| Business Segment Information | Business Segment Information The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S. value-based (“outlet”) stores and U.S. hosiery business. 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, integration and other action-related charges and amortization of intangibles. In the first quarter of 2018, the Company eliminated the allocation of certain corporate overhead selling, general and administrative expenses related to the legal, human resources, information technology, finance and real estate departments to the segments, in order to reflect the manner in which the business is managed and results are reviewed by the chief executive officer, who is the Company’s chief operating decision maker. Prior year segment operating profit disclosures have been revised to conform to the current year presentation. The accounting policies of the segments are consistent with those described in Note 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 30, 2017 . Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Net sales: Innerwear $ 599,726 $ 644,059 $ 1,785,498 $ 1,868,255 Activewear 554,953 519,496 1,306,863 1,226,595 International 619,435 556,730 1,735,184 1,509,370 Other 74,593 78,985 208,109 222,015 Total net sales $ 1,848,707 $ 1,799,270 $ 5,035,654 $ 4,826,235 Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Segment operating profit: Innerwear $ 132,244 $ 152,983 $ 392,792 $ 447,233 Activewear 93,605 87,497 189,400 189,819 International 99,624 78,394 253,243 191,203 Other 8,400 12,109 18,187 22,453 Total segment operating profit 333,873 330,983 853,622 850,708 Items not included in segment operating profit: General corporate expenses (46,161 ) (45,364 ) (136,694 ) (127,210 ) Acquisition, integration and other action-related charges (20,732 ) (16,874 ) (65,514 ) (81,303 ) Amortization of intangibles (10,091 ) (10,279 ) (28,404 ) (23,595 ) Total operating profit 256,889 258,466 623,010 618,600 Other expenses (7,285 ) (7,043 ) (19,616 ) (20,010 ) Interest expense, net (52,795 ) (43,917 ) (146,988 ) (130,184 ) Income from continuing operations before income tax expense $ 196,809 $ 207,506 $ 456,406 $ 468,406 For the quarter ended September 29, 2018 , the Company incurred $20,732 of acquisition, integration and other action-related charges that impact operating profit, of which $11,760 is reported in the “Cost of sales” line and $8,972 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter ended September 30, 2017 , the Company incurred $16,874 of acquisition-related and integration charges, of which $2,230 is reported in the “Cost of sales” line and $14,644 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the nine months ended September 29, 2018 , the Company incurred acquisition, integration and other action-related charges that impact operating profit of $65,514 , of which $33,596 is reported in the “Cost of sales” line and $31,918 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the nine months ended September 30, 2017 , the Company incurred acquisition-related and integration charges of $81,303 , of which $21,989 is reported in the “Cost of sales” line and $59,314 is reported in the “Selling, general and administrative expenses” line in the Condensed 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 or will be eliminated. As of December 30, 2017 , the Company had accrued $22,302 for expected benefit payments related to employee termination and other benefits for affected employees. During the nine months ended September 29, 2018 , there were net $8,484 of benefit payments, accrual adjustments and foreign currency adjustments, resulting in an ending accrual of $13,818 , of which $7,509 and $6,309 is included in the “Accrued liabilities” and “Other noncurrent liabilities” lines of the Condensed Consolidated Balance Sheet, respectively. |
