DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Feb. 18, 2022 | Jul. 03, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 1, 2022 | ||
Current Fiscal Year End Date | --01-01 | ||
Document Transition Report | false | ||
Entity File Number | 001-31829 | ||
Entity Registrant Name | CARTER’S, INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3912933 | ||
Entity Address, Address Line One | Phipps Tower | ||
Entity Address, Address Line Two | 3438 Peachtree Road NE | ||
Entity Address, Address Line Three | Suite 1800 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30326 | ||
City Area Code | 678 | ||
Local Phone Number | 791-1000 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | CRI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,415,209,703 | ||
Entity Common Stock, Shares Outstanding (in shares) | 40,910,501 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the Annual Meeting of shareholders of Carter’s, Inc., scheduled to be held on May 18, 2022, will be incorporated by reference in Part III of this Form 10-K. Carter’s, Inc. intends to file such proxy statement with the Securities and Exchange Commission not later than 120 days after its fiscal year ended January 1, 2022. | ||
Entity Central Index Key | 0001060822 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Jan. 01, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Atlanta, Georgia |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 984,294 | $ 1,102,323 |
Receivables, Net, Current | 231,354 | 186,512 |
Inventory, Net | 647,742 | 599,262 |
Prepaid expenses and other current assets | 50,131 | 57,927 |
Total current assets | 1,913,521 | 1,946,024 |
Property, plant, and equipment, net | 216,004 | 262,345 |
Operating lease assets | 487,748 | 593,008 |
Tradenames, net | 307,643 | 307,893 |
Goodwill | 212,023 | 211,776 |
Customer relationships, net | 33,969 | 37,510 |
Other assets | 30,889 | 34,024 |
Total assets | 3,201,797 | 3,392,580 |
Current liabilities: | ||
Accounts payable | 407,044 | 472,140 |
Current operating lease liabilities | 147,537 | 185,152 |
Other current liabilities | 176,449 | 135,240 |
Total current liabilities | 731,030 | 792,532 |
Long-term debt, net | 991,370 | 989,530 |
Deferred Income Tax Liabilities, Net | 40,910 | 52,770 |
Long-term operating lease liabilities | 441,861 | 554,497 |
Other long-term liabilities | 46,440 | 65,218 |
Total liabilities | 2,251,611 | 2,454,547 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding at January 01, 2022 and January 02, 2021 | 0 | 0 |
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 41,148,870 and 43,780,075 shares issued and outstanding at January 1, 2022 and January 2, 2021, respectively | 411 | 438 |
Additional Paid in Capital | 0 | 17,752 |
Accumulated other comprehensive loss | (28,897) | (32,760) |
Retained earnings | 978,672 | 952,603 |
Stockholders' Equity Attributable to Parent, Total | 950,186 | 938,033 |
Total liabilities and stockholders’ equity | $ 3,201,797 | $ 3,392,580 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,281 | $ 5,940 |
Inventory Valuation Reserves | $ 14,378 | $ 14,206 |
Preferred stock; par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock; outstanding (in shares) | 0 | 0 |
Common stock, voting; par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, voting; shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock voting; shares issued (in shares) | 41,148,870 | 43,780,075 |
Common stock voting; shares outstanding (in shares) | 41,148,870 | 43,780,075 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 3,486,440 | $ 3,024,334 | $ 3,519,286 |
Cost of goods sold | 1,832,045 | 1,696,224 | 2,008,630 |
Adverse purchase commitments (inventory and raw materials), net | (7,879) | 14,668 | 2,106 |
Gross profit | 1,662,274 | 1,313,442 | 1,508,550 |
Royalty income, net | 28,681 | 26,276 | 34,637 |
Selling, general, and administrative expenses | 1,193,876 | 1,105,607 | 1,140,515 |
Goodwill impairment | 0 | 17,742 | 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 26,500 | 30,800 |
Operating income | 497,079 | 189,869 | 371,872 |
Interest expense | 60,294 | 56,062 | 37,617 |
Interest income | (1,096) | (1,515) | (1,303) |
Loss on extinguishment of debt | 0 | 0 | 7,823 |
Income before income taxes | 438,290 | 134,984 | 327,952 |
Income tax provision | 98,542 | 25,267 | 64,150 |
Net income | $ 339,748 | $ 109,717 | $ 263,802 |
Basic net income per common share (in USD per share) | $ 7.83 | $ 2.51 | $ 5.89 |
Diluted net income per common share (in USD per share) | 7.81 | 2.50 | 5.85 |
Dividend declared and paid per common share | $ 1.40 | $ 0.60 | $ 2 |
Other (income) expense, net | $ (409) | $ 338 | $ (217) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 339,748 | $ 109,717 | $ 263,802 |
Other comprehensive income: | |||
Other Comprehensive Income (Loss), Defined Benefit Plans, Net Unrealized Gain (Loss) Arising During Period, Net of Tax | 3,973 | (2,197) | 746 |
Other Comprehensive Income (Loss), Postretirement Benefit Obligations, Net Unrealized Gain (Loss) Arising During Period, Net of Tax | (115) | (144) | (483) |
Foreign currency translation adjustments | 5 | 5,215 | 6,442 |
Total other comprehensive income | 3,863 | 2,874 | 6,705 |
Comprehensive income | $ 343,611 | $ 112,591 | $ 270,507 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Pension Plans | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ (1,220) | $ 680 | $ (230) |
Postretirement Benefit | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ 40 | $ 39 | $ 150 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||
Cash flows from operating activities: | ||||
Net income | $ 339,748 | $ 109,717 | $ 263,802 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation on property, plant, and equipment | 90,378 | 90,284 | 92,207 | |
Amortization of intangible assets | 3,730 | 3,715 | 3,747 | |
Provisions for (recoveries of) excess and obsolete inventory, net | [1] | 4,042 | 4,866 | (5,791) |
Goodwill impairment | 0 | 17,742 | 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 26,500 | 30,800 | |
Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries | 213 | 11,374 | 452 | |
Amortization of debt issuance costs | 3,052 | 2,372 | 1,437 | |
Stock-based compensation expense | 21,029 | 12,830 | 16,529 | |
Unrealized foreign currency exchange loss (gain), net | 371 | 361 | (564) | |
Accounts Receivable, Credit Loss Expense (Reversal) | 1,345 | 6,072 | (220) | |
Loss on extinguishment of debt | 0 | 0 | 7,823 | |
Unrealized gains on investments | (2,279) | (1,974) | (3,977) | |
Deferred Income Tax Expense (Benefit) | (13,532) | (23,254) | (13,300) | |
Effect of changes in operating assets and liabilities: | ||||
Accounts receivable | (46,480) | 58,275 | 8,121 | |
Finished goods inventories | [1] | (52,914) | (8,063) | (10,892) |
Prepaid expenses and other assets | 6,866 | (8,558) | (9,782) | |
Accounts payable and other liabilities | (87,311) | 286,235 | 6,823 | |
Net cash provided by operating activities | 268,258 | 588,494 | 387,215 | |
Cash flows from investing activities: | ||||
Capital expenditures | (37,442) | (32,871) | (61,419) | |
Proceeds from sale of investments | [2] | 5,000 | 1,400 | 0 |
Disposals and recoveries from property, plant, and equipment | 0 | 0 | 749 | |
Net cash used in investing activities | (32,442) | (31,471) | (60,670) | |
Cash flows from financing activities: | ||||
Proceeds from senior notes due 2025 | 0 | 500,000 | 0 | |
Proceeds from senior notes due 2027 | 0 | 0 | 500,000 | |
Payment of senior notes due 2021 | 0 | 0 | (400,000) | |
Premiums paid to extinguish debt | 0 | 0 | (5,252) | |
Payments of debt issuance costs | (223) | (7,639) | (5,793) | |
Borrowings under secured revolving credit facility | 0 | 644,000 | 265,000 | |
Payments on secured revolving credit facility | 0 | (744,000) | (361,000) | |
Repurchase of common stock | (299,339) | (45,255) | (196,910) | |
Dividends paid | (60,124) | (26,260) | (89,591) | |
Withholdings from vesting of restricted stock | (4,019) | (5,011) | (4,328) | |
Proceeds from exercise of stock options | 10,995 | 9,008 | 14,490 | |
Net cash (used in) provided by financing activities | (352,710) | 324,843 | (283,384) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (1,135) | 6,146 | 1,073 | |
Net (decrease) increase in cash and cash equivalents | (118,029) | 888,012 | 44,234 | |
Cash and cash equivalents, beginning of fiscal year | 1,102,323 | 214,311 | 170,077 | |
Cash and cash equivalents, end of fiscal year | $ 984,294 | $ 1,102,323 | $ 214,311 | |
[1] | Cash flows for fiscal 2019 were revised to reflect the reclassification of $11.6 million related to the recoveries of excess and obsolete inventory. | |||
[2] | Cash flows for fiscal 2020 were revised to reflect the reclassification of $1.4 million proceeds from sale of investments from cash flows from operating activities to cash flows from investing activities. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | |
Balance at Dec. 29, 2018 | $ 869,433 | $ 456 | $ 0 | $ (40,839) | $ 909,816 | |
Balance (in shares) at Dec. 29, 2018 | 45,629,014 | |||||
Exercise of stock options | 14,490 | $ 3 | 14,487 | 0 | 0 | |
Exercise of stock options (in shares) | 274,960 | |||||
Withholdings from vesting of restricted stock | (4,328) | $ 0 | (4,328) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (46,429) | |||||
Restricted stock activity | 0 | $ 2 | (2) | 0 | 0 | |
Restricted stock activity (in shares) | 213,030 | |||||
Stock-based compensation expense | 16,529 | $ 0 | 16,529 | 0 | 0 | |
Repurchases of common stock | $ (196,910) | $ (21) | (26,686) | 0 | (170,203) | |
Repurchase of common stock (in shares) | (2,107,472) | |||||
Dividend declared and paid per common share | $ 2 | |||||
Cash dividends declared and paid of $1.40 per common share | $ 89,591 | $ 0 | 0 | 0 | 89,591 | |
Cash dividends declared and paid of $0.60 per common share | (89,591) | 0 | 0 | 0 | (89,591) | |
Comprehensive income | 270,507 | 0 | 0 | 6,705 | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | 0 | $ 0 | 0 | (1,500) | 1,500 |
Net income | 263,802 | 263,802 | ||||
Balance (in shares) at Dec. 28, 2019 | 43,963,103 | |||||
Balance at Dec. 28, 2019 | 880,130 | $ 440 | 0 | (35,634) | 915,324 | |
Exercise of stock options | 9,008 | $ 2 | 9,006 | 0 | 0 | |
Exercise of stock options (in shares) | 193,645 | |||||
Withholdings from vesting of restricted stock | (5,011) | $ 0 | (5,011) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (47,337) | |||||
Restricted stock activity | 0 | $ 1 | (1) | 0 | 0 | |
Restricted stock activity (in shares) | 145,348 | |||||
Stock-based compensation expense | 12,830 | $ 0 | 12,830 | 0 | 0 | |
Repurchases of common stock | $ (45,255) | $ (5) | 928 | 0 | (46,178) | |
Repurchase of common stock (in shares) | (474,684) | |||||
Dividend declared and paid per common share | $ 0.60 | |||||
Cash dividends declared and paid of $1.40 per common share | $ 26,260 | $ 0 | 0 | 0 | 26,260 | |
Cash dividends declared and paid of $0.60 per common share | (26,260) | 0 | 0 | 0 | (26,260) | |
Comprehensive income | 112,591 | $ 0 | 0 | 2,874 | ||
Net income | $ 109,717 | 109,717 | ||||
Balance (in shares) at Jan. 02, 2021 | 43,780,075 | 43,780,075 | ||||
Balance at Jan. 02, 2021 | $ 938,033 | $ 438 | 17,752 | (32,760) | 952,603 | |
Exercise of stock options | $ 10,995 | $ 1 | 10,994 | 0 | 0 | |
Exercise of stock options (in shares) | 178,803 | 178,803 | ||||
Withholdings from vesting of restricted stock | $ (4,019) | $ 0 | (4,019) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (41,523) | |||||
Restricted stock activity | 0 | $ 2 | (2) | 0 | 0 | |
Restricted stock activity (in shares) | 199,134 | |||||
Stock-based compensation expense | 21,029 | $ 0 | 21,029 | 0 | 0 | |
Repurchases of common stock | $ (299,339) | $ (30) | (45,754) | 0 | (253,555) | |
Repurchase of common stock (in shares) | (2,967,619) | |||||
Dividend declared and paid per common share | $ 1.40 | |||||
Cash dividends declared and paid of $1.40 per common share | $ 60,124 | $ 0 | 0 | 0 | 60,124 | |
Cash dividends declared and paid of $0.60 per common share | (60,124) | 0 | 0 | 0 | (60,124) | |
Comprehensive income | 343,611 | $ 0 | 0 | 3,863 | ||
Net income | $ 339,748 | 339,748 | ||||
Balance (in shares) at Jan. 01, 2022 | 41,148,870 | 41,148,870 | ||||
Balance at Jan. 01, 2022 | $ 950,186 | $ 411 | $ 0 | $ (28,897) | $ 978,672 | |
[1] | In the first quarter of fiscal 2019, the Company reclassified $1.5 million of tax benefits from “Accumulated other comprehensive loss” to “Retained earnings” for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | ||
Statement of Cash Flows [Abstract] | |||
Reclassification related to recoveries of excess and obsolete inventory | [1] | $ 11.6 | |
Reclassification of proceeds from sale of investments | [2] | $ 1.4 | |
[1] | Cash flows for fiscal 2019 were revised to reflect the reclassification of $11.6 million related to the recoveries of excess and obsolete inventory. | ||
[2] | Cash flows for fiscal 2020 were revised to reflect the reclassification of $1.4 million proceeds from sale of investments from cash flows from operating activities to cash flows from investing activities. |
THE COMPANY
THE COMPANY | 12 Months Ended |
Jan. 01, 2022 | |
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 , OshKosh , Skip Hop, Child of Mine , Just One You , Simple Joys , Carter’s My First Love, little planet, |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 01, 2022 | |
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 December 31. Every five or six years, our fiscal year includes an additional 53 rd week of results. Fiscal 2021, which ended on January 1, 2022, contained 52 weeks. Fiscal 2020, which ended on January 2, 2021, contained 53 weeks. Fiscal 2019, which ended on December 28, 2019, contained 52 weeks. Certain expenses increased in relationship to the additional revenue from the 53 rd week, while other expenses, such as fixed costs and expenses incurred on a calendar-month basis, did not increase. The consolidated gross margin for the additional revenue from the 53 rd week is slightly lower than the consolidated gross margin for fiscal 2020 due to increased promotional activity during the 53 rd week. 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. 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 sheets. 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 the impact of intercompany loans with foreign subsidiaries. Foreign currency transaction gains and losses are recognized in earnings, as a separate component of Other expense (income), net, within the consolidated statements of operations. Foreign currency transaction gains and losses related to intercompany loans with foreign subsidiaries that are of a long-term nature are accounted for as translation adjustments and are included in Accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. 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 statements 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. However, money market funds held in a rabbi trust that are being used as investments to satisfy the Company’s obligations under its deferred compensation plans are treated as investments and recorded in Other assets on the accompanying consolidated balance sheets. Concentration of Cash Deposits Risk As of January 1, 2022, the Company had approximately $984.3 million of cash and cash equivalents in major financial institutions, including approximately $112.7 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 2021, 2020, and 2019, no one customer accounted for 10% or more of the Company’s consolidated net sales. At January 1, 2022, 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 52% of total gross trade receivables outstanding. At January 2, 2021, 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 69% of total gross trade receivables outstanding. Valuation Accounts for Wholesale Accounts Receivable Accounts Receivable Reserves The Company’s accounts receivable reserves for wholesale customers include an allowance for expected credit losses and an allowance for chargebacks. The allowance for expected credit losses includes estimated losses resulting from the inability of our 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 expected credit losses are reflected in Selling, general, and administrative (“SG&A”) 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 inventory) 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. Leases Financial Presentation The Company determines if an arrangement is a lease at its inception. Operating leases are included in operating lease assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Certain of our lease agreements include variable rental payments based on a percentage of retail sales over contractual levels and others include variable rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Policy Elections Portfolio approach - In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. Non-lease component - The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheets. Discount rate - As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Renewal options - The Company evaluates the inclusion of renewal options on a lease by lease basis. In general, for leased retail real estate, the Company does not include renewal options in the underlying lease term. 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 gain 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. Cloud computing implementation costs incurred in a hosting arrangement that is a service contract and that meet the applicable criteria are capitalized and reported in Prepaid expenses and other current assets on the consolidated balances sheets. Any capitalized costs are amortized over the term of the hosting arrangement, and the expense is presented in the same line item within the consolidated statements of operations as the expense for the service contract’s fees. 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 revenue growth and profitability, terminal values, discount rates, an implied control premium, 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 a goodwill impairment test using quantitative assessments must be performed. If it is determined that it is “not more likely than not” 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. Under a quantitative assessment for goodwill, the Company compares the fair value of a reporting unit to its carrying value, including goodwill. The Company uses the income approach and the market approach to determine the fair value of a reporting unit. The assumptions used in these approaches include revenue growth and profitability, terminal values, discount rates, and an implied control premium. These assumptions are consistent with those of hypothetical marketplace participants. An impairment is recorded for any excess carrying value above the fair value of the reporting unit, not to exceed the carrying value of goodwill. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the value of goodwill. In the first quarter of fiscal 2020, the Company concluded that impairment indicators existed due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “ Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using the income approach and the market approach. As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 1, 2022 was $11.7 million. 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. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the values of our indefinite-lived tradenames. As discussed above, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 1, 2022 were $70.0 million and $15.0 million, respectively. Impairment of Other Long-Lived Assets The Company reviews other long-lived assets, including operating lease assets, 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 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. There were no impairments to other long-lived assets in fiscal 2021. 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 sheets 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 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 when 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. For purchases made through the Company’s eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. Loyalty program - Retail customers can earn loyalty points that accumulate towards earning reward certificates that are redeemable for a specified amount off of future purchases for a specified period of time. Points and reward certificates earned by retail customers under the Company’s loyalty program represent a separate performance obligation. For transactions where a customer earns loyalty points, the Company allocates revenue between the goods sold and the loyalty points expected to be earned towards a reward certificate based upon the relative standalone selling price. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets and then recognized as revenue upon redemption of the reward certificate. Loyalty program breakage is recognized as revenue based on the customer redemption pattern. Gift Cards - Customer purchases of gift cards are not recognized as revenue until the gift card is redeemed. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets. Gift card breakage is recognized as revenue based on the customer redemption pattern. Royalty Revenues - 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. Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company. 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 most retail transactions in stores, no significant judgments are involved since revenue is recognized at the point of sale when tender is exchanged and the customer receives the goods. For retail transactions made through the Company's eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. The Company recognizes revenue from omni-channel sales, including buy on-line and pick up in store, buy-on-line, ship-to-store, and buy-on-line, deliver-from-store, when the product is physically delivered to the customer or when the product arrives at the store and has been picked up by the customer. 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. Cooperative advertising arrangements reimburse customers for marketing activities for certain of our products. The Company records these reimbursements under 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 $0.2 million for fiscal 2021, $0.5 million for fiscal 2020, and $3.1 million for fiscal 2019 as a component of SG&A expenses on the Company’s 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 include changes to our inventory reserve and expenses related to the merchandising, design, and procurement of product, including inbound freight costs, purchasing and receiving costs, and inspection costs. Also included in costs of goods sold are the costs of shipping eCommerce product to end consumers. For omni-channel transactions, costs of goods sold include the costs of shipping product to end customers or to retail stores. Retail store occupancy costs, distribution expenses, and generally all expenses other than interest and income taxes are included in SG&A 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, including eCommerce fulfillment costs, and delivery to our wholesale customers and to our retail stores. Distribution expenses included in SG&A totaled $206.6 million, $190.7 million, and $191.1 million for fiscal years 2021, 2020, and 2019, respectively. Gross Profit Gross profit is calculated as consolidated net sales less cost of goods sold, and gross margin is calculated as gross profit divided by consolidated net sales. Definitions of gross profit and gross margin vary across the industry and, as such, our metrics may not be comparable to other companies. Income from Royalties and License Fees We license our Carter’s , OshKosh , Child of Mine , Just One You , Simple Joys , and Carter’s My First Love brands to partners to expand our product offerings to include bedding, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, swimwear, and toys. These royalties are recorded as earned, based upon the sales of licensed products by licensees and reported as royalty income on the Company’s consolidated statements of operations. Advertising Expenses Advertising production costs and costs associated with communicating advertising that has been produced are expensed when the advertising event takes place. Certain other advertising costs where it is uncertain when the expected benefits would occur are expensed as incurred. Advertising expenses were $102.8 million, $75.6 million, and $93.4 million for fiscal years 2021, 2020, and 2019, respectively, an |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jan. 01, 2022 | |
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. Disaggregation of Revenue The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for fiscal years 2021, 2020, and 2019 were as follows: Fiscal year ended January 1, 2022 (52 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,126,415 $ 171,703 $ 1,298,118 Direct-to-consumer 1,899,262 — 289,060 2,188,322 $ 1,899,262 $ 1,126,415 $ 460,763 $ 3,486,440 Royalty income, net $ 8,541 $ 15,808 $ 4,332 $ 28,681 Fiscal year ended January 2, 2021 (53 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 996,088 $ 120,244 $ 1,116,332 Direct-to-consumer 1,671,644 — 236,358 1,908,002 $ 1,671,644 $ 996,088 $ 356,602 $ 3,024,334 Royalty income, net $ 8,732 $ 13,120 $ 4,424 $ 26,276 Fiscal year ended December 28, 2019 (52 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,205,646 $ 163,793 $ 1,369,439 Direct-to-consumer 1,884,150 — 265,697 2,149,847 $ 1,884,150 $ 1,205,646 $ 429,490 $ 3,519,286 Royalty income, net $ 12,990 $ 17,670 $ 3,977 $ 34,637 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Trade receivables from wholesale customers, net $ 233,928 $ 180,830 Royalties receivable 5,769 5,733 Tenant allowances and other receivables 10,352 12,315 Total receivables $ 250,049 $ 198,878 Less: Wholesale accounts receivable reserves (*) (18,695) (12,366) Accounts receivable, net $ 231,354 $ 186,512 (*) Includes allowance for credit losses of $7.3 million and $5.9 million for the periods ended January 1, 2022 and January 2, 2021, respectively. Information regarding Wholesale accounts receivable reserves is as follows: (dollars in thousands) Wholesale accounts receivable reserves Balance at December 29, 2018 $ 11,866 Additional provisions 9,047 Charges to reserve (7,939) Reclassification to Trade receivables (1) (1,691) Balance at December 28, 2019 $ 11,283 Additional provisions 9,625 Charges to reserve (2) (8,542) Balance at January 2, 2021 $ 12,366 Additional provisions 13,282 Charges to reserve (6,953) Balance at January 1, 2022 $ 18,695 (1) The Company reclassified $1.7 million of customer support related items from Wholesale accounts receivable reserves into Trade receivables from wholesale customers, net for the period December 28, 2019. (2) Charges to the reserve include total write-offs of $6.5 million related to the bankruptcy of customers during fiscal 2020. Contract Assets and Liabilities The Company’s contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) January 1, 2022 January 2, 2021 Contract liabilities - current: Unredeemed gift cards $ 21,619 $ 18,300 Unredeemed customer loyalty rewards 5,659 5,241 Carter’s credit card - upfront bonus (1) 714 714 Total contract liabilities - current (2) $ 27,992 $ 24,255 Contract liabilities - non-current (3) $ 2,143 $ 2,857 Total contract liabilities $ 30,135 $ 27,112 (1) The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months. (2) Included with Other current liabilities on the Company’s consolidated balance sheet. (3) This amount reflects the non-current portion of the Carter’s credit card upfront bonus. 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. |
LEASES
LEASES | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease. As of the periods presented, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statement of cash flows. The following components of lease expense are included in SG&A expenses on the Company’s consolidated statements of operations for the fiscal periods indicated: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 December 28, 2019 Operating lease cost $ 166,481 $ 180,056 $ 179,982 Variable lease cost (*) 64,410 71,971 63,043 Net lease cost $ 230,891 $ 252,027 $ 243,025 (*) Includes short-term leases, which are not material, and operating lease impairment charges. Supplemental balance sheet information related to leases was as follows: January 1, 2022 January 2, 2021 Weighted average remaining operating lease term (years) 4.9 5.4 Weighted average discount rate for operating leases 3.26% 3.33% Cash paid for amounts included in the measurement of operating lease liabilities in fiscal 2021 and fiscal 2020 was $209.1 million and $161.7 million, respectively. Operating lease assets obtained in exchange for operating lease liabilities in fiscal 2021 and fiscal 2020 were $39.6 million and $62.6 million, respectively. As of January 1, 2022, the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases 2022 $ 164,338 2023 141,248 2024 113,584 2025 81,206 2026 57,194 After 2026 82,197 Total lease payments $ 639,767 Less: Interest (50,369) Present value of lease liabilities (*) $ 589,398 (*) As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. As of January 1, 2022, the minimum rental commitments for additional operating lease contracts, primarily for retail stores, that have not yet commenced are $6.8 million. These operating leases will commence between fiscal year 2022 and fiscal year 2023 with lease terms of 3 years to 10 years. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, 2022 January 2, 2021 Land, building, and leasehold improvements $ 328,771 $ 358,121 Fixtures, equipment, and computer hardware 280,022 308,260 Computer software 113,284 159,558 Marketing fixtures 4,551 9,819 Construction in progress 18,302 10,567 744,930 846,325 Accumulated depreciation and amortization (528,926) (583,980) Total $ 216,004 $ 262,345 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The balances and changes in the carrying amount of goodwill attributable to each segment were as follows: (dollars in thousands) U.S. Retail U.S. Wholesale International Total Balance at December 28, 2019 $ 83,934 $ 74,454 $ 70,638 $ 229,026 Goodwill impairment (1) — — (17,742) (17,742) Foreign currency impact — — 492 492 Balance at January 2, 2021 $ 83,934 $ 74,454 $ 53,388 $ 211,776 Foreign currency impact — — 247 247 Balance at January 1, 2022 (2) $ 83,934 $ 74,454 $ 53,635 $ 212,023 (1) In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment. (2) Goodwill for the International reporting unit is net of accumulated impairment losses of $17.7 million. A summary of the carrying value of the Company’s intangible assets were as follows: January 1, 2022 January 2, 2021 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename (1) Indefinite 70,000 — 70,000 70,000 — 70,000 Skip Hop tradename (2) Indefinite 15,000 — 15,000 15,000 — 15,000 Finite-life tradenames 5 - 20 years 3,911 1,501 2,410 3,911 1,251 2,660 Total tradenames, net $ 309,144 $ 1,501 $ 307,643 $ 309,144 $ 1,251 $ 307,893 Skip Hop customer relationships 15 years $ 47,300 $ 15,010 $ 32,290 $ 47,300 $ 11,834 $ 35,466 Carter’s Mexico customer relationships 10 years 3,047 1,368 1,679 3,108 1,064 2,044 Total customer relationships, net $ 50,347 $ 16,378 $ 33,969 $ 50,408 $ 12,898 $ 37,510 (1) In fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. (2) In fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying values of goodwill and indefinite-lived tradename assets are subject to annual impairment reviews as of the last day of each fiscal year. Between annual assessments, impairment reviews may also be triggered by any significant events or changes in circumstances affecting our business. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the values of goodwill or indefinite-lived or definite-lived intangible assets. In the first quarter of fiscal 2020, the Company concluded that impairment indicators existed due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “ Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using discounted cash flows (“income approach”) and relevant data from guideline public companies (“market approach”). As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 1, 2022 was $11.7 million. The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 1, 2022 were $70.0 million and $15.0 million, respectively. In the third quarter of fiscal 2019, the Company’s Skip Hop business experienced lower than expected actual and projected sales and profitability due to lower domestic demand, including the loss of a significant customer that declared bankruptcy (Toys “R” Us), lower international demand and higher product costs primarily driven by tariffs imposed on products sourced from China. As a result, the Company conducted an interim impairment assessment in the third quarter of fiscal 2019 on the value of the Company’s indefinite-lived Skip Hop tradename asset that was recorded in connection with the acquisition of Skip Hop Holdings, Inc. in February 2017. The indefinite-lived tradename asset assessment was performed in accordance with ASC 350, “ Intangibles--Goodwill and Other” and was determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of our ownership of the tradename. Based on this assessment, a charge of $30.8 million was recorded during the third quarter of fiscal 2019 on our indefinite-lived Skip Hop tradename asset. The charge included charges of $19.1 million, $10.5 million, and $1.2 million in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. Changes in the carrying values between comparative periods for goodwill related to the International segment 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 for Skip Hop and Carter’s Mexico and the changes in the carrying value of customer relationships for 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 for each of fiscal years 2021, 2020, and 2019. The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense 2022 $ 3,727 2023 $ 3,685 2024 $ 3,655 2025 $ 3,655 2026 $ 3,655 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The components of Accumulated other comprehensive (loss) income consisted of the following: (dollars in thousands) Pension liability adjustments Post-retirement liability adjustments Cumulative translation adjustments Accumulated other comprehensive (loss) income Balance at December 29, 2018 $ (9,562) $ 1,687 $ (32,964) $ (40,839) Reclassification of tax effects (*) (1,880) 380 — (1,500) Fiscal year 2019 change 746 (483) 6,442 6,705 Balance at December 28, 2019 (10,696) 1,584 (26,522) (35,634) Fiscal year 2020 change (2,197) (144) 5,215 2,874 Balance at January 2, 2021 (12,893) 1,440 (21,307) (32,760) Fiscal year 2021 change 3,973 (115) 5 3,863 Balance at January 1, 2022 $ (8,920) $ 1,325 $ (21,302) $ (28,897) (*) In fiscal 2019, the Company reclassified $1.5 million of tax benefits from accumulated other comprehensive loss to retained earnings for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . As of January 1, 2022 and January 2, 2021, the cumulative tax effect on the pension liability adjustments were $2.8 million and $4.0 million, respectively. As of January 1, 2022 and January 2, 2021, the cumulative tax effect on the post-retirement liability adjustments were approximately $0.4 million and $0.5 million, respectively. For the fiscal years ended January 1, 2022 and January 2, 2021, 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 |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) January 1, 2022 January 2, 2021 $500 million, 5.500% Senior Notes due 2025 $ 500,000 $ 500,000 $500 million, 5.625% Senior Notes due 2027 500,000 500,000 Total senior notes $ 1,000,000 $ 1,000,000 Less: unamortized issuance-related costs for senior notes (8,630) (10,470) Senior notes, net $ 991,370 $ 989,530 Secured revolving credit facility — — Total long-term debt, net $ 991,370 $ 989,530 Secured Revolving Credit Facility As of January 1, 2022, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $4.1 million of outstanding letters of credit. As of January 2, 2021, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $5.0 million of outstanding letters of credit. As of January 1, 2022 and January 2, 2021, there was approximately $745.9 million and $745.0 million available for future borrowing, respectively. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheets due to contractual repayment terms under the credit facility. Terms of the Secured Revolving Credit Facility The Company’s revolving credit facility provides for an aggregate credit line of $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 credit facility matures on September 21, 2023. The 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. On May 4, 2020, the Company, through its wholly owned subsidiary, The William Carter Company (“TWCC”), entered into Amendment No. 2 to its fourth amended and restated credit agreement (“Amendment No. 2”). Amendment No. 2 provided for, among other things, access to additional capital and increased flexibility under financial maintenance covenants, which the Company sought in part due to the unforeseen negative effects of the COVID-19 pandemic. On April 21, 2021, the Company, through its wholly owned subsidiary, TWCC, entered into Amendment No. 3 to its fourth amended and restated credit agreement (“Amendment No. 3”). Among other things, Amendment No. 3 provided that through the remainder of the Restricted Period, which ended on the date the Company delivered its financial statements and associated certificates relating to the third quarter of fiscal 2021: • we must have maintained a minimum liquidity (defined as cash-on-hand plus availability under the secured revolving credit facility) on the last day of each fiscal month of at least $950 million (the “Revised Liquidity Requirement”), which was increased by $250 million from $700 million; and • we were permitted to make additional restricted payments, including to pay cash dividends and repurchase common stock, in an amount not to exceed $250 million, provided that (a) no default or event of default will have occurred and be continuing or would result from the payment and (b) after giving effect to the payment, we would have been in compliance with Revised Liquidity Requirement as of the last day of the most recent month. Approximately $0.2 million, including both bank fees and other third-party expenses, has been capitalized in connection with Amendment No. 3 and is being amortized over the remaining term of the secured revolving credit facility. As of January 1, 2022, the Company’s secured revolving credit facility returned to its pre-COVID 19 terms that were in effect prior to Amendment No. 2. As of January 1, 2022, the interest rate margins applicable to the amended revolving credit facility were 1.125% for LIBOR (London Interbank Offered Rate) rate loans and 0.125% for base rate loans. There were no U.S. dollar borrowings or foreign currency borrowings outstanding on January 1, 2022 or January 2, 2021. As of January 1, 2022, the Company was in compliance with its financial and other covenants under the secured revolving credit facility. Senior Notes 2020 Issuance of Senior Notes On May 11, 2020, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.500% per annum, and maturing on May 15, 2025, all of which were outstanding as of January 1, 2022. TWCC received net proceeds from the offering of the senior notes of approximately $494.5 million, after deducting underwriting fees, which TWCC used to repay borrowings outstanding under the Company’s secured revolving credit facility. Approximately $6.5 million, including both bank fees and other third-party expenses, has been 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 May 15, 2022, 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 May 15 of each of the years indicated is as follows: Year Percentage 2022 102.75 % 2023 101.38 % 2024 and thereafter 100.00 % 2019 Redemption and Issuance of Senior Notes On March 14, 2019, TWCC redeemed $400 million principal amount of senior notes, bearing interest at a rate of 5.25% per annum, and maturing on August 15, 2021, pursuant to the optional redemption provisions of the notes, which required that TWCC pay the outstanding principal plus accrued interest and an early redemption premium of 1.31% of the outstanding principal amounts of the senior notes. This debt redemption resulted in a loss on extinguishment of debt of $7.8 million, consisting of $5.2 million of early redemption premiums and $2.6 million of unamortized debt issuance costs. Concurrently, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.625% per annum, and maturing on March 15, 2027. TWCC received net proceeds from the offering of the senior notes of approximately $494.8 million, after deducting underwriting fees and other expenses, which TWCC used to redeem the senior notes discussed above and repay borrowings outstanding under the Company’s secured revolving credit facility. Approximately $5.8 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. On and after March 15, 2022, 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 March 15 of each of the years indicated is as follows: Year Percentage 2022 102.81 % 2023 101.41 % 2024 and thereafter 100.00 % The senior notes mentioned above 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. The indenture governing the senior notes provides that 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, plus accrued and unpaid interest to (but excluding) the date of purchase. 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 certain types of indebtedness that is secured by a lien; (b) enter into certain sale and leaseback transactions; and (c) consolidate or merge with or into, or sell substantially all of the issuer’s assets to, another person, under certain circumstances. 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 25.0% 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. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK Open Market Share Repurchases On February 24, 2022, the Company’s Board of Directors authorized share repurchases up to $1.00 billion, inclusive of approximately $301.9 million remaining under previous authorizations. The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: For the fiscal year ended January 1, 2022 January 2, 2021 December 28, 2019 Number of shares repurchased 2,967,619 474,684 2,107,472 Aggregate cost of shares repurchased (dollars in thousands) $ 299,339 $ 45,255 $ 196,910 Average price per share $ 100.87 $ 95.34 $ 93.43 The total remaining capacity under outstanding repurchase authorizations as of January 1, 2022 was approximately $351.1 million, exclusive of the February 2022 share repurchase authorization, based on settled repurchase transactions. The share repurchase authorizations have no expiration dates. In the third quarter of fiscal 2021, the Company reinstated its common stock share repurchase program. The Company had previously announced the suspension of its common stock share repurchase program, in connection with the COVID-19 pandemic, at the end of the first quarter in fiscal 2020. Future repurchases may occur from time to time in the open market, in privately negotiated transactions, or otherwise. The timing and amount of any repurchases will be at the discretion of the Company subject to restrictions under the Company’s revolving credit facility, market conditions, stock price, other investment priorities, and other factors. Dividends On February 24, 2022, the Company’s Board of Directors authorized a quarterly cash dividend payment of $0.75 per common share, payable on March 18, 2022 to shareholders of record at the close of business on March 8, 2022. The Board of Directors declared and the Company paid quarterly cash dividends of $0.60 per common share in the first quarter of fiscal 2020. On May 1, 2020, in connection with the COVID-19 pandemic, the Company’s Board of Directors suspended the quarterly cash dividend. As a result, the Company’s Board of Directors did not declare and the Company did not pay cash dividends in the second, third, or fourth quarters of fiscal 2020, or in the first quarter of fiscal 2021. The Board of Directors declared and the Company paid quarterly cash dividends of $0.40 per common share in each of the second and third quarters of fiscal 2021 and $0.60 per common share in the fourth quarter of fiscal 2021. The Board of Directors will evaluate future dividend declarations based on a number of factors, including restrictions under the Company’s revolving credit facility, business conditions, the Company’s financial performance, and other considerations. Provisions in the Company’s secured revolving credit facility could have the effect of restricting the Company’s ability to pay cash dividends on, or make future repurchases of its common stock, as further described in Note 8 , Long-Term Debt, |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [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. As of January 1, 2022, the maximum number of shares of stock available under the Plan was 18,778,392, and there were 3,027,361 remaining shares available for grant under the Plan. The Plan makes a 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) January 1, 2022 January 2, 2021 December 28, 2019 Stock options $ 1,347 $ 2,694 $ 4,070 Restricted stock: Time-based awards 14,756 10,468 9,432 Performance-based awards 3,608 (1,927) 1,552 Stock awards 1,318 1,595 1,475 Total $ 21,029 $ 12,830 $ 16,529 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 2020, the achievement of performance target estimates was revised resulting in a reversal of previously recognized stock-based compensation expense for outstanding performance-based awards. Stock Options Stock options vest in equal annual installments over a four-year period. The Company issues new shares to satisfy stock option exercises. There were no stock options granted in fiscal 2021, 2020, and 2019. Changes in the Company’s stock options for the fiscal year ended January 1, 2022 were as follows: Number of shares Weighted- average exercise price Weighted-average remaining contractual terms (years) Aggregate intrinsic value Outstanding, January 2, 2021 860,711 $ 84.31 Granted (*) — $ — Exercised (178,803) $ 61.49 Forfeited (7,019) $ 115.11 Expired (16,223) $ 118.88 Outstanding, January 1, 2022 658,666 $ 89.32 4.25 $ 10,827 Vested and expected to vest, January 1, 2022 657,957 $ 89.29 4.25 $ 10,825 Exercisable, January 1, 2022 617,715 $ 87.34 4.12 $ 10,814 (*) The Company did not grant any stock options in fiscal 2021. The intrinsic value of stock options exercised during the fiscal years ended January 1, 2022, January 2, 2021, and December 28, 2019 was approximately $7.8 million, $8.2 million, and $13.3 million, respectively. At January 1, 2022, there was approximately $0.2 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 0.2 years. 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 January 1, 2022: Restricted Weighted-average grant-date Outstanding, January 2, 2021 462,537 $ 101.87 Granted 325,322 $ 98.28 Vested (116,238) $ 99.32 Forfeited (126,908) $ 110.21 Outstanding, January 1, 2022 544,713 $ 98.33 During fiscal 2020, a total of 140,345 shares of restricted stock vested with a weighted-average fair value of $89.80 per share. During fiscal 2019, a total of 131,924 shares of restricted stock vested with a weighted-average fair value of $93.03 per share. At January 1, 2022, there was approximately $30.9 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 2.5 years. Time-based Restricted Stock Awards Time-based restricted stock awards vest in equal annual installments or cliff vest after a three-year or four-year period. During fiscal years 2021, 2020, and 2019, a total of 116,238 shares, 125,209 shares, and 102,492 shares, respectively, of time-based restricted stock vested with a weighted-average fair value of $99.32 per share, $90.52 per share, and $93.70 per share, respectively. At January 1, 2022, there was approximately $30.7 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 2.5 years. Performance-based Restricted Stock Awards Fiscal year Number of shares granted Weighted-average fair value per share 2019 60,700 $ 88.87 2020 58,320 $ 108.76 2021 (*) — $ — (*) The Company did not grant any performance-based restricted stock awards in fiscal 2021. Performance-based restricted stock awards cliff vest after a three-year period, subject to the achievement of the performance target. During the fiscal year ended January 1, 2022, no performance shares vested. As of January 1, 2022, a total of 56,814 performance shares were unvested with a weighted-average fair value of $88.87 per share. Vesting of these 56,814 performance shares is based on the performance targets for the shares granted in fiscal 2019. As of January 1, 2022, there was $0.2 million unrecognized compensation cost related to the unvested performance-based restricted stock awards based on the current estimates of the number of awards that will vest. 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. For performance awards containing retirement provisions, stock-based compensation expense is recognized over the period from the grant date to the date retirement eligibility is achieved and required performance has been met, if that is expected to occur during the nominal service period. For awards containing retirement provisions that are granted to retirement eligible employees, stock-based compensation expense is recognized over the period in which the required performance has been met. 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 2021, 2020, and 2019, such awards were as follows: Fiscal year Number of shares issued Fair value per share Aggregate value 2019 16,097 $ 91.63 $ 1,475 2020 21,362 $ 74.67 $ 1,595 2021 13,037 $ 101.09 $ 1,318 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, 2022 January 2, 2021 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 74,128 $ 68,331 Interest cost 1,818 2,171 Actuarial (gain) loss (2,405) 6,666 Benefits paid (2,666) (3,040) Projected benefit obligation at end of year $ 70,875 $ 74,128 Change in plan assets: Fair value of plan assets at beginning of year $ 65,417 $ 61,961 Actual return on plan assets 5,938 6,496 Benefits paid (2,666) (3,040) Fair value of plan assets at end of year $ 68,689 $ 65,417 Unfunded status $ 2,186 $ 8,711 The accumulated benefit obligation is equal to the projected benefit obligation as of January 1, 2022 and January 2, 2021 because the plan is frozen. The unfunded status is included in Other long-term liabilities in the Company’s consolidated balance sheet. The Company does not expect to make any contributions to the OshKosh B’Gosh pension plan during fiscal 2022 as the plan’s funding exceeds the minimum funding requirements. The actuarial gain in fiscal 2021 was primarily attributable to a higher discount rate, and the actuarial loss incurred in fiscal 2020 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) January 1, 2022 January 2, 2021 December 28, 2019 Recognized in the statement of operations: Interest cost $ 1,818 $ 2,171 $ 2,432 Expected return on plan assets (3,577) (3,217) (2,613) Amortization of net loss (*) 428 510 795 Net periodic pension (benefit) cost $ (1,331) $ (536) $ 614 Changes recognized in other comprehensive income: Net (gain) loss arising during the fiscal year $ (4,765) $ 3,387 $ (182) Amortization of net loss (*) (428) (510) (795) Total changes recognized in other comprehensive income $ (5,193) $ 2,877 $ (977) Total net periodic cost and changes recognized in other comprehensive income $ (6,524) $ 2,341 $ (363) (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2022, approximately $0.2 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic pension cost. Assumptions The actuarial assumptions used in determining the benefit obligation and net periodic pension cost for our pension plan is presented in the following table: Benefit obligation 2021 2020 Discount rate 2.75% 2.50% Net periodic pension cost 2021 2020 2019 Discount rate 2.50% 3.25% 4.00% Expected long-term rate of return on plan assets 6.00% 6.00% 5.50% The discount rates used at January 1, 2022, January 2, 2021, and December 28, 2019 were determined with consideration given to the FTSE Pension Liability Index and the Bloomberg US 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 $2.3 million. The Company currently expects benefit payments for its defined benefit pension plans as follows for the next ten fiscal years: (dollars in thousands) 2022 $ 2,900 2023 $ 2,980 2024 $ 3,170 2025 $ 3,350 2026 $ 3,610 2027-2031 $ 19,050 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 60% bond funds, 36% equity securities, and 4% 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. To calculate net periodic pension cost for the next fiscal year, the Company will use an expected long-term rate of return on plan assets of 5.50%. The Company believes that this annual return on plan assets can be achieved based on actual returns over a long-term basis, 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 January 1, 2022 and January 2, 2021, by asset category, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Asset category Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash equivalents $ 1,370 $ 1,370 $ — $ 644 $ 644 $ — Equity securities: U.S. Large-Cap blend (1) 7,508 7,508 — 9,006 9,006 — U.S. Large-Cap growth 3,390 3,390 — 4,105 4,105 — U.S. Mid-Cap growth 3,426 3,426 — 3,913 3,913 — U.S. Small-Cap blend 2,054 2,054 — 2,608 2,608 — International blend 8,200 8,200 — 9,882 9,882 — Fixed income securities: Corporate bonds (2) 39,970 39,746 224 31,995 31,751 244 Real estate (3) 2,771 2,771 — 3,264 3,264 — $ 68,689 $ 68,465 $ 224 $ 65,417 $ 65,173 $ 244 (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) January 1, 2022 January 2, 2021 APBO at beginning of fiscal year $ 2,998 $ 3,311 Service cost 15 25 Interest cost 57 94 Actuarial (gain) loss (140) (162) Plan participants’ contribution 20 9 Benefits paid (288) (279) APBO at end of fiscal year $ 2,662 $ 2,998 Approximately $2.4 million and $2.7 million of the APBO at the end of fiscal 2021 and 2020, 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 benefit 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) January 1, 2022 January 2, 2021 December 28, 2019 Recognized in the statement of operations: Service cost $ 15 $ 25 $ 21 Interest cost 57 94 123 Amortization of net gain (*) (295) (345) (396) Net periodic post-retirement benefit (income) cost $ (223) $ (226) $ (252) Changes recognized in other comprehensive income: Net (gain) loss arising during the fiscal year $ (140) $ (162) $ 238 Amortization of net gain (*) 295 345 396 Total changes recognized in other comprehensive income $ 155 $ 183 $ 634 Total net periodic post-retirement benefit (income) cost and changes recognized in other comprehensive income $ (68) $ (43) $ 382 (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2022, approximately $0.3 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic post-retirement benefit cost. Assumptions The actuarial computations utilized the following assumptions, using year-end measurement dates: Post-retirement benefit obligation 2021 2020 Discount rate 2.50% 2.00% Net periodic post-retirement benefit cost 2021 2020 2019 Discount rate 2.00% 3.00% 4.00% The discount rates used at January 1, 2022, January 2, 2021, and December 28, 2019, were determined with primary consideration given to the FTSE Pension Discount Curve 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 for fiscal years 2021, 2020, and 2019. The Company expects that its contribution and benefit payments for post-retirement benefit obligations will be approximately $0.3 million for fiscal years 2022 and 2023, and approximately $0.2 million for fiscal years 2024, 2025, and 2026. For the five years subsequent to fiscal 2026, the aggregate contributions and benefit payments for post-retirement benefit obligations is expected to be approximately $0.8 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 one thousand hours |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, 2022 January 2, 2021 December 28, 2019 Current tax provision: Federal $ 75,408 $ 31,085 $ 50,162 State 16,905 6,331 10,548 Foreign 19,761 11,105 16,740 Total current provision $ 112,074 $ 48,521 $ 77,450 Deferred tax provision (benefit): Federal $ (10,541) $ (18,449) $ (10,775) State (2,428) (3,741) (1,882) Foreign (563) (1,064) (643) Total deferred provision (13,532) (23,254) (13,300) Total provision $ 98,542 $ 25,267 $ 64,150 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 has provided for deferred income taxes related to these earnings. Since the current U.S. tax regime taxes foreign earnings in the year earned, taxes associated with repatriation are not material. Deferred income taxes have not been provided for undistributed foreign earnings from Canada or Mexico, 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 $85.5 million. Unrecognized deferred tax liability related to undistributed earnings from the Company’s subsidiaries in Canada and Mexico is estimated to be approximately $3.6 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. The components of income before income taxes were as follows: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 December 28, 2019 Domestic $ 333,900 $ 73,525 $ 225,488 Foreign 104,390 61,459 102,464 Total $ 438,290 $ 134,984 $ 327,952 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 January 1, 2022 January 2, 2021 December 28, 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 3.0 % 2.7 % 2.5 % Impact of foreign operations (1.8) % (4.8) % (2.4) % Settlement of uncertain tax positions (0.3) % (1.3) % (0.7) % Benefit from stock-based compensation (0.3) % (1.1) % (0.8) % Goodwill impairments and other 0.9 % 2.2 % — % Total 22.5 % 18.7 % 19.6 % 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 U.S. tax authority examinations for years prior to fiscal 2018. Deferred Taxes The following table reflects the Company’s calculation of the components of deferred tax assets and liabilities as of January 1, 2022 and January 2, 2021. (dollars in thousands) January 1, 2022 January 2, 2021 Deferred tax assets: Assets (Liabilities) Accounts receivable allowance $ 7,026 $ 4,072 Inventory 11,923 11,775 Accrued liabilities 22,226 13,807 Equity-based compensation 3,410 5,039 Deferred employee benefits 5,144 7,928 Leasing liabilities 97,269 130,776 Other 3,845 4,961 Total deferred tax assets 150,843 178,358 Deferred tax liabilities: Depreciation (26,472) (38,777) Leasing assets (80,818) (107,269) Tradename and licensing agreements (76,275) (76,409) Other (5,388) (5,593) Total deferred tax liabilities (188,953) (228,048) Net deferred tax liability $ (38,110) $ (49,690) Amounts recognized in the consolidated balance sheets: (dollars in thousands) January 1, 2022 January 2, 2021 Assets (Liabilities) Deferred tax assets $ 2,800 $ 3,080 Deferred tax liabilities (40,910) (52,770) Net deferred tax liability $ (38,110) $ (49,690) Uncertain Tax Positions The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (dollars in thousands) Balance at December 29, 2018 $ 13,917 Additions based on tax positions related to fiscal 2019 2,197 Reductions for lapse of statute of limitations (2,191) Balance at December 28, 2019 $ 13,923 Additions based on tax positions related to fiscal 2020 760 Reductions for prior year tax positions (104) Reductions for lapse of statute of limitations (2,056) Balance at January 2, 2021 $ 12,523 Additions based on tax positions related to fiscal 2021 810 Reductions for prior year tax positions (2,207) Reductions for lapse of statute of limitations (2,270) Balance at January 1, 2022 $ 8,856 As of January 1, 2022, the Company had gross unrecognized tax benefits of approximately $8.9 million, of which $7.5 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 $3.1 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 2022 and the effective tax rate in the quarter in which the benefits are recognized. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jan. 01, 2022 | |
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 January 1, 2022 January 2, 2021 December 28, 2019 (52 weeks) (53 weeks) (52 weeks) Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 42,853,009 43,242,967 44,402,438 Dilutive effect of equity awards 149,619 164,754 305,514 Diluted number of common and common equivalent shares outstanding 43,002,628 43,407,721 44,707,952 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 339,748 $ 109,717 $ 263,802 Income allocated to participating securities (4,113) (1,118) (2,430) Net income available to common shareholders $ 335,635 $ 108,599 $ 261,372 Basic net income per common share $ 7.83 $ 2.51 $ 5.89 Diluted net income per common share: Net income $ 339,748 $ 109,717 $ 263,802 Income allocated to participating securities (4,102) (1,115) (2,419) Net income available to common shareholders $ 335,646 $ 108,602 $ 261,383 Diluted net income per common share $ 7.81 $ 2.50 $ 5.85 Anti-dilutive shares excluded from dilutive earnings per share calculations (1) 176,475 564,131 351,777 (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 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 |
Jan. 01, 2022 | |
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 Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. 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. The table below presents certain segment information for our reportable segments and unallocated corporate expenses for the periods indicated: For the fiscal year ended (dollars in thousands) January 1, 2022 % of January 2, 2021 % of Consolidated Net Sales December 28, 2019 % of Consolidated Net Sales Net sales : U.S. Retail $ 1,899,262 54.5 % $ 1,671,644 55.3 % $ 1,884,150 53.5 % U.S. Wholesale 1,126,415 32.3 % 996,088 32.9 % 1,205,646 34.3 % International 460,763 13.2 % 356,602 11.8 % 429,490 12.2 % Total consolidated net sales $ 3,486,440 100.0 % $ 3,024,334 100.0 % $ 3,519,286 100.0 % Operating income (loss): % of % of % of U.S. Retail $ 368,221 19.4 % $ 146,806 8.8 % $ 225,874 12.0 % U.S. Wholesale 195,369 17.3 % 141,456 14.2 % 212,558 17.6 % International 63,806 13.8 % (1,224) (0.3) % 36,650 8.5 % Corporate (*) (130,317) n/a (97,169) n/a (103,210) n/a Total operating income $ 497,079 14.3 % $ 189,869 6.3 % $ 371,872 10.6 % (*) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees. The tables below present additional segment information for our reportable segments for the periods presented: (dollars in millions) January 1, 2022 Charges: U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ (0.6) $ 0.1 $ 2.3 Incremental costs associated with COVID-19 pandemic 2.0 1.7 0.2 Gain on modification of retail store leases (2) (2.6) — — Total charges (3) $ (1.2) $ 1.8 $ 2.5 (1) The fiscal year ended January 1, 2022 also includes corporate charges related to organizational restructuring of $0.7 million. (2) Related to gains on the modification of previously impaired retail store leases. (3) Total charges for the fiscal year ended January 1, 2022 exclude a customer bankruptcy recovery of $38,000. (dollars in millions) January 2, 2021 December 28, 2019 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ 5.0 $ 2.0 $ 2.2 $ — $ — $ — Goodwill impairment — — 17.7 — — — Skip Hop tradename impairment charge 0.5 6.8 3.7 1.2 19.1 10.5 OshKosh tradename impairment charge 13.6 1.6 0.3 — — — Incremental costs associated with COVID-19 pandemic 9.6 9.6 2.2 — — — Retail store operating leases and other long-lived asset impairments, net of gain (2) 7.4 — 0.3 — — — Benefit related to sale of inventory previously reserved in China — — — — — (2.1) Reversal of store restructuring costs previously recorded during the third quarter of fiscal 2017 — — — (0.7) — — Customer bankruptcy recovery — — — — (0.6) — Total charges $ 36.1 $ 20.0 $ 26.4 $ 0.5 $ 18.5 $ 8.4 (1) The fiscal year ended January 2, 2021 and the fiscal year ended December 28, 2019 also includes corporate charges related to organizational restructuring of $7.4 million and $1.6 million, respectively. (2) Impairments include an immaterial gain on the remeasurement of retail store operating leases. Additional Data by Segment Inventory The table below represents inventory by segment: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 U.S. Wholesale (*) $ 513,702 $ 464,229 U.S. Retail 50,563 47,889 International 83,477 87,144 Total $ 647,742 $ 599,262 (*) 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) January 1, 2022 January 2, 2021 December 28, 2019 Playclothes $ 1,261,622 $ 1,052,178 $ 1,362,847 Baby 1,124,961 1,026,910 1,228,905 Sleepwear 500,596 441,358 428,541 Other (*) 599,261 503,888 498,993 Total net sales $ 3,486,440 $ 3,024,334 $ 3,519,286 (*) Other product offerings include bedding, outerwear, 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 65.0%, 70.3%, and 65.6% of total international net sales in fiscal 2021, 2020, and 2019, respectively. Long-Lived Assets The following represents Property, plant, and equipment, net, and Operating lease assets by geographic area: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 United States $ 613,111 $ 753,232 International 90,641 102,121 Total (*) $ 703,752 $ 855,353 (*) Fiscal year ended January 2, 2021 was revised to reflect the inclusion of operating lease assets. Long-lived assets in the international segment primarily relate to Canada. Long-lived assets in Canada were 82.7% and 87.9% of total international long-lived assets at the end of fiscal 2021 and 2020, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 01, 2022 | |
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 $17.5 million and $20.2 million at the end of fiscal 2021 and fiscal 2020, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities is due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were $2.3 million and $2.0 million for fiscal 2021 and fiscal 2020, respectively. These amounts are included in Other expense (income), net on the Company’s consolidated statement of operations. The fair value of the Company’s pension plan assets at January 1, 2022 and January 2, 2021, by asset category, are disclosed in Note 11, Employee Benefits Plans , to the consolidated financial statements. Borrowings As of January 1, 2022, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at January 1, 2022 was approximately $1.04 billion. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $1.00 billion 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. Goodwill, Intangible, and Long-Lived Tangible Assets Some assets are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances. These assets can include goodwill, indefinite-lived intangible assets, and long-lived tangible assets that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities at the end of any comparable period, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Accrued bonuses and incentive compensation $ 47,363 $ 8,873 Accrued employee benefits 26,517 22,876 Unredeemed gift cards 21,619 18,300 Income taxes payable 13,850 21,164 Accrued taxes 12,883 10,900 Accrued interest 11,942 12,092 Accrued salaries and wages 10,821 10,650 Accrued other 31,454 30,385 Other current liabilities $ 176,449 $ 135,240 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 01, 2022 | |
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 include obligations associated with leases, the secured revolving credit agreement, senior notes, and employee benefit plans. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
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 December 31. Every five or six years, our fiscal year includes an additional 53 rd week of results. Fiscal 2021, which ended on January 1, 2022, contained 52 weeks. Fiscal 2020, which ended on January 2, 2021, contained 53 weeks. Fiscal 2019, which ended on December 28, 2019, contained 52 weeks. Certain expenses increased in relationship to the additional revenue from the 53 rd week, while other expenses, such as fixed costs and expenses incurred on a calendar-month basis, did not increase. The consolidated gross margin for the additional revenue from the 53 rd week is slightly lower than the consolidated gross margin for fiscal 2020 due to increased promotional activity during the 53 rd week. |
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. |
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 sheets. 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 the impact of intercompany loans with foreign subsidiaries. Foreign currency transaction gains and losses are recognized in earnings, as a separate component of Other expense (income), net, within the consolidated statements of operations. Foreign currency transaction gains and losses related to intercompany loans with foreign subsidiaries that are of a long-term nature are accounted for as translation adjustments and are included in Accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. 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 |
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. However, money market funds held in a rabbi trust that are being used as investments to satisfy the Company’s obligations under its deferred compensation plans are treated as investments and recorded in Other assets on the accompanying consolidated balance sheets. Concentration of Cash Deposits Risk As of January 1, 2022, the Company had approximately $984.3 million of cash and cash equivalents in major financial institutions, including approximately $112.7 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 2021, 2020, and 2019, no one customer accounted for 10% or more of the Company’s consolidated net sales. At January 1, 2022, 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 52% of total gross trade receivables outstanding. At January 2, 2021, 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 69% of total gross trade receivables outstanding. Valuation Accounts for Wholesale Accounts Receivable Accounts Receivable Reserves The Company’s accounts receivable reserves for wholesale customers include an allowance for expected credit losses and an allowance for chargebacks. The allowance for expected credit losses includes estimated losses resulting from the inability of our 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 expected credit losses are reflected in Selling, general, and administrative (“SG&A”) 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 inventory) 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 |
LEASES | Leases Financial Presentation The Company determines if an arrangement is a lease at its inception. Operating leases are included in operating lease assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Certain of our lease agreements include variable rental payments based on a percentage of retail sales over contractual levels and others include variable rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Policy Elections Portfolio approach - In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. Non-lease component - The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheets. Discount rate - As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Renewal options - The Company evaluates the inclusion of renewal options on a lease by lease basis. In general, for leased retail real estate, the Company does not include renewal options in the underlying lease term. |
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 gain 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. Cloud computing implementation costs incurred in a hosting arrangement that is a service contract and that meet the applicable criteria are capitalized and reported in Prepaid expenses and other current assets on the consolidated balances sheets. Any capitalized costs are amortized over the term of the hosting arrangement, and the expense is presented in the same line item within the consolidated statements of operations as the expense for the service contract’s fees. |
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 revenue growth and profitability, terminal values, discount rates, an implied control premium, 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 a goodwill impairment test using quantitative assessments must be performed. If it is determined that it is “not more likely than not” 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. Under a quantitative assessment for goodwill, the Company compares the fair value of a reporting unit to its carrying value, including goodwill. The Company uses the income approach and the market approach to determine the fair value of a reporting unit. The assumptions used in these approaches include revenue growth and profitability, terminal values, discount rates, and an implied control premium. These assumptions are consistent with those of hypothetical marketplace participants. An impairment is recorded for any excess carrying value above the fair value of the reporting unit, not to exceed the carrying value of goodwill. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the value of goodwill. In the first quarter of fiscal 2020, the Company concluded that impairment indicators existed due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “ Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using the income approach and the market approach. As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 1, 2022 was $11.7 million. 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. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the values of our indefinite-lived tradenames. As discussed above, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 1, 2022 were $70.0 million and $15.0 million, respectively. |
IMPAIRMENT OF OTHER LONG-LIVED ASSETS | Impairment of Other Long-Lived Assets The Company reviews other long-lived assets, including operating lease assets, 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 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. There were no impairments to other long-lived assets in fiscal 2021. |
DEFERRED DEBT ISSUANCE COSTS | Deferred Debt Issuance CostsDebt 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 sheets 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 |
REVENUE RECOGNITION | Revenue Recognition 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 when 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. For purchases made through the Company’s eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. Loyalty program - Retail customers can earn loyalty points that accumulate towards earning reward certificates that are redeemable for a specified amount off of future purchases for a specified period of time. Points and reward certificates earned by retail customers under the Company’s loyalty program represent a separate performance obligation. For transactions where a customer earns loyalty points, the Company allocates revenue between the goods sold and the loyalty points expected to be earned towards a reward certificate based upon the relative standalone selling price. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets and then recognized as revenue upon redemption of the reward certificate. Loyalty program breakage is recognized as revenue based on the customer redemption pattern. Gift Cards - Customer purchases of gift cards are not recognized as revenue until the gift card is redeemed. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets. Gift card breakage is recognized as revenue based on the customer redemption pattern. Royalty Revenues - 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. Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company. 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 most retail transactions in stores, no significant judgments are involved since revenue is recognized at the point of sale when tender is exchanged and the customer receives the goods. For retail transactions made through the Company's eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. The Company recognizes revenue from omni-channel sales, including buy on-line and pick up in store, buy-on-line, ship-to-store, and buy-on-line, deliver-from-store, when the product is physically delivered to the customer or when the product arrives at the store and has been picked up by the customer. 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. |
COST OF GOODS SOLD AND GROSS PROFIT | Costs of Goods Sold and Selling, General and Administrative Expenses In addition to the cost of product, cost of goods sold include changes to our inventory reserve and expenses related to the merchandising, design, and procurement of product, including inbound freight costs, purchasing and receiving costs, and inspection costs. Also included in costs of goods sold are the costs of shipping eCommerce product to end consumers. For omni-channel transactions, costs of goods sold include the costs of shipping product to end customers or to retail stores. Retail store occupancy costs, distribution expenses, and generally all expenses other than interest and income taxes are included in SG&A 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, including eCommerce fulfillment costs, and delivery to our wholesale customers and to our retail stores. Distribution expenses included in SG&A totaled $206.6 million, $190.7 million, and $191.1 million for fiscal years 2021, 2020, and 2019, respectively. Gross Profit Gross profit is calculated as consolidated net sales less cost of goods sold, and gross margin is calculated as gross profit divided by consolidated net sales. Definitions of gross profit and gross margin vary across the industry and, as such, our metrics may not be comparable to other companies. |
ROYALTIES AND LICENSE FEES | Income from Royalties and License Fees We license our Carter’s , OshKosh , Child of Mine , Just One You , Simple Joys , and Carter’s My First Love |
ADVERTISING EXPENSES | Advertising Expenses Advertising production costs and costs associated with communicating advertising that has been produced are expensed when the advertising event takes place. Certain other advertising costs where it is uncertain when the expected benefits would occur are expensed as incurred. Advertising expenses were $102.8 million, $75.6 million, and $93.4 million for fiscal years 2021, 2020, and 2019, respectively, and are included in SG&A expenses on the Company’s consolidated statement of operations. Deferred advertising costs for advertisements that have not yet occurred or for advertising services that have not yet been received were $4.1 million and $3.8 million at January 1, 2022 and January 2, 2021, respectively, and are included in Prepaid expenses and other current assets on the Company’s consolidated balance sheets. |
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. For performance awards containing retirement provisions, stock-based compensation expense is recognized over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal service period, or over the period in which the required performance period has been met. For awards containing retirement provisions that are granted to retirement eligible employees, stock-based compensation expense is recognized over the period in which the required performance has been met. 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. For performance awards containing retirement provisions, stock-based compensation expense is recognized over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal service period, or over the period in which the required performance period has been met. For awards containing retirement provisions that are granted to retirement eligible employees, stock-based compensation expense is recognized over the period in which the required performance has been met. 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 basis of assets and liabilities using presently enacted tax rates. Deferred tax assets are a component of non-current Other assets in the Company’s consolidated balance sheet. 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. Supplemental Cash Flow Information Interest paid in cash approximated $59.0 million, $55.1 million, and $36.5 million for fiscal years 2021, 2020, and 2019, respectively. Income taxes paid in cash approximated $115.3 million, $54.7 million and $67.6 million for fiscal years 2021, 2020, and 2019, respectively. |
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). |
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 2021, 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. Any service costs that arise during the period are presented in the same statement line item as other employee compensation on the consolidated statement of operations. All other components of current period costs related to defined benefit plans, such as prior service costs and actuarial gains and losses, are presented in Other (income) expense, net on the consolidated statement of operations. The actuarial 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. 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. |
SEASONALITY | SeasonalityThe 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 | Recent Accounting Pronouncements To Be Adopted After Fiscal 2021 Reference Rate Reform (ASU 2020-04) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
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 certain of its licensees. Disaggregated revenues from these sources for fiscal years 2021, 2020, and 2019 were as follows: Fiscal year ended January 1, 2022 (52 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,126,415 $ 171,703 $ 1,298,118 Direct-to-consumer 1,899,262 — 289,060 2,188,322 $ 1,899,262 $ 1,126,415 $ 460,763 $ 3,486,440 Royalty income, net $ 8,541 $ 15,808 $ 4,332 $ 28,681 Fiscal year ended January 2, 2021 (53 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 996,088 $ 120,244 $ 1,116,332 Direct-to-consumer 1,671,644 — 236,358 1,908,002 $ 1,671,644 $ 996,088 $ 356,602 $ 3,024,334 Royalty income, net $ 8,732 $ 13,120 $ 4,424 $ 26,276 Fiscal year ended December 28, 2019 (52 weeks) (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 1,205,646 $ 163,793 $ 1,369,439 Direct-to-consumer 1,884,150 — 265,697 2,149,847 $ 1,884,150 $ 1,205,646 $ 429,490 $ 3,519,286 Royalty income, net $ 12,990 $ 17,670 $ 3,977 $ 34,637 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Trade receivables from wholesale customers, net $ 233,928 $ 180,830 Royalties receivable 5,769 5,733 Tenant allowances and other receivables 10,352 12,315 Total receivables $ 250,049 $ 198,878 Less: Wholesale accounts receivable reserves (*) (18,695) (12,366) Accounts receivable, net $ 231,354 $ 186,512 (*) Includes allowance for credit losses of $7.3 million and $5.9 million for the periods ended January 1, 2022 and January 2, 2021, respectively. |
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 a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) January 1, 2022 January 2, 2021 Contract liabilities - current: Unredeemed gift cards $ 21,619 $ 18,300 Unredeemed customer loyalty rewards 5,659 5,241 Carter’s credit card - upfront bonus (1) 714 714 Total contract liabilities - current (2) $ 27,992 $ 24,255 Contract liabilities - non-current (3) $ 2,143 $ 2,857 Total contract liabilities $ 30,135 $ 27,112 (1) The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months. (2) Included with Other current liabilities on the Company’s consolidated balance sheet. (3) This amount reflects the non-current portion of the Carter’s credit card upfront bonus. 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. |
Accounts Receivable Reserves | Information regarding Wholesale accounts receivable reserves is as follows: (dollars in thousands) Wholesale accounts receivable reserves Balance at December 29, 2018 $ 11,866 Additional provisions 9,047 Charges to reserve (7,939) Reclassification to Trade receivables (1) (1,691) Balance at December 28, 2019 $ 11,283 Additional provisions 9,625 Charges to reserve (2) (8,542) Balance at January 2, 2021 $ 12,366 Additional provisions 13,282 Charges to reserve (6,953) Balance at January 1, 2022 $ 18,695 (1) The Company reclassified $1.7 million of customer support related items from Wholesale accounts receivable reserves into Trade receivables from wholesale customers, net for the period December 28, 2019. (2) Charges to the reserve include total write-offs of $6.5 million related to the bankruptcy of customers during fiscal 2020. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Lease Expense | The following components of lease expense are included in SG&A expenses on the Company’s consolidated statements of operations for the fiscal periods indicated: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 December 28, 2019 Operating lease cost $ 166,481 $ 180,056 $ 179,982 Variable lease cost (*) 64,410 71,971 63,043 Net lease cost $ 230,891 $ 252,027 $ 243,025 (*) Includes short-term leases, which are not material, and operating lease impairment charges. |
Supplemental Information | Supplemental balance sheet information related to leases was as follows: January 1, 2022 January 2, 2021 Weighted average remaining operating lease term (years) 4.9 5.4 Weighted average discount rate for operating leases 3.26% 3.33% Cash paid for amounts included in the measurement of operating lease liabilities in fiscal 2021 and fiscal 2020 was $209.1 million and $161.7 million, respectively. Operating lease assets obtained in exchange for operating lease liabilities in fiscal 2021 and fiscal 2020 were $39.6 million and $62.6 million, respectively. |
Lessee, Operating Lease, Liability, Maturity | As of January 1, 2022, the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases 2022 $ 164,338 2023 141,248 2024 113,584 2025 81,206 2026 57,194 After 2026 82,197 Total lease payments $ 639,767 Less: Interest (50,369) Present value of lease liabilities (*) $ 589,398 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment | Property, plant, and equipment, net consists of the following: (dollars in thousands) January 1, 2022 January 2, 2021 Land, building, and leasehold improvements $ 328,771 $ 358,121 Fixtures, equipment, and computer hardware 280,022 308,260 Computer software 113,284 159,558 Marketing fixtures 4,551 9,819 Construction in progress 18,302 10,567 744,930 846,325 Accumulated depreciation and amortization (528,926) (583,980) Total $ 216,004 $ 262,345 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The balances and changes in the carrying amount of goodwill attributable to each segment were as follows: (dollars in thousands) U.S. Retail U.S. Wholesale International Total Balance at December 28, 2019 $ 83,934 $ 74,454 $ 70,638 $ 229,026 Goodwill impairment (1) — — (17,742) (17,742) Foreign currency impact — — 492 492 Balance at January 2, 2021 $ 83,934 $ 74,454 $ 53,388 $ 211,776 Foreign currency impact — — 247 247 Balance at January 1, 2022 (2) $ 83,934 $ 74,454 $ 53,635 $ 212,023 (1) In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment. (2) Goodwill for the International reporting unit is net of accumulated impairment losses of $17.7 million. |
Tradename and Intangible Assets | A summary of the carrying value of the Company’s intangible assets were as follows: January 1, 2022 January 2, 2021 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename (1) Indefinite 70,000 — 70,000 70,000 — 70,000 Skip Hop tradename (2) Indefinite 15,000 — 15,000 15,000 — 15,000 Finite-life tradenames 5 - 20 years 3,911 1,501 2,410 3,911 1,251 2,660 Total tradenames, net $ 309,144 $ 1,501 $ 307,643 $ 309,144 $ 1,251 $ 307,893 Skip Hop customer relationships 15 years $ 47,300 $ 15,010 $ 32,290 $ 47,300 $ 11,834 $ 35,466 Carter’s Mexico customer relationships 10 years 3,047 1,368 1,679 3,108 1,064 2,044 Total customer relationships, net $ 50,347 $ 16,378 $ 33,969 $ 50,408 $ 12,898 $ 37,510 (1) In fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. (2) In fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. |
Future Amortization Expense | The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense 2022 $ 3,727 2023 $ 3,685 2024 $ 3,655 2025 $ 3,655 2026 $ 3,655 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive (loss) income | The components of Accumulated other comprehensive (loss) income consisted of the following: (dollars in thousands) Pension liability adjustments Post-retirement liability adjustments Cumulative translation adjustments Accumulated other comprehensive (loss) income Balance at December 29, 2018 $ (9,562) $ 1,687 $ (32,964) $ (40,839) Reclassification of tax effects (*) (1,880) 380 — (1,500) Fiscal year 2019 change 746 (483) 6,442 6,705 Balance at December 28, 2019 (10,696) 1,584 (26,522) (35,634) Fiscal year 2020 change (2,197) (144) 5,215 2,874 Balance at January 2, 2021 (12,893) 1,440 (21,307) (32,760) Fiscal year 2021 change 3,973 (115) 5 3,863 Balance at January 1, 2022 $ (8,920) $ 1,325 $ (21,302) $ (28,897) (*) In fiscal 2019, the Company reclassified $1.5 million of tax benefits from accumulated other comprehensive loss to retained earnings for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (dollars in thousands) January 1, 2022 January 2, 2021 $500 million, 5.500% Senior Notes due 2025 $ 500,000 $ 500,000 $500 million, 5.625% Senior Notes due 2027 500,000 500,000 Total senior notes $ 1,000,000 $ 1,000,000 Less: unamortized issuance-related costs for senior notes (8,630) (10,470) Senior notes, net $ 991,370 $ 989,530 Secured revolving credit facility — — Total long-term debt, net $ 991,370 $ 989,530 |
Schedule of redemption price applicable where redemption occurs | The redemption price is applicable when the redemption occurs during the twelve-month period beginning on May 15 of each of the years indicated is as follows: Year Percentage 2022 102.75 % 2023 101.38 % 2024 and thereafter 100.00 % Year Percentage 2022 102.81 % 2023 101.41 % 2024 and thereafter 100.00 % |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Open Market Repurchases | For the fiscal year ended January 1, 2022 January 2, 2021 December 28, 2019 Number of shares repurchased 2,967,619 474,684 2,107,472 Aggregate cost of shares repurchased (dollars in thousands) $ 299,339 $ 45,255 $ 196,910 Average price per share $ 100.87 $ 95.34 $ 93.43 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [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) January 1, 2022 January 2, 2021 December 28, 2019 Stock options $ 1,347 $ 2,694 $ 4,070 Restricted stock: Time-based awards 14,756 10,468 9,432 Performance-based awards 3,608 (1,927) 1,552 Stock awards 1,318 1,595 1,475 Total $ 21,029 $ 12,830 $ 16,529 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 2020, the achievement of performance target estimates was revised resulting in a reversal of previously recognized stock-based compensation expense for outstanding performance-based awards. |
Summary of stock option activity | Changes in the Company’s stock options for the fiscal year ended January 1, 2022 were as follows: Number of shares Weighted- average exercise price Weighted-average remaining contractual terms (years) Aggregate intrinsic value Outstanding, January 2, 2021 860,711 $ 84.31 Granted (*) — $ — Exercised (178,803) $ 61.49 Forfeited (7,019) $ 115.11 Expired (16,223) $ 118.88 Outstanding, January 1, 2022 658,666 $ 89.32 4.25 $ 10,827 Vested and expected to vest, January 1, 2022 657,957 $ 89.29 4.25 $ 10,825 Exercisable, January 1, 2022 617,715 $ 87.34 4.12 $ 10,814 |
Summary of restricted stock award activity | The following table summarizes activity related to all restricted stock awards during the fiscal year ended January 1, 2022: Restricted Weighted-average grant-date Outstanding, January 2, 2021 462,537 $ 101.87 Granted 325,322 $ 98.28 Vested (116,238) $ 99.32 Forfeited (126,908) $ 110.21 Outstanding, January 1, 2022 544,713 $ 98.33 |
Summary of issued shares of common stock to non-management board members | Fiscal year Number of shares granted Weighted-average fair value per share 2019 60,700 $ 88.87 2020 58,320 $ 108.76 2021 (*) — $ — (*) The Company did not grant any performance-based restricted stock awards in fiscal 2021. 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 2021, 2020, and 2019, such awards were as follows: Fiscal year Number of shares issued Fair value per share Aggregate value 2019 16,097 $ 91.63 $ 1,475 2020 21,362 $ 74.67 $ 1,595 2021 13,037 $ 101.09 $ 1,318 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, 2022 January 2, 2021 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 74,128 $ 68,331 Interest cost 1,818 2,171 Actuarial (gain) loss (2,405) 6,666 Benefits paid (2,666) (3,040) Projected benefit obligation at end of year $ 70,875 $ 74,128 Change in plan assets: Fair value of plan assets at beginning of year $ 65,417 $ 61,961 Actual return on plan assets 5,938 6,496 Benefits paid (2,666) (3,040) Fair value of plan assets at end of year $ 68,689 $ 65,417 Unfunded status $ 2,186 $ 8,711 |
Components of post retirement benefit expense and pension expense | 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) January 1, 2022 January 2, 2021 December 28, 2019 Recognized in the statement of operations: Interest cost $ 1,818 $ 2,171 $ 2,432 Expected return on plan assets (3,577) (3,217) (2,613) Amortization of net loss (*) 428 510 795 Net periodic pension (benefit) cost $ (1,331) $ (536) $ 614 Changes recognized in other comprehensive income: Net (gain) loss arising during the fiscal year $ (4,765) $ 3,387 $ (182) Amortization of net loss (*) (428) (510) (795) Total changes recognized in other comprehensive income $ (5,193) $ 2,877 $ (977) Total net periodic cost and changes recognized in other comprehensive income $ (6,524) $ 2,341 $ (363) (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2022, approximately $0.2 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic pension cost. The components of net periodic post-retirement benefit 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) January 1, 2022 January 2, 2021 December 28, 2019 Recognized in the statement of operations: Service cost $ 15 $ 25 $ 21 Interest cost 57 94 123 Amortization of net gain (*) (295) (345) (396) Net periodic post-retirement benefit (income) cost $ (223) $ (226) $ (252) Changes recognized in other comprehensive income: Net (gain) loss arising during the fiscal year $ (140) $ (162) $ 238 Amortization of net gain (*) 295 345 396 Total changes recognized in other comprehensive income $ 155 $ 183 $ 634 Total net periodic post-retirement benefit (income) cost and changes recognized in other comprehensive income $ (68) $ (43) $ 382 (*) Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2022, approximately $0.3 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic post-retirement benefit cost. |
Schedule of assumptions used in actuarial computations | The actuarial assumptions used in determining the benefit obligation and net periodic pension cost for our pension plan is presented in the following table: Benefit obligation 2021 2020 Discount rate 2.75% 2.50% Net periodic pension cost 2021 2020 2019 Discount rate 2.50% 3.25% 4.00% Expected long-term rate of return on plan assets 6.00% 6.00% 5.50% The actuarial computations utilized the following assumptions, using year-end measurement dates: Post-retirement benefit obligation 2021 2020 Discount rate 2.50% 2.00% Net periodic post-retirement benefit cost 2021 2020 2019 Discount rate 2.00% 3.00% 4.00% |
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) 2022 $ 2,900 2023 $ 2,980 2024 $ 3,170 2025 $ 3,350 2026 $ 3,610 2027-2031 $ 19,050 |
Fair value of the Company's pension plan assets by category | The fair value of the Company’s pension plan assets at January 1, 2022 and January 2, 2021, by asset category, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Asset category Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash equivalents $ 1,370 $ 1,370 $ — $ 644 $ 644 $ — Equity securities: U.S. Large-Cap blend (1) 7,508 7,508 — 9,006 9,006 — U.S. Large-Cap growth 3,390 3,390 — 4,105 4,105 — U.S. Mid-Cap growth 3,426 3,426 — 3,913 3,913 — U.S. Small-Cap blend 2,054 2,054 — 2,608 2,608 — International blend 8,200 8,200 — 9,882 9,882 — Fixed income securities: Corporate bonds (2) 39,970 39,746 224 31,995 31,751 244 Real estate (3) 2,771 2,771 — 3,264 3,264 — $ 68,689 $ 68,465 $ 224 $ 65,417 $ 65,173 $ 244 (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) January 1, 2022 January 2, 2021 APBO at beginning of fiscal year $ 2,998 $ 3,311 Service cost 15 25 Interest cost 57 94 Actuarial (gain) loss (140) (162) Plan participants’ contribution 20 9 Benefits paid (288) (279) APBO at end of fiscal year $ 2,662 $ 2,998 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, 2022 January 2, 2021 December 28, 2019 Current tax provision: Federal $ 75,408 $ 31,085 $ 50,162 State 16,905 6,331 10,548 Foreign 19,761 11,105 16,740 Total current provision $ 112,074 $ 48,521 $ 77,450 Deferred tax provision (benefit): Federal $ (10,541) $ (18,449) $ (10,775) State (2,428) (3,741) (1,882) Foreign (563) (1,064) (643) Total deferred provision (13,532) (23,254) (13,300) Total provision $ 98,542 $ 25,267 $ 64,150 The components of income before income taxes were as follows: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 December 28, 2019 Domestic $ 333,900 $ 73,525 $ 225,488 Foreign 104,390 61,459 102,464 Total $ 438,290 $ 134,984 $ 327,952 |
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 January 1, 2022 January 2, 2021 December 28, 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 3.0 % 2.7 % 2.5 % Impact of foreign operations (1.8) % (4.8) % (2.4) % Settlement of uncertain tax positions (0.3) % (1.3) % (0.7) % Benefit from stock-based compensation (0.3) % (1.1) % (0.8) % Goodwill impairments and other 0.9 % 2.2 % — % Total 22.5 % 18.7 % 19.6 % |
Components of deferred tax assets and liabilities | The following table reflects the Company’s calculation of the components of deferred tax assets and liabilities as of January 1, 2022 and January 2, 2021. (dollars in thousands) January 1, 2022 January 2, 2021 Deferred tax assets: Assets (Liabilities) Accounts receivable allowance $ 7,026 $ 4,072 Inventory 11,923 11,775 Accrued liabilities 22,226 13,807 Equity-based compensation 3,410 5,039 Deferred employee benefits 5,144 7,928 Leasing liabilities 97,269 130,776 Other 3,845 4,961 Total deferred tax assets 150,843 178,358 Deferred tax liabilities: Depreciation (26,472) (38,777) Leasing assets (80,818) (107,269) Tradename and licensing agreements (76,275) (76,409) Other (5,388) (5,593) Total deferred tax liabilities (188,953) (228,048) Net deferred tax liability $ (38,110) $ (49,690) |
Net deferred tax liability | (dollars in thousands) January 1, 2022 January 2, 2021 Assets (Liabilities) Deferred tax assets $ 2,800 $ 3,080 Deferred tax liabilities (40,910) (52,770) Net deferred tax liability $ (38,110) $ (49,690) |
Unrecognized tax benefits | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (dollars in thousands) Balance at December 29, 2018 $ 13,917 Additions based on tax positions related to fiscal 2019 2,197 Reductions for lapse of statute of limitations (2,191) Balance at December 28, 2019 $ 13,923 Additions based on tax positions related to fiscal 2020 760 Reductions for prior year tax positions (104) Reductions for lapse of statute of limitations (2,056) Balance at January 2, 2021 $ 12,523 Additions based on tax positions related to fiscal 2021 810 Reductions for prior year tax positions (2,207) Reductions for lapse of statute of limitations (2,270) Balance at January 1, 2022 $ 8,856 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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 January 1, 2022 January 2, 2021 December 28, 2019 (52 weeks) (53 weeks) (52 weeks) Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 42,853,009 43,242,967 44,402,438 Dilutive effect of equity awards 149,619 164,754 305,514 Diluted number of common and common equivalent shares outstanding 43,002,628 43,407,721 44,707,952 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 339,748 $ 109,717 $ 263,802 Income allocated to participating securities (4,113) (1,118) (2,430) Net income available to common shareholders $ 335,635 $ 108,599 $ 261,372 Basic net income per common share $ 7.83 $ 2.51 $ 5.89 Diluted net income per common share: Net income $ 339,748 $ 109,717 $ 263,802 Income allocated to participating securities (4,102) (1,115) (2,419) Net income available to common shareholders $ 335,646 $ 108,602 $ 261,383 Diluted net income per common share $ 7.81 $ 2.50 $ 5.85 Anti-dilutive shares excluded from dilutive earnings per share calculations (1) 176,475 564,131 351,777 (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 |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The table below presents certain segment information for our reportable segments and unallocated corporate expenses for the periods indicated: For the fiscal year ended (dollars in thousands) January 1, 2022 % of January 2, 2021 % of Consolidated Net Sales December 28, 2019 % of Consolidated Net Sales Net sales : U.S. Retail $ 1,899,262 54.5 % $ 1,671,644 55.3 % $ 1,884,150 53.5 % U.S. Wholesale 1,126,415 32.3 % 996,088 32.9 % 1,205,646 34.3 % International 460,763 13.2 % 356,602 11.8 % 429,490 12.2 % Total consolidated net sales $ 3,486,440 100.0 % $ 3,024,334 100.0 % $ 3,519,286 100.0 % Operating income (loss): % of % of % of U.S. Retail $ 368,221 19.4 % $ 146,806 8.8 % $ 225,874 12.0 % U.S. Wholesale 195,369 17.3 % 141,456 14.2 % 212,558 17.6 % International 63,806 13.8 % (1,224) (0.3) % 36,650 8.5 % Corporate (*) (130,317) n/a (97,169) n/a (103,210) n/a Total operating income $ 497,079 14.3 % $ 189,869 6.3 % $ 371,872 10.6 % (*) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees. The tables below present additional segment information for our reportable segments for the periods presented: (dollars in millions) January 1, 2022 Charges: U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ (0.6) $ 0.1 $ 2.3 Incremental costs associated with COVID-19 pandemic 2.0 1.7 0.2 Gain on modification of retail store leases (2) (2.6) — — Total charges (3) $ (1.2) $ 1.8 $ 2.5 (1) The fiscal year ended January 1, 2022 also includes corporate charges related to organizational restructuring of $0.7 million. (2) Related to gains on the modification of previously impaired retail store leases. (3) Total charges for the fiscal year ended January 1, 2022 exclude a customer bankruptcy recovery of $38,000. (dollars in millions) January 2, 2021 December 28, 2019 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ 5.0 $ 2.0 $ 2.2 $ — $ — $ — Goodwill impairment — — 17.7 — — — Skip Hop tradename impairment charge 0.5 6.8 3.7 1.2 19.1 10.5 OshKosh tradename impairment charge 13.6 1.6 0.3 — — — Incremental costs associated with COVID-19 pandemic 9.6 9.6 2.2 — — — Retail store operating leases and other long-lived asset impairments, net of gain (2) 7.4 — 0.3 — — — Benefit related to sale of inventory previously reserved in China — — — — — (2.1) Reversal of store restructuring costs previously recorded during the third quarter of fiscal 2017 — — — (0.7) — — Customer bankruptcy recovery — — — — (0.6) — Total charges $ 36.1 $ 20.0 $ 26.4 $ 0.5 $ 18.5 $ 8.4 (1) The fiscal year ended January 2, 2021 and the fiscal year ended December 28, 2019 also includes corporate charges related to organizational restructuring of $7.4 million and $1.6 million, respectively. (2) Impairments include an immaterial gain on the remeasurement of retail store operating leases. |
Inventory, net, by segment | The table below represents inventory by segment: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 U.S. Wholesale (*) $ 513,702 $ 464,229 U.S. Retail 50,563 47,889 International 83,477 87,144 Total $ 647,742 $ 599,262 (*) U.S. Wholesale inventories also include inventory produced and warehoused for the U.S. Retail segment. |
Consolidated Net Sales by Product | The table below represents consolidated net sales by product: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 December 28, 2019 Playclothes $ 1,261,622 $ 1,052,178 $ 1,362,847 Baby 1,124,961 1,026,910 1,228,905 Sleepwear 500,596 441,358 428,541 Other (*) 599,261 503,888 498,993 Total net sales $ 3,486,440 $ 3,024,334 $ 3,519,286 (*) Other product offerings include bedding, outerwear, 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, and Operating lease assets by geographic area: For the fiscal year ended (dollars in thousands) January 1, 2022 January 2, 2021 United States $ 613,111 $ 753,232 International 90,641 102,121 Total (*) $ 703,752 $ 855,353 (*) Fiscal year ended January 2, 2021 was revised to reflect the inclusion of operating lease assets. |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities at the end of any comparable period, were as follows: (dollars in thousands) January 1, 2022 January 2, 2021 Accrued bonuses and incentive compensation $ 47,363 $ 8,873 Accrued employee benefits 26,517 22,876 Unredeemed gift cards 21,619 18,300 Income taxes payable 13,850 21,164 Accrued taxes 12,883 10,900 Accrued interest 11,942 12,092 Accrued salaries and wages 10,821 10,650 Accrued other 31,454 30,385 Other current liabilities $ 176,449 $ 135,240 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 984,294 | $ 1,102,323 | $ 214,311 | $ 170,077 |
Geographic Distribution, Foreign [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 112,700 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accounts Receivable) (Details) - customer | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Sales [Member] | ||
Accounts Receivable [Abstract] | ||
Number of largest wholesale customers being discussed | 0 | |
maximum disclosure percentage of net sales | 10.00% | |
Accounts Receivable [Member] | ||
Accounts Receivable [Abstract] | ||
Number of largest wholesale customers being discussed | 3 | 3 |
Maximum disclosure percentage for gross accounts receivable | 10.00% | 10.00% |
Accounts Receivable [Member] | Customer Concentration Risk | Three Wholesale Customers | ||
Accounts Receivable [Abstract] | ||
Customer concentration risk, gross accounts receivable | 52.00% | 69.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant, and Equipment) (Details) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Retail Store Fixtures, Equipment, and Computers [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Retail Store Fixtures, Equipment, and Computers [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Building and Building Improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 15 years |
Building and Building Improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 26 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Internal-Use Software ) (Details) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Computer Software [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Computer Software [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Intangible Assets ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 03, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 17,742 | $ 0 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 26,500 | 30,800 | |||
Goodwill | 212,023 | 211,776 | 229,026 | |||
Skip Hop Trade Name [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite intangible assets | 15,000 | 15,000 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11,000 | $ 30,800 | ||||
Oshkosh Tradename [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite intangible assets | 70,000 | 70,000 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 15,500 | |||||
Wholesale Segment [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 0 | |||||
Goodwill | 74,454 | 74,454 | 74,454 | |||
Wholesale Segment [Member] | Skip Hop Trade Name [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 19,100 | $ 6,800 | ||||
Wholesale Segment [Member] | Oshkosh Tradename [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,600 | |||||
International Segment [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 17,742 | |||||
Goodwill | 53,635 | 53,388 | 70,638 | |||
International Segment [Member] | Skip Hop Trade Name [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 10,500 | 3,700 | ||||
International Segment [Member] | Oshkosh Tradename [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 300 | |||||
Retail Segment [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 0 | |||||
Goodwill | 83,934 | $ 83,934 | $ 83,934 | |||
Retail Segment [Member] | Skip Hop Trade Name [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,200 | 500 | ||||
Retail Segment [Member] | Oshkosh Tradename [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 13,600 | |||||
Other International Reporting Unit Member [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 17,700 | |||||
Goodwill | $ 11,700 | |||||
Other International Reporting Unit Member [Member] | Skip Hop Goodwill [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 9,400 | |||||
Other International Reporting Unit Member [Member] | Carters Mexico [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 3,100 | |||||
Other International Reporting Unit Member [Member] | Carter's Goodwill [Member] | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 5,200 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | |||
Cooperative advertising arrangements, fair value | $ 0.2 | $ 0.5 | $ 3.1 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Costs of Goods Sold and Selling, General and Administrative Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | |||
Wholesale shipping and handling costs | $ 206.6 | $ 190.7 | $ 191.1 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Advertising Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 102,800 | $ 75,600 | $ 93,400 |
Prepaid Advertising | $ 4,100 | $ 3,800 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | |||
Interest paid in cash | $ 59 | $ 55.1 | $ 36.5 |
Income taxes paid in cash | 115.3 | 54.7 | 67.6 |
Property, plant and equipment additions | $ 15.4 | $ 6 | $ 1.2 |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 3,486,440 | $ 3,024,334 | $ 3,519,286 |
Accounts receivable, gross | 250,049 | 198,878 | |
Accounts Receivable, Allowance for Credit Loss, Current | 7,281 | 5,940 | |
Receivables, Net, Current | 231,354 | 186,512 | |
Reclassification of Accounts Receivable Gross Current | 1,691 | ||
Royalty income, net | 28,681 | 26,276 | 34,637 |
Trade Accounts Receivable [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, gross | 233,928 | 180,830 | |
Royalties receivable [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, gross | 5,769 | 5,733 | |
Tenant allowances and other receivables [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, gross | 10,352 | 12,315 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 18,695 | 12,366 | |
5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,298,118 | 1,116,332 | 1,369,439 |
5600 Retail, Apparel and Accessory Stores [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,188,322 | 1,908,002 | 2,149,847 |
Licensing Agreements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Royalty income, net | 28,681 | 26,276 | 34,637 |
Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,899,262 | 1,671,644 | 1,884,150 |
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 | 1,899,262 | 1,671,644 | 1,884,150 |
Retail Segment [Member] | Licensing Agreements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Royalty income, net | 8,541 | 8,732 | 12,990 |
Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,126,415 | 996,088 | 1,205,646 |
Wholesale Segment [Member] | 5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,126,415 | 996,088 | 1,205,646 |
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] | |||
Royalty income, net | 15,808 | 13,120 | 17,670 |
International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 460,763 | 356,602 | 429,490 |
International [Member] | 5130 Wholesale, Apparel, Piece Goods and Notions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 171,703 | 120,244 | 163,793 |
International [Member] | 5600 Retail, Apparel and Accessory Stores [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 289,060 | 236,358 | 265,697 |
International [Member] | Licensing Agreements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Royalty income, net | $ 4,332 | $ 4,424 | $ 3,977 |
REVENUE RECOGNITION Wholesale a
REVENUE RECOGNITION Wholesale accounts receivable reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 18,695 | $ 12,366 | $ 11,283 | $ 11,866 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 13,282 | 9,625 | 9,047 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (6,953) | (8,542) | (7,939) | |
Reclassification of Accounts Receivable Gross Current | $ (1,691) | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 6,500 |
REVENUE RECOGNITION (Contract A
REVENUE RECOGNITION (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unredeemed gift cards | $ 21,619 | $ 18,300 |
Contract with Customer, Refund Liability, Current | 5,659 | 5,241 |
Contract with Customer Private label credit card | 714 | |
Contract with Customer, Liability, Current | 27,992 | 24,255 |
Contract with Customer, Liability, Noncurrent | 2,143 | 2,857 |
Contract with Customer, Liability, Total | $ 30,135 | $ 27,112 |
LEASES (Operating lease term of
LEASES (Operating lease term of contract and Other) (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lessee Operating Lease Lease Not yet Commenced Liability Incurred | $ 6.8 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of lease | 1 year |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of lease | 10 years |
Lessee, Operating Lease, Option to Extend | 5 |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
LEASES (Expense) (Details)
LEASES (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 166,481 | $ 180,056 | $ 179,982 |
Variable Lease, Cost | 64,410 | 71,971 | 63,043 |
Lease, Cost, Total | $ 230,891 | $ 252,027 | $ 243,025 |
LEASES (Supplemental balance sh
LEASES (Supplemental balance sheet information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days | 5 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.26% | 3.33% |
Operating Lease, Payments | $ 209.1 | $ 161.7 |
Non-cash transactions to recognize operating assets and liabilities | $ 39.6 | $ 62.6 |
LEASES (Maturities of lease lia
LEASES (Maturities of lease liabilities) (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 164,338 |
2023 | 141,248 |
2024 | 113,584 |
2025 | 81,206 |
2026 | 57,194 |
After 2026 | 82,197 |
Total lease payments | 639,767 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (50,369) |
Operating Lease, Liability | $ 589,398 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 744,930 | $ 846,325 | |
Accumulated depreciation and amortization | (528,926) | (583,980) | |
Property, plant, and equipment, net | 216,004 | 262,345 | |
Depreciation, Depletion and Amortization, Nonproduction | 90,400 | 90,300 | $ 92,200 |
Land, Buildings, and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 328,771 | 358,121 | |
Furniture And Fixtures And Computer Hardware | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 280,022 | 308,260 | |
Computer Software, Intangible Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 113,284 | 159,558 | |
Marketing Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,551 | 9,819 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18,302 | $ 10,567 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 03, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill and Other Intangible Assets [Line Items] | ||||||
Foreign currency impact | $ 247 | $ 492 | ||||
Goodwill | 212,023 | 211,776 | $ 229,026 | |||
Goodwill impairment | 0 | (17,742) | 0 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 26,500 | 30,800 | |||
Amortization of intangible assets | 3,700 | |||||
Year one | 3,727 | |||||
Year two | 3,685 | |||||
Year three | 3,655 | |||||
Year four | 3,655 | |||||
Year five | 3,655 | |||||
Goodwill, Impaired, Accumulated Impairment Loss | 17,700 | |||||
Retail Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Foreign currency impact | 0 | 0 | ||||
Goodwill | 83,934 | 83,934 | 83,934 | |||
Goodwill impairment | 0 | |||||
Wholesale Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Foreign currency impact | 0 | |||||
Goodwill | 74,454 | 74,454 | 74,454 | |||
Goodwill impairment | 0 | |||||
International Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Foreign currency impact | 247 | 492 | ||||
Goodwill | 53,635 | 53,388 | $ 70,638 | |||
Goodwill impairment | (17,742) | |||||
Goodwill, Impaired, Accumulated Impairment Loss | 17,700 | |||||
Other International Reporting Unit Member [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 11,700 | |||||
Goodwill impairment | $ (17,700) | |||||
Other Tradenames [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Finite intangible assets, Gross amount | 3,911 | 3,911 | ||||
Finite intangible assets, Accumulated amortization | 1,501 | 1,251 | ||||
Finite intangible assets, Net amount | $ 2,410 | 2,660 | ||||
Other Tradenames [Member] | Minimum | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 5 years | |||||
Other Tradenames [Member] | Maximum | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 20 years | |||||
Tradenames [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Finite intangible assets, Gross amount | $ 309,144 | 309,144 | ||||
Finite intangible assets, Accumulated amortization | 1,501 | 1,251 | ||||
Finite intangible assets, Net amount | $ 307,643 | 307,893 | ||||
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 | 15,010 | 11,834 | ||||
Finite intangible assets, Net amount | $ 32,290 | 35,466 | ||||
Carters Mexico Customer Relationships [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 10 years | |||||
Finite intangible assets, Gross amount | $ 3,047 | 3,108 | ||||
Finite intangible assets, Accumulated amortization | 1,368 | 1,064 | ||||
Finite intangible assets, Net amount | 1,679 | 2,044 | ||||
Customer Relationships [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Finite intangible assets, Gross amount | 50,347 | 50,408 | ||||
Finite intangible assets, Accumulated amortization | 16,378 | 12,898 | ||||
Finite intangible assets, Net amount | 33,969 | 37,510 | ||||
Carter's Goodwill [Member] | Other International Reporting Unit Member [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ (5,200) | |||||
Skip Hop Goodwill [Member] | Other International Reporting Unit Member [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | (9,400) | |||||
Carters Mexico [Member] | Other International Reporting Unit Member [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | (3,100) | |||||
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] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 15,500 | |||||
Indefinite intangible assets | 70,000 | 70,000 | ||||
Oshkosh Tradename [Member] | Retail Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 13,600 | |||||
Oshkosh Tradename [Member] | Wholesale Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,600 | |||||
Oshkosh Tradename [Member] | International Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 300 | |||||
Skip Hop Trade Name [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11,000 | 30,800 | ||||
Indefinite intangible assets | $ 15,000 | $ 15,000 | ||||
Skip Hop Trade Name [Member] | Retail Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,200 | 500 | ||||
Skip Hop Trade Name [Member] | Wholesale Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 19,100 | 6,800 | ||||
Skip Hop Trade Name [Member] | International Segment [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 10,500 | $ 3,700 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cumulative translation adjustment, beginning balance | $ (21,307) | $ (26,522) | $ (32,964) | |
Cumulative translation adjustment, current year change | 5 | 5,215 | 6,442 | |
Cumulative translation adjustment, ending balance | (21,302) | (21,307) | (26,522) | |
Accumulated other comprehensive income (loss), beginning balance | (32,760) | (35,634) | (40,839) | |
Total other comprehensive income (loss) | 3,863 | 2,874 | 6,705 | |
Accumulated other comprehensive income (loss), ending balance | (28,897) | (32,760) | (35,634) | |
Other Comprehensive Income (Loss), Defined Benefit Plans, Net Unrealized Gain (Loss) Arising During Period, Net of Tax | 3,973 | (2,197) | 746 | |
Other Comprehensive Income (Loss), Postretirement Benefit Obligations, Net Unrealized Gain (Loss) Arising During Period, Net of Tax | (115) | (144) | (483) | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | 0 | ||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension/post-retirement liability adjustment, beginning balance | (12,893) | (10,696) | (9,562) | |
Pension/post-retirement liability adjustment, current year change | (2,197) | 746 | ||
Pension/post-retirement liability adjustment, ending balance | (8,920) | (12,893) | (10,696) | |
Pension/post-retirement liability adjustments, tax benefit | 2,800 | 4,000 | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (1,880) | |||
Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension/post-retirement liability adjustment, beginning balance | 1,440 | 1,584 | 1,687 | |
Pension/post-retirement liability adjustment, current year change | (144) | (483) | ||
Pension/post-retirement liability adjustment, ending balance | 1,325 | 1,440 | 1,584 | |
Pension/post-retirement liability adjustments, tax benefit | $ 400 | $ 500 | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 380 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | $ (1,500) | ||
[1] | In the first quarter of fiscal 2019, the Company reclassified $1.5 million of tax benefits from “Accumulated other comprehensive loss” to “Retained earnings” for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
LONG-TERM DEBT (Schedule) (Deta
LONG-TERM DEBT (Schedule) (Details) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 | May 11, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt, net | $ 991,370,000 | $ 989,530,000 | |
Long-term debt, BS | 989,530,000 | ||
Total Senior Notes Member | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 1,000,000,000 | 1,000,000,000 | |
Debt Issuance Costs, Net | (8,630,000) | (10,470,000) | |
Senior notes, net | 991,370,000 | 989,530,000 | |
Long-term debt, BS | 1,000,000,000 | ||
Secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Secured revolving credit facility | 0 | 0 | |
Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | Senior notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | $ 500,000,000 |
Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member | Senior notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000,000 | $ 500,000,000 |
LONG-TERM DEBT (Secured Revolvi
LONG-TERM DEBT (Secured Revolving Credit Facility) (Details) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 | May 11, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 4,100,000 | $ 5,000,000 | ||
LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.125% | |||
Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.125% | |||
Secured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Secured revolving credit facility | $ 0 | 0 | ||
Available for future borrowing | 745,900,000 | 745,000,000 | ||
Senior notes | Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.50% | |||
Debt Issuance Costs, Gross | $ 6,500,000 | $ 5,800,000 | ||
Long-term Debt, Gross | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
LONG-TERM DEBT (Terms of the Se
LONG-TERM DEBT (Terms of the Secured Revolving Credit Facility ) (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Apr. 21, 2021 | Jan. 02, 2021 | May 11, 2020 | Dec. 28, 2019 | Aug. 25, 2017 |
Amendment No. 3 Member [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Minimum liquidity | $ 950,000 | |||||
Debt Issuance Costs, Gross | $ 200 | |||||
Additional Restricted Payments | 250,000 | |||||
Increased in Minimum liquidity | 250,000 | |||||
Amendment No. 2 Member Member | ||||||
Debt Instrument [Line Items] | ||||||
Minimum liquidity | $ 700,000 | |||||
LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 1.125% | |||||
Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 0.125% | |||||
Senior notes | Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | $ 500,000 | |||
Stated interest rate | 5.50% | |||||
Debt Issuance Costs, Gross | $ 6,500 | $ 5,800 | ||||
Secured revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000 | |||||
Secured revolving credit facility | United States Dollar Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 650,000 | |||||
Secured revolving credit facility | Multicurrency Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000 |
LONG-TERM DEBT (Senior Notes) (
LONG-TERM DEBT (Senior Notes) (Details) - USD ($) $ in Thousands | Mar. 14, 2019 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | May 11, 2020 |
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ (7,823) | ||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 0 | 0 | 5,252 | ||
Guarantor subsidiaries percentage of ownership | 100.00% | ||||
Schedule of redemption price applicable where redemption occurs | The redemption price is applicable when the redemption occurs during the twelve-month period beginning on May 15 of each of the years indicated is as follows: Year Percentage 2022 102.75 % 2023 101.38 % 2024 and thereafter 100.00 % Year Percentage 2022 102.81 % 2023 101.41 % 2024 and thereafter 100.00 % | ||||
Affirmative covenants | 25.00% | ||||
Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 500,000 | 500,000 | $ 500,000 | ||
Stated interest rate | 5.50% | ||||
Proceeds from Issuance of Debt | $ 494,800 | 494,500 | |||
Debt Issuance Costs, Gross | 5,800 | $ 6,500 | |||
Five Point Two Five Percent Senior Notes due Twenty Twenty Seven Member [Member] | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 400,000 | ||||
Stated interest rate | 5.25% | ||||
Redemption price, percentage | 1.31% | ||||
Gain (Loss) on Extinguishment of Debt | 7,800 | ||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 5,200 | ||||
Debt Issuance Costs, Net | $ 2,600 | ||||
Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | |||
Stated interest rate | 5.625% |
LONG-TERM DEBT Redemption Sched
LONG-TERM DEBT Redemption Schedule (Details) - Senior notes | 12 Months Ended |
Jan. 01, 2022 | |
Debt Instrument, Redemption, Period One [Member] | Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.75% |
Debt Instrument, Redemption, Period One [Member] | Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.81% |
Debt Instrument, Redemption, Period Two [Member] | Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.38% |
Debt Instrument, Redemption, Period Two [Member] | Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.41% |
Debt Instrument, Redemption, Period Three [Member] | Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100.00% |
Debt Instrument, Redemption, Period Three [Member] | Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100.00% |
COMMON STOCK ( Total Authorizat
COMMON STOCK ( Total Authorizations and Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Feb. 24, 2022 | |
Equity [Abstract] | ||||
Stock Repurchased During Period, Shares | 2,967,619 | 474,684 | 2,107,472 | |
Stock Repurchased During Period, Value | $ 299,339 | $ 45,255 | $ 196,910 | |
Average price of repurchased and retired shares | $ 100.87 | $ 95.34 | $ 93.43 | |
Subsequent Event [Line Items] | ||||
Remaining capacity under authorization | $ 351,100 | |||
Subsequent Event [Member] | ||||
Equity [Abstract] | ||||
Stock repurchase, authorized amount | $ 1,000,000 | |||
Subsequent Event [Line Items] | ||||
Stock repurchase, authorized amount | 1,000,000 | |||
Remaining capacity under authorization | $ 301,900 |
COMMON STOCK (Dividends) (Detai
COMMON STOCK (Dividends) (Details) - $ / shares | Feb. 24, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Equity [Abstract] | ||||||||
Dividend declared and paid per common share | $ 0.60 | $ 0.40 | $ 0.40 | $ 0.60 | $ 1.40 | $ 0.60 | $ 2 | |
Subsequent Event [Line Items] | ||||||||
Dividend declared and paid per common share | $ 0.60 | $ 0.40 | $ 0.40 | $ 0.60 | $ 1.40 | $ 0.60 | $ 2 | |
Subsequent Event [Member] | ||||||||
Equity [Abstract] | ||||||||
Dividend declared and paid per common share | $ 0.75 | |||||||
Subsequent Event [Line Items] | ||||||||
Dividend declared and paid per common share | $ 0.75 |
COMMON STOCK (Details)
COMMON STOCK (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Equity [Abstract] | |||||||
Dividend declared and paid per common share | $ 0.60 | $ 0.40 | $ 0.40 | $ 0.60 | $ 1.40 | $ 0.60 | $ 2 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | May 17, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock available under the existing plan (in shares) | 18,778,392 | |||
Available for grant under the Plan (in shares) | 3,027,361 | |||
Intrinsic value of basic stock options exercised | $ 7.8 | $ 8.2 | $ 13.3 | |
Weighted- average exercise price per share, Exercisable (in dollars per share) | $ 87.34 | |||
Vested and expected to vest (in shares) | 657,957 | |||
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share) | $ 89.29 | |||
Weighted-average expense recognition period (in years) | 2 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 116,238 | 140,345 | 131,924 | |
Granted (in shares) | 325,322 | |||
Granted (in dollars per share) | $ 98.28 | |||
Vested (in dollars per share) | $ 99.32 | $ 89.80 | $ 93.03 | |
Shares outstanding (in shares) | 544,713 | 462,537 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 98.33 | $ 101.87 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Unrecognized compensation cost | $ 0.2 | |||
Weighted-average expense recognition period (in years) | 2 months 12 days | |||
Performance-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Unrecognized compensation cost | $ 0.2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |||
Shares outstanding (in shares) | 56,814 | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 88.87 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 30.9 | |||
Time-based restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 30.7 | |||
Weighted-average expense recognition period (in years) | 2 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 116,238 | 125,209 | 102,492 | |
Vested (in dollars per share) | $ 99.32 | $ 90.52 | $ 93.70 | |
Performance-based restricted stock awards to the CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 58,320 | 60,700 | |
Granted (in dollars per share) | $ 0 | $ 108.76 | $ 88.87 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock-Based Compensation by Award Type) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
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 | 116,238 | 140,345 | 131,924 |
Stock-based compensation | $ 21,029 | $ 12,830 | $ 16,529 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 21,029 | $ 12,830 | $ 16,529 |
Vested (in dollars per share) | $ 99.32 | $ 89.80 | $ 93.03 |
Shares outstanding (in shares) | 544,713 | 462,537 | |
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 98.33 | $ 101.87 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,347 | $ 2,694 | $ 4,070 |
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 | 116,238 | 125,209 | 102,492 |
Vested (in dollars per share) | $ 99.32 | $ 90.52 | $ 93.70 |
Time-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 14,756 | $ 10,468 | $ 9,432 |
Performance-based Awards | |||
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 | 0 | ||
Stock-based compensation | $ 3,608 | (1,927) | 1,552 |
Shares outstanding (in shares) | 56,814 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 88.87 | ||
Stock awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,318 | $ 1,595 | $ 1,475 |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Stock Options (Number of shares) | |||
Outstanding, beginning balance (in shares) | 860,711 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (178,803) | ||
Forfeited (in shares) | (7,019) | ||
Expired (in shares) | (16,223) | ||
Outstanding, ending balance (in shares) | 658,666 | 860,711 | |
Vested and expected to vest (in shares) | 657,957 | ||
Exercisable (in shares) | 617,715 | ||
Stock Options (Weighted-average exercise price) | |||
Weighted- average exercise price per share beginning balance (in dollars per share) | $ 84.31 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 61.49 | ||
Forfeited (in dollars per share) | 115.11 | ||
Expired (in dollars per share) | 118.88 | ||
Weighted- average exercise price per share ending balance (in dollars per share) | 89.32 | $ 84.31 | |
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share) | 89.29 | ||
Weighted- average exercise price per share, Exercisable (in dollars per share) | $ 87.34 | ||
Weighted-average remaining contractual terms (years), Outstanding | 4 years 3 months | ||
Weighted-average remaining contractual terms (years), Vested and Expected to Vest | 4 years 3 months | ||
Weighted-average remaining contractual terms (years), Exercisable | 4 years 1 month 13 days | ||
Aggregate intrinsic value, Outstanding | $ 10,827 | ||
Aggregate intrinsic value, Vested and Expected to Vest | 10,825 | ||
Aggregate intrinsic value, Exercisable | $ 10,814 |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Restricted Stock | |||
Shares outstanding (in shares) | 462,537 | ||
Granted (in shares) | 325,322 | ||
Vested (in shares) | (116,238) | (140,345) | (131,924) |
Forfeited (in shares) | (126,908) | ||
Shares outstanding (in shares) | 544,713 | 462,537 | |
Weighted-average grant-date fair value | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 98.33 | $ 101.87 | |
Granted (in dollars per share) | 98.28 | ||
Vested (in dollars per share) | 99.32 | 89.80 | $ 93.03 |
Forfeited (in dollars per share) | 110.21 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 98.33 | $ 101.87 | |
Weighted-average expense recognition period (in years) | 2 years 6 months | ||
Performance-based restricted stock awards to the CEO | |||
Restricted Stock | |||
Granted (in shares) | 0 | 58,320 | 60,700 |
Weighted-average grant-date fair value | |||
Granted (in dollars per share) | $ 0 | $ 108.76 | $ 88.87 |
Time-based restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 30.7 | ||
Restricted Stock | |||
Vested (in shares) | (116,238) | (125,209) | (102,492) |
Weighted-average grant-date fair value | |||
Vested (in dollars per share) | $ 99.32 | $ 90.52 | $ 93.70 |
Weighted-average expense recognition period (in years) | 2 years 6 months | ||
Time-based restricted stock [Member] | Minimum | |||
Weighted-average grant-date fair value | |||
Vesting period (in years) | 3 years | ||
Time-based restricted stock [Member] | Maximum | |||
Weighted-average grant-date fair value | |||
Vesting period (in years) | 4 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 30.9 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0.2 | ||
Restricted Stock | |||
Vested (in shares) | 0 | ||
Shares outstanding (in shares) | 56,814 | ||
Weighted-average grant-date fair value | |||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 88.87 | ||
Weighted-average grant-date fair value outstanding (in dollars per share) | $ 88.87 | ||
Vesting period (in years) | 3 years |
STOCK-BASED COMPENSATION (Non-M
STOCK-BASED COMPENSATION (Non-Management Board Directors) (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per share | $ 98.28 | ||
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from Issuance of Common Stock | $ 0 | ||
Number of shares issued | 13,037 | 21,362 | 16,097 |
Fair value per share | $ 101.09 | $ 74.67 | $ 91.63 |
Aggregate value | $ 1,318,000 | $ 1,595,000 | $ 1,475,000 |
EMPLOYEE BENEFIT PLANS (Defined
EMPLOYEE BENEFIT PLANS (Defined Benefit Plans Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets | 5.50% | ||
Contribution | $ 300 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used in Calculation, Description | 0.25% | ||
Defined Benefit Plan, Benefit Obligation | $ 70,875 | $ 74,128 | $ 68,331 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 2,186 | $ 8,711 | |
Effect of 0.25% increase on projected benefit obligation | $ 2,300 | ||
Expected long-term rate of return on assets | 6.00% | 6.00% | 5.50% |
Benefit payments | $ 2,900 | ||
Expected contribution and benefit payment, five years subsequent to 2017 | 19,050 | ||
2023 | $ 2,980 | ||
Pension Plans | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 36.00% | ||
Pension Plans | Bond Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 60.00% | ||
Pension Plans | Real Estate Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan assets in equity securities (as a percent) | 4.00% |
EMPLOYEE BENEFIT PLANS (Benefit
EMPLOYEE BENEFIT PLANS (Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Change in plan assets: | |||
Contribution | $ 300 | ||
Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 74,128 | $ 68,331 | |
Interest cost | 1,818 | 2,171 | $ 2,432 |
Actuarial (gain) loss | (2,405) | 6,666 | |
Benefits paid | (2,666) | (3,040) | |
Benefit obligation at end of period | 70,875 | 74,128 | 68,331 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 65,417 | 61,961 | |
Actual return on plan assets | 5,938 | 6,496 | |
Fair value of plan assets at end of year | 68,689 | 65,417 | 61,961 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 2,666 | 3,040 | |
Postretirement Benefit | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 2,998 | 3,311 | |
Service cost | 15 | 25 | 21 |
Interest cost | 57 | 94 | 123 |
Actuarial (gain) loss | (140) | (162) | |
Plan participants' contribution | 20 | 9 | |
Benefit obligation at end of period | 2,662 | 2,998 | $ 3,311 |
Change in plan assets: | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 288 | 279 | |
Postretirement Benefit | Other Long Term Liabilities | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of period | 2,700 | ||
Benefit obligation at end of period | $ 2,400 | $ 2,700 |
EMPLOYEE BENEFIT PLANS (Net Per
EMPLOYEE BENEFIT PLANS (Net Periodic (Benefit) Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on accumulated benefit obligation | $ 1,818 | $ 2,171 | $ 2,432 |
Expected return on assets | (3,577) | (3,217) | (2,613) |
Amortization of net actuarial gain (loss) | 428 | 510 | 795 |
Total net periodic (benefit) cost | (1,331) | (536) | 614 |
Total net periodic cost (benefit) and changes recognized in OCI | (6,524) | (2,341) | (363) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (4,765) | 3,387 | (182) |
Amortization of actuarial gain/loss | (428) | (510) | (795) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | (5,193) | 2,877 | (977) |
Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost - benefits attributed to service during the period | 15 | 25 | 21 |
Interest cost on accumulated benefit obligation | 57 | 94 | 123 |
Amortization of net actuarial gain (loss) | (295) | (345) | (396) |
Total net periodic (benefit) cost | (223) | (226) | (252) |
Total net periodic cost (benefit) and changes recognized in OCI | 68 | (43) | (382) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (140) | (162) | 238 |
Amortization of actuarial gain/loss | (295) | (345) | (396) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 155 | $ 183 | $ 634 |
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) | 200 | ||
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) | $ 300 |
EMPLOYEE BENEFIT PLANS (Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions) (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Net periodic pension cost | |||
Expected long-term rate of return on assets | 5.50% | ||
Pension Plans | |||
Benefit obligation | |||
Discount rate | 2.75% | 2.50% | |
Net periodic pension cost | |||
Discount rate | 2.50% | 3.25% | 4.00% |
Expected long-term rate of return on assets | 6.00% | 6.00% | 5.50% |
Postretirement Benefit | |||
Benefit obligation | |||
Discount rate | 2.50% | 2.00% | |
Net periodic pension cost | |||
Discount rate | 2.00% | 3.00% | 4.00% |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Contribution | $ 300 |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | 2,900 |
2023 | 2,980 |
2024 | 3,170 |
2025 | 3,350 |
2026 | 3,610 |
2027-2031 | 19,050 |
Postretirement Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | 300 |
2025 | 200 |
2027-2031 | $ 800 |
EMPLOYEE BENEFIT PLANS (Plan As
EMPLOYEE BENEFIT PLANS (Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution | $ 300 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68,689 | $ 65,417 | $ 61,961 |
Pension Plans | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68,465 | 65,173 | |
Pension Plans | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 224 | 244 | |
Pension Plans | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,370 | 644 | |
Pension Plans | Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,370 | 644 | |
Pension Plans | Cash and Cash Equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | U.S. Large-Cap blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,508 | 9,006 | |
Pension Plans | U.S. Large-Cap blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,508 | 9,006 | |
Pension Plans | U.S. Large-Cap blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | U.S. Large-Cap growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,390 | 4,105 | |
Pension Plans | U.S. Large-Cap growth [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,390 | 4,105 | |
Pension Plans | U.S. Large-Cap growth [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | U.S. Mid-Cap growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,426 | 3,913 | |
Pension Plans | U.S. Mid-Cap growth [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,426 | 3,913 | |
Pension Plans | U.S. Mid-Cap growth [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | U.S. Small-Cap blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,054 | 2,608 | |
Pension Plans | U.S. Small-Cap blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,054 | 2,608 | |
Pension Plans | U.S. Small-Cap blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | International blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,200 | 9,882 | |
Pension Plans | International blend [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,200 | 9,882 | |
Pension Plans | International blend [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Corporate Bond Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39,970 | 31,995 | |
Pension Plans | Corporate Bond Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39,746 | 31,751 | |
Pension Plans | Corporate Bond Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 224 | 244 | |
Pension Plans | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,771 | 3,264 | |
Pension Plans | Real Estate [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,771 | 3,264 | |
Pension Plans | 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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
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 | $ 16.1 | $ 7.7 | $ 8 |
Canada | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan expense for the fiscal year | $ 0.3 | $ 0.2 | $ 0.1 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Millions | Jan. 01, 2022USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized deferred tax liability related to undistributed earnings | $ 3.6 |
Undistributed Earnings of Foreign Subsidiaries | $ 85.5 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 85,500 | ||
Current tax provision: | |||
Federal | 75,408 | $ 31,085 | $ 50,162 |
State | 16,905 | 6,331 | 10,548 |
Foreign | 19,761 | 11,105 | 16,740 |
Total current provision | 112,074 | 48,521 | 77,450 |
Deferred tax provision (benefit): | |||
Federal | (10,541) | (18,449) | (10,775) |
State | (2,428) | (3,741) | (1,882) |
Foreign | (563) | (1,064) | (643) |
Total deferred provision (benefit) | (13,532) | (23,254) | (13,300) |
Total provision | $ 98,542 | $ 25,267 | $ 64,150 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 333,900 | $ 73,525 | $ 225,488 |
Foreign | 104,390 | 61,459 | 102,464 |
Income before income taxes | $ 438,290 | $ 134,984 | $ 327,952 |
INCOME TAXES (Effective Rate Re
INCOME TAXES (Effective Rate Reconciliation) (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income tax rate reconciliation [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | 3.00% | 2.70% | 2.50% |
Impact of foreign operations | (1.80%) | (4.80%) | (2.40%) |
Settlement of uncertain tax positions | (0.30%) | (1.30%) | (0.70%) |
Benefit from stock-based compensation | (0.30%) | (1.10%) | (0.80%) |
Goodwill impairments and other | 0.90% | 2.20% | 0.00% |
Total | 22.50% | 18.70% | 19.60% |
INCOME TAXES (Deferred Taxes) (
INCOME TAXES (Deferred Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Deferred tax assets: | |||
Accounts receivable allowance | $ 7,026 | $ 4,072 | |
Inventory | 11,923 | 11,775 | |
Accrued liabilities | 22,226 | 13,807 | |
Equity-based compensation | 3,410 | 5,039 | |
Deferred employee benefits | 5,144 | 7,928 | |
Deferred rent | 97,269 | 130,776 | |
Other | 3,845 | 4,961 | |
Total deferred tax assets | 150,843 | 178,358 | |
Deferred tax liabilities: | |||
Depreciation | (26,472) | (38,777) | |
Deferred Tax Liabilities, Leasing Arrangements | (80,818) | (107,269) | |
Tradename and licensing agreements | (76,275) | (76,409) | |
Other | (5,388) | (5,593) | |
Deferred Tax Liabilities, Net, Total | 188,953 | 228,048 | |
Deferred Tax Assets, Net, Total | 38,110 | 49,690 | |
Deferred Tax Assets, Net of Valuation Allowance | 2,800 | 3,080 | |
Deferred Tax Liabilities, Gross | $ (40,910) | $ (52,770) |
INCOME TAXES (Uncertain Tax Pro
INCOME TAXES (Uncertain Tax Provisions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Unrecognized income tax benefits [Roll Forward] | |||
Beginning Balance | $ 12,523 | $ 13,923 | $ 13,917 |
Additions based on fiscal year tax positions | 810 | 760 | 2,197 |
Reductions for prior year tax positions | (2,207) | (104) | |
Reductions for lapse of statute of limitations | (2,270) | (2,056) | (2,191) |
Ending Balance | 8,856 | 12,523 | 13,923 |
Impact of recognized tax benefit on effective tax rate, if recognized | 7,500 | ||
Tax reserve for which statute of limitations is expected to expire | 3,100 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 400 | 400 | $ 500 |
Interest accrued for uncertain tax positions | $ 1,800 | $ 2,700 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Weighted-average number of common and common equivalent shares outstanding: | |||
Basic number of common shares outstanding (in shares) | 42,853,009 | 43,242,967 | 44,402,438 |
Dilutive effect of unvested restricted stock awards (in shares) | 149,619 | 164,754 | 305,514 |
Diluted number of common and common equivalent shares outstanding (in shares) | 43,002,628 | 43,407,721 | 44,707,952 |
Basic net income per common share: | |||
Net income | $ 339,748 | $ 109,717 | $ 263,802 |
Income allocated to participating securities | 4,113 | 1,118 | 2,430 |
Net income available to common shareholders | $ 335,635 | $ 108,599 | $ 261,372 |
Basic net income per common share (in USD per share) | $ 7.83 | $ 2.51 | $ 5.89 |
Diluted net income per common share: | |||
Net income | $ 339,748 | $ 109,717 | $ 263,802 |
Income allocated to participating securities | (4,102) | (1,115) | (2,419) |
Net income available to common shareholders | $ 335,646 | $ 108,602 | $ 261,383 |
Diluted net income per common share (in USD per share) | $ 7.81 | $ 2.50 | $ 5.85 |
Anti-dilutive shares excluded from dilutive earnings per share calculations (1) | 176,475 | 564,131 | 351,777 |
SEGMENT INFORMATION (Reportable
SEGMENT INFORMATION (Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 03, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 3,486,440 | $ 3,024,334 | $ 3,519,286 | |||
Percentage of total net sales | 100.00% | 100.00% | 100.00% | |||
Operating income (loss) | $ 497,079 | $ 189,869 | $ 371,872 | |||
Operating income as percentage of segment net sales | 14.30% | 6.30% | 10.60% | |||
Corporate expenses | $ (130,317) | $ (97,169) | $ (103,210) | |||
Goodwill impairment | 0 | 17,742 | 0 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 26,500 | 30,800 | |||
Accounts Receivable, Allowance for Credit Loss, Recovery | 38 | |||||
Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,899,262 | 1,671,644 | 1,884,150 | |||
Goodwill impairment | 0 | |||||
Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,126,415 | 996,088 | 1,205,646 | |||
Goodwill impairment | 0 | |||||
International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment | 17,742 | |||||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Charges | 700 | 7,400 | 1,600 | |||
Operating Segments [Member] | Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,899,262 | $ 1,671,644 | $ 1,884,150 | |||
Percentage of total net sales | 54.50% | 55.30% | 53.50% | |||
Operating income (loss) | $ 368,221 | $ 146,806 | $ 225,874 | |||
Operating income as percentage of segment net sales | 19.40% | 8.80% | 12.00% | |||
Restructuring Charges | $ (600) | $ 5,000 | $ 0 | |||
Goodwill impairment | 0 | 0 | ||||
Other Cost and Expense, Operating | 2,000 | 9,600 | 0 | |||
Gain on modification of retail store leases | (2,600) | |||||
Impairment of Operating lease and Other long-Lived Asset | 7,400 | 0 | ||||
Operating Costs and Expenses | (1,200) | 36,100 | 500 | |||
Accounts Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | ||||
Benefit Related to Sale of Inventory Previously Reserved | 0 | 0 | ||||
Other Restructuring Costs | 0 | (700) | ||||
Operating Segments [Member] | Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,126,415 | $ 996,088 | $ 1,205,646 | |||
Percentage of total net sales | 32.30% | 32.90% | 34.30% | |||
Operating income (loss) | $ 195,369 | $ 141,456 | $ 212,558 | |||
Operating income as percentage of segment net sales | 17.30% | 14.20% | 17.60% | |||
Restructuring Charges | $ 100 | $ 2,000 | $ 0 | |||
Goodwill impairment | 0 | 0 | ||||
Other Cost and Expense, Operating | 1,700 | 9,600 | 0 | |||
Gain on modification of retail store leases | 0 | |||||
Impairment of Operating lease and Other long-Lived Asset | 0 | 0 | ||||
Operating Costs and Expenses | 1,800 | 20,000 | 18,500 | |||
Accounts Receivable, Allowance for Credit Loss, Recovery | 0 | (600) | ||||
Benefit Related to Sale of Inventory Previously Reserved | 0 | 0 | ||||
Other Restructuring Costs | 0 | 0 | ||||
Operating Segments [Member] | International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 460,763 | $ 356,602 | $ 429,490 | |||
Percentage of total net sales | 13.20% | 11.80% | 12.20% | |||
Operating income (loss) | $ 63,806 | $ (1,224) | $ 36,650 | |||
Operating income as percentage of segment net sales | 13.80% | (0.30%) | 8.50% | |||
Restructuring Charges | $ 2,300 | |||||
Goodwill impairment | $ 0 | |||||
Other Cost and Expense, Operating | 200 | $ 2,200 | 0 | |||
Gain on modification of retail store leases | 0 | |||||
Impairment of Operating lease and Other long-Lived Asset | 300 | 0 | ||||
Operating Costs and Expenses | $ 2,500 | 8,400 | ||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | ||||
Benefit Related to Sale of Inventory Previously Reserved | 0 | (2,100) | ||||
Other Restructuring Costs | 0 | |||||
Skip Hop Trade Name [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11,000 | $ 30,800 | ||||
Skip Hop Trade Name [Member] | Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,200 | $ 500 | ||||
Skip Hop Trade Name [Member] | Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 19,100 | 6,800 | ||||
Skip Hop Trade Name [Member] | International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 10,500 | 3,700 | ||||
Skip Hop Trade Name [Member] | Operating Segments [Member] | Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 500 | 1,200 | ||||
Skip Hop Trade Name [Member] | Operating Segments [Member] | Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 6,800 | 19,100 | ||||
Skip Hop Trade Name [Member] | Operating Segments [Member] | International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Charges | 2,200 | 0 | ||||
Goodwill impairment | 17,700 | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3,700 | 10,500 | ||||
Operating Costs and Expenses | 26,400 | |||||
Other Restructuring Costs | 0 | |||||
Oshkosh Tradename [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 15,500 | |||||
Oshkosh Tradename [Member] | Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 13,600 | |||||
Oshkosh Tradename [Member] | Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,600 | |||||
Oshkosh Tradename [Member] | International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 300 | |||||
Oshkosh Tradename [Member] | Operating Segments [Member] | Retail Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 13,600 | 0 | ||||
Oshkosh Tradename [Member] | Operating Segments [Member] | Wholesale Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,600 | 0 | ||||
Oshkosh Tradename [Member] | Operating Segments [Member] | International Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 300 | $ 0 |
SEGMENT INFORMATION (Net Invent
SEGMENT INFORMATION (Net Inventory) (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Segment Reporting Information [Line Items] | ||
Inventory, Net | $ 647,742 | $ 599,262 |
Operating Segments [Member] | Wholesale [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventory, Net | 513,702 | 464,229 |
Operating Segments [Member] | Retail Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventory, Net | 50,563 | 47,889 |
Operating Segments [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventory, Net | $ 83,477 | $ 87,144 |
SEGMENT INFORMATION (Net Sales)
SEGMENT INFORMATION (Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 3,486,440 | $ 3,024,334 | $ 3,519,286 |
Playclothes [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,261,622 | 1,052,178 | 1,362,847 |
Baby [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,124,961 | 1,026,910 | 1,228,905 |
Sleepwear [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 500,596 | 441,358 | 428,541 |
Other Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 599,261 | $ 503,888 | $ 498,993 |
SEGMENT INFORMATION (Revenue) (
SEGMENT INFORMATION (Revenue) (Details) - Canada | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
International Long-Lived Assets, Percent of Total Long-Lived Assets | 82.70% | 87.90% | |
Percentage of total net sales | 65.00% | 70.30% | 65.60% |
SEGMENT INFORMATION (Long-Lived
SEGMENT INFORMATION (Long-Lived Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 703,752 | $ 855,353 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 613,111 | 753,232 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 90,641 | $ 102,121 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International Long-Lived Assets, Percent of Total Long-Lived Assets | 82.70% | 87.90% |
FAIR VALUE MEASUREMENTS - Inves
FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Investments | $ 2.3 | $ 2 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 17.5 | $ 20.2 |
FAIR VALUE MEASUREMENTS - Borro
FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, BS | $ 989,530,000 | |
Secured revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured revolving credit facility | $ 0 | $ 0 |
Total Senior Notes Member | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 1,040,000,000 | |
Long-term debt, BS | $ 1,000,000,000 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued bonuses and incentive compensation | $ 47,363 | $ 8,873 |
Accrued employee benefits | 26,517 | 22,876 |
Unredeemed gift cards | 21,619 | 18,300 |
Income taxes payable | 13,850 | 21,164 |
Accrued taxes | 12,883 | 10,900 |
Accrued interest | 11,942 | 12,092 |
Accrued salaries and wages | 10,821 | 10,650 |
Accrued other | 31,454 | 30,385 |
Other Liabilities, Current, Total | $ 176,449 | $ 135,240 |
Uncategorized Items - cri-20220
Label | Element | Value | |
Retained Earnings [Member] | |||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | us-gaap_TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ 1,500,000 | [1] |
[1] | In the first quarter of fiscal 2019, the Company reclassified $1.5 million of tax benefits from “Accumulated other comprehensive loss” to “Retained earnings” for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |