWINGS As of July 4, 2015 , the fair value of the Company's $186.3 million in outstanding borrowings under its secured revolving credit facility approximated carrying value. The fair value of the Company's $400 million in senior notes was estimated by obtaining market quotes given the trade levels of other bonds of the same general issuer type and market-perceived credit quality and is therefore within Level 2 of the fair value hierarchy. The fair value of the outstanding senior notes as of July 4, 2015 was approximately $408.0 million . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 52,020,386 52,836,070 52,069,800 53,004,264 Dilutive effect of equity awards 526,016 455,116 514,121 478,426 Diluted number of common and common equivalent shares outstanding 52,546,402 53,291,186 52,583,921 53,482,690 Basic net income per common share (in thousands, except per share data): Net income $ 36,105 $ 25,897 $ 85,897 $ 60,193 Income allocated to participating securities (305 ) (345 ) (847 ) (812 ) Net income available to common shareholders $ 35,800 $ 25,552 $ 85,050 $ 59,381 Basic net income per common share $ 0.69 $ 0.48 $ 1.63 $ 1.12 Diluted net income per common share (in thousands, except per share data): Net income $ 36,105 $ 25,897 $ 85,897 $ 60,193 Income allocated to participating securities (303 ) (343 ) (840 ) (807 ) Net income available to common shareholders $ 35,802 $ 25,554 $ 85,057 $ 59,386 Diluted net income per common share $ 0.68 $ 0.48 $ 1.62 $ 1.11 Anti-dilutive shares excluded from dilutive earnings per share computation 178,800 268,850 183,300 268,850 |
OTHER CURRENT AND LONG-TERM LIA
OTHER CURRENT AND LONG-TERM LIABILITIES | 6 Months Ended |
Jul. 04, 2015 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT AND LONG-TERM LIABILITIES | OTHER CURRENT AND LONG-TERM LIABILITIES Other current liabilities consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Accrued bonuses and incentive compensation $ 7,400 $ 18,875 $ 6,320 Contingent consideration 9,022 7,711 9,360 Income taxes payable 1,034 692 994 Accrued workers' compensation 1,468 2,662 7,458 Accrued interest 7,991 8,106 8,056 Accrued sales and use taxes 3,720 5,318 4,961 Accrued salaries and wages 3,344 3,576 5,744 Accrued gift certificates 10,074 10,100 8,422 Accrued employee benefits 8,252 17,132 8,675 Accrued and deferred rent 13,123 11,879 804 Other current liabilities 11,023 11,677 14,767 Total $ 76,451 $ 97,728 $ 75,561 Other long-term liabilities consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Deferred lease incentives $ 69,804 $ 67,205 $ 71,821 Accrued and deferred rent 45,535 40,656 39,534 Contingent consideration — — 7,488 Accrued workers' compensation 6,016 4,717 — OshKosh pension plan 11,029 11,031 3,458 Unrecognized tax benefits 10,692 12,230 12,756 Post-retirement life and medical plan 4,731 4,731 5,122 Deferred compensation 9,300 8,388 7,869 Other 1,735 1,947 104 Total $ 158,842 $ 150,905 $ 148,152 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The table below presents certain segment information for the periods indicated: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, % of June 28, % of July 4, % of June 28, % of Net sales : Carter’s Wholesale $ 211,730 34.6 % $ 200,059 34.8 % $ 481,045 37.1 % $ 471,688 38.5 % Carter’s Retail (a) 246,980 40.4 % 233,690 40.7 % 504,707 39.0 % 464,018 37.9 % Total Carter’s (U.S.) 458,710 75.0 % 433,749 75.5 % 985,752 76.1 % 935,706 76.4 % OshKosh Retail (a) 73,453 12.0 % 67,515 11.8 % 146,495 11.3 % 131,073 10.7 % OshKosh Wholesale 14,306 2.3 % 11,649 2.0 % 30,357 2.3 % 27,235 2.2 % Total OshKosh (U.S.) 87,759 14.3 % 79,164 13.8 % 176,852 13.6 % 158,308 12.9 % International (b) 66,296 10.7 % 61,152 10.7 % 134,925 10.3 % 131,695 10.7 % Total net sales $ 612,765 100.0 % $ 574,065 100.0 % $ 1,297,529 100.0 % $ 1,225,709 100.0 % Operating income (loss) : % of Segment Net Sales % of Segment Net Sales % of % of Carter’s Wholesale $ 40,207 19.0 % $ 30,860 15.4 % $ 98,138 20.4 % $ 77,727 16.5 % Carter’s Retail (a) 38,331 15.5 % 40,179 17.2 % 82,824 16.4 % 83,158 17.9 % Total Carter’s (U.S.) 78,538 17.1 % 71,039 16.4 % 180,962 18.4 % 160,885 17.2 % OshKosh Retail (a) (1,815 ) (2.5 )% (1,694 ) (2.5 )% (2,775 ) (1.9 )% (6,183 ) (4.7 )% OshKosh Wholesale 2,249 15.7 % 859 7.4 % 5,228 17.2 % 2,885 10.6 % Total OshKosh (U.S.) 434 0.5 % (835 ) (1.1 )% 2,453 1.4 % (3,298 ) (2.1 )% International (b) (c) 6,236 9.4 % 7,107 11.6 % 12,747 9.4 % 11,143 8.5 % Corporate expenses (d) (e) (23,256 ) (29,964 ) (49,705 ) (59,852 ) Total operating income $ 61,952 10.1 % $ 47,347 8.2 % $ 146,457 11.3 % $ 108,878 8.9 % (a) Includes eCommerce results. (b) Net sales include international retail, eCommerce, and wholesale sales. Operating income includes international licensing income. (c) Includes charges associated with the revaluation of the Company's contingent consideration related to the Company's 2011 acquisition of Bonnie Togs of approximately $ 1.4 million for the fiscal quarter ended July 4, 2015 , and $ 1.9 million and $ 0.5 million for each of the two-fiscal-quarter periods ended July 4, 2015 and June 28, 2014 , respectively. The charge associated with the revaluation for the fiscal quarter ended June 28, 2014 was not material. Also includes expenses of approximately $ 0.9 million and $0.5 million for the second quarter of fiscal 2014 and for the first two quarters of fiscal 2014, respectively, related to the Company's exit from Japan retail operations. (d) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, building occupancy, information technology, certain legal fees, consulting, and audit fees. (e) Includes the following charges: Fiscal quarter ended Two fiscal quarters ended (dollars in millions) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Closure of distribution facility in Hogansville, GA (1) $ — $ 0.3 $ — $ 0.6 Office consolidation costs $ — $ 4.6 $ — $ 6.6 Amortization of tradenames $ 2.1 $ 5.6 $ 4.4 $ 11.9 (1) Continuing operating costs associated with the closure of the Company's distribution facility in Hogansville, Georgia. This facility was sold in December 2014. |
FACILITY CLOSURE
FACILITY CLOSURE | 6 Months Ended |
Jul. 04, 2015 | |
Restructuring and Related Activities [Abstract] | |
FACILITY CLOSURE | FACILITY CLOSURES OFFICE CONSOLIDATION In 2013 and 2014, the Company consolidated its Shelton, Connecticut and Atlanta, Georgia offices, as well as certain functions from its other offices, into a new headquarters facility in Atlanta, Georgia. During the first and second quarter of fiscal 2014, approximately $2.0 million and $4.6 million of expense, respectively, were incurred related to the office consolidation project and recorded in SG&A expense. No such expenses were incurred during the first and second quarter of fiscal 2015, and no additional expenses are expected to be incurred in the future. The following table summarizes the restructuring reserves related to the office consolidation as of July 4, 2015 : (dollars in millions) Severance Other closure costs Total Balance at January 3, 2015 $ 0.8 $ 2.8 $ 3.6 Payments during fiscal 2015 (0.5 ) (0.5 ) (1.0 ) Balance at July 4, 2015 $ 0.3 $ 2.3 $ 2.6 The severance reserve is included in other current liabilities and other closure costs are included in other short-term liabilities and other long-term liabilities in the accompanying unaudited condensed consolidated balance sheet. The Company has completed its consolidation efforts. The remaining severance accrual is expected to be paid during fiscal 2015. At June 28, 2014 , restructuring reserves were approximately $5.9 million . JAPAN RETAIL OPERATIONS In 2013, the Company made the decision to exit retail operations in Japan based on revised forecasts that did not meet the Company's investment objectives. In connection with the plan to exit these operations, during the first two quarters of fiscal 2014 , the Company recorded approximately $0.9 million of accelerated depreciation in selling, general, and administrative expenses and approximately $1.0 million in cost of goods sold related to a favorable recovery on inventory. There were no exit costs or recoveries related to the former Japan operations during the first and the second quarter of fiscal 2015 , and no additional costs are expected in the future. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which clarifies the principles for recognizing revenue. The guidance is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Further, the guidance requires improved disclosures as well as additional disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The standard is effective for the Company beginning in the first quarter of fiscal 2018, including interim periods within that first fiscal year, and early adoption is now permitted for 2017. Upon becoming effective, the Company will apply the amendments in the updated standard either retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is currently evaluating the impact of adopting this standard on its consolidated financial position, results of operations, and cash flows. Presentation of Debt Issuance Costs for Term Debt In April 2015, the FASB issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). Upon adoption , ASU 2015-03 will require debt issuance costs associated with outstanding term debt to be presented in the balance sheet as a direct reduction in the carrying value of the associated debt liability, consistent with the current presentation of a debt discount. For fees paid to lenders to secure revolving lines of credit, such fees will continue to be presented as a deferred charge (asset) on the balance sheet. Under current guidance prior to ASU 2015-03, all debt issuance costs, for both term debt and revolving lines of credit, are presented in the balance sheet as a deferred charge (asset). ASU 2015-03 is limited to the presentation of debt issuance costs and will not affect the recognition and measurement of debt issuance costs. Upon adoption, ASU 2015-03 must be applied on a retrospective basis and is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. Since ASU 2015-03 involves balance sheet presentation only, its adoption will not have any impact on the Company's results of operations, financial condition, or cash flows. The Company is evaluating a decision to early adopt ASU 2015-03 prior to its mandatory effective date. Simplified Measurement Date for Defined Benefit Plan Assets and Obligations In April 2015, the FASB issued Accounting Standard Update 2015-04, Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets ("ASU 2015-04"). Upon adoption, ASU 2015-04 will allow employers with fiscal year ends that do not coincide with a calendar month end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the month closest to their fiscal year ends (i.e., on an alternative measurement date). An employer that makes this election must consistently apply the practical expedient from year to year and to all of its defined benefit plans. ASU 2015-04 will be effective for interim and fiscal periods beginning after December 15, 2015; prospective application is required and early adoption is permitted. The Company's fiscal year ends on the Saturday in December or January nearest the last day of December, and the Company has defined benefit plans. The Company is currently evaluating the policy election that will be allowed upon the adoption of ASU 2015-04. |
GUARANTOR CONDENSED CONSOLIDATI
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jul. 04, 2015 | |
Condensed Income Statements, Captions [Line Items] | |
Condensed Income Statement [Table Text Block] | For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 362,318 $ 351,161 $ 52,638 $ (153,352 ) $ 612,765 Cost of goods sold — 254,299 213,845 27,129 (145,403 ) 349,870 Gross profit — 108,019 137,316 25,509 (7,949 ) 262,895 Selling, general, and administrative expenses — 42,167 157,636 21,669 (12,176 ) 209,296 Royalty income — (6,341 ) (3,768 ) — 1,756 (8,353 ) Operating income — 72,193 (16,552 ) 3,840 2,471 61,952 Interest expense — 6,773 1,333 141 (1,312 ) 6,935 Interest income — (1,445 ) — (24 ) 1,312 (157 ) (Income) loss in subsidiaries (36,105 ) 9,306 (3,042 ) — 29,841 — Other (income) expense, net — (49 ) 26 (1,877 ) — (1,900 ) Income (loss) before income taxes 36,105 57,608 (14,869 ) 5,600 (27,370 ) 57,074 Provision (benefit) for income taxes — 23,974 (4,867 ) 1,862 — 20,969 Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 Condensed Consolidating Statements of Operations (unaudited) For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 362,318 $ 351,161 $ 52,638 $ (153,352 ) $ 612,765 Cost of goods sold — 254,299 213,845 27,129 (145,403 ) 349,870 Gross profit — 108,019 137,316 25,509 (7,949 ) 262,895 Selling, general, and administrative expenses — 42,167 157,636 21,669 (12,176 ) 209,296 Royalty income — (6,341 ) (3,768 ) — 1,756 (8,353 ) Operating income — 72,193 (16,552 ) 3,840 2,471 61,952 Interest expense — 6,773 1,333 141 (1,312 ) 6,935 Interest income — (1,445 ) — (24 ) 1,312 (157 ) (Income) loss in subsidiaries (36,105 ) 9,306 (3,042 ) — 29,841 — Other (income) expense, net — (49 ) 26 (1,877 ) — (1,900 ) Income (loss) before income taxes 36,105 57,608 (14,869 ) 5,600 (27,370 ) 57,074 Provision (benefit) for income taxes — 23,974 (4,867 ) 1,862 — 20,969 Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 For the fiscal quarter ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 338,518 $ 325,673 $ 49,005 $ (139,131 ) $ 574,065 Cost of goods sold — 246,763 187,574 25,745 (131,494 ) 328,588 Gross profit — 91,755 138,099 23,260 (7,637 ) 245,477 Selling, general, and administrative expenses — 41,068 153,552 20,470 (8,775 ) 206,315 Royalty income — (5,932 ) (4,168 ) — 1,915 (8,185 ) Operating income — 56,619 (11,285 ) 2,790 (777 ) 47,347 Interest expense — 6,882 1,298 19 (1,317 ) 6,882 Interest income — (1,452 ) — (5 ) 1,317 (140 ) (Income) loss in subsidiaries (25,897 ) 13,359 (6,192 ) — 18,730 — Other (income) expense, net — (78 ) 58 (169 ) — (189 ) Income (loss) before income taxes 25,897 37,908 (6,449 ) 2,945 (19,507 ) 40,794 Provision for income taxes — 11,234 2,181 1,482 — 14,897 Net income (loss) $ 25,897 $ 26,674 $ (8,630 ) $ 1,463 $ (19,507 ) $ 25,897 For the two fiscal quarters ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 745,883 $ 647,381 $ 98,163 $ (265,718 ) $ 1,225,709 Cost of goods sold — 540,536 375,594 55,804 (253,427 ) 718,507 Gross profit — 205,347 271,787 42,359 (12,291 ) 507,202 Selling, general, and administrative expenses — 89,595 299,969 43,402 (16,556 ) 416,410 Royalty income — (13,977 ) (8,195 ) — 4,086 (18,086 ) Operating income — 129,729 (19,987 ) (1,043 ) 179 108,878 Interest expense — 13,780 2,611 43 (2,654 ) 13,780 Interest income — (2,922 ) — (4 ) 2,654 (272 ) (Income) loss in subsidiaries (60,193 ) 30,794 (6,778 ) — 36,177 — Other (income) expense, net — (134 ) 114 427 — 407 Income (loss) before income taxes 60,193 88,211 (15,934 ) (1,509 ) (35,998 ) 94,963 Provision for income taxes — 28,197 5,921 652 — 34,770 Net income (loss) $ 60,193 $ 60,014 $ (21,855 ) $ (2,161 ) $ (35,998 ) $ 60,193 For the two fiscal quarters ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 797,604 $ 710,557 $ 99,758 $ (310,390 ) $ 1,297,529 Cost of goods sold — 552,510 436,760 57,608 (296,296 ) 750,582 Gross profit — 245,094 273,797 42,150 (14,094 ) 546,947 Selling, general, and administrative expenses — 84,416 314,899 41,500 (20,336 ) 420,479 Royalty income — (15,380 ) (8,479 ) — 3,870 (19,989 ) Operating income — 176,058 (32,623 ) 650 2,372 146,457 Interest expense — 13,435 2,676 256 (2,740 ) 13,627 Interest income — (3,002 ) — (32 ) 2,740 (294 ) (Income) loss in subsidiaries (85,897 ) 32,700 (3,562 ) — 56,759 — Other (income) expense, net — (195 ) 163 94 — 62 Income (loss) before income taxes 85,897 133,120 (31,900 ) 332 (54,387 ) 133,062 Provision (benefit) for income taxes — 49,595 (2,887 ) 457 — 47,165 Net income (loss) $ 85,897 $ 83,525 $ (29,013 ) $ (125 ) $ (54,387 ) $ 85,897 |
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | Condensed Consolidating Statements of Comprehensive Income (unaudited) For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 Foreign currency translation adjustments (244 ) (244 ) 22 (244 ) 466 (244 ) Comprehensive income (loss) $ 35,861 $ 33,390 $ (9,980 ) $ 3,494 $ (26,904 ) $ 35,861 For the fiscal quarter ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 25,897 $ 26,674 $ (8,630 ) $ 1,463 $ (19,507 ) $ 25,897 Foreign currency translation adjustments 2,792 2,792 (1 ) 2,792 (5,583 ) 2,792 Comprehensive income (loss) $ 28,689 $ 29,466 $ (8,631 ) $ 4,255 $ (25,090 ) $ 28,689 For the two fiscal quarters ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 85,897 $ 83,525 $ (29,013 ) $ (125 ) $ (54,387 ) $ 85,897 Foreign currency translation adjustments (6,238 ) (6,238 ) 30 (6,238 ) 12,446 (6,238 ) Comprehensive income (loss) $ 79,659 $ 77,287 $ (28,983 ) $ (6,363 ) $ (41,941 ) $ 79,659 For the two fiscal quarters ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 60,193 $ 60,014 $ (21,855 ) $ (2,161 ) $ (35,998 ) $ 60,193 Foreign currency translation adjustments 32 32 (133 ) 32 69 32 Comprehensive income (loss) $ 60,225 $ 60,046 $ (21,988 ) $ (2,129 ) $ (35,929 ) $ 60,225 |
ACCUMULATED OTHER COMPREHENSI25
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | ccumulated other comprehensive (loss) consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Cumulative foreign currency translation adjustments $ (21,635 ) $ (15,397 ) $ (7,520 ) Pension and post-retirement liability adjustments (7,640 ) (7,640 ) (2,530 ) Total accumulated other comprehensive loss $ (29,275 ) $ (23,037 ) $ (10,050 ) Changes in accumulated other comprehensive loss for the second quarter and first two quarters of fiscal 2015 consisted of additional losses for foreign currency translation adjustments of approximately $0.2 million and $6.2 million , respectively. Changes consisted of gains for foreign currency translation adjustments of approximately $2.8 million for the second quarter of fiscal 2014 and were immaterial for the first two quarters of fiscal 2014. During the first and second quarters of both fiscal 2015 and fiscal 2014, no amounts were reclassified from accumulated other comprehensive loss to the statement of operations. |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Table | The Company’s goodwill and other intangible assets were as follows: July 4, 2015 January 3, 2015 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s goodwill Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Bonnie Togs goodwill Indefinite 42,183 — 42,183 45,405 — 45,405 Total goodwill $ 178,753 $ — $ 178,753 $ 181,975 $ — $ 181,975 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Other tradenames 2-20 years 42,036 34,933 7,103 42,073 30,541 11,532 Total tradenames 347,769 34,933 312,836 347,806 30,541 317,265 Non-compete agreements 4 years 219 219 — 257 225 32 Total tradenames and other intangibles, net $ 347,988 $ 35,152 $ 312,836 $ 348,063 $ 30,766 $ 317,297 June 28, 2014 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter’s goodwill Indefinite $ 136,570 $ — $ 136,570 Bonnie Togs goodwill Indefinite 49,603 — 49,603 Total goodwill $ 186,173 $ — $ 186,173 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 Other tradenames 2-3 years 38,570 26,028 12,542 Total tradenames 344,303 26,028 318,275 Non-compete agreements 4 years 281 210 71 Total tradenames and other intangibles, net $ 344,584 $ 26,238 $ 318,346 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Senior notes $ 400,000 $ 400,000 $ 400,000 Secured revolving credit facility 186,298 186,000 186,000 Total long-term debt $ 586,298 $ 586,000 $ 586,000 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of recorded stock-based compensation cost | The Company recorded stock-based compensation cost as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock options $ 1,020 $ 1,089 $ 2,344 $ 2,459 Restricted stock: Time-based awards 1,612 1,697 3,695 3,639 Performance-based awards 1,093 1,427 2,426 2,650 Stock awards 1,095 1,081 1,095 1,081 Total $ 4,820 $ 5,294 $ 9,560 $ 9,829 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of pension expense and post-retirement benefit expense | The net periodic pension (benefit) cost included in the statement of operations was comprised of: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Interest cost $ 623 $ 622 $ 1,246 $ 1,244 Expected return on plan assets (785 ) (798 ) (1,570 ) (1,596 ) Recognized actuarial loss 161 21 322 42 Net periodic pension (benefit) cost $ (1 ) $ (155 ) $ (2 ) $ (310 ) |
Schedule of Costs of Retirement Plans [Table Text Block] | The components of post-retirement benefit expense charged to the statement of operations were as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost – benefits attributed to service during the period $ 32 $ 28 $ 64 $ 56 Interest cost on accumulated post-retirement benefit obligation 45 57 90 114 Amortization net actuarial gain (48 ) (52 ) (96 ) (104 ) Curtailment gain — (22 ) — (44 ) Total net periodic post-retirement benefit cost $ 29 $ 11 $ 58 $ 22 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of changes in contingent consideration | The following table summarizes the changes in the remaining contingent consideration liability related to the Company's 2011 acquisition of Bonnie Togs: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Balance at the beginning of period $ 7,661 $ 16,315 $ 7,711 $ 16,348 Accretion 326 (8 ) 809 451 Foreign currency translation adjustment (42 ) 541 (575 ) 49 Final contingent settlement 1,077 — 1,077 — Balance at the end of period $ 9,022 $ 16,848 $ 9,022 $ 16,848 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding | The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 52,020,386 52,836,070 52,069,800 53,004,264 Dilutive effect of equity awards 526,016 455,116 514,121 478,426 Diluted number of common and common equivalent shares outstanding 52,546,402 53,291,186 52,583,921 53,482,690 Basic net income per common share (in thousands, except per share data): Net income $ 36,105 $ 25,897 $ 85,897 $ 60,193 Income allocated to participating securities (305 ) (345 ) (847 ) (812 ) Net income available to common shareholders $ 35,800 $ 25,552 $ 85,050 $ 59,381 Basic net income per common share $ 0.69 $ 0.48 $ 1.63 $ 1.12 Diluted net income per common share (in thousands, except per share data): Net income $ 36,105 $ 25,897 $ 85,897 $ 60,193 Income allocated to participating securities (303 ) (343 ) (840 ) (807 ) Net income available to common shareholders $ 35,802 $ 25,554 $ 85,057 $ 59,386 Diluted net income per common share $ 0.68 $ 0.48 $ 1.62 $ 1.11 Anti-dilutive shares excluded from dilutive earnings per share computation 178,800 268,850 183,300 268,850 |
OTHER CURRENT AND LONG-TERM L32
OTHER CURRENT AND LONG-TERM LIABILITIES (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Accrued bonuses and incentive compensation $ 7,400 $ 18,875 $ 6,320 Contingent consideration 9,022 7,711 9,360 Income taxes payable 1,034 692 994 Accrued workers' compensation 1,468 2,662 7,458 Accrued interest 7,991 8,106 8,056 Accrued sales and use taxes 3,720 5,318 4,961 Accrued salaries and wages 3,344 3,576 5,744 Accrued gift certificates 10,074 10,100 8,422 Accrued employee benefits 8,252 17,132 8,675 Accrued and deferred rent 13,123 11,879 804 Other current liabilities 11,023 11,677 14,767 Total $ 76,451 $ 97,728 $ 75,561 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following: (dollars in thousands) July 4, 2015 January 3, 2015 June 28, 2014 Deferred lease incentives $ 69,804 $ 67,205 $ 71,821 Accrued and deferred rent 45,535 40,656 39,534 Contingent consideration — — 7,488 Accrued workers' compensation 6,016 4,717 — OshKosh pension plan 11,029 11,031 3,458 Unrecognized tax benefits 10,692 12,230 12,756 Post-retirement life and medical plan 4,731 4,731 5,122 Deferred compensation 9,300 8,388 7,869 Other 1,735 1,947 104 Total $ 158,842 $ 150,905 $ 148,152 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The table below presents certain segment information for the periods indicated: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 4, % of June 28, % of July 4, % of June 28, % of Net sales : Carter’s Wholesale $ 211,730 34.6 % $ 200,059 34.8 % $ 481,045 37.1 % $ 471,688 38.5 % Carter’s Retail (a) 246,980 40.4 % 233,690 40.7 % 504,707 39.0 % 464,018 37.9 % Total Carter’s (U.S.) 458,710 75.0 % 433,749 75.5 % 985,752 76.1 % 935,706 76.4 % OshKosh Retail (a) 73,453 12.0 % 67,515 11.8 % 146,495 11.3 % 131,073 10.7 % OshKosh Wholesale 14,306 2.3 % 11,649 2.0 % 30,357 2.3 % 27,235 2.2 % Total OshKosh (U.S.) 87,759 14.3 % 79,164 13.8 % 176,852 13.6 % 158,308 12.9 % International (b) 66,296 10.7 % 61,152 10.7 % 134,925 10.3 % 131,695 10.7 % Total net sales $ 612,765 100.0 % $ 574,065 100.0 % $ 1,297,529 100.0 % $ 1,225,709 100.0 % Operating income (loss) : % of Segment Net Sales % of Segment Net Sales % of % of Carter’s Wholesale $ 40,207 19.0 % $ 30,860 15.4 % $ 98,138 20.4 % $ 77,727 16.5 % Carter’s Retail (a) 38,331 15.5 % 40,179 17.2 % 82,824 16.4 % 83,158 17.9 % Total Carter’s (U.S.) 78,538 17.1 % 71,039 16.4 % 180,962 18.4 % 160,885 17.2 % OshKosh Retail (a) (1,815 ) (2.5 )% (1,694 ) (2.5 )% (2,775 ) (1.9 )% (6,183 ) (4.7 )% OshKosh Wholesale 2,249 15.7 % 859 7.4 % 5,228 17.2 % 2,885 10.6 % Total OshKosh (U.S.) 434 0.5 % (835 ) (1.1 )% 2,453 1.4 % (3,298 ) (2.1 )% International (b) (c) 6,236 9.4 % 7,107 11.6 % 12,747 9.4 % 11,143 8.5 % Corporate expenses (d) (e) (23,256 ) (29,964 ) (49,705 ) (59,852 ) Total operating income $ 61,952 10.1 % $ 47,347 8.2 % $ 146,457 11.3 % $ 108,878 8.9 % (a) Includes eCommerce results. (b) Net sales include international retail, eCommerce, and wholesale sales. Operating income includes international licensing income. (c) Includes charges associated with the revaluation of the Company's contingent consideration related to the Company's 2011 acquisition of Bonnie Togs of approximately $ 1.4 million for the fiscal quarter ended July 4, 2015 , and $ 1.9 million and $ 0.5 million for each of the two-fiscal-quarter periods ended July 4, 2015 and June 28, 2014 , respectively. The charge associated with the revaluation for the fiscal quarter ended June 28, 2014 was not material. Also includes expenses of approximately $ 0.9 million and $0.5 million for the second quarter of fiscal 2014 and for the first two quarters of fiscal 2014, respectively, related to the Company's exit from Japan retail operations. (d) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, building occupancy, information technology, certain legal fees, consulting, and audit fees. (e) Includes the following charges: Fiscal quarter ended Two fiscal quarters ended (dollars in millions) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Closure of distribution facility in Hogansville, GA (1) $ — $ 0.3 $ — $ 0.6 Office consolidation costs $ — $ 4.6 $ — $ 6.6 Amortization of tradenames $ 2.1 $ 5.6 $ 4.4 $ 11.9 (1) Continuing operating costs associated with the closure of the Company's distribution facility in Hogansville, Georgia. This facility was sold in December 2014. |
FACILITY CLOSURE (Tables)
FACILITY CLOSURE (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the restructuring reserves related to the office consolidation as of July 4, 2015 : (dollars in millions) Severance Other closure costs Total Balance at January 3, 2015 $ 0.8 $ 2.8 $ 3.6 Payments during fiscal 2015 (0.5 ) (0.5 ) (1.0 ) Balance at July 4, 2015 $ 0.3 $ 2.3 $ 2.6 |
GUARANTOR CONDENSED CONSOLIDA35
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | GUARANTOR UNAUDITED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The Company’s senior notes constitute debt obligations of its wholly-owned subsidiary, The William Carter Company ("TWCC" or the “Subsidiary Issuer”), are unsecured and are fully and unconditionally guaranteed by Carter’s, Inc. (the “Parent”) by each of the Company’s current domestic subsidiaries, and, subject to certain exceptions, future restricted subsidiaries that guarantee the Company’s senior secured revolving credit facility or certain other debt of the Company or the subsidiary guarantors. Under specific customary conditions, the guarantees are not full and unconditional because subsidiary guarantors can be released and relieved of their obligations under customary circumstances contained in the indenture governing the Senior Notes. These circumstances include among others the following, so long as other applicable provisions of the indentures are adhered to: any sale or other disposition of all or substantially all of the assets of any subsidiary guarantor, any sale or other disposition of capital stock of any subsidiary guarantor, or designation of any restricted subsidiary that is a subsidiary guarantor as an unrestricted subsidiary. For additional information, refer to the Company's Annual Report on Form 10-K for the 2014 fiscal year ended January 3, 2015. The unaudited condensed consolidating financial information for the Parent, the Subsidiary Issuer and the guarantor and non-guarantor subsidiaries has been prepared from the books and records maintained by the Company. The accompanying unaudited condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10. The financial information may not necessarily be indicative of the financial position, results of operations, comprehensive income (loss), and cash flows, had the Parent, Subsidiary Issuer, guarantor or non-guarantor subsidiaries operated as independent entities. Intercompany revenues and expenses included in the subsidiary records are eliminated in consolidation. As a result of this activity, an amount due to/due from affiliates will exist at any time. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. The Company has accounted for investments in subsidiaries under the equity method. The guarantor subsidiaries are 100% owned directly or indirectly by the Parent and all guarantees are joint, several and unconditional. During fiscal 2014, the Company revised its Guarantor Condensed Consolidating Statements of Comprehensive Income to correct a presentation error related to certain other comprehensive income (loss) transactions within the Subsidiary Issuer and Guarantor Subsidiaries columns in the Company’s previously filed Form 10-Q for the first and second fiscal quarters of 2014, which included the comparative periods, and for the fiscal years ended December 28, 2013 and December 29, 2012. These presentation items had no effect on the Company’s Consolidated Financial Statements. The Company concluded that these items were not material to the financial statements taken as a whole, but elected to revise previously reported amounts within this footnote for all periods presented. Condensed Consolidating Balance Sheets (unaudited) As of July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 211,730 $ 13,007 $ 19,564 $ — $ 244,301 Accounts receivable, net — 130,386 21,531 5,228 — 157,145 Intercompany receivable — 57,590 60,737 3,831 (122,158 ) — Finished goods inventories — 322,981 194,245 60,932 (33,902 ) 544,256 Prepaid expenses and other current assets — 28,053 14,027 6,395 — 48,475 Deferred income taxes — 19,253 10,851 1,767 — 31,871 Total current assets — 769,993 314,398 97,717 (156,060 ) 1,026,048 Property, plant, and equipment, net — 160,022 164,578 28,538 — 353,138 Goodwill — 136,570 — 42,183 — 178,753 Tradenames and other intangibles, net — 227,336 85,500 — — 312,836 Deferred debt issuance costs, net — 5,952 — — — 5,952 Other assets — 11,945 853 44 — 12,842 Intercompany long-term receivable — — 267,160 — (267,160 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 802,939 595,255 15,283 — (1,413,477 ) — Total assets $ 802,939 $ 2,007,073 $ 847,772 $ 168,482 $ (1,936,697 ) $ 1,889,569 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 87,405 $ 35,589 $ 22,815 $ — $ 145,809 Intercompany payables — 63,369 56,452 2,337 (122,158 ) — Other current liabilities — 35,948 26,485 14,018 — 76,451 Total current liabilities — 186,722 118,526 39,170 (122,158 ) 222,260 Long-term debt — 566,000 — 20,298 — 586,298 Deferred income taxes — 79,351 39,879 — — 119,230 Intercompany long-term liability — 267,160 — — (267,160 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 70,999 75,133 12,710 — 158,842 Stockholders' equity 802,939 836,841 514,234 96,304 (1,447,379 ) 802,939 Total liabilities and stockholders' equity $ 802,939 $ 2,007,073 $ 847,772 $ 168,482 $ (1,936,697 ) $ 1,889,569 As of January 3, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 311,078 $ 10,442 $ 19,118 $ — $ 340,638 Accounts receivable, net — 155,192 22,770 6,601 — 184,563 Intercompany receivable — 58,402 106,137 2,012 (166,551 ) — Intercompany loan receivable — 20,000 — — (20,000 ) — Finished goods inventories — 240,702 191,953 48,463 (36,274 ) 444,844 Prepaid expenses and other current assets — 15,143 13,059 6,586 — 34,788 Deferred income taxes — 21,308 12,983 2,334 — 36,625 Total current assets — 821,825 357,344 85,114 (222,825 ) 1,041,458 Property, plant, and equipment, net — 158,017 147,076 28,004 — 333,097 Goodwill — 136,570 — 45,405 — 181,975 Tradenames and other intangibles, net — 231,765 85,500 32 — 317,297 Deferred debt issuance costs, net — 6,677 — — — 6,677 Other assets — 11,781 811 — — 12,592 Intercompany long-term receivable — — 274,584 — (274,584 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 786,684 591,735 9,647 — (1,388,066 ) — Total assets $ 786,684 $ 2,058,370 $ 874,962 $ 158,555 $ (1,985,475 ) $ 1,893,096 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 102,233 $ 37,869 $ 10,141 $ — $ 150,243 Intercompany payables — 105,940 55,812 4,799 (166,551 ) — Intercompany loan payables — — — 20,000 (20,000 ) — Other current liabilities — 15,782 67,793 14,153 — 97,728 Total current liabilities — 223,955 161,474 49,093 (186,551 ) 247,971 Long-term debt — 586,000 — — — 586,000 Deferred income taxes — 81,406 40,130 — — 121,536 Intercompany long-term liability — 274,584 — — (274,584 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 69,467 68,426 13,012 — 150,905 Stockholders' equity 786,684 822,958 504,932 96,450 (1,424,340 ) 786,684 Total liabilities and stockholders' equity $ 786,684 $ 2,058,370 $ 874,962 $ 158,555 $ (1,985,475 ) $ 1,893,096 As of June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 191,491 $ — $ 16,429 $ — $ 207,920 Accounts receivable, net — 112,126 15,924 5,835 — 133,885 Intercompany receivable — 57,106 92,532 12,800 (162,438 ) — Intercompany loan receivable — 10,000 — — (10,000 ) — Finished goods inventories — 299,688 212,817 57,369 (31,641 ) 538,233 Prepaid expenses and other current assets — 23,700 13,906 6,078 — 43,684 Deferred income taxes — 22,136 13,130 1,268 — 36,534 Total current assets — 716,247 348,309 99,779 (204,079 ) 960,256 Property, plant, and equipment, net — 157,289 140,538 27,848 — 325,675 Goodwill — 136,570 — 49,603 — 186,173 Tradenames and other intangibles, net — 232,776 85,500 70 — 318,346 Deferred debt issuance costs, net — 7,407 — — — 7,407 Other assets — 11,305 — — — 11,305 Intercompany long-term receivable — — 221,496 — (221,496 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 720,372 562,665 4,725 — (1,287,762 ) — Total assets $ 720,372 $ 1,924,259 $ 800,568 $ 177,300 $ (1,813,337 ) $ 1,809,162 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 105,126 $ 35,802 $ 23,271 $ — $ 164,199 Intercompany payables — 90,697 64,911 6,830 (162,438 ) — Intercompany loan payables — — — 10,000 (10,000 ) — Other current liabilities — 29,830 29,830 15,901 — 75,561 Total current liabilities — 225,653 130,543 56,002 (172,438 ) 239,760 Long-term debt — 586,000 — — — 586,000 Deferred income taxes — 71,822 43,056 — — 114,878 Intercompany long-term liability — 221,496 — — (221,496 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 67,275 61,039 19,838 — 148,152 Stockholders' equity 720,372 752,013 465,930 101,460 (1,319,403 ) 720,372 Total liabilities and stockholders' equity $ 720,372 $ 1,924,259 $ 800,568 $ 177,300 $ (1,813,337 ) $ 1,809,162 Condensed Consolidating Statements of Operations (unaudited) For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 362,318 $ 351,161 $ 52,638 $ (153,352 ) $ 612,765 Cost of goods sold — 254,299 213,845 27,129 (145,403 ) 349,870 Gross profit — 108,019 137,316 25,509 (7,949 ) 262,895 Selling, general, and administrative expenses — 42,167 157,636 21,669 (12,176 ) 209,296 Royalty income — (6,341 ) (3,768 ) — 1,756 (8,353 ) Operating income — 72,193 (16,552 ) 3,840 2,471 61,952 Interest expense — 6,773 1,333 141 (1,312 ) 6,935 Interest income — (1,445 ) — (24 ) 1,312 (157 ) (Income) loss in subsidiaries (36,105 ) 9,306 (3,042 ) — 29,841 — Other (income) expense, net — (49 ) 26 (1,877 ) — (1,900 ) Income (loss) before income taxes 36,105 57,608 (14,869 ) 5,600 (27,370 ) 57,074 Provision (benefit) for income taxes — 23,974 (4,867 ) 1,862 — 20,969 Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 For the fiscal quarter ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 338,518 $ 325,673 $ 49,005 $ (139,131 ) $ 574,065 Cost of goods sold — 246,763 187,574 25,745 (131,494 ) 328,588 Gross profit — 91,755 138,099 23,260 (7,637 ) 245,477 Selling, general, and administrative expenses — 41,068 153,552 20,470 (8,775 ) 206,315 Royalty income — (5,932 ) (4,168 ) — 1,915 (8,185 ) Operating income — 56,619 (11,285 ) 2,790 (777 ) 47,347 Interest expense — 6,882 1,298 19 (1,317 ) 6,882 Interest income — (1,452 ) — (5 ) 1,317 (140 ) (Income) loss in subsidiaries (25,897 ) 13,359 (6,192 ) — 18,730 — Other (income) expense, net — (78 ) 58 (169 ) — (189 ) Income (loss) before income taxes 25,897 37,908 (6,449 ) 2,945 (19,507 ) 40,794 Provision for income taxes — 11,234 2,181 1,482 — 14,897 Net income (loss) $ 25,897 $ 26,674 $ (8,630 ) $ 1,463 $ (19,507 ) $ 25,897 Condensed Consolidating Statements of Comprehensive Income (unaudited) For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 Foreign currency translation adjustments (244 ) (244 ) 22 (244 ) 466 (244 ) Comprehensive income (loss) $ 35,861 $ 33,390 $ (9,980 ) $ 3,494 $ (26,904 ) $ 35,861 For the fiscal quarter ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 25,897 $ 26,674 $ (8,630 ) $ 1,463 $ (19,507 ) $ 25,897 Foreign currency translation adjustments 2,792 2,792 (1 ) 2,792 (5,583 ) 2,792 Comprehensive income (loss) $ 28,689 $ 29,466 $ (8,631 ) $ 4,255 $ (25,090 ) $ 28,689 For the two fiscal quarters ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 85,897 $ 83,525 $ (29,013 ) $ (125 ) $ (54,387 ) $ 85,897 Foreign currency translation adjustments (6,238 ) (6,238 ) 30 (6,238 ) 12,446 (6,238 ) Comprehensive income (loss) $ 79,659 $ 77,287 $ (28,983 ) $ (6,363 ) $ (41,941 ) $ 79,659 For the two fiscal quarters ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 60,193 $ 60,014 $ (21,855 ) $ (2,161 ) $ (35,998 ) $ 60,193 Foreign currency translation adjustments 32 32 (133 ) 32 69 32 Comprehensive income (loss) $ 60,225 $ 60,046 $ (21,988 ) $ (2,129 ) $ (35,929 ) $ 60,225 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (unaudited) As of July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 211,730 $ 13,007 $ 19,564 $ — $ 244,301 Accounts receivable, net — 130,386 21,531 5,228 — 157,145 Intercompany receivable — 57,590 60,737 3,831 (122,158 ) — Finished goods inventories — 322,981 194,245 60,932 (33,902 ) 544,256 Prepaid expenses and other current assets — 28,053 14,027 6,395 — 48,475 Deferred income taxes — 19,253 10,851 1,767 — 31,871 Total current assets — 769,993 314,398 97,717 (156,060 ) 1,026,048 Property, plant, and equipment, net — 160,022 164,578 28,538 — 353,138 Goodwill — 136,570 — 42,183 — 178,753 Tradenames and other intangibles, net — 227,336 85,500 — — 312,836 Deferred debt issuance costs, net — 5,952 — — — 5,952 Other assets — 11,945 853 44 — 12,842 Intercompany long-term receivable — — 267,160 — (267,160 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 802,939 595,255 15,283 — (1,413,477 ) — Total assets $ 802,939 $ 2,007,073 $ 847,772 $ 168,482 $ (1,936,697 ) $ 1,889,569 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 87,405 $ 35,589 $ 22,815 $ — $ 145,809 Intercompany payables — 63,369 56,452 2,337 (122,158 ) — Other current liabilities — 35,948 26,485 14,018 — 76,451 Total current liabilities — 186,722 118,526 39,170 (122,158 ) 222,260 Long-term debt — 566,000 — 20,298 — 586,298 Deferred income taxes — 79,351 39,879 — — 119,230 Intercompany long-term liability — 267,160 — — (267,160 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 70,999 75,133 12,710 — 158,842 Stockholders' equity 802,939 836,841 514,234 96,304 (1,447,379 ) 802,939 Total liabilities and stockholders' equity $ 802,939 $ 2,007,073 $ 847,772 $ 168,482 $ (1,936,697 ) $ 1,889,569 As of June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 191,491 $ — $ 16,429 $ — $ 207,920 Accounts receivable, net — 112,126 15,924 5,835 — 133,885 Intercompany receivable — 57,106 92,532 12,800 (162,438 ) — Intercompany loan receivable — 10,000 — — (10,000 ) — Finished goods inventories — 299,688 212,817 57,369 (31,641 ) 538,233 Prepaid expenses and other current assets — 23,700 13,906 6,078 — 43,684 Deferred income taxes — 22,136 13,130 1,268 — 36,534 Total current assets — 716,247 348,309 99,779 (204,079 ) 960,256 Property, plant, and equipment, net — 157,289 140,538 27,848 — 325,675 Goodwill — 136,570 — 49,603 — 186,173 Tradenames and other intangibles, net — 232,776 85,500 70 — 318,346 Deferred debt issuance costs, net — 7,407 — — — 7,407 Other assets — 11,305 — — — 11,305 Intercompany long-term receivable — — 221,496 — (221,496 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 720,372 562,665 4,725 — (1,287,762 ) — Total assets $ 720,372 $ 1,924,259 $ 800,568 $ 177,300 $ (1,813,337 ) $ 1,809,162 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 105,126 $ 35,802 $ 23,271 $ — $ 164,199 Intercompany payables — 90,697 64,911 6,830 (162,438 ) — Intercompany loan payables — — — 10,000 (10,000 ) — Other current liabilities — 29,830 29,830 15,901 — 75,561 Total current liabilities — 225,653 130,543 56,002 (172,438 ) 239,760 Long-term debt — 586,000 — — — 586,000 Deferred income taxes — 71,822 43,056 — — 114,878 Intercompany long-term liability — 221,496 — — (221,496 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 67,275 61,039 19,838 — 148,152 Stockholders' equity 720,372 752,013 465,930 101,460 (1,319,403 ) 720,372 Total liabilities and stockholders' equity $ 720,372 $ 1,924,259 $ 800,568 $ 177,300 $ (1,813,337 ) $ 1,809,162 As of January 3, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 311,078 $ 10,442 $ 19,118 $ — $ 340,638 Accounts receivable, net — 155,192 22,770 6,601 — 184,563 Intercompany receivable — 58,402 106,137 2,012 (166,551 ) — Intercompany loan receivable — 20,000 — — (20,000 ) — Finished goods inventories — 240,702 191,953 48,463 (36,274 ) 444,844 Prepaid expenses and other current assets — 15,143 13,059 6,586 — 34,788 Deferred income taxes — 21,308 12,983 2,334 — 36,625 Total current assets — 821,825 357,344 85,114 (222,825 ) 1,041,458 Property, plant, and equipment, net — 158,017 147,076 28,004 — 333,097 Goodwill — 136,570 — 45,405 — 181,975 Tradenames and other intangibles, net — 231,765 85,500 32 — 317,297 Deferred debt issuance costs, net — 6,677 — — — 6,677 Other assets — 11,781 811 — — 12,592 Intercompany long-term receivable — — 274,584 — (274,584 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 786,684 591,735 9,647 — (1,388,066 ) — Total assets $ 786,684 $ 2,058,370 $ 874,962 $ 158,555 $ (1,985,475 ) $ 1,893,096 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 102,233 $ 37,869 $ 10,141 $ — $ 150,243 Intercompany payables — 105,940 55,812 4,799 (166,551 ) — Intercompany loan payables — — — 20,000 (20,000 ) — Other current liabilities — 15,782 67,793 14,153 — 97,728 Total current liabilities — 223,955 161,474 49,093 (186,551 ) 247,971 Long-term debt — 586,000 — — — 586,000 Deferred income taxes — 81,406 40,130 — — 121,536 Intercompany long-term liability — 274,584 — — (274,584 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 69,467 68,426 13,012 — 150,905 Stockholders' equity 786,684 822,958 504,932 96,450 (1,424,340 ) 786,684 Total liabilities and stockholders' equity $ 786,684 $ 2,058,370 $ 874,962 $ 158,555 $ (1,985,475 ) $ 1,893,096 |
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | Condensed Consolidating Statements of Comprehensive Income (unaudited) For the fiscal quarter ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 36,105 $ 33,634 $ (10,002 ) $ 3,738 $ (27,370 ) $ 36,105 Foreign currency translation adjustments (244 ) (244 ) 22 (244 ) 466 (244 ) Comprehensive income (loss) $ 35,861 $ 33,390 $ (9,980 ) $ 3,494 $ (26,904 ) $ 35,861 For the fiscal quarter ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 25,897 $ 26,674 $ (8,630 ) $ 1,463 $ (19,507 ) $ 25,897 Foreign currency translation adjustments 2,792 2,792 (1 ) 2,792 (5,583 ) 2,792 Comprehensive income (loss) $ 28,689 $ 29,466 $ (8,631 ) $ 4,255 $ (25,090 ) $ 28,689 For the two fiscal quarters ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 85,897 $ 83,525 $ (29,013 ) $ (125 ) $ (54,387 ) $ 85,897 Foreign currency translation adjustments (6,238 ) (6,238 ) 30 (6,238 ) 12,446 (6,238 ) Comprehensive income (loss) $ 79,659 $ 77,287 $ (28,983 ) $ (6,363 ) $ (41,941 ) $ 79,659 For the two fiscal quarters ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 60,193 $ 60,014 $ (21,855 ) $ (2,161 ) $ (35,998 ) $ 60,193 Foreign currency translation adjustments 32 32 (133 ) 32 69 32 Comprehensive income (loss) $ 60,225 $ 60,046 $ (21,988 ) $ (2,129 ) $ (35,929 ) $ 60,225 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (unaudited) For the two fiscal quarters ended July 4, 2015 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by (used in) operating activities: $ — $ 39,654 $ (20,473 ) $ 7,951 $ — $ 27,132 Cash flows from investing activities: Capital expenditures — (15,591 ) (29,683 ) (5,010 ) — (50,284 ) Intercompany investing activity 79,854 (5,648 ) (2,169 ) — (72,037 ) — Proceeds from repayment of intercompany loan — 20,000 — — (20,000 ) — Proceeds from sale of property, plant and equipment — 36 — 7 — 43 Net cash provided by (used in) investing activities 79,854 (1,203 ) (31,852 ) (5,003 ) (92,037 ) (50,241 ) Cash flows from financing activities: Intercompany financing activity — (122,520 ) 52,721 (2,238 ) 72,037 — Repayment of intercompany loan — — — (20,000 ) 20,000 — Borrowings under secured revolving credit facility — — — 20,349 — 20,349 Payments on secured revolving credit facility — (20,000 ) — — — (20,000 ) Dividends paid (23,143 ) — — — — (23,143 ) Repurchase of common stock (48,894 ) — — — — (48,894 ) Income tax benefit from stock-based compensation — 4,721 2,169 — — 6,890 Withholdings from vesting of restricted stock (12,377 ) — — — — (12,377 ) Proceeds from exercise of stock options 4,560 — — — — 4,560 Net cash (used in) provided by financing activities (79,854 ) (137,799 ) 54,890 (1,889 ) 92,037 (72,615 ) Effect of exchange rate changes on cash — — — (613 ) — (613 ) Net (decrease) increase in cash and cash equivalents — (99,348 ) 2,565 446 — (96,337 ) Cash and cash equivalents, beginning of period — 311,078 10,442 19,118 — 340,638 Cash and cash equivalents, end of period $ — $ 211,730 $ 13,007 $ 19,564 $ — $ 244,301 For the two fiscal quarters ended June 28, 2014 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by (used in) operating activities: $ — $ 54,656 $ (26,855 ) $ 5,323 $ — $ 33,124 Cash flows from investing activities: Capital expenditures — (33,691 ) (21,719 ) (5,890 ) — (61,300 ) Intercompany investing activity 54,163 4,442 (2,144 ) — (56,461 ) — Issuance of intercompany loan — (10,000 ) — — 10,000 — Proceeds from sale of property, plant and equipment — 134 — — — 134 Net cash provided by (used in) investing activities 54,163 (39,115 ) (23,863 ) (5,890 ) (46,461 ) (61,166 ) Cash flows from financing activities: Intercompany financing activity — (103,802 ) 48,574 (1,233 ) 56,461 — Proceeds from intercompany loan — — — 10,000 (10,000 ) — Dividends Paid (20,380 ) — — — — (20,380 ) Payment on debt issuance costs — (114 ) — — — (114 ) Income tax benefit from stock-based compensation — 1,606 2,144 — — 3,750 Repurchase of common stock (36,080 ) — — — — (36,080 ) Withholdings from vesting of restricted stock (4,251 ) — — — — (4,251 ) Proceeds from exercise of stock options 6,548 — — — — 6,548 Net cash (used in) provided by financing activities (54,163 ) (102,310 ) 50,718 8,767 46,461 (50,527 ) Effect of exchange rate changes on cash — — — (57 ) — (57 ) Net (decrease) increase in cash and cash equivalents — (86,769 ) — 8,143 — (78,626 ) Cash and cash equivalents, beginning of period — 278,260 — 8,286 — 286,546 Cash and cash equivalents, end of period $ — $ 191,491 $ — $ 16,429 $ — $ 207,920 |
THE COMPANY (Details)
THE COMPANY (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 04, 2015USD ($)store | Jun. 28, 2014USD ($) | Jul. 04, 2015USD ($)store | Jun. 28, 2014USD ($) | |||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 612,765 | $ 574,065 | $ 1,297,529 | $ 1,225,709 | ||||
Licenses Revenue | 8,353 | 8,185 | 19,989 | 18,086 | ||||
Operating Income (Loss) | $ 61,952 | $ 47,347 | $ 146,457 | $ 108,878 | ||||
Operating income (loss) as percentage of segment net sales | 10.10% | 8.20% | 11.30% | 8.90% | ||||
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 | ||||
United States [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of locations | store | 562 | 562 | ||||||
United States [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of locations | store | 221 | 221 | ||||||
Canada [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of international retail stores | store | 133 | 133 | ||||||
Operating Segments [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 612,765 | 574,065 | $ 1,297,529 | 1,225,709 | ||||
Operating Segments [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 458,710 | 433,749 | 985,752 | 935,706 | ||||
Operating Income (Loss) | $ 78,538 | $ 71,039 | $ 180,962 | $ 160,885 | ||||
Operating income (loss) as percentage of segment net sales | 17.10% | 16.40% | 18.40% | 17.20% | ||||
Operating Segments [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 87,759 | $ 79,164 | $ 176,852 | $ 158,308 | ||||
Operating Income (Loss) | $ 434 | $ (835) | $ 2,453 | $ (3,298) | ||||
Operating income (loss) as percentage of segment net sales | 0.50% | (1.10%) | 1.40% | (2.10%) | ||||
Operating Segments [Member] | Retail [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [1] | $ 246,980 | $ 233,690 | $ 504,707 | $ 464,018 | |||
Operating Income (Loss) | $ 38,331 | [1] | $ 40,179 | [1] | $ 82,824 | $ 83,158 | [1] | |
Operating income (loss) as percentage of segment net sales | 15.50% | [1] | 17.20% | [1] | 16.40% | 17.90% | [1] | |
Operating Segments [Member] | Retail [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [1] | $ 73,453 | $ 67,515 | $ 146,495 | $ 131,073 | |||
Operating Income (Loss) | $ (1,815) | [1] | $ (1,694) | [1] | $ (2,775) | $ (6,183) | [1] | |
Operating income (loss) as percentage of segment net sales | (2.50%) | [1] | (2.50%) | [1] | (1.90%) | (4.70%) | [1] | |
Operating Segments [Member] | Wholesale [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 211,730 | $ 200,059 | $ 481,045 | $ 471,688 | ||||
Operating Income (Loss) | $ 40,207 | $ 30,860 | $ 98,138 | $ 77,727 | ||||
Operating income (loss) as percentage of segment net sales | 19.00% | 15.40% | 20.40% | 16.50% | ||||
Operating Segments [Member] | Wholesale [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 14,306 | $ 11,649 | $ 30,357 | $ 27,235 | ||||
Operating Income (Loss) | $ 2,249 | $ 859 | $ 5,228 | $ 2,885 | ||||
Operating income (loss) as percentage of segment net sales | 15.70% | 7.40% | 17.20% | 10.60% | ||||
[1] | Includes eCommerce results. |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ 6,200 | $ 200 | $ 2,800 | |
Total accumulated other comprehensive loss | (29,275) | (10,050) | $ (23,037) | |
Cumulative Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (21,635) | (7,520) | (15,397) | |
Pension and Post-retirement Liability Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ (7,640) | $ (2,530) | $ (7,640) |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Goodwill and Other Intangible Assets [Line Items] | |||||
Amortization costs | $ 2,100 | $ 5,600 | $ 4,400 | $ 11,900 | |
Goodwill, Gross amount | 178,753 | 186,173 | 178,753 | 186,173 | $ 181,975 |
Goodwill, Net amount | 178,753 | 186,173 | 178,753 | 186,173 | 181,975 |
Finite intangible assets, Accumulated amortization | 35,152 | 26,238 | 35,152 | 26,238 | 30,766 |
Total, Gross amount | 347,988 | 344,584 | 347,988 | 344,584 | 348,063 |
Total, Net amount | 312,836 | 318,346 | 312,836 | 318,346 | 317,297 |
Carter's Goodwill [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 136,570 | 136,570 | 136,570 | 136,570 | 136,570 |
Goodwill, Net amount | 136,570 | 136,570 | 136,570 | 136,570 | 136,570 |
Carter's Tradename [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Indefinite intangible assets | 220,233 | 220,233 | 220,233 | 220,233 | 220,233 |
Oshkosh Trade Name [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Indefinite intangible assets | 85,500 | 85,500 | 85,500 | 85,500 | 85,500 |
Bonnie Togs Goodwill [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 42,183 | 49,603 | 42,183 | 49,603 | 45,405 |
Goodwill, Net amount | 42,183 | 49,603 | 42,183 | 49,603 | 45,405 |
Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Finite intangible assets, Accumulated amortization | 34,933 | 26,028 | 34,933 | 26,028 | 30,541 |
Intangible assets, Gross amount | 347,769 | 344,303 | 347,769 | 344,303 | 347,806 |
Indefinite-lived trademarks | 312,836 | 318,275 | 312,836 | 318,275 | $ 317,265 |
Other Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Amortization costs | 2,100 | 5,600 | 4,400 | $ 11,900 | |
Future amortization expense, 2015 | 2,000 | 2,000 | |||
Future amortization expense, 2016 | 1,900 | 1,900 | |||
Future amortization expense, 2017 | 200 | 200 | |||
Future amortization expense, 2018 | 200 | 200 | |||
Future amortization expense, thereafter | 2,600 | $ 2,600 | |||
Weighted-average useful life | 3 years | 3 years | 3 years | ||
Finite intangible assets, Gross amount | 42,036 | 38,570 | $ 42,036 | $ 38,570 | $ 42,073 |
Finite intangible assets, Accumulated amortization | 34,933 | 26,028 | 34,933 | 26,028 | 30,541 |
Finite intangible assets, Net amount | 7,103 | 12,542 | $ 7,103 | $ 12,542 | $ 11,532 |
Non-compete Agreements [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Weighted-average useful life | 4 years | 4 years | 4 years | ||
Finite intangible assets, Gross amount | 219 | 281 | $ 219 | $ 281 | $ 257 |
Finite intangible assets, Accumulated amortization | 219 | 210 | 219 | 210 | 225 |
Finite intangible assets, Net amount | $ 0 | $ 71 | $ 0 | $ 71 | $ 32 |
COMMON STOCK (Share Repurchases
COMMON STOCK (Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Sep. 28, 2013 | Jan. 31, 2014 | Aug. 29, 2013 | Jun. 29, 2013 | Jan. 30, 2013 | |
Stockholders' Equity Note [Abstract] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 300 | ||||||||
Share repurchase, additional authorized amount | $ 400 | ||||||||
Number of shares repurchased and retired | 346,325 | 477,551 | 504,225 | 499,151 | |||||
Cost of repurchased and retired shares | $ 34.8 | $ 34.4 | $ 48.9 | $ 36.1 | |||||
Remaining capacity under authorization | $ 136.2 | $ 136.2 | |||||||
Average price per share | $ 100.40 | $ 72.10 | $ 96.97 | $ 72.28 | |||||
Uncollared accelerated stock repurchase agreement amount | $ 300 | ||||||||
Accelerated Share Repurchases, Agreement Amount | $ 100 | ||||||||
Received shares | 1,000,000 | 5,600,000 | |||||||
Dividend declared per common share | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 |
LONG-TERM DEBT (Schedule of Lon
LONG-TERM DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 586,298 | $ 586,000 | $ 586,000 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 400,000 | 400,000 | |
Secured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 186,298 | $ 186,000 | $ 186,000 |
CANADIAN NATIONAL STOCK EXCHANGE [Member] | Secured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | CDOR |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands, CAD in Millions | 6 Months Ended | |||
Jul. 04, 2015USD ($) | Jul. 04, 2015CAD | Jun. 28, 2014USD ($) | Jan. 03, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 586,298 | $ 586,000 | $ 586,000 | |
Outstanding letters of credit | 6,400 | |||
Payments on secured revolving credit facility | 20,000 | 0 | ||
Borrowings under secured revolving credit facility | 20,349 | 0 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 400,000 | 400,000 | ||
Debt Instrument, face amount | $ 400,000 | |||
Interest rate (as a percentage) | 5.25% | |||
Secured revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 186,298 | $ 186,000 | $ 186,000 | |
Payments on secured revolving credit facility | 20,000 | |||
Available for future borrowing | $ 182,300 | |||
Secured revolving credit facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR | ||
Secured revolving credit facility [Member] | CANADIAN NATIONAL STOCK EXCHANGE [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | CDOR | CDOR | ||
United States of America, Dollars | ||||
Debt Instrument [Line Items] | ||||
Borrowings under secured revolving credit facility | $ 20,300 | |||
United States of America, Dollars | Secured revolving credit facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate (as a percentage) | 1.93% | |||
Canada, Dollars | ||||
Debt Instrument [Line Items] | ||||
Borrowings under secured revolving credit facility | CAD | CAD 25.5 | |||
Canada, Dollars | Secured revolving credit facility [Member] | CANADIAN NATIONAL STOCK EXCHANGE [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate (as a percentage) | 2.74% |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,820 | $ 5,294 | $ 9,560 | $ 9,829 |
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,020 | 1,089 | 2,344 | 2,459 |
Time-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,612 | 1,697 | 3,695 | 3,639 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,093 | 1,427 | 2,426 | 2,650 |
Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,095 | $ 1,081 | $ 1,095 | $ 1,081 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Pension Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost on accumulated benefit obligation | $ 623 | $ 622 | $ 1,246 | $ 1,244 |
Expected return on plan assets | (785) | (798) | (1,570) | (1,596) |
Amortization of net actuarial loss (gain) | 161 | 21 | 322 | 42 |
Net periodic pension (benefit) cost | (1) | (155) | (2) | (310) |
Post-retirement Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost on accumulated benefit obligation | 45 | 57 | 90 | 114 |
Service cost – benefits attributed to service during the period | 32 | 28 | 64 | 56 |
Amortization of net actuarial loss (gain) | (48) | (52) | (96) | (104) |
Curtailment gain | 0 | (22) | 0 | (44) |
Net periodic pension (benefit) cost | $ 29 | $ 11 | $ 58 | $ 22 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Income Tax Disclosure [Abstract] | |||
Tax reserve Statue of Limitation, Benefits Recognized | $ 1.8 | ||
Gross unrecognized tax benefits | 9.8 | ||
Unrecognized tax benefits that if recognized would impact effective tax rate | 6.6 | ||
Reserves for unrecognized tax benefits | 1.7 | ||
Interest accrued on uncertain tax positions | $ 0.9 | $ 0.9 | $ 0.9 |
FAIR VALUE MEASUREMENTS FAIR 45
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) on Investments | $ 0.3 | $ 0.3 | ||
Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments | $ 7.9 | $ 7.9 | $ 7.6 | $ 6.7 |
FAIR VALUE MEASUREMENTS FAIR 46
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Contingent Consideration) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 1,077 | $ 0 | ||
Level 3 [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Balance at beginning of period | $ 7,661 | 7,711 | 16,348 | |
Accretion | 326 | $ (8) | 809 | 451 |
Foreign currency translation adjustment | (42) | 541 | (575) | 49 |
Balance at end of period | $ 9,022 | $ 16,848 | $ 9,022 | $ 16,848 |
Discount rate | 18.00% |
FAIR VALUE MEASUREMENTS FAIR 47
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Borrowings) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 586,298 | $ 586,000 | $ 586,000 |
Secured revolving credit facility [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 186,298 | 186,000 | 186,000 |
Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 400,000 | $ 400,000 | |
Debt Instrument, face amount | 400,000 | ||
Fair Value [Member] | Level 2 [Member] | Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 408,000 |
FAIR VALUE MEASUREMENTS FAIR 48
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Foreign exchange forward contracts) (Details) - Jul. 04, 2015 - USD ($) $ in Millions | Total | Total |
Fair Value Disclosures [Abstract] | ||
Investment Foreign Currency, Contract, Amount Purchased | $ 40 | $ 40 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 1.6 | 1.6 |
Unrealized Gain (Loss) on Investments | 1.6 | |
Gain (Loss) on Investments | $ 0.3 | $ 0.3 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Weighted-average number of common and common equivalent shares outstanding: | ||||
Basic number of common shares outstanding | 52,020,386 | 52,836,070 | 52,069,800 | 53,004,264 |
Dilutive effect of equity awards | 526,016 | 455,116 | 514,121 | 478,426 |
Diluted number of common and common equivalent shares outstanding | 52,546,402 | 53,291,186 | 52,583,921 | 53,482,690 |
Basic net income per common share (in thousands, except per share data): | ||||
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 |
Income allocated to participating securities | (305) | (345) | (847) | (812) |
Net income available to common shareholders | $ 35,800 | $ 25,552 | $ 85,050 | $ 59,381 |
Basic net income per common share | $ 0.69 | $ 0.48 | $ 1.63 | $ 1.12 |
Diluted net income per common share (in thousands, except per share data): | ||||
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 |
Income allocated to participating securities | (303) | (343) | (840) | (807) |
Net income available to common shareholders | $ 35,802 | $ 25,554 | $ 85,057 | $ 59,386 |
Diluted net income per common share | $ 0.68 | $ 0.48 | $ 1.62 | $ 1.11 |
Anti-dilutive shares (in shares) | 178,800 | 268,850 | 183,300 | 268,850 |
OTHER CURRENT AND LONG-TERM L50
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Other Liabilities Disclosure [Abstract] | |||
Accrued bonuses and incentive compensation | $ 7,400 | $ 18,875 | $ 6,320 |
Contingent consideration | 9,022 | 7,711 | 9,360 |
Income taxes payable | 1,034 | 692 | 994 |
Accrued workers' compensation | 1,468 | 2,662 | 7,458 |
Accrued Interest | 7,991 | 8,106 | 8,056 |
Accrued sales and use taxes | 3,720 | 5,318 | 4,961 |
Accrued salaries and wages | 3,344 | 3,576 | 5,744 |
Accrued gift certificates | 10,074 | 10,100 | 8,422 |
Accrued employee benefits | 8,252 | 17,132 | 8,675 |
Accrued and deferred rent | 13,123 | 11,879 | 804 |
Other current liabilities | 11,023 | 11,677 | 14,767 |
Total | $ 76,451 | $ 97,728 | $ 75,561 |
OTHER CURRENT AND LONG-TERM L51
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 |
Other Liabilities Disclosure [Abstract] | |||
Deferred lease incentives | $ 69,804 | $ 67,205 | $ 71,821 |
Accrued and deferred rent | 45,535 | 40,656 | 39,534 |
Contingent consideration | 0 | 0 | 7,488 |
Accrued workers' compensation | 6,016 | 4,717 | 0 |
OshKosh pension plan | 11,029 | 11,031 | 3,458 |
Unrecognized tax benefits | 10,692 | 12,230 | 12,756 |
Post-retirement life and medical plan | 4,731 | 4,731 | 5,122 |
Deferred compensation | 9,300 | 8,388 | 7,869 |
Other | 1,735 | 1,947 | 104 |
Total | $ 158,842 | $ 150,905 | $ 148,152 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 612,765 | $ 574,065 | $ 1,297,529 | $ 1,225,709 | ||||
Operating Income (Loss) | $ 61,952 | $ 47,347 | $ 146,457 | $ 108,878 | ||||
Operating income (loss) as percentage of segment net sales | 10.10% | 8.20% | 11.30% | 8.90% | ||||
Amortization of tradenames | $ 2,100 | $ 5,600 | $ 4,400 | $ 11,900 | ||||
Other Tradenames [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Amortization of tradenames | 2,100 | 5,600 | 4,400 | 11,900 | ||||
Hogansville Distribution Facility [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring charge due to closure | [1] | 0 | 300 | 0 | 600 | |||
Office Consolidation [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring charge due to closure | 0 | 4,600 | 0 | 6,600 | ||||
Operating Segments [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 612,765 | $ 574,065 | $ 1,297,529 | $ 1,225,709 | ||||
Percentage of total net sales | 0.00% | 100.00% | 100.00% | 100.00% | ||||
Operating Segments [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 458,710 | $ 433,749 | $ 985,752 | $ 935,706 | ||||
Percentage of total net sales | 75.00% | 75.50% | 76.10% | 76.40% | ||||
Operating Income (Loss) | $ 78,538 | $ 71,039 | $ 180,962 | $ 160,885 | ||||
Operating income (loss) as percentage of segment net sales | 17.10% | 16.40% | 18.40% | 17.20% | ||||
Operating Segments [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 87,759 | $ 79,164 | $ 176,852 | $ 158,308 | ||||
Percentage of total net sales | 14.30% | 13.80% | 13.60% | 12.90% | ||||
Operating Income (Loss) | $ 434 | $ (835) | $ 2,453 | $ (3,298) | ||||
Operating income (loss) as percentage of segment net sales | 0.50% | (1.10%) | 1.40% | (2.10%) | ||||
Operating Segments [Member] | Wholesale [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 211,730 | $ 200,059 | $ 481,045 | $ 471,688 | ||||
Percentage of total net sales | 34.60% | 34.80% | 37.10% | 38.50% | ||||
Operating Income (Loss) | $ 40,207 | $ 30,860 | $ 98,138 | $ 77,727 | ||||
Operating income (loss) as percentage of segment net sales | 19.00% | 15.40% | 20.40% | 16.50% | ||||
Operating Segments [Member] | Wholesale [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 14,306 | $ 11,649 | $ 30,357 | $ 27,235 | ||||
Percentage of total net sales | 2.30% | 2.00% | 2.30% | 2.20% | ||||
Operating Income (Loss) | $ 2,249 | $ 859 | $ 5,228 | $ 2,885 | ||||
Operating income (loss) as percentage of segment net sales | 15.70% | 7.40% | 17.20% | 10.60% | ||||
Operating Segments [Member] | Retail [Member] | Carter's [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [2] | $ 246,980 | $ 233,690 | $ 504,707 | $ 464,018 | |||
Percentage of total net sales | [2] | 40.40% | 40.70% | 39.00% | 37.90% | |||
Operating Income (Loss) | $ 38,331 | [2] | $ 40,179 | [2] | $ 82,824 | $ 83,158 | [2] | |
Operating income (loss) as percentage of segment net sales | 15.50% | [2] | 17.20% | [2] | 16.40% | 17.90% | [2] | |
Operating Segments [Member] | Retail [Member] | OshKosh [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [2] | $ 73,453 | $ 67,515 | $ 146,495 | $ 131,073 | |||
Percentage of total net sales | [2] | 12.00% | 11.80% | 11.30% | 10.70% | |||
Operating Income (Loss) | $ (1,815) | [2] | $ (1,694) | [2] | $ (2,775) | $ (6,183) | [2] | |
Operating income (loss) as percentage of segment net sales | (2.50%) | [2] | (2.50%) | [2] | (1.90%) | (4.70%) | [2] | |
Operating Segments [Member] | International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [3] | $ 66,296 | $ 61,152 | $ 134,925 | $ 131,695 | |||
Percentage of total net sales | [3] | 10.70% | 10.70% | 10.30% | 10.70% | |||
Operating Income (Loss) | $ 6,236 | [3],[4] | $ 7,107 | [3],[4] | $ 12,747 | $ 11,143 | [3],[4] | |
Operating income (loss) as percentage of segment net sales | 9.40% | [3],[4] | 11.60% | [3],[4] | 9.40% | 8.50% | [3],[4] | |
Corporate [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Corporate expenses | $ 23,256 | $ 29,964 | $ (49,705) | $ (59,852) | [5],[6] | |||
Corporate expense as percentage of segment net sales | ||||||||
[1] | Continuing operating costs associated with the closure of the Company's distribution facility in Hogansville, Georgia. This facility was sold in December 2014. | |||||||
[2] | Includes eCommerce results. | |||||||
[3] | Net sales include international retail, eCommerce, and wholesale sales. Operating income includes international licensing income. | |||||||
[4] | Includes charges associated with the revaluation of the Company's contingent consideration related to the Company's 2011 acquisition of Bonnie Togs of approximately $1.4 million for the fiscal quarter ended July 4, 2015, and $1.9 million and $0.5 million for each of the two-fiscal-quarter periods ended July 4, 2015 and June 28, 2014, respectively. The charge associated with the revaluation for the fiscal quarter ended June 28, 2014 was not material. Also includes expenses of approximately $0.9 million and $0.5 million for the second quarter of fiscal 2014 and for the first two quarters of fiscal 2014, respectively, related to the Company's exit from Japan retail operations. | |||||||
[5] | Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, building occupancy, information technology, certain legal fees, consulting, and audit fees. | |||||||
[6] | Fiscal quarter ended Two fiscal quarters ended(dollars in millions)July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014Closure of distribution facility in Hogansville, GA (1)$— $0.3 $— $0.6Office consolidation costs $— $4.6 $— $6.6Amortization of tradenames$2.1 $5.6 $4.4 $11.9(1) Continuing operating costs associated with the closure of the Company's distribution facility in Hogansville, Georgia. This facility was sold in December 2014. |
OFFICE CONSOLIDATION (Details)
OFFICE CONSOLIDATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2014 | Mar. 29, 2014 | Jul. 04, 2015 | |
Hogansville Distribution Facility [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Provision | $ 4.6 | $ 2 | |
Office Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 3.6 | ||
Payments | (1) | ||
Restructuring reserve, ending balance | $ 5.9 | 2.6 | |
Office Consolidation [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0.8 | ||
Payments | (0.5) | ||
Restructuring reserve, ending balance | 0.3 | ||
Office Consolidation [Member] | Other Closure Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 2.8 | ||
Payments | (0.5) | ||
Restructuring reserve, ending balance | $ 2.3 |
FACILITY CLOSURE RESTRUCTURING
FACILITY CLOSURE RESTRUCTURING AND RELATED ACTIVITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Office Consolidation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business Exit Costs | $ 0 | $ 4.6 | $ 0 | $ 6.6 |
Japan Retail Operations [Member] | Office Consolidation [Member] | Accelerated Depreciation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0.9 | |||
Cost of Sales [Member] | Japan Retail Operations [Member] | Recovery on Inventory [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 1 |
GUARANTOR CONDENSED CONSOLIDA55
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 | Dec. 28, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 244,301 | $ 340,638 | $ 207,920 | $ 286,546 |
Accounts receivable, net | 157,145 | 184,563 | 133,885 | |
Intercompany receivable | 0 | 0 | 0 | |
Intercompany Loan Receivables | 0 | 0 | ||
Finished goods inventories | 544,256 | 444,844 | 538,233 | |
Prepaid expenses and other current assets | 48,475 | 34,788 | 43,684 | |
Deferred income taxes | 31,871 | 36,625 | 36,534 | |
Total current assets | 1,026,048 | 1,041,458 | 960,256 | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 353,138 | 333,097 | 325,675 | |
Goodwill | 178,753 | 181,975 | 186,173 | |
Tradenames and other intangibles, net | 312,836 | 317,297 | 318,346 | |
Deferred debt issuance costs, net | 5,952 | 6,677 | 7,407 | |
Other assets | 12,842 | 12,592 | 11,305 | |
Intercompany long term receivable | 0 | 0 | 0 | |
Intercompany long term note receivable | 0 | 0 | 0 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Total assets | 1,889,569 | 1,893,096 | 1,809,162 | |
Current liabilities: | ||||
Accounts payable | 145,809 | 150,243 | 164,199 | |
Intercompany payables | 0 | 0 | 0 | |
Intercompany Loan Payables | 0 | 0 | ||
Other current liabilities | 76,451 | 97,728 | 75,561 | |
Total current liabilities | 222,260 | 247,971 | 239,760 | |
Long-term debt | 586,298 | 586,000 | 586,000 | |
Deferred income taxes | 119,230 | 121,536 | 114,878 | |
Intercompany long term liability | 0 | 0 | 0 | |
Intercompany long term note payable | 0 | 0 | 0 | |
Other long-term liabilities | 158,842 | 150,905 | 148,152 | |
Total stockholders' equity | 802,939 | 786,684 | 720,372 | |
Total liabilities and stockholders' equity | 1,889,569 | 1,893,096 | 1,809,162 | |
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | 0 | |
Intercompany receivable | 0 | 0 | 0 | |
Intercompany Loan Receivables | 0 | 0 | ||
Finished goods inventories | 0 | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Total current assets | 0 | 0 | 0 | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Tradenames and other intangibles, net | 0 | 0 | 0 | |
Deferred debt issuance costs, net | 0 | 0 | 0 | |
Other assets | 0 | 0 | 0 | |
Intercompany long term receivable | 0 | 0 | 0 | |
Intercompany long term note receivable | 0 | 0 | 0 | |
Investment in subsidiaries | 802,939 | 786,684 | 720,372 | |
Total assets | 802,939 | 786,684 | 720,372 | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Intercompany payables | 0 | 0 | 0 | |
Intercompany Loan Payables | 0 | 0 | ||
Other current liabilities | 0 | 0 | 0 | |
Total current liabilities | 0 | 0 | 0 | |
Long-term debt | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Intercompany long term liability | 0 | 0 | 0 | |
Intercompany long term note payable | 0 | 0 | 0 | |
Other long-term liabilities | 0 | 0 | 0 | |
Total stockholders' equity | 802,939 | 786,684 | 720,372 | |
Total liabilities and stockholders' equity | 802,939 | 786,684 | 720,372 | |
Subsidiary Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 211,730 | 311,078 | 191,491 | 278,260 |
Accounts receivable, net | 130,386 | 155,192 | 112,126 | |
Intercompany receivable | 57,590 | 58,402 | 57,106 | |
Intercompany Loan Receivables | 20,000 | 10,000 | ||
Finished goods inventories | 322,981 | 240,702 | 299,688 | |
Prepaid expenses and other current assets | 28,053 | 15,143 | 23,700 | |
Deferred income taxes | 19,253 | 21,308 | 22,136 | |
Total current assets | 769,993 | 821,825 | 716,247 | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 160,022 | 158,017 | 157,289 | |
Goodwill | 136,570 | 136,570 | 136,570 | |
Tradenames and other intangibles, net | 227,336 | 231,765 | 232,776 | |
Deferred debt issuance costs, net | 5,952 | 6,677 | 7,407 | |
Other assets | 11,945 | 11,781 | 11,305 | |
Intercompany long term receivable | 0 | 0 | 0 | |
Intercompany long term note receivable | 100,000 | 100,000 | 100,000 | |
Investment in subsidiaries | 595,255 | 591,735 | 562,665 | |
Total assets | 2,007,073 | 2,058,370 | 1,924,259 | |
Current liabilities: | ||||
Accounts payable | 87,405 | 102,233 | 105,126 | |
Intercompany payables | 63,369 | 105,940 | 90,697 | |
Intercompany Loan Payables | 0 | 0 | ||
Other current liabilities | 35,948 | 15,782 | 29,830 | |
Total current liabilities | 186,722 | 223,955 | 225,653 | |
Long-term debt | 566,000 | 586,000 | 586,000 | |
Deferred income taxes | 79,351 | 81,406 | 71,822 | |
Intercompany long term liability | 267,160 | 274,584 | 221,496 | |
Intercompany long term note payable | 0 | 0 | 0 | |
Other long-term liabilities | 70,999 | 69,467 | 67,275 | |
Total stockholders' equity | 836,841 | 822,958 | 752,013 | |
Total liabilities and stockholders' equity | 2,007,073 | 2,058,370 | 1,924,259 | |
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 13,007 | 10,442 | 0 | 0 |
Accounts receivable, net | 21,531 | 22,770 | 15,924 | |
Intercompany receivable | 60,737 | 106,137 | 92,532 | |
Intercompany Loan Receivables | 0 | 0 | ||
Finished goods inventories | 194,245 | 191,953 | 212,817 | |
Prepaid expenses and other current assets | 14,027 | 13,059 | 13,906 | |
Deferred income taxes | 10,851 | 12,983 | 13,130 | |
Total current assets | 314,398 | 357,344 | 348,309 | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 164,578 | 147,076 | 140,538 | |
Goodwill | 0 | 0 | 0 | |
Tradenames and other intangibles, net | 85,500 | 85,500 | 85,500 | |
Deferred debt issuance costs, net | 0 | 0 | 0 | |
Other assets | 853 | 811 | 0 | |
Intercompany long term receivable | 267,160 | 274,584 | 221,496 | |
Intercompany long term note receivable | 0 | 0 | 0 | |
Investment in subsidiaries | 15,283 | 9,647 | 4,725 | |
Total assets | 847,772 | 874,962 | 800,568 | |
Current liabilities: | ||||
Accounts payable | 35,589 | 37,869 | 35,802 | |
Intercompany payables | 56,452 | 55,812 | 64,911 | |
Intercompany Loan Payables | 0 | 0 | ||
Other current liabilities | 26,485 | 67,793 | 29,830 | |
Total current liabilities | 118,526 | 161,474 | 130,543 | |
Long-term debt | 0 | 0 | 0 | |
Deferred income taxes | 39,879 | 40,130 | 43,056 | |
Intercompany long term liability | 0 | 0 | 0 | |
Intercompany long term note payable | 100,000 | 100,000 | 100,000 | |
Other long-term liabilities | 75,133 | 68,426 | 61,039 | |
Total stockholders' equity | 514,234 | 504,932 | 465,930 | |
Total liabilities and stockholders' equity | 847,772 | 874,962 | 800,568 | |
Non-Guarantors Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 19,564 | 19,118 | 16,429 | 8,286 |
Accounts receivable, net | 5,228 | 6,601 | 5,835 | |
Intercompany receivable | 3,831 | 2,012 | 12,800 | |
Intercompany Loan Receivables | 0 | 0 | ||
Finished goods inventories | 60,932 | 48,463 | 57,369 | |
Prepaid expenses and other current assets | 6,395 | 6,586 | 6,078 | |
Deferred income taxes | 1,767 | 2,334 | 1,268 | |
Total current assets | 97,717 | 85,114 | 99,779 | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 28,538 | 28,004 | 27,848 | |
Goodwill | 42,183 | 45,405 | 49,603 | |
Tradenames and other intangibles, net | 0 | 32 | 70 | |
Deferred debt issuance costs, net | 0 | 0 | 0 | |
Other assets | 44 | 0 | 0 | |
Intercompany long term receivable | 0 | 0 | 0 | |
Intercompany long term note receivable | 0 | 0 | 0 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Total assets | 168,482 | 158,555 | 177,300 | |
Current liabilities: | ||||
Accounts payable | 22,815 | 10,141 | 23,271 | |
Intercompany payables | 2,337 | 4,799 | 6,830 | |
Intercompany Loan Payables | 20,000 | 10,000 | ||
Other current liabilities | 14,018 | 14,153 | 15,901 | |
Total current liabilities | 39,170 | 49,093 | 56,002 | |
Long-term debt | 20,298 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Intercompany long term liability | 0 | 0 | 0 | |
Intercompany long term note payable | 0 | 0 | 0 | |
Other long-term liabilities | 12,710 | 13,012 | 19,838 | |
Total stockholders' equity | 96,304 | 96,450 | 101,460 | |
Total liabilities and stockholders' equity | 168,482 | 158,555 | 177,300 | |
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Accounts receivable, net | 0 | 0 | 0 | |
Intercompany receivable | (122,158) | (166,551) | (162,438) | |
Intercompany Loan Receivables | (20,000) | (10,000) | ||
Finished goods inventories | (33,902) | (36,274) | (31,641) | |
Prepaid expenses and other current assets | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Total current assets | (156,060) | (222,825) | (204,079) | |
Property, plant, and equipment, net of accumulated depreciation of $263,580, $245,011, and $233,812 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Tradenames and other intangibles, net | 0 | 0 | 0 | |
Deferred debt issuance costs, net | 0 | 0 | 0 | |
Other assets | 0 | 0 | 0 | |
Intercompany long term receivable | (267,160) | (274,584) | (221,496) | |
Intercompany long term note receivable | (100,000) | (100,000) | (100,000) | |
Investment in subsidiaries | (1,413,477) | (1,388,066) | (1,287,762) | |
Total assets | (1,936,697) | (1,985,475) | (1,813,337) | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Intercompany payables | (122,158) | (166,551) | (162,438) | |
Intercompany Loan Payables | (20,000) | (10,000) | ||
Other current liabilities | 0 | 0 | 0 | |
Total current liabilities | (122,158) | (186,551) | (172,438) | |
Long-term debt | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Intercompany long term liability | (267,160) | (274,584) | (221,496) | |
Intercompany long term note payable | (100,000) | (100,000) | (100,000) | |
Other long-term liabilities | 0 | 0 | 0 | |
Total stockholders' equity | (1,447,379) | (1,424,340) | (1,319,403) | |
Total liabilities and stockholders' equity | $ (1,936,697) | $ (1,985,475) | $ (1,813,337) |
GUARANTOR CONDENSED CONSOLIDA56
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | $ 612,765 | $ 574,065 | $ 1,297,529 | $ 1,225,709 |
Cost of goods sold | 349,870 | 328,588 | 750,582 | 718,507 |
Gross profit | 262,895 | 245,477 | 546,947 | 507,202 |
Selling, general, and administrative expenses | 209,296 | 206,315 | 420,479 | 416,410 |
Interest expense | (8,353) | (8,185) | (19,989) | (18,086) |
Operating income | 61,952 | 47,347 | 146,457 | 108,878 |
Interest expense | 6,935 | 6,882 | 13,627 | 13,780 |
Other expense, net | (157) | (140) | (294) | (272) |
(Income) loss in subsidiaries | 0 | 0 | 0 | 0 |
Other (income) expense, net | (1,900) | (189) | 62 | 407 |
Income before income taxes | 57,074 | 40,794 | 133,062 | 94,963 |
Provision for income taxes | 20,969 | 14,897 | 47,165 | 34,770 |
Net income | 36,105 | 25,897 | 85,897 | 60,193 |
Parent [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other expense, net | 0 | 0 | 0 | 0 |
(Income) loss in subsidiaries | (36,105) | (25,897) | (85,897) | (60,193) |
Other (income) expense, net | 0 | 0 | 0 | 0 |
Income before income taxes | 36,105 | 25,897 | 85,897 | 60,193 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | 36,105 | 25,897 | 85,897 | 60,193 |
Subsidiary Issuer [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 362,318 | 338,518 | 797,604 | 745,883 |
Cost of goods sold | 254,299 | 246,763 | 552,510 | 540,536 |
Gross profit | 108,019 | 91,755 | 245,094 | 205,347 |
Selling, general, and administrative expenses | 42,167 | 41,068 | 84,416 | 89,595 |
Interest expense | (6,341) | (5,932) | (15,380) | (13,977) |
Operating income | 72,193 | 56,619 | 176,058 | 129,729 |
Interest expense | 6,773 | 6,882 | 13,435 | 13,780 |
Other expense, net | (1,445) | (1,452) | (3,002) | (2,922) |
(Income) loss in subsidiaries | 9,306 | 13,359 | 32,700 | 30,794 |
Other (income) expense, net | (49) | (78) | (195) | (134) |
Income before income taxes | 57,608 | 37,908 | 133,120 | 88,211 |
Provision for income taxes | 23,974 | 11,234 | 49,595 | 28,197 |
Net income | 33,634 | 26,674 | 83,525 | 60,014 |
Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 351,161 | 325,673 | 710,557 | 647,381 |
Cost of goods sold | 213,845 | 187,574 | 436,760 | 375,594 |
Gross profit | 137,316 | 138,099 | 273,797 | 271,787 |
Selling, general, and administrative expenses | 157,636 | 153,552 | 314,899 | 299,969 |
Interest expense | (3,768) | (4,168) | (8,479) | (8,195) |
Operating income | (16,552) | (11,285) | (32,623) | (19,987) |
Interest expense | 1,333 | 1,298 | 2,676 | 2,611 |
Other expense, net | 0 | 0 | 0 | 0 |
(Income) loss in subsidiaries | (3,042) | (6,192) | (3,562) | (6,778) |
Other (income) expense, net | 26 | 58 | 163 | 114 |
Income before income taxes | (14,869) | (6,449) | (31,900) | (15,934) |
Provision for income taxes | (4,867) | 2,181 | (2,887) | 5,921 |
Net income | (10,002) | (8,630) | (29,013) | (21,855) |
Non-Guarantors Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 52,638 | 49,005 | 99,758 | 98,163 |
Cost of goods sold | 27,129 | 25,745 | 57,608 | 55,804 |
Gross profit | 25,509 | 23,260 | 42,150 | 42,359 |
Selling, general, and administrative expenses | 21,669 | 20,470 | 41,500 | 43,402 |
Interest expense | 0 | 0 | 0 | 0 |
Operating income | 3,840 | 2,790 | 650 | (1,043) |
Interest expense | 141 | 19 | 256 | 43 |
Other expense, net | (24) | (5) | (32) | (4) |
(Income) loss in subsidiaries | 0 | 0 | 0 | 0 |
Other (income) expense, net | (1,877) | (169) | 94 | 427 |
Income before income taxes | 5,600 | 2,945 | 332 | (1,509) |
Provision for income taxes | 1,862 | 1,482 | 457 | 652 |
Net income | 3,738 | 1,463 | (125) | (2,161) |
Consolidating Adjustments [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | (153,352) | (139,131) | (310,390) | (265,718) |
Cost of goods sold | (145,403) | (131,494) | (296,296) | (253,427) |
Gross profit | (7,949) | (7,637) | (14,094) | (12,291) |
Selling, general, and administrative expenses | (12,176) | (8,775) | (20,336) | (16,556) |
Interest expense | 1,756 | 1,915 | 3,870 | 4,086 |
Operating income | 2,471 | (777) | 2,372 | 179 |
Interest expense | (1,312) | (1,317) | (2,740) | (2,654) |
Other expense, net | 1,312 | 1,317 | 2,740 | 2,654 |
(Income) loss in subsidiaries | 29,841 | 18,730 | 56,759 | 36,177 |
Other (income) expense, net | 0 | 0 | 0 | 0 |
Income before income taxes | (27,370) | (19,507) | (54,387) | (35,998) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | $ (27,370) | $ (19,507) | $ (54,387) | $ (35,998) |
GUARANTOR CONDENSED CONSOLIDA57
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 36,105 | $ 25,897 | $ 85,897 | $ 60,193 |
Foreign currency translation adjustments | (244) | 2,792 | (6,238) | 32 |
Comprehensive income | 35,861 | 28,689 | 79,659 | 60,225 |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 36,105 | 25,897 | 85,897 | 60,193 |
Foreign currency translation adjustments | (244) | 2,792 | (6,238) | 32 |
Comprehensive income | 35,861 | 28,689 | 79,659 | 60,225 |
Subsidiary Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 33,634 | 26,674 | 83,525 | 60,014 |
Foreign currency translation adjustments | (244) | 2,792 | (6,238) | 32 |
Comprehensive income | 33,390 | 29,466 | 77,287 | 60,046 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (10,002) | (8,630) | (29,013) | (21,855) |
Foreign currency translation adjustments | 22 | (1) | 30 | (133) |
Comprehensive income | (9,980) | (8,631) | (28,983) | (21,988) |
Non-Guarantors Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 3,738 | 1,463 | (125) | (2,161) |
Foreign currency translation adjustments | (244) | 2,792 | (6,238) | 32 |
Comprehensive income | 3,494 | 4,255 | (6,363) | (2,129) |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (27,370) | (19,507) | (54,387) | (35,998) |
Foreign currency translation adjustments | 466 | (5,583) | 12,446 | 69 |
Comprehensive income | $ (26,904) | $ (25,090) | $ (41,941) | $ (35,929) |
GUARANTOR CONDENSED CONSOLIDA58
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | $ 27,132 | $ 33,124 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (50,284) | (61,300) | ||
Intercompany investing activity | 0 | 0 | ||
Proceeds From Repayment of Intercompany Loan | 0 | |||
Proceeds from sale of property, plant and equipment | 43 | 134 | ||
Net cash used in investing activities | (50,241) | (61,166) | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | 0 | 0 | ||
Proceeds from intercompany loan | 0 | 0 | ||
Borrowings under secured revolving credit facility | 20,349 | 0 | ||
Payments on secured revolving credit facility | (20,000) | 0 | ||
Dividends paid | (23,143) | (20,380) | ||
Payments of debt issuance costs | 0 | (114) | ||
Repurchase of common stock | (48,894) | (36,080) | ||
Income tax benefit from stock-based compensation | 6,890 | 3,750 | ||
Withholdings from vesting of restricted stock | (12,377) | (4,251) | ||
Proceeds from exercise of stock options | 4,560 | 6,548 | ||
Net cash (used in) provided by financing activities | (72,615) | (50,527) | ||
Effect of exchange rate changes on cash | (613) | (57) | ||
Net increase (decrease) in cash and cash equivalents | (96,337) | (78,626) | ||
Cash and cash equivalents, beginning of period | 340,638 | 286,546 | ||
Cash and cash equivalents, end of period | $ 244,301 | $ 207,920 | 244,301 | 207,920 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 6,890 | 3,750 | ||
Gain (Loss) on Disposition of Property Plant Equipment | (90) | (544) | ||
Amortization of debt issuance costs | 678 | 763 | ||
Non-cash stock-based compensation expense | 4,820 | 5,294 | 9,560 | 9,829 |
Parent [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Intercompany investing activity | 79,854 | 54,163 | ||
Proceeds From Repayment of Intercompany Loan | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Net cash used in investing activities | 79,854 | 54,163 | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | 0 | 0 | ||
Proceeds from intercompany loan | 0 | 0 | ||
Borrowings under secured revolving credit facility | 0 | |||
Payments on secured revolving credit facility | 0 | |||
Dividends paid | (23,143) | (20,380) | ||
Payments of debt issuance costs | 0 | |||
Repurchase of common stock | (48,894) | (36,080) | ||
Income tax benefit from stock-based compensation | 0 | 0 | ||
Withholdings from vesting of restricted stock | (12,377) | (4,251) | ||
Proceeds from exercise of stock options | 4,560 | 6,548 | ||
Net cash (used in) provided by financing activities | (79,854) | (54,163) | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Subsidiary Issuer [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | 39,654 | 54,656 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (15,591) | (33,691) | ||
Intercompany investing activity | (5,648) | 4,442 | ||
Payment of Intercompany Borrowings | (10,000) | |||
Proceeds From Repayment of Intercompany Loan | 20,000 | |||
Proceeds from sale of property, plant and equipment | 36 | 134 | ||
Net cash used in investing activities | (1,203) | (39,115) | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | (122,520) | (103,802) | ||
Proceeds from intercompany loan | 0 | 0 | ||
Borrowings under secured revolving credit facility | 0 | |||
Payments on secured revolving credit facility | (20,000) | |||
Dividends paid | 0 | 0 | ||
Payments of debt issuance costs | (114) | |||
Repurchase of common stock | 0 | 0 | ||
Income tax benefit from stock-based compensation | 4,721 | 1,606 | ||
Withholdings from vesting of restricted stock | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Net cash (used in) provided by financing activities | (137,799) | (102,310) | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (99,348) | (86,769) | ||
Cash and cash equivalents, beginning of period | 311,078 | 278,260 | ||
Cash and cash equivalents, end of period | 211,730 | 191,491 | 211,730 | 191,491 |
Guarantor Subsidiaries [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | (20,473) | (26,855) | ||
Cash flows from investing activities: | ||||
Capital expenditures | (29,683) | (21,719) | ||
Intercompany investing activity | (2,169) | (2,144) | ||
Proceeds From Repayment of Intercompany Loan | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Net cash used in investing activities | (31,852) | (23,863) | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | 52,721 | 48,574 | ||
Proceeds from intercompany loan | 0 | 0 | ||
Borrowings under secured revolving credit facility | 0 | |||
Payments on secured revolving credit facility | 0 | |||
Dividends paid | 0 | 0 | ||
Payments of debt issuance costs | 0 | |||
Repurchase of common stock | 0 | 0 | ||
Income tax benefit from stock-based compensation | 2,169 | 2,144 | ||
Withholdings from vesting of restricted stock | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Net cash (used in) provided by financing activities | 54,890 | 50,718 | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 2,565 | 0 | ||
Cash and cash equivalents, beginning of period | 10,442 | 0 | ||
Cash and cash equivalents, end of period | 13,007 | 0 | 13,007 | 0 |
Non-Guarantors Subsidiaries [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | 7,951 | 5,323 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (5,010) | (5,890) | ||
Intercompany investing activity | 0 | 0 | ||
Proceeds From Repayment of Intercompany Loan | 0 | |||
Proceeds from sale of property, plant and equipment | 7 | 0 | ||
Net cash used in investing activities | (5,003) | (5,890) | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | (2,238) | (1,233) | ||
Proceeds from intercompany loan | (20,000) | 10,000 | ||
Borrowings under secured revolving credit facility | 20,349 | |||
Payments on secured revolving credit facility | 0 | |||
Dividends paid | 0 | 0 | ||
Payments of debt issuance costs | 0 | |||
Repurchase of common stock | 0 | 0 | ||
Income tax benefit from stock-based compensation | 0 | 0 | ||
Withholdings from vesting of restricted stock | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Net cash (used in) provided by financing activities | (1,889) | 8,767 | ||
Effect of exchange rate changes on cash | (613) | (57) | ||
Net increase (decrease) in cash and cash equivalents | 446 | 8,143 | ||
Cash and cash equivalents, beginning of period | 19,118 | 8,286 | ||
Cash and cash equivalents, end of period | 19,564 | 16,429 | 19,564 | 16,429 |
Consolidating Adjustments [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Intercompany investing activity | (72,037) | (56,461) | ||
Payment of Intercompany Borrowings | 10,000 | |||
Proceeds From Repayment of Intercompany Loan | (20,000) | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Net cash used in investing activities | (92,037) | (46,461) | ||
Cash flows from financing activities: | ||||
Intercompany financing activity | 72,037 | 56,461 | ||
Proceeds from intercompany loan | 20,000 | (10,000) | ||
Borrowings under secured revolving credit facility | 0 | |||
Payments on secured revolving credit facility | 0 | |||
Dividends paid | 0 | 0 | ||
Payments of debt issuance costs | 0 | |||
Repurchase of common stock | 0 | 0 | ||
Income tax benefit from stock-based compensation | 0 | 0 | ||
Withholdings from vesting of restricted stock | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Net cash (used in) provided by financing activities | 92,037 | 46,461 | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Uncategorized Items - cri-20150
Label | Element | Value |
Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | $ 16,315 |