Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001359841 | |
Current Fiscal Year End Date | --12-28 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32891 | |
Entity Registrant Name | Hanesbrands Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-3552316 | |
Entity Address, Address Line One | 1000 East Hanes Mill Road | |
Entity Address, City or Town | Winston-Salem, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27105 | |
City Area Code | 336 | |
Local Phone Number | 519-8080 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | HBI | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 361,697,127 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudted) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,866,967 | $ 1,848,707 | $ 5,215,918 | $ 5,035,654 |
Cost of sales | 1,154,629 | 1,136,040 | 3,208,025 | 3,084,110 |
Gross profit | 712,338 | 712,667 | 2,007,893 | 1,951,544 |
Selling, general and administrative expenses | 442,582 | 455,778 | 1,356,082 | 1,328,534 |
Operating profit | 269,756 | 256,889 | 651,811 | 623,010 |
Other expenses | 8,066 | 7,285 | 23,766 | 19,616 |
Interest expense, net | 43,091 | 52,795 | 137,672 | 146,988 |
Income before income tax expense | 218,599 | 196,809 | 490,373 | 456,406 |
Income tax expense | 30,823 | 25,388 | 69,143 | 64,943 |
Net income | $ 187,776 | $ 171,421 | $ 421,230 | $ 391,463 |
Earnings per share: | ||||
Basic | $ 0.51 | $ 0.47 | $ 1.16 | $ 1.08 |
Diluted | $ 0.51 | $ 0.47 | $ 1.15 | $ 1.07 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 187,776 | $ 171,421 | $ 421,230 | $ 391,463 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Translation adjustments | (44,997) | (19,887) | (33,738) | (82,664) |
Net unrealized gain (loss) on qualifying cash flow hedges | 2,059 | 2,402 | (7,018) | 26,060 |
Net unrecognized income from pension and postretirement plans | 3,605 | 3,541 | 10,555 | 9,312 |
Total other comprehensive loss, net of tax of ($2,278), ($1,236), ($1,321) and ($12,315), respectively | (39,333) | (13,944) | (30,201) | (47,292) |
Comprehensive income | $ 148,443 | $ 157,477 | $ 391,029 | $ 344,171 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) [Abstract] | ||||
Tax on other comprehensive income | $ (2,278) | $ (1,236) | $ (1,321) | $ (12,315) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Assets | |||
Cash and cash equivalents | $ 317,024 | $ 433,022 | $ 398,499 |
Trade accounts receivable, net | 1,033,938 | 870,878 | 1,044,516 |
Inventories | 2,108,281 | 2,054,458 | 2,139,281 |
Other current assets | 166,727 | 159,231 | 154,909 |
Total current assets | 3,625,970 | 3,517,589 | 3,737,205 |
Property, net | 581,971 | 607,688 | 607,649 |
Right-of-use assets | 475,037 | 0 | 0 |
Trademarks and other identifiable intangibles, net | 1,493,969 | 1,555,381 | 1,586,148 |
Goodwill | 1,223,216 | 1,241,727 | 1,252,524 |
Deferred tax assets | 257,314 | 249,693 | 191,649 |
Other noncurrent assets | 115,821 | 83,880 | 80,331 |
Total assets | 7,773,298 | 7,255,958 | 7,455,506 |
Liabilities and Stockholders’ Equity | |||
Accounts payable | 997,069 | 1,029,933 | 975,138 |
Accrued liabilities | 589,992 | 553,901 | 531,740 |
Lease liabilities | 145,055 | 0 | 0 |
Notes payable | 4,275 | 5,824 | 14,051 |
Accounts Receivable Securitization Facility | 208,604 | 161,608 | 221,979 |
Current portion of long-term debt | 151,909 | 278,976 | 284,220 |
Total current liabilities | 2,096,904 | 2,030,242 | 2,027,128 |
Long-term debt | 3,467,591 | 3,534,183 | 3,863,580 |
Lease liabilities - noncurrent | 364,083 | 0 | 0 |
Pension and postretirement benefits | 348,674 | 378,972 | 386,647 |
Other noncurrent liabilities | 265,804 | 342,278 | 307,563 |
Total liabilities | 6,543,056 | 6,285,675 | 6,584,918 |
Stockholders’ equity: | |||
Preferred stock (50,000,000 authorized shares; $.01 par value) Issued and outstanding - None | 0 | 0 | 0 |
Common stock (2,000,000,000 authorized shares; $.01 par value) Issued and outstanding - 361,612,383, 361,330,128, and 360,660,993, respectively | 3,616 | 3,613 | 3,607 |
Additional paid-in capital | 310,327 | 284,877 | 275,671 |
Retained earnings | 1,528,258 | 1,184,735 | 1,077,808 |
Accumulated other comprehensive loss | (611,959) | (502,942) | (486,498) |
Total stockholders’ equity | 1,230,242 | 970,283 | 870,588 |
Total liabilities and stockholders’ equity | $ 7,773,298 | $ 7,255,958 | $ 7,455,506 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 361,612,383 | 361,330,128 | 360,660,993 |
Common stock, shares outstanding | 361,612,383 | 361,330,128 | 360,660,993 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 30, 2017 | $ 686,202 | $ 3,601 | $ 271,462 | $ 850,345 | $ (439,206) |
Beginning Balance, Shares at Dec. 30, 2017 | 360,126,000 | ||||
Net income | 391,463 | 391,463 | |||
Dividends | $ (164,000) | (164,000) | |||
Dividends, per share | $ 0.45 | ||||
Other comprehensive loss | $ (47,292) | (47,292) | |||
Stock-based compensation | 4,367 | 4,367 | 0 | ||
Net exercise of stock options, vesting of restricted stock units and other, shares | 535,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (152) | $ 6 | (158) | ||
Ending Balance at Sep. 29, 2018 | $ 870,588 | $ 3,607 | 275,671 | 1,077,808 | (486,498) |
Ending Balance, Shares at Sep. 29, 2018 | 360,660,993 | 360,661,000 | |||
Beginning Balance at Jun. 30, 2018 | $ 767,191 | $ 3,605 | 275,120 | 961,020 | (472,554) |
Beginning Balance, Shares at Jun. 30, 2018 | 360,504,000 | ||||
Net income | 171,421 | 171,421 | |||
Dividends | $ (54,633) | (54,633) | |||
Dividends, per share | $ 0.15 | ||||
Other comprehensive loss | $ (13,944) | (13,944) | |||
Stock-based compensation | 1,498 | 1,498 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 157,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (945) | $ 2 | (947) | ||
Ending Balance at Sep. 29, 2018 | $ 870,588 | $ 3,607 | 275,671 | 1,077,808 | (486,498) |
Ending Balance, Shares at Sep. 29, 2018 | 360,660,993 | 360,661,000 | |||
Beginning Balance at Dec. 29, 2018 | $ 970,283 | $ 3,613 | 284,877 | 1,184,735 | (502,942) |
Beginning Balance, Shares at Dec. 29, 2018 | 361,330,128 | 361,330,000 | |||
Net income | $ 421,230 | 421,230 | |||
Dividends | $ (164,500) | (164,500) | |||
Dividends, per share | $ 0.45 | ||||
Other comprehensive loss | $ (30,201) | (30,201) | |||
Stock-based compensation | 8,506 | 8,506 | 0 | ||
Net exercise of stock options, vesting of restricted stock units and other, shares | 282,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | 2,573 | $ 3 | 2,570 | ||
Modification of deferred compensation plans | 14,374 | 14,374 | 0 | 0 | |
Cumulative effect of change in adoption of leases standard | 7,977 | 0 | 0 | 7,977 | 0 |
Stranded tax related to U.S. pension plan | 0 | 78,816 | (78,816) | ||
Ending Balance at Sep. 28, 2019 | $ 1,230,242 | $ 3,616 | 310,327 | 1,528,258 | (611,959) |
Ending Balance, Shares at Sep. 28, 2019 | 361,612,383 | 361,612,000 | |||
Beginning Balance at Jun. 29, 2019 | $ 1,134,850 | $ 3,615 | 308,555 | 1,395,306 | (572,626) |
Beginning Balance, Shares at Jun. 29, 2019 | 361,531,000 | ||||
Net income | 187,776 | 187,776 | |||
Dividends | $ (54,824) | (54,824) | |||
Dividends, per share | $ 0.15 | ||||
Other comprehensive loss | $ (39,333) | (39,333) | |||
Stock-based compensation | 1,467 | 1,467 | 0 | ||
Net exercise of stock options, vesting of restricted stock units and other, shares | 81,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | 306 | $ 1 | 305 | ||
Ending Balance at Sep. 28, 2019 | $ 1,230,242 | $ 3,616 | $ 310,327 | $ 1,528,258 | $ (611,959) |
Ending Balance, Shares at Sep. 28, 2019 | 361,612,383 | 361,612,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Operating activities: | |||||
Net income | $ 187,776 | $ 171,421 | $ 421,230 | $ 391,463 | |
Adjustments to reconcile net income to net cash from operating activities: | |||||
Depreciation | 71,612 | 70,910 | |||
Amortization of acquisition intangibles | 18,709 | 20,544 | |||
Other amortization | 7,521 | 7,860 | |||
Amortization of debt issuance costs | 7,021 | 6,951 | |||
Stock compensation expense | 8,794 | 4,621 | |||
Deferred taxes | (3,661) | (3,451) | |||
Other | 8,737 | (719) | |||
Changes in assets and liabilities, net of acquisition of business: | |||||
Accounts receivable | (170,348) | (156,509) | |||
Inventories | (72,096) | (278,962) | |||
Other assets | (40,732) | 42,122 | |||
Accounts payable | (11,969) | 116,189 | |||
Accrued pension and postretirement benefits | (14,361) | (4,840) | |||
Accrued liabilities and other | 14,243 | (74,890) | |||
Net cash from operating activities | 244,700 | 141,289 | |||
Investing activities: | |||||
Capital expenditures | (79,950) | (63,472) | |||
Proceeds from sales of assets | 3,530 | 1,779 | |||
Acquisition of business, net of cash acquired | (21,360) | (334,916) | |||
Net cash from investing activities | (97,780) | (396,609) | |||
Financing activities: | |||||
Borrowings on notes payable | 250,712 | 217,709 | |||
Repayments on notes payable | (252,084) | (217,987) | |||
Borrowings on Accounts Receivable Securitization Facility | 207,105 | 191,896 | |||
Repayments on Accounts Receivable Securitization Facility | (160,110) | (95,126) | |||
Borrowings on Revolving Loan Facilities | 2,584,277 | 2,841,860 | |||
Repayments on Revolving Loan Facilities | (2,585,592) | (2,488,500) | |||
Repayments on Term Loan Facilities | (152,248) | (22,500) | |||
Borrowings on International Debt | 27,680 | 0 | |||
Repayments on International Debt | (41,424) | (1,105) | |||
Cash dividends paid | (162,689) | (162,200) | |||
Payments to amend and refinance credit facilities | (1,098) | (633) | |||
Payment of contingent consideration | 0 | (3,540) | |||
Taxes paid related to net shares settlement of equity awards | (1,523) | (5,778) | |||
Other | 1,378 | 486 | |||
Net cash from financing activities | (285,616) | 254,582 | |||
Effect of changes in foreign exchange rates on cash | 1,008 | 879 | |||
Change in cash, cash equivalents and restricted cash | (137,688) | 141 | |||
Cash, cash equivalents and restricted cash at beginning of year | 455,732 | 421,566 | $ 421,566 | ||
Cash, cash equivalents and restricted cash at end of period | 318,044 | 421,707 | 318,044 | 421,707 | 455,732 |
Less restricted cash at end of period | 1,020 | 23,208 | 1,020 | 23,208 | |
Cash and cash equivalents per balance sheet at end of period | $ 317,024 | $ 398,499 | 317,024 | $ 398,499 | 433,022 |
Capital expenditures included in accounts payable | $ 7,913 | $ 20,275 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair statement of the results of operations, financial condition and cash flows of Hanesbrands Inc. and its consolidated subsidiaries (the “Company” or “Hanesbrands”). In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the results of operations, financial condition and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. Two subsidiaries of the Company close one day after the Company’s consolidated quarter 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. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2018 Annual Report on Form 10-K. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. The standard also resulted in enhanced quantitative and qualitative disclosures surrounding leases. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients and interim transition disclosure requirements. The new rules were effective for the Company in the first quarter of 2019. The Company adopted the new rules utilizing the modified retrospective method and recognized a $7,977 cumulative effect adjustment in retained earnings at the beginning of the period of adoption. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard which among other things, allowed the Company to carry forward the historical lease classification. The Company did not elect the hindsight practical expedient to determine the lease term for existing leases. Adoption of the new standard resulted in the recording of lease assets and lease liabilities of $507,669 and $535,054 , respectively as of December 30, 2018. 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 standard was effective for the Company in the first quarter of 2019. 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. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new rules allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The new rules were effective for the Company in the first quarter of 2019. The Company reclassified $78,816 from accumulated other comprehensive loss to retained earnings for stranded tax effects related to the Company’s U.S. pension plan. The Company uses a portfolio approach to release the income tax effects in accumulated other comprehensive loss related to pension and postretirement benefits. Under this approach, the income tax effects are released from accumulated other comprehensive loss based on the pre-tax adjustments to pension liabilities or assets recognized within other comprehensive income. Any tax effects remaining in accumulated other comprehensive loss are released only when the entire portfolio of the pension and postretirement benefits is liquidated, sold or extinguished. Codification Improvements In July 2018, the FASB issued ASU 2018-09, “Codification Improvements.” The new rules clarify guidance around several subtopics by adopting enhanced verbiage to the following subtopics: reporting comprehensive income, debt modifications and extinguishments, distinguishing liabilities from equity, stock compensation, business combinations, derivatives and hedging, fair value measurement and defined contribution pension plans. The standard was effective for the Company in the first quarter of 2019. 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. Statements of Stockholders’ Equity In August 2018, the SEC amended Rule 3-04 of Regulation S-X to extend the annual disclosure requirement for changes in stockholders’ equity and the amount of dividends per share for each class of shares to interim periods. The disclosures can be included either in a note to the financial statements or in a separate financial statement. The disclosures require both year to date information and subtotals for each interim period. The amendment was effective for the Company in the first quarter of 2019. The Company has elected to include condensed consolidated statements of stockholders’ equity, which include disclosure of the dividends per share in each period, as a separate statement in its interim financial statements within all applicable SEC filings. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The new rules eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The new rules will be effective for the Company in the first quarter of 2020. The Company expects the new rules to apply to its trade receivables, but does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations or 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 or cash flows. Fair Value In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),” which modifies the disclosure requirements on fair value measurements. 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 or cash flows; however, its disclosures will be impacted. Retirement Benefits In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20).” The new rule expands disclosure requirements for employer sponsored defined benefit pension and other retirement plans. The new rules will be effective for the Company in the first quarter of 2020. The Company does not expect the new accounting rules to have a material impact on the Company’s financial condition, results of operations or cash flows; however, expanded disclosures will be required. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 340-40),” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. 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 or cash flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is recognized when obligations under the terms of a contract with a customer are satisfied, which occurs at a point in time, upon either shipment or delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. Variable consideration includes trade discounts, rebates, volume-based incentives, cooperative advertising and product returns, which are offered within contracts between the Company and its customers, employing the practical expedient for contract costs. Incidental items that are immaterial to the context of the contract are recognized as expense at the transaction date. The following table presents the Company’s revenues disaggregated by the customer’s method of purchase: Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Third-party brick-and-mortar wholesale $ 1,436,935 $ 1,458,126 $ 4,029,352 $ 3,968,426 Consumer-directed 430,032 390,581 1,186,566 1,067,228 Total net sales $ 1,866,967 $ 1,848,707 $ 5,215,918 $ 5,035,654 Revenue Sources Third-Party Brick-and-Mortar Wholesale Revenue Third-party brick-and-mortar wholesale revenue is primarily generated by sales of the Company’s products to retailers to support their brick-and-mortar operations. Also included within third-party brick-and-mortar wholesale revenue is royalty revenue from licensing agreements. The Company earns royalties 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 licensees. Consumer-Directed Revenue |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Bras N Things On February 12, 2018, the Company acquired 100% of the outstanding equity of BNT Holdco Pty Limited (“Bras N Things”) for a total purchase price of A$ 498,236 (U.S. $391,572 ). During 2018, due to the final working capital adjustment, the purchase consideration was reduced by A$3,012 (U.S. $2,367 ), ultimately resulting in a revised purchase price of A$495,224 (U.S. $389,205 ), which included a cash payment of A$ 428,956 (U.S. $337,123 ), an indemnification escrow of A$ 31,988 (U.S. $25,140 ) and debt assumed of A$ 34,280 (U.S. $26,942 ). U.S. dollar equivalents are based on acquisition date exchange rates. The Company funded the acquisition with a combination of short-term borrowings under its existing revolving loan facility (the “Revolving Loan Facility”) and cash on hand. During the third quarter of 2019, A $31,425 (U.S. $21,360 ) of the indemnification escrow, including interest earned, was paid to the sellers. The remaining indemnification escrow, held in one of the Company’s bank accounts, is recognized and classified as restricted cash, with the balance as of September 28, 2019 included in the “Other current assets” line of the Condensed Consolidated Balance Sheet. The acquired assets and liabilities as of the date of acquisition include the following: Cash and cash equivalents $ 2,765 Accounts receivable, net 197 Inventories 9,610 Other current assets 1,637 Property, net 11,764 Trademarks and other identifiable intangibles 278,214 Deferred tax assets and other noncurrent assets 2,318 Total assets acquired 306,505 Accounts payable 4,929 Accrued liabilities and other 16,339 Deferred tax liabilities and other noncurrent liabilities 7,864 Total liabilities assumed 29,132 Net assets acquired 277,373 Goodwill 111,832 Total purchase price $ 389,205 Total purchase price of the Bras N Things acquisition consisted of the following components: Cash consideration paid $ 337,123 Indemnification escrow asset 25,140 Debt assumed 26,942 Total purchase price $ 389,205 Since February 12, 2018, goodwill related to the Bras N Things acquisition decreased by $792 as a result of measurement period adjustments, primarily related to working capital adjustments. The purchase price allocation was finalized in the first quarter of 2019. Unaudited pro forma results of operations for the Company are presented below for the quarter and nine months ended September 29, 2018 , assuming that the acquisition of Bras N Things had occurred on January 1, 2017. Quarter Ended Nine Months Ended September 29, September 29, Net sales $ 1,848,707 $ 5,054,161 Net income 171,421 394,494 Earnings per share: Basic $ 0.47 $ 1.09 Diluted 0.47 1.08 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines whether an arrangement is a lease at inception. The Company has operating leases for real estate (primarily retail stores and operating facilities) and certain equipment. The Company’s finance leases are not material. Leases with a term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into after adoption of Topic 842, the Company combines lease and nonlease components as a single component for all asset classes. The Company’s leases have remaining lease terms of one to 38 years, some of which include options to extend the leases for up to 15 years , and some of which include options to terminate the leases within one year . The exercise of lease renewal options is at the Company’s sole discretion. In general, for leased retail real estate, the Company will not include renewal options in the underlying lease term. However, if a situation arises where the lessor has control over the option periods, then the Company will include these periods within the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Total operating lease costs, which includes short-term leases and variable cost, were $53,023 and $168,784 for the quarter and nine months ended September 28, 2019 , respectively. For the quarter and nine months ended September 28, 2019 , variable costs of $20,001 and $49,303 were included in total operating lease costs, respectively. Short-term lease costs were immaterial for the quarter and nine months ended September 28, 2019 . The following table presents supplemental cash flow and non-cash information related to leases: Nine Months Ended September 28, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 114,805 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 54,524 As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. For operating leases that commenced prior to December 30, 2018, the Company used the incremental borrowing rate on December 27, 2018. The following table presents supplemental information related to leases at September 28, 2019 : Weighted average remaining lease term 5.4 years Weighted average discount rate 5.00 % The following table presents future minimum rental commitments under noncancelable operating leases as of December 29, 2018 : 2019 $ 148,218 2020 129,660 2021 110,185 2022 91,411 2023 66,753 Thereafter 115,941 $ 662,168 The following table presents maturities of operating lease liabilities as of September 28, 2019 : 2019 $ 36,069 2020 155,343 2021 115,620 2022 83,524 2023 67,292 Thereafter 124,689 Total lease payments 582,537 Less interest 73,399 $ 509,138 As of September 28, 2019 , the Company’s additional operating lease contracts that have not yet commenced are immaterial. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 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 issuable dilutive shares of common stock using the treasury stock method. The reconciliation of basic to diluted weighted average shares outstanding is as follows: Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Basic weighted average shares outstanding 364,743 363,510 364,650 363,338 Effect of potentially dilutive securities: Stock options 437 723 463 882 Restricted stock units 412 401 361 303 Employee stock purchase plan and other 5 4 4 4 Diluted weighted average shares outstanding 365,597 364,638 365,478 364,527 For the quarter ended September 28, 2019 , there were no anti-dilutive restricted stock units. For the quarter ended September 29, 2018 , there were 84 restricted stock units excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. For the nine months ended September 28, 2019 and September 29, 2018 , there were 5 and 84 restricted stock units excluded from the diluted earnings per share calculation, respectively, because their effect would be anti-dilutive. For the quarters and nine months ended September 28, 2019 and September 29, 2018 , there were no anti-dilutive stock options to purchase shares of common stock. On October 22, 2019, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share on outstanding shares of common stock to be paid on December 3, 2019 to stockholders of record at the close of business on November 12, 2019. On April 27, 2016 , the Company’s Board of Directors approved the current 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 Company did not repurchase any shares during the quarters and nine months ended September 28, 2019 and September 29, 2018 . At September 28, 2019 , the remaining repurchase authorization totaled 20,360 shares. The primary objective of the share repurchase program is to utilize excess cash to generate shareholder value. |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: September 28, December 29, September 29, Raw materials $ 98,373 $ 107,300 $ 134,684 Work in process 137,248 182,966 195,559 Finished goods 1,872,660 1,764,192 1,809,038 $ 2,108,281 $ 2,054,458 $ 2,139,281 |
Debt
Debt | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt and Notes Payable Debt and notes payable consisted of the following: Interest Principal Amount Maturity Date September 28, December 29, Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 3.48% 693,750 721,875 December 2022 Term Loan B 3.86% 492,500 496,250 December 2024 Australian Term A-1 — — 122,968 — Australian Revolving Loan Facility 2.07% 6,750 21,118 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% 547,106 572,213 June 2024 European Revolving Loan Facility 1.50% 109,421 113,520 September 2020 Accounts Receivable Securitization Facility 2.81% 208,604 161,608 March 2020 Other International Debt Various — 1 Various Total debt 3,858,131 4,009,553 Notes payable 4,275 5,824 Total debt and notes payable 3,862,406 4,015,377 Less long-term debt issuance costs 30,015 34,774 Less notes payable 4,275 5,824 Less current maturities (1) 360,525 440,596 Total long-term debt $ 3,467,591 $ 3,534,183 (1) Current maturities excludes $12 of short-term debt issuance costs at September 28, 2019 and December 29, 2018 . As of September 28, 2019 , the Company had $995,565 of borrowing availability under the $1,000,000 Revolving Loan Facility after taking into account $4,435 of standby and trade letters of credit issued and outstanding under this facility. The Company entered into an accounts receivable securitization facility (the “Accounts Receivable Securitization Facility”) in November 2007. The Company’s maximum borrowing capacity under the Accounts Receivable Securitization Facility was $300,000 as of September 28, 2019 . Borrowings under the Accounts Receivable Securitization Facility are permitted only to the extent that the face of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans and also subject to a fluctuating facility limit, not to exceed $300,000 . The Company had $65,000 of borrowing availability under the Accounts Receivable Securitization Facility at September 28, 2019. The Company had $33,749 of borrowing availability under the Australian Revolving Loan Facility, no borrowing availability under the European Revolving Loan Facility and $119,072 of borrowing availability under other international lines of credit after taking into account outstanding borrowings and letters of credit outstanding under the applicable facility at September 28, 2019. In March 2019, the Company amended the Accounts Receivable Securitization Facility. This amendment primarily increased the fluctuating facility limit to $300,000 (previously $225,000 ) and extended the maturity date to March 2020 . In June 2019, the Company paid the outstanding balance and terminated the Australian Term A-1 loan which would have matured in July 2019. In July 2019, the Company refinanced the European Revolving Loan Facility primarily to extend the maturity date to September 2020. As of September 28, 2019 , the Company was in compliance with all financial covenants under its credit facilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 28, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (“AOCI”) are as follows: Cumulative Translation Adjustment (1) Cash Flow Hedges Defined Benefit Plans Income Taxes Accumulated Other Comprehensive Loss Balance at December 29, 2018 $ (157,060 ) $ 21,814 $ (595,307 ) $ 227,611 $ (502,942 ) Amounts reclassified from accumulated other comprehensive loss — (21,355 ) 14,529 1,080 (5,746 ) Current-period other comprehensive income activity (33,738 ) 11,684 — (2,401 ) (24,455 ) Total other comprehensive income (loss) (33,738 ) (9,671 ) 14,529 (1,321 ) (30,201 ) Reclassification of stranded tax related to U.S. pension plan to retained earnings — — — (78,816 ) (78,816 ) Balance at September 28, 2019 $ (190,798 ) $ 12,143 $ (580,778 ) $ 147,474 $ (611,959 ) (1) Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note 10, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges. The Company had the following reclassifications out of AOCI: Component of AOCI Location of Reclassification into Income Amount of Reclassification from AOCI Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Gain (loss) on foreign exchange contracts designated as cash flow hedges Cost of sales $ 6,991 $ (2,467 ) $ 21,355 $ (9,686 ) Income tax (1,646 ) 455 (5,054 ) 1,870 Net of tax 5,345 (2,012 ) 16,301 (7,816 ) Amortization of deferred actuarial loss and prior service cost Selling, general, and administrative expenses (4,963 ) (4,919 ) (14,529 ) (12,934 ) Income tax 1,358 1,378 3,974 3,622 Net of tax (3,605 ) (3,541 ) (10,555 ) (9,312 ) Total reclassifications $ 1,740 $ (5,553 ) $ 5,746 $ (17,128 ) |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
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. The Company also uses a combination of derivative instruments and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in its European subsidiaries. As of September 28, 2019 , the notional U.S. dollar equivalent of the Company’s derivative portfolio of forward foreign exchange contracts was $578,462 , consisting of contracts hedging exposures primarily related to the Australian dollar, Euro, Canadian dollar and Mexican peso. As of September 28, 2019 , the U.S. dollar equivalent carrying value of long-term debt designated as a partial European net investment hedge was $547,106 . The notional U.S. dollar equivalent of the Company’s cross-currency swap contracts, which are also designated as partial European net investment hedges, was $335,940 as of September 28, 2019 . Fair Values of Derivative Instruments The fair values of derivative financial instruments related to forward foreign exchange contracts and cross-currency swap contracts recognized in the Condensed Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value September 28, December 29, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 7,729 $ 18,381 Cross-currency swap contracts Other current assets 1,672 — Cross-currency swap contracts Other noncurrent assets 8,699 — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 13,915 12,410 Total derivative assets 32,015 30,791 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (173 ) (286 ) Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (313 ) (114 ) Total derivative liabilities (486 ) (400 ) Net derivative asset $ 31,529 $ 30,391 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 gain from AOCI of approximately $16,684 . The Company is hedging exposure to the variability in future cash flows for forecasted transactions over the next 15 months . The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows: Amount of Gain (Loss) Recognized in AOCI on Derivative Instruments Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts $ 9,970 $ (207 ) $ 11,684 $ 25,067 Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts (1) Cost of sales $ 6,991 $ (2,467 ) $ 21,355 $ (9,686 ) (1) The Company does not exclude amounts from effectiveness testing for cash flow hedges that would require recognition into earnings based on changes in fair value. Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Total cost of sales in which the effects of cash flow hedges are recorded $ 1,154,629 $ 1,136,040 $ 3,208,025 $ 3,084,110 Net Investment Hedges In July 2019, the Company entered into two pay-fixed rate, receive-fixed rate cross-currency swap contracts with a total notional amount of €300,000 that were designated as hedges of a portion of the beginning balance of the Company’s net investment in its European subsidiaries. These cross-currency swap contracts, which mature on May 15, 2024, swap U.S. Dollar-denominated interest payments for Euro-denominated interest payments, thereby economically converting a portion of the Company’s fixed-rate 4.625% Senior Notes to a fixed-rate 2.3215% Euro-denominated obligation. In July 2019, the Company also designated its 3.5% Senior Notes with a carrying value of €500,000 , which is a nonderivative financial instrument, as a hedge of a portion of the beginning balance of the Company’s European net investment. Changes in the fair value of derivative and nonderivative instruments designated as net investment hedges are recognized in the cumulative translation adjustment component of AOCI, offsetting the translation adjustment of the net investment being hedged. Net investment hedge effectiveness is being assessed and hedge results are being measured on an after-tax basis. The interest component of the cross-currency swap contracts is excluded from the assessment of hedge effectiveness and is initially recorded in the cumulative translation adjustment component of AOCI. This excluded component is amortized in earnings using a systematic and rational method over the term of the cross-currency swap contracts and reported in the “Interest expense, net” line in the Condensed Consolidated Statements of Income. Cash flows from the periodic and final settlements of the cross-currency swap contracts will be reported as cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows because the hedged item is a net investment in a foreign subsidiary, and the cash paid or received from acquiring or selling the subsidiary would typically be classified as investing. The amount of after-tax gains included in AOCI in the Condensed Consolidated Balance Sheets related to derivative instruments and nonderivative financial instruments designated as net investment hedges and the amount of gains included in the “Interest expense, net” line in the Condensed Consolidated Statements of Income related to amounts excluded from the assessment of hedge effectiveness for derivative instruments designated as net investment hedges are as follows: Amount of Gain (Loss) Recognized in AOCI Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Euro-denominated long-term debt $ 9,845 $ — $ 9,845 $ — Cross-currency swap contracts 6,436 — 6,436 — Total $ 16,281 $ — $ 16,281 $ — Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Cross-currency swap contracts Interest expense, net $ 1,672 $ — $ 1,672 $ — Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded $ 43,091 $ 52,795 $ 137,672 $ 146,988 Mark to Market Hedges A derivative used as a hedging instrument whose change in fair value is recognized to act as a hedge against changes in the values of the hedged item is designated as a mark to market hedge. The Company uses foreign exchange derivative contracts as hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany lending transactions denominated in foreign currencies. Foreign exchange derivative contracts are recorded as mark to market hedges when the hedged item is a recorded asset or liability that is revalued in each accounting period. These contracts are not designated as hedges under the accounting standards and are recorded at fair value in the Condensed Consolidated Balance Sheets. Any gains or losses resulting from changes in fair value are recognized directly into earnings. 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 Condensed Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts Cost of sales $ (3,055 ) $ (2,241 ) $ (21,813 ) $ 16,870 Foreign exchange contracts Selling, general and administrative expenses 2,546 (445 ) 1,625 330 Total $ (509 ) $ (2,686 ) $ (20,188 ) $ 17,200 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities As of September 28, 2019 , 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, cross-currency swap derivative contracts and deferred compensation plan liabilities. 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 values of cross-currency swap derivative contracts are determined using the cash flows of the contracts, discount rates to account for the passage of time, current foreign exchange and interest rate market data and credit risk, 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 Company’s defined benefit pension plan investments are not required to be measured at fair value on a quarterly recurring basis. There were no changes during the quarter and nine months ended September 28, 2019 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. There were no transfers into or out of Level 1, Level 2 or Level 3 during the quarter and nine months ended September 28, 2019 . As of and during the quarter and nine months ended September 28, 2019 , the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-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 Significant Foreign exchange derivative contracts - assets $ 21,644 $ — $ 21,644 $ — Cross-currency swap derivative contracts - assets 10,371 — 10,371 — Foreign exchange derivative contracts - liabilities (486 ) — (486 ) — 31,529 — 31,529 — Deferred compensation plan liability (30,107 ) — (30,107 ) — Total $ 1,422 $ — $ 1,422 $ — Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Significant Foreign exchange derivative contracts - assets $ 30,791 $ — $ 30,791 $ — Foreign exchange derivative contracts - liabilities (400 ) — (400 ) — 30,391 — 30,391 — Deferred compensation plan liability (39,542 ) — (39,542 ) — Total $ (9,151 ) $ — $ (9,151 ) $ — 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 September 28, 2019 and December 29, 2018 . The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $38,937 and $32,604 as of September 28, 2019 and December 29, 2018 , respectively. The fair value of debt, which is classified as a Level 2 liability, was $4,032,241 and $3,863,299 as of September 28, 2019 and December 29, 2018 , respectively. Debt had a carrying value of $3,858,131 and $4,009,553 as of September 28, 2019 and December 29, 2018 , 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 September 28, 2019 and December 29, 2018 , primarily due to the short-term nature of these instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate was 14.1% and 12.9% for the quarters ended September 28, 2019 and September 29, 2018 , respectively. The Company’s effective income tax rate was 14.1% and 14.2% for the nine months ended September 28, 2019 and September 29, 2018 , respectively. The higher effective income tax rate for the quarter ended September 28, 2019 compared to the quarter ended September 29, 2018 was primarily due to a net benefit recorded in the third quarter of 2018 related to a change in the Company’s provisional estimate regarding the overall impact of the Tax Act. Pursuant to the one-year measurement period allowed by the SEC’s Staff Accounting Bulletin No. 118, the accounting for the impact of the Tax Act was completed in the fourth quarter of 2018. 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 IRS began an examination of the Company’s 2015 and 2016 tax years during 2017 and 2018, respectively. The Company is also subject to examination by various state and foreign 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. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
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 team 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 includes sales of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear. • Activewear includes sales of basic branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel in collegiate bookstores, mass retailers and other channels. • International includes sales of products in all of the Company’s categories outside the United States, primarily in Europe, Australia, Asia, Latin America and Canada. 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 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 29, 2018 . Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Net sales: Innerwear $ 578,453 $ 599,726 $ 1,733,002 $ 1,785,498 Activewear 548,117 554,953 1,401,734 1,306,863 International 663,525 619,435 1,878,568 1,735,184 Other 76,872 74,593 202,614 208,109 Total net sales $ 1,866,967 $ 1,848,707 $ 5,215,918 $ 5,035,654 Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Segment operating profit: Innerwear $ 121,467 $ 132,244 $ 375,623 $ 392,792 Activewear 97,314 93,605 209,686 189,400 International 107,168 99,624 280,944 253,243 Other 9,643 8,400 16,429 18,187 Total segment operating profit 335,592 333,873 882,682 853,622 Items not included in segment operating profit: General corporate expenses (47,269 ) (46,161 ) (160,722 ) (136,694 ) Acquisition, integration and other action-related charges (9,937 ) (20,732 ) (43,919 ) (65,514 ) Amortization of intangibles (8,630 ) (10,091 ) (26,230 ) (28,404 ) Total operating profit 269,756 256,889 651,811 623,010 Other expenses (8,066 ) (7,285 ) (23,766 ) (19,616 ) Interest expense, net (43,091 ) (52,795 ) (137,672 ) (146,988 ) Income before income tax expense $ 218,599 $ 196,809 $ 490,373 $ 456,406 For the quarter ended September 28, 2019 , the Company incurred pre-tax acquisition, integration and other action-related charges of $9,937 , of which $9,424 is reported in the “Cost of sales” line and $513 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter ended September 29, 2018 , the Company incurred pre-tax acquisition, integration and other action-related charges of $20,732 , 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 nine months ended September 28, 2019 , the Company incurred pre-tax acquisition, integration and other action-related charges of $43,919 , of which $39,714 is reported in the “Cost of sales” line and $4,205 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 pre-tax acquisition-related, integration and other action-related charges 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. As of December 29, 2018 , the Company had an accrual of $10,806 for expected benefit payments related to actions taken in prior years. During the nine months ended September 28, 2019 , the Company approved actions to close certain supply chain facilities and reduce overhead costs and incurred charges of $12,392 for employee termination and other benefits for employees affected by separation programs, with $9,720 and $2,672 of charges reflected in the “Cost of sales” and “Selling, general and administrative expenses” lines, respectively, in the Condensed Consolidated Statement of Income. During the nine months ended September 28, 2019 , benefit payments, other accrual adjustments and foreign currency adjustments of $11,681 have been made, resulting in an ending accrual of $11,517 , of which $9,548 and $1,969 |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition, policy | Revenue is recognized when obligations under the terms of a contract with a customer are satisfied, which occurs at a point in time, upon either shipment or delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. Variable consideration includes trade discounts, rebates, volume-based incentives, cooperative advertising and product returns, which are offered within contracts between the Company and its customers, employing the practical expedient for contract costs. Incidental items that are immaterial to the context of the contract are recognized as expense at the transaction date. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by the customer’s method of purchase: Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Third-party brick-and-mortar wholesale $ 1,436,935 $ 1,458,126 $ 4,029,352 $ 3,968,426 Consumer-directed 430,032 390,581 1,186,566 1,067,228 Total net sales $ 1,866,967 $ 1,848,707 $ 5,215,918 $ 5,035,654 |
Acquisitions (Tables)
Acquisitions (Tables) - Bras N Things | 9 Months Ended |
Sep. 28, 2019 | |
Business Acquisition [Line Items] | |
Schedule of acquired assets and liabilities assumed | The acquired assets and liabilities as of the date of acquisition include the following: Cash and cash equivalents $ 2,765 Accounts receivable, net 197 Inventories 9,610 Other current assets 1,637 Property, net 11,764 Trademarks and other identifiable intangibles 278,214 Deferred tax assets and other noncurrent assets 2,318 Total assets acquired 306,505 Accounts payable 4,929 Accrued liabilities and other 16,339 Deferred tax liabilities and other noncurrent liabilities 7,864 Total liabilities assumed 29,132 Net assets acquired 277,373 Goodwill 111,832 Total purchase price $ 389,205 |
Schedule of components of purchase price | Total purchase price of the Bras N Things acquisition consisted of the following components: Cash consideration paid $ 337,123 Indemnification escrow asset 25,140 Debt assumed 26,942 Total purchase price $ 389,205 |
Unaudited pro forma results of operations | Unaudited pro forma results of operations for the Company are presented below for the quarter and nine months ended September 29, 2018 , assuming that the acquisition of Bras N Things had occurred on January 1, 2017. Quarter Ended Nine Months Ended September 29, September 29, Net sales $ 1,848,707 $ 5,054,161 Net income 171,421 394,494 Earnings per share: Basic $ 0.47 $ 1.09 Diluted 0.47 1.08 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cash Flow and Non-cash, Supplemental Disclosures | The following table presents supplemental cash flow and non-cash information related to leases: Nine Months Ended September 28, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 114,805 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 54,524 |
Lessee, Operating Lease, Weighted Average Table | The following table presents supplemental information related to leases at September 28, 2019 : Weighted average remaining lease term 5.4 years Weighted average discount rate 5.00 % |
Lessee, Operating Lease, Maturity Schedule | The following table presents future minimum rental commitments under noncancelable operating leases as of December 29, 2018 : 2019 $ 148,218 2020 129,660 2021 110,185 2022 91,411 2023 66,753 Thereafter 115,941 $ 662,168 The following table presents maturities of operating lease liabilities as of September 28, 2019 : 2019 $ 36,069 2020 155,343 2021 115,620 2022 83,524 2023 67,292 Thereafter 124,689 Total lease payments 582,537 Less interest 73,399 $ 509,138 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Reconciliation of Basic to Diluted Weighted Average Shares | The reconciliation of basic to diluted weighted average shares outstanding is as follows: Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Basic weighted average shares outstanding 364,743 363,510 364,650 363,338 Effect of potentially dilutive securities: Stock options 437 723 463 882 Restricted stock units 412 401 361 303 Employee stock purchase plan and other 5 4 4 4 Diluted weighted average shares outstanding 365,597 364,638 365,478 364,527 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: September 28, December 29, September 29, Raw materials $ 98,373 $ 107,300 $ 134,684 Work in process 137,248 182,966 195,559 Finished goods 1,872,660 1,764,192 1,809,038 $ 2,108,281 $ 2,054,458 $ 2,139,281 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt and notes payable consisted of the following: Interest Principal Amount Maturity Date September 28, December 29, Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 3.48% 693,750 721,875 December 2022 Term Loan B 3.86% 492,500 496,250 December 2024 Australian Term A-1 — — 122,968 — Australian Revolving Loan Facility 2.07% 6,750 21,118 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% 547,106 572,213 June 2024 European Revolving Loan Facility 1.50% 109,421 113,520 September 2020 Accounts Receivable Securitization Facility 2.81% 208,604 161,608 March 2020 Other International Debt Various — 1 Various Total debt 3,858,131 4,009,553 Notes payable 4,275 5,824 Total debt and notes payable 3,862,406 4,015,377 Less long-term debt issuance costs 30,015 34,774 Less notes payable 4,275 5,824 Less current maturities (1) 360,525 440,596 Total long-term debt $ 3,467,591 $ 3,534,183 (1) Current maturities excludes $12 of short-term debt issuance costs at September 28, 2019 and December 29, 2018 . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss (“AOCI”) are as follows: Cumulative Translation Adjustment (1) Cash Flow Hedges Defined Benefit Plans Income Taxes Accumulated Other Comprehensive Loss Balance at December 29, 2018 $ (157,060 ) $ 21,814 $ (595,307 ) $ 227,611 $ (502,942 ) Amounts reclassified from accumulated other comprehensive loss — (21,355 ) 14,529 1,080 (5,746 ) Current-period other comprehensive income activity (33,738 ) 11,684 — (2,401 ) (24,455 ) Total other comprehensive income (loss) (33,738 ) (9,671 ) 14,529 (1,321 ) (30,201 ) Reclassification of stranded tax related to U.S. pension plan to retained earnings — — — (78,816 ) (78,816 ) Balance at September 28, 2019 $ (190,798 ) $ 12,143 $ (580,778 ) $ 147,474 $ (611,959 ) (1) Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note 10, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges. |
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 Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Gain (loss) on foreign exchange contracts designated as cash flow hedges Cost of sales $ 6,991 $ (2,467 ) $ 21,355 $ (9,686 ) Income tax (1,646 ) 455 (5,054 ) 1,870 Net of tax 5,345 (2,012 ) 16,301 (7,816 ) Amortization of deferred actuarial loss and prior service cost Selling, general, and administrative expenses (4,963 ) (4,919 ) (14,529 ) (12,934 ) Income tax 1,358 1,378 3,974 3,622 Net of tax (3,605 ) (3,541 ) (10,555 ) (9,312 ) Total reclassifications $ 1,740 $ (5,553 ) $ 5,746 $ (17,128 ) |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Fair Values of Derivative Instruments | The fair values of derivative financial instruments related to forward foreign exchange contracts and cross-currency swap contracts recognized in the Condensed Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value September 28, December 29, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 7,729 $ 18,381 Cross-currency swap contracts Other current assets 1,672 — Cross-currency swap contracts Other noncurrent assets 8,699 — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 13,915 12,410 Total derivative assets 32,015 30,791 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (173 ) (286 ) Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (313 ) (114 ) Total derivative liabilities (486 ) (400 ) Net derivative asset $ 31,529 $ 30,391 |
Effect of Cash Flow Hedge Derivative Instruments | The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows: Amount of Gain (Loss) Recognized in AOCI on Derivative Instruments Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts $ 9,970 $ (207 ) $ 11,684 $ 25,067 Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts (1) Cost of sales $ 6,991 $ (2,467 ) $ 21,355 $ (9,686 ) (1) The Company does not exclude amounts from effectiveness testing for cash flow hedges that would require recognition into earnings based on changes in fair value. Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Total cost of sales in which the effects of cash flow hedges are recorded $ 1,154,629 $ 1,136,040 $ 3,208,025 $ 3,084,110 |
Effect of Net Investment Hedge Derivative Instruments | The amount of after-tax gains included in AOCI in the Condensed Consolidated Balance Sheets related to derivative instruments and nonderivative financial instruments designated as net investment hedges and the amount of gains included in the “Interest expense, net” line in the Condensed Consolidated Statements of Income related to amounts excluded from the assessment of hedge effectiveness for derivative instruments designated as net investment hedges are as follows: Amount of Gain (Loss) Recognized in AOCI Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Euro-denominated long-term debt $ 9,845 $ — $ 9,845 $ — Cross-currency swap contracts 6,436 — 6,436 — Total $ 16,281 $ — $ 16,281 $ — Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Cross-currency swap contracts Interest expense, net $ 1,672 $ — $ 1,672 $ — Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded $ 43,091 $ 52,795 $ 137,672 $ 146,988 |
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 Condensed Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Foreign exchange contracts Cost of sales $ (3,055 ) $ (2,241 ) $ (21,813 ) $ 16,870 Foreign exchange contracts Selling, general and administrative expenses 2,546 (445 ) 1,625 330 Total $ (509 ) $ (2,686 ) $ (20,188 ) $ 17,200 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured 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 Significant Foreign exchange derivative contracts - assets $ 21,644 $ — $ 21,644 $ — Cross-currency swap derivative contracts - assets 10,371 — 10,371 — Foreign exchange derivative contracts - liabilities (486 ) — (486 ) — 31,529 — 31,529 — Deferred compensation plan liability (30,107 ) — (30,107 ) — Total $ 1,422 $ — $ 1,422 $ — Assets (Liabilities) at Fair Value as of Total Quoted Prices In Significant Significant Foreign exchange derivative contracts - assets $ 30,791 $ — $ 30,791 $ — Foreign exchange derivative contracts - liabilities (400 ) — (400 ) — 30,391 — 30,391 — Deferred compensation plan liability (39,542 ) — (39,542 ) — Total $ (9,151 ) $ — $ (9,151 ) $ — |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Text Block [Abstract] | |
Net Sales | Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Net sales: Innerwear $ 578,453 $ 599,726 $ 1,733,002 $ 1,785,498 Activewear 548,117 554,953 1,401,734 1,306,863 International 663,525 619,435 1,878,568 1,735,184 Other 76,872 74,593 202,614 208,109 Total net sales $ 1,866,967 $ 1,848,707 $ 5,215,918 $ 5,035,654 |
Segment Operating Profit | Quarter Ended Nine Months Ended September 28, September 29, September 28, September 29, Segment operating profit: Innerwear $ 121,467 $ 132,244 $ 375,623 $ 392,792 Activewear 97,314 93,605 209,686 189,400 International 107,168 99,624 280,944 253,243 Other 9,643 8,400 16,429 18,187 Total segment operating profit 335,592 333,873 882,682 853,622 Items not included in segment operating profit: General corporate expenses (47,269 ) (46,161 ) (160,722 ) (136,694 ) Acquisition, integration and other action-related charges (9,937 ) (20,732 ) (43,919 ) (65,514 ) Amortization of intangibles (8,630 ) (10,091 ) (26,230 ) (28,404 ) Total operating profit 269,756 256,889 651,811 623,010 Other expenses (8,066 ) (7,285 ) (23,766 ) (19,616 ) Interest expense, net (43,091 ) (52,795 ) (137,672 ) (146,988 ) Income before income tax expense $ 218,599 $ 196,809 $ 490,373 $ 456,406 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in adoption of leases standard | $ 7,977 | |||
Right-of-use assets | 475,037 | $ 0 | $ 0 | |
Total lease liabilities | 509,138 | |||
Stranded tax related to U.S. pension plan | 0 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 507,669 | |||
Total lease liabilities | $ 535,054 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in adoption of leases standard | 7,977 | |||
Stranded tax related to U.S. pension plan | 78,816 | |||
Accumulated Other Comprehensive Loss | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in adoption of leases standard | 0 | |||
Stranded tax related to U.S. pension plan | $ (78,816) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Disaggregation of Revenue | ||||
Net sales | $ 1,866,967 | $ 1,848,707 | $ 5,215,918 | $ 5,035,654 |
Third-party brick-and-mortar wholesale | ||||
Disaggregation of Revenue | ||||
Net sales | 1,436,935 | 1,458,126 | 4,029,352 | 3,968,426 |
Consumer-directed | ||||
Disaggregation of Revenue | ||||
Net sales | $ 430,032 | $ 390,581 | $ 1,186,566 | $ 1,067,228 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - Bras N Things $ in Thousands, $ in Thousands | Feb. 12, 2018USD ($) | Feb. 12, 2018AUD ($) | Sep. 28, 2019USD ($) | Sep. 28, 2019AUD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 29, 2018AUD ($) | Feb. 12, 2018AUD ($) |
Business Acquisition [Line Items] | ||||||||
Business acquistion, percent of business acquired | 100.00% | 100.00% | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 391,572 | $ 498,236 | ||||||
Increase (decrease) in consideration transferred | $ (2,367) | $ (3,012) | ||||||
Total purchase price | 389,205 | 495,224 | ||||||
Cash consideration paid | 337,123 | $ 428,956 | ||||||
Indemnification escrow asset | 25,140 | $ 31,988 | ||||||
Debt assumed | $ 26,942 | $ 34,280 | ||||||
Indemnification escrow disbursement | $ 21,360 | $ 31,425 | ||||||
Goodwill, Purchase Accounting Adjustments | $ 792 |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Feb. 12, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,223,216 | $ 1,241,727 | $ 1,252,524 | |
Bras N Things | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 2,765 | |||
Accounts receivable, net | 197 | |||
Inventories | 9,610 | |||
Other current assets | 1,637 | |||
Property, net | 11,764 | |||
Trademarks and other identifiable intangibles | 278,214 | |||
Deferred tax assets and other noncurrent assets | 2,318 | |||
Total assets acquired | 306,505 | |||
Accounts payable | 4,929 | |||
Accrued liabilities and other | 16,339 | |||
Deferred tax liabilities and other noncurrent liabilities | 7,864 | |||
Total liabilities assumed | 29,132 | |||
Net assets acquired | 277,373 | |||
Goodwill | 111,832 | |||
Total purchase price | $ 389,205 |
Acquisitions Components of Purc
Acquisitions Components of Purchase Price (Details) - Feb. 12, 2018 - Bras N Things $ in Thousands, $ in Thousands | USD ($) | AUD ($) | AUD ($) |
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 337,123 | $ 428,956 | |
Indemnification escrow asset | 25,140 | $ 31,988 | |
Debt assumed | 26,942 | $ 34,280 | |
Total purchase price | $ 389,205 | $ 495,224 |
Acquisition Pro Forma (Details)
Acquisition Pro Forma (Details) - Pro Forma - Bras N Things - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | ||
Pro forma revenue | $ 1,848,707 | $ 5,054,161 |
Pro forma net income | $ 171,421 | $ 394,494 |
Pro forma earnings per share, basic | $ 0.47 | $ 1.09 |
Pro forma earnings per share, diluted | $ 0.47 | $ 1.08 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 28, 2019 | |
Leases, Option to terminate, period | 1 year |
Minimum [Member] | |
Remaining lease terms | 1 year |
Maximum [Member] | |
Remaining lease terms | 38 years |
Options to extend, term | 15 years |
Leases Schedule of lease expens
Leases Schedule of lease expense components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Lease costs | $ 53,023 | $ 168,784 |
Variable costs | $ 20,001 | $ 49,303 |
Leases Supplemental cash flow i
Leases Supplemental cash flow information (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases | $ 114,805 |
Right-of-use assets obtained in exchange for lease obligations - non-cash activity | $ 54,524 |
Leases Supplemental lease infor
Leases Supplemental lease information (Details) | Sep. 28, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 4 months 24 days |
Weighted average discount rate | 5.00% |
Leases Schedule of lease maturi
Leases Schedule of lease maturities (ASC 840) (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 148,218 |
2020 | 129,660 |
2021 | 110,185 |
2022 | 91,411 |
2023 | 66,753 |
Thereafter | 115,941 |
Total lease payments | $ 662,168 |
Leases Schedule of lease matu_2
Leases Schedule of lease maturities (ASC 842) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 36,069 |
2020 | 155,343 |
2021 | 115,620 |
2022 | 83,524 |
2023 | 67,292 |
Thereafter | 124,689 |
Total lease payments | 582,537 |
Less interest | 73,399 |
Total lease liabilities | $ 509,138 |
Stockholders' Equity (Reconcili
Stockholders' Equity (Reconciliation of basic to diluted weighted average shares) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reconciliation of basic to diluted weighted average shares [Line Items] | ||||
Basic weighted average shares outstanding | 364,743 | 363,510 | 364,650 | 363,338 |
Diluted weighted average shares outstanding | 365,597 | 364,638 | 365,478 | 364,527 |
Stock options | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 437 | 723 | 463 | 882 |
Restricted stock units | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 412 | 401 | 361 | 303 |
Employee stock purchase plan and other | ||||
Effect of potentially dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 5 | 4 | 4 | 4 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares shares in Thousands | Oct. 22, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Apr. 27, 2016 |
Stockholders' Equity [Line Items] | ||||||
Dividends, Per Share, Declared | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 | ||
Stock options | ||||||
Stockholders' Equity [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 | ||
Restricted stock units | ||||||
Stockholders' Equity [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 84 | 5 | 84 | ||
2016 Share Repurchase Plan [Member] | ||||||
Stockholders' Equity [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 40,000 | |||||
Remaining number of shares authorized to be repurchased | 20,360 | 20,360 | ||||
Subsequent Event [Member] | ||||||
Stockholders' Equity [Line Items] | ||||||
Dividends, Per Share, Declared | $ 0.15 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 98,373 | $ 107,300 | $ 134,684 |
Work in process | 137,248 | 182,966 | 195,559 |
Finished goods | 1,872,660 | 1,764,192 | 1,809,038 |
Total Inventories | $ 2,108,281 | $ 2,054,458 | $ 2,139,281 |
Debt (Detail)
Debt (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Debt Instrument [Line Items] | |||
Total debt | $ 3,858,131 | $ 4,009,553 | |
Notes payable | 4,275 | 5,824 | |
Total debt and notes payable | 3,862,406 | 4,015,377 | |
Long-term Debt, Excluding Current Maturities [Abstract] | |||
Less long-term debt issuance costs | 30,015 | 34,774 | |
Notes payable | 4,275 | 5,824 | |
Less current maturities(1) | 360,525 | 440,596 | |
Total long-term debt | 3,467,591 | 3,534,183 | $ 3,863,580 |
Short-term debt issuance costs | $ 12 | 12 | |
Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 0.00% | ||
Total debt | $ 0 | 0 | |
Term Loan A | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 3.48% | ||
Total debt | $ 693,750 | 721,875 | |
Term Loan B | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 3.86% | ||
Total debt | $ 492,500 | 496,250 | |
Australian Term A-1 Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 0.00% | ||
Total debt | $ 0 | 122,968 | |
Australian Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 2.07% | ||
Total debt | $ 6,750 | 21,118 | |
4.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 4.88% | ||
Total debt | $ 900,000 | 900,000 | |
4.625% Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 4.63% | ||
Total debt | $ 900,000 | 900,000 | |
3.50% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total debt | $ 547,106 | 572,213 | |
European Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 1.50% | ||
Total debt | $ 109,421 | 113,520 | |
Accounts Receivable Securitization Facility | |||
Debt Instrument [Line Items] | |||
Interest rate as of September 28, 2019 | 2.81% | ||
Total debt | $ 208,604 | 161,608 | |
Other International Debt | |||
Debt Instrument [Line Items] | |||
Total debt | $ 0 | $ 1 |
Debt (Additional Information) (
Debt (Additional Information) (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Remaining capacity | $ 995,565 | ||
Maximum borrowing capacity | 1,000,000 | ||
Standby and trade letters of credit issued | 4,435 | ||
European Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Remaining capacity | 0 | ||
Australian Revolving Loan Facility | |||
Debt Instrument [Line Items] | |||
Remaining capacity | 33,749 | ||
Accounts Receivable Securitization Facility | |||
Debt Instrument [Line Items] | |||
Remaining capacity | 65,000 | ||
Maximum borrowing capacity | 300,000 | $ 300,000 | $ 225,000 |
Line of Credit Facility, Current Borrowing Capacity | 300,000 | ||
Other International Debt | |||
Debt Instrument [Line Items] | |||
Remaining capacity | $ 119,072 |
(Accumulated Other Comprehensiv
(Accumulated Other Comprehensive Income (Loss) Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Tax on other comprehensive income | $ (2,278) | $ (1,236) | $ (1,321) | $ (12,315) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at December 29, 2018, net of tax | (502,942) | |||
Other Comprehensive Income (Loss), Net of Tax | (39,333) | (13,944) | (30,201) | (47,292) |
Stranded tax related to U.S. pension plan | 0 | |||
Balance at September 28, 2019, net of tax | (611,959) | (486,498) | (611,959) | (486,498) |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||||
Balance at December 29, 2018, before tax | (157,060) | |||
Amounts reclassified from accumulated other comprehensive loss, before tax | 0 | |||
Current-period other comprehensive income (loss) activity, before tax | (33,738) | |||
Other Comprehensive Income (Loss), before Tax | (33,738) | |||
Balance at September 28, 2019, before tax | (190,798) | (190,798) | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||||
Balance at December 29, 2018, before tax | 21,814 | |||
Amounts reclassified from accumulated other comprehensive loss, before tax | (21,355) | |||
Current-period other comprehensive income (loss) activity, before tax | 11,684 | |||
Other Comprehensive Income (Loss), before Tax | (9,671) | |||
Balance at September 28, 2019, before tax | (12,143) | (12,143) | ||
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||||
Balance at December 29, 2018, before tax | (595,307) | |||
Amounts reclassified from accumulated other comprehensive loss, before tax | 14,529 | |||
Current-period other comprehensive income (loss) activity, before tax | 0 | |||
Other Comprehensive Income (Loss), before Tax | 14,529 | |||
Balance at September 28, 2019, before tax | 580,778 | 580,778 | ||
Income Taxes | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Balance at December 29, 2018, tax | 227,611 | |||
Amounts reclassified from accumulated other comprehensive loss, tax | 1,080 | |||
Current-period other comprehensive income (loss) activity, tax | (2,401) | |||
Tax on other comprehensive income | (1,321) | |||
Stranded tax related to U.S. pension plan, tax | (78,816) | |||
Balance at September 28, 2019, tax | (147,474) | (147,474) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at December 29, 2018, net of tax | (502,942) | |||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 5,746 | |||
Current-period other comprehensive income (loss) activity, net of tax | (24,455) | |||
Other Comprehensive Income (Loss), Net of Tax | (39,333) | $ (13,944) | (30,201) | $ (47,292) |
Stranded tax related to U.S. pension plan | (78,816) | |||
Balance at September 28, 2019, net of tax | $ (611,959) | $ (611,959) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 1,154,629 | $ 1,136,040 | $ 3,208,025 | $ 3,084,110 |
Selling, general and administrative expenses | 442,582 | 455,778 | 1,356,082 | 1,328,534 |
Income tax expense (benefit) | 30,823 | 25,388 | 69,143 | 64,943 |
Net income (loss) | 187,776 | 171,421 | 421,230 | 391,463 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | 1,740 | (5,553) | 5,746 | (17,128) |
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] | ||||
Selling, general and administrative expenses | (4,963) | (4,919) | (14,529) | (12,934) |
Income tax expense (benefit) | (1,358) | (1,378) | (3,974) | (3,622) |
Net income (loss) | (3,605) | (3,541) | (10,555) | (9,312) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract | Gain (loss) on foreign exchange contracts designated as cash flow hedges | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 6,991 | (2,467) | 21,355 | (9,686) |
Income tax expense (benefit) | 1,646 | (455) | 5,054 | (1,870) |
Net income (loss) | $ 5,345 | $ (2,012) | $ 16,301 | $ (7,816) |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Additional Information) (Detail) € in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 28, 2019USD ($) | Jul. 10, 2019EUR (€) | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 578,462 | |
Amount expected to be reclassified into earnings during the next twelve months | $ 16,684 | |
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 15 months | |
Cross-Currency Swap Contract | ||
Derivative [Line Items] | ||
Number of cross currency swaps | 2 | |
Derivative, Notional Amount | $ 335,940 | € 300,000 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Fair Values of Derivative Instruments) (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Net fair value of derivative assets and liabilities | $ 31,529 | $ 30,391 |
Assets, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 32,015 | 30,791 |
Liabilities, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | 486 | 400 |
Foreign Exchange Contract | Other current assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 7,729 | 18,381 |
Foreign Exchange Contract | Other current assets | Non-hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 13,915 | 12,410 |
Foreign Exchange Contract | Accrued liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | 173 | 286 |
Foreign Exchange Contract | Accrued liabilities | Non-hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | 313 | 114 |
Cross-Currency Swap Contract | Other current assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 1,672 | 0 |
Cross-Currency Swap Contract | Other noncurrent assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | $ 8,699 | $ 0 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Effect of cash flow hedge derivative instruments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Cost of sales | $ 1,154,629 | $ 1,136,040 | $ 3,208,025 | $ 3,084,110 |
Foreign Exchange Contract | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI | 9,970 | (207) | 11,684 | 25,067 |
Foreign Exchange Contract | Cost of Sales | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 6,991 | $ (2,467) | $ 21,355 | $ (9,686) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Effect of net investment hedge instruments) (Detail) € in Thousands, $ in Thousands | Jul. 10, 2019EUR (€) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) |
Derivatives, Fair Value [Line Items] | |||||
Interest expense, net | $ 43,091 | $ 52,795 | $ 137,672 | $ 146,988 | |
4.625% Senior Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate on Senior Notes Issued | 4.63% | 4.63% | |||
Euro-denominated Long-term Debt | 3.50% Senior Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate on Senior Notes Issued | 3.50% | 3.50% | |||
Notional Amount of Nonderivative Instruments | € 500,000 | $ 547,106 | |||
Cross-Currency Swap Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Cross-Currency Swap Contract - Fixed Interest Rate | 2.3215% | ||||
Cross-Currency Swap Contract | Interest expense, net | |||||
Derivatives, Fair Value [Line Items] | |||||
Amounts of Gain (Loss) Recognized in Income | $ 1,672 | 0 | $ 1,672 | 0 | |
Cross-Currency Swap Contract | 4.625% Senior Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate on Senior Notes Issued | 4.625% | 4.625% | |||
Accumulated Other Comprehensive Loss | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Net Investment Hedges | $ 16,281 | 0 | $ 16,281 | 0 | |
Accumulated Other Comprehensive Loss | Euro-denominated Long-term Debt | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI | 9,845 | 0 | 9,845 | 0 | |
Accumulated Other Comprehensive Loss | Cross-Currency Swap Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI | $ 6,436 | $ 0 | $ 6,436 | $ 0 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Effect of mark to market hedge derivative instruments on Condensed Consolidated Statements of Income) (Detail) - Foreign Exchange Contract - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (509) | $ (2,686) | $ (20,188) | $ 17,200 |
Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (3,055) | (2,241) | (21,813) | 16,870 |
Selling, General and Administrative Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 2,546 | $ (445) | $ 1,625 | $ 330 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Additional Information) (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 38,937 | $ 32,604 |
Carrying value of debt | 3,858,131 | 4,009,553 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 4,032,241 | $ 3,863,299 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Fair Value of Financial Assets and Liabilities Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value of derivative assets and liabilities | $ 31,529 | $ 30,391 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value of derivative assets and liabilities | 31,529 | 30,391 |
Deferred compensation plan liability | 30,107 | 39,542 |
Net Effect Of Financial Asset Less Financial Liability | 1,422 | (9,151) |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value of derivative assets and liabilities | 0 | 0 |
Deferred compensation plan liability | 0 | 0 |
Net Effect Of Financial Asset Less Financial Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value of derivative assets and liabilities | 31,529 | 30,391 |
Deferred compensation plan liability | 30,107 | 39,542 |
Net Effect Of Financial Asset Less Financial Liability | 1,422 | (9,151) |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value of derivative assets and liabilities | 0 | 0 |
Deferred compensation plan liability | 0 | 0 |
Net Effect Of Financial Asset Less Financial Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 21,644 | 30,791 |
Total derivative liabilities | 486 | 400 |
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 21,644 | 30,791 |
Total derivative liabilities | 486 | 400 |
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | $ 0 |
Fair Value, Measurements, Recurring | Cross-Currency Swap Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 10,371 | |
Fair Value, Measurements, Recurring | Cross-Currency Swap Contract | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | |
Fair Value, Measurements, Recurring | Cross-Currency Swap Contract | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 10,371 | |
Fair Value, Measurements, Recurring | Cross-Currency Swap Contract | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Percent | 14.10% | 12.90% | 14.10% | 14.20% |
Business Segment Information (D
Business Segment Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 29, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | 3 | ||||
Net sales: | |||||
Net sales | $ 1,866,967 | $ 1,848,707 | $ 5,215,918 | $ 5,035,654 | |
Segment operating profit: | |||||
Total operating profit | 269,756 | 256,889 | 651,811 | 623,010 | |
General corporate expenses | 47,269 | 46,161 | 160,722 | 136,694 | |
Acquisition, integration and other action-related charges | 9,937 | 20,732 | 43,919 | 65,514 | |
Amortization of intangibles | 8,630 | 10,091 | 26,230 | 28,404 | |
Other expenses | (8,066) | (7,285) | (23,766) | (19,616) | |
Interest expense, net | 43,091 | 52,795 | 137,672 | 146,988 | |
Income before income tax expense | 218,599 | 196,809 | 490,373 | 456,406 | |
Other Employee Related Liabilities | 11,517 | 11,517 | $ 10,806 | ||
Employee termination and other benefits paid | 11,681 | ||||
Employee termination and other benefits | 12,392 | ||||
Innerwear | |||||
Net sales: | |||||
Net sales | 578,453 | 599,726 | 1,733,002 | 1,785,498 | |
Segment operating profit: | |||||
Total operating profit | 121,467 | 132,244 | 375,623 | 392,792 | |
Activewear | |||||
Net sales: | |||||
Net sales | 548,117 | 554,953 | 1,401,734 | 1,306,863 | |
Segment operating profit: | |||||
Total operating profit | 97,314 | 93,605 | 209,686 | 189,400 | |
International | |||||
Net sales: | |||||
Net sales | 663,525 | 619,435 | 1,878,568 | 1,735,184 | |
Segment operating profit: | |||||
Total operating profit | 107,168 | 99,624 | 280,944 | 253,243 | |
Total segment operating profit | |||||
Segment operating profit: | |||||
Total operating profit | 335,592 | 333,873 | 882,682 | 853,622 | |
Accrued liabilities | |||||
Segment operating profit: | |||||
Other Employee Related Liabilities | 9,548 | 9,548 | |||
Other Noncurrent Liabilities | |||||
Segment operating profit: | |||||
Other Employee Related Liabilities | 1,969 | 1,969 | |||
Total | |||||
Segment operating profit: | |||||
Acquisition, integration and other action-related charges | 9,937 | 20,732 | 43,919 | 65,514 | |
Cost of Sales | |||||
Segment operating profit: | |||||
Acquisition, integration and other action-related charges | 9,424 | 11,760 | 39,714 | 33,596 | |
Employee termination and other benefits | 9,720 | ||||
Selling, General and Administrative Expenses | |||||
Segment operating profit: | |||||
Acquisition, integration and other action-related charges | 513 | 8,972 | 4,205 | 31,918 | |
Employee termination and other benefits | 2,672 | ||||
Corporate, Non-Segment | |||||
Net sales: | |||||
Net sales | 76,872 | 74,593 | 202,614 | 208,109 | |
Segment operating profit: | |||||
Total operating profit | $ 9,643 | $ 8,400 | $ 16,429 | $ 18,187 |