Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Feb. 02, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HBI | ||
Entity Registrant Name | Hanesbrands Inc. | ||
Entity Central Index Key | 1,359,841 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 360,243,037 | ||
Entity Public Float | $ 8,382,636,149 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,645,175 | $ 1,799,270 | $ 1,646,610 | $ 1,380,355 | $ 1,575,309 | $ 1,761,019 | $ 1,472,731 | $ 1,219,140 | $ 6,471,410 | $ 6,028,199 | $ 5,731,549 |
Cost of sales | 3,980,859 | 3,752,151 | 3,595,217 | ||||||||
Gross profit | 626,661 | 678,457 | 645,902 | 539,531 | 612,135 | 649,366 | 557,291 | 457,256 | 2,490,551 | 2,276,048 | 2,136,332 |
Selling, general and administrative expenses | 1,739,631 | 1,500,399 | 1,541,214 | ||||||||
Change in fair value of contingent consideration liability | 27,852 | 0 | 0 | ||||||||
Operating profit | 723,068 | 775,649 | 595,118 | ||||||||
Other expenses | 11,363 | 51,758 | 3,210 | ||||||||
Interest expense, net | 174,435 | 152,692 | 118,035 | ||||||||
Income from continuing operations before income tax expense | 537,270 | 571,199 | 473,873 | ||||||||
Income tax expense | 473,279 | 34,272 | 45,018 | ||||||||
Income from continuing operations | (384,611) | 203,356 | 172,164 | 73,082 | 155,725 | 172,790 | 128,143 | 80,269 | 63,991 | 536,927 | 428,855 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 368 | (2,465) | 1,387 | 1,068 | 0 | 0 | (2,097) | 2,455 | 0 |
Income from continuing operations | $ (384,611) | $ 203,356 | $ 172,532 | $ 70,617 | $ 157,112 | $ 173,858 | $ 128,143 | $ 80,269 | $ 61,894 | $ 539,382 | $ 428,855 |
Earnings (loss) per share — basic: | |||||||||||
Continuing operations | $ (1.06) | $ 0.56 | $ 0.47 | $ 0.20 | $ 0.41 | $ 0.46 | $ 0.34 | $ 0.21 | $ 0.17 | $ 1.41 | $ 1.07 |
Discontinued operations | 0 | 0 | 0 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | 0.01 | 0 |
Net income | 0.17 | 1.41 | 1.07 | ||||||||
Earnings (loss) per share — diluted: | |||||||||||
Continuing operations | (1.06) | 0.55 | 0.47 | 0.19 | 0.41 | 0.45 | 0.34 | 0.21 | 0.17 | 1.40 | 1.06 |
Discontinued operations | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | (0.01) | 0.01 | 0 |
Net income | $ 0.17 | $ 1.40 | $ 1.06 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement Consolidated Statements Of Comprehensive Income [Abstract] | |||
Income from continuing operations | $ 61,894 | $ 539,382 | $ 428,855 |
Other comprehensive loss: | |||
Foreign currency translation | 34,554 | (20,384) | (23,576) |
Cash flow hedges, net of tax effect of $7,951, ($1,272) and ($866), respectively | (31,281) | 5,757 | 1,043 |
Defined benefit plans, net of tax effect of $930, $16,393 and ($883), respectively | (6,488) | (26,431) | 189 |
Other comprehensive loss | (3,215) | (41,058) | (22,344) |
Comprehensive income | $ 58,679 | $ 498,324 | $ 406,511 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Cash flow hedges, tax | $ 7,951 | $ (1,272) | $ (866) |
Defined benefit plans, tax | $ 930 | $ 16,393 | $ (883) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 421,566 | $ 460,245 |
Trade accounts receivable, net | 903,318 | 836,924 |
Inventories | 1,874,990 | 1,840,565 |
Other current assets | 186,496 | 137,535 |
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 45,897 |
Total current assets | 3,386,370 | 3,321,166 |
Property, net | 623,991 | 692,464 |
Trademarks and other identifiable intangibles, net | 1,402,857 | 1,285,458 |
Goodwill | 1,167,007 | 1,098,540 |
Deferred tax assets | 234,932 | 464,872 |
Other noncurrent assets | 79,618 | 67,980 |
Total assets | 6,894,775 | 6,930,480 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 867,649 | 761,647 |
Accrued liabilities and other: | ||
Payroll and employee benefits | 153,394 | 154,697 |
Advertising and promotion | 150,375 | 134,648 |
Other | 345,865 | 330,450 |
Notes payable | 11,873 | 56,396 |
Accounts Receivable Securitization Facility | 125,209 | 44,521 |
Current portion of long-term debt | 124,380 | 133,843 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 9,466 |
Total current liabilities | 1,778,745 | 1,625,668 |
Long-term debt | 3,702,054 | 3,507,685 |
Pension and postretirement benefits | 405,238 | 371,612 |
Other noncurrent liabilities | 185,310 | 201,601 |
Total liabilities | 6,208,573 | 5,706,566 |
Stockholders’ equity: | ||
Preferred stock (50,000,000 authorized shares; $.01 par value) Issued and outstanding — None | 0 | 0 |
Common stock (2,000,000,000 authorized shares; $.01 par value) Issued and outstanding —360,125,894 and 378,687,052, respectively | 3,601 | 3,787 |
Additional paid-in capital | 271,462 | 260,002 |
Retained earnings | 850,345 | 1,396,116 |
Accumulated other comprehensive loss | (439,206) | (435,991) |
Total stockholders’ equity | 686,202 | 1,223,914 |
Total liabilities and stockholders’ equity | $ 6,894,775 | $ 6,930,480 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 360,125,894 | 378,687,052 |
Common stock, shares outstanding | 360,125,894 | 378,687,052 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Jan. 03, 2015 | $ 1,386,772 | $ 4,008 | $ 290,926 | $ 1,464,427 | $ (372,589) |
Beginning Balance, Shares at Jan. 03, 2015 | 400,789,000 | ||||
Net income | 428,855 | 428,855 | |||
Dividends | (161,316) | (161,316) | |||
Translation adjustments | (23,576) | (23,576) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period and Reclassification Adjustment on Amortization Of Loss On Interest Rate Hedge, Net of Tax | 1,043 | 1,043 | |||
Net unrecognized gain (loss) from pension and postretirement plans | 189 | 189 | |||
Stock-based compensation | 29,154 | 29,154 | |||
Net exercise of stock options, vesting of restricted stock units and other | (33,735) | $ 30 | (33,765) | ||
Net exercise of stock options, vesting of restricted stock units and other, shares | 3,012,000 | ||||
Stock repurchases, shares | (12,148,000) | ||||
Stock Repurchases, value | (351,495) | $ (121) | (8,746) | (342,628) | 0 |
Ending Balance at Jan. 02, 2016 | 1,275,891 | $ 3,917 | 277,569 | 1,389,338 | (394,933) |
Ending Balance, Shares at Jan. 02, 2016 | 391,653,000 | ||||
Net income | 539,382 | 539,382 | |||
Dividends | (169,294) | (169,294) | |||
Translation adjustments | (20,384) | (20,384) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period and Reclassification Adjustment on Amortization Of Loss On Interest Rate Hedge, Net of Tax | 5,757 | 5,757 | |||
Net unrecognized gain (loss) from pension and postretirement plans | (26,431) | (26,431) | |||
Stock-based compensation | 36,668 | 30,617 | 6,051 | ||
Net exercise of stock options, vesting of restricted stock units and other | (37,774) | $ 12 | (37,786) | ||
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,277,000 | ||||
Stock repurchases, shares | (14,243,000) | ||||
Stock Repurchases, value | (379,901) | $ (142) | (10,398) | (369,361) | 0 |
Ending Balance at Dec. 31, 2016 | $ 1,223,914 | $ 3,787 | 260,002 | 1,396,116 | (435,991) |
Ending Balance, Shares at Dec. 31, 2016 | 378,687,052 | 378,687,000 | |||
Net income | $ 61,894 | 61,894 | |||
Dividends | (222,290) | (222,290) | |||
Translation adjustments | 34,554 | 34,554 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period and Reclassification Adjustment on Amortization Of Loss On Interest Rate Hedge, Net of Tax | (31,281) | (31,281) | |||
Net unrecognized gain (loss) from pension and postretirement plans | (6,488) | (6,488) | |||
Stock-based compensation | 23,224 | 23,224 | 0 | ||
Net exercise of stock options, vesting of restricted stock units and other | 2,692 | $ 10 | 2,154 | 528 | |
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,079,000 | ||||
Stock repurchases, shares | (19,640,000) | ||||
Stock Repurchases, value | (400,017) | $ (196) | (13,918) | (385,903) | 0 |
Ending Balance at Dec. 30, 2017 | $ 686,202 | $ 3,601 | $ 271,462 | $ 850,345 | $ (439,206) |
Ending Balance, Shares at Dec. 30, 2017 | 360,125,894 | 360,126,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Operating activities: | |||
Net income | $ 61,894 | $ 539,382 | $ 428,855 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation | 87,595 | 81,057 | 80,166 |
Amortization of intangibles | 34,892 | 22,118 | 23,737 |
Charges incurred for amendments of credit facilities | 0 | 34,624 | 0 |
Write-off on early extinguishment of debt | (4,028) | (12,667) | 0 |
Amortization of debt issuance costs | 10,394 | 9,034 | 7,077 |
Stock compensation expense | 23,582 | 31,780 | 29,618 |
Deferred taxes | 239,068 | (8,836) | 10,850 |
Change in fair value of contingent consideration liability | 27,852 | 0 | 0 |
Other | 1,468 | (12,587) | (8,696) |
Changes in assets and liabilities, net of acquisition and disposition of businesses: | |||
Accounts receivable | (31,656) | (83,279) | (21,974) |
Inventories | 22,648 | 135,807 | (289,654) |
Other assets | (28,346) | (24,563) | 35,044 |
Accounts payable | 71,806 | (60,994) | 74,613 |
Accrued pension and postretirement benefits | 19,042 | (31,504) | (102,202) |
Increase (Decrease) in Accrued Taxes Payable | 179,117 | 7,396 | (4,395) |
Accrued liabilities and other | (67,666) | (46,495) | (36,032) |
Net cash from operating activities | 655,718 | 605,607 | 227,007 |
Investing activities: | |||
Purchases of property, plant and equipment | (87,008) | (83,399) | (99,375) |
Proceeds from sales of assets | 4,459 | 80,833 | 15,404 |
Acquisition of businesses, net of cash acquired | (62,249) | (964,075) | (192,829) |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 40,285 | 0 | 0 |
Net cash from investing activities | (104,513) | (966,641) | (276,800) |
Financing activities: | |||
Borrowings on notes payable | 278,489 | 904,476 | 1,167,681 |
Repayments on notes payable | (327,615) | (992,760) | (1,184,458) |
Borrowings on Accounts Receivable Securitization Facility | 373,640 | 238,065 | 231,891 |
Repayments on Accounts Receivable Securitization Facility | (292,952) | (388,707) | (247,691) |
Borrowings on Revolving Loan Facility | 4,161,799 | 3,798,942 | 5,272,000 |
Repayments on Revolving Loan Facility | (4,153,000) | (3,795,500) | (5,385,000) |
Proceeds from Issuance of Senior Long-term Debt | 0 | 2,359,347 | 0 |
Borrowings on Term Loan Facilities | 1,250,000 | 301,272 | 1,150,000 |
Repayments on Term Loan Facilities | (1,145,215) | (268,264) | (311,955) |
Borrowings on International Debt | 0 | 9,145 | 10,676 |
Repayments on International Debt | (45,072) | (12,734) | (15,971) |
Share repurchases | (400,017) | (379,901) | (351,495) |
Repayments on Senior Notes | 0 | (1,000,000) | 0 |
Cash dividends paid | (219,903) | (167,375) | (161,316) |
Payments to amend and refinance credit facilities | (9,122) | (80,069) | (12,793) |
Payment for Contingent Consideration Liability, Financing Activities | (41,250) | 0 | 0 |
Taxes paid related to net shares settlement of equity awards | (15,463) | (17,414) | (76,569) |
Excess tax benefit from stock-based compensation | 0 | 0 | 45,286 |
Other | (87) | 2,531 | 2,696 |
Net cash from financing activities | (585,768) | 511,054 | 132,982 |
Effect of changes in foreign exchange rates on cash | (4,116) | (8,944) | (3,875) |
Change in cash and cash equivalents | (38,679) | 141,076 | 79,314 |
Cash and cash equivalents at beginning of year | 460,245 | 319,169 | 239,855 |
Cash and cash equivalents at end of year | $ 421,566 | $ 460,245 | $ 319,169 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Basis of Presentation | Hanesbrands Inc., a Maryland corporation (the “Company”), is a consumer goods company with a portfolio of leading apparel brands, including Hanes, Champion, Bonds , Maidenform, DIM, Bali, Playtex, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei, Gear for Sports and Alternative . The Company designs, manufactures, sources and sells a broad range of basic apparel such as T-shirts, bras, panties, men’s underwear, children’s underwear, activewear, socks and hosiery. During the third quarter of 2016, the Company separately reported the results of its Dunlop Flooring and Tontine Pillow businesses as discontinued operations in its Consolidated Statements of Income, and to present the related assets and liabilities as held for sale in the Consolidated Balance Sheet. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. See note “Discontinued Operations” for additional information on discontinued operations. As a result of further policy harmonization related to acquired businesses, certain prior year amounts in the consolidated financial statements, none of which are material, have been reclassified to conform with the current year presentation. The reclassification on the Consolidated Balance Sheet is between the “Trade accounts receivable, net” line and the “Accrued liabilities — Advertising and promotion” line of $22,746 as of December 31, 2016. The reclassification on the Consolidated Statement of Cash Flow is between the “Accounts Receivable” and the “Accrued liabilities and other” line of $4,068 as of December 31, 2016. This reclassification had no impact on the Company’s results of operations. The Company’s fiscal year ends on the Saturday closest to December 31. All references to “ 2017 ”, “ 2016 ” and “ 2015 ” relate to the 52 week fiscal years ended on December 30, 2017 , December 31, 2016 and January 2, 2016 , respectively. Three subsidiaries of the Company close on the calendar month-end, which is less than a week different than the Company’s consolidated year end. The difference in reporting of financial information for these subsidiaries did not have a material impact on the Company’s financial condition, results of operations or cash flows. A significant subsidiary of the Company, Hanes Holdings Lux S.à.r.l. (formerly named DBA Lux Holding S.A.) (“Hanes Europe Innerwear”), had a 53 week fiscal year ended January 2, 2016 as a result of aligning Hanes Europe Innerwear’s year end with the Company in the year after acquisition. The 53rd week of financial information for Hanes Europe Innerwear did not have a material impact on the Company’s financial condition, results of operations or cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from these estimates. (c) Foreign Currency Translation Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. (d) Sales Recognition and Incentives The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured, which occurs primarily upon shipment. The Company records a sales reduction for returns and allowances based upon historical return experience. The Company earns royalty revenues through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensee. The Company offers a variety of sales incentives to resellers and consumers of its products, and the policies regarding the recognition and display of these incentives within the Consolidated Statements of Income are as follows: Discounts, Coupons, and Rebates The Company recognizes the cost of these incentives at the later of the date at which the related sale is recognized or the date at which the incentive is offered. The cost of these incentives is estimated using a number of factors, including historical utilization and redemption rates. All cash incentives of this type are included in the determination of net sales. The Company includes incentives offered in the form of free products in the determination of cost of sales. Volume-Based Incentives These incentives typically involve rebates or refunds of cash that are redeemable only if the reseller completes a specified number of sales transactions. Under these incentive programs, the Company estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. The Company includes these amounts in the determination of net sales. Cooperative Advertising Under these arrangements, the Company agrees to reimburse the reseller for a portion of the costs incurred by the reseller to advertise and promote certain of the Company’s products. The Company recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity first takes place. The Company includes these amounts in the determination of net sales. Fixtures and Racks Store fixtures and racks are periodically used by resellers to display Company products. The Company expenses the cost of these fixtures and racks in the period in which they are delivered to the resellers. The Company includes the costs of fixtures and racks incurred by resellers and charged back to the Company in the determination of net sales. Fixtures and racks purchased by the Company and provided to resellers are included in selling, general and administrative expenses. (e) Advertising Expense Advertising costs, which include the development and production of advertising materials and the communication of these materials through various forms of media, are expensed in the period the advertising first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” caption in the Consolidated Statements of Income of $157,369 , $168,701 and $181,956 in 2017 , 2016 and 2015 , respectively. (f) Shipping and Handling Costs Revenue received for shipping and handling costs is included in net sales and was $19,738 , $19,446 and $19,710 in 2017 , 2016 and 2015 , respectively. Shipping costs, which comprise payments to third party shippers, and handling costs, which consist of warehousing costs in the Company’s various distribution facilities, were $376,449 , $324,845 and $332,678 in 2017 , 2016 and 2015 , respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. (g) Catalog Expenses The Company incurs expenses for printing catalogs for products to aid in the Company’s sales efforts. The Company initially records these expenses as a prepaid item and charges it against selling, general and administrative expenses over time as the catalog is used. Expenses are recognized at a rate that approximates historical experience with regard to the timing and amount of sales attributable to a catalog distribution. The Company discontinued its catalog business during 2016. (h) Research and Development Research and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Research and development includes expenditures for new product, technological improvements for existing products and process innovation, which primarily consist of salaries, consulting and supplies attributable to time spent on research and development activities. Additional costs include depreciation and maintenance for research and development equipment and facilities. Research and development expense was $65,457 , $70,096 and $62,324 in 2017 , 2016 and 2015 , respectively. (i) Defined Contribution Benefit Plans The Company sponsors 401(k) plans as well as other defined contribution benefit plans. Expense for these plans was $21,251 , $26,434 and $21,972 in 2017 , 2016 and 2015 , respectively. (j) Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the time of purchase are considered to be cash equivalents. (k) Accounts Receivable Valuation Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable portfolio determined on the basis of historical experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. (l) Inventory Valuation Inventories are stated at the estimated lower of cost or market. Cost is determined by the first-in, first-out, or “FIFO,” method for inventories. Obsolete, damaged, and excess inventory is carried at the net realizable value, which is determined by 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. (m) Property Property is stated at historical cost and depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Machinery and equipment is depreciated over periods ranging from three to 15 years and buildings and building improvements over periods of up to 40 years. A change in the depreciable life is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods. Additions and improvements that substantially extend the useful life of a particular asset and interest costs incurred during the construction period of major properties are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or disposition of an asset, the cost and related accumulated depreciation are removed from the accounts. Property is tested for recoverability whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Such events include significant adverse changes in the business climate, several periods of operating or cash flow losses, forecasted continuing losses or a current expectation that an asset or an asset group will be disposed of before the end of its useful life. Recoverability of property is evaluated by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the estimated fair value. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized impairment loss is not permitted under U.S. GAAP. (n) Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, licensing agreements, customer and distributor relationships and computer software. Identifiable intangible assets with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of a finite-lived intangible asset is based upon a number of factors, including the effects of demand, competition, expected changes in distribution channels and the level of maintenance expenditures required to obtain future cash flows. Trademarks with finite lives are being amortized over periods ranging from ten to 12 years , license agreements are being amortized over periods ranging from three to 17 years , customer and distributor relationships are being amortized over periods ranging from two to 15 years and computer software and other intangibles are being amortized over periods ranging from one to seven years . Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used in evaluating elements of property. Identifiable intangible assets not subject to amortization are assessed for impairment at least annually, as of the first day of the third fiscal quarter, and as triggering events occur. The impairment test for identifiable intangible assets not subject to amortization consists of comparing the fair value of the intangible asset to its carrying amount. If the carrying value exceeds the fair value of the asset, an impairment loss is recognized in an amount equal to such excess. In assessing fair value, management relies on a number of factors to discount anticipated future cash flows including operating results, business plans and present value techniques. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of intangible asset impairment. The Company capitalizes internal software development costs incurred during the application development stage, which include the actual costs to purchase software from vendors and generally include personnel and related costs for employees who were directly associated with the enhancement and implementation of purchased computer software. Additions to computer software are included in purchases of property, plant and equipment in the Consolidated Statements of Cash Flows. (o) Goodwill Goodwill is the amount by which the purchase price exceeds the fair value of the assets acquired and liabilities assumed in a business combination. When a business combination is completed, the assets acquired and liabilities assumed are assigned to the reporting unit or units of the Company given responsibility for managing, controlling and generating returns on these assets and liabilities. In many instances, all of the acquired assets and assumed liabilities are assigned to a single reporting unit and in these cases all of the goodwill is assigned to the same reporting unit. In those situations in which the acquired assets and liabilities are allocated to more than one reporting unit, the goodwill to be assigned to each reporting unit is determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events occur. The Company’s annual measurement date is the first day of the third fiscal quarter. In evaluating the recoverability of goodwill, the Company estimates the fair value of its reporting units and compares it to the carrying value. If the carrying value of the reporting unit exceeds its fair value, the next step of the process involves comparing the implied fair value to the carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to such excess. No impairment of goodwill was identified as a result of the testing conducted in 2017 . In estimating the fair values of the reporting units, management relies on a number of factors to discount anticipated future cash flows including operating results, business plans and present value techniques. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. (p) Insurance Reserves The Company is self-insured for property, workers’ compensation, medical and other casualty programs up to certain stop-loss limits. Undiscounted liabilities for self-insured exposures are accrued at the present value of the expected aggregate losses below those limits and are based on a number of assumptions, including historical trends, actuarial assumptions and economic conditions. (q) Stock-Based Compensation The Company established the Hanesbrands Inc. Omnibus Incentive Plan (As Amended and Restated), (the “Omnibus Incentive Plan”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retention of employees. The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards. (r) Income Taxes Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. Given continuing losses in certain jurisdictions in which the Company operates on a separate return basis, a valuation allowance has been established for the deferred tax assets in these specific locations. The Company periodically estimates the probable tax obligations using historical experience in tax jurisdictions and informed judgment. There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. Income tax expense is adjusted in the period in which these events occur, and these adjustments are included in the Company’s Consolidated Statements of Income. If such changes take place, there is a risk that the Company’s effective tax rate may increase or decrease in any period. A company must 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. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The recently enacted Tax Cuts and Jobs Act (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system that includes a one-time transition tax on deemed repatriated earnings foreign subsidiaries. The Company has estimated the impact of the newly enacted law incorporating assumptions made based upon its current interpretation of the Tax Act. In addition, the Tax Act implemented a new minimum tax on global intangible low-taxed income (“GILTI”). A company can elect an accounting policy to account for GILTI in either of the following ways: • As a period charge in the future period the tax arises; or • As part of deferred taxes related to the investment or subsidiary. The Company is currently in the process of analyzing this provision and, as a result, is not yet able to reasonably estimate its effect. Therefore, the Company has not made any adjustments related to potential GILTI tax in its consolidated financial statements and has not made a policy decision regarding whether to record deferred tax on GILTI. Due to the complexities involved in accounting for the enactment of the Tax Act, SEC Staff Accounting Bulletin 118 (“SAB 118”) allows companies to record provisional estimates of the impacts of the Tax Act during a measurement period which is similar to the measurement period of up to one year from the enactment which is similar to the measurement period used when accounting for business combinations. The Company will continue to assess the impact of the recently enacted tax law on its consolidated financial statements. (s) Financial Instruments The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. The use of these financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. Depending on the nature of the underlying risk being hedged, these financial instruments are either designated as cash flow hedges or are economic hedges against changes in the value of the hedged item and therefore not designated as hedges for accounting purposes. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. On the date the derivative is entered into, the Company determines whether the derivative meets the criteria for cash flow hedge accounting treatment or whether the financial instrument is serving as an economic hedge against changes in the value of the hedged item and therefore is not designated as a hedge for accounting purposes. The accounting for changes in fair value of the derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company formally documents its hedge relationships, including identifying the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments or forecasted transactions. The Company also formally assesses, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value and classified as current or noncurrent based on the derivatives’ maturity dates. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. Cash flows hedges are classified in the same category as the item being hedged, and cash flows from derivative contracts not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties to the Company’s derivative contracts. Risk of nonperformance by counterparties is mitigated by dealing with highly rated counterparties and by diversifying across counterparties. Cash Flow Hedges The effective portion of the change in the fair value of a derivative that is designated as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line of the Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in AOCI is reported on the same line in the Consolidated Statements of Income as the hedged item. In addition, both the fair value of changes excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Derivative Contracts Not Designated as Hedges For derivative contracts not designated as hedges, changes in fair value are reported in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. These contracts are recorded at fair value when the hedged item is recorded as an asset or liability and then are revalued each accounting period. (t) Assets and Liabilities Acquired in Business Combinations Business combinations are accounted for using the purchase method, which requires the Company to allocate the cost of an acquired business to the acquired assets and assumed liabilities based on their estimated fair values at the acquisition date. The Company recognizes the excess of an acquired business’ cost over the fair value of acquired assets and assumed liabilities as goodwill. Fair values are determined using the income approach based on market participant assumptions focusing on future cash flow projections and accepted industry standards. (u) Recently Issued Accounting Pronouncements Fair Value Measurement In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820)”, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient, and requires separate disclosure of those investments instead. These disclosures were effective for the Company in the first quarter of 2016. The adoption of the new accounting rules did not have an impact on the Company’s financial condition, results of operations or cash flows, however management did adopt the related applicable disclosures. Refer to Note, “Fair Value of Assets and Liabilities”. Inventory In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory”, which require inventory to be recorded at the lower of cost or net realizable value. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows. Hedge Accounting In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, which clarifies that a change in the counterparty to a derivative contract, in and of itself, does not require the dedesignation of a hedging relationship. The new standard, which could be adopted prospectively or on a modified retrospective basis, was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows. Also in March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”, which clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The new standard, which is applied on a modified prospective basis, was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The new standard will be effective for the Company in the first quarter of 2018 and can be applied using a modified retrospective or full retrospective method. The Company has established an implementation team consisting of finance, accounting and front-end business partners to analyze the impact of the guidance across all of its revenue sources. The Company has evaluated the new standard against its existing accounting policies and practices, including reviewing standard purchase orders, invoices, shipping terms, conducting questionnaires with its global team and reviewing contracts with customers. The Company has not identified any information that would indicate that the new guidance will have a material impact on the Company’s consolidated financial statements. The Company expects to have enhanced disclosures related to disaggregation of revenue sources and accounting policies. The Company expects to adopt the new standard in the first quarter of 2018 using the modified retrospective transition method. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. Issues addressed in the new guidance that are relevant to the Company include debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and beneficial interests in securitization transactions. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s cash flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The update eliminates the exception for an intra-entity transfer of an asset other than inventory, which aligns the recognition of income tax consequences for inter-entity transfers of assets other than inventory by requiring the recognition of current and deferred income taxes resulting from an intra-entity transfer of such an asset when the transfer occurs rather than when it is sold to an external party. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. The new rules require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Stock Compensation In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The new rules provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new rules, an entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award immediately before the original award is modified. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Lease Accounting In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The new rules expand the hedging strategies that qualify for hedge accounting, including contractually-specified price components of a commodity purchase or sale, hedges of the benchmark rate component of the contractual coupon cash flows of fixed-rate assets and liabilities, hedges of the portion of a closed portfolio of prepayable assets and partial-term hedges of fixed-rate assets and liabilities. The new rules also allow additional time to complete hedge effectiveness testing and allow qualitative assessments subsequent to initial quantitative tests if there is a supportable expectation that the hedge will remain highly effective. The new rules will be effective for the Company in the first quarter of 2019, with early adoption permitted. The Company does not expect the adoption of the new accounting rules to have a materia |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Hanes Australasia On July 14, 2016, the Company acquired 100% of the outstanding shares of Pacific Brands Limited (“Hanes Australasia”) for a total purchase price of AUD$ 1,049,360 ( $800,871 ). US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand, a portion of the net proceeds from the 3.5% Senior Notes issued in June 2016 and borrowings under the Australian Term A-1 Loan Facility and the Australian Term A-2 Loan Facility. The results of Hanes Australasia have been included in the Company’s consolidated financial statements since the date of acquisition and are reported as part of the International segment. Hanes Australasia is a leading underwear and intimate apparel company in Australia with a portfolio of strong brands including Bonds , Australia’s top brand of underwear, babywear and socks, and Berlei , a leading sports bra brand and leading seller of premium bras in department stores. The Company believes the acquisition creates growth opportunities by adding to the Company’s portfolio of leading innerwear brands supported by the Company’s global low-cost supply chain and manufacturing network. Factors that contribute to the amount of goodwill recognized for the acquisition include the value of the existing work force and expected cost savings by utilizing the Company’s low-cost supply chain and expected synergies with existing Company functions. Goodwill associated with the acquisition is not tax deductible. The acquired assets and assumed liabilities at the date of acquisition (July 14, 2016) include the following: Cash and cash equivalents $ 54,294 Accounts receivable, net 36,019 Inventories 104,806 Other current assets 16,588 Current assets of discontinued operations 50,839 Property, net 34,835 Trademarks and other identifiable intangibles 506,170 Deferred tax assets and other noncurrent assets 23,687 Total assets acquired 827,238 Accounts payable 89,309 Accrued liabilities and other 24,912 Current liabilities of discontinued operations 14,564 Long-term debt 41,976 Deferred tax liabilities and other noncurrent liabilities 16,320 Total liabilities assumed 187,081 Net assets acquired 640,157 Goodwill 160,714 Purchase price $ 800,871 Since July 14, 2016, goodwill decreased by $25,434 as a result of measurement period adjustments, primarily related to the valuation adjustments for the Dunlop Flooring and Tontine Pillow businesses and completion of deferred tax balances. The purchase price allocation was finalized in the third quarter of 2017. Champion Europe On June 30, 2016, the Company acquired 100% of Champion Europe S.p.A. (“Champion Europe”), which owns the trademark for the Champion brand in Europe, the Middle East and Africa, from certain individual shareholders in an all-cash transaction valued at €220,751 ( $245,554 ) enterprise value less working capital adjustments as defined in the purchase agreement, which included €40,700 ( $45,277 ) in estimated contingent consideration. US dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition through a combination of cash on hand and borrowings under the 3.5% Senior Notes issued in June 2016. The results of Champion Europe have been included in the Company’s consolidated financial statements since the date of acquisition and are reported as part of the International segment. The Company believes combining the Champion business creates a unified platform to benefit from the global consumer growth trend for active apparel. Factors that contribute to the amount of goodwill recognized for the acquisition include the value of the existing work force and expected cost savings by utilizing the Company’s low-cost supply chain and expected synergies with existing Company functions. Goodwill associated with the acquisition is not tax deductible. The final contingent consideration liability is included in the “Accrued liabilities — Other” line in the accompanying Consolidated Balance Sheet and is based on 10 times Champion Europe’s earnings before interest, income taxes, depreciation and amortization (“EBITDA”) in excess of €18,600 , calculated as defined by the purchase agreement, for the calendar year 2016. On April 28, 2017 , an initial payment of €37,820 ( $41,250 ) was made to the sellers towards the contingent consideration liability, which represented the mutually agreed portion of the contingent consideration at said date. Upon final settlement negotiations in January 2018, management has accrued €26,430 at December 30, 2017 to reflect the fair value of the final contingent consideration payment to be made in 2018. The final contingent consideration settlement is within the previously disclosed range. The acquired assets, contingent consideration and assumed liabilities at the date of acquisition (June 30, 2016) include the following: Cash and cash equivalents $ 14,581 Trade accounts receivable, net 27,926 Inventories 53,816 Other current assets 5,976 Property, net 24,605 Trademarks and other identifiable intangibles 135,277 Deferred tax assets and other noncurrent assets 3,777 Total assets acquired 265,958 Accounts payable 66,594 Accrued liabilities and other (including contingent consideration) 60,887 Notes payable 27,748 Deferred tax liabilities and other noncurrent liabilities 20,282 Total liabilities assumed and contingent consideration 175,511 Net assets acquired 90,447 Goodwill 109,830 Initial consideration paid 200,277 Estimated contingent consideration 45,277 Total purchase price $ 245,554 Since June 30, 2016, goodwill increased by $1,665 as a result of measurement period adjustments primarily to working capital. The purchase price allocation was finalized in the second quarter of 2017. Consolidated Pro Forma Results Consolidated unaudited pro forma results of operations for the Company are presented below assuming that the 2016 acquisition of Hanes Australasia and Champion Europe had occurred on January 4, 2015. Pro forma operating results for the year ended January 2, 2016 include expenses totaling $9,560 , for acquisition-related adjustments primarily related to inventory and stock compensation. Years Ended December 31, January 2, Net sales $ 6,434,928 $ 6,480,153 Net income from continuing operations 617,261 437,849 Earnings per share from continuing operations: Basic $ 1.62 $ 1.09 Diluted 1.61 1.08 Pro forma financial information is not necessarily indicative of the Company’s actual results of operations if the acquisitions had been completed at the dates indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. Knights Apparel In April 2015, the Company completed the acquisition of Knights Holdco, Inc. (“Knights Apparel”), a leading seller of licensed collegiate logo apparel primarily in the mass retail channel, from Merit Capital Partners in an all cash transaction valued at approximately $192,888 on an enterprise value basis. The Company funded the acquisition with cash on hand and short-term borrowings under its Revolving Loan Facility. Since January 2, 2016, goodwill decreased by $3,551 as a result of measurement period adjustments to the acquired income tax balances. The purchase price allocation was finalized in the first quarter of 2016. Unaudited pro forma results of operations for the Company are presented below for year-to-date assuming that the 2015 acquisition of Knights Apparel had occurred on December 29, 2013. Year Ended January 2, Net sales $ 5,753,706 Net income from continuing operations 433,636 Earnings per share from continuing operations: Basic $ 1.08 Diluted 1.07 Pro forma financial information is not necessarily indicative of the Company’s actual results of operations if the acquisition has been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. Other Acquisitions On October 13, 2017, the Company acquired 100% of Alternative Apparel, Inc. (“Alternative Apparel”) from Rosewood Capital V, L.P. and certain individual shareholders in an all-cash transaction. Alternative Apparel sells the Alternative brand better basics T-shirts, fleece and other tops and bottoms. Alternative is a lifestyle brand known for its comfort, style and social responsibility. The Company believes this acquisition will create growth opportunities by supporting its Activewear growth strategy by expanding its market and channel penetration, including online, supported by the Company’s global low-cost supply chain and manufacturing network. Total consideration paid was $62,318 . The Company funded the acquisition with cash on hand and short term borrowing under the Revolving Loan Facility. In connection with the acquisition, the Company recorded net working capital of $18,517 , goodwill of $24,514 , intangible assets of $26,800 and other net liabilities of $7,513 . The results of Alternative Apparel have been included in the Company’s consolidated financial statements since the date of the acquisition and are reported as part of the Activewear segment. Due to the immaterial nature of this acquisition, the Company has not provided additional disclosures herein. In September 2016, the Company completed two immaterial acquisitions of It’s Greek to Me, Inc. and GTM Retail, Inc. (“GTM”) and Universo Sport S.p.A (“Universo”). The acquisitions extended the Company’s domestic presence in the custom decorated teamwear and fanwear apparel space into the high school channel and expanded the Company’s retail platform in Italy, respectively. Total consideration paid for both acquisitions totaled $24,415 . The Company funded the acquisitions with cash on hand and short term borrowings under the Revolving Loan Facility. In connection with these acquisitions, the Company recorded net working capital of $7,013 , goodwill of $8,753 and other net assets of $8,649 . The purchase price allocations were finalized in the third quarter of 2017. The results of GTM and Universo have been included in the Company’s consolidated financial statements since the date of the acquisition and are reported as part of the Activewear and International segments, respectively. Due to the immaterial nature of these acquisitions, the Company has not provided additional disclosures herein. Subsequent Event On February 2, 2018, the Company and its wholly owned subsidiary, HBI Australia Acquisition Co Pty Limited, entered into a Share Purchase Agreement with all of the shareholders of BNT Holdco Pty Limited (“Bras N Things”), to acquire 100% of the outstanding equity of Bras N Things for a purchase price of AUD $500,000 in an all cash transaction, less any net indebtedness of Bras N Things at closing, and subject to a post-closing adjustment to reflect deviation at closing from a normalized level of working capital. The Company will fund the acquisition with cash on hand. Bras N Things is a leading intimate apparel retailer and e-commerce business in Australia and New Zealand. Bras N Things sells proprietary bras, panties and lingerie sets through a retail network of approximately 170 stores and a fast-growing e-commerce platform. The Company believes this acquisition will create opportunities by appealing to millennial consumers featuring core products supplemented by seasonal product offerings. The consumer-direct sales model has significant potential for expansion into other geographic markets. The transaction is expected to close by the middle of February. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Discontinued Operations As part of the Company’s acquisition of Hanes Australasia in 2016, the Company acquired Hanes Australasia’s legacy Dunlop Flooring and Tontine Pillow businesses. The Company concluded that these businesses were not a strategic fit; therefore, the decision was made to divest of the businesses. In February 2017, the Company sold its Dunlop Flooring business for AUD $34,564 ( $26,219 ) in net cash proceeds at the time of sale, with an additional AUD $1,334 ( $1,012 ) of proceeds received in April 2017 related to a working capital adjustment, resulting in a pre-tax loss of AUD $2,715 ( $2,083 ). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Dunlop Flooring business was reported as part of discontinued operations since the date of acquisition. In March 2017, the Company sold its Tontine Pillow business for AUD $13,500 ( $10,363 ) in net cash proceeds at the time of sale. A working capital adjustment of AUD $966 ( $742 ) was paid to the buyer in April 2017, resulting in a net pre-tax gain of AUD $2,415 ( $1,856 ). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Tontine Pillow business was reported as part of discontinued operations since the date of acquisition. The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows: Years Ended December 30, December 31, Net sales $ 6,865 $ 34,698 Cost of sales 4,507 22,554 Gross profit 2,358 12,144 Selling, general and administrative expenses 3,729 8,632 Operating profit (loss) (1,371 ) 3,512 Other expenses 303 1,106 Net loss on disposal of business 242 — Income (loss) from discontinued operations before income tax expense (1,916 ) 2,406 Income tax expense (benefit) 181 (49 ) Net income (loss) from discontinued operations, net of tax $ (2,097 ) $ 2,455 All assets and liabilities of discontinued operations were sold in 2017. Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheet as of December 31, 2016 consisted of the following: Trade accounts receivable, net $ 10,139 Inventories 10,691 Property, net 3,630 Trademarks and other identifiable intangibles, net 14,929 Goodwill 10,479 Accounts payable and accrued liabilities (8,257 ) Net other assets and liabilities (5,180 ) Net assets of discontinued operations $ 36,431 For the years ended December 30, 2017 and December 31, 2016 , there were no material amounts of depreciation, amortization, capital expenditures, or significant operating or investing non-cash items related to discontinued operations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) was computed by dividing net income by the number of weighted average shares of common stock outstanding during the period. Diluted EPS was calculated to give effect to all potentially dilutive shares of common stock using the treasury stock method. In 2015, the Company implemented a four -for-one stock split on the Company’s common stock in the form of a 300% stock dividend. The reconciliation of basic to diluted weighted average shares outstanding is as follows: Years Ended December 30, December 31, January 2, Basic weighted average shares outstanding 367,680 381,782 399,891 Effect of potentially dilutive securities: Stock options 1,435 1,983 2,719 Restricted stock units 307 756 1,009 Employee stock purchase plan and other 4 45 40 Diluted weighted average shares outstanding 369,426 384,566 403,659 Restricted stock units totaling 488 , 303 and 348 units were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive for 2017 , 2016 , and 2015 , respectively. In 2017 , 2016 and 2015 , there were no anti-dilutive options to purchase shares of common stock. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company established the Omnibus Incentive Plan to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retention of employees. Stock Options The exercise price of each stock option equals the closing market price of the Company’s stock on the date of grant. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during any of the periods presented. A summary of the changes in stock options outstanding to the Company’s employees under the Omnibus Incentive Plan is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at January 3, 2015 7,292 $ 5.92 $ 158,469 3.40 Exercised (4,540 ) 6.10 Options outstanding at January 2, 2016 2,752 $ 5.62 $ 65,531 2.88 Exercised (477 ) 5.90 Options outstanding at December 31, 2016 2,275 $ 5.56 $ 36,438 2.20 Exercised (736 ) 6.22 Options outstanding and exercisable at December 30, 2017 1,539 $ 5.24 $ 24,108 1.76 The total intrinsic value of options that were exercised during 2017 , 2016 and 2015 was $10,821 , $7,465 and $105,899 respectively. Stock Unit Awards Restricted stock units (RSUs) of the Company’s stock are granted to certain Company non-employee directors and employees to incent performance and retention over periods of one to four years, respectively. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. Some RSUs which have been granted under the Omnibus Incentive Plan vest upon continued future service to the Company, while others also have a performanced-based vesting feature. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. A summary of the changes in the restricted stock unit awards outstanding under the Omnibus Incentive Plan is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at January 3, 2015 3,418 $ 16.12 $ 94,521 1.71 Granted — non-performanced based 516 31.06 Granted — performanced based 828 23.50 Vested (1,816 ) 11.45 Forfeited (113 ) 16.87 Nonvested share units outstanding at January 2, 2016 2,833 $ 23.99 $ 83,381 1.78 Granted — non-performanced based 748 23.44 Granted — performanced based 511 23.64 Vested (1,525 ) 19.47 Forfeited (47 ) 23.38 Nonvested share units outstanding at December 31, 2016 2,520 $ 26.46 $ 54,356 2.11 Granted — non-performanced based 628 21.22 Granted — performanced based 590 23.04 Vested (991 ) 26.74 Forfeited (81 ) 26.81 Nonvested share units outstanding at December 30, 2017 2,666 $ 24.36 $ 55,741 2.00 The total fair value of shares vested during 2017 , 2016 and 2015 was $26,510 , $29,705 and $20,784 , respectively. Certain participants elected to defer receipt of shares earned upon vesting. In addition to granting RSUs that vest solely upon continued future service to the Company, the Company also grants performanced-based restricted stock units where the number of shares of the Company’s common stock that will be received upon vesting range from 0% to 200% of the number of units granted based on the Company’s achievement of certain performance metrics. These performanced-based stock awards, which are included in the table above, represent awards that are earned based on future performance and service. As reported in the above table, the number of performanced-based restricted stock units granted each year represents the initial units granted on the date of grant plus any additional units that were earned based on the final achievement of the respective performance thresholds. For all share-based payments under the Omnibus Incentive Plan, during 2017 , 2016 and 2015 , the Company recognized total compensation expense of $23,224 , $30,617 and $29,154 and recognized a deferred tax benefit of $6,085 , $11,754 and $11,382 , respectively. At December 30, 2017 , there was $10,037 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $6,837 , $2,456 , and $744 is expected to be recognized in 2018 , 2019 , and 2020 , respectively. The Company satisfies the requirement for common shares for share-based payments to employees pursuant to the Omnibus Incentive Plan by issuing newly authorized shares. The Omnibus Incentive Plan authorized 63,220 shares for awards of stock options and restricted stock units, of which 9,533 were available for future grants as of December 30, 2017 . |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Allowances for Trade Accounts Receivable The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions are as follows: Allowance Allowance (1) Total Balance at January 3, 2015 $ 8,117 $ 8,739 $ 16,856 Charged to expenses 4,656 8,675 13,331 Deductions and write-offs (7,844 ) (7,840 ) (15,684 ) Currency translation (1,180 ) (223 ) (1,403 ) Balance at January 2, 2016 $ 3,749 $ 9,351 $ 13,100 Charged to expenses 3,650 19,820 23,470 Deductions and write-offs (381 ) (16,259 ) (16,640 ) Currency translation (360 ) (844 ) (1,204 ) Balance at December 31, 2016 $ 6,658 $ 12,068 $ 18,726 Charged to expenses 6,642 16,169 22,811 Deductions and write-offs (632 ) (18,264 ) (18,896 ) Currency translation 904 2,551 3,455 Balance at December 30, 2017 $ 13,572 $ 12,524 $ 26,096 (1) The balances presented herein reflect the prior year reclassification from the “Accounts Receivable” line as disclosed in Note, “Basis of Presentation.” Charges to the allowance for doubtful accounts are reflected in the “Selling, general and administrative expenses” line and charges to the allowance for customer chargebacks and other customer deductions are primarily reflected as a reduction in the “Net sales” line of the Consolidated Statements of Income. Deductions and write-offs, which do not increase or decrease income, represent write-offs of previously reserved accounts receivable and allowed customer chargebacks and deductions against gross accounts receivable. Sales of Accounts Receivable The Company has entered into agreements to sell selected trade accounts receivable to financial institutions. After the sale, the Company does not retain any interests in the receivables and the applicable financial institution services and collects these accounts receivable directly from the customer. Net proceeds of these accounts receivable sale programs are recognized in the Consolidated Statements of Cash Flows as part of operating cash flows. The Company recognized funding fees of $6,059 , $4,497 and $2,452 in 2017 , 2016 and 2015 , respectively, for sales of accounts receivable to financial institutions in the “Other expenses” line in the Consolidated Statements of Income. |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 30, December 31, Raw materials $ 129,287 $ 131,228 Work in process 226,659 185,066 Finished goods 1,519,044 1,524,271 $ 1,874,990 $ 1,840,565 |
Property, Net
Property, Net | 12 Months Ended |
Dec. 30, 2017 | |
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Property, Net | Property, Net Property is summarized as follows: December 30, December 31, Land $ 45,882 $ 43,731 Buildings and improvements 486,893 566,819 Machinery and equipment 1,063,661 977,312 Construction in progress 33,922 49,887 Capital leases 7,133 4,761 1,637,491 1,642,510 Less accumulated depreciation 1,013,500 950,046 Property, net $ 623,991 $ 692,464 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 30, 2017 | |
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Notes Payable | Notes Payable The Company had short-term revolving facilities in the following locations at December 30, 2017 and December 31, 2016 : Interest Principal Amount December 30, December 31, Europe Various $ 10,072 $ 54,772 Philippines 5.99% 1,801 1,265 Australia — — 359 $ 11,873 $ 56,396 As of December 30, 2017 and December 31, 2016 , the Company had total borrowing availability of $133,708 and $80,210 , respectively, under its international notes payable facilities. Total interest paid on notes payable was $364 , $1,103 and $716 in 2017 , 2016 and 2015 , respectively. The Company was in compliance with the financial covenants contained in each of the facilities at December 30, 2017 . |
Debt
Debt | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company had the following debt at December 30, 2017 and December 31, 2016 : Interest Principal Amount December 30, December 31, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 2.99% 750,000 655,469 December 2022 Term Loan B 3.23% 500,000 318,625 December 2024 Australian Term A-1 3.23% 135,826 143,544 July 2019 Australian Term A-2 — — 143,544 July 2021 4.875% Senior Notes 4.88% 900,000 900,000 May 2026 4.625% Senior Notes 4.63% 900,000 900,000 May 2024 3.5% Senior Notes 3.50% 599,649 520,617 June 2024 European Revolving Loan Facility 1.50% 81,539 62,474 September 2018 Accounts Receivable Securitization Facility 2.31% 125,209 44,521 March 2018 Other International Debt Various 1,044 43,789 Various 3,993,267 3,732,583 Less long-term debt issuance cost 41,624 46,534 Less current maturities 249,589 178,364 $ 3,702,054 $ 3,507,685 The Company’s primary financing arrangements are the senior secured credit facility (the “Senior Secured Credit Facility”), 4.875% senior notes (the “ 4.875% Senior Notes”), 4.625% senior notes (the “ 4.625% Senior Notes”), 3.5% senior notes (the “ 3.5% Senior Notes”), the Accounts Receivable Securitization Facility and the European Revolving Loan Facility. The outstanding balances at December 30, 2017 are reported in the “Current portion of long-term debt”, “Long-term debt” and “Accounts Receivable Securitization Facility” lines of the Consolidated Balance Sheets. Total cash paid for interest related to debt in 2017 , 2016 and 2015 was $164,716 , $130,603 and $106,231 , respectively. Senior Secured Credit Facility On December 15, 2017, the Company refinanced its Senior Secured Credit Facility to extend the maturity date of the revolving loan facility (the “Revolving Loan Facility”) to December 2022 and re-price at favorable rates, extend the maturity date of the Term Loan A to December 2022 and re-price at favorable rates, extend the maturity date of the Term Loan B to December 2024 and re-price at favorable rates, and add an additional $325,750 in term loan borrowings ( $144,375 for Term Loan A and $181,375 for Term Loan B). The Company incurred $11,935 in fees related to this refinancing. The proceeds of the Term Loan A and the Term Loan B were used to pay down existing borrowings under the Senior Secured Credit Facility and pay fees and expenses in connection with the closing of the Senior Secured Credit Facility. Proceeds of the Revolving Loan Facility are used for general corporate purposes and working capital needs. All borrowings under the Revolving Loan Facility must be repaid in full upon maturity. Outstanding borrowings under the Term Loan A are repayable in 1.25% quarterly installments, with the remainder of the outstanding principal to be repaid at maturity. Outstanding borrowings under the Term Loan B are repayable in 0.25% quarterly installments, with the remainder of the outstanding principal to be repaid at maturity. If the Term Loan B is repriced or refinanced on or prior to the six month anniversary of its funding and as a result of such repricing or refinancing the effective interest rate of the Term Loan B decreases, the Company shall be required to pay a prepayment fee equal to 1.0% of the aggregate principal amount of the Term Loan B subject to such repricing or refinancing. A portion of the Revolving Loan Facility is available for the issuances of letters of credit and the making of swingline loans, and any such issuance of letters of credit or making of a swingline loan will reduce the amount available under the Revolving Loan Facility. At the Company’s option, it may add one or more term loan facilities or increase the commitments under the Revolving Loan Facility so long as certain conditions are satisfied, including, among others, that no default or event of default is in existence, that the Company is in pro forma compliance with the financial covenants described below and that the Company’s senior secured leverage ratio is less than 3.50 to 1 on a pro forma basis after giving effect to the incurrence of such indebtedness. As of December 30, 2017 , the Company had $4,518 of standby and trade letters of credit issued and outstanding under the Revolving Loan Facility and $995,482 of borrowing availability. The Senior Secured Credit Facility is guaranteed by substantially all of the Company’s existing and future direct and indirect U.S. subsidiaries, with certain customary or agreed-upon exceptions for foreign subsidiaries and certain other subsidiaries. The Company and each of the guarantors under the Senior Secured Credit Facility have granted the lenders under the Senior Secured Credit Facility a valid and perfected first priority (subject to certain customary exceptions) lien and security interest in the following: • the equity interests of substantially all of the Company’s direct and indirect U.S. subsidiaries (other than U.S. subsidiaries directly or indirectly owned by foreign subsidiaries) and 65% of the voting securities of certain first tier foreign subsidiaries; and • substantially all present and future property and assets, real and personal, tangible and intangible, of the Company and each guarantor, except for certain enumerated interests, and all proceeds and products of such property and assets. The Term Loan A and the Term Loan B require the Company and its subsidiary MFB International Holdings, as applicable, to prepay any outstanding term loans in connection with (i) the incurrence of certain indebtedness and (ii) non-ordinary course asset sales or other dispositions (including as a result of casualty or condemnation) that exceed certain thresholds in any period of twelve-consecutive months, with customary reinvestment provisions. The Term Loan B also requires the Company and MFB International Holdings, as applicable, to prepay any outstanding term loans under the Term Loan B in connection with excess cash flow, which percentage will be based upon the Company’s leverage ratio during the relevant fiscal period. All such prepayments will be made on a pro rata basis under each of the applicable term loans that are subject to such prepayments. Borrowings under the Revolving Loan Facility, the Term Loan A and the Term Loan B bear interest based on the LIBOR rate or the “base rate” plus, in each case, an applicable margin. The applicable margin for the Revolving Loan Facility and the Term Loan A is determined by reference to a leverage-based pricing grid set forth in the Senior Secured Credit Facility, ranging from a maximum of 2.00% in the case of LIBOR-based loans and 1.00% in the case of Base Rate loans if the Company’s leverage ratio is greater than or equal to 4.50 to 1.00, and will step down in 0.25% increments to a minimum of 1.00% in the case of LIBOR-based loans and 0.00% in the case of Base Rate loans if the Company’s leverage ratio is less than 2.25 to 1.00. The applicable margin under the Term Loan B is 1.75% in the case of LIBOR-based loans and 0.75% in the case of Base Rate loans. The Senior Secured Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants. The Senior Secured Credit Facility requires that the Company maintain a minimum interest coverage ratio and a maximum total debt to EBITDA (earnings before interest, income taxes, depreciation expense and amortization, as computed pursuant to the Senior Secured Credit Facility), or leverage ratio. The interest coverage ratio covenant requires that the ratio of the Company’s EBITDA for the preceding four fiscal quarters to its consolidated total interest expense for such period shall not be less than 3.00 to 1.00 for each fiscal quarter. The leverage ratio covenant requires that the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters will not be more than 4.50 to 1.00 for each fiscal quarter provided that, following a permitted acquisition in which the consideration is at least $200,000 , such maximum leverage ratio covenant shall be increased to 5.00 to 1.00 for each fiscal quarter ending in the succeeding 12-month period following such permitted acquisition. The method of calculating all of the components used in the covenants is included in the Senior Secured Credit Facility. In addition, the commitment fee for the unused portion of revolving loan commitments made by the lenders is between 25 and 40 basis points based on the applicable commitment fee margin in effect from time to time. When the leverage ratio (as defined in the Senior Secured Credit Facility) is greater than or equal to 4.50 to 1.00, the commitment fee margin is 0.400% . When the leverage ratio is less than 4.50 to 1.00 but greater than or equal to 3.00 to 1.00, the applicable commitment fee margin is 0.300% . When the leverage ratio is less than 3.00 to 1.00, the applicable commitment fee margin is 0.250% . The Senior Secured Credit Facility contains customary events of default, including nonpayment of principal when due; nonpayment of interest, fees or other amounts after stated grace period; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; any cross-default to material indebtedness; certain material judgments; certain events related to the ERISA, actual or asserted invalidity of any guarantee, security document or subordination provision or non-perfection of security interest, and a change in control (as defined in the Senior Secured Credit Facility). As of December 30, 2017 the Company was in compliance with all financial covenants. Senior Notes Refinancing In 2016, the Company refinanced its debt structure which reduced interest rates, increased borrowing capacity, increased the proportion of fixed rate debt and helped fund the acquisitions of Champion Europe and Hanes Australasia. The refinancing: (i) issued $900,000 aggregate principal amount of the 4.875% Senior Notes due 2026, $900,000 aggregate principal amount of the 4.625% Senior Notes due 2024, and €500,000 aggregate principal amount of the 3.5% Senior Notes due 2024; (ii) redeemed in full the Company’s 6.375% Senior Notes due 2020; and (iii) repaid a portion of the indebtedness outstanding under the Revolving Loan Facility. The refinancing activity resulted in the incurrence of $39,523 in capitalized debt issuance costs for the new Senior Notes. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which range from eight to 10 years years. 4.875% Senior Notes and 4.625% Senior Notes On May 6, 2016, the Company issued $900,000 aggregate principal amount of 4.875% Senior Notes and $900,000 aggregate principal amount of 4.625% Senior Notes (collectively, the “USD Senior Notes”), with interest payable on May 15 and November 15 of each year. The 4.875% Senior Notes will mature on May 15, 2026 and the 4.625% Senior Notes will mature on May 15, 2024. The sale of the USD Senior Notes resulted in collective net proceeds from the sale of approximately $1,773,000 , which were used to repay all outstanding borrowings under the 6.375% Senior Notes and reduce the outstanding borrowings under the Revolving Loan Facility. On or after February 15, 2026, in the case of the 4.875% Senior Notes, and February 15, 2024, in the case of the 4.625% Senior Notes, the Company may redeem all or a portion of such notes at a price equal to 100% of the principal amount, plus a ny accrued and unpaid interest. The USD Senior Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed, subject to certain exceptions, by substantially all of the Company’s current domestic subsidiaries. The indenture governing the USD Senior Notes limits the ability of the Company and its subsidiaries to incur liens, enter into certain sale and leaseback transactions and consolidate, merge or sell all or substantially all of their assets. The indenture also contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in such indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency. The USD Senior Notes were issued in a transaction exempt from registration under the Securities Act and do not require disclosure of separate financial information for the guarantor subsidiaries. 3.5% Senior Notes On June 3, 2016, the Company issued €500,000 aggregate principal amount of 3.5% Senior Notes, with interest payable on June 15 and December 15 of each year. The Notes will mature on June 15, 2024. The sale of the notes resulted in net proceeds of approximately €492,500 , which were used to help fund the acquisition of Champion Europe and Hanes Australasia. On or after March 15, 2024, the Company may redeem all or a portion of the 3.5% Senior Notes at a price equal to 100% of the principal amount, plus any accrued and unpaid interest. The Company may also redeem all, but not less than all, of the notes upon the occurrence of certain changes in applicable tax law. The 3.5% Senior Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed, subject to certain exceptions, by the Company and certain of its subsidiaries that guarantee the Company’s Euro Term Loan facility, which was paid in full in August 2016, under the Company’s Senior Secured Credit Facility. The indenture governing the 3.5% Senior Notes limits the ability of the Company and each of the guarantors of the Notes (including the Company) to incur certain liens, enter into certain sale and leaseback transactions and consolidate, merge or sell all or substantially all of their assets. The indenture also contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the indenture; failure to pay certain other indebtedness; certain events of bankruptcy, insolvency or reorganization; failure to pay certain final judgments; and failure of certain guarantees to be enforceable. The 3.5% Senior Notes were issued in a transaction exempt from registration under the Securities Act and do not require disclosure of separate financial information for the guarantor subsidiaries. Accounts Receivable Securitization Facility The Accounts Receivable Securitization Facility provides for up to $275,000 in funding accounted for as a secured borrowing, limited to the availability of eligible receivables, and is secured by certain domestic trade receivables. Under the terms of the Accounts Receivable Securitization Facility, the Company and certain of its subsidiaries sell, on a revolving basis, certain domestic trade receivables to HBI Receivables LLC (“Receivables LLC”), a wholly owned bankruptcy-remote subsidiary that in turn uses the trade receivables to secure the borrowings, which are funded through conduits and financial institutions that are not affiliated with the Company. The commitments of any conduits party to the Accounts Receivable Securitization Facility are funded through the issuance of commercial paper in the short-term market or through committed bank purchasers if the conduits fail to fund. The assets and liabilities of Receivables LLC are fully reflected on the Consolidated Balance Sheet, and the securitization is treated as a secured borrowing for accounting purposes, but the assets of Receivables LLC will be used first to satisfy the creditors of Receivables LLC, not the Company’s creditors. The borrowings under the Accounts Receivable Securitization Facility remain outstanding throughout the term of the agreement subject to the Company maintaining sufficient eligible receivables, by continuing to sell trade receivables to Receivables LLC, unless an event of default occurs. In March 2017, the Company amended the Accounts Receivable Securitization Facility primarily to extend the termination date to March 2018. Availability of funding under the Accounts Receivable Securitization Facility depends primarily upon the eligible outstanding receivables balance. The outstanding balance under the Accounts Receivable Securitization Facility is reported on the Consolidated Balance Sheet in the line “Accounts Receivable Securitization Facility.” In the case of any creditors party to the Accounts Receivable Securitization Facility that are conduits, unless the conduits fail to fund, the yield on the commercial paper, which is the conduits’ cost to issue the commercial paper plus certain dealer fees, is considered a financing cost and is included in interest expense on the Consolidated Statement of Income. If the conduits fail to fund, the Accounts Receivable Securitization Facility would be funded through committed bank purchasers, and the interest rate would be payable at the Company’s option at the rate announced from time to time by HSBC Bank USA, N.A. as its prime rate or at the LIBO Rate (as defined in the Accounts Receivable Securitization Facility) plus the applicable margin in effect from time to time. In the case of borrowings from any other creditors party to the Accounts Receivable Securitization Facility that are not conduits or their related committed bank purchasers, the interest rate is payable at the LIBO Rate (as defined in the Accounts Receivable Securitization Facility) or, if this rate is unavailable or otherwise does not accurately reflect the costs to these creditors related to the borrowings, the prime rate. These amounts are also considered financing costs and are included in interest expense on the Consolidated Statement of Income. In addition, HBI Receivables LLC is required to make certain payments to a conduit purchaser, a committed purchaser, or certain entities that provide funding to or are affiliated with them, in the event that assets and liabilities of a conduit purchaser are consolidated for financial and/or regulatory accounting purposes with certain other entities. The Accounts Receivable Securitization Facility contains customary events of default and requires the Company to maintain the same interest coverage ratio and leverage ratio contained from time to time in the Senior Secured Credit Facility, provided that any changes to such covenants will only be applicable for purposes of the Accounts Receivable Securitization Facility if approved by the Managing Agents or their affiliates. As of December 30, 2017 , the Company was in compliance with all financial covenants. The total amount of receivables used as collateral for the credit facility was $413,046 at December 30, 2017 and is reported on the Company’s Consolidated Balance Sheet in “Trade accounts receivable, net.” Australian Term A-1, Australian Term A-2, and Australian Revolver On July 4, 2016, the Company established a floating rate AUD$ 200,000 Australian Term A-1 Loan Facility (the “Australian Term A-1”) with interest payable every three or six months. The Australian Term A-1 matures on July 7, 2019. In addition, on July 4, 2016 the Company established a floating rate AUD$ 200,000 Australian Term A-2 Loan Facility (the “Australian Term A-2”) with interest payable every three or six months. The Australian Term A-2 loan was paid off in November 2017. On July 15, 2016 the Company established the Australian Revolving Facility (the “Australian Revolver”) in the amount of AUD$ 65,000 with interest payable at a variable rate. The Australian Revolver will mature on July 15, 2021. The Australian Term A-1, Australian Term A-2 and Australian Revolver interest rates are based on the Bank Bill Swap Bid Rate (“BBSY”) plus an applicable margin which is driven by the Company’s debt rating. The Australian Term A-1 and the Australian Term A-2 were issued to help fund the Hanes Australasia acquisition while the Revolver will be utilized for future working capital requirements. The Australian Term A-1, Australian Term A-2, and Australian Revolver were established under the Company’s Syndicated Facility, a joinder to the Company’s Senior Secured Credit Facility. The Syndicated Facility Agreement requires the Company to prepay any outstanding Term Loans in connection with (i) the incurrence of certain indebtedness and (ii) non-ordinary course asset sales or other dispositions (including as a result of casualty or condemnation) that exceed certain thresholds in any period of twelve consecutive months, with customary reinvestment provisions. The Syndicated Facility Agreement also requires the Company, and certain of its subsidiary guarantors, as applicable, to prepay any outstanding Term Loans in connection with excess cash flow, which amount will be based upon the Company’s leverage ratio during the relevant fiscal period. All such prepayments will be made on a pro rata basis under each of the applicable Term Loan Facilities that are subject to such prepayments. Under the terms of the Syndicated Facility Agreement, the leverage ratio covenant requires that the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters will not be more than 4.50 :1.00 for each fiscal quarter provided that, following a permitted acquisition in which the consideration is at least $200,000 , such maximum leverage ratio covenant shall be increased to 5.00 :1.00 for each fiscal quarter in the succeeding 12-month period following such permitted acquisition. There was not a balance or letters of credit issued and outstanding under the Australian Revolving Loan Facility at December 30, 2017 , and the Company had $50,497 of borrowing availability. European Revolving Loan Facility On September 9, 2016, the Company established a €100,000 European Revolving Loan Facility. Proceeds from the European Revolving Loan Facility were used to refinance existing debt for Hanes Europe Innerwear and will be used for future working capital requirements. The maturity date of the European Revolving Loan Facility is September 6, 2018. The Company may from time to time voluntarily prepay the European Revolving Loan Facility in whole or in part without a premium or penalty provided that among other items, principal payments be made in amounts of €5,000 or in whole multiple of €1,000 in excess thereof. Any prepayment of principal shall be accompanied by all accrued interest on the amount prepaid. Interest under the European Revolving Credit Facility is calculated using LIBOR for Euro with a zero floor plus a 150 basis point margin. Interest is based on the outstanding principal amount for each interest period from the applicable borrowing date at a rate per annum equal to the Eurocurrency Rate for such interest period plus the applicable rate. In September 2017, the Company amended the European Revolving Loan Facility primarily to extend the maturity date to September 2018. At December 30, 2017 , the Company had $37,339 of borrowing availability, taking into account the outstanding balance at the end of the year. Future Principal Payments Future principal payments for all of the facilities described above are as follows: $249,589 due in 2018 , $179,029 due in 2019 , $42,500 due in 2020 , $42,500 due in 2021 , $605,000 due in 2022 and $2,874,649 due in 2023 and thereafter. Debt Issuance Costs During 2017, 2016 and 2015, the Company incurred $9,130 , $45,065 and $12,793 , respectively, in capitalized debt issuance costs in connection with the amendments to the Senior Secured Credit Facility, the Accounts Receivable Securitization Facility, issuance of new Senior Notes, the Australian Revolving Loan Facility, the Australian Accounts Receivable Securitization Facility and the European Revolving Loan Facility. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which range from one to 10 years. As of December 30, 2017 , the net carrying value of unamortized debt issuance costs for the revolving loan facilities, which is included in “Other Noncurrent Assets” in the Consolidated Balance Sheet, was $10,575 and the net carrying value of unamortized debt issuance costs for the remainder of the Company’s debt, is included in “Long-term debt” in the Consolidated Balance Sheet was $41,624 . The Company’s debt issuance cost amortization was $10,394 , $9,034 and $7,077 in 2017 , 2016 and 2015 , respectively. The Company recognizes charges in the “Other expenses” line of the Consolidated Statements of Income for fees incurred in financing transactions such as refinancing, amendments and write-offs incurred in the early extinguishment of debt. In 2017, the Company recognized charges of $380 for acceleration of unamortized debt costs related to the Euro Term Loan, $1,909 for the Australian Term Loans, and $1,739 for the Refinancing of the US Term Loans. In 2016, the Company recognized charges of $873 for acceleration of unamortized debt costs related to the Euro Term Loan, which was paid in full in August 2016. In 2016, the Company recognized charges of $47,291 for the call premium and acceleration of unamortized debt costs related to the redemption of the 6.375% Senior Notes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
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Commitments and Contingencies | Commitments and Contingencies The Company is a party to various pending legal proceedings, claims and environmental actions by government agencies. In accordance with the accounting rules for contingencies, the Company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can reasonably be estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to the particular matter. The recorded liabilities for these items were not material to the consolidated financial statements of the Company in any of the years presented. Although the outcome of such items cannot be determined with certainty, the Company’s legal counsel and management are of the opinion that the final outcome of these matters will not have a material adverse impact on the consolidated financial position, results of operations or liquidity. Purchase Commitments In the ordinary course of business, the Company has entered into purchase commitments for raw materials, production and finished goods. These agreements, typically with terms ending within a year, require total payments of $418,038 in 2018 , $3,318 in 2019 and none thereafter. Operating Leases The Company leases certain buildings and equipment under agreements that are classified as operating leases. Rental expense under operating leases was $184,603 , $132,128 and $103,621 in 2017 , 2016 and 2015 , respectively. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows: $137,959 in 2018 , $114,326 in 2019 , $97,850 in 2020 , $81,390 in 2021 , $65,608 in 2022 and $125,163 thereafter. License Agreements The Company is party to several royalty-bearing license agreements for the use of third party trademarks in certain of their products. The license agreements typically require a minimum guarantee to be paid either at the commencement of the agreement, by a designated date during the term of the agreement or by the end of the agreement period. When payments are made in advance of when they are due, the Company records a prepayment and amortizes the expense in the “Cost of sales” line of the Consolidated Statements of Income uniformly over the guaranteed period. For guarantees required to be paid at the completion of the agreement, royalties are expensed through “Cost of sales” as the related sales are made. Management has reviewed all license agreements and has concluded that there are no liabilities recorded at inception of the agreements. During 2017 , 2016 and 2015 , the Company incurred royalty expense of approximately $100,869 , $95,650 and $84,733 , respectively. Minimum amounts due under the license agreements are approximately $45,086 in 2018 , $60,688 in 2019 , $50,160 in 2020 , $7,289 in 2021 , $6,844 in 2022 and $27,596 thereafter. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 30, 2017 | |
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Intangible Assets and Goodwill | Intangible Assets and Goodwill As described in Note, “Acquisitions,” the Company acquired Alternative Apparel in October 2017, Hanes Australasia in July 2016, Champion Europe in June 2016 and GTM and Universo in September 2016, which resulted in the recognition of certain intangible assets and goodwill. In addition, during 2017, the Company elected to assign a useful life of 12 years to both the Knights Apparel and ProEdge brands and related trademarks, shifting them from indefinite lived intangible assets. As a result, beginning on January 1, 2017, the Company began amortizing these trademarks. Also, the Company elected to cease amortization of the Playtex Domestic trademark, shifting it from a useful life of 30 years to an indefinite life in 2016. (a) Intangible Assets The primary components of the Company’s intangible assets and the related accumulated amortization are as follows: Gross Accumulated Net Book Year ended December 30, 2017: Intangible assets subject to amortization: Trademarks and brand names $ 35,498 $ 24,694 $ 10,804 Licensing agreements 103,366 42,218 61,148 Customer and distributor relationships 172,820 42,010 130,810 Computer software 116,273 83,390 32,883 Other intangibles 2,131 397 1,734 $ 430,088 $ 192,709 237,379 Intangible assets not subject to amortization: Trademarks 1,089,742 Perpetual licensing agreements and other 75,736 Net book value of intangible assets $ 1,402,857 Gross Accumulated Net Book Year ended December 31, 2016: Intangible assets subject to amortization: Trademarks and brand names $ 28,617 $ 28,607 $ 10 Licensing agreements 102,069 33,397 68,672 Customer and distributor relationships 156,340 26,153 130,187 Computer software 88,213 68,318 19,895 Other intangibles (1,498 ) (994 ) (504 ) $ 373,741 $ 155,481 218,260 Intangible assets not subject to amortization: Trademarks 999,170 Perpetual licensing agreements 68,028 Net book value of intangible assets $ 1,285,458 The amortization expense for intangible assets subject to amortization was $34,892 , $22,118 and $23,737 for 2017 , 2016 and 2015 , respectively. The estimated amortization expense for the next five years, assuming no change in the estimated useful lives of identifiable intangible assets or changes in foreign exchange rates is as follows: $32,096 in 2018 , $32,811 in 2019 , $30,465 in 2020 , $27,087 in 2021 and $25,583 in 2022 . (b) Goodwill Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at January 2, 2016 $ 431,561 $ 289,153 $ 110,377 $ 3,224 $ 834,315 Acquisition of businesses — 2,290 285,236 — 287,526 Currency translation — — (23,301 ) — (23,301 ) Net book value at December 31, 2016 $ 431,561 $ 291,443 $ 372,312 $ 3,224 $ 1,098,540 Acquisition of businesses — 25,248 3,351 — 28,599 Segment change (24,708 ) 259 — 24,449 — Currency translation — — 39,868 — 39,868 Net book value at December 30, 2017 $ 406,853 $ 316,950 $ 415,531 $ 27,673 $ 1,167,007 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 30, 2017 | |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of AOCI are as follows: Cumulative Translation Adjustment Hedges Defined Benefit Plans Income Taxes Accumulated Other Comprehensive Loss Balance at January 2, 2016 $ (57,675 ) $ 6,743 $ (563,759 ) $ 219,758 $ (394,933 ) Amounts reclassified from accumulated other comprehensive loss — (3,966 ) 17,116 (5,030 ) 8,120 Current-period other comprehensive income (loss) activity (20,384 ) 10,995 (59,940 ) 20,151 (49,178 ) Balance at December 31, 2016 $ (78,059 ) $ 13,772 $ (606,583 ) $ 234,879 $ (435,991 ) Amounts reclassified from accumulated other comprehensive loss — (1,825 ) 19,062 (7,095 ) 10,142 Current-period other comprehensive income (loss) activity 34,554 (37,408 ) (26,479 ) 15,976 (13,357 ) Balance at December 30, 2017 $ (43,505 ) $ (25,461 ) $ (614,000 ) $ 243,760 $ (439,206 ) The Company had the following reclassifications out of AOCI: Component of AOCI Location of Reclassification into Income Amount of Reclassification from AOCI December 30, December 31, January 2, Loss on foreign exchange contracts Cost of sales $ (1,825 ) $ (3,966 ) $ (11,968 ) Income tax 225 1,543 4,655 Net of tax $ (1,600 ) $ (2,423 ) $ (7,313 ) Amortization of deferred actuarial loss and prior service cost Selling, general and administrative expenses $ 19,062 $ 17,116 $ 14,573 Income tax (7,320 ) (6,573 ) (5,669 ) Net of tax $ 11,742 $ 10,543 $ 8,904 Total reclassifications $ 10,142 $ 8,120 $ 1,591 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 30, 2017 | |
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Financial Instruments and Risk Management | Financial Instruments and Risk Management The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. As of December 30, 2017 , the notional U.S. dollar equivalent of commitments to sell foreign currencies within the Company’s derivative portfolio were $584,582 , consisting of contracts hedging exposures primarily related to the Australian dollar, Euro, Canadian dollar, Mexican peso, and the New Zealand dollar. As of December 30, 2017 , the Company did not have any commitments to purchase foreign currencies within the Company’s derivative portfolio. As of December 31, 2016 , the notional U.S. dollar equivalent of commitments to sell foreign currencies within the Company’s derivative portfolio were $451,355 consisting of contracts hedging exposures primarily related to the Euro, Australian dollar, Canadian dollar, Mexican peso, New Zealand dollar and Brazilian real. As of December 31, 2016 , the Company did not have any commitments to purchase foreign currencies within the Company’s derivative portfolio. Fair Values of Derivative Instruments The fair values of derivative financial instruments related to forward foreign exchange contracts recognized in the Consolidated Balance Sheets of the Company were as follows: Fair Value Balance Sheet Location December 30, December 31, Hedges Other current assets $ 1,464 $ 16,729 Non-hedges Other current assets 136 4,363 Total derivative assets $ 1,600 $ 21,092 Hedges Accrued liabilities $ (14,750 ) $ (207 ) Non-hedges Accrued liabilities (7,818 ) (172 ) Total derivative liabilities $ (22,568 ) $ (379 ) Net derivative asset (liability) $ (20,968 ) $ 20,713 Cash Flow Hedges The Company uses forward foreign exchange contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments, and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. The Company expects to reclassify into earnings during the next 12 months a net loss from AOCI of approximately $16,933 . The changes in fair value of derivatives excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. The effect of cash flow hedge derivative instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Loss is as follows: Amount of Gain (Loss) Recognized in December 30, December 31, January 2, Foreign exchange contracts $ (37,408 ) $ 10,995 $ 13,423 Location of Gain Reclassified from Amount of Gain Reclassified from December 30, December 31, January 2, Foreign exchange contracts Cost of sales $ 1,825 $ 3,966 $ 11,968 Derivative Contracts Not Designated As Hedges The Company uses foreign exchange derivative contracts as economic hedges against the impact of foreign exchange fluctuations on anticipated intercompany purchase and lending transactions denominated in foreign currencies. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities. The effect of derivative contracts not designated as hedges on the Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in December 30, December 31, January 2, Foreign exchange contracts Selling, general and $ 114 $ 12,222 $ (9,271 ) |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 30, 2017 | |
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Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. A three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is utilized for disclosing the fair value of the Company’s assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: • Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • Cost approach — amount that would be required to replace the service capacity of an asset or replacement cost. • Income approach — techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models. The Company primarily applies the market approach for commodity derivatives and for all defined benefit plan investment assets and the income approach for interest rate and foreign currency derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The determination of fair values incorporates various factors that include not only the credit standing of the counterparties involved and the impact of credit enhancements, but also the impact of the Company’s nonperformance risk on its liabilities. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. As of December 30, 2017 and December 31, 2016 , the Company held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis. These consisted of the Company’s derivative instruments related to foreign exchange rates, defined benefit pension plan investment assets, deferred compensation plan liabilities and contingent consideration resulting from the Champion Europe acquisition. The fair values of foreign exchange rate derivatives are determined using the cash flows of the foreign exchange contract, discount rates to account for the passage of time and current foreign exchange market data which are all based on inputs readily available in public markets and are categorized as Level 2. The fair value of deferred compensation plans is based on readily available current market data and is categorized as Level 2. The fair value of the contingent consideration obligation was determined by applying a multiple of 10 times Champion Europe’s EBITDA for calendar year 2016 in excess of €18,600 , as defined per the purchase agreement, as further described in Note, “Acquisitions,” to the Company’s consolidated financial statements, and was formerly categorized as Level 3 at December 31, 2016 . On April 28, 2017 , an initial payment of €37,820 ( $41,250 ) was made to the sellers towards the contingent consideration liability, which represented the mutually agreed portion of the contingent consideration at said date. Upon final settlement negotiations in January 2018, management has accrued €26,430 ( $31,419 ) at December 30, 2017 to reflect the fair value of the contingent consideration to be paid in 2018. The Company no longer has to measure the contingent consideration liability fair value on a recurring basis and has removed the liability from the fair value hierarchy table at December 30, 2017 . The fair values of defined benefit pension plan investments include: certain U.S. equity securities, certain foreign equity securities, cash and cash equivalents and debt securities that are determined based on quoted prices in public markets categorized as Level 1; insurance contracts that are determined based on inputs readily available in public markets or can be derived from information available in publicly quoted markets categorized as Level 2; certain U.S. equity securities, certain foreign equity securities, debt securities, insurance contracts and commodity investments measured at their net asset value, which is determined based on inputs readily available in public markets; and investments in hedge funds of funds and real estate investments that are based on unobservable inputs about which little or no market data exists and are measured at a net asset value. Assets valued utilizing a net asset value are not required to be classified within the fair value hierarchy. There were no changes during 2017 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of December 30, 2017 , the Company did not have any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis. Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 172,558 $ 172,558 $ — $ — Foreign equity securities 40,920 40,920 — — Debt securities 52,331 52,331 — — Cash and other 2,595 2,595 — — Insurance contracts 2,194 — 2,194 — Total plan assets in the fair value hierarchy 270,598 268,404 2,194 — Plan assets measured at net asset value: (1) Hedge fund of funds 328,511 Foreign equity securities 109,525 Debt securities 102,531 Real estate 42,996 Commodities 18,525 Total plan assets measured at net asset value 602,088 Total plan assets 872,686 Derivative contracts: Foreign exchange derivative contracts 1,600 — 1,600 — Foreign exchange derivative contracts (22,568 ) — (22,568 ) — (20,968 ) — (20,968 ) — Deferred compensation plan liability (52,758 ) — (52,758 ) — Total $ 798,960 $ 268,404 $ (71,532 ) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 147,702 $ 147,702 $ — $ — Foreign equity securities 33,511 33,511 — — Debt securities 49,128 49,128 — — Cash and other 2,234 2,234 — — Insurance contracts 3,334 — 3,334 — Total plan assets in the fair value hierarchy 235,909 232,575 3,334 — Plan assets measured at net asset value: (1) Hedge fund of funds 326,298 U.S. equity securities (2) 19,848 Foreign equity securities (2) 88,933 Debt securities (2) 95,634 Real estate 42,869 Commodities (2) 17,678 Total plan assets measured at net asset value 591,260 Total plan assets 827,169 Derivative contracts: Foreign exchange derivative contracts 21,092 — 21,092 — Foreign exchange derivative contracts (379 ) — (379 ) — 20,713 — 20,713 — Champion Europe contingent consideration (3) (42,378 ) — — (42,378 ) Deferred compensation plan liability (51,868 ) — (51,868 ) — Total $ 753,636 $ 232,575 $ (27,821 ) $ (42,378 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (2) The Company’s presentation of fair value hierarchy table has been revised to remove certain defined benefit pension plan assets from the fair value hierarchy to reflect the use of the net asset value as a practical expedient to value these assets in order to conform with ASU 2015-07, “Fair Value Measurement (Topic 820).” This change is not material to the consolidated financial statements and does not have an impact on the Company’s financial condition, results of operations or cash flows. (3) The fair value of the Champion Europe contingent consideration had not changed since the date of acquisition, other than from the foreign exchange translation impact between periods. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable and accounts payable approximated fair value as of December 30, 2017 and December 31, 2016 . The fair value of debt, which is classified as a Level 2 liability, was $4,093,229 and $3,729,270 as of December 30, 2017 and December 31, 2016 and had a carrying value of $3,993,267 and $3,732,583 , respectively. The fair values were estimated using quoted market prices as provided in secondary markets, which consider the Company’s credit risk and market related conditions. The carrying amounts of the Company’s notes payable, which is classified as a Level 2 liability, approximated fair value as of December 30, 2017 and December 31, 2016 , primarily due to the short-term nature of these instruments. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 12 Months Ended |
Dec. 30, 2017 | |
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Defined Benefit Pension Plans | Defined Benefit Pension Plans At December 30, 2017 , the Company’s pension plans consisted of the Hanesbrands Inc. Pension Plan, various nonqualified retirement plans and international plans, which include certain defined benefit plans acquired in connection with the purchases of Hanes Europe Innerwear and Hanes Australasia. Benefits under the Hanesbrands Inc. Pension Plan were frozen effective December 31, 2005. The components of net periodic benefit cost and other amounts recognized in other comprehensive income of the Company’s noncontributory defined benefit pension plans were as follows: Years Ended December 30, December 31, January 2, Service cost $ 2,216 $ 1,856 $ 2,478 Interest cost 40,830 42,061 49,202 Expected return on assets (41,780 ) (47,621 ) (55,127 ) Curtailments 154 (489 ) — Settlement cost 23 115 25 Amortization of: Prior service cost 9 9 22 Net actuarial loss 19,053 17,052 14,551 Net periodic benefit cost $ 20,505 $ 12,983 $ 11,151 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss $ 15,186 $ 41,921 $ 3,813 Prior service credit (cost) (380 ) (9 ) 22 Total loss recognized in other comprehensive income 14,806 41,912 3,835 Total recognized in net periodic benefit cost and other comprehensive income $ 35,311 $ 54,895 $ 14,986 The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost in 2018 are $19,949 and $(6) , respectively. The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: December 30, December 31, Benefit obligation: Beginning of year $ 1,197,189 $ 1,172,267 Service cost 2,216 1,856 Interest cost 40,830 42,061 Plan amendment (370 ) — Benefits paid (57,464 ) (56,576 ) Curtailments 187 (1,053 ) Settlements (688 ) (2,360 ) Impact of exchange rate change 9,453 (1,976 ) Business combination — 4,547 Actuarial loss 86,414 36,671 Other (45 ) 1,752 End of year 1,277,722 1,197,189 Fair value of plan assets: Beginning of year 827,169 809,217 Actual return on plan assets 94,957 24,758 Employer contributions 6,376 47,203 Benefits paid (57,464 ) (56,576 ) Settlements (688 ) (2,360 ) Business combination — 4,776 Impact of exchange rate change 2,381 178 Other (45 ) (27 ) End of year 872,686 827,169 Funded status $ (405,036 ) $ (370,020 ) As most of the Company’s pension plans are frozen, the accumulated benefit obligation (“ABO”) approximates the benefit obligation. The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: December 30, December 31, Benefit obligation $ 1,277,722 $ 1,197,189 Plans with benefit obligation in excess of plan assets: Benefit obligation 1,245,844 1,167,871 Fair value of plan assets 842,168 799,191 Amounts recognized in the Company’s Consolidated Balance Sheets consist of: December 30, December 31, Current liabilities $ (3,663 ) $ (3,605 ) Noncurrent liabilities (401,749 ) (366,822 ) Accumulated other comprehensive loss (618,416 ) (603,610 ) Amounts recognized in accumulated other comprehensive loss consist of: December 30, December 31, Prior service cost $ (163 ) $ 216 Actuarial loss 618,579 603,394 $ 618,416 $ 603,610 Accrued benefit costs related to the Company’s defined benefit pension plans are reported in the “Accrued liabilities — Payroll and employee benefits” and “Pension and postretirement benefits” lines of the Consolidated Balance Sheets. (a) Measurement Date and Assumptions A December 31 measurement date is used to value plan assets and obligations for the pension plans. In determining the discount rate in the prior years, the Company utilized, as a general benchmark, the single discount rate equivalent to discount the expected cash flows from each plan using the yields at each duration from a published yield curve as of the measurement date. Beginning in 2016, the Company changed the method utilized to estimate primarily the interest cost component of net periodic benefit costs for the Company’s U.S. defined benefit plans from using a single discount rate as discussed above. The Company elected to use a full yield curve approach in the estimation of the interest component of benefit costs by applying the specific spot rates along the yield curve used in the determination of the benefit obligations to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest costs. This change will not affect the measurement of the total benefit obligations as the change in interest costs is completely offset by the actuarial gain or loss reported. The expected long-term rate of return on plan assets was based on the Company’s investment policy target allocation of the asset portfolio between various asset classes and the expected real returns of each asset class over various periods of time. The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows: December 30, December 31, January 2, Net periodic benefit cost: Discount rate 4.15 % 4.43 % 4.43 % Long-term rate of return on plan assets 5.21 5.80 5.61 Rate of compensation increase (1) 3.84 3.51 3.51 Plan obligations: Discount rate 3.60 % 4.15 % 4.04 % Rate of compensation increase (1) 4.40 3.84 3.51 (1) The compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at December 30, 2017 , December 31, 2016 and January 2, 2016 . (b) Plan Assets, Expected Benefit Payments, and Funding The allocation of pension plan assets as of the respective period end measurement dates is as follows: December 30, December 31, Asset category: Hedge fund of funds 38 % 39 % U.S. equity securities 20 20 Debt securities 18 17 Foreign equity securities 17 15 Real estate 5 5 Commodities 2 2 Insurance contracts — 1 Cash and other — 1 The Company’s asset strategy and primary investment objective are to maximize the principal value of the plan assets to meet current and future benefit obligations to plan participants and their beneficiaries. To accomplish this goal, the assets of the plan are broadly diversified to protect against large investment losses and to reduce the likelihood of excessive volatility of returns. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, third party investment management firms with complementary investment styles and philosophies to implement these allocations. The Company has established a target asset allocation based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical data, prospective capital market returns and forecasted liabilities of the plans. The target asset allocation approximates the actual asset allocation as of December 30, 2017 . In addition to volatility protection, diversification enables the assets of the plan the best opportunity to provide adequate returns in order to meet the Company’s investment return objectives. These objectives include, over a rolling 5 -year period, to achieve a total return that exceeds the required actuarial rate of return for the plan and to outperform a passive portfolio, consisting of a similar asset allocation. The Company utilizes market data or assumptions that market participants would use in pricing the pension plan assets. At December 30, 2017 , the Company had $268,404 classified as Level 1 assets, $2,194 classified as Level 2 assets and no assets classified as Level 3. At December 31, 2016 , the Company had $ 232,575 classified as Level 1 assets, $3,334 classified as Level 2 assets and no assets classified as Level 3. The Level 1 assets consisted primarily of certain U.S. equity securities, certain foreign equity securities, certain debt securities and cash and cash equivalents. Certain foreign equity securities, debt securities, insurance contracts and commodity investments measured at their net asset value, which is determined based on inputs readily available in public markets, and investments in hedge funds of funds and real estate investments that are based on unobservable inputs about which little or no market data exists and are measured at a net asset value per share shall not be categorized within the fair value hierarchy. Refer to Note, “Fair Value of Assets and Liabilities,” for the Company’s complete disclosure of the fair value of pension plan assets. Expected benefit payments are as follows: $62,043 in 2018 , $64,066 in 2019 , $65,179 in 2020 , $69,600 in 2021 , $70,444 in 2022 and $367,269 thereafter. (c) Nonretirement Postemployment Benefit Plans Certain of the international plans, specifically those acquired in connection with the purchases of Hanes Europe Innerwear, are in substance nonretirement postemployment benefit plans, which are future liabilities funded through future operational results of the Company. However, for purposes of consolidation, the Company is including these plans within the defined benefit reporting. At December 30, 2017 and December 31, 2016 , the total amounts accrued for these plans were $52,943 and $48,330 , respectively and the total expense for the years ended December 30, 2017 and December 31, 2016 was $2,778 and $1,824 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Income Taxes | Income Taxes The provision for income tax computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual provisions were: Years Ended December 30, December 31, January 2, Income before income tax expense: Domestic (6.6 )% (10.2 )% 5.6 % Foreign 106.6 110.2 94.4 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 35.0 % 35.0 % 35.0 % State income tax 0.2 (0.7 ) 1.1 Tax on remittance of foreign earnings 0.5 9.9 9.1 Tax on remittance of foreign earnings due to U.S. tax reform 67.0 N/A N/A Revaluation of net deferred tax assets due to U.S. tax reform 14.3 N/A N/A Foreign taxes less than U.S. statutory rate (27.4 ) (38.5 ) (30.8 ) Employee benefits (0.2 ) (0.7 ) 0.4 Change in valuation allowance 0.1 1.2 2.6 Increase in unrecognized tax benefits 1.8 0.6 0.1 Release of unrecognized tax benefit reserves (0.9 ) (0.4 ) (9.8 ) State tax rate change 0.1 0.6 2.3 Federal and state provision to return (2.6 ) (0.7 ) (0.4 ) Other, net 0.2 (0.3 ) (0.1 ) Taxes at effective worldwide tax rates 88.1 % 6.0 % 9.5 % The recently enacted Tax Cuts and Jobs Act (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system that includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. In response to the Tax Act, the SEC issued SAB 118 which allows issuers to recognize provisional estimates of the impact of the Tax Act in their financial statements and adjust in the period in which the estimate becomes finalized, or in circumstances where estimates cannot be made, to disclose and recognize within a one year measurement period. Implementation of the Tax Act resulted in an approximate $72,333 charge for the revaluation of the Company’s net domestic deferred tax assets and a one-time provisional transition tax charge of approximately $359,938 . Other less material provisions of the Tax Act resulted in an additional provisional charge of $2,971 , whi ch include changes regarding the deductibility of employee compensation and other items. In reaching these estimates, the Company utilized all available guidance and notices issued by the U.S. Department of the Treasury. These amounts are to be considered provisional and are not currently able to be finalized given the complexity of the underlying calculations. The Company relied upon prior year legal entity financials and return filings in the estimates of the one-time transition tax. The Company will update and conclude its accounting as additional information is obtained, which in many cases is contingent on the timing of issuance of regulatory guidance. As of December 30, 2017, the Company is in the process of evaluating the impact of the Tax Act on its permanent reinvestment assertion. With respect to accumulated earnings of foreign subsidiaries, no additional U.S. federal income taxes or foreign withholding taxes have been provided as all accumulated earnings of foreign subsidiaries are deemed to have been remitted as part of the one-time transition tax. The Company continues to evaluate its permanent reinvestment assertion in light of the Tax Act. The accounting is expected to be completed within the one-year measurement period as allowed by SAB 118. Finally, the Company continues to analyze the impact of provisions which will be effective in future years. Relevant to the current consolidated financial statements is the Company's selection of an accounting policy with respect to the new GILTI tax rules, and whether to account for GILTI as a periodic charge in the period it arises, or to record deferred taxes associated with the basis in the Company’s foreign subsidiaries. Due to the intricacy of this topic, the Company is still in the process of investigating the implications of accounting for the GILTI tax and intends to make an accounting policy decision once additional guidance is available for assessment. The Company has been granted income tax rates lower than statutory rates in two foreign jurisdictions through 2019. These lower rates, when compared with the countries’ statutory rates, resulted in an income tax reduction of approximately $2,800 ( $0.01 per diluted share) in 2017 , $1,300 (negligible impact per diluted share) in 2016 and $2,200 ( $0.01 per diluted share) in 2015 . Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended December 30, 2017 Domestic $ 154,751 $ 260,393 $ 415,144 Foreign 10,603 (15,098 ) (4,495 ) State 68,857 (6,227 ) 62,630 $ 234,211 $ 239,068 $ 473,279 Year ended December 31, 2016 Domestic $ 2,768 $ 34,590 $ 37,358 Foreign 38,257 (34,232 ) 4,025 State 2,083 (9,194 ) (7,111 ) $ 43,108 $ (8,836 ) $ 34,272 Year ended January 2, 2016 Domestic $ (2,294 ) $ 9,437 $ 7,143 Foreign 32,067 (10,235 ) 21,832 State 4,395 11,648 16,043 $ 34,168 $ 10,850 $ 45,018 Years Ended December 30, December 31, January 2, Cash payments for income taxes $ 57,882 $ 39,655 $ 23,045 Cash payments above represent cash tax payments made by the Company primarily in foreign jurisdictions. The deferred tax assets and liabilities at the respective year-ends were as follows: December 30, December 31, Deferred tax assets: Nondeductible reserves $ 1,859 $ 1,962 Inventories 57,857 123,507 Property and equipment — 3,322 Bad debt allowance 7,363 6,965 Accrued expenses 14,399 20,351 Employee benefits 143,970 181,148 Tax credits 10,140 45,783 Net operating loss and other tax carryforwards 142,064 210,284 Derivatives 3,305 — Other 17,305 20,355 Gross deferred tax assets 398,262 613,677 Less valuation allowances (72,602 ) (67,451 ) Deferred tax assets 325,660 546,226 Deferred tax liabilities: Property and equipment 4,455 — Derivatives — 5,103 Intangibles 120,033 121,674 Prepaids 3,932 5,728 Deferred tax liabilities 128,420 132,505 Net deferred tax assets $ 197,240 $ 413,721 The prior year deferred balances for intangibles and net operating loss and other tax carryforwards have been revised to reflect cumulative tax amortization that should have been recorded in previous periods on certain intangibles for approximately $109,447. The impact of not amortizing the intangibles for income tax purposes was not material to previously issued consolidated financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances. The changes in the Company’s valuation allowance for deferred tax assets are as follows: January 3, 2015 $ 43,757 Charge to expenses 12,224 Charged to other accounts (1) 5,377 January 2, 2016 $ 61,358 Charge to expenses 6,859 Charged to other accounts (1) (766 ) December 31, 2016 $ 67,451 Charge to expenses 729 Charged to other accounts (1) 4,422 December 30, 2017 $ 72,602 (1) Charges to other accounts include the effects of foreign currency translation and purchase accounting adjustments. As of December 30, 2017 , the valuation allowance for deferred tax assets was $72,602 , made up of $48,862 for foreign loss carryforwards, $14,679 for other foreign deferred tax assets, $9,061 for federal and state operating loss carryforwards and other federal deferred tax assets. The net change in the total valuation allowance for 2017 was $5,151 related to an increase of $11,725 for foreign loss carryforwards and other foreign deferred tax assets and a decrease of $6,574 for federal and state operating loss carryforwards and other domestic deferred tax assets. At December 30, 2017 , the Company has total net operating loss carryforwards of approximately $324,833 for foreign jurisdictions, which will expire as follows: Fiscal Year: 2018 $ 8,671 2019 23,809 2020 4,435 2021 6,326 2022 2,676 Thereafter 278,916 At December 30, 2017 , the Company had tax credit carryforwards totaling $10,140 , which expire beginning after 2020 . At December 30, 2017 , the Company had federal and state net operating loss carryforwards of approximately $12,810 and $916,529 , respectively, which expire beginning after 2018 . In 2017 and 2016 , the Company recognized a benefit related to the realization of unrecognized tax benefits resulting from the expiration of statutes of limitations of $4,227 and $4,146 , respectively. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase or decrease within the next 12 months due to uncertainties regarding the timing of examinations and the amount of settlements that may be paid, if any, to tax authorities, the Company currently expects a reduction of approximately $4,963 for unrecognized tax benefits accrued at December 30, 2017 within the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at January 2, 2016 (gross balance of $20,085) $ 19,780 Additions based on tax positions related to the current year 4,648 Additions for tax positions of prior years 106 Reductions for tax positions of prior years (4,838 ) Balance at December 31, 2016 (gross balance of $20,688) $ 19,696 Additions based on tax positions related to the current year 7,902 Additions for tax positions of prior years 36 Reductions for tax positions of prior years (3,602 ) Balance at December 30, 2017 (gross balance of $26,175) $ 24,032 At December 30, 2017 , the balance of the Company’s unrecognized tax benefits, which would, if recognized, affect the Company’s annual effective tax rate was $24,032 . The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company recognized $760 in 2017 for interest and penalties classified as income tax expense and $549 and $3,669 , respectively in 2016 and 2015 , for interest and penalties classified as income tax benefit in the Consolidated Statement of Income. At December 30, 2017 and December 31, 2016 , the Company had a total of $4,011 and $3,251 , respectively, of interest and penalties accrued related to unrecognized tax benefits. The Company files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. In the United States, the Internal Revenue Service (“IRS”) began an examination of the Company’s 2011 tax year during the fourth quarter of 2013 and of the Company’s 2012 tax year during the third quarter of 2014, both of which were completed during the third quarter of 2015. As a result in 2015, the Company recorded an income tax benefit of $56,427 due to the remeasurement of certain unrecognized tax benefits. During the fourth quarter of 2017, the Company was notified by the IRS that they would begin examining the 2015 tax year. The Company is also subject to examination by various state and international tax authorities. The tax years subject to examination vary by jurisdiction. The Company regularly assesses the outcomes of both ongoing and future examinations for the current or prior years to ensure the Company’s provision for income taxes is sufficient. The Company recognizes liabilities based on estimates of whether additional taxes will be due and believes its reserves are adequate in relation to any potential assessments. The outcome of any one examination, some of which may conclude during the next 12 months, is not expected to have a material impact on the Company’s financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2017 | |
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Stockholders' Equity | Stockholders’ Equity The Company is authorized to issue up to 2,000,000 shares of common stock, par value $0.01 per share, and up to 50,000 shares of preferred stock, par value $0.01 per share, and the Company’s Board of Directors may, without stockholder approval, increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company is authorized to issue. At December 30, 2017 and December 31, 2016 , 360,126 and 378,687 shares, respectively, of common stock were issued and outstanding and no shares of preferred stock were issued or outstanding. On April 27, 2016, the Company’s Board of Directors approved a new share repurchase program for up to 40,000 shares to be repurchased in open market transactions, subject to market conditions, legal requirements and other factors. The new program replaced the Company’s previous share repurchase program for up to 40,000 shares that was originally approved in 2007. Additionally, management has been granted authority to establish a trading plan under Rule 10b5-1 of the Exchange Act in connection with share repurchases, which will allow the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for the Company and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. During 2017 , under the current repurchase program, the Company purchased 19,640 shares of the Company’s common stock at a cost of $400,017 (average price of $20.35 ). During 2016 , under the previous repurchase program, the Company purchased 14,243 shares of the Company’s common stock at a cost of $379,901 (average price of $26.65 ). Since inception of the share repurchase plan approved in 2016 the Company has purchased 19,640 shares of the Company’s common stock at a cost of $400,017 (average price of $20.35 ). At December 30, 2017 , the remaining repurchase authorization under the current share repurchase program totaled approximately 20,360 shares. The primary objective of the share repurchase program is to utilize excess cash to generate shareholder value. Preferred Stock Purchase Rights On October 27, 2015, the Company entered into a Second Amendment to Rights Agreement (the “Second Amendment”) to the original Rights Agreement dated as of September 1, 2006 and previously amended on March 26, 2015 (the “Rights Agreement”) between the Company and Computershare Trust Company, N.A., as Rights Agent, one preferred stock purchase right (a “Right”) was distributed with and attached to each share of the Company’s common stock. Each Right entitled its holder, under certain circumstances, to purchase from the Company one one-thousandth of a share of the Company’s Junior Participating Preferred Stock, Series A (the “Series A Preferred Stock”). The Second Amendment accelerated the expiration of the Rights from September 1, 2016 to November 10, 2015 and had the effect of terminating the Rights Agreement on November 10, 2015. At the time of the termination of the Rights Agreement, all of the Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired. In connection with the termination of the Rights Agreement, on November 10, 2015, the Company eliminated the Series A Preferred Stock issuable upon exercise of the Rights and reclassified the Series A Preferred Stock as authorized but undesignated shares of the Company’s preferred stock. Dividends In 2015 , the Company’s Board of Directors declared regular quarterly dividends of $0.10 per share on outstanding common stock, which were paid in 2015 . On March 3, 2015, the Company effected a four -for-one stock split in the form of a 300% stock dividend to stockholders of record as of the close of business on February 9, 2015. In 2016 , the Company’s Board of Directors declared regular quarterly dividends of $0.11 per share on outstanding common stock, which were paid in 2016 . In January 2017 , the Company’s Board of Directors increased the regular quarterly dividend rate to $0.15 per share on outstanding common stock. During the Company’s 2017 fiscal year, regular quarterly cash dividends of $0.15 per share were paid on March 7, 2017, June 6, 2017, September 6, 2017 and December 5, 2017. In February 2018 , the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share on outstanding common stock to be paid on March 13, 2018 to stockholders of record at the close of business on February 20, 2018. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Business Segment Information | Business Segment Information In the first quarter of 2017, the Company realigned its reporting segments to reflect the new model under which the business will be managed and results will be reviewed by the chief executive officer, who is the Company’s chief operating decision maker. The former Direct to Consumer segment, which consisted of the Company’s U.S. value-based (“outlet”) stores, legacy catalog business and U.S. retail Internet operations, was eliminated. The Company’s U.S. retail Internet operations, which sells products directly to consumers, is now reported in the respective Innerwear and Activewear segments. Other consists of the Company’s U.S. value-based (“outlet”) stores, U.S. hosiery business (previously reported in the Innerwear segment) and legacy catalog operations. Prior year segment sales and operating profit results have been revised to conform to the current year presentation. The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. The types of products and services from which each reportable segment derives its revenues are as follows: • Innerwear sells basic branded products that are replenishment in nature under the product categories of men’s underwear, panties, children’s underwear, socks and intimate apparel, which includes bras and shapewear. • Activewear sells basic branded products that are primarily seasonal in nature under the product categories of branded printwear and retail activewear, as well as licensed logo apparel in collegiate bookstores, mass retail and other channels. • International primarily relates to the Europe, Australia, Asia, Latin America and Canada geographic locations that sell products that span across the Innerwear and Activewear reportable segments. The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, acquisition-related and integration charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note, “Summary of Significant Accounting Policies.” Years Ended December 30, December 31, January 2, Net sales: Innerwear $ 2,462,876 $ 2,543,717 $ 2,609,402 Activewear 1,654,278 1,601,108 1,605,423 International 2,054,664 1,531,913 1,132,637 Other 299,592 351,461 384,087 Total net sales $ 6,471,410 $ 6,028,199 $ 5,731,549 Years Ended December 30, December 31, January 2, Segment operating profit: Innerwear $ 528,038 $ 563,905 $ 596,634 Activewear 227,589 224,658 245,563 International 261,411 179,917 105,515 Other 23,364 32,801 43,582 Total segment operating profit 1,040,402 1,001,281 991,294 Items not included in segment operating profit: General corporate expenses (89,690 ) (64,995 ) (106,379 ) Acquisition, integration and other action-related charges (192,752 ) (138,519 ) (266,060 ) Amortization of intangibles (34,892 ) (22,118 ) (23,737 ) Total operating profit 723,068 775,649 595,118 Other expenses (11,363 ) (51,758 ) (3,210 ) Interest expense, net (174,435 ) (152,692 ) (118,035 ) Income from continuing operations before income tax expense $ 537,270 $ 571,199 $ 473,873 For the year ended December 30, 2017 , the Company incurred pre-tax acquisition, integration and other action-related charges of $197,904 , of which $54,970 is reported in the “Cost of sales” line, $109,930 is reported in the “Selling, general and administrative expenses” line, $27,852 is reported in the “Change in fair value of contingent consideration” line, and $5,152 is reported in the “Other Expenses” line in the Consolidated Statement of Income. For the year ended December 31, 2016 , the Company incurred pre-tax acquisition-related and integration charges of $185,810 , of which $39,379 is reported in the “Cost of sales” line, $99,140 is reported in the “Selling, general and administrative expenses” line and $47,291 is reported in the “Other Expenses” line in the Consolidated Statement of Income. For the year ended January 2, 2016 , the Company incurred pre-tax acquisition, integration and other action-related charges of $266,060 , of which $62,859 is reported in the “Cost of sales” line and $203,201 is reported in the “Selling, general and administrative expenses” line in the Consolidated Statement of Income. As part of the Hanes Europe Innerwear acquisition strategy, in 2015 the Company identified management and administrative positions that were considered non-essential and/or duplicative that have been or will be eliminated. As of December 31, 2016 , the Company had accrued $32,542 for expected benefit payments related to employee termination and other benefits for affected employees. As of December 30, 2017 , approximately $10,240 of benefit payments and foreign currency adjustments had been made, resulting in an ending accrual of $22,302 , of which, $11,531 and $10,771 , is included in the “Accrued liabilities — Other” and “Other noncurrent liabilities” lines of the Consolidated Balance Sheet, respectively. In the first quarter of 2017, the Company approved an action to resize its U.S. corporate office workforce through separation programs affecting employees primarily in the Innerwear and Activewear segments. In 2017, the Company accrued approximately $14,671 for employee termination and other benefits in accordance with expected benefit payments, with the majority of charges reflected in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. During 2017, there were approximately $12,049 of benefit payments resulting in an ending accrual of $2,622 included in the “Accrued liabilities — Other” line of the Consolidated Balance Sheet. The Company closed its Nanjing, China textile plant in the first quarter of 2017 as part of a plan to realign its Asia textile production in order to better support its global commercial footprint, which has evolved over the past 10 years through major acquisitions in the United States, Europe and Australia. In 2017, the Company accrued approximately $8,534 for employee termination and other benefits in accordance with expected benefit payments for employees. The charges, along with other facility exit costs of $4,002 , were reflected in the “Cost of sales” line of the Consolidated Statements of Income. During 2017, there were approximately $8,167 of benefit payments and foreign currency adjustments, resulting in an accrual of $367 , which is included in the “Accrued liabilities — Other” line of the Consolidated Balance Sheet. As of December 30, 2017 , the Nanjing, China textile plant, valued at $65,570 , was classified as assets held for sale and reported within the “Other current assets” line of the Consolidated Balance Sheet. December 30, December 31, Assets: Innerwear $ 1,578,023 $ 1,604,088 Activewear 872,132 874,006 International 1,275,838 1,113,972 Other 151,980 160,475 3,877,973 3,752,541 Current assets of discontinued operations — 45,897 Corporate (1) 3,016,802 3,132,042 Total assets $ 6,894,775 $ 6,930,480 Years Ended December 30, December 31, January 2, Depreciation and amortization expense: Innerwear $ 32,000 $ 36,591 $ 38,136 Activewear 19,485 19,196 21,626 International 30,219 18,694 13,201 Other 5,891 6,576 7,203 87,595 81,057 80,166 Corporate 34,892 22,118 23,737 Total depreciation and amortization expense $ 122,487 $ 103,175 $ 103,903 Years Ended December 30, December 31, January 2, Additions to property, plant and equipment: Innerwear $ 21,427 $ 28,078 $ 43,170 Activewear 11,263 11,518 22,331 International 31,127 23,520 18,022 Other 3,455 4,353 9,815 67,272 67,469 93,338 Corporate 19,736 15,930 6,037 Total additions to long-lived assets $ 87,008 $ 83,399 $ 99,375 (1) Principally cash and equivalents, certain fixed assets, net deferred tax assets, goodwill, trademarks and other identifiable intangibles, and certain other noncurrent assets. Sales to Wal-Mart and Target were substantially in the Innerwear and Activewear segments and represented 18% and 13% of total sales in 2017 , respectively. Sales to Wal-Mart and Target represented 20% and 15% of total net sales in 2016 , respectively. Sales to Wal-Mart and Target represented 23% and 15% of total net sales in 2015 , respectively. Worldwide sales by product category for Innerwear and Activewear were $4,257,877 and $2,213,533 , respectively, in 2017 . Worldwide sales by product category for Innerwear and Activewear were $4,112,598 and $1,915,601 , respectively, in 2016 . Worldwide sales by product category for Innerwear and Activewear were $3,973,645 and $1,757,904 , respectively, in 2015 . |
Geographic Area Information
Geographic Area Information | 12 Months Ended |
Dec. 30, 2017 | |
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Geographic Area Information | Geographic Area Information Years Ended or at December 30, December 31, January 2, Sales Property, Net Sales Property, Net Sales Property, Net United States $ 4,417,885 $ 130,029 $ 4,489,593 $ 134,119 $ 4,594,665 $ 130,235 Australia 592,285 50,671 278,298 41,970 23,073 579 France 283,959 20,937 290,698 18,776 301,010 20,777 Italy 275,047 16,941 174,095 15,405 93,667 16,785 Japan 203,521 1,547 182,307 942 119,693 867 Germany 120,236 14,102 110,748 13,649 104,311 15,573 Europe (Other) 112,408 44,608 96,381 39,189 103,911 17,242 Canada 79,420 1,289 90,585 1,093 105,869 1,196 Spain 67,475 8,453 65,207 6,818 58,824 7,464 Mexico 64,175 1,591 60,362 1,453 66,197 1,809 United Kingdom 55,290 784 32,409 825 29,484 942 Brazil 34,617 4,444 28,829 5,051 31,934 4,322 China 8,324 2,350 5,338 97,194 5,016 106,575 Central America and the Caribbean Basin 1,844 276,547 2,846 269,996 4,180 276,402 Other 154,924 49,698 120,503 45,984 89,715 49,694 $ 6,471,410 $ 623,991 $ 6,028,199 $ 692,464 $ 5,731,549 $ 650,462 The net sales by geographic region are attributed by customer location. The property by geographic region includes assets held and used, which are recognized within the “Property, net” line of the Consolidated Balance Sheet. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 30, 2017 | |
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Quarterly Financial Data | Quarterly Financial Data (Unaudited) First Second Third Fourth Total 2017 Net sales $ 1,380,355 $ 1,646,610 $ 1,799,270 $ 1,645,175 $ 6,471,410 Gross profit 539,531 645,902 678,457 626,661 2,490,551 Income (loss) from continuing operations 73,082 172,164 203,356 (384,611 ) 63,991 Income (loss) from discontinued operations (2,465 ) 368 — — (2,097 ) Net income (loss) 70,617 172,532 203,356 (384,611 ) 61,894 Earnings (loss) per share - basic: Continuing operations 0.20 0.47 0.56 (1.06 ) 0.17 Discontinuing operations (0.01 ) — — — (0.01 ) Earnings (loss) per share - diluted: Continuing operations 0.19 0.47 0.55 (1.06 ) 0.17 Discontinuing operations (0.01 ) — — — (0.01 ) 2016 Net sales $ 1,219,140 $ 1,472,731 $ 1,761,019 $ 1,575,309 $ 6,028,199 Gross profit 457,256 557,291 649,366 612,135 2,276,048 Income from continuing operations 80,269 128,143 172,790 155,725 536,927 Income from discontinued operations — — 1,068 1,387 2,455 Net income 80,269 128,143 173,858 157,112 539,382 Earnings per share - basic: Continuing operations 0.21 0.34 0.46 0.41 1.41 Discontinuing operations — — — — 0.01 Earnings per share - diluted: Continuing operations 0.21 0.34 0.45 0.41 1.40 Discontinuing operations — — — — 0.01 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from these estimates. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. |
Sales Recognition and Incentives | Sales Recognition and Incentives The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured, which occurs primarily upon shipment. The Company records a sales reduction for returns and allowances based upon historical return experience. The Company earns royalty revenues through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensee. The Company offers a variety of sales incentives to resellers and consumers of its products, and the policies regarding the recognition and display of these incentives within the Consolidated Statements of Income are as follows: Discounts, Coupons, and Rebates The Company recognizes the cost of these incentives at the later of the date at which the related sale is recognized or the date at which the incentive is offered. The cost of these incentives is estimated using a number of factors, including historical utilization and redemption rates. All cash incentives of this type are included in the determination of net sales. The Company includes incentives offered in the form of free products in the determination of cost of sales. Volume-Based Incentives These incentives typically involve rebates or refunds of cash that are redeemable only if the reseller completes a specified number of sales transactions. Under these incentive programs, the Company estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. The Company includes these amounts in the determination of net sales. Cooperative Advertising Under these arrangements, the Company agrees to reimburse the reseller for a portion of the costs incurred by the reseller to advertise and promote certain of the Company’s products. The Company recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity first takes place. The Company includes these amounts in the determination of net sales. Fixtures and Racks Store fixtures and racks are periodically used by resellers to display Company products. The Company expenses the cost of these fixtures and racks in the period in which they are delivered to the resellers. The Company includes the costs of fixtures and racks incurred by resellers and charged back to the Company in the determination of net sales. Fixtures and racks purchased by the Company and provided to resellers are included in selling, general and administrative expenses. |
Advertising Expense | Advertising Expense Advertising costs, which include the development and production of advertising materials and the communication of these materials through various forms of media, are expensed in the period the advertising first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” caption in the Consolidated Statements of Income of $157,369 , $168,701 and $181,956 in 2017 , 2016 and 2015 , respectively. |
Shipping and Handling Costs | Shipping and Handling Costs Revenue received for shipping and handling costs is included in net sales and was $19,738 , $19,446 and $19,710 in 2017 , 2016 and 2015 , respectively. Shipping costs, which comprise payments to third party shippers, and handling costs, which consist of warehousing costs in the Company’s various distribution facilities, were $376,449 , $324,845 and $332,678 in 2017 , 2016 and 2015 , respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. |
Catalog Expenses | Catalog Expenses The Company incurs expenses for printing catalogs for products to aid in the Company’s sales efforts. The Company initially records these expenses as a prepaid item and charges it against selling, general and administrative expenses over time as the catalog is used. Expenses are recognized at a rate that approximates historical experience with regard to the timing and amount of sales attributable to a catalog distribution. The Company discontinued its catalog business during 2016. |
Research and Development | Research and Development Research and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Research and development includes expenditures for new product, technological improvements for existing products and process innovation, which primarily consist of salaries, consulting and supplies attributable to time spent on research and development activities. Additional costs include depreciation and maintenance for research and development equipment and facilities. Research and development expense was $65,457 , $70,096 and $62,324 in 2017 , 2016 and 2015 , respectively. |
Defined Contribution Benefit Plans | Defined Contribution Benefit Plans The Company sponsors 401(k) plans as well as other defined contribution benefit plans. Expense for these plans was $21,251 , $26,434 and $21,972 in 2017 , 2016 and 2015 , respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the time of purchase are considered to be cash equivalents. |
Accounts Receivable Valuation | Accounts Receivable Valuation Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable portfolio determined on the basis of historical experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. |
Inventory Valuation | Inventory Valuation Inventories are stated at the estimated lower of cost or market. Cost is determined by the first-in, first-out, or “FIFO,” method for inventories. Obsolete, damaged, and excess inventory is carried at the net realizable value, which is determined by assessing historical recovery rates, current market conditions and future marketing and sales plans. Rebates, discounts and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item, and are therefore reflected in cost of sales when the related inventory item is sold. |
Property | Property Property is stated at historical cost and depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Machinery and equipment is depreciated over periods ranging from three to 15 years and buildings and building improvements over periods of up to 40 years. A change in the depreciable life is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods. Additions and improvements that substantially extend the useful life of a particular asset and interest costs incurred during the construction period of major properties are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or disposition of an asset, the cost and related accumulated depreciation are removed from the accounts. Property is tested for recoverability whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Such events include significant adverse changes in the business climate, several periods of operating or cash flow losses, forecasted continuing losses or a current expectation that an asset or an asset group will be disposed of before the end of its useful life. Recoverability of property is evaluated by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the estimated fair value. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized impairment loss is not permitted under U.S. GAAP. |
Trademarks and Other Identifiable Intangible Assets | Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, licensing agreements, customer and distributor relationships and computer software. Identifiable intangible assets with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of a finite-lived intangible asset is based upon a number of factors, including the effects of demand, competition, expected changes in distribution channels and the level of maintenance expenditures required to obtain future cash flows. Trademarks with finite lives are being amortized over periods ranging from ten to 12 years , license agreements are being amortized over periods ranging from three to 17 years , customer and distributor relationships are being amortized over periods ranging from two to 15 years and computer software and other intangibles are being amortized over periods ranging from one to seven years . Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used in evaluating elements of property. Identifiable intangible assets not subject to amortization are assessed for impairment at least annually, as of the first day of the third fiscal quarter, and as triggering events occur. The impairment test for identifiable intangible assets not subject to amortization consists of comparing the fair value of the intangible asset to its carrying amount. If the carrying value exceeds the fair value of the asset, an impairment loss is recognized in an amount equal to such excess. In assessing fair value, management relies on a number of factors to discount anticipated future cash flows including operating results, business plans and present value techniques. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of intangible asset impairment. The Company capitalizes internal software development costs incurred during the application development stage, which include the actual costs to purchase software from vendors and generally include personnel and related costs for employees who were directly associated with the enhancement and implementation of purchased computer software. Additions to computer software are included in purchases of property, plant and equipment in the Consolidated Statements of Cash Flows. |
Goodwill | Goodwill Goodwill is the amount by which the purchase price exceeds the fair value of the assets acquired and liabilities assumed in a business combination. When a business combination is completed, the assets acquired and liabilities assumed are assigned to the reporting unit or units of the Company given responsibility for managing, controlling and generating returns on these assets and liabilities. In many instances, all of the acquired assets and assumed liabilities are assigned to a single reporting unit and in these cases all of the goodwill is assigned to the same reporting unit. In those situations in which the acquired assets and liabilities are allocated to more than one reporting unit, the goodwill to be assigned to each reporting unit is determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events occur. The Company’s annual measurement date is the first day of the third fiscal quarter. In evaluating the recoverability of goodwill, the Company estimates the fair value of its reporting units and compares it to the carrying value. If the carrying value of the reporting unit exceeds its fair value, the next step of the process involves comparing the implied fair value to the carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to such excess. No impairment of goodwill was identified as a result of the testing conducted in 2017 . In estimating the fair values of the reporting units, management relies on a number of factors to discount anticipated future cash flows including operating results, business plans and present value techniques. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. |
Insurance Reserves | Insurance Reserves The Company is self-insured for property, workers’ compensation, medical and other casualty programs up to certain stop-loss limits. Undiscounted liabilities for self-insured exposures are accrued at the present value of the expected aggregate losses below those limits and are based on a number of assumptions, including historical trends, actuarial assumptions and economic conditions. |
Stock-Based Compensation | Stock-Based Compensation The Company established the Hanesbrands Inc. Omnibus Incentive Plan (As Amended and Restated), (the “Omnibus Incentive Plan”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retention of employees. The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards. |
Income Taxes | Income Taxes Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. Given continuing losses in certain jurisdictions in which the Company operates on a separate return basis, a valuation allowance has been established for the deferred tax assets in these specific locations. The Company periodically estimates the probable tax obligations using historical experience in tax jurisdictions and informed judgment. There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. Income tax expense is adjusted in the period in which these events occur, and these adjustments are included in the Company’s Consolidated Statements of Income. If such changes take place, there is a risk that the Company’s effective tax rate may increase or decrease in any period. A company must 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. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The recently enacted Tax Cuts and Jobs Act (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system that includes a one-time transition tax on deemed repatriated earnings foreign subsidiaries. The Company has estimated the impact of the newly enacted law incorporating assumptions made based upon its current interpretation of the Tax Act. In addition, the Tax Act implemented a new minimum tax on global intangible low-taxed income (“GILTI”). A company can elect an accounting policy to account for GILTI in either of the following ways: • As a period charge in the future period the tax arises; or • As part of deferred taxes related to the investment or subsidiary. The Company is currently in the process of analyzing this provision and, as a result, is not yet able to reasonably estimate its effect. Therefore, the Company has not made any adjustments related to potential GILTI tax in its consolidated financial statements and has not made a policy decision regarding whether to record deferred tax on GILTI. Due to the complexities involved in accounting for the enactment of the Tax Act, SEC Staff Accounting Bulletin 118 (“SAB 118”) allows companies to record provisional estimates of the impacts of the Tax Act during a measurement period which is similar to the measurement period of up to one year from the enactment which is similar to the measurement period used when accounting for business combinations. The Company will continue to assess the impact of the recently enacted tax law on its consolidated financial statements. |
Financial Instruments | Financial Instruments The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. The use of these financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. Depending on the nature of the underlying risk being hedged, these financial instruments are either designated as cash flow hedges or are economic hedges against changes in the value of the hedged item and therefore not designated as hedges for accounting purposes. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. On the date the derivative is entered into, the Company determines whether the derivative meets the criteria for cash flow hedge accounting treatment or whether the financial instrument is serving as an economic hedge against changes in the value of the hedged item and therefore is not designated as a hedge for accounting purposes. The accounting for changes in fair value of the derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company formally documents its hedge relationships, including identifying the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments or forecasted transactions. The Company also formally assesses, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value and classified as current or noncurrent based on the derivatives’ maturity dates. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. Cash flows hedges are classified in the same category as the item being hedged, and cash flows from derivative contracts not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties to the Company’s derivative contracts. Risk of nonperformance by counterparties is mitigated by dealing with highly rated counterparties and by diversifying across counterparties. Cash Flow Hedges The effective portion of the change in the fair value of a derivative that is designated as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line of the Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in AOCI is reported on the same line in the Consolidated Statements of Income as the hedged item. In addition, both the fair value of changes excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Derivative Contracts Not Designated as Hedges For derivative contracts not designated as hedges, changes in fair value are reported in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. These contracts are recorded at fair value when the hedged item is recorded as an asset or liability and then are revalued each accounting period. |
Assets and Liabilities Acquired in Business Combinations | Assets and Liabilities Acquired in Business Combinations Business combinations are accounted for using the purchase method, which requires the Company to allocate the cost of an acquired business to the acquired assets and assumed liabilities based on their estimated fair values at the acquisition date. The Company recognizes the excess of an acquired business’ cost over the fair value of acquired assets and assumed liabilities as goodwill. Fair values are determined using the income approach based on market participant assumptions focusing on future cash flow projections and accepted industry standards. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Fair Value Measurement In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820)”, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient, and requires separate disclosure of those investments instead. These disclosures were effective for the Company in the first quarter of 2016. The adoption of the new accounting rules did not have an impact on the Company’s financial condition, results of operations or cash flows, however management did adopt the related applicable disclosures. Refer to Note, “Fair Value of Assets and Liabilities”. Inventory In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory”, which require inventory to be recorded at the lower of cost or net realizable value. The new standard was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows. Hedge Accounting In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, which clarifies that a change in the counterparty to a derivative contract, in and of itself, does not require the dedesignation of a hedging relationship. The new standard, which could be adopted prospectively or on a modified retrospective basis, was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows. Also in March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”, which clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The new standard, which is applied on a modified prospective basis, was effective for the Company in the first quarter of 2017. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations and cash flows. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The new standard will be effective for the Company in the first quarter of 2018 and can be applied using a modified retrospective or full retrospective method. The Company has established an implementation team consisting of finance, accounting and front-end business partners to analyze the impact of the guidance across all of its revenue sources. The Company has evaluated the new standard against its existing accounting policies and practices, including reviewing standard purchase orders, invoices, shipping terms, conducting questionnaires with its global team and reviewing contracts with customers. The Company has not identified any information that would indicate that the new guidance will have a material impact on the Company’s consolidated financial statements. The Company expects to have enhanced disclosures related to disaggregation of revenue sources and accounting policies. The Company expects to adopt the new standard in the first quarter of 2018 using the modified retrospective transition method. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. Issues addressed in the new guidance that are relevant to the Company include debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and beneficial interests in securitization transactions. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s cash flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The update eliminates the exception for an intra-entity transfer of an asset other than inventory, which aligns the recognition of income tax consequences for inter-entity transfers of assets other than inventory by requiring the recognition of current and deferred income taxes resulting from an intra-entity transfer of such an asset when the transfer occurs rather than when it is sold to an external party. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new rules will be effective for the Company in the first quarter of 2018. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. The new rules require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Stock Compensation In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The new rules provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new rules, an entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award immediately before the original award is modified. The new rules will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Lease Accounting In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The new rules expand the hedging strategies that qualify for hedge accounting, including contractually-specified price components of a commodity purchase or sale, hedges of the benchmark rate component of the contractual coupon cash flows of fixed-rate assets and liabilities, hedges of the portion of a closed portfolio of prepayable assets and partial-term hedges of fixed-rate assets and liabilities. The new rules also allow additional time to complete hedge effectiveness testing and allow qualitative assessments subsequent to initial quantitative tests if there is a supportable expectation that the hedge will remain highly effective. The new rules will be effective for the Company in the first quarter of 2019, with early adoption permitted. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The new rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2020. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows. |
Reclassifications | Reclassifications Certain prior year amounts in the Consolidated Balance Sheets and notes to the Consolidated Financial Statements, none of which are material, have been reclassified to conform with the current year presentation. These classifications within the statements had no impact on the Company’s results of operations. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Hanes Australasia | |
Business Acquisition [Line Items] | |
Acquired assets and assumed liabilities at date of acquisition | Cash and cash equivalents $ 54,294 Accounts receivable, net 36,019 Inventories 104,806 Other current assets 16,588 Current assets of discontinued operations 50,839 Property, net 34,835 Trademarks and other identifiable intangibles 506,170 Deferred tax assets and other noncurrent assets 23,687 Total assets acquired 827,238 Accounts payable 89,309 Accrued liabilities and other 24,912 Current liabilities of discontinued operations 14,564 Long-term debt 41,976 Deferred tax liabilities and other noncurrent liabilities 16,320 Total liabilities assumed 187,081 Net assets acquired 640,157 Goodwill 160,714 Purchase price $ 800,871 |
Champion Europe | |
Business Acquisition [Line Items] | |
Acquired assets and assumed liabilities at date of acquisition | Cash and cash equivalents $ 14,581 Trade accounts receivable, net 27,926 Inventories 53,816 Other current assets 5,976 Property, net 24,605 Trademarks and other identifiable intangibles 135,277 Deferred tax assets and other noncurrent assets 3,777 Total assets acquired 265,958 Accounts payable 66,594 Accrued liabilities and other (including contingent consideration) 60,887 Notes payable 27,748 Deferred tax liabilities and other noncurrent liabilities 20,282 Total liabilities assumed and contingent consideration 175,511 Net assets acquired 90,447 Goodwill 109,830 Initial consideration paid 200,277 Estimated contingent consideration 45,277 Total purchase price $ 245,554 |
Hanes Australasia and Champion Europe, Combined | |
Business Acquisition [Line Items] | |
Unaudited pro forma results of operations | Pro forma operating results for the year ended January 2, 2016 include expenses totaling $9,560 , for acquisition-related adjustments primarily related to inventory and stock compensation. Years Ended December 31, January 2, Net sales $ 6,434,928 $ 6,480,153 Net income from continuing operations 617,261 437,849 Earnings per share from continuing operations: Basic $ 1.62 $ 1.09 Diluted 1.61 1.08 |
Knights Apparel | |
Business Acquisition [Line Items] | |
Unaudited pro forma results of operations | Unaudited pro forma results of operations for the Company are presented below for year-to-date assuming that the 2015 acquisition of Knights Apparel had occurred on December 29, 2013. Year Ended January 2, Net sales $ 5,753,706 Net income from continuing operations 433,636 Earnings per share from continuing operations: Basic $ 1.08 Diluted 1.07 |
Discontinued Operations (Tables
Discontinued Operations (Tables) - Tontine Pillow and Dunlop Flooring [Member] | 12 Months Ended |
Dec. 30, 2017 | |
Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued operations | The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows: Years Ended December 30, December 31, Net sales $ 6,865 $ 34,698 Cost of sales 4,507 22,554 Gross profit 2,358 12,144 Selling, general and administrative expenses 3,729 8,632 Operating profit (loss) (1,371 ) 3,512 Other expenses 303 1,106 Net loss on disposal of business 242 — Income (loss) from discontinued operations before income tax expense (1,916 ) 2,406 Income tax expense (benefit) 181 (49 ) Net income (loss) from discontinued operations, net of tax $ (2,097 ) $ 2,455 |
Discontinued Operations, Held-for-sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disclosure of long lived assets held-for-sale | Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheet as of December 31, 2016 consisted of the following: Trade accounts receivable, net $ 10,139 Inventories 10,691 Property, net 3,630 Trademarks and other identifiable intangibles, net 14,929 Goodwill 10,479 Accounts payable and accrued liabilities (8,257 ) Net other assets and liabilities (5,180 ) Net assets of discontinued operations $ 36,431 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Reconciliation of Basic to Diluted Weighted Average Shares | The reconciliation of basic to diluted weighted average shares outstanding is as follows: Years Ended December 30, December 31, January 2, Basic weighted average shares outstanding 367,680 381,782 399,891 Effect of potentially dilutive securities: Stock options 1,435 1,983 2,719 Restricted stock units 307 756 1,009 Employee stock purchase plan and other 4 45 40 Diluted weighted average shares outstanding 369,426 384,566 403,659 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Summary of Changes in Stock Options Outstanding to Company's Employees Under Hanesbrands Omnibus Incentive Plan | A summary of the changes in stock options outstanding to the Company’s employees under the Omnibus Incentive Plan is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at January 3, 2015 7,292 $ 5.92 $ 158,469 3.40 Exercised (4,540 ) 6.10 Options outstanding at January 2, 2016 2,752 $ 5.62 $ 65,531 2.88 Exercised (477 ) 5.90 Options outstanding at December 31, 2016 2,275 $ 5.56 $ 36,438 2.20 Exercised (736 ) 6.22 Options outstanding and exercisable at December 30, 2017 1,539 $ 5.24 $ 24,108 1.76 |
Summary of Changes in Restricted Stock Unit Awards Outstanding Under Hanesbrands Omnibus Incentive Plan | A summary of the changes in the restricted stock unit awards outstanding under the Omnibus Incentive Plan is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at January 3, 2015 3,418 $ 16.12 $ 94,521 1.71 Granted — non-performanced based 516 31.06 Granted — performanced based 828 23.50 Vested (1,816 ) 11.45 Forfeited (113 ) 16.87 Nonvested share units outstanding at January 2, 2016 2,833 $ 23.99 $ 83,381 1.78 Granted — non-performanced based 748 23.44 Granted — performanced based 511 23.64 Vested (1,525 ) 19.47 Forfeited (47 ) 23.38 Nonvested share units outstanding at December 31, 2016 2,520 $ 26.46 $ 54,356 2.11 Granted — non-performanced based 628 21.22 Granted — performanced based 590 23.04 Vested (991 ) 26.74 Forfeited (81 ) 26.81 Nonvested share units outstanding at December 30, 2017 2,666 $ 24.36 $ 55,741 2.00 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Allowances for Trade Accounts Receivable | The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions are as follows: Allowance Allowance (1) Total Balance at January 3, 2015 $ 8,117 $ 8,739 $ 16,856 Charged to expenses 4,656 8,675 13,331 Deductions and write-offs (7,844 ) (7,840 ) (15,684 ) Currency translation (1,180 ) (223 ) (1,403 ) Balance at January 2, 2016 $ 3,749 $ 9,351 $ 13,100 Charged to expenses 3,650 19,820 23,470 Deductions and write-offs (381 ) (16,259 ) (16,640 ) Currency translation (360 ) (844 ) (1,204 ) Balance at December 31, 2016 $ 6,658 $ 12,068 $ 18,726 Charged to expenses 6,642 16,169 22,811 Deductions and write-offs (632 ) (18,264 ) (18,896 ) Currency translation 904 2,551 3,455 Balance at December 30, 2017 $ 13,572 $ 12,524 $ 26,096 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Inventories | Inventories consisted of the following: December 30, December 31, Raw materials $ 129,287 $ 131,228 Work in process 226,659 185,066 Finished goods 1,519,044 1,524,271 $ 1,874,990 $ 1,840,565 |
Property, Net (Tables)
Property, Net (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Summary of Property | Property is summarized as follows: December 30, December 31, Land $ 45,882 $ 43,731 Buildings and improvements 486,893 566,819 Machinery and equipment 1,063,661 977,312 Construction in progress 33,922 49,887 Capital leases 7,133 4,761 1,637,491 1,642,510 Less accumulated depreciation 1,013,500 950,046 Property, net $ 623,991 $ 692,464 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Summary of Short Term Obligations | The Company had short-term revolving facilities in the following locations at December 30, 2017 and December 31, 2016 : Interest Principal Amount December 30, December 31, Europe Various $ 10,072 $ 54,772 Philippines 5.99% 1,801 1,265 Australia — — 359 $ 11,873 $ 56,396 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | The Company had the following debt at December 30, 2017 and December 31, 2016 : Interest Principal Amount December 30, December 31, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 2.99% 750,000 655,469 December 2022 Term Loan B 3.23% 500,000 318,625 December 2024 Australian Term A-1 3.23% 135,826 143,544 July 2019 Australian Term A-2 — — 143,544 July 2021 4.875% Senior Notes 4.88% 900,000 900,000 May 2026 4.625% Senior Notes 4.63% 900,000 900,000 May 2024 3.5% Senior Notes 3.50% 599,649 520,617 June 2024 European Revolving Loan Facility 1.50% 81,539 62,474 September 2018 Accounts Receivable Securitization Facility 2.31% 125,209 44,521 March 2018 Other International Debt Various 1,044 43,789 Various 3,993,267 3,732,583 Less long-term debt issuance cost 41,624 46,534 Less current maturities 249,589 178,364 $ 3,702,054 $ 3,507,685 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Intangible Assets and Related Accumulated Amortization | The primary components of the Company’s intangible assets and the related accumulated amortization are as follows: Gross Accumulated Net Book Year ended December 30, 2017: Intangible assets subject to amortization: Trademarks and brand names $ 35,498 $ 24,694 $ 10,804 Licensing agreements 103,366 42,218 61,148 Customer and distributor relationships 172,820 42,010 130,810 Computer software 116,273 83,390 32,883 Other intangibles 2,131 397 1,734 $ 430,088 $ 192,709 237,379 Intangible assets not subject to amortization: Trademarks 1,089,742 Perpetual licensing agreements and other 75,736 Net book value of intangible assets $ 1,402,857 Gross Accumulated Net Book Year ended December 31, 2016: Intangible assets subject to amortization: Trademarks and brand names $ 28,617 $ 28,607 $ 10 Licensing agreements 102,069 33,397 68,672 Customer and distributor relationships 156,340 26,153 130,187 Computer software 88,213 68,318 19,895 Other intangibles (1,498 ) (994 ) (504 ) $ 373,741 $ 155,481 218,260 Intangible assets not subject to amortization: Trademarks 999,170 Perpetual licensing agreements 68,028 Net book value of intangible assets $ 1,285,458 |
Goodwill | Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at January 2, 2016 $ 431,561 $ 289,153 $ 110,377 $ 3,224 $ 834,315 Acquisition of businesses — 2,290 285,236 — 287,526 Currency translation — — (23,301 ) — (23,301 ) Net book value at December 31, 2016 $ 431,561 $ 291,443 $ 372,312 $ 3,224 $ 1,098,540 Acquisition of businesses — 25,248 3,351 — 28,599 Segment change (24,708 ) 259 — 24,449 — Currency translation — — 39,868 — 39,868 Net book value at December 30, 2017 $ 406,853 $ 316,950 $ 415,531 $ 27,673 $ 1,167,007 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of AOCI are as follows: Cumulative Translation Adjustment Hedges Defined Benefit Plans Income Taxes Accumulated Other Comprehensive Loss Balance at January 2, 2016 $ (57,675 ) $ 6,743 $ (563,759 ) $ 219,758 $ (394,933 ) Amounts reclassified from accumulated other comprehensive loss — (3,966 ) 17,116 (5,030 ) 8,120 Current-period other comprehensive income (loss) activity (20,384 ) 10,995 (59,940 ) 20,151 (49,178 ) Balance at December 31, 2016 $ (78,059 ) $ 13,772 $ (606,583 ) $ 234,879 $ (435,991 ) Amounts reclassified from accumulated other comprehensive loss — (1,825 ) 19,062 (7,095 ) 10,142 Current-period other comprehensive income (loss) activity 34,554 (37,408 ) (26,479 ) 15,976 (13,357 ) Balance at December 30, 2017 $ (43,505 ) $ (25,461 ) $ (614,000 ) $ 243,760 $ (439,206 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The Company had the following reclassifications out of AOCI: Component of AOCI Location of Reclassification into Income Amount of Reclassification from AOCI December 30, December 31, January 2, Loss on foreign exchange contracts Cost of sales $ (1,825 ) $ (3,966 ) $ (11,968 ) Income tax 225 1,543 4,655 Net of tax $ (1,600 ) $ (2,423 ) $ (7,313 ) Amortization of deferred actuarial loss and prior service cost Selling, general and administrative expenses $ 19,062 $ 17,116 $ 14,573 Income tax (7,320 ) (6,573 ) (5,669 ) Net of tax $ 11,742 $ 10,543 $ 8,904 Total reclassifications $ 10,142 $ 8,120 $ 1,591 |
Financial Instruments and Ris43
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Fair Values of Derivative Instruments | The fair values of derivative financial instruments related to forward foreign exchange contracts recognized in the Consolidated Balance Sheets of the Company were as follows: Fair Value Balance Sheet Location December 30, December 31, Hedges Other current assets $ 1,464 $ 16,729 Non-hedges Other current assets 136 4,363 Total derivative assets $ 1,600 $ 21,092 Hedges Accrued liabilities $ (14,750 ) $ (207 ) Non-hedges Accrued liabilities (7,818 ) (172 ) Total derivative liabilities $ (22,568 ) $ (379 ) Net derivative asset (liability) $ (20,968 ) $ 20,713 |
Effect of Cash Flow Hedge Derivative Instruments | The effect of cash flow hedge derivative instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Loss is as follows: Amount of Gain (Loss) Recognized in December 30, December 31, January 2, Foreign exchange contracts $ (37,408 ) $ 10,995 $ 13,423 Location of Gain Reclassified from Amount of Gain Reclassified from December 30, December 31, January 2, Foreign exchange contracts Cost of sales $ 1,825 $ 3,966 $ 11,968 |
Effect of Mark to Market Hedge Derivative Instruments on Condensed Consolidated Statements of Income | The effect of derivative contracts not designated as hedges on the Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in December 30, December 31, January 2, Foreign exchange contracts Selling, general and $ 114 $ 12,222 $ (9,271 ) |
Fair Value of Assets and Liab44
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis. Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 172,558 $ 172,558 $ — $ — Foreign equity securities 40,920 40,920 — — Debt securities 52,331 52,331 — — Cash and other 2,595 2,595 — — Insurance contracts 2,194 — 2,194 — Total plan assets in the fair value hierarchy 270,598 268,404 2,194 — Plan assets measured at net asset value: (1) Hedge fund of funds 328,511 Foreign equity securities 109,525 Debt securities 102,531 Real estate 42,996 Commodities 18,525 Total plan assets measured at net asset value 602,088 Total plan assets 872,686 Derivative contracts: Foreign exchange derivative contracts 1,600 — 1,600 — Foreign exchange derivative contracts (22,568 ) — (22,568 ) — (20,968 ) — (20,968 ) — Deferred compensation plan liability (52,758 ) — (52,758 ) — Total $ 798,960 $ 268,404 $ (71,532 ) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 147,702 $ 147,702 $ — $ — Foreign equity securities 33,511 33,511 — — Debt securities 49,128 49,128 — — Cash and other 2,234 2,234 — — Insurance contracts 3,334 — 3,334 — Total plan assets in the fair value hierarchy 235,909 232,575 3,334 — Plan assets measured at net asset value: (1) Hedge fund of funds 326,298 U.S. equity securities (2) 19,848 Foreign equity securities (2) 88,933 Debt securities (2) 95,634 Real estate 42,869 Commodities (2) 17,678 Total plan assets measured at net asset value 591,260 Total plan assets 827,169 Derivative contracts: Foreign exchange derivative contracts 21,092 — 21,092 — Foreign exchange derivative contracts (379 ) — (379 ) — 20,713 — 20,713 — Champion Europe contingent consideration (3) (42,378 ) — — (42,378 ) Deferred compensation plan liability (51,868 ) — (51,868 ) — Total $ 753,636 $ 232,575 $ (27,821 ) $ (42,378 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (2) The Company’s presentation of fair value hierarchy table has been revised to remove certain defined benefit pension plan assets from the fair value hierarchy to reflect the use of the net asset value as a practical expedient to value these assets in order to conform with ASU 2015-07, “Fair Value Measurement (Topic 820).” This change is not material to the consolidated financial statements and does not have an impact on the Company’s financial condition, results of operations or cash flows. (3) The fair value of the Champion Europe contingent consideration had not changed since the date of acquisition, other than from the foreign exchange translation impact between periods. |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss | The components of net periodic benefit cost and other amounts recognized in other comprehensive income of the Company’s noncontributory defined benefit pension plans were as follows: Years Ended December 30, December 31, January 2, Service cost $ 2,216 $ 1,856 $ 2,478 Interest cost 40,830 42,061 49,202 Expected return on assets (41,780 ) (47,621 ) (55,127 ) Curtailments 154 (489 ) — Settlement cost 23 115 25 Amortization of: Prior service cost 9 9 22 Net actuarial loss 19,053 17,052 14,551 Net periodic benefit cost $ 20,505 $ 12,983 $ 11,151 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss $ 15,186 $ 41,921 $ 3,813 Prior service credit (cost) (380 ) (9 ) 22 Total loss recognized in other comprehensive income 14,806 41,912 3,835 Total recognized in net periodic benefit cost and other comprehensive income $ 35,311 $ 54,895 $ 14,986 |
Funded Status of Company's Defined Benefit Pension Plans | The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: December 30, December 31, Benefit obligation: Beginning of year $ 1,197,189 $ 1,172,267 Service cost 2,216 1,856 Interest cost 40,830 42,061 Plan amendment (370 ) — Benefits paid (57,464 ) (56,576 ) Curtailments 187 (1,053 ) Settlements (688 ) (2,360 ) Impact of exchange rate change 9,453 (1,976 ) Business combination — 4,547 Actuarial loss 86,414 36,671 Other (45 ) 1,752 End of year 1,277,722 1,197,189 Fair value of plan assets: Beginning of year 827,169 809,217 Actual return on plan assets 94,957 24,758 Employer contributions 6,376 47,203 Benefits paid (57,464 ) (56,576 ) Settlements (688 ) (2,360 ) Business combination — 4,776 Impact of exchange rate change 2,381 178 Other (45 ) (27 ) End of year 872,686 827,169 Funded status $ (405,036 ) $ (370,020 ) |
Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligations in Excess of Plan Assets | The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: December 30, December 31, Benefit obligation $ 1,277,722 $ 1,197,189 Plans with benefit obligation in excess of plan assets: Benefit obligation 1,245,844 1,167,871 Fair value of plan assets 842,168 799,191 |
Amounts Recognized in Company's Consolidated Balance Sheets | Amounts recognized in the Company’s Consolidated Balance Sheets consist of: December 30, December 31, Current liabilities $ (3,663 ) $ (3,605 ) Noncurrent liabilities (401,749 ) (366,822 ) Accumulated other comprehensive loss (618,416 ) (603,610 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of: December 30, December 31, Prior service cost $ (163 ) $ 216 Actuarial loss 618,579 603,394 $ 618,416 $ 603,610 |
Weighted Average Actuarial Assumptions Used in Measuring Net Periodic Benefit Cost and Plan Obligation | The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows: December 30, December 31, January 2, Net periodic benefit cost: Discount rate 4.15 % 4.43 % 4.43 % Long-term rate of return on plan assets 5.21 5.80 5.61 Rate of compensation increase (1) 3.84 3.51 3.51 Plan obligations: Discount rate 3.60 % 4.15 % 4.04 % Rate of compensation increase (1) 4.40 3.84 3.51 (1) The compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at December 30, 2017 , December 31, 2016 and January 2, 2016 . |
Allocation of Pension Plan Assets | The allocation of pension plan assets as of the respective period end measurement dates is as follows: December 30, December 31, Asset category: Hedge fund of funds 38 % 39 % U.S. equity securities 20 20 Debt securities 18 17 Foreign equity securities 17 15 Real estate 5 5 Commodities 2 2 Insurance contracts — 1 Cash and other — 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Provision for Income Tax Computed by Applying U.S. Statutory Rate to Income Before Taxes as Reconciled to Actual Provisions | The provision for income tax computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual provisions were: Years Ended December 30, December 31, January 2, Income before income tax expense: Domestic (6.6 )% (10.2 )% 5.6 % Foreign 106.6 110.2 94.4 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 35.0 % 35.0 % 35.0 % State income tax 0.2 (0.7 ) 1.1 Tax on remittance of foreign earnings 0.5 9.9 9.1 Tax on remittance of foreign earnings due to U.S. tax reform 67.0 N/A N/A Revaluation of net deferred tax assets due to U.S. tax reform 14.3 N/A N/A Foreign taxes less than U.S. statutory rate (27.4 ) (38.5 ) (30.8 ) Employee benefits (0.2 ) (0.7 ) 0.4 Change in valuation allowance 0.1 1.2 2.6 Increase in unrecognized tax benefits 1.8 0.6 0.1 Release of unrecognized tax benefit reserves (0.9 ) (0.4 ) (9.8 ) State tax rate change 0.1 0.6 2.3 Federal and state provision to return (2.6 ) (0.7 ) (0.4 ) Other, net 0.2 (0.3 ) (0.1 ) Taxes at effective worldwide tax rates 88.1 % 6.0 % 9.5 % |
Current and Deferred Tax Provisions (Benefits) | Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended December 30, 2017 Domestic $ 154,751 $ 260,393 $ 415,144 Foreign 10,603 (15,098 ) (4,495 ) State 68,857 (6,227 ) 62,630 $ 234,211 $ 239,068 $ 473,279 Year ended December 31, 2016 Domestic $ 2,768 $ 34,590 $ 37,358 Foreign 38,257 (34,232 ) 4,025 State 2,083 (9,194 ) (7,111 ) $ 43,108 $ (8,836 ) $ 34,272 Year ended January 2, 2016 Domestic $ (2,294 ) $ 9,437 $ 7,143 Foreign 32,067 (10,235 ) 21,832 State 4,395 11,648 16,043 $ 34,168 $ 10,850 $ 45,018 |
Cash Tax Payments Made by Company Primarily in Foreign Jurisdictions | Years Ended December 30, December 31, January 2, Cash payments for income taxes $ 57,882 $ 39,655 $ 23,045 |
Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities at the respective year-ends were as follows: December 30, December 31, Deferred tax assets: Nondeductible reserves $ 1,859 $ 1,962 Inventories 57,857 123,507 Property and equipment — 3,322 Bad debt allowance 7,363 6,965 Accrued expenses 14,399 20,351 Employee benefits 143,970 181,148 Tax credits 10,140 45,783 Net operating loss and other tax carryforwards 142,064 210,284 Derivatives 3,305 — Other 17,305 20,355 Gross deferred tax assets 398,262 613,677 Less valuation allowances (72,602 ) (67,451 ) Deferred tax assets 325,660 546,226 Deferred tax liabilities: Property and equipment 4,455 — Derivatives — 5,103 Intangibles 120,033 121,674 Prepaids 3,932 5,728 Deferred tax liabilities 128,420 132,505 Net deferred tax assets $ 197,240 $ 413,721 |
Net Operating Loss Carryforwards | At December 30, 2017 , the Company has total net operating loss carryforwards of approximately $324,833 for foreign jurisdictions, which will expire as follows: Fiscal Year: 2018 $ 8,671 2019 23,809 2020 4,435 2021 6,326 2022 2,676 Thereafter 278,916 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at January 2, 2016 (gross balance of $20,085) $ 19,780 Additions based on tax positions related to the current year 4,648 Additions for tax positions of prior years 106 Reductions for tax positions of prior years (4,838 ) Balance at December 31, 2016 (gross balance of $20,688) $ 19,696 Additions based on tax positions related to the current year 7,902 Additions for tax positions of prior years 36 Reductions for tax positions of prior years (3,602 ) Balance at December 30, 2017 (gross balance of $26,175) $ 24,032 |
Summary of changes in valuation allowance | The changes in the Company’s valuation allowance for deferred tax assets are as follows: January 3, 2015 $ 43,757 Charge to expenses 12,224 Charged to other accounts (1) 5,377 January 2, 2016 $ 61,358 Charge to expenses 6,859 Charged to other accounts (1) (766 ) December 31, 2016 $ 67,451 Charge to expenses 729 Charged to other accounts (1) 4,422 December 30, 2017 $ 72,602 (1) Charges to other accounts include the effects of foreign currency translation and purchase accounting adjustments. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Net Sales | Years Ended December 30, December 31, January 2, Net sales: Innerwear $ 2,462,876 $ 2,543,717 $ 2,609,402 Activewear 1,654,278 1,601,108 1,605,423 International 2,054,664 1,531,913 1,132,637 Other 299,592 351,461 384,087 Total net sales $ 6,471,410 $ 6,028,199 $ 5,731,549 |
Segment Operating Profit | Years Ended December 30, December 31, January 2, Segment operating profit: Innerwear $ 528,038 $ 563,905 $ 596,634 Activewear 227,589 224,658 245,563 International 261,411 179,917 105,515 Other 23,364 32,801 43,582 Total segment operating profit 1,040,402 1,001,281 991,294 Items not included in segment operating profit: General corporate expenses (89,690 ) (64,995 ) (106,379 ) Acquisition, integration and other action-related charges (192,752 ) (138,519 ) (266,060 ) Amortization of intangibles (34,892 ) (22,118 ) (23,737 ) Total operating profit 723,068 775,649 595,118 Other expenses (11,363 ) (51,758 ) (3,210 ) Interest expense, net (174,435 ) (152,692 ) (118,035 ) Income from continuing operations before income tax expense $ 537,270 $ 571,199 $ 473,873 |
Assets | December 30, December 31, Assets: Innerwear $ 1,578,023 $ 1,604,088 Activewear 872,132 874,006 International 1,275,838 1,113,972 Other 151,980 160,475 3,877,973 3,752,541 Current assets of discontinued operations — 45,897 Corporate (1) 3,016,802 3,132,042 Total assets $ 6,894,775 $ 6,930,480 |
Depreciation and Amortization Expense | Years Ended December 30, December 31, January 2, Depreciation and amortization expense: Innerwear $ 32,000 $ 36,591 $ 38,136 Activewear 19,485 19,196 21,626 International 30,219 18,694 13,201 Other 5,891 6,576 7,203 87,595 81,057 80,166 Corporate 34,892 22,118 23,737 Total depreciation and amortization expense $ 122,487 $ 103,175 $ 103,903 |
Additions to Long-Lived Assets | Years Ended December 30, December 31, January 2, Additions to property, plant and equipment: Innerwear $ 21,427 $ 28,078 $ 43,170 Activewear 11,263 11,518 22,331 International 31,127 23,520 18,022 Other 3,455 4,353 9,815 67,272 67,469 93,338 Corporate 19,736 15,930 6,037 Total additions to long-lived assets $ 87,008 $ 83,399 $ 99,375 |
Geographic Area Information (Ta
Geographic Area Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Sales and Long Lived Assets by Geographical Area | Geographic Area Information Years Ended or at December 30, December 31, January 2, Sales Property, Net Sales Property, Net Sales Property, Net United States $ 4,417,885 $ 130,029 $ 4,489,593 $ 134,119 $ 4,594,665 $ 130,235 Australia 592,285 50,671 278,298 41,970 23,073 579 France 283,959 20,937 290,698 18,776 301,010 20,777 Italy 275,047 16,941 174,095 15,405 93,667 16,785 Japan 203,521 1,547 182,307 942 119,693 867 Germany 120,236 14,102 110,748 13,649 104,311 15,573 Europe (Other) 112,408 44,608 96,381 39,189 103,911 17,242 Canada 79,420 1,289 90,585 1,093 105,869 1,196 Spain 67,475 8,453 65,207 6,818 58,824 7,464 Mexico 64,175 1,591 60,362 1,453 66,197 1,809 United Kingdom 55,290 784 32,409 825 29,484 942 Brazil 34,617 4,444 28,829 5,051 31,934 4,322 China 8,324 2,350 5,338 97,194 5,016 106,575 Central America and the Caribbean Basin 1,844 276,547 2,846 269,996 4,180 276,402 Other 154,924 49,698 120,503 45,984 89,715 49,694 $ 6,471,410 $ 623,991 $ 6,028,199 $ 692,464 $ 5,731,549 $ 650,462 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Text Block [Abstract] | |
Quarterly Information | Quarterly Financial Data (Unaudited) First Second Third Fourth Total 2017 Net sales $ 1,380,355 $ 1,646,610 $ 1,799,270 $ 1,645,175 $ 6,471,410 Gross profit 539,531 645,902 678,457 626,661 2,490,551 Income (loss) from continuing operations 73,082 172,164 203,356 (384,611 ) 63,991 Income (loss) from discontinued operations (2,465 ) 368 — — (2,097 ) Net income (loss) 70,617 172,532 203,356 (384,611 ) 61,894 Earnings (loss) per share - basic: Continuing operations 0.20 0.47 0.56 (1.06 ) 0.17 Discontinuing operations (0.01 ) — — — (0.01 ) Earnings (loss) per share - diluted: Continuing operations 0.19 0.47 0.55 (1.06 ) 0.17 Discontinuing operations (0.01 ) — — — (0.01 ) 2016 Net sales $ 1,219,140 $ 1,472,731 $ 1,761,019 $ 1,575,309 $ 6,028,199 Gross profit 457,256 557,291 649,366 612,135 2,276,048 Income from continuing operations 80,269 128,143 172,790 155,725 536,927 Income from discontinued operations — — 1,068 1,387 2,455 Net income 80,269 128,143 173,858 157,112 539,382 Earnings per share - basic: Continuing operations 0.21 0.34 0.46 0.41 1.41 Discontinuing operations — — — — 0.01 Earnings per share - diluted: Continuing operations 0.21 0.34 0.45 0.41 1.40 Discontinuing operations — — — — 0.01 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Balance Sheet Reclassification [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Prior Period Reclassification Adjustment | $ 22,746 |
Cash Flow Statement Reclassification [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Prior Period Reclassification Adjustment | $ 4,068 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Summary of Significant Accounting Policies | |||
Advertising Expense | $ 157,369 | $ 168,701 | $ 181,956 |
Shipping and handling revenue | 19,738 | 19,446 | 19,710 |
Shipping and handling costs | 376,449 | 324,845 | 332,678 |
Research and development expense | 65,457 | 70,096 | 62,324 |
Defined contribution benefit plans | 21,251 | $ 26,434 | $ 21,972 |
Goodwill, Impairment Loss | $ 0 | ||
Trademarks | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 30 years | ||
Building Improvements | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 40 years | ||
Minimum | Trademarks | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 10 years | ||
Minimum | Licensing Agreements | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 3 years | ||
Minimum | Customer and Distributor Relationships | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 2 years | ||
Minimum | Computer Software | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 1 year | ||
Minimum | Machinery and Equipment | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 3 years | ||
Maximum | Trademarks | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 12 years | ||
Maximum | Licensing Agreements | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 17 years | ||
Maximum | Customer and Distributor Relationships | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 15 years | ||
Maximum | Computer Software | |||
Summary of Significant Accounting Policies | |||
Finite-lived intangible assets amortization period | 7 years | ||
Maximum | Machinery and Equipment | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 15 years |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) € in Thousands, AUD in Thousands, $ in Thousands | Feb. 02, 2018AUD | Oct. 13, 2017USD ($) | Apr. 28, 2017EUR (€) | Apr. 28, 2017USD ($) | Jul. 14, 2016AUD | Jul. 14, 2016USD ($) | Apr. 06, 2015USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Dec. 30, 2017EUR (€) | Dec. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016 | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition related costs | $ 192,752 | $ 138,519 | $ 266,060 | |||||||||||||||||
Goodwill | $ 1,098,540 | 1,098,540 | 834,315 | $ 1,167,007 | ||||||||||||||||
Payment for contingent consideration liability | $ 41,250 | $ 0 | 0 | |||||||||||||||||
Hanes Australasia | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to acquire businesses | AUD 1,049,360 | $ 800,871 | ||||||||||||||||||
Percentage of business acquired | 100.00% | |||||||||||||||||||
Goodwill | $ 160,714 | |||||||||||||||||||
Trademarks and other identifiable intangibles, net | 506,170 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 187,081 | |||||||||||||||||||
Champion Europe | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to acquire businesses | € 220,751 | $ 245,554 | ||||||||||||||||||
Contingent consideration | € 40,700 | $ 45,277 | ||||||||||||||||||
EBITDA Multiple | 10 | 10 | ||||||||||||||||||
Percentage of business acquired | 100.00% | 100.00% | ||||||||||||||||||
Notes payable | $ 27,748 | |||||||||||||||||||
Goodwill | 109,830 | |||||||||||||||||||
Trademarks and other identifiable intangibles, net | 135,277 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 175,511 | |||||||||||||||||||
Contingent Consideration EBITDA Floor | € | € 18,600 | |||||||||||||||||||
Payment for contingent consideration liability | € 37,820 | $ 41,250 | ||||||||||||||||||
Contingent consideration, accrued final settlement | € | € 26,430 | |||||||||||||||||||
Knights Apparel | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to acquire businesses | $ 192,888 | |||||||||||||||||||
Alternative Apparel | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to acquire businesses | $ 62,318 | |||||||||||||||||||
Business acquistion, percent of business acquired | 100.00% | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | $ 18,517 | |||||||||||||||||||
Goodwill | 24,514 | |||||||||||||||||||
Trademarks and other identifiable intangibles, net | 26,800 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 7,513 | |||||||||||||||||||
GTM and Universo, Combined | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price | $ 24,415 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 7,013 | |||||||||||||||||||
Goodwill | $ 8,753 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Net Assets | $ 8,649 | |||||||||||||||||||
Minimum | Customer and Distributor Relationships | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets amortization period | 2 years | |||||||||||||||||||
Minimum | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets amortization period | 3 years | |||||||||||||||||||
Maximum | Customer and Distributor Relationships | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets amortization period | 15 years | |||||||||||||||||||
Maximum | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets amortization period | 17 years | |||||||||||||||||||
Deferred Taxes | Knights Apparel | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill, Purchase Accounting Adjustments | 3,551 | |||||||||||||||||||
Working Capital | Hanes Australasia | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill, Purchase Accounting Adjustments | $ 25,434 | |||||||||||||||||||
Working Capital | Champion Europe | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill, Purchase Accounting Adjustments | $ 1,665 | |||||||||||||||||||
3.50% Senior Notes | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | ||||||||||||||||
Pro Forma | Hanes Australasia and Champion Europe, Combined | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition related costs | $ 9,560 | |||||||||||||||||||
Subsequent Event | Forecast | BNT | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to acquire businesses | AUD | AUD 500,000 | |||||||||||||||||||
Percentage of business acquired | 100.00% |
Acquisitions - Acquired Assets
Acquisitions - Acquired Assets and Assumed Liabilities (Details) € in Thousands, $ in Thousands | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 14, 2016USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Jan. 02, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,167,007 | $ 1,098,540 | $ 834,315 | |||
Champion Europe | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 14,581 | |||||
Trade accounts receivable, net | 27,926 | |||||
Inventories | 53,816 | |||||
Other current assets | 5,976 | |||||
Property, net | 24,605 | |||||
Trademarks and other identifiable intangibles, net | 135,277 | |||||
Noncurrent assets | 3,777 | |||||
Total assets acquired | 265,958 | |||||
Accounts payable, Accrued liabilities and other | 60,887 | |||||
Accounts payables | 66,594 | |||||
Notes payable | 27,748 | |||||
Deferred tax liabilities, noncurrent | 20,282 | |||||
Total liabilities assumed | 175,511 | |||||
Net assets acquired | 90,447 | |||||
Goodwill | 109,830 | |||||
Initial consideration paid | 200,277 | |||||
Estimated contingent consideration | € (40,700) | (45,277) | ||||
Purchase price | $ 245,554 | |||||
Hanes Australasia | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 54,294 | |||||
Trade accounts receivable, net | 36,019 | |||||
Inventories | 104,806 | |||||
Deferred tax assets and other | 23,687 | |||||
Other current assets | 16,588 | |||||
Current assets of discontinued operations | 50,839 | |||||
Property, net | 34,835 | |||||
Trademarks and other identifiable intangibles, net | 506,170 | |||||
Total assets acquired | 827,238 | |||||
Accounts payable, Accrued liabilities and other | 24,912 | |||||
Accounts payables | 89,309 | |||||
Current liabilities of discontinued operations | 14,564 | |||||
Long-term debt | 41,976 | |||||
Deferred tax liabilities, noncurrent | 16,320 | |||||
Total liabilities assumed | 187,081 | |||||
Net assets acquired | 640,157 | |||||
Goodwill | 160,714 | |||||
Purchase price | $ 800,871 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 192,752 | $ 138,519 | $ 266,060 |
Pro Forma | Hanes Australasia and Champion Europe, Combined | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 9,560 | ||
Net sales | 6,434,928 | 6,480,153 | |
Income from continuing operations | $ 617,261 | $ 437,849 | |
Earnings per share from continuing operations: | |||
Basic | $ 1.62 | $ 1.09 | |
Diluted | $ 1.61 | $ 1.08 | |
Pro Forma | Knights Apparel | |||
Business Acquisition [Line Items] | |||
Net sales | $ 5,753,706 | ||
Income from continuing operations | $ 433,636 | ||
Earnings per share from continuing operations: | |||
Basic | $ 1.08 | ||
Diluted | $ 1.07 |
Discontinued Operations (Detail
Discontinued Operations (Details) AUD in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Apr. 30, 2017AUD | Apr. 30, 2017USD ($) | Mar. 31, 2017AUD | Mar. 31, 2017USD ($) | Feb. 28, 2017AUD | Feb. 28, 2017USD ($) | Sep. 30, 2017AUD | Sep. 30, 2017USD ($) | |
Dunlop Flooring | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | AUD 34,564 | $ 26,219 | ||||||
Adjustments to Proceeds from Previous Divestiture | AUD 1,334 | $ 1,012 | ||||||
Gain (Loss) on Disposition of Business | AUD (2,715) | $ (2,083) | ||||||
Tontine Pillow | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | AUD 13,500 | $ 10,363 | ||||||
Adjustments to Proceeds from Previous Divestiture | AUD (966) | $ (742) | ||||||
Gain (Loss) on Disposition of Business | AUD 2,415 | $ 1,856 |
Discontinued Operations Discont
Discontinued Operations Discontinued operations (Details) - Discontinued Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | $ 6,865 | $ 34,698 |
Costs of sales | 4,507 | 22,554 |
Gross profit | 2,358 | 12,144 |
Selling, general and administrative expenses | 3,729 | 8,632 |
Operating profit | (1,371) | 3,512 |
Other expense | 303 | 1,106 |
Gain (Loss) on Disposition of Business | 242 | 0 |
Income from discontinued operations before income tax expense | (1,916) | 2,406 |
Income tax expense | 181 | (49) |
Net income from discontinued operations, net of tax | $ (2,097) | $ 2,455 |
Discontinued Operations Net ass
Discontinued Operations Net assets held-for-sale (Details) - Discontinued Operations $ in Thousands | Dec. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Trade accounts receivable, net | $ 10,139 |
Inventories | 10,691 |
Property, net | 3,630 |
Trademarks and other identifiable intangibles, net | 14,929 |
Goodwill | 10,479 |
Accounts payable and accrued liabilities | (8,257) |
Net other assets and liabilities | (5,180) |
Net assets of discontinued operations | $ 36,431 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic to Diluted Weighted Average Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Earnings Per Share Reconciliation Of Basic To Diluted Weighted Average Shares [Abstract] | |||
Basic weighted average shares outstanding | 367,680 | 381,782 | 399,891 |
Effect of potentially dilutive securities: | |||
Stock options | 1,435 | 1,983 | 2,719 |
Restricted stock units | 307 | 756 | 1,009 |
Employee stock purchase plan and other | 4 | 45 | 40 |
Diluted weighted average shares outstanding | 369,426 | 384,566 | 403,659 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) shares in Thousands | Mar. 03, 2015 | Dec. 30, 2017shares | Dec. 31, 2016shares | Jan. 02, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Split, Conversion Ratio | 4 | |||
Percent of dividend paid in stock | 300.00% | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 0 | 0 | 0 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 488 | 303 | 348 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Generally vesting period of Options granted and Restricted stock Units | 3 years | ||
Period of exercise of Option granted to date | 10 years | ||
The total intrinsic value of options that were exercised | $ 10,821 | $ 7,465 | $ 105,899 |
Total compensation expense, recognized | 23,224 | 30,617 | 29,154 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares vested | $ 26,510 | 29,705 | 20,784 |
Minimum percentage of target of granted performance-based restricted stock units | 0.00% | ||
Maximum percentage of target of granted performance-based restricted stock units | 200.00% | ||
Deferred tax benefit, recognized | $ 6,085 | $ 11,754 | $ 11,382 |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | 10,037 | ||
Unrecognized compensation cost expected to be recognized in 2018 | 6,837 | ||
Unrecognized compensation cost expected to be recognized in 2019 | 2,456 | ||
Unrecognized compensation cost expected to be recognized in 2020 | $ 744 | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of Restricted Stock Units to generally vest | 1 year | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of Restricted Stock Units to generally vest | 4 years | ||
Share Based Compensation Arrangement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares may be purchased by eligible employees | 63,220 | ||
Number of shares available for Future grants | 9,533 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Stock Options Outstanding to Company's Employees Under Hanesbrands Omnibus Incentive Plan (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, Shares, Beginning Balance | 2,275 | 2,752 | ||
Exercised, Shares | (736) | (477) | (4,540) | |
Options outstanding, Shares, Ending Balance | 1,539 | 2,275 | 2,752 | 7,292 |
Options exercisable, Shares, Ending Balance | 1,539 | |||
Options outstanding,Weighted-Average Exercise Price, Beginning Balance | $ 5.56 | $ 5.62 | ||
Weighted-Average Exercise Price, Exercised | 6.22 | 5.90 | $ 6.10 | |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 5.24 | $ 5.56 | $ 5.62 | $ 5.92 |
Weighted-Average Exercise Price, Exercisable | $ 5.24 | |||
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 24,108 | $ 36,438 | $ 65,531 | $ 158,469 |
Options Outstanding, Aggregate Intrinsic Value, Ending Balance | $ 24,108 | |||
Option Outstanding, Weighted-Average Remaining Contractual Term (Years) | 1 year 9 months 4 days | 2 years 2 months 12 days | 2 years 10 months 17 days | 3 years 4 months 24 days |
Option Exercisable, Weighted-Average Remaining Contractual Term (Years) | 1 year 9 months 4 days |
Stock Based Compensation - Su62
Stock Based Compensation - Summary of Changes in Restricted Stock Unit Awards Outstanding Under Hanesbrands Omnibus Incentive Plan (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested share units outstanding, Beginning Balance | 2,520 | 2,833 | ||
Vested, Shares | (991) | (1,525) | (1,816) | |
Forfeited, Shares | (81) | (47) | (113) | |
Nonvested share units outstanding, Ending Balance | 2,666 | 2,520 | 2,833 | 3,418 |
Weighted Average Grant Date Fair Value, Share units, Beginning Balance | $ 26.46 | $ 23.99 | ||
Weighted Average Grant Date Fair Value, Vested | 26.74 | 19.47 | $ 11.45 | |
Weighted Average Grant Date Fair Value, Forfeited | 26.81 | 23.38 | 16.87 | |
Weighted Average Grant Date Fair Value, Share units, Ending Balance | $ 24.36 | $ 26.46 | $ 23.99 | $ 16.12 |
Aggregate Intrinsic Value | $ 55,741 | $ 54,356 | $ 83,381 | $ 94,521 |
Weighted-Average Remaining Contractual Term (Years) | 2 years | 2 years 1 month 10 days | 1 year 9 months 11 days | 1 year 8 months 16 days |
Non-Performanced Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Shares | 628 | 748 | 516 | |
Granted, Weighted Average Grant Date Fair Value | $ 21.22 | $ 23.44 | $ 31.06 | |
Performanced Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Shares | 590 | 511 | 828 | |
Granted, Weighted Average Grant Date Fair Value | $ 23.04 | $ 23.64 | $ 23.50 |
Trade Accounts Receivable - All
Trade Accounts Receivable - Allowances for Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 18,726 | $ 13,100 | $ 16,856 |
Charged to expenses | 22,811 | 23,470 | 13,331 |
Deductions and write-offs | (18,896) | (16,640) | (15,684) |
Currency Translation | 3,455 | (1,204) | (1,403) |
Ending Balance | 26,096 | 18,726 | 13,100 |
Allowance for Doubtful Accounts [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | 6,658 | 3,749 | 8,117 |
Charged to expenses | 6,642 | 3,650 | 4,656 |
Deductions and write-offs | (632) | (381) | (7,844) |
Currency Translation | 904 | (360) | (1,180) |
Ending Balance | 13,572 | 6,658 | 3,749 |
Allowance for Charge backs and other Deductions [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | 12,068 | 9,351 | 8,739 |
Charged to expenses | 16,169 | 19,820 | 8,675 |
Deductions and write-offs | (18,264) | (16,259) | (7,840) |
Currency Translation | 2,551 | (844) | (223) |
Ending Balance | $ 12,524 | $ 12,068 | $ 9,351 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Trade Accounts Receivable [Abstract] | |||
Funding Fees For Sales Of Accounts Receivable | $ 6,059 | $ 4,497 | $ 2,452 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Disclosure Inventories Inventories [Abstract] | ||
Raw materials | $ 129,287 | $ 131,228 |
Work in process | 226,659 | 185,066 |
Finished goods | 1,519,044 | 1,524,271 |
Total Inventories | $ 1,874,990 | $ 1,840,565 |
Property, Net - Summary of Prop
Property, Net - Summary of Property (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Disclosure Property Net Summary Of Property [Abstract] | |||
Land | $ 45,882 | $ 43,731 | |
Buildings and improvements | 486,893 | 566,819 | |
Machinery and equipment | 1,063,661 | 977,312 | |
Construction in progress | 33,922 | 49,887 | |
Capital leases | 7,133 | 4,761 | |
Property, gross | 1,637,491 | 1,642,510 | |
Less accumulated depreciation | 1,013,500 | 950,046 | |
Property, net | $ 623,991 | $ 692,464 | $ 650,462 |
Notes Payable - Summary of Shor
Notes Payable - Summary of Short Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Principal amount | $ 11,873 | $ 56,396 |
Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Principal amount | 11,873 | 56,396 |
Revolving Facility | Europe | ||
Line of Credit Facility [Line Items] | ||
Principal amount | $ 10,072 | 54,772 |
Revolving Facility | Philippines | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 5.99% | |
Principal amount | $ 1,801 | 1,265 |
Revolving Facility | Australia | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 0.00% | |
Principal amount | $ 0 | $ 359 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Notes Payable [Line Items] | |||
Total interest paid on notes payable | $ 164,716 | $ 130,603 | $ 106,231 |
Revolving Facility | Notes Payable to Banks | |||
Notes Payable [Line Items] | |||
Total borrowing availability | 133,708 | 80,210 | |
Total interest paid on notes payable | $ 364 | $ 1,103 | $ 716 |
Debt (Details)
Debt (Details) € in Thousands, $ in Thousands | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016 | Jul. 02, 2016EUR (€) | Jul. 02, 2016USD ($) | Jun. 03, 2016EUR (€) | Nov. 09, 2010 |
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 3,993,267 | $ 3,732,583 | |||||
Long-term debt issuance cost | 41,624 | 46,534 | |||||
Current maturities | 249,589 | 178,364 | |||||
Long-term debt, net | $ 3,702,054 | 3,507,685 | |||||
Revolving Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | ||||||
Long-term Debt | $ 0 | 0 | |||||
Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.99% | ||||||
Long-term Debt | $ 750,000 | 655,469 | |||||
Term Loan B | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.23% | ||||||
Long-term Debt | $ 500,000 | 318,625 | |||||
Australian Term A-1 Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 135,826 | 143,544 | |||||
Interest rate | 3.23% | ||||||
Australian Term A-2 Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 0 | 143,544 | |||||
Interest rate | 0.00% | ||||||
4.875% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 900,000 | 900,000 | $ 900,000 | ||||
Interest rate | 4.875% | 4.875% | 4.875% | ||||
4.625% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 900,000 | 900,000 | $ 900,000 | ||||
Interest rate | 4.625% | 4.625% | 4.625% | ||||
3.50% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 599,649 | $ 520,617 | € 500,000 | € 500,000 | |||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | |||
6.375% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.375% | 6.375% | 6.375% | ||||
European Revolving Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 81,539 | $ 62,474 | |||||
Interest rate | 1.50% | ||||||
Accounts Receivable Securitization Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.31% | ||||||
Long-term Debt | $ 125,209 | $ 44,521 | |||||
8% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 8.00% | 8.00% | |||||
Other International Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 1,044 | $ 43,789 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Thousands, AUD in Thousands | Jul. 11, 2016AUD | Jun. 03, 2016EUR (€) | Oct. 03, 2015USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 01, 2016 | Sep. 09, 2016EUR (€) | Jul. 15, 2016USD ($) | Jul. 02, 2016EUR (€) | Jul. 02, 2016USD ($) | Apr. 29, 2015USD ($) | Nov. 09, 2010 |
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 3,993,267,000 | $ 3,732,583,000 | |||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 0 | 2,359,347,000 | $ 0 | ||||||||||
Document Fiscal Year Focus | 2,017 | ||||||||||||
Cash paid for interest related to debt | $ 164,716,000 | 130,603,000 | 106,231,000 | ||||||||||
Carrying value of unamortized debt issuance costs | 10,575,000 | ||||||||||||
Long-term debt issuance cost | 41,624,000 | 46,534,000 | |||||||||||
Outstanding under Account receivable securitization facility | 125,209,000 | 44,521,000 | |||||||||||
Trade accounts receivable less allowances | 903,318,000 | 836,924,000 | |||||||||||
Future principal payment, 2018 | 249,589,000 | ||||||||||||
Future principal payment, 2019 | 179,029,000 | ||||||||||||
Future principal payment, 2020 | 42,500,000 | ||||||||||||
Future principal payment, 2021 | 42,500,000 | ||||||||||||
Future principal payment, 2022 | 605,000,000 | ||||||||||||
Future principal payment, 2023 and beyond | 2,874,649,000 | ||||||||||||
Amortization of debt issuance costs | 10,394,000 | 9,034,000 | 7,077,000 | ||||||||||
Capitalized debt issuance cost | 0 | 34,624,000 | 0 | ||||||||||
Charges for acceleration of unamortized debt costs | $ 4,028,000 | $ 12,667,000 | 0 | ||||||||||
Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Leverage Ratio | 3 | ||||||||||||
Debt Issuance Costs Amortization Period, In Years | 1 year | ||||||||||||
Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Leverage Ratio | 4.5 | ||||||||||||
Debt Issuance Costs Amortization Period, In Years | 10 years | ||||||||||||
Senior Secured Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Trade letters of credit issued | $ 4,518,000 | ||||||||||||
Variable rate on base rate | 0.50% | ||||||||||||
Leverage Ratio | 3.5 | ||||||||||||
Syndicated Facility Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt to EBITDA Ratio | 4.5 | ||||||||||||
Permitted Acquisition Amount for Increased Debt to EBITDA Ratio | $ 200,000,000 | ||||||||||||
Syndicated Facility Agreement | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt to EBITDA Ratio | 5 | ||||||||||||
Australian Revolving Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Remaining capacity under senior secured credit facility | $ 50,497,000 | ||||||||||||
8% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 8.00% | 8.00% | |||||||||||
6.375% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 6.375% | 6.375% | 6.375% | ||||||||||
Charges for acceleration of unamortized debt costs | $ 1,909,000 | $ 47,291,000 | |||||||||||
US Term Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Charges for acceleration of unamortized debt costs | $ 1,739,000 | ||||||||||||
2016 New Senior Notes, Combined [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 1,773,000,000 | ||||||||||||
Debt Issuance Costs, Gross | $ 39,523,000 | ||||||||||||
2016 New Senior Notes, Combined [Member] | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Issuance Costs Amortization Period, In Years | 8 years | ||||||||||||
2016 New Senior Notes, Combined [Member] | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Issuance Costs Amortization Period, In Years | 10 years | ||||||||||||
4.875% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 900,000,000 | 900,000,000 | $ 900,000,000 | ||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | ||||||||||
4.625% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 900,000,000 | 900,000,000 | $ 900,000,000 | ||||||||||
Interest rate | 4.625% | 4.625% | 4.625% | ||||||||||
3.50% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | € 500,000 | $ 599,649,000 | 520,617,000 | € 500,000 | |||||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||
Proceeds from Issuance of Debt | € | € 492,500 | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||
Revolving Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 0 | 0 | |||||||||||
Interest rate | 0.00% | ||||||||||||
Revolving Loan Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percentage | 0.25% | ||||||||||||
Revolving Loan Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percentage | 0.40% | ||||||||||||
Revolving Loan Facility | Senior Secured Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Remaining capacity under senior secured credit facility | $ 995,482,000 | ||||||||||||
LIBOR Based Loan | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 1.00% | ||||||||||||
LIBOR Based Loan | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 2.00% | ||||||||||||
Base Rate Loan | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 0.00% | ||||||||||||
Base Rate Loan | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 1.00% | ||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | ||||||||||||
Senior Secured Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Coverage Ratio | 3 | ||||||||||||
Permitted Acquisition Amount for Increase Leverage Ratio | $ 200,000,000 | ||||||||||||
Leverage Ratio After Permitted Acquisition | 5 | ||||||||||||
Capitalized debt issuance cost | $ 11,935,000 | ||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable commitment fee margin | 0.40% | ||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable commitment fee margin | 0.30% | ||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable commitment fee margin | 0.25% | ||||||||||||
Senior Secured Credit Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Leverage Ratio | 2.25 | ||||||||||||
Senior Secured Credit Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Leverage Ratio | 4.5 | ||||||||||||
Accounts Receivable Securitization Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 125,209,000 | 44,521,000 | |||||||||||
Interest rate | 2.31% | ||||||||||||
Accounts receivable securitization facility current borrowing capacity | $ 275,000,000 | ||||||||||||
Trade accounts receivable less allowances | 413,046,000 | ||||||||||||
Accounts Receivable Securitization Facility | Senior Secured Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Capitalized debt issuance cost | 9,130,000 | 45,065,000 | $ 12,793,000 | ||||||||||
Australian Term A-1 Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 135,826,000 | 143,544,000 | |||||||||||
Interest rate | 3.23% | ||||||||||||
Proceeds from Issuance of Debt | AUD | AUD 200,000 | ||||||||||||
Australian Revolving Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 0 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 65,000,000 | ||||||||||||
European Revolving Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 81,539,000 | 62,474,000 | |||||||||||
Interest rate | 1.50% | ||||||||||||
Remaining capacity under senior secured credit facility | $ 37,339,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 100,000 | ||||||||||||
Voluntary Minimum Prepayment Principal Amount | 5,000,000 | ||||||||||||
Voluntary Prepayment Principal Amount, Increments above Minimum | 1,000,000 | ||||||||||||
Australian Term A-2 Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 0 | 143,544,000 | |||||||||||
Interest rate | 0.00% | ||||||||||||
Proceeds from Issuance of Debt | AUD | AUD 200,000 | ||||||||||||
Other International Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 1,044,000 | 43,789,000 | |||||||||||
Term Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term Loans Borrowing Capacity | $ 325,750,000 | ||||||||||||
Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 750,000,000 | 655,469,000 | |||||||||||
Interest rate | 2.99% | ||||||||||||
Annual repayment percentage | 1.25% | ||||||||||||
Term Loans Borrowing Capacity | 144,375,000 | ||||||||||||
Term Loan B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 500,000,000 | 318,625,000 | |||||||||||
Interest rate | 3.23% | ||||||||||||
Debt Instrument, Periodic Payment, Percent of Original Borrowing | 0.25% | ||||||||||||
Prepayment fee | 1.00% | ||||||||||||
Term Loans Borrowing Capacity | $ 181,375,000 | ||||||||||||
Euro Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Charges for acceleration of unamortized debt costs | $ 380,000 | $ 873,000 | |||||||||||
Euro LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate on base rate | 0.00% | ||||||||||||
Euro LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate on base rate | 1.50% | ||||||||||||
London Interbank Offered Rate (LIBOR) | Term Loan B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate on base rate | 1.75% | ||||||||||||
Base Rate | Term Loan B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate on base rate | 0.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Commitments And Contingencies Additional Information [Abstract] | |||
Purchase commitments due in 2018 | $ 418,038,000 | ||
Purchase commitments due in 2019 | 3,318,000 | ||
Purchase commitments due thereafter | 0 | ||
Rental expense under operating leases | 184,603,000 | $ 132,128,000 | $ 103,621,000 |
Future minimum lease payments under noncancelable operating leases in 2018 | 137,959,000 | ||
Future minimum lease payments under noncancelable operating leases in 2019 | 114,326,000 | ||
Future minimum lease payments under noncancelable operating leases in 2020 | 97,850,000 | ||
Future minimum lease payments under noncancelable operating leases in 2021 | 81,390,000 | ||
Future minimum lease payments under noncancelable operating leases in 2022 | 65,608,000 | ||
Future minimum lease payments under noncancelable operating leases thereafter | 125,163,000 | ||
Royalty expense | 100,869,000 | $ 95,650,000 | $ 84,733,000 |
Minimum amounts due under license agreements, 2018 | 45,086,000 | ||
Minimum amounts due under license agreements, 2019 | 60,688,000 | ||
Minimum amounts due under license agreements, 2020 | 50,160,000 | ||
Minimum amounts due under license agreements, 2021 | 7,289,000 | ||
Minimum amounts due under license agreements, 2022 | 6,844,000 | ||
Minimum amounts under license agreements due thereafter | $ 27,596,000 |
Intangible Assets and Goodwil72
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jul. 14, 2016 | |
Goodwill [Line Items] | ||||
Goodwill | $ 1,167,007 | $ 1,098,540 | $ 834,315 | |
Amortization expense for intangibles subject to amortization | 34,892 | $ 22,118 | $ 23,737 | |
Estimated Amortization Expense, 2018 | 32,096 | |||
Estimated Amortization Expense, 2019 | 32,811 | |||
Estimated Amortization Expense, 2020 | 30,465 | |||
Estimated Amortization Expense, 2021 | 27,087 | |||
Estimated Amortization Expense, 2022 | $ 25,583 | |||
Trademarks | ||||
Goodwill [Line Items] | ||||
Finite-lived intangible assets amortization period | 30 years | |||
Hanes Australasia | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 160,714 | |||
Trademarks and other identifiable intangibles, net | $ 506,170 | |||
Knights Apparel and ProEdge | Trademarks | ||||
Goodwill [Line Items] | ||||
Finite-lived intangible assets amortization period | 12 years |
Intangible Assets and Goodwil73
Intangible Assets and Goodwill - Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | $ 430,088 | $ 373,741 |
Accumulated Amortization | 192,709 | 155,481 |
Net Book Value | 237,379 | 218,260 |
Trademarks and other identifiable intangibles, net | 1,402,857 | 1,285,458 |
Trademarks And Brand Names | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 35,498 | 28,617 |
Accumulated Amortization | 24,694 | 28,607 |
Net Book Value | 10,804 | 10 |
Licensing and other agreements | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 103,366 | |
Accumulated Amortization | 42,218 | |
Net Book Value | 61,148 | |
Licensing Agreements | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 102,069 | |
Accumulated Amortization | 33,397 | |
Net Book Value | 68,672 | |
Customer and Distributor Relationships | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 172,820 | 156,340 |
Accumulated Amortization | 42,010 | 26,153 |
Net Book Value | 130,810 | 130,187 |
Computer Software | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 116,273 | 88,213 |
Accumulated Amortization | 83,390 | 68,318 |
Net Book Value | 32,883 | 19,895 |
Other Intangibles | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 2,131 | (1,498) |
Accumulated Amortization | 397 | (994) |
Net Book Value | 1,734 | (504) |
Trademarks | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 1,089,742 | 999,170 |
Licensing Agreements | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | $ 75,736 | $ 68,028 |
Intangible Assets and Goodwil74
Intangible Assets and Goodwill - Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 1,098,540 | $ 834,315 |
Currency translation | 39,868 | (23,301) |
Acquisition of businesses | 28,599 | 287,526 |
Goodwill, Ending Balance | 1,167,007 | 1,098,540 |
Innerwear | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 431,561 | 431,561 |
Currency translation | 0 | 0 |
Acquisition of businesses | 0 | 0 |
Goodwill, Ending Balance | 406,853 | 431,561 |
Outerwear | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 291,443 | 289,153 |
Currency translation | 0 | 0 |
Acquisition of businesses | 25,248 | 2,290 |
Goodwill, Ending Balance | 316,950 | 291,443 |
Direct to Consumer | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 3,224 | 3,224 |
Currency translation | 0 | 0 |
Acquisition of businesses | 0 | 0 |
Goodwill, Ending Balance | 27,673 | 3,224 |
International | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 372,312 | 110,377 |
Currency translation | 39,868 | (23,301) |
Acquisition of businesses | 3,351 | 285,236 |
Goodwill, Ending Balance | $ 415,531 | $ 372,312 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Loss - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||
Beginning Balance, tax | $ 234,879 | $ 219,758 |
Amounts reclassified from accumulated other comprehensive loss, tax | (7,095) | (5,030) |
Current-period other comprehensive income (loss) activity, tax | 15,976 | 20,151 |
Ending Balance, tax | 243,760 | 234,879 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Period, net of tax | (435,991) | (394,933) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 10,142 | 8,120 |
Current-period other comprehensive income (loss) activity, net of tax | (13,357) | (49,178) |
Ending Period, net of tax | (439,206) | (435,991) |
Cumulative translation adjustment | ||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||
Beginning Balance, before tax | (78,059) | (57,675) |
Amounts reclassified from accumulated other comprehensive loss, before tax | 0 | 0 |
Current-period other comprehensive income (loss) activity, before tax | 34,554 | (20,384) |
Ending Balance, before tax | (43,505) | (78,059) |
Foreign exchange contracts | ||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||
Beginning Balance, before tax | 13,772 | 6,743 |
Amounts reclassified from accumulated other comprehensive loss, before tax | (1,825) | (3,966) |
Current-period other comprehensive income (loss) activity, before tax | (37,408) | 10,995 |
Ending Balance, before tax | (25,461) | 13,772 |
Defined benefit plans | ||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||
Beginning Balance, before tax | (606,583) | (563,759) |
Amounts reclassified from accumulated other comprehensive loss, before tax | 19,062 | 17,116 |
Current-period other comprehensive income (loss) activity, before tax | (26,479) | (59,940) |
Ending Balance, before tax | $ (614,000) | $ (606,583) |
Accumulated Other Comprehensi76
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ (3,980,859) | $ (3,752,151) | $ (3,595,217) | ||||||||
Income tax expense (benefit) | (473,279) | (34,272) | (45,018) | ||||||||
Interest expense, net | (174,435) | (152,692) | (118,035) | ||||||||
Selling, general and administrative expenses | (1,739,631) | (1,500,399) | (1,541,214) | ||||||||
Net income | $ (384,611) | $ 203,356 | $ 172,532 | $ 70,617 | $ 157,112 | $ 173,858 | $ 128,143 | $ 80,269 | 61,894 | 539,382 | 428,855 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | 10,142 | 8,120 | 1,591 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of deferred actuarial loss and prior service cost | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense (benefit) | (7,320) | (6,573) | (5,669) | ||||||||
Selling, general and administrative expenses | 19,062 | 17,116 | 14,573 | ||||||||
Net income | 11,742 | 10,543 | 8,904 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract | Gain (loss) on cash flow hedges | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | (1,825) | (3,966) | (11,968) | ||||||||
Income tax expense (benefit) | 225 | 1,543 | 4,655 | ||||||||
Net income | $ (1,600) | $ (2,423) | $ (7,313) |
Financial Instruments and Ris77
Financial Instruments and Risk Management - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total derivative assets | $ 1,600 | $ 21,092 |
Total derivative liabilities | (22,568) | (379) |
Net derivative asset (liability) | (20,968) | 20,713 |
Other Current Assets | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total derivative assets | 1,464 | 16,729 |
Other Current Assets | Non Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total derivative assets | 136 | 4,363 |
Accrued Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total derivative liabilities | (14,750) | (207) |
Accrued Liabilities | Non Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total derivative liabilities | $ (7,818) | $ (172) |
Financial Instruments and Ris78
Financial Instruments and Risk Management - Effect of Cash Flow Hedge Derivative Instruments (Detail) - Foreign Exchange Contract - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (Effective Portion) Year Ended | $ (37,408) | $ 10,995 | $ 13,423 |
Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Year Ended | $ 1,825 | $ 3,966 | $ 11,968 |
Financial Instruments and Ris79
Financial Instruments and Risk Management - Effect of Mark to Market Hedge Derivative Instruments on Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Selling, General and Administrative Expenses [Member] | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income | $ 114 | $ 12,222 | $ (9,271) |
Financial Instruments and Ris80
Financial Instruments and Risk Management Financial Instruments and Risk Management - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Amount expected to be reclassified into earnings | $ 16,933 | |
Short | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 584,582 | $ 451,355 |
Fair Value of Assets and Liab81
Fair Value of Assets and Liabilities - Additional Information (Detail) € in Thousands, $ in Thousands | Apr. 28, 2017EUR (€) | Apr. 28, 2017USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Dec. 30, 2017EUR (€) | Dec. 30, 2017USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Payment for contingent consideration liability | $ 41,250 | $ 0 | $ 0 | |||||
Fair value of debt | 3,729,270 | $ 4,093,229 | ||||||
Carrying value of debt | $ 3,732,583 | $ 3,993,267 | ||||||
Champion Europe | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent Consideration EBITDA Floor | € | € 18,600 | |||||||
Payment for contingent consideration liability | € 37,820 | $ 41,250 | ||||||
Contingent consideration, accrued final settlement | € | € 26,430 |
Fair Value of Assets and Liab82
Fair Value of Assets and Liabilities - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | $ 872,686 | $ 827,169 | $ 809,217 | ||
Total derivative assets | 1,600 | 21,092 | |||
Total derivative liabilities | (22,568) | (379) | |||
Net derivative asset (liability) | (20,968) | 20,713 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 270,598 | 235,909 | |||
Total derivative assets | 1,600 | 21,092 | |||
Total derivative liabilities | (22,568) | (379) | |||
Net derivative asset (liability) | (20,968) | 20,713 | |||
Loss Contingency Accrual | [1] | (42,378) | |||
Deferred Compensation Plan, Fair Value of Plan Liability | (52,758) | (51,868) | |||
Net effect of financial asset less financial liability | 798,960 | 753,636 | |||
U.S. Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 172,558 | 147,702 | |||
Foreign Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 40,920 | 33,511 | |||
Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 52,331 | 49,128 | |||
Insurance Contracts | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 2,194 | 3,334 | |||
Cash and Other | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 2,595 | 2,234 | |||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 268,404 | 232,575 | |||
Total derivative assets | 0 | 0 | |||
Total derivative liabilities | 0 | 0 | |||
Net derivative asset (liability) | 0 | 0 | |||
Deferred Compensation Plan, Fair Value of Plan Liability | 0 | 0 | |||
Net effect of financial asset less financial liability | 268,404 | 232,575 | |||
Fair Value, Inputs, Level 1 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 172,558 | 147,702 | |||
Fair Value, Inputs, Level 1 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 40,920 | 33,511 | |||
Fair Value, Inputs, Level 1 | Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 52,331 | 49,128 | |||
Fair Value, Inputs, Level 1 | Cash and Other | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 2,595 | 2,234 | |||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 2,194 | 3,334 | |||
Total derivative assets | 1,600 | 21,092 | |||
Total derivative liabilities | (22,568) | (379) | |||
Net derivative asset (liability) | (20,968) | 20,713 | |||
Deferred Compensation Plan, Fair Value of Plan Liability | (52,758) | (51,868) | |||
Net effect of financial asset less financial liability | (71,532) | (27,821) | |||
Fair Value, Inputs, Level 2 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Insurance Contracts | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 2,194 | 3,334 | [3] | |
Fair Value, Inputs, Level 2 | Cash and Other | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Total derivative assets | 0 | 0 | |||
Total derivative liabilities | 0 | 0 | |||
Net derivative asset (liability) | 0 | 0 | |||
Loss Contingency Accrual | (31,419) | (42,378) | [1] | ||
Deferred Compensation Plan, Fair Value of Plan Liability | 0 | 0 | |||
Net effect of financial asset less financial liability | 0 | (42,378) | |||
Fair Value, Inputs, Level 3 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Cash and Other | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | 0 | 0 | |||
Fair Value, Inputs, Net Asset Value | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 602,088 | 591,260 | ||
Fair Value, Inputs, Net Asset Value | Hedge Funds | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 328,511 | 326,298 | ||
Fair Value, Inputs, Net Asset Value | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2],[3] | 19,848 | |||
Fair Value, Inputs, Net Asset Value | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 109,525 | 88,933 | [3] | |
Fair Value, Inputs, Net Asset Value | Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 102,531 | 95,634 | [3] | |
Fair Value, Inputs, Net Asset Value | Real Estate | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | 42,996 | 42,869 | ||
Fair Value, Inputs, Net Asset Value | Commodities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined benefit pension plan investment assets | [2] | $ 18,525 | $ 17,678 | [3] | |
[1] | The fair value of the Champion Europe contingent consideration had not changed since the date of acquisition, other than from the foreign exchange translation impact between periods. | ||||
[2] | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. | ||||
[3] | The Company’s presentation of fair value hierarchy table has been revised to remove certain defined benefit pension plan assets from the fair value hierarchy to reflect the use of the net asset value as a practical expedient to value these assets in order to conform with ASU 2015-07, “Fair Value Measurement (Topic 820).” This change is not material to the consolidated financial statements and does not have an impact on the Company’s financial condition, results of operations or cash flows. |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Defined Benefit Pension Plans Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Loss [Abstract] | |||
Service cost | $ 2,216 | $ 1,856 | $ 2,478 |
Interest cost | 40,830 | 42,061 | 49,202 |
Expected return on assets | (41,780) | (47,621) | (55,127) |
Curtailments | 154 | (489) | 0 |
Settlement cost | 23 | 115 | 25 |
Amortization of: | |||
Prior service cost | 9 | 9 | 22 |
Net actuarial loss | 19,053 | 17,052 | 14,551 |
Net periodic benefit cost | 20,505 | 12,983 | 11,151 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss | 15,186 | 41,921 | 3,813 |
Prior service credit (cost) | (380) | (9) | 22 |
Total loss recognized in other comprehensive income | 14,806 | 41,912 | 3,835 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 35,311 | $ 54,895 | $ 14,986 |
Defined Benefit Pension Plans84
Defined Benefit Pension Plans - Funded Status of Company's Defined Benefit Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Defined Benefit Pension Plans Funded Status Of Companys Defined Benefit Pension Plans [Abstract] | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ (688) | $ (2,360) | |
Curtailments | 187 | (1,053) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (688) | (2,360) | |
Benefit obligation: | |||
Beginning of year | 1,197,189 | 1,172,267 | |
Service cost | 2,216 | 1,856 | $ 2,478 |
Interest cost | 40,830 | 42,061 | |
Plan amendment | (370) | 0 | |
Benefits paid | (57,464) | (56,576) | |
Impact of exchange rate change | 9,453 | (1,976) | |
Business combination | 0 | 4,547 | |
Actuarial loss | 86,414 | 36,671 | |
End of year | 1,277,722 | 1,197,189 | 1,172,267 |
Fair value of plan assets: | |||
Beginning of year | 827,169 | 809,217 | |
Actual return on plan assets | 94,957 | 24,758 | |
Employer contributions | 6,376 | 47,203 | |
Benefits paid | 57,464 | 56,576 | |
Business combination | 0 | 4,776 | |
Impact of exchange rate change | 2,381 | 178 | |
End of year | 872,686 | 827,169 | $ 809,217 |
Funded status | (405,036) | (370,020) | |
Defined Benefit Plan, Other Cost (Credit) | (45) | (27) | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ (45) | $ 1,752 |
Defined Benefit Pension Plans85
Defined Benefit Pension Plans - Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Disclosure Defined Benefit Pension Plans Accumulated Benefit Obligation And Fair Value Of Plan Assets With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | |||
Benefit obligation | $ 1,277,722 | $ 1,197,189 | $ 1,172,267 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | 1,245,844 | 1,167,871 | |
Plans with benefit obligation in excess of plan assets: | |||
Fair value of plan assets | $ 842,168 | $ 799,191 |
Defined Benefit Pension Plans86
Defined Benefit Pension Plans - Amounts Recognized in Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Disclosure Defined Benefit Pension Plans Amounts Recognized In Companys Consolidated Balance Sheets [Abstract] | ||
Current liabilities | $ (3,663) | $ (3,605) |
Noncurrent liabilities | (401,749) | (366,822) |
Accumulated other comprehensive loss | $ (618,416) | $ (603,610) |
Defined Benefit Pension Plans87
Defined Benefit Pension Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Disclosure Defined Benefit Pension Plans Amounts Recognized In Accumulated Other Comprehensive Loss [Abstract] | ||
Prior service cost | $ (163) | $ 216 |
Actuarial loss | 618,579 | 603,394 |
Accumulated other comprehensive loss | $ 618,416 | $ 603,610 |
Defined Benefit Pension Plans88
Defined Benefit Pension Plans - Weighted Average Actuarial Assumptions Used in Measuring Net Periodic Benefit Cost and Plan Obligation (Detail) | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | ||
Net periodic benefit cost: | ||||
Discount rate | 4.15% | 4.43% | 4.43% | |
Long-term rate of return on plan assets | 5.21% | 5.80% | 5.61% | |
Rate of compensation increase | [1] | 3.84% | 3.51% | 3.51% |
Plan obligations: | ||||
Discount rate | 3.60% | 4.15% | 4.04% | |
Rate of compensation increase | [1] | 4.40% | 3.84% | 3.51% |
[1] | The compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at December 30, 2017, December 31, 2016 and January 2, 2016. |
Defined Benefit Pension Plans89
Defined Benefit Pension Plans - Allocation of Pension Plan Assets (Detail) | Dec. 30, 2017 | Dec. 31, 2016 |
Hedge Funds | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 38.00% | 39.00% |
U.S. Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 20.00% | 20.00% |
Debt Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 18.00% | 17.00% |
Foreign Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 17.00% | 15.00% |
Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 5.00% | 5.00% |
Commodity [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 2.00% | 2.00% |
Insurance Contracts | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 0.00% | 1.00% |
Cash and Cash Equivalents [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 0.00% | 1.00% |
Defined Benefit Pension Plans90
Defined Benefit Pension Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Estimated net loss that will be amortized from accumulated other comprehensive loss | $ 19,949 | ||
Estimated prior service credit that will be amortized from accumulated other comprehensive loss | (6) | ||
Target asset allocation period | 5 years | ||
End of year | 872,686 | $ 827,169 | $ 809,217 |
Expected benefit payments, 2017 | 62,043 | ||
Expected benefit payments, 2018 | 64,066 | ||
Expected benefit payments, 2019 | 65,179 | ||
Expected benefit payments, 2020 | 69,600 | ||
Expected benefit payments, 2021 | 70,444 | ||
Expected benefit payments, Thereafter | 367,269 | ||
Nonretirement postemployment benefit plans liability | 52,943 | 48,330 | |
Nonretirment postemployement benefit plans expense | 2,778 | 1,824 | |
Fair Value, Measurements, Recurring | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
End of year | 270,598 | 235,909 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
End of year | 268,404 | 232,575 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
End of year | 2,194 | 3,334 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
End of year | $ 0 | $ 0 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Computed by Applying U.S. Statutory Rate to Income Before Taxes as Reconciled to Actual Provisions (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Income Taxes Provision For Income Tax Computed By Applying U S Statutory Rate To Income Before Taxes As Reconciled To Actual Provisions [Abstract] | |||
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate,EPS | $ 0.01 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,800 | $ 1,300 | $ 2,200 |
Domestic | (6.60%) | (10.20%) | 5.60% |
Foreign | 106.60% | 110.20% | 94.40% |
Total | 100.00% | 100.00% | 100.00% |
Tax expense at U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State income tax | 0.20% | (0.70%) | 1.10% |
Tax on remittance of foreign earnings | 0.50% | 9.90% | 9.10% |
Tax on remittance of foreign earnings due to U.S. tax reform | 67.00% | ||
Revaluation of net deferred tax assets due to U.S. tax reform | 14.30% | ||
Foreign taxes less than U.S. statutory rate | (27.40%) | (38.50%) | (30.80%) |
Employee benefits | (0.20%) | (0.70%) | 0.40% |
Change in valuation allowance | 0.10% | 1.20% | 2.60% |
Increase in unrecognized tax benefits | 1.80% | 0.60% | 0.10% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 24,032 | ||
Release of unrecognized tax benefit reserves | (0.90%) | (0.40%) | (9.80%) |
State Tax Rate Change, Net of Federal Benefit, Percent | 0.10% | 0.60% | 2.30% |
Federal and state provision to return | (2.60%) | (0.70%) | (0.40%) |
Other, net | 0.20% | (0.30%) | (0.10%) |
Taxes at effective worldwide tax rates | 88.10% | 6.00% | 9.50% |
Income taxes - Current and Defe
Income taxes - Current and Deferred Tax Provisions (Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Income Taxes Current And Deferred Tax Provisions Benefits [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,800 | $ 1,300 | $ 2,200 |
Domestic, current | 154,751 | 2,768 | (2,294) |
Foreign, current | 10,603 | 38,257 | 32,067 |
State, current | 68,857 | 2,083 | 4,395 |
Current Total | 234,211 | 43,108 | 34,168 |
Deferred, Domestic | 260,393 | 34,590 | 9,437 |
Deferred, Foreign | (15,098) | (34,232) | (10,235) |
Deferred, State | (6,227) | (9,194) | 11,648 |
Deferred, Total | 239,068 | (8,836) | 10,850 |
Total, Domestic | 415,144 | 37,358 | 7,143 |
Total, Foreign | (4,495) | 4,025 | 21,832 |
Total, State | 62,630 | (7,111) | 16,043 |
Total, Current and deferred tax provisions (benefits) | $ 473,279 | $ 34,272 | $ 45,018 |
Income Taxes - Cash Tax Payment
Income Taxes - Cash Tax Payments Made by Company Primarily in Foreign Jurisdictions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Income Taxes Cash Tax Payments Made By Company Primarily In Foreign Jurisdictions [Abstract] | |||
Cash payments for income taxes | $ 57,882 | $ 39,655 | $ 23,045 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 |
Deferred tax assets: | ||||
Nondeductible reserves | $ 1,859 | $ 1,962 | ||
Inventories | 57,857 | 123,507 | ||
Property and equipment | 0 | 3,322 | ||
Bad debt allowance | 7,363 | 6,965 | ||
Accrued expenses | 14,399 | 20,351 | ||
Employee benefits | 143,970 | 181,148 | ||
Tax credits | 10,140 | 45,783 | ||
Net operating loss and other tax carryforwards | 142,064 | 210,284 | ||
Derivatives | 3,305 | 0 | ||
Other | 17,305 | 20,355 | ||
Gross deferred tax assets | 398,262 | 613,677 | ||
Less valuation allowances | (72,602) | (67,451) | $ (61,358) | $ (43,757) |
Deferred tax assets | 325,660 | 546,226 | ||
Deferred Tax Liabilities, Net [Abstract] | ||||
Property and equipment | 4,455 | 0 | ||
Derivatives | 0 | 5,103 | ||
Intangibles | 120,033 | 121,674 | ||
Prepaids | 3,932 | 5,728 | ||
Deferred tax liabilities | 128,420 | 132,505 | ||
Net deferred tax assets | $ 197,240 | $ 413,721 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | |
Unrecognized Tax Benefits [Line Items] | ||||
Income tax expense | $ 473,279,000 | $ 34,272,000 | $ 45,018,000 | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,800,000 | 1,300,000 | $ 2,200,000 | |
Effective rate reconciliation, federal statutory income tax rate, per diluted share | $ 0.01 | $ 0.01 | ||
Valuation allowance for deferred tax assets | $ 72,602,000 | 67,451,000 | $ 61,358,000 | $ 43,757,000 |
Document Fiscal Year Focus | 2,017 | |||
Net change in the total valuation allowance, including foreign currency fluctuations | $ 5,151,000 | |||
Net operating loss carryforwards, approximately, for foreign jurisdictions | 324,833,000 | |||
Tax credit carryforwards, Total | $ 10,140,000 | |||
Years after which tax credit carryforwards expires | beginning after 2020 | |||
Recognized Benefit Related to Realization of Unrecognized Tax Benefit Resulting from Expiration of Statutes of Limitations | $ 4,227,000 | 4,146,000 | ||
Reduction of unrecognized tax benefits | $ 4,963,000 | |||
Unrecognized tax benefits increase or decrease | 12 months | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 24,032,000 | |||
Interest and penalties classified as income tax expense in the Consolidated Statement of Income | 760,000 | 549,000 | $ 3,669,000 | |
Interest and penalties accrued related to unrecognized tax benefits | 4,011,000 | $ 3,251,000 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 56,427,000 | |||
Federal | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Net operating loss carryforwards | 12,810,000 | |||
State | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Net operating loss carryforwards | 916,529,000 | |||
Valuation Allowance, Operating Loss Carryforwards [Member] | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Valuation allowance for deferred tax assets | 9,061,000 | |||
Valuation Allowance, Operating Loss Carryforwards [Member] | Foreign Tax Authority | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Valuation allowance for deferred tax assets | 48,862,000 | |||
Net change in the total valuation allowance, including foreign currency fluctuations | 11,725,000 | |||
Valuation Allowance, Operating Loss Carryforwards [Member] | Federal and State | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Net change in the total valuation allowance, including foreign currency fluctuations | (6,574,000) | |||
Other Foreign Deferred Tax Assets [Member] | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Valuation allowance for deferred tax assets | 14,679,000 | |||
Domestic Deferred Tax Assets | Tax Cuts and Jobs Act | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Income tax expense | 72,333 | |||
One-time provisional transition | Tax Cuts and Jobs Act | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Income tax expense | 359,938 | |||
Additional provisional | Tax Cuts and Jobs Act | ||||
Unrecognized Tax Benefits [Line Items] | ||||
Income tax expense | $ 2,971 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Disclosure Income Taxes Net Operating Loss Carryforwards [Abstract] | |
2,018 | $ 8,671 |
2,019 | 23,809 |
2,020 | 4,435 |
2,021 | 6,326 |
2,022 | 2,676 |
Thereafter | $ 278,916 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Income Taxes Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits, Gross | $ 26,175 | $ 20,688 | $ 20,085 |
Beginning Balance | 19,696 | 19,780 | |
Additions based on tax positions related to the current year | 7,902 | 4,648 | |
Additions for tax positions of prior years | 36 | 106 | |
Reductions for tax positions of prior years | (3,602) | (4,838) | |
Ending Balance | $ 24,032 | $ 19,696 | $ 19,780 |
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate,EPS | $ 0.01 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,800 | $ 1,300 | $ 2,200 |
Income Taxes Summary of changes
Income Taxes Summary of changes in valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | |||
Valuation Allowance [Line Items] | ||||||
Valuation allowance for deferred tax assets | $ 72,602 | $ 67,451 | $ 61,358 | $ 43,757 | ||
Change in valuation allowance | 5,151 | |||||
Charged to expense | ||||||
Valuation Allowance [Line Items] | ||||||
Change in valuation allowance | 729 | 6,859 | 12,224 | |||
Charged to other accounts | ||||||
Valuation Allowance [Line Items] | ||||||
Change in valuation allowance | $ 4,422 | [1] | $ (766) | $ 5,377 | [1] | |
[1] | Charges to other accounts include the effects of foreign currency translation and purchase accounting adjustments. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 05, 2017$ / shares | Sep. 06, 2017$ / shares | Jun. 06, 2017$ / shares | Mar. 07, 2017$ / shares | Mar. 03, 2015 | Feb. 28, 2018$ / shares | Jan. 28, 2017$ / shares | Dec. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / shares | Apr. 27, 2016shares | Dec. 29, 2007shares |
Class of Stock [Line Items] | ||||||||||||
Preferred stock, shares issued | 0 | 0 | ||||||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Common stock, shares issued | 360,125,894 | 378,687,052 | ||||||||||
Common stock, shares outstanding | 360,125,894 | 378,687,052 | ||||||||||
Document Fiscal Year Focus | 2,017 | |||||||||||
Common stock repurchased, Cost | $ | $ 400,017 | $ 379,901 | $ 351,495 | |||||||||
Dividends declared, common stock | $ / shares | $ 0.15 | $ 0.11 | $ 0.1 | |||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||||||
Stock Split, Conversion Ratio | 4 | |||||||||||
Percent of dividend paid in stock | 300.00% | |||||||||||
2016 Share Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase of common stock, Authority granted | 40,000,000 | |||||||||||
Common Stock, Repurchased | 19,640,000 | |||||||||||
Common stock repurchased, Cost | $ | $ 400,017 | |||||||||||
Common stock repurchased, Average price | $ / shares | $ 20.35 | |||||||||||
Remaining number of shares authorized for repurchase | 20,360,000 | |||||||||||
2007 Share Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase of common stock, Authority granted | 40,000,000 | |||||||||||
Common Stock, Repurchased | 19,640,000 | 14,243,000 | ||||||||||
Common stock repurchased, Cost | $ | $ 400,017 | $ 379,901 | ||||||||||
Common stock repurchased, Average price | $ / shares | $ 20.35 | $ 26.65 | ||||||||||
Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends declared, common stock | $ / shares | $ 0.15 |
Business Segment Information -
Business Segment Information - Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Net sales: | |||||||||||
Net sales | $ 1,645,175 | $ 1,799,270 | $ 1,646,610 | $ 1,380,355 | $ 1,575,309 | $ 1,761,019 | $ 1,472,731 | $ 1,219,140 | $ 6,471,410 | $ 6,028,199 | $ 5,731,549 |
Innerwear | |||||||||||
Net sales: | |||||||||||
Net sales | 2,462,876 | 2,543,717 | 2,609,402 | ||||||||
Outerwear | |||||||||||
Net sales: | |||||||||||
Net sales | 1,654,278 | 1,601,108 | 1,605,423 | ||||||||
Direct to Consumer | |||||||||||
Net sales: | |||||||||||
Net sales | 299,592 | 351,461 | 384,087 | ||||||||
International | |||||||||||
Net sales: | |||||||||||
Net sales | $ 2,054,664 | $ 1,531,913 | $ 1,132,637 |
Business Segment Information101
Business Segment Information - Segment Operating Profit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Segment operating profit: | |||
General corporate expenses | $ (89,690) | $ (64,995) | $ (106,379) |
Acquisition, integration and other action-related charges | (192,752) | (138,519) | (266,060) |
Amortization of intangibles | (34,892) | (22,118) | (23,737) |
Total operating profit | 723,068 | 775,649 | 595,118 |
Other expenses | (11,363) | (51,758) | (3,210) |
Interest expense, net | (174,435) | (152,692) | (118,035) |
Income from continuing operations before income tax expense | 537,270 | 571,199 | 473,873 |
Innerwear | |||
Segment operating profit: | |||
Total operating profit | 528,038 | 563,905 | 596,634 |
Outerwear | |||
Segment operating profit: | |||
Total operating profit | 227,589 | 224,658 | 245,563 |
Direct to Consumer | |||
Segment operating profit: | |||
Total operating profit | 23,364 | 32,801 | 43,582 |
International | |||
Segment operating profit: | |||
Total operating profit | 261,411 | 179,917 | 105,515 |
Operating Segments | |||
Segment operating profit: | |||
Total operating profit | $ 1,040,402 | $ 1,001,281 | $ 991,294 |
Business Segment Information102
Business Segment Information - Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | |
Assets: | |||
Total assets | $ 6,894,775 | $ 6,930,480 | |
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 45,897 | |
Corporate, Non-Segment | |||
Assets: | |||
Total assets | [1] | 3,016,802 | 3,132,042 |
Operating Segments | |||
Assets: | |||
Total assets | 3,877,973 | 3,752,541 | |
Operating Segments | Innerwear | |||
Assets: | |||
Total assets | 1,578,023 | 1,604,088 | |
Operating Segments | Outerwear | |||
Assets: | |||
Total assets | 872,132 | 874,006 | |
Operating Segments | Direct to Consumer | |||
Assets: | |||
Total assets | 151,980 | 160,475 | |
Operating Segments | International | |||
Assets: | |||
Total assets | $ 1,275,838 | $ 1,113,972 | |
[1] | Principally cash and equivalents, certain fixed assets, net deferred tax assets, goodwill, trademarks and other identifiable intangibles, and certain other noncurrent assets. |
Business Segment Information103
Business Segment Information - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | $ 122,487 | $ 103,175 | $ 103,903 |
Innerwear | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | 32,000 | 36,591 | 38,136 |
Outerwear | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | 19,485 | 19,196 | 21,626 |
Direct to Consumer | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | 5,891 | 6,576 | 7,203 |
International | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | 30,219 | 18,694 | 13,201 |
Operating Segments | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | 87,595 | 81,057 | 80,166 |
Corporate Segment | |||
Depreciation and amortization expense: | |||
Segment depreciation and amortization expense | $ 34,892 | $ 22,118 | $ 23,737 |
Business Segment Information104
Business Segment Information - Additions to Long-Lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Additions to long-lived assets: | |||
Total additions to long-lived assets | $ 87,008 | $ 83,399 | $ 99,375 |
Operating Segments | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | 67,272 | 67,469 | 93,338 |
Operating Segments | Innerwear | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | 21,427 | 28,078 | 43,170 |
Operating Segments | Outerwear | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | 11,263 | 11,518 | 22,331 |
Operating Segments | Direct to Consumer | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | 3,455 | 4,353 | 9,815 |
Operating Segments | International | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | 31,127 | 23,520 | 18,022 |
Corporate, Non-Segment | |||
Additions to long-lived assets: | |||
Total additions to long-lived assets | $ 19,736 | $ 15,930 | $ 6,037 |
Business Segment Information105
Business Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Percentage sales in the Innerwear and Activewear segments | 23.00% | ||||||||||
Document Fiscal Year Focus | 2,017 | ||||||||||
Worldwide sales by product category | $ 1,645,175 | $ 1,799,270 | $ 1,646,610 | $ 1,380,355 | $ 1,575,309 | $ 1,761,019 | $ 1,472,731 | $ 1,219,140 | $ 6,471,410 | $ 6,028,199 | $ 5,731,549 |
Acquisition, integration and other action related charges | 197,904 | 185,810 | 266,060 | ||||||||
Change in fair value of contingent consideration liability | 27,852 | 0 | 0 | ||||||||
Other Employee Related Liabilities | 22,302 | $ 32,542 | 22,302 | 32,542 | |||||||
Employee termination and other benefits paid | 10,240 | ||||||||||
Innerwear Product Category | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Worldwide sales by product category | 4,257,877 | 4,112,598 | 3,973,645 | ||||||||
Outerwear Product Category | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Worldwide sales by product category | $ 2,213,533 | $ 1,915,601 | $ 1,757,904 | ||||||||
Wal-Mart | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Percentage sales in the Innerwear and Activewear segments | 18.00% | 20.00% | |||||||||
Target | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Percentage sales in the Innerwear and Activewear segments | 13.00% | 15.00% | 15.00% | ||||||||
Cost of sales | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition, integration and other action related charges | $ 54,970 | $ 39,379 | $ 62,859 | ||||||||
Other Expense | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition, integration and other action related charges | 47,291 | ||||||||||
Selling, General and Administrative Expenses | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition, integration and other action related charges | 109,930 | $ 99,140 | $ 203,201 | ||||||||
Accrued Liabilities | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Other Employee Related Liabilities | 11,531 | 11,531 | |||||||||
Other Noncurrent Liabilities | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Other Employee Related Liabilities | $ 10,771 | $ 10,771 |
Geographic Area Information - S
Geographic Area Information - Sales and Long Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,645,175 | $ 1,799,270 | $ 1,646,610 | $ 1,380,355 | $ 1,575,309 | $ 1,761,019 | $ 1,472,731 | $ 1,219,140 | $ 6,471,410 | $ 6,028,199 | $ 5,731,549 |
Long-Lived Assets | 623,991 | 692,464 | 623,991 | 692,464 | 650,462 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 4,417,885 | 4,489,593 | 4,594,665 | ||||||||
Long-Lived Assets | 130,029 | 134,119 | 130,029 | 134,119 | 130,235 | ||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 283,959 | 290,698 | 301,010 | ||||||||
Long-Lived Assets | 20,937 | 18,776 | 20,937 | 18,776 | 20,777 | ||||||
Australia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 592,285 | 278,298 | 23,073 | ||||||||
Long-Lived Assets | 50,671 | 41,970 | 50,671 | 41,970 | 579 | ||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 112,408 | 96,381 | 103,911 | ||||||||
Long-Lived Assets | 44,608 | 39,189 | 44,608 | 39,189 | 17,242 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 79,420 | 90,585 | 105,869 | ||||||||
Long-Lived Assets | 1,289 | 1,093 | 1,289 | 1,093 | 1,196 | ||||||
Spain | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 67,475 | 65,207 | 58,824 | ||||||||
Long-Lived Assets | 8,453 | 6,818 | 8,453 | 6,818 | 7,464 | ||||||
Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 203,521 | 182,307 | 119,693 | ||||||||
Long-Lived Assets | 1,547 | 942 | 1,547 | 942 | 867 | ||||||
Italy | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 275,047 | 174,095 | 93,667 | ||||||||
Long-Lived Assets | 16,941 | 15,405 | 16,941 | 15,405 | 16,785 | ||||||
Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 120,236 | 110,748 | 104,311 | ||||||||
Long-Lived Assets | 14,102 | 13,649 | 14,102 | 13,649 | 15,573 | ||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 64,175 | 60,362 | 66,197 | ||||||||
Long-Lived Assets | 1,591 | 1,453 | 1,591 | 1,453 | 1,809 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 55,290 | 32,409 | 29,484 | ||||||||
Long-Lived Assets | 784 | 825 | 784 | 825 | 942 | ||||||
Brazil | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 34,617 | 28,829 | 31,934 | ||||||||
Long-Lived Assets | 4,444 | 5,051 | 4,444 | 5,051 | 4,322 | ||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 8,324 | 5,338 | 5,016 | ||||||||
Long-Lived Assets | 2,350 | 97,194 | 2,350 | 97,194 | 106,575 | ||||||
Central America and Caribbean Basin | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,844 | 2,846 | 4,180 | ||||||||
Long-Lived Assets | 276,547 | 269,996 | 276,547 | 269,996 | 276,402 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 154,924 | 120,503 | 89,715 | ||||||||
Long-Lived Assets | $ 49,698 | $ 45,984 | $ 49,698 | $ 45,984 | $ 49,694 |
Quarterly Financial Data - Quar
Quarterly Financial Data - Quarterly Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Disclosure Quarterly Financial Data Quarterly Information [Abstract] | |||||||||||
Net sales | $ 1,645,175 | $ 1,799,270 | $ 1,646,610 | $ 1,380,355 | $ 1,575,309 | $ 1,761,019 | $ 1,472,731 | $ 1,219,140 | $ 6,471,410 | $ 6,028,199 | $ 5,731,549 |
Gross profit | 626,661 | 678,457 | 645,902 | 539,531 | 612,135 | 649,366 | 557,291 | 457,256 | 2,490,551 | 2,276,048 | 2,136,332 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (384,611) | 203,356 | 172,164 | 73,082 | 155,725 | 172,790 | 128,143 | 80,269 | 63,991 | 536,927 | 428,855 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 368 | (2,465) | 1,387 | 1,068 | 0 | 0 | (2,097) | 2,455 | 0 |
Income from continuing operations | $ (384,611) | $ 203,356 | $ 172,532 | $ 70,617 | $ 157,112 | $ 173,858 | $ 128,143 | $ 80,269 | $ 61,894 | $ 539,382 | $ 428,855 |
Continuing operations | $ (1.06) | $ 0.56 | $ 0.47 | $ 0.20 | $ 0.41 | $ 0.46 | $ 0.34 | $ 0.21 | $ 0.17 | $ 1.41 | $ 1.07 |
Discontinued operations | 0 | 0 | 0 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | 0.01 | 0 |
Continuing operations | (1.06) | 0.55 | 0.47 | 0.19 | 0.41 | 0.45 | 0.34 | 0.21 | 0.17 | 1.40 | 1.06 |
Discontinued operations | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0.01 | $ 0 |
Basic weighted average shares outstanding | 367,680 | 381,782 | 399,891 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 369,426 | 384,566 | 403,659 | ||||||||
Earnings (loss) per share — basic: | |||||||||||
Basic | $ 0.17 | $ 1.41 | $ 1.07 | ||||||||
Earnings (loss) per share — diluted: | |||||||||||
Diluted | $ 0.17 | $ 1.40 | $ 1.06 |