Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document Information [Abstract] | |||
Entity Registrant Name | CARTERS INC | ||
Entity Central Index Key | 1,060,822 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 45,526,000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,867,389,196 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 170,077 | $ 178,494 |
Accounts receivable, net | 258,259 | 240,561 |
Finished goods inventories | 574,226 | 548,722 |
Prepaid expenses and other current assets | 40,396 | 52,935 |
Total current assets | 1,042,958 | 1,020,712 |
Property, plant, and equipment, net | 350,437 | 377,924 |
Tradenames, net | 365,692 | 365,551 |
Goodwill | 227,101 | 230,424 |
Customer relationships, net | 44,511 | 47,996 |
Other assets | 28,159 | 28,435 |
Total assets | 2,058,858 | 2,071,042 |
Current liabilities: | ||
Accounts payable | 199,076 | 182,114 |
Other current liabilities | 128,345 | 149,134 |
Total current liabilities | 327,421 | 331,248 |
Long-term debt, net | 593,264 | 617,306 |
Deferred income taxes | 87,347 | 84,944 |
Other long-term liabilities | 181,393 | 180,128 |
Total liabilities | 1,189,425 | 1,213,626 |
Stockholders’ equity: | ||
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at December 29, 2018 and December 30, 2017 | 0 | 0 |
Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 45,629,014 and 47,178,346 shares issued and outstanding at December 29, 2018 and December 30, 2017, respectively | 456 | 472 |
Accumulated other comprehensive loss | (40,839) | (29,093) |
Retained earnings | 909,816 | 886,037 |
Total stockholders’ equity | 869,433 | 857,416 |
Total liabilities and stockholders’ equity | $ 2,058,858 | $ 2,071,042 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock; par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized | 100,000 | 100,000 |
Preferred stock; issued | 0 | 0 |
Preferred stock; outstanding | 0 | 0 |
Common stock, voting; par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, voting; shares authorized | 150,000,000 | 150,000,000 |
Common stock voting; shares issued | 45,629,014 | 47,178,346 |
Common stock voting; shares outstanding | 45,629,014 | 47,178,346 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 | |
Cost of goods sold | 1,964,786 | 1,917,150 | 1,820,024 | |||||||||
Gross profit | 467,598 | 387,450 | 309,958 | 332,477 | 460,837 | 403,578 | 303,247 | 315,692 | 1,497,483 | 1,483,354 | 1,378,519 | |
Royalty income, net | 1,086,379 | 923,907 | 696,197 | 755,786 | 1,027,880 | 948,046 | 691,751 | 732,827 | 3,462,269 | 3,400,504 | 3,198,543 | |
Selling, general, and administrative expenses | 307,358 | 294,117 | 263,343 | 280,162 | 325,508 | 283,480 | 250,146 | 247,794 | 1,144,980 | 1,106,928 | 995,406 | |
Operating income | 170,597 | 103,557 | 56,970 | 60,309 | 146,392 | 130,448 | 64,311 | 78,456 | 391,433 | 419,607 | 425,928 | |
Interest expense | 34,569 | 30,044 | 27,044 | |||||||||
Interest income | (527) | (345) | (563) | |||||||||
Other (income) expense, net | 1,416 | (1,164) | 4,007 | |||||||||
Income before income taxes | 355,975 | 391,072 | 395,440 | |||||||||
Provision for income taxes | 73,907 | 88,224 | 137,731 | |||||||||
Net income | $ 130,561 | $ 71,770 | $ 37,268 | $ 42,469 | $ 136,144 | $ 82,316 | $ 37,793 | $ 46,595 | $ 282,068 | $ 302,848 | $ 257,709 | |
Basic net income per common share | $ 2.85 | $ 1.55 | $ 0.80 | $ 0.90 | $ 2.88 | $ 1.73 | $ 0.78 | $ 0.96 | $ 6.06 | $ 6.31 | $ 5.12 | |
Diluted net income per common share | 2.83 | 1.53 | 0.79 | 0.89 | $ 2.85 | $ 1.71 | $ 0.77 | 0.95 | 6 | 6.24 | 5.08 | |
Dividend declared and paid per common share | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.37 | $ 1.80 | $ 1.48 | $ 1.32 | ||||
Royalty [Member] | ||||||||||||
Net sales | $ 10,357 | $ 10,224 | $ 10,355 | $ 7,994 | $ 11,063 | $ 10,350 | $ 11,210 | $ 10,558 | $ 42,815 | $ 38,930 | $ 43,181 | $ 42,815 |
Royalty income, net | $ 10,357 | $ 10,224 | $ 10,355 | $ 7,994 | $ 11,063 | $ 10,350 | $ 11,210 | $ 10,558 | $ 42,815 | $ 38,930 | $ 43,181 | $ 42,815 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 282,068 | $ 302,848 | $ 257,709 |
Other comprehensive income: | |||
Unrealized loss on OshKosh defined benefit plan, net of tax benefit of $80, $140, and $400 for the fiscal years 2018, 2017, and 2016, respectively | (281) | (430) | (666) |
Unrealized gain (loss) on Carter's post-retirement benefit obligation, net of (tax) or tax benefit of ($70), $70, and ($200) for fiscal years 2018, 2017, and 2016, respectively | 214 | (262) | 331 |
Foreign currency translation adjustments | (11,679) | 6,339 | 1,962 |
Total other comprehensive income | (11,746) | 5,647 | 1,627 |
Comprehensive income | $ 270,322 | $ 308,495 | $ 259,336 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension Plans | |||
Unrealized gain (loss) on OshKosh defined benefit and postretirement plans, tax | $ 80 | $ 140 | $ 400 |
Postretirement Benefit | |||
Unrealized gain (loss) on OshKosh defined benefit and postretirement plans, tax | $ (70) | $ 70 | $ (200) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 282,068 | $ 302,848 | $ 257,709 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant, and equipment | 85,936 | 81,796 | 71,522 |
Amortization of intangible assets | 3,717 | 2,616 | 1,919 |
Adjustment and accretion of contingent considerations | 0 | (3,600) | 0 |
Amortization of debt issuance costs | 1,746 | 1,572 | 1,461 |
Non-cash stock-based compensation expense | 14,673 | 17,549 | 16,847 |
Unrealized foreign currency exchange loss (gain), net | 271 | (624) | 33 |
Provisions for doubtful accounts receivable from customers | 15,801 | 4,663 | 562 |
Income tax benefit from stock-based compensation | 0 | 0 | (4,800) |
Loss on disposal of property, plant, and equipment | 995 | 1,572 | 1,167 |
Deferred income taxes | (1,018) | (54,936) | 1,061 |
Effect of changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (34,448) | (22,709) | 4,479 |
Inventories | (30,646) | (20,922) | (17,482) |
Prepaid expenses and other assets | 12,121 | (21,791) | 1,141 |
Accounts payable and other liabilities | 4,982 | 41,587 | 33,610 |
Net cash provided by operating activities | 356,198 | 329,621 | 369,229 |
Cash flows from investing activities: | |||
Capital expenditures | (63,783) | (69,473) | (88,556) |
Acquisitions of businesses, net of cash acquired | (158,457) | 0 | |
Payments for (Proceeds from) Productive Assets | 96 | ||
Disposals of property, plant, and equipment | 380 | 15 | 216 |
Net cash used in investing activities | (63,307) | (227,915) | (88,340) |
Cash flows from financing activities: | |||
Payments of debt issuance costs | (968) | (2,119) | 0 |
Borrowings under secured revolving credit facility | 290,000 | 200,000 | 0 |
Payments on secured revolving credit facility | (315,000) | (163,965) | 0 |
Repurchases of common stock | (193,028) | (188,762) | (300,445) |
Dividends paid | (83,717) | (70,914) | (66,355) |
Income tax benefit from stock-based compensation | 0 | 0 | 4,800 |
Withholdings of taxes from vesting of restricted stock | (6,830) | (5,753) | (8,673) |
Proceeds from exercises of stock options | 10,597 | 8,438 | 7,166 |
Net cash used in financing activities | (298,946) | (223,075) | (363,507) |
Net effect of exchange rate changes on cash | (2,362) | 505 | 767 |
Net (decrease) increase in cash and cash equivalents | (8,417) | (120,864) | (81,851) |
Cash and cash equivalents, beginning of fiscal year | 178,494 | 299,358 | 381,209 |
Cash and cash equivalents, end of fiscal year | $ 170,077 | $ 178,494 | $ 299,358 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Jan. 02, 2016 | $ 875,687 | $ 518 | $ 0 | $ (36,367) | $ 911,536 |
Balance (in shares) at Jan. 02, 2016 | 51,764,309 | ||||
Income tax benefit from stock-based compensation | 4,800 | 4,800 | |||
Exercise of stock options | 7,166 | $ 2 | 7,164 | ||
Exercise of stock options (in shares) | 160,200 | ||||
Withholdings from vesting of restricted stock | (8,673) | $ (1) | (8,672) | ||
Withholdings from vesting of restricted stock (in shares) | (91,629) | ||||
Restricted stock activity | 0 | $ 1 | (1) | ||
Restricted stock activity (in shares) | 152,413 | ||||
Stock-based compensation expense | 15,662 | 15,662 | |||
Issuance of common stock | 1,185 | 1,185 | |||
Issuance of common stock (in shares) | 12,758 | ||||
Repurchases of common stock | (300,445) | $ (31) | (20,138) | (280,276) | |
Repurchase of common stock (in shares) | (3,049,381) | ||||
Cash dividends declared and paid | (66,355) | (66,355) | |||
Comprehensive income | 259,336 | $ 0 | 0 | 1,627 | |
Net income | 257,709 | ||||
Balance at Dec. 31, 2016 | 788,363 | $ 489 | 0 | (34,740) | 822,614 |
Balance (in shares) at Dec. 31, 2016 | 48,948,670 | ||||
Exercise of stock options | 8,438 | $ 2 | 8,436 | ||
Exercise of stock options (in shares) | 240,850 | ||||
Withholdings from vesting of restricted stock | (5,753) | $ (1) | (5,752) | ||
Withholdings from vesting of restricted stock (in shares) | (67,546) | ||||
Restricted stock activity | 0 | $ 2 | (2) | ||
Restricted stock activity (in shares) | 145,913 | ||||
Stock-based compensation expense | 16,378 | 16,378 | |||
Issuance of common stock | 1,171 | $ 1 | 1,170 | ||
Issuance of common stock (in shares) | 13,860 | ||||
Repurchases of common stock | (188,762) | $ (21) | (20,230) | (168,511) | |
Repurchase of common stock (in shares) | (2,103,401) | ||||
Cash dividends declared and paid | (70,914) | (70,914) | |||
Comprehensive income | 308,495 | $ 0 | 0 | 5,647 | |
Net income | 302,848 | ||||
Balance at Dec. 30, 2017 | $ 857,416 | $ 472 | 0 | (29,093) | 886,037 |
Balance (in shares) at Dec. 30, 2017 | 47,178,346 | 47,178,346 | |||
Exercise of stock options | $ 10,597 | $ 3 | 10,594 | ||
Exercise of stock options (in shares) | 261,113 | 261,113 | |||
Withholdings from vesting of restricted stock | $ (6,830) | $ (1) | (6,829) | ||
Withholdings from vesting of restricted stock (in shares) | (57,554) | ||||
Restricted stock activity | 0 | $ 1 | (1) | ||
Restricted stock activity (in shares) | 126,638 | ||||
Stock-based compensation expense | 14,673 | 14,673 | |||
Repurchases of common stock | (193,028) | $ (19) | (18,437) | (174,572) | |
Repurchase of common stock (in shares) | (1,879,529) | ||||
Cash dividends declared and paid | (83,717) | (83,717) | |||
Comprehensive income | 270,322 | $ 0 | (11,746) | ||
Net income | 282,068 | ||||
Balance at Dec. 29, 2018 | $ 869,433 | $ 456 | $ (40,839) | $ 909,816 | |
Balance (in shares) at Dec. 29, 2018 | 45,629,014 | 45,629,014 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | THE COMPANY Carter's, Inc. and its wholly owned subsidiaries (collectively, the "Company") design, source, and market branded childrenswear under the Carter’s , Child of Mine , Just One You , Precious Firsts , Precious Baby , Simple Joys , OshKosh B'gosh (" OshKosh "), Skip Hop, and other brands. The Company's products are sourced through contractual arrangements with manufacturers worldwide for: 1) wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and 2) distribution to the Company's own retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Carter's, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Fiscal Year 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 fiscal years. Fiscal 2018 , which ended on December 29, 2018 , fiscal 2017 , which ended on December 30, 2017 , and fiscal 2016 , which ended on December 31, 2016 , all contained 52 weeks. Use of Estimates in the Preparation of the Consolidated Financial Statements The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As disclosed in Note 2 , Significant Accounting Policies , and Note 3 , Revenue Recognition , at the beginning of fiscal 2018 the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers, and related amendments (“ASC 606”) using the full retrospective adoption method. The full retrospective method required the Company to apply the standard to the financial statements for the period of adoption as well as to each prior reporting period presented. Foreign Currency Translation and Transactions Translation adjustments The functional currency of substantially all of the Company's foreign operations is the local currency in each foreign country. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within the accompanying consolidated balance sheet. Transaction adjustments The Company also recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency. Foreign currency transaction gains and losses also include intercompany loans with foreign subsidiaries that are of a short-term nature. Foreign currency transaction gains and losses are recognized in earnings, as a separate component of other expense, net, within the consolidated statements of operations. 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 the currencies of Canada and Mexico, the Company may use foreign currency forward contracts to hedge purchases that are made in U.S. dollars, primarily for inventory purchases in its Canadian and Mexican operations. As part of this hedging strategy, the Company may use foreign currency forward exchange contracts with maturities of less than 12 months to provide continuing coverage throughout the hedging period. Historically, these contracts were not designated for hedge accounting treatment, and therefore changes in the fair value of these contracts have been recorded in Other (income) expense, net in the Company's consolidated statement of operations. Such foreign currency gains and losses typically 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. The fair values of any unsettled currency contracts are included in other current assets or other current liabilities on the Company's consolidated balance sheet. On the consolidated statement of cash flows, the Company includes all activity, including cash settlement of any contracts, as a component of cash flows from operations. Cash and Cash Equivalents The Company considers all highly liquid investments that have original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of deposit accounts and cash management funds invested in U. S. government instruments. These investments are stated at cost, which approximates fair value. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions; these amounts typically settle in less than five days. Concentration of cash deposits risk As of December 29, 2018 , the Company had approximately $170.1 million of cash and cash equivalents in major financial institutions, including approximately $36.7 million in financial institutions located outside of the United States. The Company maintains cash deposits with major financial institutions that exceed the insurance coverage limits provided by the Federal Deposit Insurance Corporation in the U.S. and by similar insurers for deposits located outside the U.S. To mitigate this risk, the Company utilizes a policy of allocating cash deposits among major financial institutions that have been evaluated by the Company and third-party rating agencies as having acceptable risk profiles. Accounts Receivable Concentration of credit risk In fiscal 2018 , 2017 , and 2016 , no one customer accounted for 10% or more of the Company's consolidated net sales. At December 29, 2018 , three wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these three wholesale customers in the aggregate equaled approximately 40% of total gross trade receivables outstanding. At December 30, 2017 , two wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these two wholesale customers in the aggregate equaled approximately 28% of total gross accounts receivable outstanding. Valuation Accounts for Wholesale Accounts Receivable Accounts receivable reserves The Company's accounts receivable reserves for wholesale customers include an allowance for doubtful accounts and an allowance for chargebacks. The allowance for doubtful accounts includes estimated losses resulting from the inability of its customers to make payments. If the financial condition of a customer were to deteriorate, resulting in an impairment of its ability to make payments, an additional allowance could be required. Past due balances over 90 days are reviewed individually for collectibility. The Company's credit and collections department reviews all other balances regularly. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. Provisions for the allowance for doubtful accounts are reflected in Selling, general and administrative expenses on the consolidated statement of operations and provisions for chargebacks are reflected as a reduction in Net sales on the consolidated statement of operations. Sales returns reserves Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company. Inventories Inventories, which consist primarily of finished goods, are stated approximately at the lower of cost (first-in, first-out basis for wholesale inventory and average cost for retail inventories) or net realizable value. Obsolete, damaged, and excess inventory is carried at net realizable value by establishing reserves after assessing historical recovery rates, current market conditions, and future marketing and sales plans. Rebates, discounts, and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item, and are therefore reflected in cost of sales when the related inventory item is sold. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization. When fixed assets are sold or otherwise disposed of, the accounts are relieved of the original cost of the assets and the related accumulated depreciation or amortization and any resulting profit or loss is credited or charged to income. For financial reporting purposes, depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets as follows: buildings and improvements from 15 to 26 years, retail store fixtures, equipment, and computers from 3 to 10 years. Leasehold improvements and fixed assets purchased under capital lease are amortized over the lesser of the asset life or related lease term. The Company capitalizes the cost of its fixtures designed and purchased for use at major wholesale accounts. The cost of these fixtures is amortized over 3 years. Internal-Use Software The Company purchases software licenses from external vendors and also develops software internally using Company employees and consultants. Software license costs, including certain costs to internally develop software, that meet the applicable criteria are capitalized while all other costs are expensed as incurred. Capitalized software is depreciated or amortized on the straight-line method over its estimated useful lives, from 3 to 10 years. If a software application does not include a purchased license for the software, such as a cloud-based software application, the arrangement is accounted for as a service contract. Goodwill and Other Intangible Assets Annual impairment reviews The carrying values of the goodwill and indefinite-lived tradename assets are subject to annual impairment reviews which are performed as of the last day of each fiscal year. Additionally, a review for potential impairment is performed whenever significant events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Significant assumptions in the impairment models include estimates of future cash flows, discount rates, and, in the case of tradenames, royalty rates. Goodwill The Company performs impairment tests of its goodwill at the reporting unit level. Qualitative and quantitative methods are used to assess for impairment, including the use of discounted cash flows ("income approach") and relevant data from guideline public companies ("market approach"). Under a qualitative assessment, the Company determines if it is "more likely than not" that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events. If the Company determines that it is "more likely than not" that the fair value of the reporting unit is less than its carrying value, then the Company performs the two-step goodwill impairment test as required. If it is determined that it is "not likely" that the fair value of the reporting unit is less than its carrying value, then no further testing is required and the Company documents the relevant qualitative factors that support the strength in the fair value. The first step of a quantitative assessment is to compare the fair value of the reporting unit to its carrying value, including goodwill. The Company uses a discounted cash flow model to determine the fair value, using assumptions consistent with those of hypothetical marketplace participants. If the fair value of a reporting unit is less than its carrying value, the second step of the impairment test must be performed. The second step compares the implied fair value of the reporting unit goodwill with the carrying value of that goodwill, in order to determine the amount of the impairment loss and charge to the consolidated statement of operations. Indefinite-lived tradenames For indefinite-lived tradenames, the Company may utilize a qualitative assessment, as described above, to determine whether the fair value of an indefinite-lived asset is less than its carrying value. If a quantitative assessment is necessary, the Company determines fair value using a discounted cash flow model that uses the relief-from-royalty method. If the carrying amount exceeds the fair value of the tradename, an impairment charge is recognized in the amount of the excess. Impairment of Other Long-Lived Assets The Company reviews other long-lived assets, including property, plant, and equipment, and licensing agreements, for impairment whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Management will determine whether there has been a permanent impairment on such assets held for use in the business by comparing anticipated undiscounted future cash flows from the use and eventual disposition of the asset or asset group to the carrying value of the asset. The amount of any resulting impairment will be calculated by comparing the carrying value to fair value, which may be estimated using the present value of the same cash flows. Long-lived assets that meet the definition of held for sale will be valued at the lower of carrying amount or fair value, less costs to sell. Deferred Debt Issuance Costs Debt issuance costs associated with the Company's secured revolving credit facility and senior term notes are deferred and amortized to interest expense over the term of the related debt using the effective interest method. Debt issuance costs associated with Company's senior notes are presented on the Company's consolidated balance sheet as a direct reduction in the carrying value of the associated debt liability. Fees paid to lenders by the Company to obtain its secured revolving credit facility are included within Other assets on the Company's consolidated balance sheet and classified as either current or non-current based on the expiration date of the credit facility. Fair Value Measurements The fair value framework requires the Company to categorize certain assets and liabilities into three levels, based upon the assumptions used to price those assets or liabilities. The three levels are defined as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. The Company measures its pension assets, deferred compensation plan investment assets, and any unsettled foreign currency forward contracts at fair value. T he Company's cash and cash equivalents, accounts receivable, and accounts payable are short-term in nature. As such, their carrying value approximates fair value. The carrying values of the Company’s outstanding borrowings are not required to be remeasured and adjusted to the then-current fair values at the end of each reporting period. Instead, the fair values of the Company's outstanding borrowings are disclosed at the end of each reporting period in Note 8 , Long-Term Debt , to the consolidated financial statements. Had the Company been required to remeasure and adjust the carrying values of its outstanding borrowings to fair value at the end of each reporting period, such fair value measurements would have been disclosed as a Level 2 liability in the fair value hierarchy. Revenue Recognition At the beginning of fiscal 2018, the Company adopted the provisions of ASC No. 606, Revenue from Contracts with Customers, and all related amendments (“ASC 606”) using the full retrospective adoption method. Refer to Note 3 , Revenue Recognition , for additional information. The Company uses the five-step model to recognize revenue: 1) Identify the contract with the customer; 2) Identity the performance obligation(s); 3) Determine the transaction price; 4) Allocate the transaction price to each performance obligation if multiple obligations exist; and 5) Recognize the revenue as the performance obligations are satisfied Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods). The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring control of the goods to the customer. Other than inbound and outbound freight and shipping arrangements, the Company does not use third parties to satisfy its performance obligations in revenue arrangements with customers. When Performance Obligations Are Satisfied Wholesale Revenues - The Company typically transfers control upon shipment. However, in certain arrangements where the Company retains the risk of loss during shipment, satisfaction of the performance obligation occurs when the goods reach the customer. Retail Revenues - For transactions in stores, the Company satisfies its performance obligation at point of sale when the customer takes possession of the goods and tenders payment. The redemption of loyalty points under the Company's rewards program and redemptions of gift cards may be part of a transaction. For purchases made through the Company’s eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. The Company satisfies its performance obligations with licensees over time as customers have the right to use the intellectual property over the contract period. Significant Payment Terms Retail customers tender a form of payment, such as cash or a credit/debit card, at point of sale. For wholesale customers and licensees, payment is due based on established terms. Returns and Refunds The Company establishes return provisions for retail customers. It is the Company's policy not to accept returns from wholesale customers. Significant Judgments Sale of Goods - The Company relies on shipping terms to determine when performance obligations are satisfied. When goods are shipped to wholesale customers “FOB Shipping Point,” control of the goods is transferred to the customer at the time of shipment if there are no remaining performance obligations. The Company recognizes the revenue once control passes to the customer. For retail transactions, no significant judgments are involved since revenue is recognized at the point of sale when tender is exchanged and the customer receives the goods. Royalty Revenues - The Company transfers the right-to-use benefit to the licensee for the contract term and therefore the Company satisfies its performance obligation over time. Revenue recognized for each reporting period is based on the greater of: 1) the royalties owed on actual net sales by the licensee and 2) a minimum royalty guarantee, if applicable. Transaction Price - The transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company may offer sales incentives to wholesale and retail customers, including discounts. For retail transactions, the Company has significant experience with return patterns and relies on this experience to estimate expected returns when determining the transaction price. Standalone Selling Prices - For arrangements that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone selling price basis. Costs Incurred to Obtain a Contract - Incremental costs to obtain contracts are not material to the Company. Policy Elections In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients: • Portfolio Approach - The Company uses the portfolio approach when multiple contracts or performance obligations are involved in the determination of revenue recognition. • Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities. • Shipping and Handling Charges - Charges that are incurred before and after the customer obtains control of goods are deemed to be fulfillment costs. • Time Value of Money - The Company's payment terms are less than one year from the transfer of goods. Therefore, the Company does not adjust promised amounts of consideration for the effects of the time value of money. • Disclosure of Remaining Performance Obligations - The Company does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations for contracts that are one year or less in term. The Company records its cooperative advertising arrangements with certain of its major wholesale customers at fair value. Fair value is determined based upon, among other factors, comparable market analysis for similar advertisements. The Company has included the fair value of these arrangements of approximately $3.0 million for fiscal 2018 , $3.1 million for fiscal 2017 , and $3.7 million for fiscal 2016 as a component of Selling, general, and administrative expenses on the accompanying consolidated statements of operations, rather than as a reduction of net sales. Amounts determined to be in excess of the fair value of these arrangements are recorded as a reduction of Net sales. Costs of Goods Sold and Selling, General and Administrative Expenses In addition to the cost of product, cost of goods sold includes expenses related to the merchandising, design, and procurement of product. Also included are outbound shipping costs incurred in the eCommerce channel related to delivery of product to the end consumer. Generally, all other expenses, excluding interest and income taxes, are included in selling, general and administrative ("SG&A") expenses, including distribution expenses. Distribution expenses that are included in SG&A primarily consist of payments to third-party shippers and handling costs to process product through our distribution facilities and delivery to our wholesale customers and to our retail stores. Distribution expenses included in SG&A totaled $188.9 million , $173.5 million , and $153.7 million for fiscal years 2018 , 2017 , and 2016 , respectively. Definitions of gross profit and gross margin very across the industry and as such, our metrics may not be comparable to other companies. Income From Royalties and License Fees The Company licenses the Carter's , Child of Mine, Just One You , Precious Firsts , Precious Baby , Carter's little baby basics, and Simple Joys trademarks to other companies for use on baby and young children's products, including bedding, outerwear, sleepwear, shoes, underwear, socks, room décor, toys, stationery, hair accessories, furniture, and related products. These royalties are recorded as earned, based upon the sales of licensed products by licensees and reported as royalty income in the statements of operations. Advertising Expenses Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs and eCommerce site banners, are expensed when the advertising event takes place. Stock-Based Compensation Arrangements The Company recognizes the cost resulting from all stock-based payment transactions in the financial statements at grant date fair value. Stock-based compensation expense is recognized over the requisite service period, net of estimated forfeitures. During the requisite service period, the Company also recognizes a deferred income tax benefit for the expense recognized for U.S. GAAP. At time of subsequent vesting, exercise, forfeiture, or expiration of an award, the difference between the Company's actual income tax deduction, if any, and the previously accrued income tax benefit is recognized in income tax expense/benefit during the current period. Stock Options The Company determines the fair value of stock options using the Black-Scholes option pricing model, which requires the use of the following subjective assumptions: • Volatility - This is a measure of the amount by which a stock price has fluctuated or is expected to fluctuate. The Company uses actual monthly historical changes in the market value of its stock covering the expected life of options being valued. An increase in the expected volatility will increase the fair value of the stock option and related compensation expense. • Risk-free interest rate - This is the U.S. Treasury rate as of the grant date having a term equal to the expected term of the stock option. An increase in the risk-free interest rate will increase the fair value of the stock option and related compensation expense. • Expected term - This is the period of time over which the stock options granted are expected to remain outstanding and is based on historical experience and estimated future exercise behavior. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. An increase in the expected term will increase the fair value of the stock option and the related compensation expense. • Dividend yield - The Company estimates a dividend yield based on the current dividend amount as a percentage of the current stock price. An increase in the dividend yield will decrease the fair value of the stock option and the related compensation expenses. • Forfeitures - The Company estimates forfeitures of stock-based awards based on historical experience and expected future activity. Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation expense and the related amount recognized in the consolidated statements of operations. Time-Based Restricted Stock Awards The fair value of time-based restricted stock awards is determined based on the quoted closing price of the Company's common stock on the date of grant and is recognized as compensation expense over the vesting term of the awards, net of estimated forfeitures. Performance-Based Restricted Stock Awards The Company accounts for its performance-based restricted stock awards based on the quoted closing price of the Company's common stock on the date of grant and records stock-based compensation expense over the vesting term of the awards based on the probability that the performance criteria will be achieved, net of estimated forfeitures. The Company reassesses the probability of vesting at each reporting period and adjusts stock-based compensation expense based on its probability assessment. Stock Awards The fair value of stock granted to non-management board members is determined based on the quoted closing price of the Company's common stock on the date of grant. The Company records the stock-based compensation expense immediately as there are no vesting terms. Income Taxes The accompanying consolidated financial statements reflect current and deferred tax provisions, in accordance with ASC 740, Income Taxes . The deferred tax provision is determined under the liability method. Deferred tax assets and liabilities are recognized based on differences between the book and tax bases of assets and liabilities using presently enacted tax rates. Valuation allowances are established when it is "more likely than not" that a deferred tax asset will not be recovered. The provision for income taxes is the sum of the amount of income taxes paid or payable for the year as determined by applying the provisions of enacted tax laws to the taxable income for that year, the net change during the year in deferred tax assets and liabilities, and the net change during the year in any valuation allowances. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. A company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. If it is more likely than not that a tax position would not be sustained, then no tax benefit would be recognized. Where applicable, associated interest and penalties are also recorded. Interest is recorded as a component of interest expense and penalties, if any, are recorded within the provision for incomes taxes in the consolidated statements of operations and are classified on the consolidated balance sheets with the related liability for uncertain tax contingency liabilities. For current and deferred tax provisions, ASC 740 requires an entity to account for the effects of new income tax legislation in the same reporting period that the tax legislation is enacted. Recent tax law changes known as the U.S. Tax Cuts and Jobs Act of 2017 (the "2017 Act") were enacted in the United States on December 22, 2017. The 2017 Act, among other things, reduces the United States federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax ("toll tax") on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. For the 2017 Act, SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , permitted the Company to calculate and recognize provisional estimates during the period of enactment (fourth quarter of fiscal 2017) for the accounting of the 2017 Act. Subsequent adjustments to provisional estimates were reflected in the Company's income tax provisions/benefits during fiscal 2018. See Note 12 , Income Taxes , to the consolidated financial statements. Supplemental Cash Flow Information Interest paid in cash approximated $33.6 million , $28.3 million , and $25.4 million for fiscal years 2018 , 2017 , and 2016 , respectively. Income taxes paid in cash approximated $55.9 million , $132.9 million and $120.6 million for fiscal years 2018 , 2017 , and 2016 , respectively. Additions to property, plant and equipment of approximately $1.9 million , $1.9 million , and $2.6 million were excluded from capital expenditures on the Company's consolidated statements of cash flows for fiscal years 2018 , 2017 , and 2016 , respectively, since these amounts were accrued and unpaid at the end of each respective fiscal year. Earnings Per Share The Company calculates basic and diluted net income per common share under the two-class method for unvested share-based payment awards that contain participating rights to dividends or dividend equivalents (whether paid or unpaid). Basic net income per share is calculated by dividing net income for the period by the weighted-average common shares outstanding for the period. Diluted net income per share includes the effect of dilutive instruments and uses the average share price for the period in determining the number of shares that are to be added to the weighted-average number of shares outstanding. Open Market Repurchases of Common Stock Shares of the Company's common stock that are repurchased by the Company through open market transactions are retired. Through the end of fiscal 2018 , all such open market repurchases have been at prices that exceeded the par value of the repurchased common stock, and the amounts of the purchase prices that exceeded par value were charged to additional paid-in capital or to retained earnings if the balance in additional paid-in capital was not sufficient. Employee Benefit Plans The Company has several defined benefit plans. Various actuarial methods and assumptions are used in determining net pension and post-retirement costs and obligations. Key assumptions include the discount rate used to determine the present value of future benefits and the expected long-term rate of return on plan assets. The over-funded or under-funded status of the defined benefit plans is recorded as an asset or liability on the consolidated balance sheet. The gains or losses that arise during the period are recognized as a component of comprehensive income, net of tax. These costs are then subsequently recognized as components of net periodic benefit cost in the consoli |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law. At the beginning of fiscal 2018, the Company adopted the provisions of ASC 606 using the full retrospective adoption method. Under the full retrospective method, the Company adjusted all periods in fiscal 2017 and fiscal 2016 to reflect the provisions of ASC 606, and retained earnings at January 2, 2016 (beginning of fiscal 2016) were adjusted for the cumulative effect for prior periods. Refer to the section "Revenue from Contracts with Customers (ASC No. 606)" in Note 2 , Significant Accounting Policies , for changes to the Company's accounting policies due to the adoption of ASC 606. ASC 606 affected the Company's retail channels as follows: • Accelerated the recognition of breakage revenue from unredeemed gift cards, which affected net sales, gross profit, income before income taxes, and net income on the Company's statements of operations. Basic and diluted net income per share were affected by $0.01 or less for each reporting period. Related gift card liabilities and income tax liabilities were also affected. • A portion of the estimated value of goods expected to be returned by customers was reclassified between net sales and cost of goods sold, with no net effect on gross profit, income before income taxes, or net income on the Company's statement of operations. Related reclassifications were also made between other current assets and other current liabilities on the Company's balance sheets. The effects of retrospective adoption on the Company's consolidated Statements of Operations were as follows: For the fiscal year ended (dollars in thousands, except per share data) 2017 2016 Net sales $ 92 $ (637 ) Cost of goods sold $ 52 $ (7 ) Income before income taxes $ 40 $ (630 ) Net income $ 84 $ (397 ) Basic net income per common share $ — $ (0.01 ) Diluted net income per common share $ — $ — The cumulative effect to the Company’s retained earnings at January 2, 2016 was an after-tax increase of approximately $0.6 million. The effects of adoption of ASC 606 on the Company’s consolidated balance sheet at December 30, 2017 were as follows: (dollars in thousands) As Previously Reported ASC 606 Adjustments As Amended for ASC 606 ASSETS Prepaid expenses and other current assets $ 49,892 $ 3,043 (1) $ 52,935 Total current assets $ 1,017,669 $ 3,043 $ 1,020,712 Total assets $ 2,067,999 $ 3,043 $ 2,071,042 LIABILITIES AND STOCKHOLDERS' EQUITY Other current liabilities $ 146,510 $ 2,624 (2) $ 149,134 Total current liabilities $ 328,624 $ 2,624 $ 331,248 Deferred income taxes $ 84,848 $ 96 $ 84,944 Total liabilities $ 1,210,906 $ 2,720 $ 1,213,626 Retained earnings $ 885,714 $ 323 (3) $ 886,037 Total stockholder's equity $ 857,093 $ 323 $ 857,416 Total liabilities and stockholders' equity $ 2,067,999 $ 3,043 $ 2,071,042 (1) Reclassification of estimated inventory expected to be returned by customers through future sales refund transactions. This amount was reclassified from the returns reserve (current liability) to a current asset. Prior to the Company's adoption of ASC 606, the Company's returns reserve (current liability) was reported net of the estimated inventory expected to be returned by customers through sales refund transactions. (2) Amount includes a reclassification of approximately $3.0 million for estimated inventory expected to be returned by customers, partially offset by a reclassification of approximately $0.4 million for gift card liabilities. (3) Cumulative impact of approximately $0.6 million for after-tax adjustments to retained earnings at the beginning of fiscal 2016, offset by ASC 606 effects on fiscal 2017 and fiscal 2016 results of operations. Disaggregation of Revenue The Company sells its products directly to consumers ("direct-to-consumer") and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from its licensees. Disaggregated revenues from these sources for fiscal years 2018 , 2017 , and 2016 were as follows: Fiscal year ended December 29, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,180,687 $ 163,637 $ 1,344,324 Direct-to-consumer 1,851,193 — 266,752 $ 2,117,945 $ 1,851,193 $ 1,180,687 $ 430,389 $ 3,462,269 Royalty income $ 12,877 $ 22,511 $ 3,542 $ 38,930 Fiscal year ended December 30, 2017 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,209,663 $ 160,850 $ 1,370,513 Direct-to-consumer 1,775,378 — 254,613 $ 2,029,991 $ 1,775,378 $ 1,209,663 $ 415,463 $ 3,400,504 Royalty income $ 15,541 $ 23,767 $ 3,873 $ 43,181 Fiscal year ended December 31, 2016 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,178,034 $ 133,681 $ 1,311,715 Direct-to-consumer 1,655,784 — 231,044 $ 1,886,828 $ 1,655,784 $ 1,178,034 $ 364,725 $ 3,198,543 Royalty income $ 12,318 $ 25,000 $ 5,497 $ 42,815 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) December 29, 2018 December 30, 2017 Trade receivables from wholesale customers, net $ 244,258 $ 229,968 Royalties receivable 9,279 9,818 Tenant allowances and other receivables 16,588 14,511 Total gross receivables $ 270,125 $ 254,297 Less: Wholesale accounts receivable reserves (11,866 ) (13,736 ) Accounts receivable, net $ 258,259 $ 240,561 Contract Assets and Liabilities The Company's contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) December 29, 2018 December 30, 2017 Contract liabilities-current: Unredeemed gift cards $ 14,471 $ 11,945 Unredeemed customer loyalty rewards 7,764 7,355 Total contract liabilities-current (*) $ 22,235 $ 19,300 * Included with Other current liabilities on the Company's consolidated balance sheet. Composition of Contract Liabilities Unredeemed gift cards - the Company is obligated to transfer goods in the future to customers who have purchased gift cards. Periodic changes in the gift card contract liability result from the redemption of gift cards by customers and the recognition of estimated breakage revenue for those gift card balances that are not expected to be redeemed. The majority of our gift cards do not have an expiration date; however, all outstanding gift card balances are classified by the Company as current liabilities since gift cards are redeemable on demand by the valid holder. The majority of the Company's gift cards are redeemed within one year of issuance. Unredeemed loyalty rewards - points and reward certificates earned by customers under the Company’s loyalty programs represent obligations of the Company to transfer goods to the customer upon redemption. Periodic changes in the loyalty program contract liability result from reward certificate redemptions and expirations. The earning and redemption cycles for our loyalty program are under one year in duration. |
BUSINESS ACQUISITIONS (Notes)
BUSINESS ACQUISITIONS (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | ACQUISITIONS Based on their purchase prices and pre-acquisition operating results and assets, neither of the businesses acquired by the Company in fiscal 2017 met the materiality requirements for preparation and presentation of pro forma financial information, either individually or in the aggregate. Skip Hop Acquisition Carter's, Inc.'s wholly-owned subsidiary, The William Carter Company ("TWCC"), acquired 100% of the voting equity interests of Skip Hop Holdings, Inc. and subsidiaries (collectively "Skip Hop") after the close of business on February 22, 2017. The Skip Hop purchase was deemed to be the acquisition of a business under the provisions of ASC No. 805, Business Combinations ("ASC 805"). The Company's consolidated financial statements reflect the consolidation of the financial position, results of operations and cash flows of Skip Hop beginning February 23, 2017. The measurement period (as defined in ASC 805) for Skip Hop was complete at the end of fiscal 2017 and all measurement period adjustments were reflected in the Company's consolidated balance sheet as of December 30, 2017. As a result of the measurement period adjustments recorded between the acquisition date and the end of fiscal 2017, the net assets acquired consisted of the following: $46.0 million of goodwill including an assembled workforce; $104.1 million of intangible assets comprised of a tradename and acquired customer relationships; $53.9 million of tangible assets acquired; and $20.8 million of liabilities in addition to $36.3 million of deferred income tax liabilities. The adjusted purchase price was approximately $142.5 million , net of $0.8 million of cash acquired. Acquisition of Mexican Licensee On August 1, 2017, the Company, through certain of its wholly-owned subsidiaries, acquired the outstanding equity of the Company's licensee in Mexico and a related entity (collectively "Carter's Mexico"). Both entities are incorporated under Mexican law. Prior to the acquisition, Carter's Mexico was primarily a licensee and wholesale customer of the Company. The Carter's Mexico purchase was deemed to be the acquisition of a business under the provisions of ASC 805. The Company's consolidated financial statements reflect the consolidation of the financial position, results of operations and cash flows of Carter's Mexico beginning August 1, 2017. Carter's Mexico became part of the Company's International reportable segment. As of December 30, 2017, preliminary values assigned to assets acquired included inventories of approximately $8.3 million , a customer relationships intangible asset of approximately $3.5 million , and goodwill of approximately $6.2 million . Measurement period adjustments made in the first quarter of fiscal 2018 were not material. The measurement period (as defined in ASC 805) for the acquisition of Carter's Mexico was completed during the second quarter of fiscal 2018 and all measurement period adjustments were reflected in the Company's consolidated balance sheet as of December 29, 2018 . As a result of the measurement period adjustments recorded between the acquisition date and the end of the second quarter of fiscal 2018, the values assigned to assets acquired included inventories of approximately $8.0 million , a customer relationships intangible asset of approximately $3.5 million , and goodwill of approximately $6.3 million . |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net consists of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Fixtures, equipment, computer hardware and software $ 425,686 $ 430,156 Land, building, and leasehold improvements 348,131 336,981 Marketing fixtures 7,001 7,602 Construction in progress 18,517 7,358 799,335 782,097 Accumulated depreciation and amortization (448,898 ) (404,173 ) Total $ 350,437 $ 377,924 Depreciation and amortization expense related to property, plant, and equipment was approximately $85.9 million , $81.8 million , and $71.5 million for fiscal years 2018 , 2017 , and 2016 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the Company’s goodwill and other intangible assets at the end of the fiscal year: December 29, 2018 December 30, 2017 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s goodwill (1) Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Canada goodwill (2) Indefinite 38,869 — 38,869 42,223 — 42,223 Skip Hop goodwill (3) Indefinite 45,960 — 45,960 45,997 — 45,997 Carter's Mexico goodwill (4) Indefinite 5,702 — 5,702 5,634 — 5,634 Total goodwill $ 227,101 $ — $ 227,101 $ 230,424 $ — $ 230,424 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 56,800 — 56,800 Finite-life tradenames 5 - 20 years 3,911 752 3,159 3,550 532 3,018 Total tradenames, net $ 366,444 $ 752 $ 365,692 $ 366,083 $ 532 $ 365,551 Skip Hop customer relationships 15 years $ 47,300 $ 5,480 $ 41,820 $ 47,300 $ 2,304 $ 44,996 Carter's Mexico customer relationships 10 years 3,146 455 2,691 3,135 135 3,000 Total customer relationships, net $ 50,446 $ 5,935 $ 44,511 $ 50,435 $ 2,439 $ 47,996 (1) $45.9 million is assigned to the U.S. Wholesale segment, $82.0 million is assigned to the U.S. Retail segment, and $8.6 million is assigned to the International segment. (2) Goodwill for Canada (Bonnie Togs) is assigned to the International segment. (3) $28.6 million is assigned to the U.S. Wholesale segment, $15.5 million is assigned to the International segment, and $1.9 million is assigned to the U.S. Retail segment. (4) Goodwill for Carter's Mexico is assigned to the International segment. Changes in the carrying values between comparative periods for goodwill related to the Company's 2011 acquisition of its Canadian business (Bonnie Togs) were due to fluctuations in the foreign currency exchange rates between the Canadian and U.S. dollar that were used in the remeasurement process for preparing the Company's consolidated financial statements. The changes in the carrying values of goodwill, customer relationships, and tradename intangible assets for Skip Hop and Carter's Mexico, including the related accumulated amortization, that were not attributable to amortization expense was also impacted by foreign currency exchange rate fluctuations. Amortization expense for intangible assets subject to amortization was approximately $3.7 million , $2.6 million , and $1.9 million for fiscal years 2018 , 2017 , and 2016 , respectively. The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense 2019 $ 3,732 2020 $ 3,732 2021 $ 3,732 2022 $ 3,732 2023 $ 3,690 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive (loss) income is summarized as follows: (dollars in thousands) Pension liability adjustments Post-retirement liability adjustments Cumulative translation adjustments Accumulated other comprehensive (loss) income Balance at January 2, 2016 $ (8,185 ) $ 1,404 $ (29,586 ) $ (36,367 ) Fiscal year 2016 change (666 ) 331 1,962 1,627 Balance at December 31, 2016 (8,851 ) 1,735 (27,624 ) (34,740 ) Fiscal year 2017 change (430 ) (262 ) 6,339 5,647 Balance at December 30, 2017 (9,281 ) 1,473 (21,285 ) (29,093 ) Fiscal year 2018 change (281 ) 214 (11,679 ) (11,746 ) Balance at December 29, 2018 $ (9,562 ) $ 1,687 $ (32,964 ) $ (40,839 ) As of December 29, 2018 and December 30, 2017 , the cumulative tax effect on the pension liability adjustments were $5.4 million and $5.3 million , respectively. As of December 29, 2018 and December 30, 2017 , the cumulative tax effect on the post-retirement liability adjustments were approximately $1.0 million for both years. The deferred income taxes associated with these obligations are subject to adjustments upon the Company's adoption of ASC 2018-02. See Note 2 , Significant Accounting Policies. For the fiscal years ended December 29, 2018 and December 30, 2017 , amounts reclassified from accumulated other comprehensive loss to the consolidated statements of operations consisted of amortization of actuarial gains and losses related to the Company's defined benefit retirement plans. Such amortization amounts are included in the net periodic cost or benefit recognized for these plans during the respective fiscal year. For additional information, see Note 11 , Employee Benefit Plans , to the consolidated financial statements. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Senior notes at amounts repayable $ 400,000 $ 400,000 Less: unamortized issuance-related costs for senior notes (2,736 ) (3,694 ) Senior notes, net $ 397,264 $ 396,306 Secured revolving credit facility 196,000 221,000 Total long-term debt, net $ 593,264 $ 617,306 Senior Notes During fiscal 2013, the Company's 100% owned subsidiary, TWCC issued $400 million principal amount of senior notes (the "senior notes") at par, bearing interest at a rate of 5.25% per annum, and maturing on August 15, 2021, all of which were outstanding as of December 29, 2018 . At issuance, TWCC received net proceeds from the offering of the senior notes of approximately $394.2 million , after deducting bank fees and other related fees. Approximately $7.0 million , including both bank fees and other third party expenses, was capitalized in connection with the issuance and is being amortized over the term of the senior notes. The senior notes are unsecured and are fully and unconditionally guaranteed by Carter's, Inc. and certain domestic subsidiaries of TWCC. The guarantor subsidiaries are 100% owned directly or indirectly by Carter's, Inc. and all guarantees are joint, several and unconditional. On and after August 15, 2017, TWCC may redeem all or part of the senior notes at the redemption prices (expressed as percentages of principal amount of the senior notes to be redeemed) set forth below, plus accrued and unpaid interest. The redemption price is applicable when the redemption occurs during the twelve-month period beginning on August 15 of each of the years indicated is as follows: Year Percentage 2018 101.31 % 2019 and thereafter 100.00 % Upon the occurrence of specific kinds of changes of control, unless a redemption notice with respect to all the outstanding senior notes has previously or concurrently been mailed or delivered, TWCC will be required to make an offer to purchase the senior notes at 101% of their principal amount. In addition, if TWCC or any of its restricted subsidiaries engages in certain asset sales, under certain circumstances TWCC will be required to use the net proceeds to make an offer to purchase the senior notes at 100% of their principal amount. The indenture governing the senior notes includes a number of covenants, that, among other things and subject to certain exceptions, restrict TWCC's ability and the ability of certain of its subsidiaries to: (a) incur, assume or guarantee additional indebtedness; (b) issue disqualified stock and preferred stock; (c) pay dividends or make distributions or other restricted payments; (d) prepay, redeem or repurchase certain debt; (e) make loans and investments (including joint ventures); (f) incur liens; (g) create restrictions on the payment of dividends or other amounts from restricted subsidiaries that are not guarantors of the notes; (h) sell or otherwise dispose of assets, including capital stock of subsidiaries; (i) consolidate or merge with or into, or sell substantially all of TWCC's assets to, another person; (j) designate subsidiaries as unrestricted subsidiaries; and (k) enter into transactions with affiliates. Specific provisions restrict the ability of the Company's operating subsidiary, TWCC, from paying cash dividends to Carter’s, Inc. in excess of $100.0 million plus an additional amount that builds based on 50% of our consolidated net income on a cumulative basis beginning with the third fiscal quarter of 2013 and subject to certain conditions, unless TWCC and its consolidated subsidiaries meet a leverage ratio requirement under the indenture, which could restrict Carter's, Inc. from paying cash dividends on our common stock. Additionally, the terms of the notes contain customary affirmative covenants and provide for events of default which, if certain of them occur, would permit the trustee or the holders of at least 25% in principal amount of the then total outstanding senior notes to declare all amounts owning under the notes to be due and payable. Carter's, Inc. is not subject to these covenants. Secured Revolving Credit Facility On August 25, 2017, TWCC and the syndicate of lenders entered into a fourth amended and restated secured revolving credit agreement. This amendment to the secured revolving credit facility provides: (a) an extension of the term of the facility to August 25, 2022 and (b) an increase in the aggregate credit line to $750 million which includes a $650 million U.S. dollar facility and a $100 million multicurrency facility denominated in U.S. dollars, Canadian dollars, Euros, Pounds Sterling, or other currencies agreed to by the applicable lenders. The $650 million U.S. dollar facility is inclusive of a $100 million sub-limit for letters of credit and a swing line sub-limit of $70 million . The $100 million multicurrency facility is inclusive of a $40 million sub-limit for letters of credit and a swing line sub-limit of $15 million . In addition, the secured revolving credit facility provides for incremental borrowing facilities up to $425 million , which are comprised of an incremental $350 million U.S. dollar revolving credit facility and an incremental $75 million multicurrency revolving credit facility. The incremental U.S. dollar revolving credit facility can increase to an unlimited borrowing amount so long as the consolidated first lien leverage ratio (as defined in the secured revolving credit facility) does not exceed 2.25 : 1.00 . In connection with the amendment, the Company paid approximately $2.1 million in debt issuance costs. These debt issuance costs, together with existing unamortized debt issuance costs, are being amortized over the five -year remaining term of the secured revolving credit facility. On September 21, 2018, TWCC and a syndicate of lenders entered into Amendment No. 1 to its fourth amended and restated credit agreement that, among other things, extended the term of the facility from August 25, 2022 to September 21, 2023. In connection with the amendment, the Company paid approximately $1.0 million in debt issuance costs. These newly-incurred debt issuance costs, together with existing unamortized debt issuance costs, are being amortized over the five -year remaining term of the secured revolving credit facility. Under the secured revolving credit facility, TWCC and its domestic subsidiaries have granted to the collateral agent, for the benefit of the lenders, valid and perfected first priority security interests in substantially all of their present and future assets, excluding certain customary exceptions, and guarantee the obligations of the borrowers. In addition, The Genuine Canadian Corp., as Canadian borrower, and Carter’s Holdings B.V., as Dutch borrower, have each guaranteed the obligations of the other. As of December 29, 2018 and December 30, 2017 , the Company had $196.0 million and $221.0 million in outstanding borrowings under its secured revolving credit facility, respectively, exclusive of $5.0 million and $4.5 million of outstanding letters of credit, respectively. As of December 29, 2018 and December 30, 2017 , there were approximately $549.0 million and $524.5 million available for future borrowing, respectively. As of December 29, 2018 , the interest rate margins applicable to the amended revolving credit facility were 1.625% for LIBOR (London Interbank Offered Rate) rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 1.125% to 1.875% ) and 0.625% for base rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 0.125% to 0.875% ). As of December 29, 2018 and December 30, 2017 , U.S. dollar borrowings outstanding under the secured revolving credit facility accrued interest at a LIBOR rate plus the applicable base rate, which resulted in a weighted-average borrowing rate of 4.11% and 2.93% , respectively. There were no Canadian borrowings outstanding on December 29, 2018 or December 30, 2017 . Covenants Subject to certain customary exceptions, the amended revolving credit facility contains covenants that restrict the Company's ability to, among other things: (i) create or incur liens, debt, guarantees or other investments, (ii) engage in mergers and consolidations, (iii) pay dividends or other distributions to, and redemptions and repurchases from, equity holders, (iv) prepay, redeem or repurchase subordinated or junior debt, (v) amend organizational documents, and (vi) engage in certain transactions with affiliates. The amended revolving credit facility also contains financial covenants. Specifically, TWCC and its subsidiaries will not (i) permit at the end of any four consecutive fiscal quarters the Lease Adjusted Leverage Ratio (defined as, with certain adjustments, the ratio of the Company's consolidated indebtedness plus six times rent expense, as defined, to consolidated net income before interest, taxes, depreciation, amortization, and rent expense ("EBITDAR")) to exceed 4.00 :1.00 (provided, however, that if any "Material Acquisition" occurs and the Lease Adjusted Leverage Ratio on a pro forma basis giving effect to the consummation of the Material Acquisition is less than 4.00 :1.00, then the maximum Lease Adjusted Leverage Ratio may be increased to 4.50 :1.00 for the fiscal quarter in which such Material Acquisition is consummated and the three fiscal quarters immediately following the fiscal quarter in which such Material Acquisition occurs) or (ii) permit at the end of any four consecutive fiscal quarters the Consolidated Fixed Charge Coverage Ratio (defined as, with certain adjustments, the ratio of consolidated EBITDAR to consolidated fixed charges (defined as interest plus rent expense)), for any such period to be less than 2.25 :1.00 (provided, however, that if any Material Acquisition occurs and the Consolidated Fixed Charge Coverage Ratio on a pro forma basis giving effect to the consummation of the Material Acquisition is at least 2.25 :1.00, then the minimum Consolidated Fixed Charge Coverage Ratio may be decreased to 2.00 :1.00 for the fiscal quarter in which such Material Acquisition is consummated and the three fiscal quarters immediately following the fiscal quarter in which such Material Acquisition occurs). The amended revolving credit facility also provides that certain covenants fall away and that the liens over the collateral securing each of the Company and certain subsidiaries' collective obligations are released following, among other things, the achievement of, and during the maintenance of, investment grade ratings by Moody's Investor Services, Inc. and Standard & Poor's Ratings Services. As of December 29, 2018 , the Company was in compliance with its financial debt covenants under the secured revolving credit facility. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK Share Repurchases In fiscal years prior to 2016 , the Company's Board of Directors authorized the repurchase of shares of the Company's common stock in amounts up to $462.5 million . On both February 24, 2016 and February 22, 2018, the Company's Board of Directors authorized an additional $500 million of share repurchases, thereby authorizing repurchase amounts up to $1.46 billion . The total remaining capacity under the repurchase authorizations as of December 29, 2018 was $392.6 million . Open-market repurchases of our common stock during fiscal years 2018 , 2017 and 2016 were as follows: Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Number of shares repurchased 1,879,529 2,103,401 3,049,381 Aggregate cost of shares repurchased (dollars in thousands) $ 193,028 $ 188,762 $ 300,445 Average price per share $ 102.70 $ 89.74 $ 98.53 In addition to the open-market repurchases completed in fiscal years 2018 , 2017 and 2016 , the Company completed additional open-market repurchases totaling approximately $387.6 million in fiscal year priors to 2016 . Future share 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 based on its evaluation of market conditions, share price, other investment priorities, and other factors. The share repurchase authorizations have no expiration dates. Dividends In fiscal 2018 , the Company's Board of Directors declared and paid quarterly cash dividends of $0.45 per share during all four quarters. In fiscal 2017 , the Company's Board of Directors paid quarterly cash dividends of $0.37 per share during all four quarters. On February 14, 2019 , the Company's Board of Directors authorized a quarterly cash dividend payment of $0.50 per common share, payable on March 22, 2019 to shareholders of record at the close of business on March 12, 2019 . Future declarations of dividends and the establishment of future record and payment dates are at the discretion of the Company's Board of Directors 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 Note 8 , Long-Term Debt, to the consolidated financial statements. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Under the Company’s Amended and Restated Equity Incentive Plan (the "Plan"), the Compensation Committee of the Board of Directors may award incentive stock options, stock appreciation rights, restricted stock, unrestricted stock, stock deliverable on a deferred basis (including restricted stock units), and performance-based stock awards. At the Company's May 17, 2018 shareholders' meeting, the shareholders approved an amendment to the Plan to increase the maximum number of shares of stock available under the Plan by 3,000,000 shares from a cumulative total of 15,778,392 shares to 18,778,392 shares. As of December 29, 2018 , there were 3,702,701 remaining shares available for grant under the Plan. The Plan makes provision for the treatment of awards upon termination of service or in the case of a merger or similar corporate transaction. Participation in the Plan is limited to members of the Company's board of directors, executive officers and other key employees. The limit on shares available under the Plan, the individual limits, and other award terms are subject to adjustment to reflect stock splits or stock dividends, combinations, and certain other events. All stock options issued under the Plan expire no later than ten years from the date of grant. The Company believes that the current level of authorized shares is sufficient to satisfy future grants for the foreseeable future. The Company recorded stock-based compensation cost as follows: For the fiscal years ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Stock options $ 4,788 $ 4,244 $ 4,237 Restricted stock: Time-based awards 7,938 7,532 7,451 Performance-based awards 744 4,602 3,974 Stock awards 1,203 1,171 1,185 Total $ 14,673 $ 17,549 $ 16,847 The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During fiscal 2018 , the Company revised the estimated achievement of performance targets related to certain performance-based grants resulting in a $3.9 million reduction to stock compensation expense. Stock Options Stock options vest in equal annual installments over a four -year period. The Company issues new shares to satisfy stock option exercises. Changes in the Company's stock options for the fiscal year ended December 29, 2018 were as follows: Number of shares Weighted- average exercise price Weighted-average remaining contractual terms (years) Aggregate intrinsic value (in thousands) Outstanding, December 30, 2017 1,494,223 $61.76 Granted 255,532 $118.43 Exercised (261,113 ) $40.58 Forfeited (40,533 ) $98.01 Expired (968 ) $95.10 Outstanding, December 29, 2018 1,447,141 $74.55 5.96 $ 21,714 Vested and Expected to Vest, December 29, 2018 1,377,440 $73.10 5.82 $ 21,714 Exercisable, December 29, 2018 851,264 $57.33 4.31 $ 21,714 The intrinsic value of stock options exercised during the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 was approximately $16.6 million , $14.9 million , and $9.0 million , respectively. At December 29, 2018 , there was approximately $8.8 million of unrecognized compensation cost (net of estimated forfeitures) related to stock options which is expected to be recognized over a weighted-average period of approximately 2.6 years. The table below presents the weighted-average assumptions used to calculate the fair value of options granted in each of the respective fiscal years: For the fiscal years ended December 29, 2018 December 30, 2017 December 31, 2016 Expected volatility 22.93 % 26.20 % 26.95 % Risk-free interest rate 2.75 % 2.06 % 1.33 % Expected term (years) 6.0 6.0 6.0 Dividend yield 1.47 % 1.77 % 1.45 % Weighted average fair value of options granted $ 27.36 $ 19.57 $ 21.41 Restricted Stock Awards Restricted stock awards issued under the Plan vest based upon: 1) continued service (time-based) or 2) a combination of continued service and performance targets (performance-based). The following table summarizes activity related to all restricted stock awards during the fiscal year ended December 29, 2018 : Restricted stock awards Weighted-average grant-date fair value Outstanding, December 30, 2017 397,848 $ 85.44 Granted 143,085 $ 118.03 Vested (151,321 ) $ 84.56 Forfeited (15,604 ) $ 97.83 Outstanding, December 29, 2018 374,008 $ 97.57 During fiscal 2017 , a total of 168,471 shares of restricted stock vested with a weighted-average fair value of $74.00 per share. During fiscal 2016 , a total of 218,335 shares of restricted stock vested with a weighted-average fair value of $62.98 per share. At December 29, 2018 , there was approximately $16.0 million of unrecognized compensation cost (net of estimated forfeitures) related to all restricted stock awards which is expected to be recognized over a weighted-average period of approximately 2.3 years. Time-based Restricted Stock Awards Time-based restricted stock awards vest in equal annual installments or cliff vest after a three - or four -year period. During fiscal years 2018 , 2017 , and 2016 , a total of 100,625 shares, 114,703 shares, and 124,135 shares, respectively, of time-based restricted stock vested with a weighted-average fair value of $85.64 per share, $76.58 per share, and $65.80 per share, respectively. At December 29, 2018 , there was approximately $13.4 million of unrecognized compensation cost (net of estimated forfeitures) related to time-based restricted stock which is expected to be recognized over a weighted-average period of approximately 2.4 years. Performance-based Restricted Stock Awards Fiscal year Number of shares granted Weighted-average fair value per share 2016 53,070 $ 90.66 2017 60,952 $ 83.84 2018 45,625 $ 120.25 During the fiscal year ended December 29, 2018 , a total of 50,696 performance shares vested with a weighted-average fair value of $82.40 per share. As of December 29, 2018 , a total of 153,922 performance shares were unvested with a weighted-average fair value of $96.47 per share. Vesting of these 153,922 performance shares is based on the performance targets for the shares granted in fiscal 2018 , 2017 , and 2016 . As of December 29, 2018 , there was approximately $2.6 million of unrecognized compensation cost (net of estimated forfeitures) related to the unvested performance-based restricted stock awards which is expected to be recognized over a weighted-average period of approximately 1.7 years. Stock Awards Included in restricted stock awards are grants to non-management members of the Company's Board of Directors. At issuance, these awards were fully vested and issued as shares of the Company's common stock. During fiscal years 2018 , 2017 , and 2016 , such awards were as follows: Fiscal year Number of shares issued Fair value per share Aggregate value (in thousands) 2016 12,758 $101.10 $1,290 2017 13,860 $84.46 $1,171 2018 10,971 $109.67 $1,203 The Company received no proceeds from the issuance of these shares. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company maintains defined contribution plans, a deferred compensation 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 Funded Status The retirement benefits under the OshKosh B'Gosh pension plan were frozen as of December 31, 2005. A reconciliation of changes in the projected pension benefit obligation and plan assets is as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 66,747 $ 62,427 Interest cost 2,287 2,446 Actuarial (gain) loss (4,371 ) 4,269 Benefits paid (2,366 ) (2,395 ) Projected benefit obligation at end of year $ 62,297 $ 66,747 Change in plan assets: Fair value of plan assets at beginning of year $ 54,437 $ 51,213 Actual return on plan assets (2,507 ) 5,619 Employer contribution 6,000 — Benefits paid (2,366 ) (2,395 ) Fair value of plan assets at end of year $ 55,564 $ 54,437 Unfunded status $ 6,733 $ 12,310 The accumulated benefit obligation is equal to the projected benefit obligation as of December 29, 2018 and December 30, 2017 because the plan is frozen. The unfunded status is included in other long-term liabilities in the Company's consolidated balance sheet. The Company made a discretionary contribution of $6.0 million to the OshKosh B'Gosh pension plan in fiscal 2018. The Company does not expect to make any contributions to the OshKosh B'Gosh pension plan during fiscal 2019 as the plan's funding exceeds the minimum funding requirements. The actuarial gain in fiscal 2018 was primarily attributable to a higher discount rate while the actuarial loss incurred in fiscal 2017 was primarily attributable to a lower discount rate. Net Periodic Pension Cost and Changes Recognized in Other Comprehensive Income The components of net periodic pension cost recognized in the statement of operations and changes recognized in other comprehensive income were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Recognized in the statement of operations: Interest cost $ 2,287 $ 2,446 $ 2,515 Expected return on plan assets (2,934 ) (2,601 ) (2,701 ) Recognized actuarial loss (1) 709 681 578 Net periodic pension cost $ 62 $ 526 $ 392 Changes recognized in other comprehensive income: Net loss arising during the fiscal year $ 1,070 $ 1,251 $ 1,644 Amortization of net loss (1) (709 ) (681 ) (578 ) Total changes recognized in other comprehensive income $ 361 $ 570 $ 1,066 Total net periodic cost and changes recognized in other comprehensive income $ 423 $ 1,096 $ 1,458 (1) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2019 , approximately $0.8 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic pension cost. Assumptions The actuarial computations utilized the following assumptions, using year-end measurement dates: Benefit obligation 2018 2017 Discount rate 4.00% 3.50% Net periodic pension cost 2018 2017 2016 Discount rate 3.50% 4.00% 4.25% Expected long-term rate of return on assets 6.25% 6.00% 6.00% The discount rates used at December 29, 2018 , December 30, 2017 , and December 31, 2016 were determined with consideration given to the Citigroup Pension Discount and Liability Index and the Barclay Capital Aggregate AA Bond Index, adjusted for the timing of expected plan distributions. The Company believes these indexes reflect a risk-free rate consistent with a portfolio of high quality debt instruments with maturities that are comparable to the timing of the expected payments under the plan. The expected long-term rate of return assumption considers historic returns adjusted for changes in overall economic conditions that may affect future returns and a weighting of each investment class. A 0.25% change in the assumed discount rate would result in an increase or decrease in the amount of the pension plan's projected benefit obligation of approximately $2.0 million . The Company currently expects benefit payments for its defined benefit pension plans as follows for the next ten fiscal years: (dollars in thousands) 2019 $ 3,020 2020 $ 2,600 2021 $ 2,660 2022 $ 2,860 2023 $ 2,940 2024-2028 $ 17,850 Plan Assets The Company's investment strategy is to invest in a well-diversified portfolio consisting of mutual funds or group annuity contracts that minimize concentration of risks by utilizing a variety of asset types, fund strategies, and fund managers. The target allocation for plan assets is 45% equity securities, 50% bond funds, and 5% real estate investments. The plan expects to gradually reduce its equity exposure. The Company’s investment policy anticipates a rate of return sufficient to fund pension plan benefits while minimizing the risk to the Company of additional funding. Based on actual returns over a long-term basis, the Company believes that a 5.50% annual return on plan assets can be achieved based on the current allocation and investment strategy. Equity securities primarily include funds invested in large-cap and mid-cap companies, primarily located in the U.S., with a small exposure to international equities. Fixed income securities include funds holding corporate bonds of companies from diverse industries, and U.S. Treasuries. Real estate funds include investments in actively managed mutual funds that invest in real estate. The fair value of the Company's pension plan assets at December 29, 2018 and December 30, 2017 , by asset category, were as follows: (dollars in thousands) December 29, 2018 December 30, 2017 Asset Category Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash equivalents $ 550 $ 550 $ — $ 539 $ 539 $ — Equity Securities: U.S. Large-Cap blend (1) 7,693 7,693 — 7,418 7,418 — U.S. Large-Cap growth 3,478 3,478 — 3,331 3,331 — U.S. Mid-Cap growth 3,355 3,355 — 3,228 3,228 — U.S. Small-Cap blend 2,224 2,224 — 2,147 2,147 — International blend 8,302 8,302 — 8,142 8,142 — Fixed income securities: Corporate bonds (2) 27,247 27,006 241 26,888 26,480 408 Real estate (3) 2,715 2,715 — 2,744 2,744 — $ 55,564 $ 55,323 $ 241 $ 54,437 $ 54,029 $ 408 (1) This category comprises low-cost equity index funds not actively managed that track the Standard & Poor's 500 Index. (2) This category invests in both U.S. Treasuries and mid-term corporate debt from U.S. issuers from diverse industries. (3) This category represents an investment in a mutual fund that invests primarily in real estate securities, including common stocks, preferred stock and other equity securities issued by real estate companies. Post-retirement Life and Medical Plan Under a defined benefit plan frozen in 1991, the Company offers a comprehensive post-retirement medical plan to current and certain future retirees and their spouses. The Company also offers life insurance to current and certain future retirees. Employee contributions are required as a condition of participation for both medical benefits and life insurance and the Company's liabilities are net of these expected employee contributions. Accumulated Post-Retirement Benefit Obligation The following is a reconciliation of the accumulated post-retirement benefit obligation ("APBO") under this plan: For the fiscal years ended (dollars in thousands) December 29, 2018 December 30, 2017 APBO at beginning of fiscal year $ 3,969 $ 4,125 Service cost 32 30 Interest cost 123 137 Actuarial loss (gain) (573 ) 26 Plan participants' contribution 1 6 Benefits paid (324 ) (355 ) APBO at end of fiscal year $ 3,228 $ 3,969 Approximately $2.9 million and $3.6 million of the APBO at the end of fiscal 2018 and 2017 , respectively, were classified as other long term liabilities in the Company's consolidated balance sheets. Net Periodic Post-Retirement (Benefit) Cost and Changes Recognized in Other Comprehensive Income The components of net periodic post-retirement cost (benefit) recognized in the statement of operations and changes recognized in other comprehensive income were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Recognized in the statement of operations: Service cost – benefits attributed to service during the period $ 32 $ 30 $ 123 Interest cost on accumulated post-retirement benefit obligation 123 137 177 Amortization net actuarial gain (*) (289 ) (306 ) (198 ) Net periodic post-retirement (benefit) cost $ (134 ) $ (139 ) $ 102 Changes recognized in other comprehensive income: Net loss (gain) arising during the fiscal year $ (573 ) $ 26 $ (740 ) Prior service cost — — 11 Amortization of net gain (*) 289 306 198 Total changes recognized in other comprehensive income $ (284 ) $ 332 $ (531 ) Total net periodic (benefit) cost and changes recognized in other comprehensive income $ (418 ) $ 193 $ (429 ) (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2019 , approximately $0.4 million is expected to be reclassified from accumulated other comprehensive loss as a credit to periodic net periodic pension cost. Assumptions The actuarial computations utilized the following assumptions, using year-end measurement dates: Benefit obligation 2018 2017 Discount rate 4.00% 3.25% Net periodic pension cost 2018 2017 2016 Discount rate 3.25% 3.50% 3.75% The discount rates used at December 29, 2018 , December 30, 2017 , and December 31, 2016 , were determined with primary consideration given to the Citigroup Pension Discount and Liability Index adjusted for the timing of expected plan distributions. The Company believes this index reflects a risk-free rate with maturities that are comparable to the timing of the expected payments under the plan. The effects on the Company's plan of all future increases in health care costs are borne primarily by employees; accordingly, increasing medical costs are not expected to have any material effect on the Company's future financial results. The Company's contribution for these post-retirement benefit obligations was approximately $0.3 million in fiscal year 2018 , $0.3 million in fiscal year 2017 , and $0.4 million in fiscal year 2016 . The Company expects that its contribution and benefit payments for post-retirement benefit obligations will be approximately $0.3 million for fiscal years 2019 , 2020 , 2021 , 2022 , and 2023 . For the five years subsequent to fiscal 2023 , the aggregate contributions and benefit payments for post-retirement benefit obligations is expected to be approximately $1.1 million . The Company does not pre-fund this plan and as a result there are no plan assets. Deferred Compensation Plan The Company maintains a deferred compensation plan allowing voluntary salary and incentive compensation deferrals for qualifying employees as permitted by the Internal Revenue Code. Participant deferrals earn investment returns based on a select number of investment options, including equity, debt, and real estate mutual funds. The Company invests comparable amounts in marketable securities to mitigate the risk associated with the investment return on the employee deferrals. Defined Contribution Plan The Company also sponsors defined contribution savings plans in the United States and Canada. The U.S. plan covers employees who are at least 21 years of age and have completed one calendar month of service and, if part-time, work a minimum of one thousand hours of service within the one-year period following the commencement of employment or during any subsequent calendar year. The plan provides for a discretionary employer match. The Company's expense for the U.S. defined contribution savings plan totaled approximately $8.0 million , $13.9 million , and $10.5 million for the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , respectively. Expenses related to the Canadian defined contribution savings plan were approximately $0.1 million for the fiscal year ended December 29, 2018 and approximately $0.3 million for the fiscal year ended December 30, 2017 ; amounts for fiscal 2016 were not material. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Provision for Income Taxes The provision for income taxes consisted of the following: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Current tax provision: Federal $ 48,129 $ 117,676 $ 113,326 State 9,437 11,368 11,407 Foreign 17,359 14,116 11,937 Total current provision $ 74,925 $ 143,160 $ 136,670 Deferred tax provision (benefit): Federal $ (760 ) $ (55,191 ) $ 1,215 State 140 337 332 Foreign (398 ) (82 ) (486 ) Total deferred provision (1,018 ) (54,936 ) 1,061 Total provision $ 73,907 $ 88,224 $ 137,731 The foreign portion of the tax position substantially relates to the Company's international operations in Canada, Hong Kong and Mexico in addition to foreign tax withholdings related to the Company's foreign royalty income. The Company plans to repatriate undistributed earnings from Hong Kong and a portion of its previously taxed earnings from Canada, and has provided for deferred income taxes related to these earnings. Due to the impact of the one-time toll tax enacted under the U.S. Tax Cuts and Jobs Act of 2017 ( the “2017 Act”) which taxed cumulative earnings in our foreign subsidiaries and the current US tax regime which taxes foreign earnings in the year earned, taxes associated with repatriation are not material. Deferred income taxes have not been provided for the portion of undistributed foreign earnings from Canada or Mexico that we do not plan to repatriate, or any additional outside basis difference inherent in all foreign entities, as these amounts continue to be indefinitely reinvested in foreign operations. Total undistributed earnings from the Company’s subsidiaries in Canada and Mexico amounted to approximately $82 million . Unrecognized deferred tax liability related to undistributed earnings from the Company's subsidiaries in Canada and Mexico are estimated to be less than $2 million , based on applicable withholding taxes, levels of foreign income previously taxed in the U.S. and applicable foreign tax credit limitations. The company accounts for the additional U.S. income tax on its foreign earnings under Global Intangible Low-Taxed Income ("GILTI") as a period expense in the period in which additional tax is due. Provisional estimate The provision for income taxes recognized by the Company during 2017 reflected certain provisional estimates for the accounting of the December 22, 2017 enactment of tax law changes known as the 2017 Act. During the fourth quarter of fiscal 2017, the Company recognized an income tax provisional tax expense of $10.4 million related to the Company's total post-1986 foreign earnings and profits ("E&P") that the Company previously deferred from United States income taxes. During fiscal 2018, the Company completed its calculation of the one-time transition tax for all of its foreign subsidiaries. The adjustment made to this provisional tax expense estimate was not material. The components of income before income taxes were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ 260,722 $ 325,620 $ 344,674 Foreign 95,253 65,452 50,766 Total $ 355,975 $ 391,072 $ 395,440 Effective Rate Reconciliation The difference between the Company's effective income tax rate and the federal statutory tax rate is reconciled below: For the fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 2.8 % 2.1 % 2.3 % Impact of foreign operations (1.5 )% (2.7 )% (2.1 )% Settlement of uncertain tax positions (0.4 )% (0.3 )% (0.4 )% Benefit from stock-based compensation (1.1 )% (1.3 )% — % Imposition of transition tax on foreign subsidiaries — % 2.7 % — % Revaluation of deferred taxes — % (12.9 )% — % Total 20.8 % 22.6 % 34.8 % The Company and its subsidiaries file a consolidated United States federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. In most cases, the Company is no longer subject to US tax authority examinations for years prior to fiscal 2014. Deferred Taxes The following table reflects the Company’s calculation of the components of deferred assets and liabilities as of December 29, 2018 and December 30, 2017 . Certain previously reported amounts as of December 30, 2017 were revised in the table below. The revisions were not material to the previously issued financial statements. (dollars in thousands) December 29, 2018 December 30, 2017 Deferred tax assets: Assets (Liabilities) Accounts receivable allowance $ 3,674 $ 3,632 Inventory 7,785 6,759 Accrued liabilities 10,672 13,174 Equity-based compensation 5,278 6,796 Deferred employee benefits 6,425 8,112 Deferred rent 33,761 34,422 Other 3,007 2,335 Total deferred tax assets 70,602 75,230 Deferred tax liabilities: Depreciation (62,898 ) (63,763 ) Tradename and licensing agreements (89,194 ) (89,142 ) Other (3,774 ) (5,328 ) Total deferred tax liabilities (155,866 ) (158,233 ) Net deferred tax asset (liability) $ (85,264 ) $ (83,003 ) Amounts recognized in the consolidated balance sheets: (dollars in thousands) December 29, 2018 December 30, 2017 Assets (Liabilities) Deferred tax assets (*) $ 2,083 $ 1,941 Deferred tax liabilities (87,347 ) (84,944 ) Net deferred tax asset (liability) $ (85,264 ) $ (83,003 ) (*) At December 30, 2017, deferred tax assets are a component of non-current Other assets on the Company's consolidated balance sheet. During the fourth quarter of fiscal 2017, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally a 21% federal rate. The remeasurement resulted in an income tax benefit of $50.4 million . Uncertain Tax Positions The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (dollars in thousands) Balance at January 2, 2016 $ 9,415 Additions based on tax positions related to fiscal 2016 2,849 Reductions for prior year tax positions (39 ) Reductions for lapse of statute of limitations (995 ) Reductions for prior year tax settlements (693 ) Balance at December 31, 2016 $ 10,537 Additions based on tax positions related to fiscal 2017 3,380 Reductions for prior year tax positions (120 ) Reductions for lapse of statute of limitations (1,604 ) Balance at December 30, 2017 $ 12,193 Additions based on tax positions related to fiscal 2018 3,350 Additions for prior year tax positions 241 Reductions for lapse of statute of limitations (1,867 ) Balance at December 29, 2018 $ 13,917 As of December 29, 2018 , the Company had gross unrecognized tax benefits of approximately $13.9 million , of which $11.9 million , if ultimately recognized, will affect the Company's effective tax rate in the period 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. Because of deferred tax accounting, changes in the timing of these deductions would not affect the annual effective tax rate, but would accelerate the payment of cash to the taxing authorities. Included in the reserves for unrecognized tax benefits are approximately $2.9 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 2019 and 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 penalties related to unrecognized tax benefits as a component of income tax expense. During fiscal 2018 , expense recorded on uncertain tax positions was approximately $0.8 million . During fiscal 2017 and 2016 , interest expense recorded on uncertain tax positions was not significant. The Company had accrued interest on uncertain tax positions of approximately $1.8 million and $1.0 million as of December 29, 2018 and December 30, 2017 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 29, 2018 | |
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: For the fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 46,160,935 47,593,211 49,917,858 Dilutive effect of equity awards 487,485 552,864 457,849 Diluted number of common and common equivalent shares outstanding 46,648,420 48,146,075 50,375,707 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 282,068 $ 302,848 $ 257,709 Income allocated to participating securities (2,148 ) (2,407 ) (2,046 ) Net income available to common shareholders $ 279,920 $ 300,441 $ 255,663 Basic net income per common share $ 6.06 $ 6.31 $ 5.12 Diluted net income per common share: Net income $ 282,068 $ 302,848 $ 257,709 Income allocated to participating securities (2,132 ) (2,386 ) (2,032 ) Net income available to common shareholders $ 279,936 $ 300,462 $ 255,677 Diluted net income per common share $ 6.00 $ 6.24 $ 5.08 Anti-dilutive shares excluded from dilutive earnings per share calculations (1) 289,839 629,944 247,460 (1) The volume of antidilutive shares is, in part, due to the related unamortized compensation costs. The Company grants shares of its common stock in the form of restricted stock awards to certain key employees under the Company's Amended and Restated Equity Incentive Plan (see Note 10 , Stock-based Compensation , to the consolidated financial statements). Prior to vesting of the restricted stock awards, the grant recipients are entitled to receive non-forfeitable cash dividends if the Company's board of directors declares and pays dividends on the Company's common stock. Accordingly, unvested shares of the Company's restricted stock awards are deemed to be participating securities for purposes of computing diluted earnings per share (EPS), and therefore the Company's diluted EPS represents the lower of the amounts calculated under the treasury stock method or the two-class method of calculating diluted EPS. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports segment information based upon a "management approach." The management approach refers to the internal reporting that is used by management for making operating decisions and assessing the performance of the Company's reportable segments. The Company reports its corporate expenses separately as they are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of its reportable segments. Segment results include the direct costs of each segment and all other costs are allocated based upon detailed estimates and analysis of actual time and expenses incurred to support the operations of each segment or units produced or sourced to support each segment's revenue. Certain costs, including incentive compensation for certain employees, and various other general corporate costs that are not specifically allocable to segments, are included in corporate expenses below. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. The accounting policies of the segments are the same as those described in Note 2 , Summary of Significant Accounting Policies , to the consolidated financial statements. At the beginning of fiscal 2017, the Company combined its Carter's Retail and OshKosh Retail operating segments into a single U.S. Retail operating segment, and its Carter's Wholesale and OshKosh Wholesale operating segments into a single U.S. Wholesale operating segment, in order to reflect the sales-channel approach the Company's executive management now uses to evaluate its business performance and manage operations in the United States. The Company's International operating segment was not affected by these changes. The Company's operating and reportable segments are now U.S. Retail, U.S. Wholesale, and International. Prior periods have been conformed to reflect the Company's current segment structure by adding together Carter's Retail and OshKosh Retail as U.S. Retail and Carter's Wholesale and OshKosh Wholesale as U.S. Wholesale. Prior results for the International segment and Corporate expenses were not impacted. The table below presents certain segment information for the periods indicated For the fiscal year ended (dollars in thousands) December 29, 2018 % of December 30, 2017 % of December 31, 2016 % of Total Net sales : U.S. Retail $ 1,851,193 53.5 % $ 1,775,378 52.2 % $ 1,655,784 51.8 % U.S. Wholesale 1,180,687 34.1 % 1,209,663 35.6 % 1,178,034 36.8 % International 430,389 12.4 % 415,463 12.2 % 364,725 11.4 % Total net sales $ 3,462,269 100.0 % $ 3,400,504 100.0 % $ 3,198,543 100.0 % Operating income : % of % of % of U.S. Retail (1)(2)(4) $ 224,784 12.1 % $ 215,640 12.1 % $ 211,951 12.8 % U.S. Wholesale (3)(4) 224,194 19.0 % 252,090 20.8 % 260,953 22.2 % International (4)(5) 39,253 9.1 % 46,426 11.2 % 59,194 16.2 % Corporate expenses (6)(7) (96,798 ) (94,549 ) (106,170 ) Total operating income $ 391,433 11.3 % $ 419,607 12.3 % $ 425,928 13.3 % (1) Fiscal 2018 includes insurance recovery of approximately $0.4 million associated with unusual storm-related store closures in 2017. (2) Fiscal 2017 includes approximately $2.7 million of expenses related to store restructuring and approximately $12.7 million for provisions for special employee compensation. (3) Includes approximately $12.8 million of charges, partially offset by a $1.9 million recovery claim settlement, related to a customer bankruptcy for fiscal 2018. Fiscal 2017 includes approximately $3.3 million for provisions for special employee compensation. (4) Includes $1.2 million of certain costs related to inventory acquired from Skip Hop in operating income between U.S. Wholesale, U.S. Retail, and International for fiscal 2017. (5) Includes international licensing income. Fiscal 2018 includes approximately $5.3 million in costs associated with changes to the Company's business model in China, which includes inventory and severance charges. Fiscal 2017 includes approximately $2.3 million for provisions for special employee compensation. (6) Includes 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. (7) Includes the following charges for fiscal 2017 and fiscal 2016: For the fiscal year ended (dollars in millions) December 30, 2017 December 31, 2016 Provisions for special employee compensation $ 2.9 $ — Amortization of H.W. Carter and Sons tradenames $ — $ 1.7 Adjustment to Skip Hop contingent consideration $ (3.6 ) $ — Direct sourcing initiative $ 0.3 $ 0.7 Acquisition-related costs $ 3.4 $ 2.4 Additional Data by Segment Inventory The table below represents inventory by segment: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 U.S. Wholesale (*) $ 414,174 $ 389,484 U.S. Retail 96,241 93,404 International 63,811 65,834 Total $ 574,226 $ 548,722 (*) U.S. Wholesale inventories also include inventory produced and warehoused for the U.S. Retail segment. The table below represents consolidated net sales by product: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Baby $ 1,239,009 $ 1,294,404 $ 1,241,452 Playclothes 1,303,610 1,239,546 1,214,995 Sleepwear 431,961 426,703 407,078 Other(*) 487,689 439,851 335,018 Total net sales $ 3,462,269 $ 3,400,504 $ 3,198,543 (*) Other product offerings include bedding, outwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories. Geographical Data Revenue The Company's international sales principally represent sales to customers in Canada. Such sales were 64.2% and 64.9% of total international sales in fiscal 2018 and 2017 , respectively. Long-Lived Assets The following represents property, plant, and equipment, net, by geographic area: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 United States $ 314,679 $ 337,369 International 35,758 40,555 Total $ 350,437 $ 377,924 Long-lived assets in the international segment relate principally to Canada. Long-lived assets in Canada were 87.4% and 87.6% of total international long-lived assets at the end of fiscal 2018 and 2017 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 29, 2018 | |
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 are included in Other assets on the accompanying consolidated balance sheets, and their aggregate fair values were approximately $15.7 million and $16.7 million at the end of fiscal 2018 and fiscal 2017 , respectively. These investments are classified as Level 1 within the fair value hierarchy. Investments in marketable securities incurred a net loss of approximately $1.0 million and $0.1 million for fiscal 2018 and 2017 , respectively. The fair value of the Company's pension plan assets at December 29, 2018 and December 30, 2017 , by asset category, are disclosed in Note 11 , Employee Benefits Plans , to the consolidated financial statements. Foreign Exchange Forward Contracts Fair values of any unsettled foreign exchange forward contracts are calculated by using readily observable market inputs (market-quoted currency exchange rates in effect between the U.S. dollar and the currencies of Canada and Mexico) and are classified as Level 2 within the fair value hierarchy. Any unsettled foreign exchange forward contracts are included in other current assets or other current liabilities on the Company's consolidated balance sheet at the end of each fiscal reporting period. As of December 29, 2018 , there were no open foreign currency contracts. As of December 30, 2017 , the fair value of open foreign currency contracts was not material. Realized and unrealized gains and losses on foreign currency contracts were not material for fiscal 2018 and 2017 . For foreign currency contracts settled during fiscal 2016 , the Company realized net losses of $3.2 million . These amounts are included in other (income) expense, net on the Company's consolidated statement of operations. The were no open foreign currency contracts at the end of fiscal 2016. Borrowings As of December 29, 2018 , the fair value of the Company's $196.0 million in borrowings under its secured revolving credit facility approximated carrying value. The fair value of the Company's senior notes at December 29, 2018 was approximately $399 million . The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $400 million was estimated using a quoted price as provided in the secondary market, which considers the Company's credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy. |
OTHER CURRENT AND LONG-TERM LIA
OTHER CURRENT AND LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT AND LONG-TERM LIABILITIES | OTHER CURRENT AND LONG-TERM LIABILITIES Other current liabilities that exceeded five percent of total current liabilities (at the end of either fiscal year) consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Accrued bonuses and incentive compensation $ 8,409 $ 27,566 Income taxes payable 17,415 16,252 Accrued employee benefits 16,421 21,735 Accrued and deferred rent 19,120 18,213 Other long-term liabilities that exceeded five percent of total liabilities (at the end of either fiscal year) consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Deferred lease incentives $ 72,345 $ 75,104 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 29, 2018 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Rent expense under operating leases (including properties and computer and office equipment) was approximately $165.6 million , $161.9 million , and $150.6 million for the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , respectively. Minimum annual rental commitments under current non-cancellable operating leases, as of December 29, 2018 , substantially all of which relate to leased real estate, were as follows: Fiscal Year Operating Leases 2019 $ 163,963 2020 150,010 2021 134,203 2022 116,773 2023 102,487 Thereafter 235,731 Total $ 903,167 Amounts related to property include leases on retail stores as well as various corporate offices, distribution facilities, and other premises. Our average term remaining for a retail store lease in the United States is approximately 4.9 years, excluding renewal options. Total commitments under capital leases were approximately $1.3 million at December 29, 2018 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 29, 2018 | |
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 effect on its financial position, results of operations, or cash flows. The Company's contractual obligations and commitments also include obligations associated with leases, the secured revolving credit agreement, senior notes, employee benefit plans, and facility consolidations/closures as disclosed elsewhere in the notes to the consolidated financial statements. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 29, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Information regarding accounts receivable is as follows: (dollars in thousands) Wholesale accounts receivable reserves Wholesale sales returns reserves Total Balance at January 2, 2016 $ 8,543 $ 400 $ 8,943 Additional provisions 6,088 — 6,088 Charges to reserve (5,879 ) (400 ) (6,279 ) Balance at December 31, 2016 $ 8,752 $ — $ 8,752 Additional provisions 8,204 — 8,204 Charges to reserve (3,220 ) — (3,220 ) Balance at December 30, 2017 $ 13,736 $ — $ 13,736 Additional provisions 30,280 — 30,280 Charges to reserve (32,150 ) — (32,150 ) Balance at December 29, 2018 $ 11,866 $ — $ 11,866 |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL DATA | UNAUDITED QUARTERLY FINANCIAL DATA The Company experiences seasonal fluctuations in its sales and profitability due to the timing of certain holidays and key retail shopping periods, typically resulting in lower sales and gross profit in the first half of its fiscal year. The unaudited summarized financial data by quarter for the fiscal years ended December 29, 2018 and December 30, 2017 is presented in the table below: (dollars in thousands, except per share data) Quarter 1 Quarter 2 Quarter 3 Quarter 4 (2) Fiscal 2018: Net sales $ 755,786 $ 696,197 $ 923,907 $ 1,086,379 Gross profit $ 332,477 $ 309,958 $ 387,450 $ 467,598 Royalty income, net $ 7,994 $ 10,355 $ 10,224 $ 10,357 Selling, general, and administrative expenses $ 280,162 $ 263,343 $ 294,117 $ 307,358 Operating income $ 60,309 $ 56,970 $ 103,557 $ 170,597 Net income $ 42,469 $ 37,268 $ 71,770 $ 130,561 Basic net income per common share (1) $ 0.90 $ 0.80 $ 1.55 $ 2.85 Diluted net income per common share (1) $ 0.89 $ 0.79 $ 1.53 $ 2.83 Fiscal 2017: Net sales $ 732,827 $ 691,751 $ 948,046 $ 1,027,880 Gross profit $ 315,692 $ 303,247 $ 403,578 $ 460,837 Royalty income, net $ 10,558 $ 11,210 $ 10,350 $ 11,063 Selling, general, and administrative expenses $ 247,794 $ 250,146 $ 283,480 $ 325,508 Operating income $ 78,456 $ 64,311 $ 130,448 $ 146,392 Net income $ 46,595 $ 37,793 $ 82,316 $ 136,144 Basic net income per common share (1) $ 0.96 $ 0.78 $ 1.73 $ 2.88 Diluted net income per common share (1) $ 0.95 $ 0.77 $ 1.71 $ 2.85 (1) May not be additive to the net income per common share amounts for the fiscal year due to the calculation provision of ASC 260, Earnings Per Share . (2) The provision for income taxes recognized during the fourth quarter of fiscal 2017 reflects a benefit of $40.0 million related to the accounting for the December 22, 2017 enactment of tax law changes known as the U.S. Tax Cuts and Jobs Act of 2017. |
GUARANTOR CONDENSED CONSOLIDATI
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 29, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | GUARANTOR 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 Parent's current domestic subsidiaries (other than TWCC), and, subject to certain exceptions, future restricted subsidiaries that guarantee the Company’s amended revolving credit facility or certain other debt of the Company or the subsidiary guarantors. The 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 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. CARTER’S, INC. Condensed Consolidating Balance Sheet As of December 29, 2018 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 118,600 $ 14,735 $ 36,742 $ — $ 170,077 Accounts receivable, net — 203,546 38,753 15,960 — 258,259 Intercompany receivable — 89,201 156,965 70,684 (316,850 ) — Finished goods inventories — 329,989 199,091 63,811 (18,665 ) 574,226 Prepaid expenses and other current assets — 8,483 23,987 7,926 — 40,396 Total current assets — 749,819 433,531 195,123 (335,515 ) 1,042,958 Property, plant, and equipment, net — 133,765 180,914 35,758 — 350,437 Goodwill — 136,570 45,368 45,163 — 227,101 Tradenames, net — 223,073 142,619 — — 365,692 Customer relationships, net — — 41,820 2,691 — 44,511 Other assets — 24,399 1,321 2,439 — 28,159 Intercompany long-term receivable — — 541,629 — (541,629 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 869,433 1,173,415 303,368 — (2,346,216 ) — Total assets $ 869,433 $ 2,541,041 $ 1,690,570 $ 281,174 $ (3,323,360 ) $ 2,058,858 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 137,524 $ 44,066 $ 17,486 $ — $ 199,076 Intercompany Liabilities — 220,033 93,790 3,027 (316,850 ) — Other current liabilities — 35,311 78,595 14,439 — 128,345 Total current liabilities — 392,868 216,451 34,952 (316,850 ) 327,421 Long-term debt, net — 593,264 — — — 593,264 Deferred income taxes — 46,640 40,327 380 — 87,347 Intercompany long-term liability — 541,629 — — (541,629 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 78,542 91,218 11,633 — 181,393 Stockholders' equity 869,433 888,098 1,242,574 234,209 (2,364,881 ) 869,433 Total liabilities and stockholders' equity $ 869,433 $ 2,541,041 $ 1,690,570 $ 281,174 $ (3,323,360 ) $ 2,058,858 CARTER’S, INC. Condensed Consolidating Balance Sheet As of December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 129,463 $ 10,030 $ 39,001 $ — $ 178,494 Accounts receivable, net — 182,944 40,286 17,331 — 240,561 Intercompany receivable — 87,702 162,007 58,980 (308,689 ) — Finished goods inventories — 296,065 206,556 66,569 (20,468 ) 548,722 Prepaid expenses and other current assets — 17,012 21,354 14,569 — 52,935 Total current assets — 713,186 440,233 196,450 (329,157 ) 1,020,712 Property, plant, and equipment, net — 147,858 189,511 40,555 — 377,924 Goodwill — 136,570 45,368 48,486 — 230,424 Tradenames, net — 223,251 142,300 — — 365,551 Customer relationships, net — — 44,996 3,000 — 47,996 Other assets — 23,884 2,392 2,159 — 28,435 Intercompany long-term receivable — — 441,294 — (441,294 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 857,416 1,053,224 231,994 — (2,142,634 ) — Total assets $ 857,416 $ 2,397,973 $ 1,538,088 $ 290,650 $ (3,013,085 ) $ 2,071,042 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 115,658 $ 49,313 $ 17,143 $ — $ 182,114 Intercompany payables — 215,573 91,697 1,419 (308,689 ) — Other current liabilities — 11,805 122,989 14,340 — 149,134 Total current liabilities — 343,036 263,999 32,902 (308,689 ) 331,248 Long-term debt — 617,306 — — — 617,306 Deferred income taxes — 46,619 37,647 678 — 84,944 Intercompany long-term liability — 441,294 — — (441,294 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 71,834 92,570 15,724 — 180,128 Stockholders' equity 857,416 877,884 1,043,872 241,346 (2,163,102 ) 857,416 Total liabilities and stockholders' equity $ 857,416 $ 2,397,973 $ 1,538,088 $ 290,650 $ (3,013,085 ) $ 2,071,042 Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,936,576 $ 2,039,889 $ 431,745 $ (945,941 ) $ 3,462,269 Cost of goods sold — 1,458,934 1,217,110 213,462 (924,720 ) 1,964,786 Gross profit — 477,642 822,779 218,283 (21,221 ) 1,497,483 Royalty income, net — 32,958 18,652 — (12,680 ) 38,930 Selling, general, and administrative expenses — 191,068 856,665 132,951 (35,704 ) 1,144,980 Operating income (loss) — 319,532 (15,234 ) 85,332 1,803 391,433 Interest expense — 34,523 5,310 44 (5,308 ) 34,569 Interest income — (5,329 ) (2 ) (504 ) 5,308 (527 ) (Income) loss in subsidiaries (282,068 ) (38,528 ) (71,671 ) — 392,267 — Other expense (income), net — 495 (189 ) 1,110 — 1,416 Income (loss) before income taxes 282,068 328,371 51,318 84,682 (390,464 ) 355,975 Provision for income taxes — 48,106 12,790 13,011 — 73,907 Net income (loss) $ 282,068 $ 280,265 $ 38,528 $ 71,671 $ (390,464 ) $ 282,068 For the fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,922,930 $ 1,955,703 $ 372,314 $ (850,443 ) $ 3,400,504 Cost of goods sold — 1,406,517 1,143,867 196,391 (829,625 ) 1,917,150 Gross profit — 516,413 811,836 175,923 (20,818 ) 1,483,354 Royalty income, net — 34,816 19,725 — (11,360 ) 43,181 Selling, general, and administrative expenses — 181,129 837,252 126,057 (37,510 ) 1,106,928 Operating income (loss) — 370,100 (5,691 ) 49,866 5,332 419,607 Interest expense — 29,758 5,498 96 (5,308 ) 30,044 Interest income — (5,497 ) — (156 ) 5,308 (345 ) (Income) loss in subsidiaries (302,848 ) (25,426 ) (38,948 ) — 367,222 — Other (income) expense, net — (1,154 ) 1,281 (1,291 ) — (1,164 ) Income (loss) before income taxes 302,848 372,419 26,478 51,217 (361,890 ) 391,072 Provision for income taxes — 74,903 1,052 12,269 — 88,224 Net income (loss) $ 302,848 $ 297,516 $ 25,426 $ 38,948 $ (361,890 ) $ 302,848 CARTER’S, INC. Condensed Consolidating Statement of Operations For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,881,918 $ 1,762,252 $ 300,523 $ (746,150 ) $ 3,198,543 Cost of goods sold — 1,358,209 1,033,403 155,560 (727,148 ) 1,820,024 Gross profit — 523,709 728,849 144,963 (19,002 ) 1,378,519 Royalty income, net — 32,728 19,660 — (9,573 ) 42,815 Selling, general, and administrative expenses — 177,605 753,874 101,494 (37,567 ) 995,406 Operating income (loss) — 378,832 (5,365 ) 43,469 8,992 425,928 Interest expense — 26,475 5,435 442 (5,308 ) 27,044 Interest income — (5,756 ) — (115 ) 5,308 (563 ) (Income) loss in subsidiaries (257,709 ) 4,808 (29,308 ) — 282,209 — Other (income) expense, net — (382 ) 482 3,907 — 4,007 Income (loss) before income taxes 257,709 353,687 18,026 39,235 (273,217 ) 395,440 Provision for income taxes — 104,970 22,834 9,927 — 137,731 Net income (loss) $ 257,709 $ 248,717 $ (4,808 ) $ 29,308 $ (273,217 ) $ 257,709 fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 302,848 $ 297,516 $ 25,426 $ 38,948 $ (361,890 ) $ 302,848 Post-retirement benefit plans (692 ) (692 ) (430 ) — 1,122 (692 ) Foreign currency translation adjustments 6,339 6,339 6,339 6,339 (19,017 ) 6,339 Comprehensive income (loss) $ 308,495 $ 303,163 $ 31,335 $ 45,287 $ (379,785 ) $ 308,495 For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 257,709 $ 248,717 $ (4,808 ) $ 29,308 $ (273,217 ) $ 257,709 Post-retirement benefit plans (335 ) (335 ) (666 ) — 1,001 (335 ) Foreign currency translation adjustments 1,962 1,962 1,962 1,962 (5,886 ) 1,962 Comprehensive income (loss) $ 259,336 $ 250,344 $ (3,512 ) $ 31,270 $ (278,102 ) $ 259,336 Condensed Consolidating Statement of Cash Flows For the fiscal year ended December 29, 2018 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 202,214 $ 60,391 $ 93,593 $ — $ 356,198 Cash flows from investing activities: Capital expenditures — (17,589 ) (39,657 ) (6,537 ) — (63,783 ) Acquisitions of businesses, net of cash acquired — — — 96 — 96 Intercompany investing activity 272,978 (815 ) 3,024 1,558 (276,745 ) — Disposals and recoveries from property, plant, and equipment — — 370 10 — 380 Net cash provided by (used in) investing activities $ 272,978 $ (18,404 ) $ (36,263 ) $ (4,873 ) $ (276,745 ) $ (63,307 ) Cash flows from financing activities: Intercompany financing activity — (168,705 ) (97,945 ) (10,095 ) 276,745 — Borrowings under secured revolving credit facility — 290,000 — — — 290,000 Payments on secured revolving credit facility — (315,000 ) — — — (315,000 ) Payment of debt issuance costs — (968 ) — — — (968 ) Dividends paid (83,717 ) — 78,522 (78,522 ) — (83,717 ) Repurchases of common stock (193,028 ) — — — — (193,028 ) Withholdings from vesting of restricted stock (6,830 ) — — — — (6,830 ) Proceeds from exercises of stock options 10,597 — — — — 10,597 Net cash (used in) provided by financing activities (272,978 ) (194,673 ) (19,423 ) (88,617 ) 276,745 (298,946 ) Effect of exchange rate changes on cash — — — (2,362 ) — (2,362 ) Net increase (decrease) in cash and cash equivalents — (10,863 ) 4,705 (2,259 ) — (8,417 ) Cash and cash equivalents, beginning of fiscal year — 129,463 10,030 39,001 — 178,494 Cash and cash equivalents, end of fiscal year $ — $ 118,600 $ 14,735 $ 36,742 $ — $ 170,077 CARTER’S, INC. Condensed Consolidating Statement of Cash Flows For the fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 167,000 $ 118,814 $ 43,807 $ — $ 329,621 Cash flows from investing activities: Capital expenditures — (21,690 ) (38,899 ) (8,884 ) — (69,473 ) Acquisitions of businesses, net of cash acquired — (143,270 ) 746 (15,933 ) — (158,457 ) Intercompany investing activity 256,991 (25,606 ) 894 27,397 (259,676 ) — Disposals and recoveries from property, plant, and equipment — — 15 — — 15 Net cash provided by (used in) investing activities $ 256,991 $ (190,566 ) $ (37,244 ) $ 2,580 $ (259,676 ) $ (227,915 ) Cash flows from financing activities: Intercompany financing activity — (128,908 ) (83,357 ) (47,411 ) 259,676 — Borrowings under secured revolving credit facility — 200,000 — — — 200,000 Payments on secured revolving credit facility — (145,000 ) — (18,965 ) — (163,965 ) Payment of debt issuance costs — (2,119 ) — — — (2,119 ) Dividends paid (70,914 ) — — — — (70,914 ) Repurchases of common stock (188,762 ) — — — — (188,762 ) Withholdings from vesting of restricted stock (5,753 ) — — — — (5,753 ) Proceeds from exercises of stock options 8,438 — — — — 8,438 Net cash (used in) provided by financing activities (256,991 ) (76,027 ) (83,357 ) (66,376 ) 259,676 (223,075 ) Effect of exchange rate changes on cash — — — 505 — 505 Net (decrease) increase in cash and cash equivalents — (99,593 ) (1,787 ) (19,484 ) — (120,864 ) Cash and cash equivalents, beginning of fiscal year — 229,056 11,817 58,485 — 299,358 Cash and cash equivalents, end of fiscal year $ — $ 129,463 $ 10,030 $ 39,001 $ — $ 178,494 CARTER’S, INC. Condensed Consolidating Statement of Cash Flows For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 206,841 $ 127,018 $ 35,370 $ — $ 369,229 Cash flows from investing activities: Capital expenditures — (22,934 ) (55,072 ) (10,550 ) — (88,556 ) Intercompany investing activity 368,307 480 (2,118 ) 131 (366,800 ) — Disposals and recoveries from property, plant, and equipment — 23 — 193 — 216 Net cash provided by (used in) investing activities $ 368,307 $ (22,431 ) $ (57,190 ) $ (10,226 ) $ (366,800 ) (88,340 ) Cash flows from financing activities: Intercompany financing activity — (283,907 ) (74,681 ) (8,212 ) 366,800 — Dividends paid (66,355 ) — — — — (66,355 ) Repurchases of common stock (300,445 ) — — — — (300,445 ) Income tax benefit from stock-based compensation — 2,782 2,018 — — 4,800 Withholdings from vesting of restricted stock (8,673 ) — — — — (8,673 ) Proceeds from exercises of stock options 7,166 — — — — 7,166 Net cash (used in) provided by financing activities (368,307 ) (281,125 ) (72,663 ) (8,212 ) 366,800 (363,507 ) Effect of exchange rate changes on cash — — — 767 — 767 Net increase (decrease) in cash and cash equivalents — (96,715 ) (2,835 ) 17,699 — (81,851 ) Cash and cash equivalents, beginning of fiscal year — 325,771 14,652 40,786 — 381,209 Cash and cash equivalents, end of fiscal year $ — $ 229,056 $ 11,817 $ 58,485 $ — $ 299,358 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Carter's, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
FISCAL YEAR | Fiscal Year 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 fiscal years. Fiscal 2018 , which ended on December 29, 2018 , fiscal 2017 , which ended on December 30, 2017 , and fiscal 2016 , which ended on December 31, 2016 , all contained 52 weeks. |
USE OF ESTIMATES IN THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | Use of Estimates in the Preparation of the Consolidated Financial Statements The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As disclosed in Note 2 , Significant Accounting Policies , and Note 3 , Revenue Recognition , at the beginning of fiscal 2018 the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers, and related amendments (“ASC 606”) using the full retrospective adoption method. The full retrospective method required the Company to apply the standard to the financial statements for the period of adoption as well as to each prior reporting period presented. |
FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS | Foreign Currency Translation and Transactions Translation adjustments The functional currency of substantially all of the Company's foreign operations is the local currency in each foreign country. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within the accompanying consolidated balance sheet. Transaction adjustments The Company also recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency. Foreign currency transaction gains and losses also include intercompany loans with foreign subsidiaries that are of a short-term nature. Foreign currency transaction gains and losses are recognized in earnings, as a separate component of other expense, net, within the consolidated statements of operations. 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 the currencies of Canada and Mexico, the Company may use foreign currency forward contracts to hedge purchases that are made in U.S. dollars, primarily for inventory purchases in its Canadian and Mexican operations. As part of this hedging strategy, the Company may use foreign currency forward exchange contracts with maturities of less than 12 months to provide continuing coverage throughout the hedging period. Historically, these contracts were not designated for hedge accounting treatment, and therefore changes in the fair value of these contracts have been recorded in Other (income) expense, net in the Company's consolidated statement of operations. Such foreign currency gains and losses typically 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. The fair values of any unsettled currency contracts are included in other current assets or other current liabilities on the Company's consolidated balance sheet. On the consolidated statement of cash flows, the Company includes all activity, including cash settlement of any contracts, as a component of cash flows from operations. |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents The Company considers all highly liquid investments that have original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of deposit accounts and cash management funds invested in U. S. government instruments. These investments are stated at cost, which approximates fair value. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions; these amounts typically settle in less than five days. Concentration of cash deposits risk As of December 29, 2018 , the Company had approximately $170.1 million of cash and cash equivalents in major financial institutions, including approximately $36.7 million in financial institutions located outside of the United States. The Company maintains cash deposits with major financial institutions that exceed the insurance coverage limits provided by the Federal Deposit Insurance Corporation in the U.S. and by similar insurers for deposits located outside the U.S. To mitigate this risk, the Company utilizes a policy of allocating cash deposits among major financial institutions that have been evaluated by the Company and third-party rating agencies as having acceptable risk profiles. |
ACCOUNTS RECEIVABLE | Accounts Receivable Concentration of credit risk In fiscal 2018 , 2017 , and 2016 , no one customer accounted for 10% or more of the Company's consolidated net sales. At December 29, 2018 , three wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these three wholesale customers in the aggregate equaled approximately 40% of total gross trade receivables outstanding. At December 30, 2017 , two wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these two wholesale customers in the aggregate equaled approximately 28% of total gross accounts receivable outstanding. Valuation Accounts for Wholesale Accounts Receivable Accounts receivable reserves The Company's accounts receivable reserves for wholesale customers include an allowance for doubtful accounts and an allowance for chargebacks. The allowance for doubtful accounts includes estimated losses resulting from the inability of its customers to make payments. If the financial condition of a customer were to deteriorate, resulting in an impairment of its ability to make payments, an additional allowance could be required. Past due balances over 90 days are reviewed individually for collectibility. The Company's credit and collections department reviews all other balances regularly. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. Provisions for the allowance for doubtful accounts are reflected in Selling, general and administrative expenses on the consolidated statement of operations and provisions for chargebacks are reflected as a reduction in Net sales on the consolidated statement of operations. Sales returns reserves Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company. |
INVENTORIES | Inventories Inventories, which consist primarily of finished goods, are stated approximately at the lower of cost (first-in, first-out basis for wholesale inventory and average cost for retail inventories) or net realizable value. Obsolete, damaged, and excess inventory is carried at net realizable value by establishing reserves after assessing historical recovery rates, current market conditions, and future marketing and sales plans. Rebates, discounts, and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item, and are therefore reflected in cost of sales when the related inventory item is sold. |
PROPERTY, PLANT, AND EQUIPMENT | Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization. When fixed assets are sold or otherwise disposed of, the accounts are relieved of the original cost of the assets and the related accumulated depreciation or amortization and any resulting profit or loss is credited or charged to income. For financial reporting purposes, depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets as follows: buildings and improvements from 15 to 26 years, retail store fixtures, equipment, and computers from 3 to 10 years. Leasehold improvements and fixed assets purchased under capital lease are amortized over the lesser of the asset life or related lease term. The Company capitalizes the cost of its fixtures designed and purchased for use at major wholesale accounts. The cost of these fixtures is amortized over 3 years. |
INTERNAL-USE SOFTWARE | Internal-Use Software The Company purchases software licenses from external vendors and also develops software internally using Company employees and consultants. Software license costs, including certain costs to internally develop software, that meet the applicable criteria are capitalized while all other costs are expensed as incurred. Capitalized software is depreciated or amortized on the straight-line method over its estimated useful lives, from 3 to 10 years. If a software application does not include a purchased license for the software, such as a cloud-based software application, the arrangement is accounted for as a service contract. |
VALUATION OF GOODWILL AND OTHER INTANGIBILE ASSETS | Goodwill and Other Intangible Assets Annual impairment reviews The carrying values of the goodwill and indefinite-lived tradename assets are subject to annual impairment reviews which are performed as of the last day of each fiscal year. Additionally, a review for potential impairment is performed whenever significant events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Significant assumptions in the impairment models include estimates of future cash flows, discount rates, and, in the case of tradenames, royalty rates. Goodwill The Company performs impairment tests of its goodwill at the reporting unit level. Qualitative and quantitative methods are used to assess for impairment, including the use of discounted cash flows ("income approach") and relevant data from guideline public companies ("market approach"). Under a qualitative assessment, the Company determines if it is "more likely than not" that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events. If the Company determines that it is "more likely than not" that the fair value of the reporting unit is less than its carrying value, then the Company performs the two-step goodwill impairment test as required. If it is determined that it is "not likely" that the fair value of the reporting unit is less than its carrying value, then no further testing is required and the Company documents the relevant qualitative factors that support the strength in the fair value. The first step of a quantitative assessment is to compare the fair value of the reporting unit to its carrying value, including goodwill. The Company uses a discounted cash flow model to determine the fair value, using assumptions consistent with those of hypothetical marketplace participants. If the fair value of a reporting unit is less than its carrying value, the second step of the impairment test must be performed. The second step compares the implied fair value of the reporting unit goodwill with the carrying value of that goodwill, in order to determine the amount of the impairment loss and charge to the consolidated statement of operations. Indefinite-lived tradenames For indefinite-lived tradenames, the Company may utilize a qualitative assessment, as described above, to determine whether the fair value of an indefinite-lived asset is less than its carrying value. If a quantitative assessment is necessary, the Company determines fair value using a discounted cash flow model that uses the relief-from-royalty method. If the carrying amount exceeds the fair value of the tradename, an impairment charge is recognized in the amount of the excess. |
IMPAIRMENT OF OTHER LONG-LIVED ASSETS | Impairment of Other Long-Lived Assets The Company reviews other long-lived assets, including property, plant, and equipment, and licensing agreements, for impairment whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Management will determine whether there has been a permanent impairment on such assets held for use in the business by comparing anticipated undiscounted future cash flows from the use and eventual disposition of the asset or asset group to the carrying value of the asset. The amount of any resulting impairment will be calculated by comparing the carrying value to fair value, which may be estimated using the present value of the same cash flows. Long-lived assets that meet the definition of held for sale will be valued at the lower of carrying amount or fair value, less costs to sell. |
DEFERRED DEBT ISSUANCE COSTS | Deferred Debt Issuance Costs Debt issuance costs associated with the Company's secured revolving credit facility and senior term notes are deferred and amortized to interest expense over the term of the related debt using the effective interest method. Debt issuance costs associated with Company's senior notes are presented on the Company's consolidated balance sheet as a direct reduction in the carrying value of the associated debt liability. Fees paid to lenders by the Company to obtain its secured revolving credit facility are included within Other assets on the Company's consolidated balance sheet and classified as either current or non-current based on the expiration date of the credit facility. |
FAIR VALUE MEASUREMENTS | Fair Value Measurements The fair value framework requires the Company to categorize certain assets and liabilities into three levels, based upon the assumptions used to price those assets or liabilities. The three levels are defined as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. The Company measures its pension assets, deferred compensation plan investment assets, and any unsettled foreign currency forward contracts at fair value. T he Company's cash and cash equivalents, accounts receivable, and accounts payable are short-term in nature. As such, their carrying value approximates fair value. The carrying values of the Company’s outstanding borrowings are not required to be remeasured and adjusted to the then-current fair values at the end of each reporting period. Instead, the fair values of the Company's outstanding borrowings are disclosed at the end of each reporting period in Note 8 , Long-Term Debt , to the consolidated financial statements. Had the Company been required to remeasure and adjust the carrying values of its outstanding borrowings to fair value at the end of each reporting period, such fair value measurements would have been disclosed as a Level 2 liability in the fair value hierarchy. |
REVENUE RECOGNITION | Revenue Recognition At the beginning of fiscal 2018, the Company adopted the provisions of ASC No. 606, Revenue from Contracts with Customers, and all related amendments (“ASC 606”) using the full retrospective adoption method. Refer to Note 3 , Revenue Recognition , for additional information. The Company uses the five-step model to recognize revenue: 1) Identify the contract with the customer; 2) Identity the performance obligation(s); 3) Determine the transaction price; 4) Allocate the transaction price to each performance obligation if multiple obligations exist; and 5) Recognize the revenue as the performance obligations are satisfied Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods). The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring control of the goods to the customer. Other than inbound and outbound freight and shipping arrangements, the Company does not use third parties to satisfy its performance obligations in revenue arrangements with customers. When Performance Obligations Are Satisfied Wholesale Revenues - The Company typically transfers control upon shipment. However, in certain arrangements where the Company retains the risk of loss during shipment, satisfaction of the performance obligation occurs when the goods reach the customer. Retail Revenues - For transactions in stores, the Company satisfies its performance obligation at point of sale when the customer takes possession of the goods and tenders payment. The redemption of loyalty points under the Company's rewards program and redemptions of gift cards may be part of a transaction. For purchases made through the Company’s eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. The Company satisfies its performance obligations with licensees over time as customers have the right to use the intellectual property over the contract period. Significant Payment Terms Retail customers tender a form of payment, such as cash or a credit/debit card, at point of sale. For wholesale customers and licensees, payment is due based on established terms. Returns and Refunds The Company establishes return provisions for retail customers. It is the Company's policy not to accept returns from wholesale customers. Significant Judgments Sale of Goods - The Company relies on shipping terms to determine when performance obligations are satisfied. When goods are shipped to wholesale customers “FOB Shipping Point,” control of the goods is transferred to the customer at the time of shipment if there are no remaining performance obligations. The Company recognizes the revenue once control passes to the customer. For retail transactions, no significant judgments are involved since revenue is recognized at the point of sale when tender is exchanged and the customer receives the goods. Royalty Revenues - The Company transfers the right-to-use benefit to the licensee for the contract term and therefore the Company satisfies its performance obligation over time. Revenue recognized for each reporting period is based on the greater of: 1) the royalties owed on actual net sales by the licensee and 2) a minimum royalty guarantee, if applicable. Transaction Price - The transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company may offer sales incentives to wholesale and retail customers, including discounts. For retail transactions, the Company has significant experience with return patterns and relies on this experience to estimate expected returns when determining the transaction price. Standalone Selling Prices - For arrangements that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone selling price basis. Costs Incurred to Obtain a Contract - Incremental costs to obtain contracts are not material to the Company. Policy Elections In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients: • Portfolio Approach - The Company uses the portfolio approach when multiple contracts or performance obligations are involved in the determination of revenue recognition. • Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities. • Shipping and Handling Charges - Charges that are incurred before and after the customer obtains control of goods are deemed to be fulfillment costs. • Time Value of Money - The Company's payment terms are less than one year from the transfer of goods. Therefore, the Company does not adjust promised amounts of consideration for the effects of the time value of money. • Disclosure of Remaining Performance Obligations - The Company does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations for contracts that are one year or less in term. The Company records its cooperative advertising arrangements with certain of its major wholesale customers at fair value. Fair value is determined based upon, among other factors, comparable market analysis for similar advertisements. The Company has included the fair value of these arrangements of approximately $3.0 million for fiscal 2018 , $3.1 million for fiscal 2017 , and $3.7 million for fiscal 2016 as a component of Selling, general, and administrative expenses on the accompanying consolidated statements of operations, rather than as a reduction of net sales. Amounts determined to be in excess of the fair value of these arrangements are recorded as a reduction of Net sales. |
COST OF GOODS SOLD | Costs of Goods Sold and Selling, General and Administrative Expenses In addition to the cost of product, cost of goods sold includes expenses related to the merchandising, design, and procurement of product. Also included are outbound shipping costs incurred in the eCommerce channel related to delivery of product to the end consumer. Generally, all other expenses, excluding interest and income taxes, are included in selling, general and administrative ("SG&A") expenses, including distribution expenses. Distribution expenses that are included in SG&A primarily consist of payments to third-party shippers and handling costs to process product through our distribution facilities and delivery to our wholesale customers and to our retail stores. Distribution expenses included in SG&A totaled $188.9 million , $173.5 million , and $153.7 million for fiscal years 2018 , 2017 , and 2016 , respectively. Definitions of gross profit and gross margin very across the industry and as such, our metrics may not be comparable to other companies. |
ACCOUNTING FOR SHIPPING AND HANDLING FEES AND COSTS | |
ROYALTIES AND LICENSE FEES | Income From Royalties and License Fees The Company licenses the Carter's , Child of Mine, Just One You , Precious Firsts , Precious Baby , Carter's little baby basics, and Simple Joys trademarks to other companies for use on baby and young children's products, including bedding, outerwear, sleepwear, shoes, underwear, socks, room décor, toys, stationery, hair accessories, furniture, and related products. These royalties are recorded as earned, based upon the sales of licensed products by licensees and reported as royalty income in the statements of operations. |
ADVERTISING EXPENSES | Advertising Expenses Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs and eCommerce site banners, are expensed when the advertising event takes place. |
STOCK-BASED COMPENSATION ARRANGEMENTS | Stock-Based Compensation Arrangements The Company recognizes the cost resulting from all stock-based payment transactions in the financial statements at grant date fair value. Stock-based compensation expense is recognized over the requisite service period, net of estimated forfeitures. During the requisite service period, the Company also recognizes a deferred income tax benefit for the expense recognized for U.S. GAAP. At time of subsequent vesting, exercise, forfeiture, or expiration of an award, the difference between the Company's actual income tax deduction, if any, and the previously accrued income tax benefit is recognized in income tax expense/benefit during the current period. Stock Options The Company determines the fair value of stock options using the Black-Scholes option pricing model, which requires the use of the following subjective assumptions: • Volatility - This is a measure of the amount by which a stock price has fluctuated or is expected to fluctuate. The Company uses actual monthly historical changes in the market value of its stock covering the expected life of options being valued. An increase in the expected volatility will increase the fair value of the stock option and related compensation expense. • Risk-free interest rate - This is the U.S. Treasury rate as of the grant date having a term equal to the expected term of the stock option. An increase in the risk-free interest rate will increase the fair value of the stock option and related compensation expense. • Expected term - This is the period of time over which the stock options granted are expected to remain outstanding and is based on historical experience and estimated future exercise behavior. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. An increase in the expected term will increase the fair value of the stock option and the related compensation expense. • Dividend yield - The Company estimates a dividend yield based on the current dividend amount as a percentage of the current stock price. An increase in the dividend yield will decrease the fair value of the stock option and the related compensation expenses. • Forfeitures - The Company estimates forfeitures of stock-based awards based on historical experience and expected future activity. Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation expense and the related amount recognized in the consolidated statements of operations. Time-Based Restricted Stock Awards The fair value of time-based restricted stock awards is determined based on the quoted closing price of the Company's common stock on the date of grant and is recognized as compensation expense over the vesting term of the awards, net of estimated forfeitures. Performance-Based Restricted Stock Awards The Company accounts for its performance-based restricted stock awards based on the quoted closing price of the Company's common stock on the date of grant and records stock-based compensation expense over the vesting term of the awards based on the probability that the performance criteria will be achieved, net of estimated forfeitures. The Company reassesses the probability of vesting at each reporting period and adjusts stock-based compensation expense based on its probability assessment. Stock Awards The fair value of stock granted to non-management board members is determined based on the quoted closing price of the Company's common stock on the date of grant. The Company records the stock-based compensation expense immediately as there are no vesting terms. |
INCOME TAXES | Income Taxes The accompanying consolidated financial statements reflect current and deferred tax provisions, in accordance with ASC 740, Income Taxes . The deferred tax provision is determined under the liability method. Deferred tax assets and liabilities are recognized based on differences between the book and tax bases of assets and liabilities using presently enacted tax rates. Valuation allowances are established when it is "more likely than not" that a deferred tax asset will not be recovered. The provision for income taxes is the sum of the amount of income taxes paid or payable for the year as determined by applying the provisions of enacted tax laws to the taxable income for that year, the net change during the year in deferred tax assets and liabilities, and the net change during the year in any valuation allowances. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. A company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. If it is more likely than not that a tax position would not be sustained, then no tax benefit would be recognized. Where applicable, associated interest and penalties are also recorded. Interest is recorded as a component of interest expense and penalties, if any, are recorded within the provision for incomes taxes in the consolidated statements of operations and are classified on the consolidated balance sheets with the related liability for uncertain tax contingency liabilities. For current and deferred tax provisions, ASC 740 requires an entity to account for the effects of new income tax legislation in the same reporting period that the tax legislation is enacted. Recent tax law changes known as the U.S. Tax Cuts and Jobs Act of 2017 (the "2017 Act") were enacted in the United States on December 22, 2017. The 2017 Act, among other things, reduces the United States federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax ("toll tax") on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. For the 2017 Act, SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , permitted the Company to calculate and recognize provisional estimates during the period of enactment (fourth quarter of fiscal 2017) for the accounting of the 2017 Act. Subsequent adjustments to provisional estimates were reflected in the Company's income tax provisions/benefits during fiscal 2018. See Note 12 , Income Taxes , to the consolidated financial statements. |
EARNINGS PER SHARE | Earnings Per Share The Company calculates basic and diluted net income per common share under the two-class method for unvested share-based payment awards that contain participating rights to dividends or dividend equivalents (whether paid or unpaid). Basic net income per share is calculated by dividing net income for the period by the weighted-average common shares outstanding for the period. Diluted net income per share includes the effect of dilutive instruments and uses the average share price for the period in determining the number of shares that are to be added to the weighted-average number of shares outstanding. |
OPEN MARKET REPURCHASES OF COMMON STOCK | Open Market Repurchases of Common Stock Shares of the Company's common stock that are repurchased by the Company through open market transactions are retired. Through the end of fiscal 2018 , all such open market repurchases have been at prices that exceeded the par value of the repurchased common stock, and the amounts of the purchase prices that exceeded par value were charged to additional paid-in capital or to retained earnings if the balance in additional paid-in capital was not sufficient. |
EMPLOYEE BENEFIT PLANS | Employee Benefit Plans The Company has several defined benefit plans. Various actuarial methods and assumptions are used in determining net pension and post-retirement costs and obligations. Key assumptions include the discount rate used to determine the present value of future benefits and the expected long-term rate of return on plan assets. The over-funded or under-funded status of the defined benefit plans is recorded as an asset or liability on the consolidated balance sheet. The gains or losses that arise during the period are recognized as a component of comprehensive income, net of tax. These costs are then subsequently recognized as components of net periodic benefit cost in the consolidated statements of operations. Under the provisions of ASU No. 2015-04, Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets , the Company is permitted to use December 31 of each year, as opposed to the Company's last day of each fiscal year, as an alternate measurement date for its defined benefit plans. |
FACILITY CLOSURE AND OFFICE CONSOLIDATION | Facility Closure and Severance Costs The Company records severance costs when the appropriate notifications have been made to affected employees or when the decision is made, if the benefits are contractual. When employees are required to work for a period before termination, the severance costs are recognized over the required service period. Relocation and recruitment costs are expensed as incurred. For operating leases, lease termination costs are recognized at fair value at the date the Company ceases to use the leased property, and adjusted for the effects of deferred items recognized under the lease and reduced by estimated sub-lease rental income. Useful lives assigned to fixed assets at the facility to be closed are revised based on the specifics of the exit plan, resulting in accelerated depreciation expense. |
LEASES AND DEFERRED RENT | Leases and Deferred Rent The Company enters into a significant number of lease transactions related to properties for its retail stores in addition to leases for offices, distribution facilities, and other uses. The lease agreements may contain provisions related to allowances for property improvements, rent escalation, and free rent periods. Substantially all of these leases are classified as operating leases for accounting purposes. For property improvement allowances, the Company records a deferred lease credit on the consolidated balance sheet and amortizes the deferred lease credit as a reduction of rent expense over the terms of the applicable lease. For scheduled rent escalation clauses during the lease term, the Company records rent expense on a straight-line basis over the term of the lease. The difference between the rent expense and the amount payable under the lease is included within the Company's liabilities on the consolidated balance sheet. The term of the lease over which the Company amortizes allowances and minimum rental expenses on a straight-line basis begins on the date of initial possession, which is generally when the Company enters the space and/or begins construction. Where leases provide for contingent rents, which are generally determined as a percentage of gross sales, the Company records additional rent expense when management determines that achieving the specified level of revenue during the fiscal year is probable. Amounts accrued for contingent rent are included within the Company's liabilities on the consolidated balance sheet. |
SEASONALITY | The Company experiences seasonal fluctuations in its sales and profitability due to the timing of certain holidays and key retail shopping periods, typically resulting in lower sales and gross profit in the first half of its fiscal year. Accordingly, the Company's results of operations during the first half of the year may not be indicative of the results for the full year. |
RECENT ACCOUNTING PRONOUNCEMENTS | Adopted in Fiscal 2018 Revenue from Contracts with Customers (ASC No. 606) At the beginning of fiscal 2018, the Company adopted the provisions of ASC No. 606, Revenue from Contracts with Customers, and all related amendments (“ASC 606”) using the full retrospective adoption method. Refer to Note 3 , Revenue Recognition, for additional information. Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), was effective for the Company at the beginning of its fiscal 2018. ASC 606 clarifies the principles for recognizing revenue and is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Further, the guidance requires improved and additional disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Beginning in the first quarter of fiscal 2018, the Company applied the provisions of ASC 606 retrospectively to each prior reporting period presented for fiscal 2017 and fiscal 2016. For all periods prior to fiscal 2016, the adoption of ASC 606 is reported as an adjustment to opening retained earnings at the beginning of fiscal 2016 of approximately $0.6 million . The adoption of ASC 606, including any of the policy elections required or permitted by ASC 606, had no material effect on the Company's consolidated financial position, results of operations, cash flows, processes, systems, or controls. Classification of Costs Related to Defined Benefit Pension and Other Post-retirement Benefit Plans (ASU 2017-07) At the beginning of fiscal 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost ("ASU 2017-07"). ASU 2017-07 changes how employers that sponsor defined benefit pension and/or other post-retirement benefit plans present the net periodic benefit costs in the statement of operations. Under this new guidance, an employer's statement of operations presents service cost arising in the current period in the same statement line item as other employee compensation. However, all other components of current period costs related to defined benefit plans, such as prior service costs and actuarial gains and losses, are presented on the statement of operations on a line item outside (or below) operating income. ASU 2017-07 affects only the classification of certain costs on the statement of operations, not the determination of costs. Net periodic pension costs related to the Company's frozen defined benefit pension plan and post-retirement medical benefit plan were not material for fiscal 2018, or prior periods. Prior period results have not been reclassified on the Company's statement of operations due to materiality. Modifications to Share-based Compensation Awards (ASU 2017-09) At the beginning of fiscal 2018, the Company adopted ASU No. 2017-09, Compensation-Stock Compensation Topic 718-Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 clarifies when changes to the terms and conditions of share-based payment awards must be accounted for as modifications. Entities apply the modification accounting guidance if the value, vesting conditions, or classification of an award changes. The Company has not modified any share-based payment awards. If the Company modifies share-based payment awards in the future, it will apply the provisions of ASU 2017-09. Definition of a Business (ASU 2017-01) At the beginning of fiscal 2018, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 assists entities in determining if acquired assets constitute the acquisition of a business or the acquisition of assets for accounting and reporting purposes. This distinction is important because goodwill can only be recognized in an acquisition of a business. Prior to ASU 2017-01, if revenues were generated immediately before and after a transaction, the acquisition was typically considered a business. Under ASU 2017-01, entities are required to further assess the substance of the processes they acquire. If the Company commences or completes an acquisition in future periods, it will apply the provisions of ASU 2017-01. Statement of Cash Flows (ASU 2016-15) At the beginning of fiscal 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"). ASU 2016-15 represents a consensus of the FASB’s Emerging Issues Task Force on eight separate issues that, if present, can impact classifications on the statement of cash flows. The guidance requires application using a retrospective transition method. The adoption of ASU 2016-15 only impacted the classification of certain insurance proceeds on the Company's consolidated statement of cash flows for fiscal 2018. To Be Adopted After Fiscal 2018 Leases (ASU 2016-02) In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, Leases-Topic 842, which has been codified in ASC 842, Leases ("ASC 842"). Under this new guidance, as a lessee, certain of the Company’s leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of operations as expense is incurred. Upon adoption of the standard, the Company will be required to record substantially all leases on the balance sheet as a right-of-use ("ROU") asset and a lease liability. The Company expects to utilize the related package of practical expedients permitted by the transition guidance in ASU 2016-02, which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company expects to recognize lease liabilities for its operating leases totaling between $800 million and $900 million upon adoption. The initial ROU assets recognized will be equal to the initial operating lease liabilities, adjusted for the balance on adoption date of prepaid and accrued rent, lease incentives and unamortized initial direct costs. The Company currently expects to recognize ROU assets totaling between $650 million and $750 million upon adoption. The Company does not expect adoption of the standard to have a material impact on the Company’s historical capital leases, which will be presented as finance leases under ASU 2016-02. Additionally, the Company does not believe adoption of this standard will have a material effect on the Company's consolidated results of operations or cash flows. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02) In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). ASU 2018-02 permits a company to reclassify the income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") on items within accumulated other comprehensive income or loss ("AOCI-L") to retained earnings. Because most items that are charged to AOCI-L are recorded net of applicable income taxes, the subsequent reclassification of these items from AOCI-L to the statement of operations will be at different income tax rates due to the 2017 Tax Act, thereby leaving a "stranded" tax balance within AOCI-L. ASU 2018-02 will allow a company to transfer these "stranded" amounts from AOCI-L to retained earnings. ASU 2018-02 will be effective for the Company at the beginning of fiscal 2019, with early adoption permitted. The Company has amounts in its AOCI-L for defined benefit retirement plans that were recorded net of applicable income taxes, thus the Company anticipates the transfer of "stranded" tax amounts from its AOCI-L to retained earnings upon the adoption of ASU 2018-02. The believes the effect of the adoption of ASU 2018-02 will not be material to the Company's financial position. Further, the Company does not believe the adoption will have an effect on the Company's consolidated results of operations or cash flows. Credit Losses (ASU 2016-13) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . This new guidance will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 will replace the current "incurred loss" model with an "expected loss" model. Under the "incurred loss" model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that a loss is probable (i.e., that it has been "incurred"). Under the "expected loss" model, an entity will recognize a loss (or allowance) upon initial recognition of the asset that reflects all future events that will lead to a loss being realized, regardless of whether it is probable that the future event will occur. The "incurred loss" model considers past events and current conditions, while the "expected loss" model includes expectations for the future which have yet to occur. ASU 2016-13 is effective for public companies for fiscal years beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018, including interim periods therein. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the potential impact that ASU 2016-13 may have on the timing of recognizing future provisions for expected losses on the Company's accounts receivable. Goodwill Impairment Testing (ASU 2017-04) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") . ASU 2017-04 will eliminate the requirement to calculate the implied fair value of goodwill (step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current step 1). Any impairment charge will be limited to the amount of goodwill allocated to an impacted reporting unit. ASU 2017-04 will not change the current guidance for completing Step 1 of the goodwill impairment test, and an entity will still be able to perform the current optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. Upon adoption, ASU 2017-04 will be applied prospectively. Adoption for public companies is effective for annual and interim impairment tests performed in periods after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The impact that ASU 2017-04 may have on the Company's financial condition or results of operations will depend on the circumstances of any goodwill impairment event that may occur after adoption. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
ASC 606 Initial Application | The effects of retrospective adoption on the Company's consolidated Statements of Operations were as follows: For the fiscal year ended (dollars in thousands, except per share data) 2017 2016 Net sales $ 92 $ (637 ) Cost of goods sold $ 52 $ (7 ) Income before income taxes $ 40 $ (630 ) Net income $ 84 $ (397 ) Basic net income per common share $ — $ (0.01 ) Diluted net income per common share $ — $ — The cumulative effect to the Company’s retained earnings at January 2, 2016 was an after-tax increase of approximately $0.6 million. The effects of adoption of ASC 606 on the Company’s consolidated balance sheet at December 30, 2017 were as follows: (dollars in thousands) As Previously Reported ASC 606 Adjustments As Amended for ASC 606 ASSETS Prepaid expenses and other current assets $ 49,892 $ 3,043 (1) $ 52,935 Total current assets $ 1,017,669 $ 3,043 $ 1,020,712 Total assets $ 2,067,999 $ 3,043 $ 2,071,042 LIABILITIES AND STOCKHOLDERS' EQUITY Other current liabilities $ 146,510 $ 2,624 (2) $ 149,134 Total current liabilities $ 328,624 $ 2,624 $ 331,248 Deferred income taxes $ 84,848 $ 96 $ 84,944 Total liabilities $ 1,210,906 $ 2,720 $ 1,213,626 Retained earnings $ 885,714 $ 323 (3) $ 886,037 Total stockholder's equity $ 857,093 $ 323 $ 857,416 Total liabilities and stockholders' equity $ 2,067,999 $ 3,043 $ 2,071,042 (1) Reclassification of estimated inventory expected to be returned by customers through future sales refund transactions. This amount was reclassified from the returns reserve (current liability) to a current asset. Prior to the Company's adoption of ASC 606, the Company's returns reserve (current liability) was reported net of the estimated inventory expected to be returned by customers through sales refund transactions. (2) Amount includes a reclassification of approximately $3.0 million for estimated inventory expected to be returned by customers, partially offset by a reclassification of approximately $0.4 million for gift card liabilities. (3) Cumulative impact of approximately $0.6 million for after-tax adjustments to retained earnings at the beginning of fiscal 2016, offset by ASC 606 effects on fiscal 2017 and fiscal 2016 results of operations. |
Disaggregation of Revenue | Disaggregation of Revenue The Company sells its products directly to consumers ("direct-to-consumer") and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from its licensees. Disaggregated revenues from these sources for fiscal years 2018 , 2017 , and 2016 were as follows: Fiscal year ended December 29, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,180,687 $ 163,637 $ 1,344,324 Direct-to-consumer 1,851,193 — 266,752 $ 2,117,945 $ 1,851,193 $ 1,180,687 $ 430,389 $ 3,462,269 Royalty income $ 12,877 $ 22,511 $ 3,542 $ 38,930 Fiscal year ended December 30, 2017 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,209,663 $ 160,850 $ 1,370,513 Direct-to-consumer 1,775,378 — 254,613 $ 2,029,991 $ 1,775,378 $ 1,209,663 $ 415,463 $ 3,400,504 Royalty income $ 15,541 $ 23,767 $ 3,873 $ 43,181 Fiscal year ended December 31, 2016 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,178,034 $ 133,681 $ 1,311,715 Direct-to-consumer 1,655,784 — 231,044 $ 1,886,828 $ 1,655,784 $ 1,178,034 $ 364,725 $ 3,198,543 Royalty income $ 12,318 $ 25,000 $ 5,497 $ 42,815 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) December 29, 2018 December 30, 2017 Trade receivables from wholesale customers, net $ 244,258 $ 229,968 Royalties receivable 9,279 9,818 Tenant allowances and other receivables 16,588 14,511 Total gross receivables $ 270,125 $ 254,297 Less: Wholesale accounts receivable reserves (11,866 ) (13,736 ) Accounts receivable, net $ 258,259 $ 240,561 |
Contract Liabilities | Contract Assets and Liabilities The Company's contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) December 29, 2018 December 30, 2017 Contract liabilities-current: Unredeemed gift cards $ 14,471 $ 11,945 Unredeemed customer loyalty rewards 7,764 7,355 Total contract liabilities-current (*) $ 22,235 $ 19,300 * Included with Other current liabilities on the Company's consolidated balance sheet. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment | Property, plant, and equipment, net consists of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Fixtures, equipment, computer hardware and software $ 425,686 $ 430,156 Land, building, and leasehold improvements 348,131 336,981 Marketing fixtures 7,001 7,602 Construction in progress 18,517 7,358 799,335 782,097 Accumulated depreciation and amortization (448,898 ) (404,173 ) Total $ 350,437 $ 377,924 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense 2019 $ 3,732 2020 $ 3,732 2021 $ 3,732 2022 $ 3,732 2023 $ 3,690 |
Intangible assets table | The following table summarizes the Company’s goodwill and other intangible assets at the end of the fiscal year: December 29, 2018 December 30, 2017 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s goodwill (1) Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Canada goodwill (2) Indefinite 38,869 — 38,869 42,223 — 42,223 Skip Hop goodwill (3) Indefinite 45,960 — 45,960 45,997 — 45,997 Carter's Mexico goodwill (4) Indefinite 5,702 — 5,702 5,634 — 5,634 Total goodwill $ 227,101 $ — $ 227,101 $ 230,424 $ — $ 230,424 Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 56,800 — 56,800 Finite-life tradenames 5 - 20 years 3,911 752 3,159 3,550 532 3,018 Total tradenames, net $ 366,444 $ 752 $ 365,692 $ 366,083 $ 532 $ 365,551 Skip Hop customer relationships 15 years $ 47,300 $ 5,480 $ 41,820 $ 47,300 $ 2,304 $ 44,996 Carter's Mexico customer relationships 10 years 3,146 455 2,691 3,135 135 3,000 Total customer relationships, net $ 50,446 $ 5,935 $ 44,511 $ 50,435 $ 2,439 $ 47,996 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income is summarized as follows: (dollars in thousands) Pension liability adjustments Post-retirement liability adjustments Cumulative translation adjustments Accumulated other comprehensive (loss) income Balance at January 2, 2016 $ (8,185 ) $ 1,404 $ (29,586 ) $ (36,367 ) Fiscal year 2016 change (666 ) 331 1,962 1,627 Balance at December 31, 2016 (8,851 ) 1,735 (27,624 ) (34,740 ) Fiscal year 2017 change (430 ) (262 ) 6,339 5,647 Balance at December 30, 2017 (9,281 ) 1,473 (21,285 ) (29,093 ) Fiscal year 2018 change (281 ) 214 (11,679 ) (11,746 ) Balance at December 29, 2018 $ (9,562 ) $ 1,687 $ (32,964 ) $ (40,839 ) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Senior notes at amounts repayable $ 400,000 $ 400,000 Less: unamortized issuance-related costs for senior notes (2,736 ) (3,694 ) Senior notes, net $ 397,264 $ 396,306 Secured revolving credit facility 196,000 221,000 Total long-term debt, net $ 593,264 $ 617,306 |
Schedule of redemption price applicable where redemption occurs | The redemption price is applicable when the redemption occurs during the twelve-month period beginning on August 15 of each of the years indicated is as follows: Year Percentage 2018 101.31 % 2019 and thereafter 100.00 % |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Open Market Repurchases | Open-market repurchases of our common stock during fiscal years 2018 , 2017 and 2016 were as follows: Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Number of shares repurchased 1,879,529 2,103,401 3,049,381 Aggregate cost of shares repurchased (dollars in thousands) $ 193,028 $ 188,762 $ 300,445 Average price per share $ 102.70 $ 89.74 $ 98.53 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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: For the fiscal years ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Stock options $ 4,788 $ 4,244 $ 4,237 Restricted stock: Time-based awards 7,938 7,532 7,451 Performance-based awards 744 4,602 3,974 Stock awards 1,203 1,171 1,185 Total $ 14,673 $ 17,549 $ 16,847 The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During fiscal 2018 , the Company revised the estimated achievement of performance targets related to certain performance-based grants resulting in a $3.9 million reduction to stock compensation expense. |
Summary of stock option activity | Changes in the Company's stock options for the fiscal year ended December 29, 2018 were as follows: Number of shares Weighted- average exercise price Weighted-average remaining contractual terms (years) Aggregate intrinsic value (in thousands) Outstanding, December 30, 2017 1,494,223 $61.76 Granted 255,532 $118.43 Exercised (261,113 ) $40.58 Forfeited (40,533 ) $98.01 Expired (968 ) $95.10 Outstanding, December 29, 2018 1,447,141 $74.55 5.96 $ 21,714 Vested and Expected to Vest, December 29, 2018 1,377,440 $73.10 5.82 $ 21,714 Exercisable, December 29, 2018 851,264 $57.33 4.31 $ 21,714 |
Assumptions used for grants and summary of stock options and restricted stock activity | The table below presents the weighted-average assumptions used to calculate the fair value of options granted in each of the respective fiscal years: For the fiscal years ended December 29, 2018 December 30, 2017 December 31, 2016 Expected volatility 22.93 % 26.20 % 26.95 % Risk-free interest rate 2.75 % 2.06 % 1.33 % Expected term (years) 6.0 6.0 6.0 Dividend yield 1.47 % 1.77 % 1.45 % Weighted average fair value of options granted $ 27.36 $ 19.57 $ 21.41 |
Summary of restricted stock award activity | The following table summarizes activity related to all restricted stock awards during the fiscal year ended December 29, 2018 : Restricted stock awards Weighted-average grant-date fair value Outstanding, December 30, 2017 397,848 $ 85.44 Granted 143,085 $ 118.03 Vested (151,321 ) $ 84.56 Forfeited (15,604 ) $ 97.83 Outstanding, December 29, 2018 374,008 $ 97.57 |
Summary of issued shares of common stock to non-management board members | Fiscal year Number of shares granted Weighted-average fair value per share 2016 53,070 $ 90.66 2017 60,952 $ 83.84 2018 45,625 $ 120.25 During fiscal years 2018 , 2017 , and 2016 , such awards were as follows: Fiscal year Number of shares issued Fair value per share Aggregate value (in thousands) 2016 12,758 $101.10 $1,290 2017 13,860 $84.46 $1,171 2018 10,971 $109.67 $1,203 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Reconciliation of changes in the projected pension benefit obligation and plan assets | A reconciliation of changes in the projected pension benefit obligation and plan assets is as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 66,747 $ 62,427 Interest cost 2,287 2,446 Actuarial (gain) loss (4,371 ) 4,269 Benefits paid (2,366 ) (2,395 ) Projected benefit obligation at end of year $ 62,297 $ 66,747 Change in plan assets: Fair value of plan assets at beginning of year $ 54,437 $ 51,213 Actual return on plan assets (2,507 ) 5,619 Employer contribution 6,000 — Benefits paid (2,366 ) (2,395 ) Fair value of plan assets at end of year $ 55,564 $ 54,437 Unfunded status $ 6,733 $ 12,310 |
Components of post retirement benefit expense and pension expense | The components of net periodic post-retirement cost (benefit) recognized in the statement of operations and changes recognized in other comprehensive income were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Recognized in the statement of operations: Service cost – benefits attributed to service during the period $ 32 $ 30 $ 123 Interest cost on accumulated post-retirement benefit obligation 123 137 177 Amortization net actuarial gain (*) (289 ) (306 ) (198 ) Net periodic post-retirement (benefit) cost $ (134 ) $ (139 ) $ 102 Changes recognized in other comprehensive income: Net loss (gain) arising during the fiscal year $ (573 ) $ 26 $ (740 ) Prior service cost — — 11 Amortization of net gain (*) 289 306 198 Total changes recognized in other comprehensive income $ (284 ) $ 332 $ (531 ) Total net periodic (benefit) cost and changes recognized in other comprehensive income $ (418 ) $ 193 $ (429 ) (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2019 , approximately $0.4 million is expected to be reclassified from accumulated other comprehensive loss as a credit to periodic net periodic pension cost. The components of net periodic pension cost recognized in the statement of operations and changes recognized in other comprehensive income were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Recognized in the statement of operations: Interest cost $ 2,287 $ 2,446 $ 2,515 Expected return on plan assets (2,934 ) (2,601 ) (2,701 ) Recognized actuarial loss (1) 709 681 578 Net periodic pension cost $ 62 $ 526 $ 392 Changes recognized in other comprehensive income: Net loss arising during the fiscal year $ 1,070 $ 1,251 $ 1,644 Amortization of net loss (1) (709 ) (681 ) (578 ) Total changes recognized in other comprehensive income $ 361 $ 570 $ 1,066 Total net periodic cost and changes recognized in other comprehensive income $ 423 $ 1,096 $ 1,458 (1) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2019 , approximately $0.8 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic pension cost. |
Schedule of assumptions used in actuarial computations | The actuarial computations utilized the following assumptions, using year-end measurement dates: Benefit obligation 2018 2017 Discount rate 4.00% 3.50% Net periodic pension cost 2018 2017 2016 Discount rate 3.50% 4.00% 4.25% Expected long-term rate of return on assets 6.25% 6.00% 6.00% The actuarial computations utilized the following assumptions, using year-end measurement dates: Benefit obligation 2018 2017 Discount rate 4.00% 3.25% Net periodic pension cost 2018 2017 2016 Discount rate 3.25% 3.50% 3.75% |
Expected benefit payments for defined benefit pension plans for the next ten fiscal years | The Company currently expects benefit payments for its defined benefit pension plans as follows for the next ten fiscal years: (dollars in thousands) 2019 $ 3,020 2020 $ 2,600 2021 $ 2,660 2022 $ 2,860 2023 $ 2,940 2024-2028 $ 17,850 |
Fair value of the Company's pension plan assets by category | The fair value of the Company's pension plan assets at December 29, 2018 and December 30, 2017 , by asset category, were as follows: (dollars in thousands) December 29, 2018 December 30, 2017 Asset Category Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash equivalents $ 550 $ 550 $ — $ 539 $ 539 $ — Equity Securities: U.S. Large-Cap blend (1) 7,693 7,693 — 7,418 7,418 — U.S. Large-Cap growth 3,478 3,478 — 3,331 3,331 — U.S. Mid-Cap growth 3,355 3,355 — 3,228 3,228 — U.S. Small-Cap blend 2,224 2,224 — 2,147 2,147 — International blend 8,302 8,302 — 8,142 8,142 — Fixed income securities: Corporate bonds (2) 27,247 27,006 241 26,888 26,480 408 Real estate (3) 2,715 2,715 — 2,744 2,744 — $ 55,564 $ 55,323 $ 241 $ 54,437 $ 54,029 $ 408 (1) This category comprises low-cost equity index funds not actively managed that track the Standard & Poor's 500 Index. (2) This category invests in both U.S. Treasuries and mid-term corporate debt from U.S. issuers from diverse industries. (3) This category represents an investment in a mutual fund that invests primarily in real estate securities, including common stocks, preferred stock and other equity securities issued by real estate companies. |
Reconciliation of accumulated post retirement benefit obligation | The following is a reconciliation of the accumulated post-retirement benefit obligation ("APBO") under this plan: For the fiscal years ended (dollars in thousands) December 29, 2018 December 30, 2017 APBO at beginning of fiscal year $ 3,969 $ 4,125 Service cost 32 30 Interest cost 123 137 Actuarial loss (gain) (573 ) 26 Plan participants' contribution 1 6 Benefits paid (324 ) (355 ) APBO at end of fiscal year $ 3,228 $ 3,969 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | The provision for income taxes consisted of the following: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Current tax provision: Federal $ 48,129 $ 117,676 $ 113,326 State 9,437 11,368 11,407 Foreign 17,359 14,116 11,937 Total current provision $ 74,925 $ 143,160 $ 136,670 Deferred tax provision (benefit): Federal $ (760 ) $ (55,191 ) $ 1,215 State 140 337 332 Foreign (398 ) (82 ) (486 ) Total deferred provision (1,018 ) (54,936 ) 1,061 Total provision $ 73,907 $ 88,224 $ 137,731 The components of income before income taxes were as follows: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ 260,722 $ 325,620 $ 344,674 Foreign 95,253 65,452 50,766 Total $ 355,975 $ 391,072 $ 395,440 |
Federal statutory tax rate reconciliation | The difference between the Company's effective income tax rate and the federal statutory tax rate is reconciled below: For the fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 2.8 % 2.1 % 2.3 % Impact of foreign operations (1.5 )% (2.7 )% (2.1 )% Settlement of uncertain tax positions (0.4 )% (0.3 )% (0.4 )% Benefit from stock-based compensation (1.1 )% (1.3 )% — % Imposition of transition tax on foreign subsidiaries — % 2.7 % — % Revaluation of deferred taxes — % (12.9 )% — % Total 20.8 % 22.6 % 34.8 % |
Components of deferred tax assets and liabilities | The following table reflects the Company’s calculation of the components of deferred assets and liabilities as of December 29, 2018 and December 30, 2017 . Certain previously reported amounts as of December 30, 2017 were revised in the table below. The revisions were not material to the previously issued financial statements. (dollars in thousands) December 29, 2018 December 30, 2017 Deferred tax assets: Assets (Liabilities) Accounts receivable allowance $ 3,674 $ 3,632 Inventory 7,785 6,759 Accrued liabilities 10,672 13,174 Equity-based compensation 5,278 6,796 Deferred employee benefits 6,425 8,112 Deferred rent 33,761 34,422 Other 3,007 2,335 Total deferred tax assets 70,602 75,230 Deferred tax liabilities: Depreciation (62,898 ) (63,763 ) Tradename and licensing agreements (89,194 ) (89,142 ) Other (3,774 ) (5,328 ) Total deferred tax liabilities (155,866 ) (158,233 ) Net deferred tax asset (liability) $ (85,264 ) $ (83,003 ) |
Net deferred tax liability | (dollars in thousands) December 29, 2018 December 30, 2017 Assets (Liabilities) Deferred tax assets (*) $ 2,083 $ 1,941 Deferred tax liabilities (87,347 ) (84,944 ) Net deferred tax asset (liability) $ (85,264 ) $ (83,003 ) |
Unrecognized tax benefits | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (dollars in thousands) Balance at January 2, 2016 $ 9,415 Additions based on tax positions related to fiscal 2016 2,849 Reductions for prior year tax positions (39 ) Reductions for lapse of statute of limitations (995 ) Reductions for prior year tax settlements (693 ) Balance at December 31, 2016 $ 10,537 Additions based on tax positions related to fiscal 2017 3,380 Reductions for prior year tax positions (120 ) Reductions for lapse of statute of limitations (1,604 ) Balance at December 30, 2017 $ 12,193 Additions based on tax positions related to fiscal 2018 3,350 Additions for prior year tax positions 241 Reductions for lapse of statute of limitations (1,867 ) Balance at December 29, 2018 $ 13,917 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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: For the fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 46,160,935 47,593,211 49,917,858 Dilutive effect of equity awards 487,485 552,864 457,849 Diluted number of common and common equivalent shares outstanding 46,648,420 48,146,075 50,375,707 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 282,068 $ 302,848 $ 257,709 Income allocated to participating securities (2,148 ) (2,407 ) (2,046 ) Net income available to common shareholders $ 279,920 $ 300,441 $ 255,663 Basic net income per common share $ 6.06 $ 6.31 $ 5.12 Diluted net income per common share: Net income $ 282,068 $ 302,848 $ 257,709 Income allocated to participating securities (2,132 ) (2,386 ) (2,032 ) Net income available to common shareholders $ 279,936 $ 300,462 $ 255,677 Diluted net income per common share $ 6.00 $ 6.24 $ 5.08 Anti-dilutive shares excluded from dilutive earnings per share calculations (1) 289,839 629,944 247,460 (1) The volume of antidilutive shares is, in part, due to the related unamortized compensation costs. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The table below presents certain segment information for the periods indicated For the fiscal year ended (dollars in thousands) December 29, 2018 % of December 30, 2017 % of December 31, 2016 % of Total Net sales : U.S. Retail $ 1,851,193 53.5 % $ 1,775,378 52.2 % $ 1,655,784 51.8 % U.S. Wholesale 1,180,687 34.1 % 1,209,663 35.6 % 1,178,034 36.8 % International 430,389 12.4 % 415,463 12.2 % 364,725 11.4 % Total net sales $ 3,462,269 100.0 % $ 3,400,504 100.0 % $ 3,198,543 100.0 % Operating income : % of % of % of U.S. Retail (1)(2)(4) $ 224,784 12.1 % $ 215,640 12.1 % $ 211,951 12.8 % U.S. Wholesale (3)(4) 224,194 19.0 % 252,090 20.8 % 260,953 22.2 % International (4)(5) 39,253 9.1 % 46,426 11.2 % 59,194 16.2 % Corporate expenses (6)(7) (96,798 ) (94,549 ) (106,170 ) Total operating income $ 391,433 11.3 % $ 419,607 12.3 % $ 425,928 13.3 % (1) Fiscal 2018 includes insurance recovery of approximately $0.4 million associated with unusual storm-related store closures in 2017. (2) Fiscal 2017 includes approximately $2.7 million of expenses related to store restructuring and approximately $12.7 million for provisions for special employee compensation. (3) Includes approximately $12.8 million of charges, partially offset by a $1.9 million recovery claim settlement, related to a customer bankruptcy for fiscal 2018. Fiscal 2017 includes approximately $3.3 million for provisions for special employee compensation. (4) Includes $1.2 million of certain costs related to inventory acquired from Skip Hop in operating income between U.S. Wholesale, U.S. Retail, and International for fiscal 2017. (5) Includes international licensing income. Fiscal 2018 includes approximately $5.3 million in costs associated with changes to the Company's business model in China, which includes inventory and severance charges. Fiscal 2017 includes approximately $2.3 million for provisions for special employee compensation. (6) Includes 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. (7) Includes the following charges for fiscal 2017 and fiscal 2016: For the fiscal year ended (dollars in millions) December 30, 2017 December 31, 2016 Provisions for special employee compensation $ 2.9 $ — Amortization of H.W. Carter and Sons tradenames $ — $ 1.7 Adjustment to Skip Hop contingent consideration $ (3.6 ) $ — Direct sourcing initiative $ 0.3 $ 0.7 Acquisition-related costs $ 3.4 $ 2.4 |
Inventory, net, by segment | The table below represents inventory by segment: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 U.S. Wholesale (*) $ 414,174 $ 389,484 U.S. Retail 96,241 93,404 International 63,811 65,834 Total $ 574,226 $ 548,722 |
Consolidated Net Sales by Product | The table below represents consolidated net sales by product: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 December 31, 2016 Baby $ 1,239,009 $ 1,294,404 $ 1,241,452 Playclothes 1,303,610 1,239,546 1,214,995 Sleepwear 431,961 426,703 407,078 Other(*) 487,689 439,851 335,018 Total net sales $ 3,462,269 $ 3,400,504 $ 3,198,543 (*) Other product offerings include bedding, outwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories. |
Property, plant, and equipment, net, by geographic area | The following represents property, plant, and equipment, net, by geographic area: For the fiscal year ended (dollars in thousands) December 29, 2018 December 30, 2017 United States $ 314,679 $ 337,369 International 35,758 40,555 Total $ 350,437 $ 377,924 |
OTHER CURRENT AND LONG-TERM L_2
OTHER CURRENT AND LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities that exceeded five percent of total current liabilities (at the end of either fiscal year) consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Accrued bonuses and incentive compensation $ 8,409 $ 27,566 Income taxes payable 17,415 16,252 Accrued employee benefits 16,421 21,735 Accrued and deferred rent 19,120 18,213 |
Schedule of other long-term liabilities | Other long-term liabilities that exceeded five percent of total liabilities (at the end of either fiscal year) consisted of the following: (dollars in thousands) December 29, 2018 December 30, 2017 Deferred lease incentives $ 72,345 $ 75,104 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Leases [Abstract] | |
Minimum annual rental commitments under current operating leases | Minimum annual rental commitments under current non-cancellable operating leases, as of December 29, 2018 , substantially all of which relate to leased real estate, were as follows: Fiscal Year Operating Leases 2019 $ 163,963 2020 150,010 2021 134,203 2022 116,773 2023 102,487 Thereafter 235,731 Total $ 903,167 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Accounts receivable reserves | Information regarding accounts receivable is as follows: (dollars in thousands) Wholesale accounts receivable reserves Wholesale sales returns reserves Total Balance at January 2, 2016 $ 8,543 $ 400 $ 8,943 Additional provisions 6,088 — 6,088 Charges to reserve (5,879 ) (400 ) (6,279 ) Balance at December 31, 2016 $ 8,752 $ — $ 8,752 Additional provisions 8,204 — 8,204 Charges to reserve (3,220 ) — (3,220 ) Balance at December 30, 2017 $ 13,736 $ — $ 13,736 Additional provisions 30,280 — 30,280 Charges to reserve (32,150 ) — (32,150 ) Balance at December 29, 2018 $ 11,866 $ — $ 11,866 |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited summarized financial data | The unaudited summarized financial data by quarter for the fiscal years ended December 29, 2018 and December 30, 2017 is presented in the table below: (dollars in thousands, except per share data) Quarter 1 Quarter 2 Quarter 3 Quarter 4 (2) Fiscal 2018: Net sales $ 755,786 $ 696,197 $ 923,907 $ 1,086,379 Gross profit $ 332,477 $ 309,958 $ 387,450 $ 467,598 Royalty income, net $ 7,994 $ 10,355 $ 10,224 $ 10,357 Selling, general, and administrative expenses $ 280,162 $ 263,343 $ 294,117 $ 307,358 Operating income $ 60,309 $ 56,970 $ 103,557 $ 170,597 Net income $ 42,469 $ 37,268 $ 71,770 $ 130,561 Basic net income per common share (1) $ 0.90 $ 0.80 $ 1.55 $ 2.85 Diluted net income per common share (1) $ 0.89 $ 0.79 $ 1.53 $ 2.83 Fiscal 2017: Net sales $ 732,827 $ 691,751 $ 948,046 $ 1,027,880 Gross profit $ 315,692 $ 303,247 $ 403,578 $ 460,837 Royalty income, net $ 10,558 $ 11,210 $ 10,350 $ 11,063 Selling, general, and administrative expenses $ 247,794 $ 250,146 $ 283,480 $ 325,508 Operating income $ 78,456 $ 64,311 $ 130,448 $ 146,392 Net income $ 46,595 $ 37,793 $ 82,316 $ 136,144 Basic net income per common share (1) $ 0.96 $ 0.78 $ 1.73 $ 2.88 Diluted net income per common share (1) $ 0.95 $ 0.77 $ 1.71 $ 2.85 (1) May not be additive to the net income per common share amounts for the fiscal year due to the calculation provision of ASC 260, Earnings Per Share . (2) The provision for income taxes recognized during the fourth quarter of fiscal 2017 reflects a benefit of $40.0 million related to the accounting for the December 22, 2017 enactment of tax law changes known as the U.S. Tax Cuts and Jobs Act of 2017. |
GUARANTOR CONDENSED CONSOLIDA_2
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 118,600 $ 14,735 $ 36,742 $ — $ 170,077 Accounts receivable, net — 203,546 38,753 15,960 — 258,259 Intercompany receivable — 89,201 156,965 70,684 (316,850 ) — Finished goods inventories — 329,989 199,091 63,811 (18,665 ) 574,226 Prepaid expenses and other current assets — 8,483 23,987 7,926 — 40,396 Total current assets — 749,819 433,531 195,123 (335,515 ) 1,042,958 Property, plant, and equipment, net — 133,765 180,914 35,758 — 350,437 Goodwill — 136,570 45,368 45,163 — 227,101 Tradenames, net — 223,073 142,619 — — 365,692 Customer relationships, net — — 41,820 2,691 — 44,511 Other assets — 24,399 1,321 2,439 — 28,159 Intercompany long-term receivable — — 541,629 — (541,629 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 869,433 1,173,415 303,368 — (2,346,216 ) — Total assets $ 869,433 $ 2,541,041 $ 1,690,570 $ 281,174 $ (3,323,360 ) $ 2,058,858 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 137,524 $ 44,066 $ 17,486 $ — $ 199,076 Intercompany Liabilities — 220,033 93,790 3,027 (316,850 ) — Other current liabilities — 35,311 78,595 14,439 — 128,345 Total current liabilities — 392,868 216,451 34,952 (316,850 ) 327,421 Long-term debt, net — 593,264 — — — 593,264 Deferred income taxes — 46,640 40,327 380 — 87,347 Intercompany long-term liability — 541,629 — — (541,629 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 78,542 91,218 11,633 — 181,393 Stockholders' equity 869,433 888,098 1,242,574 234,209 (2,364,881 ) 869,433 Total liabilities and stockholders' equity $ 869,433 $ 2,541,041 $ 1,690,570 $ 281,174 $ (3,323,360 ) $ 2,058,858 CARTER’S, INC. Condensed Consolidating Balance Sheet As of December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 129,463 $ 10,030 $ 39,001 $ — $ 178,494 Accounts receivable, net — 182,944 40,286 17,331 — 240,561 Intercompany receivable — 87,702 162,007 58,980 (308,689 ) — Finished goods inventories — 296,065 206,556 66,569 (20,468 ) 548,722 Prepaid expenses and other current assets — 17,012 21,354 14,569 — 52,935 Total current assets — 713,186 440,233 196,450 (329,157 ) 1,020,712 Property, plant, and equipment, net — 147,858 189,511 40,555 — 377,924 Goodwill — 136,570 45,368 48,486 — 230,424 Tradenames, net — 223,251 142,300 — — 365,551 Customer relationships, net — — 44,996 3,000 — 47,996 Other assets — 23,884 2,392 2,159 — 28,435 Intercompany long-term receivable — — 441,294 — (441,294 ) — Intercompany long-term note receivable — 100,000 — — (100,000 ) — Investment in subsidiaries 857,416 1,053,224 231,994 — (2,142,634 ) — Total assets $ 857,416 $ 2,397,973 $ 1,538,088 $ 290,650 $ (3,013,085 ) $ 2,071,042 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ — $ 115,658 $ 49,313 $ 17,143 $ — $ 182,114 Intercompany payables — 215,573 91,697 1,419 (308,689 ) — Other current liabilities — 11,805 122,989 14,340 — 149,134 Total current liabilities — 343,036 263,999 32,902 (308,689 ) 331,248 Long-term debt — 617,306 — — — 617,306 Deferred income taxes — 46,619 37,647 678 — 84,944 Intercompany long-term liability — 441,294 — — (441,294 ) — Intercompany long-term note payable — — 100,000 — (100,000 ) — Other long-term liabilities — 71,834 92,570 15,724 — 180,128 Stockholders' equity 857,416 877,884 1,043,872 241,346 (2,163,102 ) 857,416 Total liabilities and stockholders' equity $ 857,416 $ 2,397,973 $ 1,538,088 $ 290,650 $ (3,013,085 ) $ 2,071,042 |
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,936,576 $ 2,039,889 $ 431,745 $ (945,941 ) $ 3,462,269 Cost of goods sold — 1,458,934 1,217,110 213,462 (924,720 ) 1,964,786 Gross profit — 477,642 822,779 218,283 (21,221 ) 1,497,483 Royalty income, net — 32,958 18,652 — (12,680 ) 38,930 Selling, general, and administrative expenses — 191,068 856,665 132,951 (35,704 ) 1,144,980 Operating income (loss) — 319,532 (15,234 ) 85,332 1,803 391,433 Interest expense — 34,523 5,310 44 (5,308 ) 34,569 Interest income — (5,329 ) (2 ) (504 ) 5,308 (527 ) (Income) loss in subsidiaries (282,068 ) (38,528 ) (71,671 ) — 392,267 — Other expense (income), net — 495 (189 ) 1,110 — 1,416 Income (loss) before income taxes 282,068 328,371 51,318 84,682 (390,464 ) 355,975 Provision for income taxes — 48,106 12,790 13,011 — 73,907 Net income (loss) $ 282,068 $ 280,265 $ 38,528 $ 71,671 $ (390,464 ) $ 282,068 For the fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,922,930 $ 1,955,703 $ 372,314 $ (850,443 ) $ 3,400,504 Cost of goods sold — 1,406,517 1,143,867 196,391 (829,625 ) 1,917,150 Gross profit — 516,413 811,836 175,923 (20,818 ) 1,483,354 Royalty income, net — 34,816 19,725 — (11,360 ) 43,181 Selling, general, and administrative expenses — 181,129 837,252 126,057 (37,510 ) 1,106,928 Operating income (loss) — 370,100 (5,691 ) 49,866 5,332 419,607 Interest expense — 29,758 5,498 96 (5,308 ) 30,044 Interest income — (5,497 ) — (156 ) 5,308 (345 ) (Income) loss in subsidiaries (302,848 ) (25,426 ) (38,948 ) — 367,222 — Other (income) expense, net — (1,154 ) 1,281 (1,291 ) — (1,164 ) Income (loss) before income taxes 302,848 372,419 26,478 51,217 (361,890 ) 391,072 Provision for income taxes — 74,903 1,052 12,269 — 88,224 Net income (loss) $ 302,848 $ 297,516 $ 25,426 $ 38,948 $ (361,890 ) $ 302,848 CARTER’S, INC. Condensed Consolidating Statement of Operations For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,881,918 $ 1,762,252 $ 300,523 $ (746,150 ) $ 3,198,543 Cost of goods sold — 1,358,209 1,033,403 155,560 (727,148 ) 1,820,024 Gross profit — 523,709 728,849 144,963 (19,002 ) 1,378,519 Royalty income, net — 32,728 19,660 — (9,573 ) 42,815 Selling, general, and administrative expenses — 177,605 753,874 101,494 (37,567 ) 995,406 Operating income (loss) — 378,832 (5,365 ) 43,469 8,992 425,928 Interest expense — 26,475 5,435 442 (5,308 ) 27,044 Interest income — (5,756 ) — (115 ) 5,308 (563 ) (Income) loss in subsidiaries (257,709 ) 4,808 (29,308 ) — 282,209 — Other (income) expense, net — (382 ) 482 3,907 — 4,007 Income (loss) before income taxes 257,709 353,687 18,026 39,235 (273,217 ) 395,440 Provision for income taxes — 104,970 22,834 9,927 — 137,731 Net income (loss) $ 257,709 $ 248,717 $ (4,808 ) $ 29,308 $ (273,217 ) $ 257,709 Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income $ 282,068 $ 280,265 $ 38,528 $ 71,671 $ (390,464 ) $ 282,068 Post-retirement benefit plans (67 ) (67 ) (282 ) — 349 (67 ) Foreign currency translation adjustments (11,679 ) (11,679 ) (11,679 ) (11,679 ) 35,037 (11,679 ) Comprehensive income $ 270,322 $ 268,519 $ 26,567 $ 59,992 $ (355,078 ) $ 270,322 For the fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 302,848 $ 297,516 $ 25,426 $ 38,948 $ (361,890 ) $ 302,848 Post-retirement benefit plans (692 ) (692 ) (430 ) — 1,122 (692 ) Foreign currency translation adjustments 6,339 6,339 6,339 6,339 (19,017 ) 6,339 Comprehensive income (loss) $ 308,495 $ 303,163 $ 31,335 $ 45,287 $ (379,785 ) $ 308,495 For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 257,709 $ 248,717 $ (4,808 ) $ 29,308 $ (273,217 ) $ 257,709 Post-retirement benefit plans (335 ) (335 ) (666 ) — 1,001 (335 ) Foreign currency translation adjustments 1,962 1,962 1,962 1,962 (5,886 ) 1,962 Comprehensive income (loss) $ 259,336 $ 250,344 $ (3,512 ) $ 31,270 $ (278,102 ) $ 259,336 |
Condensed Consolidating Statements of Cash Flows | Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 202,214 $ 60,391 $ 93,593 $ — $ 356,198 Cash flows from investing activities: Capital expenditures — (17,589 ) (39,657 ) (6,537 ) — (63,783 ) Acquisitions of businesses, net of cash acquired — — — 96 — 96 Intercompany investing activity 272,978 (815 ) 3,024 1,558 (276,745 ) — Disposals and recoveries from property, plant, and equipment — — 370 10 — 380 Net cash provided by (used in) investing activities $ 272,978 $ (18,404 ) $ (36,263 ) $ (4,873 ) $ (276,745 ) $ (63,307 ) Cash flows from financing activities: Intercompany financing activity — (168,705 ) (97,945 ) (10,095 ) 276,745 — Borrowings under secured revolving credit facility — 290,000 — — — 290,000 Payments on secured revolving credit facility — (315,000 ) — — — (315,000 ) Payment of debt issuance costs — (968 ) — — — (968 ) Dividends paid (83,717 ) — 78,522 (78,522 ) — (83,717 ) Repurchases of common stock (193,028 ) — — — — (193,028 ) Withholdings from vesting of restricted stock (6,830 ) — — — — (6,830 ) Proceeds from exercises of stock options 10,597 — — — — 10,597 Net cash (used in) provided by financing activities (272,978 ) (194,673 ) (19,423 ) (88,617 ) 276,745 (298,946 ) Effect of exchange rate changes on cash — — — (2,362 ) — (2,362 ) Net increase (decrease) in cash and cash equivalents — (10,863 ) 4,705 (2,259 ) — (8,417 ) Cash and cash equivalents, beginning of fiscal year — 129,463 10,030 39,001 — 178,494 Cash and cash equivalents, end of fiscal year $ — $ 118,600 $ 14,735 $ 36,742 $ — $ 170,077 CARTER’S, INC. Condensed Consolidating Statement of Cash Flows For the fiscal year ended December 30, 2017 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 167,000 $ 118,814 $ 43,807 $ — $ 329,621 Cash flows from investing activities: Capital expenditures — (21,690 ) (38,899 ) (8,884 ) — (69,473 ) Acquisitions of businesses, net of cash acquired — (143,270 ) 746 (15,933 ) — (158,457 ) Intercompany investing activity 256,991 (25,606 ) 894 27,397 (259,676 ) — Disposals and recoveries from property, plant, and equipment — — 15 — — 15 Net cash provided by (used in) investing activities $ 256,991 $ (190,566 ) $ (37,244 ) $ 2,580 $ (259,676 ) $ (227,915 ) Cash flows from financing activities: Intercompany financing activity — (128,908 ) (83,357 ) (47,411 ) 259,676 — Borrowings under secured revolving credit facility — 200,000 — — — 200,000 Payments on secured revolving credit facility — (145,000 ) — (18,965 ) — (163,965 ) Payment of debt issuance costs — (2,119 ) — — — (2,119 ) Dividends paid (70,914 ) — — — — (70,914 ) Repurchases of common stock (188,762 ) — — — — (188,762 ) Withholdings from vesting of restricted stock (5,753 ) — — — — (5,753 ) Proceeds from exercises of stock options 8,438 — — — — 8,438 Net cash (used in) provided by financing activities (256,991 ) (76,027 ) (83,357 ) (66,376 ) 259,676 (223,075 ) Effect of exchange rate changes on cash — — — 505 — 505 Net (decrease) increase in cash and cash equivalents — (99,593 ) (1,787 ) (19,484 ) — (120,864 ) Cash and cash equivalents, beginning of fiscal year — 229,056 11,817 58,485 — 299,358 Cash and cash equivalents, end of fiscal year $ — $ 129,463 $ 10,030 $ 39,001 $ — $ 178,494 CARTER’S, INC. Condensed Consolidating Statement of Cash Flows For the fiscal year ended December 31, 2016 (dollars in thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 206,841 $ 127,018 $ 35,370 $ — $ 369,229 Cash flows from investing activities: Capital expenditures — (22,934 ) (55,072 ) (10,550 ) — (88,556 ) Intercompany investing activity 368,307 480 (2,118 ) 131 (366,800 ) — Disposals and recoveries from property, plant, and equipment — 23 — 193 — 216 Net cash provided by (used in) investing activities $ 368,307 $ (22,431 ) $ (57,190 ) $ (10,226 ) $ (366,800 ) (88,340 ) Cash flows from financing activities: Intercompany financing activity — (283,907 ) (74,681 ) (8,212 ) 366,800 — Dividends paid (66,355 ) — — — — (66,355 ) Repurchases of common stock (300,445 ) — — — — (300,445 ) Income tax benefit from stock-based compensation — 2,782 2,018 — — 4,800 Withholdings from vesting of restricted stock (8,673 ) — — — — (8,673 ) Proceeds from exercises of stock options 7,166 — — — — 7,166 Net cash (used in) provided by financing activities (368,307 ) (281,125 ) (72,663 ) (8,212 ) 366,800 (363,507 ) Effect of exchange rate changes on cash — — — 767 — 767 Net increase (decrease) in cash and cash equivalents — (96,715 ) (2,835 ) 17,699 — (81,851 ) Cash and cash equivalents, beginning of fiscal year — 325,771 14,652 40,786 — 381,209 Cash and cash equivalents, end of fiscal year $ — $ 229,056 $ 11,817 $ 58,485 $ — $ 299,358 Parent Subsidiary Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows provided by operating activities: $ — $ 167,000 $ 118,814 $ 43,807 $ — $ 329,621 Cash flows from investing activities: Capital expenditures — (21,690 ) (38,899 ) (8,884 ) — (69,473 ) Acquisitions of businesses, net of cash acquired — (143,270 ) 746 (15,933 ) — (158,457 ) Intercompany investing activity 256,991 (25,606 ) 894 27,397 (259,676 ) — Disposals and recoveries from property, plant, and equipment — — 15 — — 15 Net cash provided by (used in) investing activities $ 256,991 $ (190,566 ) $ (37,244 ) $ 2,580 $ (259,676 ) $ (227,915 ) Cash flows from financing activities: Intercompany financing activity — (128,908 ) (83,357 ) (47,411 ) 259,676 — Borrowings under secured revolving credit facility — 200,000 — — — 200,000 Payments on secured revolving credit facility — (145,000 ) — (18,965 ) — (163,965 ) Payment of debt issuance costs — (2,119 ) — — — (2,119 ) Dividends paid (70,914 ) — — — — (70,914 ) Repurchases of common stock (188,762 ) — — — — (188,762 ) Withholdings from vesting of restricted stock (5,753 ) — — — — (5,753 ) Proceeds from exercises of stock options 8,438 — — — — 8,438 Net cash (used in) provided by financing activities (256,991 ) (76,027 ) (83,357 ) (66,376 ) 259,676 (223,075 ) Effect of exchange rate changes on cash — — — 505 — 505 Net (decrease) increase in cash and cash equivalents — (99,593 ) (1,787 ) (19,484 ) — (120,864 ) Cash and cash equivalents, beginning of fiscal year — 229,056 11,817 58,485 — 299,358 Cash and cash equivalents, end of fiscal year $ — $ 129,463 $ 10,030 $ 39,001 $ — $ 178,494 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accounts Receivable) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018USD ($)customer | Dec. 30, 2017USD ($)customer | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Cash and cash equivalents | $ 170,077 | $ 178,494 | $ 299,358 | $ 381,209 |
Accounts receivable, gross | 270,125 | 254,297 | ||
Accounts receivable, net | 258,259 | $ 240,561 | ||
Geographic Distribution, Foreign [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Cash and cash equivalents | $ 36,700 | |||
Accounts Receivable [Member] | ||||
Accounts Receivable [Abstract] | ||||
Customer concentration risk, gross accounts receivable | 40.00% | 28.00% | ||
Number of largest wholesale customers being discussed | customer | 3 | 2 | ||
Maximum disclosure percentage for gross accounts receivable | 10.00% | |||
Trade Accounts Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 244,258 | $ 229,968 | ||
Royalties receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 9,279 | 9,818 | ||
Tenant allowances and other receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 16,588 | $ 14,511 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant, and Equipment) (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 15 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 26 years |
Retail Store Fixtures, Equipment, and Computers [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Retail Store Fixtures, Equipment, and Computers [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Computer Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Computer Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Cooperative advertising arrangements, fair value | $ 3 | $ 3.1 | $ 3.7 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accounting for Shipping and Handling Fees and Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Wholesale shipping and handling costs | $ 188.9 | $ 173.5 | $ 153.7 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest paid in cash | $ 33.6 | $ 28.3 | $ 25.4 |
Income taxes paid in cash | 55.9 | 132.9 | 120.6 |
Property, plant and equipment additions | $ 1.9 | $ 1.9 | $ 2.6 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jan. 03, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 909,816 | $ 886,037 | ||
ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 886,037 | $ 600 | ||
ASC 842 | Forecast [Member] | Minimum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liability | $ 800,000 | |||
Right-of use asset | 650,000 | |||
ASC 842 | Forecast [Member] | Maximum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liability | 900,000 | |||
Right-of use asset | $ 750,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | $ 1,086,379,000 | $ 923,907,000 | $ 696,197,000 | $ 755,786,000 | $ 1,027,880,000 | $ 948,046,000 | $ 691,751,000 | $ 732,827,000 | $ 3,462,269,000 | $ 3,400,504,000 | $ 3,198,543,000 | ||
Accounts receivable, gross | 270,125,000 | 254,297,000 | 270,125,000 | 254,297,000 | |||||||||
Cost of goods sold | 1,964,786,000 | 1,917,150,000 | 1,820,024,000 | ||||||||||
Net income | $ 130,561,000 | $ 71,770,000 | $ 37,268,000 | $ 42,469,000 | $ 136,144,000 | $ 82,316,000 | $ 37,793,000 | $ 46,595,000 | $ 282,068,000 | $ 302,848,000 | $ 257,709,000 | ||
Basic net income per common share (in dollars per share) | $ 2.85 | $ 1.55 | $ 0.80 | $ 0.90 | $ 2.88 | $ 1.73 | $ 0.78 | $ 0.96 | $ 6.06 | $ 6.31 | $ 5.12 | ||
Diluted net income per common share | $ 2.83 | $ 1.53 | $ 0.79 | $ 0.89 | $ 2.85 | $ 1.71 | $ 0.77 | $ 0.95 | $ 6 | $ 6.24 | $ 5.08 | ||
Assets, Current | $ 1,042,958,000 | $ 1,020,712,000 | $ 1,042,958,000 | $ 1,020,712,000 | |||||||||
Assets | 2,058,858,000 | 2,071,042,000 | 2,058,858,000 | 2,071,042,000 | |||||||||
Other current liabilities | 128,345,000 | 149,134,000 | 128,345,000 | 149,134,000 | |||||||||
Total current liabilities | 327,421,000 | 331,248,000 | 327,421,000 | 331,248,000 | |||||||||
Liabilities | 1,189,425,000 | 1,213,626,000 | 1,189,425,000 | 1,213,626,000 | |||||||||
Retained earnings | 909,816,000 | 886,037,000 | 909,816,000 | 886,037,000 | |||||||||
Total stockholder's equity | 869,433,000 | 857,416,000 | 869,433,000 | 857,416,000 | $ 788,363,000 | $ 875,687,000 | |||||||
Liabilities and Equity | 2,058,858,000 | 2,071,042,000 | 2,058,858,000 | 2,071,042,000 | |||||||||
Contract with Customer, Refund Liability, Current | 7,764,000 | 7,355,000 | 7,764,000 | 7,355,000 | |||||||||
ASC 606 | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 92,000 | $ (637,000) | |||||||||||
Other Assets, Current | 52,935,000 | 52,935,000 | |||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 0.6 | ||||||||||||
Earnings Per Share, Basic and Diluted | $ 0.01 | ||||||||||||
Cost of goods sold | 52,000 | $ (7,000) | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 40,000 | (630,000) | |||||||||||
Net income | $ 84,000 | $ (397,000) | |||||||||||
Basic net income per common share (in dollars per share) | $ 0 | $ (0.01) | |||||||||||
Diluted net income per common share | $ 0 | $ 0 | |||||||||||
Assets, Current | 1,020,712,000 | $ 1,020,712,000 | |||||||||||
Assets | 2,071,042,000 | 2,071,042,000 | |||||||||||
Other current liabilities | 149,134,000 | 149,134,000 | |||||||||||
Total current liabilities | 331,248,000 | 331,248,000 | |||||||||||
Deferred Income Taxes and Other Liabilities, Noncurrent | 84,944,000 | 84,944,000 | |||||||||||
Liabilities | 1,213,626,000 | 1,213,626,000 | |||||||||||
Retained earnings | 886,037,000 | 886,037,000 | $ 600,000 | ||||||||||
Total stockholder's equity | 857,416,000 | 857,416,000 | |||||||||||
Liabilities and Equity | 2,071,042,000 | 2,071,042,000 | |||||||||||
Contract with Customer, Refund Liability, Current | 3,000,000 | 3,000,000 | |||||||||||
Contract with Customer, Liability | 400,000 | 400,000 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ASC 606 | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Other Assets, Current | 49,892,000 | 49,892,000 | |||||||||||
Assets, Current | 1,017,669,000 | 1,017,669,000 | |||||||||||
Assets | 2,067,999,000 | 2,067,999,000 | |||||||||||
Other current liabilities | 146,510,000 | 146,510,000 | |||||||||||
Total current liabilities | 328,624,000 | 328,624,000 | |||||||||||
Deferred Income Taxes and Other Liabilities, Noncurrent | 84,848,000 | 84,848,000 | |||||||||||
Liabilities | 1,210,906,000 | 1,210,906,000 | |||||||||||
Retained earnings | 885,714,000 | 885,714,000 | |||||||||||
Total stockholder's equity | 857,093,000 | 857,093,000 | |||||||||||
Liabilities and Equity | 2,067,999,000 | 2,067,999,000 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASC 606 | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Other Assets, Current | 3,043,000 | 3,043,000 | |||||||||||
Assets, Current | 3,043,000 | 3,043,000 | |||||||||||
Assets | 3,043,000 | 3,043,000 | |||||||||||
Other current liabilities | 2,624,000 | 2,624,000 | |||||||||||
Total current liabilities | 2,624,000 | 2,624,000 | |||||||||||
Deferred Income Taxes and Other Liabilities, Noncurrent | 96,000 | 96,000 | |||||||||||
Liabilities | 2,720,000 | 2,720,000 | |||||||||||
Retained earnings | 323,000 | 323,000 | |||||||||||
Total stockholder's equity | 323,000 | 323,000 | |||||||||||
Liabilities and Equity | 3,043,000 | 3,043,000 | |||||||||||
Retail Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 1,851,193,000 | 1,775,378,000 | $ 1,655,784,000 | ||||||||||
Wholesale Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 1,180,687,000 | 1,209,663,000 | 1,178,034,000 | ||||||||||
International | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 430,389,000 | 415,463,000 | 364,725,000 | ||||||||||
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 1,344,324,000 | 1,370,513,000 | 1,311,715,000 | ||||||||||
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | Retail Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | Wholesale Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 1,180,687,000 | 1,209,663,000 | 1,178,034,000 | ||||||||||
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | International | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 163,637,000 | 160,850,000 | 133,681,000 | ||||||||||
5600 Retail, Apparel and Accessory Stores [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 2,117,945,000 | 2,029,991,000 | 1,886,828,000 | ||||||||||
5600 Retail, Apparel and Accessory Stores [Member] | Retail Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 1,851,193,000 | 1,775,378,000 | 1,655,784,000 | ||||||||||
5600 Retail, Apparel and Accessory Stores [Member] | Wholesale Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||
5600 Retail, Apparel and Accessory Stores [Member] | International | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 266,752,000 | 254,613,000 | 231,044,000 | ||||||||||
Licensing Agreements [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 38,930,000 | 43,181,000 | 42,815,000 | ||||||||||
Licensing Agreements [Member] | Retail Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 12,877,000 | 15,541,000 | 12,318,000 | ||||||||||
Licensing Agreements [Member] | Wholesale Segment [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 22,511,000 | 23,767,000 | 25,000,000 | ||||||||||
Licensing Agreements [Member] | International | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Net sales | 3,542,000 | 3,873,000 | $ 5,497,000 | ||||||||||
Allowance for Doubtful Accounts [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Allowance for Doubtful Accounts Receivable, Current | 11,866,000 | 13,736,000 | 11,866,000 | 13,736,000 | |||||||||
Trade Accounts Receivable [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Accounts receivable, gross | 244,258,000 | 229,968,000 | 244,258,000 | 229,968,000 | |||||||||
Royalties receivable [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Accounts receivable, gross | 9,279,000 | 9,818,000 | 9,279,000 | 9,818,000 | |||||||||
Tenant allowances and other receivables [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Accounts receivable, gross | $ 16,588,000 | $ 14,511,000 | $ 16,588,000 | $ 14,511,000 |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 |
Accounts receivable, gross | 270,125 | 254,297 | 270,125 | 254,297 | |||||||
Accounts Receivable, Net, Current | 258,259 | 240,561 | 258,259 | 240,561 | |||||||
Trade Accounts Receivable [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Accounts receivable, gross | 244,258 | 229,968 | 244,258 | 229,968 | |||||||
Royalties receivable [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Accounts receivable, gross | 9,279 | 9,818 | 9,279 | 9,818 | |||||||
Tenant allowances and other receivables [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Accounts receivable, gross | $ 16,588 | $ 14,511 | 16,588 | 14,511 | |||||||
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,344,324 | 1,370,513 | 1,311,715 | ||||||||
5600 Retail, Apparel and Accessory Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,117,945 | 2,029,991 | 1,886,828 | ||||||||
Licensing Agreements [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 38,930 | 43,181 | 42,815 | ||||||||
Retail Segment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,851,193 | 1,775,378 | 1,655,784 | ||||||||
Retail Segment [Member] | 5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Retail Segment [Member] | 5600 Retail, Apparel and Accessory Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,851,193 | 1,775,378 | 1,655,784 | ||||||||
Retail Segment [Member] | Licensing Agreements [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 12,877 | 15,541 | 12,318 | ||||||||
Wholesale Segment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,180,687 | 1,209,663 | 1,178,034 | ||||||||
Wholesale Segment [Member] | 5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,180,687 | 1,209,663 | 1,178,034 | ||||||||
Wholesale Segment [Member] | 5600 Retail, Apparel and Accessory Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Wholesale Segment [Member] | Licensing Agreements [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 22,511 | 23,767 | 25,000 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 430,389 | 415,463 | 364,725 | ||||||||
International | 5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 163,637 | 160,850 | 133,681 | ||||||||
International | 5600 Retail, Apparel and Accessory Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 266,752 | 254,613 | 231,044 | ||||||||
International | Licensing Agreements [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 3,542 | $ 3,873 | $ 5,497 |
REVENUE RECOGNITION Change in C
REVENUE RECOGNITION Change in Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Gift Card Liability, Current | $ 14,471 | $ 11,945 |
Contract with Customer, Refund Liability, Current | 7,764 | 7,355 |
Contract with Customer, Liability, Current | $ 22,235 | $ 19,300 |
BUSINESS ACQUISITIONS (Skip Hop
BUSINESS ACQUISITIONS (Skip Hop Acquisition) (Details) - USD ($) $ in Thousands | 10 Months Ended | ||
Dec. 30, 2017 | Dec. 29, 2018 | Feb. 23, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 230,424 | $ 227,101 | |
Skip Hop [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | ||
Payments to Acquire Businesses, Net of Cash Acquired | 142,500 | ||
Less cash acquired at acquisition | (800) | ||
Goodwill | 46,000 | ||
Intangible Assets | 104,100 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 53,900 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 20,800 | ||
Deferred income tax liabilities | $ (36,300) |
BUSINESS ACQUISITIONS (Acquisit
BUSINESS ACQUISITIONS (Acquisition of Mexican Licensee) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 227,101 | $ 230,424 |
Mexican Licensee [Member] | ||
Business Acquisition [Line Items] | ||
Inventory | 8,000 | 8,300 |
Intangible Assets | 3,500 | 3,500 |
Goodwill | $ 6,300 | $ 6,200 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Depletion and Amortization, Nonproduction | $ 85,900 | $ 81,800 | $ 71,500 |
Property, plant and equipment, gross | 799,335 | 782,097 | |
Accumulated depreciation and amortization | (448,898) | (404,173) | |
Property, plant, and equipment, net | 350,437 | 377,924 | |
Fixtures, Equipment, and Computers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 425,686 | 430,156 | |
Land, Buildings, and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 348,131 | 336,981 | |
Marketing Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 7,001 | 7,602 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18,517 | $ 7,358 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Gross amount | $ 227,101 | $ 230,424 | |
Goodwill | 227,101 | 230,424 | |
Amortization of intangible assets | 3,700 | 2,600 | $ 1,900 |
Year one | 3,732 | ||
Year two | 3,732 | ||
Year three | 3,732 | ||
Year four | 3,732 | ||
Year five | 3,690 | ||
Other Tradenames [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Finite intangible assets, Gross amount | 3,911 | 3,550 | |
Finite intangible assets, Accumulated amortization | 752 | 532 | |
Finite intangible assets, Net amount | 3,159 | 3,018 | |
Amortization of intangible assets | 0 | $ 1,700 | |
Tradenames [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Finite intangible assets, Gross amount | 366,444 | 366,083 | |
Finite intangible assets, Accumulated amortization | 752 | 532 | |
Finite intangible assets, Net amount | $ 365,692 | 365,551 | |
Skip Hop Customer Relationships [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Weighted-average useful life | 15 years | ||
Finite intangible assets, Gross amount | $ 47,300 | 47,300 | |
Finite intangible assets, Accumulated amortization | 5,480 | 2,304 | |
Finite intangible assets, Net amount | $ 41,820 | 44,996 | |
Carters Mexico Customer Relationships [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Weighted-average useful life | 10 years | ||
Finite intangible assets, Gross amount | $ 3,146 | 3,135 | |
Finite intangible assets, Accumulated amortization | 455 | 135 | |
Finite intangible assets, Net amount | 2,691 | 3,000 | |
Customer Relationships [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Finite intangible assets, Gross amount | 50,446 | 50,435 | |
Finite intangible assets, Accumulated amortization | 5,935 | 2,439 | |
Finite intangible assets, Net amount | 44,511 | 47,996 | |
Carter's Goodwill [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Gross amount | 136,570 | 136,570 | |
Goodwill | 136,570 | 136,570 | |
Carter's Goodwill [Member] | Wholesale Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 45,900 | ||
Carter's Goodwill [Member] | Retail Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 82,000 | ||
Carter's Goodwill [Member] | International Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 8,600 | ||
Canada Acquisition Goodwill [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Gross amount | 38,869 | 42,223 | |
Goodwill | 38,869 | 42,223 | |
Skip Hop Goodwill [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Gross amount | 45,960 | 45,997 | |
Goodwill | 45,960 | 45,997 | |
Skip Hop Goodwill [Member] | Wholesale Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 28,600 | ||
Skip Hop Goodwill [Member] | Retail Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 15,500 | ||
Skip Hop Goodwill [Member] | International Segment [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 1,900 | ||
Carters Mexico [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Gross amount | 5,702 | 5,634 | |
Goodwill | 5,702 | 5,634 | |
Carter's Tradename [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Indefinite intangible assets | 220,233 | 220,233 | |
Oshkosh Tradename [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Indefinite intangible assets | 85,500 | 85,500 | |
Skip Hop Trade Name [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Indefinite intangible assets | $ 56,800 | $ 56,800 | |
Minimum [Member] | Other Tradenames [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Weighted-average useful life | 5 years | ||
Maximum [Member] | Other Tradenames [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Weighted-average useful life | 20 years |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cumulative translation adjustment, beginning balance | $ (21,285) | $ (27,624) | $ (29,586) |
Cumulative translation adjustment, current year change | (11,679) | 6,339 | 1,962 |
Cumulative translation adjustment, ending balance | (32,964) | (21,285) | (27,624) |
Accumulated other comprehensive income (loss), beginning balance | (29,093) | (34,740) | (36,367) |
Total other comprehensive income (loss) | (11,746) | 5,647 | 1,627 |
Accumulated other comprehensive income (loss), ending balance | (40,839) | (29,093) | (34,740) |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension/post-retirement liability adjustment, beginning balance | (9,281) | (8,851) | (8,185) |
Pension/post-retirement liability adjustment, current year change | (430) | (666) | |
Pension/post-retirement liability adjustment, ending balance | (9,562) | (9,281) | (8,851) |
Pension/post-retirement liability adjustments, tax benefit | 5,400 | 5,300 | |
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension/post-retirement liability adjustment, beginning balance | 1,473 | 1,735 | 1,404 |
Pension/post-retirement liability adjustment, current year change | (262) | 331 | |
Pension/post-retirement liability adjustment, ending balance | 1,687 | 1,473 | $ 1,735 |
Pension/post-retirement liability adjustments, tax benefit | $ 1,000 | $ 1,000 |
LONG-TERM DEBT (Schedule of Lon
LONG-TERM DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, BS | $ 593,264 | $ 617,306 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, BS | $ 400,000 |
LONG-TERM DEBT (Senior Notes) (
LONG-TERM DEBT (Senior Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 28, 2013 | Dec. 30, 2017 | Aug. 12, 2013 | |
Debt Instrument [Line Items] | ||||
Long-term debt, net | $ 593,264 | $ 617,306 | ||
Changes of Control [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 101.00% | |||
Sale of Certain Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 100.00% | |||
Redemption, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 101.31% | |||
Redemption, 2019 and Thereafter [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 100.00% | |||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 400,000 | 400,000 | ||
Debt Issuance Costs, Net | (2,736) | (3,694) | ||
Long-term Debt | 397,264 | 396,306 | ||
Secured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 196,000 | 221,000 | ||
Long-term debt, net | 196,000 | $ 221,000 | ||
TWCC [Member] | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 400,000 | |||
Debt Issuance Costs, Gross | $ 7,000 | |||
Stated interest rate | 5.25% | |||
Proceeds from senior notes | $ 394,200 | |||
Restricted amount of dividends payable | $ 100,000 | |||
Restriction on dividends payable, net income benchmark | 50.00% | |||
Ownership percentage of notes, to declare notes due and payable | 25.00% |
LONG-TERM DEBT (Secured Revolvi
LONG-TERM DEBT (Secured Revolving Credit Facility) (Details) | Aug. 25, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 21, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt, BS | $ 593,264,000 | $ 617,306,000 | |||
Borrowings under secured revolving credit facility | 290,000,000 | 200,000,000 | $ 0 | ||
Outstanding letters of credit | $ 5,000,000 | 4,500,000 | |||
Debt covenants, EBITDAR restrictions (as a ratio) | 4 | ||||
Debt covenant, fixed charge coverage ratio | 2.25 | ||||
Long-term Debt, Excluding Current Maturities | $ 593,264,000 | $ 617,306,000 | |||
fiscal quarter of material acquisition [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt covenants, EBITDAR restrictions (as a ratio) | 4.50 | ||||
Debt covenant, fixed charge coverage ratio | 2 | ||||
LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 1.625% | ||||
Effective interest rate (in hundredths) | 4.11% | 2.93% | |||
LIBOR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate, basis spread (as a percentage) | 1.125% | ||||
LIBOR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate, basis spread (as a percentage) | 1.875% | ||||
Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.625% | ||||
Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate, basis spread (as a percentage) | 0.125% | ||||
Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate, basis spread (as a percentage) | 0.875% | ||||
Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 2.25 | ||||
Debt Issuance Costs, Net | $ 2,100,000 | $ 1,000,000 | |||
Secured revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 196,000,000 | $ 221,000,000 | |||
Available for future borrowing | 549,000,000 | 524,500,000 | |||
Long-term Debt, Excluding Current Maturities | $ 196,000,000 | $ 221,000,000 | |||
Secured revolving credit facility | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 425,000,000 | ||||
Secured revolving credit facility | 750,000,000 | ||||
Debt Instrument, Term | 5 years | ||||
United States Dollar Credit Facility [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 350,000,000 | ||||
Secured revolving credit facility | 650,000,000 | ||||
Multicurrency Revolving Credit Facility [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 75,000,000 | ||||
Secured revolving credit facility | 100,000,000 | ||||
Short-term Debt | 15,000,000 | ||||
Standby Letters of Credit [Member] | United States Dollar Credit Facility [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | 100,000,000 | ||||
Standby Letters of Credit [Member] | Multicurrency Revolving Credit Facility [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | 40,000,000 | ||||
Bridge Loan [Member] | United States Dollar Credit Facility [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | $ 70,000,000 |
COMMON STOCK (Share Repurchases
COMMON STOCK (Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 24, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Accelerated Share Repurchases [Line Items] | |||||
Stock repurchase, additional authorized amount | $ 500,000 | $ 462,500 | |||
Stock repurchase, authorized amount | $ 1,460,000 | ||||
Remaining capacity under authorization | $ 392,600 | ||||
Stock Repurchased, shares | 1,879,529 | 2,103,401 | 3,049,381 | ||
Average price of repurchased and retired shares | $ 102.70 | $ 89.74 | $ 98.53 | ||
Stock Repurchased During Period, Value | $ 193,028 | $ 188,762 | $ 300,445 | $ 387,600 |
COMMON STOCK (Dividends) (Detai
COMMON STOCK (Dividends) (Details) - $ / shares | Feb. 14, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||||||
Dividend declared and paid per common share | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.37 | $ 1.80 | $ 1.48 | $ 1.32 | |
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend declared and paid per common share | $ 0.5 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | May 17, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in the number of shares under the existing plan (in shares) | 3,000,000 | |||
Original number of shares available under the plan (in shares) | 15,778,392 | |||
Stock available under the existing plan (in shares) | 18,778,392 | |||
Available for grant under the Plan (in shares) | 3,702,701 | |||
Intrinsic value of basic stock options exercised | $ 16.6 | $ 14.9 | $ 9 | |
Weighted- average exercise price per share, Exercisable (in dollars per share) | $ 57.33 | |||
Vested and expected to vest (in shares) | 1,377,440 | |||
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share) | $ 73.10 | |||
Weighted-average expense recognition period (in years) | 2 years 3 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 151,321 | 168,471 | 218,335 | |
Granted (in shares) | 143,085 | |||
Granted (in dollars per share) | $ 118.03 | |||
Vested (in dollars per share) | $ 84.56 | $ 74 | $ 62.98 | |
Shares outstanding (in shares) | 374,008 | 397,848 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 97.57 | $ 85.44 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Unrecognized compensation cost | $ 8.8 | |||
Weighted-average expense recognition period (in years) | 2 years 6 months 24 days | |||
Performance-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 2.6 | |||
Weighted-average expense recognition period (in years) | 1 year 7 months 28 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 50,696 | |||
Vested (in dollars per share) | $ 82.40 | |||
Shares outstanding (in shares) | 153,922 | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 96.47 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 16 | |||
Time-based restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 13.4 | |||
Weighted-average expense recognition period (in years) | 2 years 5 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 100,625 | 114,703 | 124,135 | |
Vested (in dollars per share) | $ 85.64 | $ 76.58 | $ 65.80 | |
Time-based restricted stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Time-based restricted stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Performance-based restricted stock awards to the CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 45,625 | 60,952 | 53,070 | |
Granted (in dollars per share) | $ 120.25 | $ 83.84 | $ 90.66 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock-Based Compensation by Award Type) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 151,321 | 168,471 | 218,335 |
Stock-based compensation | $ 14,673 | $ 17,549 | $ 16,847 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 14,673 | $ 16,378 | $ 15,662 |
Vested (in dollars per share) | $ 84.56 | $ 74 | $ 62.98 |
Shares outstanding (in shares) | 374,008 | 397,848 | |
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 97.57 | $ 85.44 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 4,788 | $ 4,244 | $ 4,237 |
Time-based restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 100,625 | 114,703 | 124,135 |
Vested (in dollars per share) | $ 85.64 | $ 76.58 | $ 65.80 |
Time-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 7,938 | $ 7,532 | $ 7,451 |
Performance-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 3,900 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 50,696 | ||
Stock-based compensation | $ 744 | 4,602 | 3,974 |
Vested (in dollars per share) | $ 82.40 | ||
Shares outstanding (in shares) | 153,922 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 96.47 | ||
Stock awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,203 | $ 1,171 | $ 1,185 |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Stock Options (Number of shares) | |
Outstanding, beginning balance (in shares) | shares | 1,494,223 |
Granted (in shares) | shares | 255,532 |
Exercised (in shares) | shares | (261,113) |
Forfeited (in shares) | shares | (40,533) |
Expired (in shares) | shares | (968) |
Outstanding, ending balance (in shares) | shares | 1,447,141 |
Vested and expected to vest (in shares) | shares | 1,377,440 |
Exercisable (in shares) | shares | 851,264 |
Stock Options (Weighted-average exercise price) | |
Weighted- average exercise price per share beginning balance (in dollars per share) | $ / shares | $ 61.76 |
Granted (in dollars per share) | $ / shares | 118.43 |
Exercised (in dollars per share) | $ / shares | 40.58 |
Forfeited (in dollars per share) | $ / shares | 98.01 |
Expired (in dollars per share) | $ / shares | 95.10 |
Weighted- average exercise price per share ending balance (in dollars per share) | $ / shares | 74.55 |
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share) | $ / shares | 73.10 |
Weighted- average exercise price per share, Exercisable (in dollars per share) | $ / shares | $ 57.33 |
Weighted-average remaining contractual terms (years), Outstanding | 5 years 11 months 15 days |
Weighted-average remaining contractual terms (years), Vested and Expected to Vest | 5 years 9 months 24 days |
Weighted-average remaining contractual terms (years), Exercisable | 4 years 3 months 22 days |
Aggregate intrinsic value, Outstanding | $ | $ 21,714 |
Aggregate intrinsic value, Vested and Expected to Vest | $ | 21,714 |
Aggregate intrinsic value, Exercisable | $ | $ 21,714 |
STOCK-BASED COMPENSATION (Weigh
STOCK-BASED COMPENSATION (Weighted-Average Assumptions) (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Volatility | 22.93% | 26.20% | 26.95% |
Risk-free interest rate | 2.75% | 2.06% | 1.33% |
Expected term (years) | 6 years | 6 years | 6 years |
Dividend yield | 1.47% | 1.77% | 1.45% |
Weighted average fair value of options granted | $ 27.36 | $ 19.57 | $ 21.41 |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 29, 2018 | |
Restricted Stock | ||||
Shares outstanding (in shares) | 397,848 | |||
Granted (in shares) | 143,085 | |||
Vested (in shares) | (151,321) | (168,471) | (218,335) | |
Forfeited (in shares) | (15,604) | |||
Shares outstanding (in shares) | 374,008 | 397,848 | ||
Weighted-average grant-date fair value | ||||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 97.57 | $ 85.44 | $ 97.57 | |
Granted (in dollars per share) | 118.03 | |||
Vested (in dollars per share) | 84.56 | 74 | $ 62.98 | |
Forfeited (in dollars per share) | 97.83 | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 97.57 | $ 85.44 | ||
Weighted-average expense recognition period (in years) | 2 years 3 months 24 days | |||
Performance-based restricted stock awards to the CEO | ||||
Restricted Stock | ||||
Granted (in shares) | 45,625 | 60,952 | 53,070 | |
Weighted-average grant-date fair value | ||||
Granted (in dollars per share) | $ 120.25 | $ 83.84 | $ 90.66 | |
Time-based restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 13.4 | |||
Restricted Stock | ||||
Vested (in shares) | (100,625) | (114,703) | (124,135) | |
Weighted-average grant-date fair value | ||||
Vested (in dollars per share) | $ 85.64 | $ 76.58 | $ 65.80 | |
Weighted-average expense recognition period (in years) | 2 years 5 months | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 16 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 2.6 | |||
Restricted Stock | ||||
Vested (in shares) | (50,696) | |||
Shares outstanding (in shares) | 153,922 | |||
Weighted-average grant-date fair value | ||||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 96.47 | $ 96.47 | ||
Vested (in dollars per share) | 82.40 | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 96.47 | |||
Weighted-average expense recognition period (in years) | 1 year 7 months 28 days |
STOCK-BASED COMPENSATION (Non-M
STOCK-BASED COMPENSATION (Non-Management Board Directors) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per share | $ 118.03 | ||
Aggregate value | $ 1,171 | $ 1,185 | |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 10,971 | 13,860 | 12,758 |
Fair value per share | $ 109.67 | $ 84.46 | $ 101.10 |
Aggregate value | $ 1,203 | $ 1,290 |
EMPLOYEE BENEFIT PLANS (Defined
EMPLOYEE BENEFIT PLANS (Defined Benefit Plans Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets | 5.50% | ||
Contribution | $ 300 | $ 300 | $ 400 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 6,000 | ||
Defined Benefit Plan, Assumptions Used in Calculation, Description | 0.25% | ||
Defined Benefit Plan, Benefit Obligation | $ 62,297 | 66,747 | $ 62,427 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 6,733 | $ 12,310 | |
Effect of 0.25% increase on projected benefit obligation | $ 2,000 | ||
Expected long-term rate of return on assets | 6.25% | 6.00% | 6.00% |
Contribution | $ 6,000 | $ 0 | |
Benefit payments | 3,020 | ||
Expected contribution and benefit payment, five years subsequent to 2017 | 17,850 | ||
2,020 | $ 2,600 | ||
Pension Plans | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 45.00% | ||
Pension Plans | Bond Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 50.00% | ||
Pension Plans | Real Estate Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 5.00% | ||
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 300 | ||
Defined Benefit Plan, Benefit Obligation | 3,228 | 3,969 | $ 4,125 |
Benefit payments | 300 | ||
Expected contribution and benefit payment, five years subsequent to 2017 | 1,100 | ||
2,020 | 300 | ||
Other Long Term Liabilities | Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 2,900 | $ 3,600 |
EMPLOYEE BENEFIT PLANS (Benefit
EMPLOYEE BENEFIT PLANS (Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Change in plan assets: | |||
Contribution | $ 300 | $ 300 | $ 400 |
Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 66,747 | 62,427 | |
Interest cost | 2,287 | 2,446 | 2,515 |
Actuarial (gain) loss | (4,371) | 4,269 | |
Benefits paid | (2,366) | (2,395) | |
Benefit obligation at end of period | 62,297 | 66,747 | 62,427 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 54,437 | 51,213 | |
Actual return on plan assets | (2,507) | 5,619 | |
Fair value of plan assets at end of year | 55,564 | 54,437 | 51,213 |
Contribution | 6,000 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 2,366 | 2,395 | |
Postretirement Benefit | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 3,969 | 4,125 | |
Service cost | 32 | 30 | 123 |
Interest cost | 123 | 137 | 177 |
Actuarial (gain) loss | (573) | 26 | |
Plan participants' contribution | 1 | 6 | |
Benefit obligation at end of period | 3,228 | 3,969 | $ 4,125 |
Change in plan assets: | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 324 | 355 | |
Postretirement Benefit | Other Long Term Liabilities | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 3,600 | ||
Benefit obligation at end of period | $ 2,900 | $ 3,600 |
EMPLOYEE BENEFIT PLANS (Net Per
EMPLOYEE BENEFIT PLANS (Net Periodic (Benefit) Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on accumulated benefit obligation | $ 2,287 | $ 2,446 | $ 2,515 |
Expected return on assets | (2,934) | (2,601) | (2,701) |
Amortization of net actuarial gain (loss) | 709 | 681 | 578 |
Total net periodic (benefit) cost | 62 | 526 | 392 |
Total net periodic cost (benefit) and changes recognized in OCI | 423 | 1,096 | 1,458 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 1,070 | 1,251 | 1,644 |
Amortization of actuarial gain/loss | (709) | (681) | (578) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 361 | 570 | 1,066 |
Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost - benefits attributed to service during the period | 32 | 30 | 123 |
Interest cost on accumulated benefit obligation | 123 | 137 | 177 |
Amortization of net actuarial gain (loss) | (289) | (306) | (198) |
Total net periodic (benefit) cost | (134) | (139) | 102 |
Total net periodic cost (benefit) and changes recognized in OCI | (418) | 193 | (429) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (573) | 26 | (740) |
Amortization of actuarial gain/loss | (289) | (306) | (198) |
Net prior service cost | 0 | 0 | 11 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | (284) | $ 332 | $ (531) |
Reclassification out of Accumulated Other Comprehensive Income | Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amortization of net actuarial gain (loss) | 800 | ||
Reclassification out of Accumulated Other Comprehensive Income | Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amortization of net actuarial gain (loss) | $ 400 |
EMPLOYEE BENEFIT PLANS (Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net periodic pension cost | |||
Expected long-term rate of return on assets | 5.50% | ||
Pension Plans | |||
Benefit obligation | |||
Discount rate | 4.00% | 3.50% | |
Net periodic pension cost | |||
Discount rate | 3.50% | 4.00% | 4.25% |
Expected long-term rate of return on assets | 6.25% | 6.00% | 6.00% |
Postretirement Benefit | |||
Benefit obligation | |||
Discount rate | 4.00% | 3.25% | |
Net periodic pension cost | |||
Discount rate | 3.25% | 3.50% | 3.75% |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution | $ 300 | $ 300 | $ 400 |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 6,000 | ||
Contribution | 6,000 | $ 0 | |
2,019 | 3,020 | ||
2,020 | 2,600 | ||
2,021 | 2,660 | ||
2,022 | 2,860 | ||
2,023 | 2,940 | ||
2024 and thereafter | 17,850 | ||
Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 300 | ||
2,019 | 300 | ||
2,020 | 300 | ||
2,021 | 300 | ||
2,022 | 300 | ||
2024 and thereafter | $ 1,100 |
EMPLOYEE BENEFIT PLANS (Plan As
EMPLOYEE BENEFIT PLANS (Plan Assets) (Details) - Pension Plans - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 55,564 | $ 54,437 | $ 51,213 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55,323 | 54,029 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 241 | 408 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 550 | 539 | |
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 550 | 539 | |
Cash and Cash Equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Large-Cap blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,693 | 7,418 | |
U.S. Large-Cap blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,693 | 7,418 | |
U.S. Large-Cap blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Large-Cap growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,478 | 3,331 | |
U.S. Large-Cap growth [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,478 | 3,331 | |
U.S. Large-Cap growth [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Mid-Cap growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,355 | 3,228 | |
U.S. Mid-Cap growth [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,355 | 3,228 | |
U.S. Mid-Cap growth [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Small-Cap blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,224 | 2,147 | |
U.S. Small-Cap blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,224 | 2,147 | |
U.S. Small-Cap blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,302 | 8,142 | |
International blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,302 | 8,142 | |
International blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bond Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,247 | 26,888 | |
Corporate Bond Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,006 | 26,480 | |
Corporate Bond Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 241 | 408 | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,715 | 2,744 | |
Real Estate [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,715 | 2,744 | |
Real Estate [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Defin_2
EMPLOYEE BENEFIT PLANS (Defined Contribution Plans) (Details) - Defined Contribution Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
United States | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Minimum age participation for the defined contribution plan (in years) | 21 years | ||
Minimum service participation for the defined contribution plan (in months) | 1 month | ||
Minimum hours service participation for the defined contribution plan (in hours) | 1000 hours | ||
Defined contribution plan expense for the fiscal year | $ 8 | $ 13.9 | $ 10.5 |
Canada | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan expense for the fiscal year | $ 0.1 | $ 0.3 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2017 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provisional income tax benefit | $ 40 | |
Unrecognized deferred tax liability related to undistributed earnings | $ 2 | |
Foreign earnings | 10.4 | |
Remeasurement of certain deferred income tax | $ 50.4 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 82,000 | ||
Current tax provision: | |||
Federal | 48,129 | $ 117,676 | $ 113,326 |
State | 9,437 | 11,368 | 11,407 |
Foreign | 17,359 | 14,116 | 11,937 |
Total current provision | 74,925 | 143,160 | 136,670 |
Deferred tax provision (benefit): | |||
Federal | (760) | (55,191) | 1,215 |
State | 140 | 337 | 332 |
Foreign | (398) | (82) | (486) |
Total deferred provision (benefit) | (1,018) | (54,936) | 1,061 |
Total provision | $ 73,907 | 88,224 | $ 137,731 |
Foreign earnings | $ 10,400 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 260,722 | $ 325,620 | $ 344,674 |
Foreign | 95,253 | 65,452 | 50,766 |
Total | $ 355,975 | $ 391,072 | $ 395,440 |
INCOME TAXES (Effective Rate Re
INCOME TAXES (Effective Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income tax rate reconciliation [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 2.80% | 2.10% | 2.30% |
Impact of foreign operations | (1.50%) | (2.70%) | (2.10%) |
Settlement of uncertain tax positions | (0.40%) | (0.30%) | (0.40%) |
Benefit from stock-based compensation | (1.10%) | (1.30%) | (0.00%) |
Imposition of transition tax on foreign subsidiaries | 0.00% | 2.70% | 0.00% |
Revaluation of deferred taxes | 0.00% | (12.90%) | 0.00% |
Total | 20.80% | 22.60% | 34.80% |
INCOME TAXES (Deferred Taxes) (
INCOME TAXES (Deferred Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Remeasurement of certain deferred income tax | $ 50,400 | |
Current net deferred tax asset | 1,941 | $ 2,083 |
Non-current net deferred tax liability | (84,944) | (87,347) |
Deferred tax assets: | ||
Accounts receivable allowance | 3,632 | 3,674 |
Inventory | 6,759 | 7,785 |
Accrued liabilities | 13,174 | 10,672 |
Equity-based compensation | 6,796 | 5,278 |
Deferred employee benefits | 8,112 | 6,425 |
Deferred rent | 34,422 | 33,761 |
Other | 2,335 | 3,007 |
Total deferred tax assets | 75,230 | 70,602 |
Deferred tax liabilities: | ||
Depreciation | (63,763) | (62,898) |
Tradename and licensing agreements | (89,142) | (89,194) |
Other | (5,328) | (3,774) |
Total deferred tax liabilities | 158,233 | 155,866 |
Net deferred tax asset (liability) | $ (83,003) | $ (85,264) |
INCOME TAXES (Uncertain Tax Pro
INCOME TAXES (Uncertain Tax Provisions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Unrecognized income tax benefits [Roll Forward] | |||
Beginning Balance | $ 12,193 | $ 10,537 | $ 9,415 |
Additions based on fiscal year tax positions | 3,350 | 3,380 | 2,849 |
Reductions for prior year tax positions | (120) | (39) | |
Reductions for lapse of statute of limitations | (1,867) | (1,604) | (995) |
Reductions for prior year tax settlements | (693) | ||
Additions for prior year tax positions | 241 | ||
Ending Balance | 13,917 | 12,193 | $ 10,537 |
Impact of recognized tax benefit on effective tax rate, if recognized | 11,900 | ||
Tax reserve for which statute of limitations is expected to expire | 2,900 | ||
Other Tax Expense (Benefit) | 800 | ||
Interest accrued for uncertain tax positions | $ 1,800 | $ 1,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Weighted-average number of common and common equivalent shares outstanding: | |||||||||||
Basic number of common shares outstanding (in shares) | 46,160,935 | 47,593,211 | 49,917,858 | ||||||||
Dilutive effect of unvested restricted stock awards (in shares) | 487,485 | 552,864 | 457,849 | ||||||||
Diluted number of common and common equivalent shares outstanding (in shares) | 46,648,420 | 48,146,075 | 50,375,707 | ||||||||
Basic net income per common share: | |||||||||||
Net income | $ 130,561 | $ 71,770 | $ 37,268 | $ 42,469 | $ 136,144 | $ 82,316 | $ 37,793 | $ 46,595 | $ 282,068 | $ 302,848 | $ 257,709 |
Income allocated to participating securities | (2,148) | (2,407) | (2,046) | ||||||||
Net income available to common shareholders | $ 279,920 | $ 300,441 | $ 255,663 | ||||||||
Basic net income per common share (in dollars per share) | $ 2.85 | $ 1.55 | $ 0.80 | $ 0.90 | $ 2.88 | $ 1.73 | $ 0.78 | $ 0.96 | $ 6.06 | $ 6.31 | $ 5.12 |
Diluted net income per common share: | |||||||||||
Net income | $ 130,561 | $ 71,770 | $ 37,268 | $ 42,469 | $ 136,144 | $ 82,316 | $ 37,793 | $ 46,595 | $ 282,068 | $ 302,848 | $ 257,709 |
Income allocated to participating securities | (2,132) | (2,386) | (2,032) | ||||||||
Net income available to common shareholders | $ 279,936 | $ 300,462 | $ 255,677 | ||||||||
Diluted net income per common share (in dollars per share) | $ 2.83 | $ 1.53 | $ 0.79 | $ 0.89 | $ 2.85 | $ 1.71 | $ 0.77 | $ 0.95 | $ 6 | $ 6.24 | $ 5.08 |
Anti-dilutive shares excluded from dilutive earnings per share calculations (1) | 289,839 | 629,944 | 247,460 |
SEGMENT INFORMATION (Reportable
SEGMENT INFORMATION (Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 |
Percentage of total net sales | 100.00% | 100.00% | 100.00% | ||||||||
Operating income (loss) | $ 170,597 | $ 103,557 | $ 56,970 | $ 60,309 | $ 146,392 | $ 130,448 | $ 64,311 | $ 78,456 | $ 391,433 | $ 419,607 | $ 425,928 |
Operating income as percentage of segment net sales | 11.30% | 12.30% | 13.30% | ||||||||
Corporate expenses | $ (96,798) | $ (94,549) | $ (106,170) | ||||||||
Provisions for special employee compensation | 2,900 | 0 | |||||||||
Provisions for doubtful accounts receivable from customers | 15,801 | 4,663 | 562 | ||||||||
Amortization of H.W. Carter and Sons tradenames | 3,700 | 2,600 | 1,900 | ||||||||
Acquisition-related costs | 3,400 | 2,400 | |||||||||
Sourcing Initiative | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | (300) | (700) | |||||||||
H. W. Carter and Sons Tradenames [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amortization of H.W. Carter and Sons tradenames | 0 | 1,700 | |||||||||
Skip Hop [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 3,600 | 0 | |||||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Insurance Recoveries | 400 | ||||||||||
Wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Provisions for doubtful accounts receivable from customers | 12,800 | ||||||||||
Allowance for Doubtful Accounts Receivable, Recoveries | 1,900 | ||||||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 430,389 | 415,463 | 364,725 | ||||||||
Operating income (loss) | 5,300 | ||||||||||
Wholesale, Retail and International Segment [Member] | Skip Hop [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | 1,200 | ||||||||||
Operating Segments [Member] | Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,851,193 | $ 1,775,378 | $ 1,655,784 | ||||||||
Percentage of total net sales | 53.50% | 52.20% | 51.80% | ||||||||
Operating income (loss) | $ 224,784 | $ 215,640 | $ 211,951 | ||||||||
Operating income as percentage of segment net sales | 12.10% | 12.10% | 12.80% | ||||||||
Restructuring Costs | $ 2,700 | ||||||||||
Provisions for special employee compensation | 12,700 | ||||||||||
Operating Segments [Member] | Wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,180,687 | $ 1,209,663 | $ 1,178,034 | ||||||||
Percentage of total net sales | 34.10% | 35.60% | 36.80% | ||||||||
Operating income (loss) | $ 224,194 | $ 252,090 | $ 260,953 | ||||||||
Operating income as percentage of segment net sales | 19.00% | 20.80% | 22.20% | ||||||||
Provisions for special employee compensation | $ 3,300 | ||||||||||
Operating Segments [Member] | International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 430,389 | $ 415,463 | $ 364,725 | ||||||||
Percentage of total net sales | 12.40% | 12.20% | 11.40% | ||||||||
Operating income (loss) | $ 39,253 | $ 46,426 | $ 59,194 | ||||||||
Operating income as percentage of segment net sales | 9.10% | 11.20% | 16.20% | ||||||||
Provisions for special employee compensation | $ 2,300 |
SEGMENT INFORMATION (Net Invent
SEGMENT INFORMATION (Net Inventory) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Finished goods inventories | $ 574,226 | $ 548,722 |
Operating Segments [Member] | Wholesale [Member] | ||
Segment Reporting Information [Line Items] | ||
Finished goods inventories | 414,174 | 389,484 |
Operating Segments [Member] | Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Finished goods inventories | 96,241 | 93,404 |
Operating Segments [Member] | International | ||
Segment Reporting Information [Line Items] | ||
Finished goods inventories | $ 63,811 | $ 65,834 |
SEGMENT INFORMATION (Net Sales)
SEGMENT INFORMATION (Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 |
Baby [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,239,009 | 1,294,404 | 1,241,452 | ||||||||
Playclothes [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,303,610 | 1,239,546 | 1,214,995 | ||||||||
Sleepwear [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 431,961 | 426,703 | 407,078 | ||||||||
Other Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 487,689 | $ 439,851 | $ 335,018 |
SEGMENT INFORMATION (Revenue) (
SEGMENT INFORMATION (Revenue) (Details) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total net sales | 64.20% | 64.90% |
SEGMENT INFORMATION (Long-Lived
SEGMENT INFORMATION (Long-Lived Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 350,437 | $ 377,924 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 314,679 | 337,369 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 35,758 | $ 40,555 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International long-lived assets, as a percent of total long-lived assets | 87.40% | 87.60% |
FAIR VALUE MEASUREMENTS Foreign
FAIR VALUE MEASUREMENTS Foreign currency contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable Securities | $ 15,700 | $ 16,700 | |
Gain (Loss) on Investments | 1,000 | 100 | |
Foreign Currency Transaction Gain (Loss), Realized | $ 3,200 | ||
Long-term debt, BS | 593,264 | 617,306 | |
Revolving credit facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt | 196,000 | 221,000 | |
Senior notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt | 397,264 | $ 396,306 | |
Long-term debt, fair value | 399,000 | ||
Long-term debt, BS | $ 400,000 |
OTHER CURRENT AND LONG-TERM L_3
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued bonuses and incentive compensation | $ 8,409 | $ 27,566 |
Accrued employee benefits | 16,421 | 21,735 |
Accrued and deferred rent | 19,120 | 18,213 |
Accrued Income Taxes, Current | $ 17,415 | $ 16,252 |
OTHER CURRENT AND LONG-TERM L_4
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred lease incentives | $ 72,345 | $ 75,104 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense under operating leases | $ 165,600 | $ 161,900 | $ 150,600 |
2,018 | 163,963 | ||
2,019 | 150,010 | ||
2,020 | 134,203 | ||
2,021 | 116,773 | ||
2,022 | 102,487 | ||
Thereafter | 235,731 | ||
Total | $ 903,167 | ||
Term of contract | 4 years 10 months 12 days | ||
Commitments under capital leases | $ 1,300 |
VALUATION AND QUALIFYING ACCO_3
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounts receivable reserves [Roll Forward] | |||
Beginning balance | $ 13,736 | $ 8,752 | $ 8,943 |
Additions, charged to expense | 30,280 | 8,204 | 6,088 |
Charges to reserve | (32,150) | (3,220) | (6,279) |
Ending balance | 11,866 | 13,736 | 8,752 |
Accounts receivable reserves [Member] | |||
Accounts receivable reserves [Roll Forward] | |||
Beginning balance | 13,736 | 8,752 | 8,543 |
Additions, charged to expense | 30,280 | 8,204 | 6,088 |
Charges to reserve | (32,150) | (3,220) | (5,879) |
Ending balance | 11,866 | 13,736 | 8,752 |
Sales returns reserve [Member] | |||
Accounts receivable reserves [Roll Forward] | |||
Beginning balance | 0 | 0 | 400 |
Additions, charged to expense | 0 | 0 | 0 |
Charges to reserve | 0 | 0 | (400) |
Ending balance | $ 0 | $ 0 | $ 0 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 | |
Gross profit | 467,598 | 387,450 | 309,958 | 332,477 | 460,837 | 403,578 | 303,247 | 315,692 | 1,497,483 | 1,483,354 | 1,378,519 | |
Royalty income, net | 1,086,379 | 923,907 | 696,197 | 755,786 | 1,027,880 | 948,046 | 691,751 | 732,827 | 3,462,269 | 3,400,504 | 3,198,543 | |
Selling, general, and administrative expenses | 307,358 | 294,117 | 263,343 | 280,162 | 325,508 | 283,480 | 250,146 | 247,794 | 1,144,980 | 1,106,928 | 995,406 | |
Operating income | 170,597 | 103,557 | 56,970 | 60,309 | 146,392 | 130,448 | 64,311 | 78,456 | 391,433 | 419,607 | 425,928 | |
Net income | $ 130,561 | $ 71,770 | $ 37,268 | $ 42,469 | $ 136,144 | $ 82,316 | $ 37,793 | $ 46,595 | $ 282,068 | $ 302,848 | $ 257,709 | |
Basic net income per common share (in dollars per share) | $ 2.85 | $ 1.55 | $ 0.80 | $ 0.90 | $ 2.88 | $ 1.73 | $ 0.78 | $ 0.96 | $ 6.06 | $ 6.31 | $ 5.12 | |
Diluted net income per common share (in dollars per share) | $ 2.83 | $ 1.53 | $ 0.79 | $ 0.89 | $ 2.85 | $ 1.71 | $ 0.77 | $ 0.95 | $ 6 | $ 6.24 | $ 5.08 | |
Provisional income tax benefit | $ 40,000 | |||||||||||
Royalty [Member] | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Net sales | $ 10,357 | $ 10,224 | $ 10,355 | $ 7,994 | $ 11,063 | $ 10,350 | $ 11,210 | $ 10,558 | $ 42,815 | $ 38,930 | 43,181 | $ 42,815 |
Royalty income, net | $ 10,357 | $ 10,224 | $ 10,355 | $ 7,994 | $ 11,063 | $ 10,350 | $ 11,210 | $ 10,558 | $ 42,815 | $ 38,930 | $ 43,181 | $ 42,815 |
GUARANTOR CONDENSED CONSOLIDA_3
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 170,077 | $ 178,494 | $ 299,358 | $ 381,209 |
Accounts receivable, net | 258,259 | 240,561 | ||
Intercompany receivable | 0 | 0 | ||
Finished goods inventories | 574,226 | 548,722 | ||
Prepaid expenses and other current assets | 40,396 | 52,935 | ||
Total current assets | 1,042,958 | 1,020,712 | ||
Property, plant, and equipment, net | 350,437 | 377,924 | ||
Goodwill | 227,101 | 230,424 | ||
Tradenames, net | 365,692 | 365,551 | ||
Customer relationships, net | 44,511 | 47,996 | ||
Other assets | 28,159 | 28,435 | ||
Intercompany long term receivable | 0 | 0 | ||
Intercompany long term note receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,058,858 | 2,071,042 | ||
Current liabilities: | ||||
Accounts payable | 199,076 | 182,114 | ||
Intercompany Liabilities | 0 | |||
Inventory | 0 | |||
Other current liabilities | 128,345 | 149,134 | ||
Total current liabilities | 327,421 | 331,248 | ||
Long-term debt, net | 593,264 | 617,306 | ||
Deferred income taxes | 87,347 | 84,944 | ||
Goodwill | 0 | 0 | ||
Intercompany long term note payable | 0 | 0 | ||
Other long-term liabilities | 181,393 | 180,128 | ||
Total stockholder's equity | 869,433 | 857,416 | 788,363 | 875,687 |
Total liabilities and stockholders’ equity | 2,058,858 | 2,071,042 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable | (316,850) | (308,689) | ||
Finished goods inventories | (18,665) | (20,468) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (335,515) | (329,157) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Intercompany long term receivable | (541,629) | (441,294) | ||
Intercompany long term note receivable | (100,000) | (100,000) | ||
Investment in subsidiaries | (2,346,216) | (2,142,634) | ||
Total assets | (3,323,360) | (3,013,085) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany Liabilities | (316,850) | |||
Inventory | (308,689) | |||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (316,850) | (308,689) | ||
Long-term debt, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill | (541,629) | (441,294) | ||
Intercompany long term note payable | (100,000) | (100,000) | ||
Other long-term liabilities | 0 | 0 | ||
Total stockholder's equity | (2,364,881) | (2,163,102) | ||
Total liabilities and stockholders’ equity | (3,323,360) | (3,013,085) | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Finished goods inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Intercompany long term receivable | 0 | 0 | ||
Intercompany long term note receivable | 0 | 0 | ||
Investment in subsidiaries | 869,433 | 857,416 | ||
Total assets | 869,433 | 857,416 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany Liabilities | 0 | |||
Inventory | 0 | |||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intercompany long term note payable | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total stockholder's equity | 869,433 | 857,416 | ||
Total liabilities and stockholders’ equity | 869,433 | 857,416 | ||
Subsidiary Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 118,600 | 129,463 | 229,056 | 325,771 |
Accounts receivable, net | 203,546 | 182,944 | ||
Intercompany receivable | 89,201 | 87,702 | ||
Finished goods inventories | 329,989 | 296,065 | ||
Prepaid expenses and other current assets | 8,483 | 17,012 | ||
Total current assets | 749,819 | 713,186 | ||
Property, plant, and equipment, net | 133,765 | 147,858 | ||
Goodwill | 136,570 | 136,570 | ||
Tradenames, net | 223,073 | 223,251 | ||
Customer relationships, net | 0 | 0 | ||
Other assets | 24,399 | 23,884 | ||
Intercompany long term receivable | 0 | 0 | ||
Intercompany long term note receivable | 100,000 | 100,000 | ||
Investment in subsidiaries | 1,173,415 | 1,053,224 | ||
Total assets | 2,541,041 | 2,397,973 | ||
Current liabilities: | ||||
Accounts payable | 137,524 | 115,658 | ||
Intercompany Liabilities | 220,033 | |||
Inventory | 215,573 | |||
Other current liabilities | 35,311 | 11,805 | ||
Total current liabilities | 392,868 | 343,036 | ||
Long-term debt, net | 593,264 | 617,306 | ||
Deferred income taxes | 46,640 | 46,619 | ||
Goodwill | 541,629 | 441,294 | ||
Intercompany long term note payable | 0 | 0 | ||
Other long-term liabilities | 78,542 | 71,834 | ||
Total stockholder's equity | 888,098 | 877,884 | ||
Total liabilities and stockholders’ equity | 2,541,041 | 2,397,973 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 14,735 | 10,030 | 11,817 | 14,652 |
Accounts receivable, net | 38,753 | 40,286 | ||
Intercompany receivable | 156,965 | 162,007 | ||
Finished goods inventories | 199,091 | 206,556 | ||
Prepaid expenses and other current assets | 23,987 | 21,354 | ||
Total current assets | 433,531 | 440,233 | ||
Property, plant, and equipment, net | 180,914 | 189,511 | ||
Goodwill | 45,368 | 45,368 | ||
Tradenames, net | 142,619 | 142,300 | ||
Customer relationships, net | 41,820 | 44,996 | ||
Other assets | 1,321 | 2,392 | ||
Intercompany long term receivable | 541,629 | 441,294 | ||
Intercompany long term note receivable | 0 | 0 | ||
Investment in subsidiaries | 303,368 | 231,994 | ||
Total assets | 1,690,570 | 1,538,088 | ||
Current liabilities: | ||||
Accounts payable | 44,066 | 49,313 | ||
Intercompany Liabilities | 93,790 | |||
Inventory | 91,697 | |||
Other current liabilities | 78,595 | 122,989 | ||
Total current liabilities | 216,451 | 263,999 | ||
Long-term debt, net | 0 | 0 | ||
Deferred income taxes | 40,327 | 37,647 | ||
Goodwill | 0 | 0 | ||
Intercompany long term note payable | 100,000 | 100,000 | ||
Other long-term liabilities | 91,218 | 92,570 | ||
Total stockholder's equity | 1,242,574 | 1,043,872 | ||
Total liabilities and stockholders’ equity | 1,690,570 | 1,538,088 | ||
Non-Guarantors Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 36,742 | 39,001 | $ 58,485 | $ 40,786 |
Accounts receivable, net | 15,960 | 17,331 | ||
Intercompany receivable | 70,684 | 58,980 | ||
Finished goods inventories | 63,811 | 66,569 | ||
Prepaid expenses and other current assets | 7,926 | 14,569 | ||
Total current assets | 195,123 | 196,450 | ||
Property, plant, and equipment, net | 35,758 | 40,555 | ||
Goodwill | 45,163 | 48,486 | ||
Tradenames, net | 0 | 0 | ||
Customer relationships, net | 2,691 | 3,000 | ||
Other assets | 2,439 | 2,159 | ||
Intercompany long term receivable | 0 | 0 | ||
Intercompany long term note receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 281,174 | 290,650 | ||
Current liabilities: | ||||
Accounts payable | 17,486 | 17,143 | ||
Intercompany Liabilities | 3,027 | |||
Inventory | 1,419 | |||
Other current liabilities | 14,439 | 14,340 | ||
Total current liabilities | 34,952 | 32,902 | ||
Long-term debt, net | 0 | 0 | ||
Deferred income taxes | 380 | 678 | ||
Goodwill | 0 | 0 | ||
Intercompany long term note payable | 0 | 0 | ||
Other long-term liabilities | 11,633 | 15,724 | ||
Total stockholder's equity | 234,209 | 241,346 | ||
Total liabilities and stockholders’ equity | $ 281,174 | $ 290,650 |
GUARANTOR CONDENSED CONSOLIDA_4
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | $ 1,086,379 | $ 923,907 | $ 696,197 | $ 755,786 | $ 1,027,880 | $ 948,046 | $ 691,751 | $ 732,827 | $ 3,462,269 | $ 3,400,504 | $ 3,198,543 | |
Cost of goods sold | 1,964,786 | 1,917,150 | 1,820,024 | |||||||||
Gross profit | 467,598 | 387,450 | 309,958 | 332,477 | 460,837 | 403,578 | 303,247 | 315,692 | 1,497,483 | 1,483,354 | 1,378,519 | |
Royalty income, net | 1,086,379 | 923,907 | 696,197 | 755,786 | 1,027,880 | 948,046 | 691,751 | 732,827 | 3,462,269 | 3,400,504 | 3,198,543 | |
Selling, general, and administrative expenses | 307,358 | 294,117 | 263,343 | 280,162 | 325,508 | 283,480 | 250,146 | 247,794 | 1,144,980 | 1,106,928 | 995,406 | |
Operating income | 170,597 | 103,557 | 56,970 | 60,309 | 146,392 | 130,448 | 64,311 | 78,456 | 391,433 | 419,607 | 425,928 | |
Interest expense | 34,569 | 30,044 | 27,044 | |||||||||
Interest income | (527) | (345) | (563) | |||||||||
(Income) loss in subsidiaries | 0 | 0 | 0 | |||||||||
Other (income) expense, net | 1,416 | (1,164) | 4,007 | |||||||||
Income before income taxes | 355,975 | 391,072 | 395,440 | |||||||||
Provision for income taxes | 73,907 | 88,224 | 137,731 | |||||||||
Net income | 130,561 | 71,770 | 37,268 | 42,469 | 136,144 | 82,316 | 37,793 | 46,595 | 282,068 | 302,848 | 257,709 | |
Consolidating Adjustments [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | (945,941) | (850,443) | (746,150) | |||||||||
Cost of goods sold | (924,720) | (829,625) | (727,148) | |||||||||
Gross profit | (21,221) | (20,818) | (19,002) | |||||||||
Royalty income, net | (945,941) | (850,443) | (746,150) | |||||||||
Selling, general, and administrative expenses | (35,704) | (37,510) | (37,567) | |||||||||
Operating income | 1,803 | 5,332 | 8,992 | |||||||||
Interest expense | (5,308) | (5,308) | (5,308) | |||||||||
Interest income | 5,308 | 5,308 | 5,308 | |||||||||
(Income) loss in subsidiaries | 392,267 | 367,222 | 282,209 | |||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||
Income before income taxes | (390,464) | (361,890) | (273,217) | |||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||
Net income | (390,464) | (361,890) | (273,217) | |||||||||
Parent [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of goods sold | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Royalty income, net | 0 | 0 | 0 | |||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Interest income | 0 | 0 | 0 | |||||||||
(Income) loss in subsidiaries | (282,068) | (302,848) | (257,709) | |||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||
Income before income taxes | 282,068 | 302,848 | 257,709 | |||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||
Net income | 282,068 | 302,848 | 257,709 | |||||||||
Subsidiary Issuer [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 1,936,576 | 1,922,930 | 1,881,918 | |||||||||
Cost of goods sold | 1,458,934 | 1,406,517 | 1,358,209 | |||||||||
Gross profit | 477,642 | 516,413 | 523,709 | |||||||||
Royalty income, net | 1,936,576 | 1,922,930 | 1,881,918 | |||||||||
Selling, general, and administrative expenses | 191,068 | 181,129 | 177,605 | |||||||||
Operating income | 319,532 | 370,100 | 378,832 | |||||||||
Interest expense | 34,523 | 29,758 | 26,475 | |||||||||
Interest income | (5,329) | (5,497) | (5,756) | |||||||||
(Income) loss in subsidiaries | (38,528) | (25,426) | 4,808 | |||||||||
Other (income) expense, net | 495 | (1,154) | (382) | |||||||||
Income before income taxes | 328,371 | 372,419 | 353,687 | |||||||||
Provision for income taxes | 48,106 | 74,903 | 104,970 | |||||||||
Net income | 280,265 | 297,516 | 248,717 | |||||||||
Guarantor Subsidiaries [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 2,039,889 | 1,955,703 | 1,762,252 | |||||||||
Cost of goods sold | 1,217,110 | 1,143,867 | 1,033,403 | |||||||||
Gross profit | 822,779 | 811,836 | 728,849 | |||||||||
Royalty income, net | 2,039,889 | 1,955,703 | 1,762,252 | |||||||||
Selling, general, and administrative expenses | 856,665 | 837,252 | 753,874 | |||||||||
Operating income | (15,234) | (5,691) | (5,365) | |||||||||
Interest expense | 5,310 | 5,498 | 5,435 | |||||||||
Interest income | (2) | 0 | 0 | |||||||||
(Income) loss in subsidiaries | (71,671) | (38,948) | (29,308) | |||||||||
Other (income) expense, net | (189) | 1,281 | 482 | |||||||||
Income before income taxes | 51,318 | 26,478 | 18,026 | |||||||||
Provision for income taxes | 12,790 | 1,052 | 22,834 | |||||||||
Net income | 38,528 | 25,426 | (4,808) | |||||||||
Non-Guarantors Subsidiaries [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 431,745 | 372,314 | 300,523 | |||||||||
Cost of goods sold | 213,462 | 196,391 | 155,560 | |||||||||
Gross profit | 218,283 | 175,923 | 144,963 | |||||||||
Royalty income, net | 431,745 | 372,314 | 300,523 | |||||||||
Selling, general, and administrative expenses | 132,951 | 126,057 | 101,494 | |||||||||
Operating income | 85,332 | 49,866 | 43,469 | |||||||||
Interest expense | 44 | 96 | 442 | |||||||||
Interest income | (504) | (156) | (115) | |||||||||
(Income) loss in subsidiaries | 0 | 0 | 0 | |||||||||
Other (income) expense, net | 1,110 | (1,291) | 3,907 | |||||||||
Income before income taxes | 84,682 | 51,217 | 39,235 | |||||||||
Provision for income taxes | 13,011 | 12,269 | 9,927 | |||||||||
Net income | 71,671 | 38,948 | 29,308 | |||||||||
Royalty [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 10,357 | 10,224 | 10,355 | 7,994 | 11,063 | 10,350 | 11,210 | 10,558 | $ 42,815 | 38,930 | 43,181 | 42,815 |
Royalty income, net | $ 10,357 | $ 10,224 | $ 10,355 | $ 7,994 | $ 11,063 | $ 10,350 | $ 11,210 | $ 10,558 | 42,815 | 38,930 | 43,181 | $ 42,815 |
Royalty [Member] | Consolidating Adjustments [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | (9,573) | (12,680) | (11,360) | |||||||||
Royalty income, net | (9,573) | (12,680) | (11,360) | |||||||||
Royalty [Member] | Parent [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Royalty income, net | 0 | 0 | 0 | |||||||||
Royalty [Member] | Subsidiary Issuer [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 32,728 | 32,958 | 34,816 | |||||||||
Royalty income, net | 32,728 | 32,958 | 34,816 | |||||||||
Royalty [Member] | Guarantor Subsidiaries [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 19,660 | 18,652 | 19,725 | |||||||||
Royalty income, net | 19,660 | 18,652 | 19,725 | |||||||||
Royalty [Member] | Non-Guarantors Subsidiaries [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Royalty income, net | $ 0 | $ 0 | $ 0 |
GUARANTOR CONDENSED CONSOLIDA_5
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Comprehensive Income) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 130,561,000 | $ 71,770,000 | $ 37,268,000 | $ 42,469,000 | $ 136,144,000 | $ 82,316,000 | $ 37,793,000 | $ 46,595,000 | $ 282,068,000 | $ 302,848,000 | $ 257,709,000 |
Post-retirement benefit plans | (67,000) | (692,000) | (335,000) | ||||||||
Foreign currency translation adjustments | (11,679,000) | 6,339,000 | 1,962,000 | ||||||||
Comprehensive income | 270,322,000 | 308,495,000 | 259,336,000 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (390,464,000) | (361,890,000) | (273,217,000) | ||||||||
Post-retirement benefit plans | 349,000 | 1,122,000 | 1,001,000 | ||||||||
Foreign currency translation adjustments | 35,037,000 | (19,017,000) | (5,886,000) | ||||||||
Comprehensive income | (355,078,000) | (379,785,000) | (278,102,000) | ||||||||
Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 282,068,000 | 302,848,000 | 257,709,000 | ||||||||
Post-retirement benefit plans | (67,000) | (692,000) | (335,000) | ||||||||
Foreign currency translation adjustments | (11,679,000) | 6,339,000 | 1,962,000 | ||||||||
Comprehensive income | 270,322,000 | 308,495,000 | 259,336,000 | ||||||||
Subsidiary Issuer [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 280,265,000 | 297,516,000 | 248,717,000 | ||||||||
Post-retirement benefit plans | (67,000) | (692,000) | (335,000) | ||||||||
Foreign currency translation adjustments | (11,679,000) | 6,339,000 | 1,962,000 | ||||||||
Comprehensive income | 268,519,000 | 303,163,000 | 250,344,000 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 38,528,000 | 25,426,000 | (4,808,000) | ||||||||
Post-retirement benefit plans | (282,000) | (430,000) | (666,000) | ||||||||
Foreign currency translation adjustments | (11,679,000) | 6,339,000 | 1,962,000 | ||||||||
Comprehensive income | 26,567,000 | 31,335,000 | (3,512,000) | ||||||||
Non-Guarantors Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 71,671,000 | 38,948,000 | 29,308,000 | ||||||||
Post-retirement benefit plans | 0 | 0 | 0 | ||||||||
Foreign currency translation adjustments | (11,679,000) | 6,339,000 | 1,962,000 | ||||||||
Comprehensive income | $ 59,992,000 | $ 45,287,000 | $ 31,270,000 |
GUARANTOR CONDENSED CONSOLIDA_6
GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 356,198 | $ 329,621 | $ 369,229 |
Cash flows from investing activities: | |||
Capital expenditures | (63,783) | (69,473) | (88,556) |
Acquisitions of businesses, net of cash acquired | (158,457) | 0 | |
Payments for (Proceeds from) Productive Assets | 96 | ||
Intercompany investing activity | 0 | 0 | 0 |
Disposals of property, plant, and equipment | 380 | 15 | 216 |
Net cash used in investing activities | (63,307) | (227,915) | (88,340) |
Cash flows from financing activities: | |||
Intercompany financing activity | 0 | 0 | 0 |
Borrowings under secured revolving credit facility | 290,000 | 200,000 | 0 |
Payments on secured revolving credit facility | (315,000) | (163,965) | 0 |
Payments of debt issuance costs | (968) | (2,119) | 0 |
Dividends paid | (83,717) | (70,914) | (66,355) |
Repurchases of common stock | (193,028) | (188,762) | (300,445) |
Income tax benefit from stock-based compensation | 0 | 0 | 4,800 |
Withholdings of taxes from vesting of restricted stock | (6,830) | (5,753) | (8,673) |
Proceeds from exercises of stock options | 10,597 | 8,438 | 7,166 |
Net cash used in financing activities | (298,946) | (223,075) | (363,507) |
Net effect of exchange rate changes on cash | (2,362) | 505 | 767 |
Net increase (decrease) in cash and cash equivalents | (8,417) | (120,864) | (81,851) |
Cash and cash equivalents, beginning of fiscal year | 178,494 | 299,358 | 381,209 |
Cash and cash equivalents, end of fiscal year | 170,077 | 178,494 | 299,358 |
Consolidating Adjustments [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | ||
Payments for (Proceeds from) Productive Assets | 0 | ||
Intercompany investing activity | (276,745) | (259,676) | (366,800) |
Disposals of property, plant, and equipment | 0 | 0 | 0 |
Net cash used in investing activities | (276,745) | (259,676) | (366,800) |
Cash flows from financing activities: | |||
Intercompany financing activity | 276,745 | 259,676 | 366,800 |
Borrowings under secured revolving credit facility | 0 | 0 | |
Payments on secured revolving credit facility | 0 | 0 | |
Payments of debt issuance costs | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Income tax benefit from stock-based compensation | 0 | ||
Withholdings of taxes from vesting of restricted stock | 0 | 0 | 0 |
Proceeds from exercises of stock options | 0 | 0 | 0 |
Net cash used in financing activities | 276,745 | 259,676 | 366,800 |
Net effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of fiscal year | 0 | 0 | 0 |
Cash and cash equivalents, end of fiscal year | 0 | 0 | 0 |
Parent [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | ||
Payments for (Proceeds from) Productive Assets | 0 | ||
Intercompany investing activity | 272,978 | 256,991 | 368,307 |
Disposals of property, plant, and equipment | 0 | 0 | 0 |
Net cash used in investing activities | 272,978 | 256,991 | 368,307 |
Cash flows from financing activities: | |||
Intercompany financing activity | 0 | 0 | 0 |
Borrowings under secured revolving credit facility | 0 | 0 | |
Payments on secured revolving credit facility | 0 | 0 | |
Payments of debt issuance costs | 0 | 0 | |
Dividends paid | (83,717) | (70,914) | (66,355) |
Repurchases of common stock | (193,028) | (188,762) | (300,445) |
Income tax benefit from stock-based compensation | 0 | ||
Withholdings of taxes from vesting of restricted stock | (6,830) | (5,753) | (8,673) |
Proceeds from exercises of stock options | 10,597 | 8,438 | 7,166 |
Net cash used in financing activities | (272,978) | (256,991) | (368,307) |
Net effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of fiscal year | 0 | 0 | 0 |
Cash and cash equivalents, end of fiscal year | 0 | 0 | 0 |
Subsidiary Issuer [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 202,214 | 167,000 | 206,841 |
Cash flows from investing activities: | |||
Capital expenditures | (17,589) | (21,690) | (22,934) |
Acquisitions of businesses, net of cash acquired | (143,270) | ||
Payments for (Proceeds from) Productive Assets | 0 | ||
Intercompany investing activity | (815) | (25,606) | 480 |
Disposals of property, plant, and equipment | 0 | 0 | 23 |
Net cash used in investing activities | (18,404) | (190,566) | (22,431) |
Cash flows from financing activities: | |||
Intercompany financing activity | (168,705) | (128,908) | (283,907) |
Borrowings under secured revolving credit facility | 290,000 | 200,000 | |
Payments on secured revolving credit facility | (315,000) | (145,000) | |
Payments of debt issuance costs | (968) | (2,119) | |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Income tax benefit from stock-based compensation | 2,782 | ||
Withholdings of taxes from vesting of restricted stock | 0 | 0 | 0 |
Proceeds from exercises of stock options | 0 | 0 | 0 |
Net cash used in financing activities | (194,673) | (76,027) | (281,125) |
Net effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (10,863) | (99,593) | (96,715) |
Cash and cash equivalents, beginning of fiscal year | 129,463 | 229,056 | 325,771 |
Cash and cash equivalents, end of fiscal year | 118,600 | 129,463 | 229,056 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 60,391 | 118,814 | 127,018 |
Cash flows from investing activities: | |||
Capital expenditures | (39,657) | (38,899) | (55,072) |
Acquisitions of businesses, net of cash acquired | 746 | ||
Payments for (Proceeds from) Productive Assets | 0 | ||
Intercompany investing activity | 3,024 | 894 | (2,118) |
Disposals of property, plant, and equipment | 370 | 15 | 0 |
Net cash used in investing activities | (36,263) | (37,244) | (57,190) |
Cash flows from financing activities: | |||
Intercompany financing activity | (97,945) | (83,357) | (74,681) |
Borrowings under secured revolving credit facility | 0 | 0 | |
Payments on secured revolving credit facility | 0 | 0 | |
Payments of debt issuance costs | 0 | 0 | |
Dividends paid | 78,522 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Income tax benefit from stock-based compensation | 2,018 | ||
Withholdings of taxes from vesting of restricted stock | 0 | 0 | 0 |
Proceeds from exercises of stock options | 0 | 0 | 0 |
Net cash used in financing activities | (19,423) | (83,357) | (72,663) |
Net effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 4,705 | (1,787) | (2,835) |
Cash and cash equivalents, beginning of fiscal year | 10,030 | 11,817 | 14,652 |
Cash and cash equivalents, end of fiscal year | 14,735 | 10,030 | 11,817 |
Non-Guarantors Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 93,593 | 43,807 | 35,370 |
Cash flows from investing activities: | |||
Capital expenditures | (6,537) | (8,884) | (10,550) |
Acquisitions of businesses, net of cash acquired | (15,933) | ||
Payments for (Proceeds from) Productive Assets | 96 | ||
Intercompany investing activity | 1,558 | 27,397 | 131 |
Disposals of property, plant, and equipment | 10 | 0 | 193 |
Net cash used in investing activities | (4,873) | 2,580 | (10,226) |
Cash flows from financing activities: | |||
Intercompany financing activity | (10,095) | (47,411) | (8,212) |
Borrowings under secured revolving credit facility | 0 | 0 | |
Payments on secured revolving credit facility | 0 | (18,965) | |
Payments of debt issuance costs | 0 | 0 | |
Dividends paid | (78,522) | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Income tax benefit from stock-based compensation | 0 | ||
Withholdings of taxes from vesting of restricted stock | 0 | 0 | 0 |
Proceeds from exercises of stock options | 0 | 0 | 0 |
Net cash used in financing activities | (88,617) | (66,376) | (8,212) |
Net effect of exchange rate changes on cash | (2,362) | 505 | 767 |
Net increase (decrease) in cash and cash equivalents | (2,259) | (19,484) | 17,699 |
Cash and cash equivalents, beginning of fiscal year | 39,001 | 58,485 | 40,786 |
Cash and cash equivalents, end of fiscal year | $ 36,742 | $ 39,001 | $ 58,485 |