Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 02, 2021 | Jan. 29, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 | ||
Trading Symbol | HBI | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 3,614,190,632 | ||
Entity Common Stock, Shares Outstanding | 348,804,893 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference to portions of the registrant’s proxy statement for its 2021 annual meeting of stockholders. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001359841 | ||
Current Fiscal Year End Date | --01-02 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | $ 6,664,350 | $ 6,966,923 | $ 6,803,955 |
Cost of sales | 1,676,036 | 1,191,553 | 1,105,767 | 842,730 | 1,044,262 | 1,149,934 | 1,085,404 | 967,993 | 4,816,086 | 4,247,593 | 4,150,736 |
Gross profit | 124,807 | 616,713 | 633,012 | 473,732 | 706,743 | 717,033 | 675,523 | 620,031 | 1,848,264 | 2,719,330 | 2,653,219 |
Selling, general and administrative expenses | 568,543 | 442,142 | 391,476 | 439,602 | 463,328 | 449,962 | 445,923 | 470,387 | 1,841,763 | 1,829,600 | 1,788,568 |
Operating profit | (443,736) | 174,571 | 241,536 | 34,130 | 243,415 | 267,071 | 229,600 | 149,644 | 6,501 | 889,730 | 864,651 |
Other expenses | 6,283 | 5,309 | 5,050 | 6,490 | 7,658 | 8,066 | 8,249 | 7,451 | 23,132 | 31,424 | 26,395 |
Interest expense, net | 44,115 | 43,868 | 41,659 | 36,849 | 40,907 | 43,091 | 46,522 | 48,059 | 166,491 | 178,579 | 194,675 |
Income (loss) before income tax expense | (494,134) | 125,394 | 194,827 | (9,209) | 194,850 | 215,914 | 174,829 | 94,134 | (183,122) | 679,727 | 643,581 |
Income tax expense (benefit) | (161,970) | 22,116 | 33,646 | (1,335) | 9,864 | 30,823 | 25,274 | 13,046 | (107,543) | 79,007 | 103,915 |
Net income (loss) | $ (332,164) | $ 103,278 | $ 161,181 | $ (7,874) | $ 184,986 | $ 185,091 | $ 149,555 | $ 81,088 | $ (75,579) | $ 600,720 | $ 539,666 |
Earnings (loss) per share: | |||||||||||
Basic | $ (0.95) | $ 0.29 | $ 0.46 | $ (0.02) | $ 0.51 | $ 0.51 | $ 0.41 | $ 0.22 | $ (0.21) | $ 1.65 | $ 1.48 |
Diluted | $ (0.95) | $ 0.29 | $ 0.46 | $ (0.02) | $ 0.51 | $ 0.51 | $ 0.41 | $ 0.22 | $ (0.21) | $ 1.64 | $ 1.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (75,579) | $ 600,720 | $ 539,666 |
Other comprehensive income (loss): | |||
Translation adjustments | 104,318 | (7,153) | (113,555) |
Unrealized gain (loss) on qualifying cash flow hedges, net of tax of $6,870, $6,222, and ($11,297), respectively | (24,454) | (10,806) | 35,978 |
Unrecognized income (loss) from pension and postretirement plans, net of tax of $10,195, $9,047, and ($4,852), respectively | (29,175) | (25,006) | 13,841 |
Total other comprehensive income (loss) | 50,689 | (42,965) | (63,736) |
Comprehensive income (loss) | $ (24,890) | $ 557,755 | $ 475,930 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Tax portion of unrealized gain (loss) on qualifying cash flow hedges | $ 6,870 | $ 6,222 | $ (11,297) |
Tax portion of unrecognized income (loss) from pension and postretirement plans | $ 10,195 | $ 9,047 | $ (4,852) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Assets | ||
Cash and cash equivalents | $ 909,437 | $ 328,876 |
Trade accounts receivable, net | 831,860 | 815,210 |
Inventories | 1,491,095 | 1,905,845 |
Other current assets | 175,995 | 174,634 |
Total current assets | 3,408,387 | 3,224,565 |
Property, net | 545,771 | 587,896 |
Right-of-use assets | 467,268 | 487,787 |
Trademarks and other identifiable intangibles, net | 1,578,017 | 1,520,800 |
Goodwill | 1,255,630 | 1,235,711 |
Deferred tax assets | 373,414 | 203,331 |
Other noncurrent assets | 70,387 | 93,896 |
Total assets | 7,698,874 | 7,353,986 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 948,511 | 959,006 |
Accrued liabilities and other: | ||
Payroll and employee benefits | 161,606 | 159,058 |
Advertising and promotion | 217,878 | 163,842 |
Other | 363,811 | 208,284 |
Lease liabilities | 146,842 | 166,091 |
Notes payable | 784 | 4,244 |
Current portion of long-term debt | 263,936 | 110,914 |
Total current liabilities | 2,103,368 | 1,771,439 |
Long-term debt | 3,739,434 | 3,256,870 |
Lease liabilities - noncurrent | 360,352 | 358,281 |
Pension and postretirement benefits | 428,026 | 403,458 |
Other noncurrent liabilities | 253,736 | 327,343 |
Total liabilities | 6,884,916 | 6,117,391 |
Stockholders’ equity: | ||
Preferred stock (50,000,000 authorized shares; $.01 par value) Issued and outstanding — None | 0 | 0 |
Common stock (2,000,000,000 authorized shares; $.01 par value) Issued and outstanding —348,802,220 and 362,449,037, respectively | 3,488 | 3,624 |
Additional paid-in capital | 307,883 | 304,395 |
Retained earnings | 1,069,546 | 1,546,224 |
Accumulated other comprehensive loss | (566,959) | (617,648) |
Total stockholders’ equity | 813,958 | 1,236,595 |
Total liabilities and stockholders’ equity | $ 7,698,874 | $ 7,353,986 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 02, 2021 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 348,802,220 | 362,449,037 |
Common stock, shares outstanding | 348,802,220 | 362,449,037 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 30, 2017 | $ 601,463 | $ 3,601 | $ 271,462 | $ 758,531 | $ (432,131) |
Beginning Balance, Shares at Dec. 30, 2017 | 360,126,000 | ||||
Net income (loss) | 539,666 | 539,666 | |||
Dividends ($0.60 per common share) | $ (218,694) | (218,694) | |||
Dividends, per common share | $ 0.60 | ||||
Other Comprehensive Income (Loss) | $ (63,736) | (63,736) | |||
Stock-based compensation | 21,063 | 21,063 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,204,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (7,636) | $ 12 | (7,648) | ||
Ending Balance at Dec. 29, 2018 | 872,126 | $ 3,613 | 284,877 | 1,079,503 | (495,867) |
Ending Balance, Shares at Dec. 29, 2018 | 361,330,000 | ||||
Net income (loss) | 600,720 | 600,720 | |||
Dividends ($0.60 per common share) | $ (219,371) | (219,371) | |||
Dividends, per common share | $ 0.60 | ||||
Other Comprehensive Income (Loss) | $ (42,965) | (42,965) | |||
Stock-based compensation | 8,908 | 8,908 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,119,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (3,753) | $ 11 | (3,764) | ||
Modification of deferred compensation plans | 14,374 | 14,374 | |||
Cumulative effect of change in adoption of leases standard | 6,556 | 6,556 | |||
Stranded tax related to U.S. pension plan | 0 | 78,816 | (78,816) | ||
Ending Balance at Dec. 28, 2019 | $ 1,236,595 | $ 3,624 | 304,395 | 1,546,224 | (617,648) |
Ending Balance, Shares at Dec. 28, 2019 | 362,449,037 | 362,449,000 | |||
Net income (loss) | $ (75,579) | (75,579) | |||
Dividends ($0.60 per common share) | $ (213,230) | (213,230) | |||
Dividends, per common share | $ 0.60 | ||||
Other Comprehensive Income (Loss) | $ 50,689 | 50,689 | |||
Stock-based compensation | 18,664 | 18,664 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 817,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (2,912) | $ 9 | (2,921) | ||
Stock repurchases, shares | (14,464,000) | ||||
Stock repurchases | (200,269) | $ (145) | (12,255) | (187,869) | |
Ending Balance at Jan. 02, 2021 | $ 813,958 | $ 3,488 | $ 307,883 | $ 1,069,546 | $ (566,959) |
Ending Balance, Shares at Jan. 02, 2021 | 348,802,220 | 348,802,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Operating activities: | |||
Net income (loss) | $ (75,579) | $ 600,720 | $ 539,666 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Depreciation | 95,759 | 96,030 | 95,359 |
Amortization of acquisition intangibles | 24,718 | 24,868 | 25,670 |
Other amortization | 11,969 | 10,069 | 10,767 |
Inventory write-down charges | 584,671 | 0 | 0 |
Impairment of intangible assets and goodwill | 45,492 | 0 | 0 |
Amortization of debt issuance costs | 11,565 | 10,731 | 9,278 |
Stock compensation expense | 18,969 | 9,277 | 21,416 |
Deferred taxes | (161,215) | 41,817 | 26,611 |
Other | 8,501 | 5,033 | (1,134) |
Changes in assets and liabilities, net of acquisition and disposition of businesses: | |||
Accounts receivable | (6,945) | 45,157 | 10,269 |
Inventories | (136,057) | 147,330 | (202,019) |
Other assets | (1,144) | (6,597) | (7,585) |
Accounts payable | (32,641) | (67,390) | 165,788 |
Accrued pension and postretirement benefits | (18,832) | (9,843) | (5,024) |
Accrued liabilities and other | 79,238 | (103,770) | (45,660) |
Net cash from operating activities | 448,469 | 803,432 | 643,402 |
Investing activities: | |||
Capital expenditures | (53,735) | (101,084) | (86,293) |
Proceeds from sales of assets | 671 | 4,884 | 2,557 |
Acquisition of businesses, net of cash acquired | 0 | (25,232) | (334,915) |
Other | 11,982 | 11,772 | 0 |
Net cash from investing activities | (41,082) | (109,660) | (418,651) |
Financing activities: | |||
Borrowings on notes payable | 234,682 | 341,117 | 278,147 |
Repayments on notes payable | (239,008) | (342,576) | (286,591) |
Borrowings on Accounts Receivable Securitization Facility | 227,061 | 246,417 | 213,336 |
Repayments on Accounts Receivable Securitization Facility | (227,061) | (408,025) | (176,937) |
Borrowings on Revolving Loan Facilities | 1,638,000 | 3,198,277 | 3,546,360 |
Repayments on Revolving Loan Facilities | (1,756,189) | (3,199,592) | (3,506,500) |
Borrowings on Senior Notes | 700,000 | 0 | 0 |
Repayments on Term Loan Facilities | 0 | 413,498 | 31,875 |
Borrowings on International Debt | 31,222 | 27,680 | 0 |
Repayments on International Debt | (36,383) | (48,327) | (1,105) |
Share repurchases | (200,269) | 0 | 0 |
Cash dividends paid | (210,385) | (216,958) | (216,316) |
Payments of Debt Issuance Costs | (15,018) | (1,203) | (677) |
Other | (4,483) | (7,322) | (18,339) |
Net cash from financing activities | 142,169 | (824,010) | (200,497) |
Effect of changes in foreign exchange rates on cash | 31,124 | 4,429 | 9,912 |
Change in cash, cash equivalents and restricted cash | 580,680 | (125,809) | 34,166 |
Cash, cash equivalents and restricted cash at beginning of year | 329,923 | 455,732 | 421,566 |
Cash, cash equivalents and restricted cash at end of year | 910,603 | 329,923 | 455,732 |
Less restricted cash at end of year | 1,166 | 1,047 | 22,710 |
Cash and cash equivalents per balance sheet at end of year | $ 909,437 | $ 328,876 | $ 433,022 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation Hanesbrands Inc., a Maryland corporation (the “Company”), is a consumer goods company with a portfolio of leading apparel brands, including Hanes, Champion, Bonds , DIM, Bali, Maidenform, Playtex, Bras N Things , Nur Die/Nur Der, JMS/Just My Size, Wonderbra, Lovable, Alternative , Berlei, L’eggs and Gear for Sports. The Company designs, manufactures, sources and sells a broad range of basic apparel such as T-shirts, bras, panties, shapewear, underwear, socks, hosiery and activewear. The Company’s fiscal year ends on the Saturday closest to December 31. All references to “2020”, “2019” and “2018” relate to the 53-week fiscal year ended on January 2, 2021, and the 52-week fiscal years ended on December 28, 2019 and December 29, 2018, respectively. Two subsidiaries of the Company close one day after the Company’s consolidated year end. The difference in reporting of financial information for these subsidiaries did not have a material impact on the Company’s financial condition, results of operations or cash flows. Business Strategy With the arrival of its new Chief Executive Officer in August of 2020, the Company undertook a comprehensive global business review focused on building consumer-centric growth. The review resulted in the Company’s Full Potential plan, which is its multi-year growth strategy that focuses on four pillars to drive growth and enhance long-term profitability and identifies the initiatives to unlock growth. The Company’s four pillars of growth are to grow the Champion brand globally, drive growth in Innerwear with brands and products that appeal to younger consumers, build e-commerce excellence across channels and streamline its global portfolio. In the fourth quarter of 2020, the Company began the early implementation its Full Potential plan including a number of actions to simplify its business including streamlining its portfolio and SKU rationalization. As a result of COVID-19 vaccines rolling out around the world along with slowing retail orders and a flood of competitive offerings, the Company’s future personal protective equipment (“PPE”) sales opportunities have been dramatically reduced. Therefore, the Company does not view PPE as a future growth opportunity for the Company. The Company recorded a charge of $373,767 to write down its entire PPE inventory balance to its estimated net realizable value and a charge of $26,400 to accrue for vendor commitments for PPE materials expected to be paid in 2021. Additionally, the Company commenced an initiative to reduce 20% of its SKUs in inventory in order to streamline product offerings while also implementing a formal lifecycle management process. As a result, the Company recorded a charge of $210,904 to write down inventory to its estimated net realizable value taking into account its initiatives. These initiatives will position the Company for long-term growth by driving higher margin sales, lowering costs and improving service to customers. In addition, on February 9, 2021, as part of its strategic review, the Company announced that it is exploring strategic alternatives for its European Innerwear business. Impact of COVID-19 The global novel coronavirus ("COVID-19") pandemic has impacted the Company’s business operations and financial results in 2020. During 2020, the rapid expansion of the COVID-19 pandemic resulted in a sharp decline in net sales and earnings in the Company’s apparel businesses due to decreased customer traffic and temporary retail store closures worldwide. While many of the Company’s retail stores were temporarily closed for varying periods of time throughout 2020, most were reopened by the end of the second quarter but have experienced, and are expected to continue to experience, reductions in customer traffic and therefore, net sales. In addition, many of the Company’s wholesale customers have also experienced business disruptions, including lower traffic and consumer demand, resulting in decreased shipments to these customers. Sales of PPE, used to help mitigate the spread of the COVID-19 virus, partially offset the negative impact of the decline in net sales and earnings due to the COVID-19 pandemic on the Company’s financial results. In addition, the Company’s e-commerce sites have remained open in all regions and online sales have grown as consumer spending continued to shift towards online shopping experiences due to the changing retail landscape as a result of the COVID-19 pandemic. The Company’s operating results also reflected impairment charges related to intangible assets and goodwill, charges to reserve for increased excess and obsolete inventory, bad debt charges and charges to re-start the Company’s supply chain following the extended shut-down of parts of its manufacturing network due to the ongoing effects of the COVID-19 pandemic. While many retail stores reopened and some government restrictions were removed or lightened, many locations across the globe have experienced significant recent increases in COVID-19 cases as well as additional government restrictions, and the ultimate impact of the COVID-19 pandemic remains highly uncertain and could continue to have a material adverse impact on the Company’s business operations and financial results, including net sales, earnings and cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The duration and severity of the COVID-19 pandemic, which is subject to uncertainty, is having a significant impact on the Company’s business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may vary from these estimates. (c) Foreign Currency Translation Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in both the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Income. (d) Sales Recognition and Incentives The Company recognizes revenue 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. The Company records a sales reduction for returns and allowances based upon historical return experience. The Company earns royalty revenues through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensee. The Company offers a variety of sales incentives to resellers and consumers of its products, and the policies regarding the recognition and display of these incentives within the Consolidated Statements of Income are as follows: Discounts, Coupons, and Rebates The Company provides customers with discounts and rebates that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the product revenue is recognized. The cost of these incentives is estimated using a number of factors, including historical utilization and redemption rates. The Company includes incentives offered in the form of free products in the determination of cost of sales. For all variable consideration, where appropriate, the Company estimates the amount using the expected value, which takes into consideration historical experience, current contractual requirements, specific known market events and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts. Volume-Based Incentives Volume-based incentives involve rebates or refunds of cash that are redeemable only if the customer completes a specified number of sales transactions. Under these incentive programs, the Company estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. The Company records volume-based incentives as a reduction of revenue. Cooperative Advertising Under cooperative advertising arrangements, the Company agrees to reimburse the retailer for a portion of the costs incurred by the retailer to advertise and promote certain of the Company’s products. The Company recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity takes place as a reduction of revenue. Fixtures and Racks Store fixtures and racks are periodically used by resellers to display Company products. The Company expenses the cost of these fixtures and racks in the period in which they are delivered to the resellers. The Company includes the costs of fixtures and racks incurred by resellers and charged back to the Company in the determination of net sales. Fixtures and racks purchased by the Company and provided to resellers are included in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Product Returns The Company generally offers customers a limited right of return for a purchased product. The Company estimates the amount of its product sales that may be returned by its customers and records this as a reduction of revenue in the period the related product revenue is recognized. (e) Advertising Expense Advertising represents one of several brand building methods used by the Company. Advertising costs, which include the development and production of advertising materials and the communication of these materials through various forms of media, are expensed in the period the advertising first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income of $130,432, $163,769 and $152,670 in 2020, 2019 and 2018, respectively. (f) Shipping and Handling Costs Revenue received for shipping and handling costs is included in net sales and was $18,943, $19,536 and $19,315 in 2020, 2019 and 2018, respectively. Shipping costs, which comprise payments to third-party shippers, and handling costs, which consist of warehousing costs in the Company’s various distribution facilities, were $429,473, $441,766 and $409,098 in 2020, 2019 and 2018, respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. (g) Research and Development Research and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Research and development includes expenditures for new product, technological improvements for existing products and process innovation, which primarily consist of salaries, consulting and supplies attributable to time spent on research and development activities. Additional costs include depreciation and maintenance for research and development equipment and facilities. Research and development expense was $44,710, $51,520 and $59,313 in 2020, 2019 and 2018, respectively. (h) Defined Contribution Benefit Plans The Company sponsors 401(k) plans as well as other defined contribution benefit plans. Expense for these plans was $35,625, $28,907 and $25,799 in 2020, 2019 and 2018, respectively. (i) Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Other current assets” in the Consolidated Balance Sheets. At January 2, 2021 and December 28, 2019, the Company’s restricted cash balance was $1,166 and $1,047, respectively, which represents cash paid into the escrow account for the Bras N Things acquisition that closed in the first quarter of 2018. (j) Accounts Receivable Valuation Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable portfolio. Trade receivables are evaluated on a collection (pool) basis and aggregated on the basis of similar risk characteristics which are determined on the basis of historical losses, the aging of trade receivables, industry trends, and its customers’ financial strength, credit standing and payment and default history. (k) Inventory Valuation Inventories are stated at the estimated lower of cost or net realizable value. Cost is determined by the first-in, first-out, or “FIFO,” method for inventories. Obsolete, damaged, and excess inventory is carried at the net realizable value, which is determined by assessing historical recovery rates, current market conditions and future marketing and sales plans. Rebates, discounts and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item and are therefore reflected in cost of sales when the related inventory item is sold. (l) Property Property is stated at historical cost and depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Machinery and equipment is depreciated over periods ranging from one to 15 years and buildings and building improvements over periods of up to 40 years. A change in the depreciable life is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods. Additions and improvements that substantially extend the useful life of a particular asset and interest costs incurred during the construction period of major properties are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or disposition of an asset, the cost and related accumulated depreciation are removed from the accounts. Property is tested for recoverability whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Such events include significant adverse changes in the business climate, several periods of operating or cash flow losses, forecasted continuing losses or a current expectation that an asset or an asset group will be disposed of before the end of its useful life. Recoverability of property is evaluated by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the estimated fair value. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized impairment loss is not permitted under GAAP. (m) 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 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. 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 the lease 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. (n) Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, licensing agreements, customer and distributor relationships and computer software. Identifiable intangible assets with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of a finite-lived intangible asset is based upon a number of factors, including the effects of demand, competition, expected changes in distribution channels and the level of maintenance expenditures required to obtain future cash flows. Trademarks determined to have finite lives are generally amortized over periods ranging from ten to 12 years, license agreements are generally amortized over periods ranging from three to 17 years, customer and distributor relationships are generally amortized over periods ranging from one to 15 years and computer software and other intangibles are generally amortized over periods ranging from one to 13 years. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used in evaluating elements of property. Identifiable intangible assets not subject to amortization are assessed for impairment at least annually, as of the first day of the third fiscal quarter, and as triggering events occur. The impairment test for identifiable intangible assets not subject to amortization consists of comparing the fair value of the intangible asset, which is determined using the income approach, to its carrying value. If the carrying value exceeds the fair value of the asset, an impairment loss is recognized in an amount equal to such excess. Fair values of intangible assets are primarily based on future cash flows projected to be generated from that asset. In performing the discounted cash flow analysis, management makes various judgments, estimates and assumptions, the most significant of which are the assumptions related to revenue growth rates, operating profit margin rates, terminal growth rates, and discount rates. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of intangible asset impairment. During the second quarter of 2020, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets as a result of the significant impact of the COVID-19 pandemic on their performance. Based on this analysis, the Company recorded impairment charges of $20,319 on certain indefinite-lived trademarks and other intangible assets within the European Innerwear business. The Company capitalizes internal software development costs incurred during the application development stage, which include the actual costs to purchase software from vendors and generally include personnel and related costs for employees who were directly associated with the enhancement and implementation of purchased computer software. Additions to computer software are included in the “Capital expenditures” line in the Consolidated Statements of Cash Flows. (o) Goodwill Goodwill is the amount by which the purchase price exceeds the fair value of the assets acquired and liabilities assumed in a business combination. When a business combination is completed, the assets acquired and liabilities assumed are assigned to the reporting unit or units of the Company given responsibility for managing, controlling and generating returns on these assets and liabilities. In many instances, all of the acquired assets and assumed liabilities are assigned to a single reporting unit and in these cases, all of the goodwill is assigned to the same reporting unit. In those situations in which the acquired assets and liabilities are allocated to more than one reporting unit, the goodwill to be assigned to each reporting unit is determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. Goodwill is not amortized; however, it is assessed for impairment at least annually, as of the first day of the third quarter, and as triggering events occur. In evaluating the recoverability of goodwill, the Company estimates the fair value of its reporting units, which is determined using the income approach, and compares it to the carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to such excess. Fair values of reporting units are primarily based on future cash flows projected to be generated from that business. In performing the discounted cash flow analysis, management makes various judgments, estimates and assumptions, the most significant of which are the assumptions related to revenue growth rates, operating profit margin rates, terminal growth rates, and discount rates. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. In the fourth quarter of 2020, the Company determined that there was a triggering event associated with its U.S. Hosiery reporting unit due to a significant decline in performance below management’s expectations and loss of a future wholesale hosiery program. Based on the updated qualitative analysis, the Company recorded impairment charges for the full amount of goodwill related to the U.S. Hosiery reporting unit of $25,173. (p) Insurance Reserves The Company is self-insured for property, workers’ compensation, medical and other casualty programs up to certain stop-loss limits. Undiscounted liabilities for self-insured exposures are accrued at the present value of the expected aggregate losses below those limits and are based on a number of assumptions, including historical trends, actuarial assumptions and economic conditions. (q) Stock-Based Compensation The Company established the Hanesbrands Inc. Omnibus Incentive Plan (As Amended and Restated), (the “Omnibus Incentive Plan”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retain employees. Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized as expense over the requisite service period. The Company estimates forfeitures for stock-based awards granted that are not expected to vest. (r) Income Taxes Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. Given continuing losses in certain jurisdictions in which the Company operates on a separate return basis, a valuation allowance has been established for the deferred tax assets in these specific locations. The Company periodically estimates the probable tax obligations using historical experience in tax jurisdictions and informed judgment. There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. Income tax expense is adjusted in the period in which these events occur, and these adjustments are included in the Company’s Consolidated Statements of Income. If such changes take place, there is a risk that the Company’s effective tax rate may increase or decrease in any period. A company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The enacted Tax Cuts and Jobs Act (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system that included a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. In 2018, the Company completed the accounting for the enactment of the Tax Act based upon its current interpretation of the Tax Act in accordance with available notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service. The Company adjusts its accounting as necessary when new guidance is issued. The Company continues to use 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. (s) Financial Instruments 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. The use of these financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. Depending on the nature of the underlying risk being hedged, these financial instruments are either designated as cash flow hedges or are economic hedges against changes in the value of the hedged item and therefore not designated as hedges for accounting purposes. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. On the date the derivative is entered into, the Company determines whether the derivative meets the criteria for cash flow hedge accounting treatment or whether the financial instrument is serving as an economic hedge against changes in the value of the hedged item and therefore is not designated as a hedge for accounting purposes. The accounting for changes in fair value of the derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company formally documents its hedge relationships, including identifying the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments or forecasted transactions. The Company also formally assesses, both at inception and on a monthly basis thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. Cash flows hedges are classified in the same category as the item being hedged, and cash flows from derivative contracts not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties to the Company’s derivative contracts. Risk of nonperformance by counterparties is mitigated by dealing with highly rated counterparties and by diversifying across counterparties. Cash Flow Hedges For a cash flow hedge, the Company formally assesses, both at inception and on a monthly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. The change in the fair value of a derivative instrument that is designated and highly effective as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line in the Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in AOCI is recorded on the same line in the Consolidated Statements of Income as the hedged item. 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. If it is determined that a designated derivative instrument ceases to be a highly effective cash flow hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded on the same line in the Consolidated Statements of Income as the hedged item. Net Investment Hedges For a net investment hedge, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative or nonderivative instrument is highly effective as an economic hedge of foreign exchange risk associated with the hedged net investment. The change in the fair value of a derivative instrument or the change in the carrying value of a nonderivative instrument that is designated and highly effective as a net investment hedge is recorded in the cumulative translation adjustment component of AOCI, offsetting the translation adjustment of the net investment being hedged. The Company assesses net investment hedge effectiveness and measures net investment hedge results for both derivative and nonderivative hedging instruments on an after-tax basis. The interest component of a cross-currency swap derivative contract designated in a highly effective net investment hedge 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 derivative contract and recorded in the “Interest expense, net” line in the Consolidated Statements of Income. Cash flows from the periodic and final settlements of the cross-currency swap contracts are reported as cash flows from investing activities in the 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. If a net investment hedging relationship ceases to be highly effective, the Company discontinues hedge accounting, and any future change in the fair value of the derivative hedging instrument or future change in the carrying value of the nonderivative hedging instrument is recorded in the “Other expenses” line in the Consolidated Statements of Income, which is where the gain or loss on the sale or substantial liquidation of the underlying net investment would be recorded. However, any deferred gains or losses previously recorded in the cumulative translation adjustment component of AOCI will remain in AOCI until the hedged net investment is sold or substantially liquidated, at which time the cumulative deferred gains or losses are recorded in the “Other expenses” line in the Consolidated Statements of Income. Derivative Contracts Not Designated as Hedges For derivative contracts not designated as hedges, changes in fair value are reported in the “Cost of Sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Income. These contracts are recorded at fair value when the hedged item is recorded as an asset or liability and then are revalued each accounting period. (t) Assets and Liabilities Acquired in Business Combinations Business combinations are accounted for using the purchase method, which requires the Company to allocate the cost of an acquired business to the acquired assets and assumed liabilities based on their estimated fair values at the acquisition date. The Company recognizes the excess of an acquired business’ cost over the fair value of acquired assets and assumed liabilities as goodwill. Fair values are determined using the income approach based on market participant assumptions focusing on future cash flow projections and accepted industry standards. (u) Recently Issued Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 accounting rules eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The new accounting rules were effective for the Company in the first quarter of 2020 and apply to its trade receivables. Under the new accounting rules, trade receivables are now evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These classifications will be reassessed at each measurement date. A combination of factors, such as industry trends, customers’ financial strength, credit standing and payment and default history are considered in determining the appropriate estimate of expected credit losses. 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. 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 accounting rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test which previously measured a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new accounting rules were effective for the Company in the first quarter of 2020. As a result of adopting the new rules, the Company compared the estimated fair value of its reporting units to their respective carrying values when evaluating the recoverability of goodwill. When the carrying value of a reporting unit exceeds its fair value, an impairment charge will be recognized for the amount by which its carrying value exceeds the reporting unit’s fair value; however, the loss recognized will not exceed the goodwill allocated to the reporting unit. In the fourth quarter of 2020, the Company recorded impairment charges of $25,173 on goodwill related to the U.S. Hosiery reporting unit as described in Note “Intangible Assets and Goodwill”. Fair Value In August 2018, the FASB issued ASU 2018-13, “Fair Value Measureme |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 02, 2021 | |
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: Years Ended January 2, December 28, December 29, Third-party brick-and-mortar wholesale $ 4,776,152 $ 5,263,692 $ 5,288,966 Consumer-directed 1,888,198 1,703,231 1,514,989 Total net sales $ 6,664,350 $ 6,966,923 $ 6,803,955 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. Additionally, third-party brick-and-mortar wholesale revenue for the year ended January 2, 2021 includes $645,776 of revenue from contracts with governments generated from the sale of both cloth face coverings and gowns for use to help mitigate the spread of the virus during the COVID-19 pandemic. Consumer-Directed Revenue |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 02, 2021 | |
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 the year ended December 29, 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 year ended December 28, 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 January 2, 2021 and December 28, 2019 included in the “Other current assets” line in the Consolidated Balance Sheets. The results of Bras N Things have been included in the Company’s consolidated financial statements since the date of acquisition and are reported as part of the International segment. Bras N Things is a leading intimate apparel retailer that sells proprietary bras, panties and lingerie sets through a retail network of approximately 170 brick-and-mortar retail stores at acquisition date in Australia, New Zealand and South Africa. The Company believes this acquisition creates opportunities for expansion of the Bras N Things’ consumer-directed sales model. Factors that contribute to the amount of goodwill recognized for the acquisition include the value of entry into the outlet store sector, expansion of online presence, including the third-party marketplace, and expected synergies with existing Company functions. Goodwill associated with the acquisition is not tax deductible. Bras N Things trademark and brand name, which management believes to have an indefinite life, have been valued at $275,071. Amortizable intangible assets have been assigned values of $2,358 for noncompete agreements and $785 for a customer list. Noncompete agreements and the customer list are being amortized over three years. 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 assuming that the 2018 acquisition of Bras N Things had occurred on January 1, 2017. Year Ended December 29, Net sales $ 6,822,462 Net income from continuing operations 542,696 Earnings per share from continuing operations: Basic $ 1.49 Diluted 1.49 Champion Europe On June 30, 2016, the Company acquired 100% of Champion Europe S.p.A. (“Champion Europe”), which owns the trademark for the Champion |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) was computed by dividing net income (loss) 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: Years Ended January 2, December 28, December 29, Basic weighted average shares outstanding 352,766 364,709 363,513 Effect of potentially dilutive securities: Stock options — 430 801 Restricted stock units — 376 186 Employee stock purchase plan and other — 4 5 Diluted weighted average shares outstanding 352,766 365,519 364,505 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe Company established the Omnibus Incentive Plan to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retain employees. In April 2020, the stockholders of the Company approved the Hanesbrands Inc. 2020 Omnibus Incentive Plan (the “2020 Omnibus Plan”). The Company satisfies the requirement for common shares for share-based payments to employees pursuant to the 2020 Omnibus Plan by issuing newly authorized shares. The 2020 Omnibus Plan authorized a total of 11,000 shares of common stock of the Company for awards granted under the 2020 Omnibus Plan, plus the number of shares of common stock of the Company available for grant under the predecessor Hanesbrands Inc. Omnibus Incentive Plan (the “Prior Plan”) that had not yet been made subject to awards under the Prior Plan as of the effective date of the 2020 Omnibus Plan. The 2020 Omnibus Plan authorized 74,220 shares for awards of stock options and restricted stock units, of which 17,322 shares were available for future grants as of January 2, 2021. In addition, during 2020, the Company granted stock awards to two newly hired executive officers outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08. Stock Options Under the Omnibus Incentive Plan, the exercise price of each stock option equals the closing market price of the Company’s stock on the date of grant. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during 2020, 2019 or 2018 under the Omnibus Incentive Plan. During 2020, the Company granted 250,000 stock options to a newly hired executive officer outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08. The exercise price of each stock option equals either the closing market price of the Company’s stock on the date of grant or the closing market price of the Company’s stock on the date of grant multiplied by a specified exercise premium factor applicable to each option. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model. The following table illustrates the assumptions for the Black-Scholes option-pricing model used in determining the fair value of these options granted during 2020. Year Ended January 2, Dividend yield 5.00 % Risk-free interest rate 0.31 % Volatility 39.97 % Expected term (years) 6 The dividend yield assumption is based on the Company’s historical dividend payments. The risk-free rate of interest is based on the yield of a zero-coupon U.S. Treasury bond on the date the award is granted having a maturity approximately equal to the expected term of the award. The expected volatility, expected term and forfeitures are estimated based on the historical experience of the Company’s stock price, exercise experience and employee turnover data, respectively. A summary of the changes in stock options outstanding to the Company’s employees is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at December 30, 2017 1,539 $ 5.24 $ 24,108 1.76 Exercised (756) 3.92 Options outstanding at December 29, 2018 783 $ 6.51 $ 4,449 1.54 Exercised (312) 6.09 Options outstanding at December 28, 2019 471 $ 6.79 $ 3,786 0.94 Granted 250 17.18 Exercised (471) 6.79 Options outstanding at January 2, 2021 250 $ 17.18 $ 22 9.59 Options exercisable at January 2, 2021 — $ — $ — — The total intrinsic value of options that were exercised during 2020, 2019 and 2018 was $3,299, $3,084 and $6,242, respectively. Stock Unit Awards Under the Omnibus Incentive Plan, restricted stock units (“RSUs”) of the Company’s stock are granted to certain Company non-employee directors and employees to incent performance and retention over periods of one to three years. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. Some RSUs which have been granted under the Omnibus Incentive Plan vest upon continued future service to the Company, while others also have a performanced-based vesting feature. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. During 2020, the Company granted 225,399 RSUs to two newly hired executive officers outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08. These grants included 119,143 non-performanced based awards which vest upon continued future service to the Company and 106,256 performanced-based awards which have a performanced-based vesting feature. These RSU are granted to induce employment and incent performance and retention over periods of two to three years. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. A summary of the changes in the restricted stock unit awards outstanding is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at December 30, 2017 2,666 $ 24.36 $ 55,741 2.00 Granted — non-performanced based 970 15.52 Granted — performanced based 777 15.57 Vested (1,114) 27.55 Forfeited (38) 25.15 Nonvested share units outstanding at December 29, 2018 3,261 $ 18.53 $ 39,747 2.23 Granted — non-performanced based 114 16.20 Granted — performanced based (93) 20.71 Vested (1,246) 20.66 Forfeited (169) 17.52 Nonvested share units outstanding at December 28, 2019 1,867 $ 16.93 $ 27,692 1.50 Granted — non-performanced based 1,006 14.26 Granted — performanced based 1,124 14.40 Vested (803) 19.08 Forfeited (83) 15.53 Nonvested share units outstanding at January 2, 2021 3,111 $ 14.64 $ 45,361 1.32 The total fair value of shares vested during 2020, 2019 and 2018 was $15,325, $25,730 and $30,701, respectively. Certain participants elected to defer receipt of shares earned upon vesting. In addition to granting RSUs that vest solely upon continued future service to the Company, the Company also grants performanced-based RSUs where the number of shares of the Company’s common stock that will be received upon vesting range from 0% to 200% of the number of units granted based on the Company’s achievement of certain performance metrics. These performanced-based stock awards, which are included in the table above, represent awards that are earned based on future performance and service. As reported in the above table, the number of performanced-based RSUs granted each year represents the initial units granted on the date of grant plus or minus any adjustment for units that were earned based on the final achievement of the respective performance thresholds. For all share-based payments under the Omnibus Incentive Plan and outside the Omnibus Incentive Plan in 2020, during 2020, 2019 and 2018, the Company recognized total compensation expense of $18,664, $8,908 and $21,063 and recognized a deferred tax benefit of $1,808, $1,470 and $1,888, respectively. |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Allowances for Trade Accounts Receivable The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions are as follows: Allowance Allowance Total Balance at December 30, 2017 $ 13,572 $ 12,524 $ 26,096 Charged to expenses 15,813 13,487 29,300 Deductions and write-offs (8,893) (12,959) (21,852) Currency translation (430) (510) (940) Balance at December 29, 2018 $ 20,062 $ 12,542 $ 32,604 Charged to expenses 8,658 12,942 21,600 Deductions and write-offs (9,198) (11,101) (20,299) Currency translation (518) (159) (677) Balance at December 28, 2019 $ 19,004 $ 14,224 $ 33,228 Charged to expenses 33,921 15,165 49,086 Deductions and write-offs (14,929) (10,200) (25,129) Currency translation 863 306 1,169 Balance at January 2, 2021 $ 38,859 $ 19,495 $ 58,354 Charges to the allowance for doubtful accounts are reflected in the “Selling, general and administrative expenses” line and charges to the allowance for customer chargebacks and other customer deductions are primarily reflected as a reduction in the “Net sales” line in the Consolidated Statements of Income. Deductions and write-offs, which do not increase or decrease income, represent write-offs of previously reserved accounts receivable and allowed customer chargebacks and deductions against gross accounts receivable. Sales of Accounts Receivable The Company has entered into agreements to sell selected trade accounts receivable to financial institutions based on programs offered by certain of the Company’s largest customers. As a result of the strong credit worthiness of these customers, the discount taken on most of these programs is less than the marginal borrowing rate on the Company’s variable rate credit facilities. After the sale, the Company does not retain any interests in the receivables and the applicable financial institution services and collects these accounts receivable directly from the customer. Net proceeds of these accounts receivable sale programs are recognized in the Consolidated Statements of Cash Flows as part of operating cash flows. In addition to the programs noted above, in December 2019, the Company entered into agreements to sell selected trade accounts receivables to financial institutions based on programs sponsored by the Company. As a result of the strong credit worthiness of these customers, the discount taken on these programs is less than the marginal borrowing rate on the Company’s variable rate credit facilities. In a small portion of these programs, the Company obtains beneficial interest in the receivable subsequent to the sale. Cash received at the time of sale is recognized within the Consolidated Statements of Cash Flows as part of operating activities. Any subsequent cash received on the beneficial interest is recognized within the Consolidated Statements of Cash Flows as part of investing activities. At January 2, 2021 and December 28, 2019, the Company had $2,970 and $2,984 of beneficial interest assets, respectively. The Company is the servicer of the receivables under some of these arrangements and is responsible for performing all accounts receivable administration functions. Where the Company receives a fee to service and monitor these transferred accounts receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of such activities. The Company recognized total funding fees of $5,331, $9,891 and $9,566 in 2020, 2019 and 2018, respectively, for sales of accounts receivable to financial institutions in the “Other expenses” line in the Consolidated Statements of Income. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Inventories | Inventories Inventories consisted of the following: January 2, December 28, Raw materials $ 78,455 $ 83,545 Work in process 118,994 136,592 Finished goods 1,293,646 1,685,708 $ 1,491,095 $ 1,905,845 In the fourth quarter of 2020, the Company began the early implementation of its Full Potential plan including a number of actions to simplify its business including streamlining its portfolio and SKU rationalization. Specifically, the Company no longer views PPE as a future growth opportunity for the Company. The Company recorded a charge of $373,767 to write down its entire PPE inventory balance to its estimated net realizable value. Additionally, the Company commenced an initiative to reduce 20% of its SKUs in inventory in order to streamline product offerings while also implementing a formal lifecycle management process. As a result, the Company recorded a charge of $210,904 to write down inventory to its estimated net realizable value taking into account its initiatives. |
Property, Net
Property, Net | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Property, Net | Property, Net Property is summarized as follows: January 2, December 28, Land $ 46,576 $ 44,542 Buildings and improvements 517,379 500,733 Machinery and equipment 1,090,035 1,085,451 Construction in progress 25,414 33,625 1,679,404 1,664,351 Less accumulated depreciation 1,133,633 1,076,455 Property, net $ 545,771 $ 587,896 |
Leases
Leases | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Leases Disclosure | Leases In February 2016, the FASB issued 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 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 $6,556 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. In light of temporary store closures related to the COVID-19 pandemic, the Company took actions with respect to certain of its existing leases, including withholding rent payments and engaged with landlords to obtain rent deferrals and other rent concessions. Consistent with updated guidance from the FASB in April 2020, the Company elected to treat agreed-upon payment deferrals that resulted in the total payments required by the modified contract being substantially the same as total payments required by the contract as if there were no modifications to the lease contract. The Company elected to treat other agreed-upon rent concessions which resulted in reduced minimum lease payments as variable lease payments. For any agreed-upon rent concessions which change the payment terms from minimum rental amounts to amounts based on a percentage of sales volume, the Company elected to treat such changes as lease modifications under the current lease guidance. 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. The Company’s leases have remaining lease terms of one month to 37 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. Total operating lease costs, which includes short-term leases and variable cost, were $240,401 and $231,607 for the years ended January 2, 2021 and December 28, 2019, respectively. For the years ended January 2, 2021 and December 28, 2019, variable costs of $78,025 and $71,728, respectively, were included in total operating lease costs. Short-term lease costs were immaterial for the years ended January 2, 2021 and December 28, 2019. Rental expense under operating leases was $185,696 in 2018. The following table presents supplemental cash flow and non-cash information related to leases: Years Ended January 2, December 28, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 193,972 $ 158,140 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 51,087 $ 66,496 The following table presents supplemental information related to lease terms and discount rates: Years Ended January 2, December 28, Weighted average remaining lease term 5.0 years 5.3 years Weighted average discount rate 4.65 % 4.89 % The following table presents maturities of operating lease liabilities as of January 2, 2021: 2021 $ 162,225 2022 122,095 2023 97,432 2024 62,628 2025 40,954 Thereafter 82,705 Total lease payments 568,039 Less interest 60,845 $ 507,194 As of January 2, 2021, the Company’s additional operating lease contracts that have not yet commenced are immaterial. |
Notes Payable
Notes Payable | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Notes Payable | Notes Payable The Company had short-term revolving facilities in the following location at January 2, 2021 and December 28, 2019: Interest Rate as of January 2, Principal Amount January 2, December 28, Europe Various $ 784 $ 4,244 As of January 2, 2021, the Company had total borrowing availability of $118,142 under its international notes payable facilities. Total interest paid on notes payable was $153, $475 and $1,579 in 2020, 2019 and 2018, respectively. The Company was in compliance with the financial covenants contained in each of the facilities at January 2, 2021. |
Debt
Debt | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company had the following debt at January 2, 2021 and December 28, 2019: Interest Rate as of January 2, Principal Amount January 2, December 28, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 2.10% 625,000 625,000 December 2022 Term Loan B 1.90% 300,000 300,000 December 2024 Australian Revolving Loan Facility — — — July 2021 5.375% Senior Notes 5.38% 700,000 — May 2025 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% 610,724 558,847 June 2024 European Revolving Loan Facility — — 110,914 December 2020 Accounts Receivable Securitization Facility — — — March 2021 4,035,724 3,394,761 Less long-term debt issuance costs 32,354 26,977 Less current maturities 263,936 110,914 $ 3,739,434 $ 3,256,870 The Company’s primary financing arrangements are the senior secured credit facility (the “Senior Secured Credit Facility”), 5.375% senior notes (the “5.375% Senior Notes”), 4.875% senior notes (the “4.875% Senior Notes”), 4.625% senior notes (the “4.625% Senior Notes”), 3.5% senior notes (the “3.5% Senior Notes”) and the Accounts Receivable Securitization Facility. The outstanding balances at January 2, 2021 and December 28, 2019 are reported in the “Current portion of long-term debt” and “Long-term debt” lines in the Consolidated Balance Sheets. Total cash paid for interest related to debt in 2020, 2019 and 2018 was $158,299, $173,133 and $177,717, respectively. Senior Secured Credit Facility On December 15, 2017, the Company refinanced its Senior Secured Credit Facility to extend the maturity date of the Revolving Loan Facility to December 2022 and re-price at more favorable rates, extend the maturity date of the Term Loan A to December 2022 and re-price at more favorable rates, extend the maturity date of the Term Loan B to December 2024 and re-price at more favorable rates, and add an additional $325,750 in term loan borrowings ($144,375 for Term Loan A and $181,375 for Term Loan B). The Company incurred $11,935 in fees related to this refinancing. The proceeds of the Term Loan A and the Term Loan B were used to pay down existing borrowings under the Senior Secured Credit Facility and pay fees and expenses in connection with the closing of the Senior Secured Credit Facility. Proceeds of the Revolving Loan Facility are used for general corporate purposes and working capital needs. All borrowings under the Revolving Loan Facility must be repaid in full upon maturity. Outstanding borrowings under the Term Loan A are repayable in 1.25% quarterly installments, with the remainder of the outstanding principal to be repaid at maturity. In 2019, the Company prepaid a portion of the outstanding principal of Term Loan A and there are no quarterly installment payments due until the second quarter of 2021. Under the Term Loan B, outstanding borrowings were repayable in 0.25% quarterly installments, with the remainder of the outstanding principal to be repaid at maturity. In 2019, the Company prepaid a portion of the outstanding principal of Term Loan B and there are no quarterly installment payments due until maturity. Under the terms of the Senior Secured Credit Facility the Term Loan A and the Term Loan B require the Company to prepay any outstanding term loans in connection with (i) the incurrence of certain indebtedness and (ii) non-ordinary course asset sales or other dispositions (including as a result of casualty or condemnation) that exceed certain thresholds in any period of twelve-consecutive months, with customary reinvestment provisions. The Term Loan B also requires the Company to prepay any outstanding term loans in connection with excess cash flow, which percentage will be based upon the Company’s leverage ratio during the relevant fiscal period. All such prepayments will be made on a pro rata basis under each of the applicable term loans that are subject to such prepayments. As of January 2, 2021, the excess cash flow calculation requires a prepayment of $238,936 in 2021 on the Term Loan B. A portion of the Revolving Loan Facility is available for the issuances of letters of credit and the making of swingline loans, and any such issuance of letters of credit or making of a swingline loan will reduce the amount available under the Revolving Loan Facility. At the Company’s option, it may add one or more term loan facilities or increase the commitments under the Revolving Loan Facility so long as certain conditions are satisfied, including, among others, that no default or event of default is in existence, that the Company is in pro forma compliance with the financial covenants described below and, prior to the amendment of the Senior Secured Credit Facility in April 2020 described below, that the Company’s senior secured leverage ratio was less than 3.50 to 1.00 on a pro forma basis after giving effect to the incurrence of such indebtedness. As of January 2, 2021, the Company had $4,176 of standby and trade letters of credit issued and outstanding under the Revolving Loan Facility and $995,824 of borrowing availability. In March 2020, in response to the uncertainty of the circumstances surrounding the COVID-19 pandemic, the Company drew down $630,000 under the Revolving Loan Facility as a precautionary measure to provide the Company with additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the COVID-19 pandemic. The Company repaid $490,000 of its borrowings under the Revolving Loan Facility in April 2020. The remaining outstanding balance on the Revolving Loan Facility was repaid in connection with the issuance of the 5.375% Senior Notes in May 2020 discussed below. The Senior Secured Credit Facility is guaranteed by substantially all of the Company’s existing and future direct and indirect U.S. subsidiaries, with certain customary or agreed-upon exceptions for foreign subsidiaries and certain other subsidiaries. The Company and each of the guarantors under the Senior Secured Credit Facility have granted the lenders under the Senior Secured Credit Facility a valid and perfected first priority (subject to certain customary exceptions) lien and security interest in the following: • the equity interests of substantially all of the Company’s direct and indirect U.S. subsidiaries (other than U.S. subsidiaries directly or indirectly owned by foreign subsidiaries) and 65% of the voting securities of certain first tier foreign subsidiaries; and • substantially all present and future property and assets, real and personal, tangible and intangible, of the Company and each guarantor, except for certain enumerated interests, and all proceeds and products of such property and assets. Borrowings under the Revolving Loan Facility, the Term Loan A and the Term Loan B bear interest based on the LIBOR rate or the “base rate” plus, in each case, an applicable margin. Prior to the amendment of the Senior Secured Credit Facility in April 2020 described below, the applicable margin for the Revolving Loan Facility and the Term Loan A is determined by reference to a leverage-based pricing grid set forth in the Senior Secured Credit Facility, ranging from a maximum of 2.00% in the case of LIBOR-based loans and 1.00% in the case of Base Rate loans if the Company’s leverage ratio is greater than or equal to 4.50 to 1.00, and will step down in 0.25% increments to a minimum of 1.00% in the case of LIBOR-based loans and 0.00% in the case of Base Rate loans if the Company’s leverage ratio is less than 2.25 to 1.00. The applicable margin under the Term Loan B is 1.75% in the case of LIBOR-based loans and 0.75% in the case of Base Rate loans. The Senior Secured Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants. The Senior Secured Credit Facility requires that the Company maintain a minimum interest coverage ratio and a maximum total debt to EBITDA (earnings before interest, income taxes, depreciation expense and amortization, as computed pursuant to the Senior Secured Credit Facility), or leverage ratio. Prior to the amendment of the Senior Secured Credit Facility in April 2020 described below, the interest coverage ratio covenant required that the ratio of the Company’s EBITDA for the preceding four fiscal quarters to its consolidated total interest expense for such period shall not be less than 3.00 to 1.00 for each fiscal quarter and the leverage ratio covenant required that the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters will not be more than 4.50 to 1.00 for each fiscal quarter provided that, following a permitted acquisition in which the consideration is at least $200,000, such maximum leverage ratio covenant shall be increased to 5.00 to 1.00 for each fiscal quarter ending in the succeeding 12-month period following such permitted acquisition. The method of calculating all of the components used in the covenants is included in the Senior Secured Credit Facility. In addition, the commitment fee for the unused portion of revolving loan commitments made by the lenders is between 25 and 40 basis points based on the applicable commitment fee margin in effect from time to time. Prior to the amendment of the Senior Secured Credit Facility in April 2020 described below, when the leverage ratio (as defined in the Senior Secured Credit Facility) was greater than or equal to 4.50 to 1.00, the commitment fee margin was 0.40%. When the leverage ratio was less than 4.50 to 1.00 but greater than or equal to 3.00 to 1.00, the applicable commitment fee margin was 0.30%. When the leverage ratio was less than 3.00 to 1.00, the applicable commitment fee margin was 0.25%. In April 2020, given the rapidly changing business environment and level of uncertainty created by the COVID-19 pandemic and the associated expected impact on future earnings, the Company amended its Senior Secured Credit Facility prior to any potential covenant violation in order to modify the financial covenants and to provide operating flexibility during the COVID-19 pandemic. The amendment effects changes to certain provisions and covenants under the Senior Secured Credit Facility during the period beginning with the fiscal quarter ended June 27, 2020 and continuing through the fiscal quarter ending July 3, 2021 (such period of time, the “Covenant Relief Period”), after which the covenants will revert to their original, pre-amendment levels, including: (a) suspension of compliance with the maximum leverage ratio; (b) reduction of the minimum interest coverage ratio from 3.00 to 1.00 to (i) 2.00 to 1.00 for the fiscal quarters ending June 27, 2020 through April 3, 2021 and (ii) 2.25 to 1.00 for the fiscal quarter ending July 3, 2021; (c) a minimum last twelve months EBITDA covenant of $625,000 as of June 27, 2020, $505,000 as of September 26, 2020, $445,000 as of January 2, 2021, $435,000 as of April 3, 2021 and $505,000 as of July 3, 2021; (d) a minimum liquidity covenant of $300,000, increasing to $400,000 upon certain conditions; (e) increased limitations on investments, acquisitions, restricted payments and the incurrence of indebtedness; and (f) anti-cash hoarding provisions. During the Covenant Relief Period, the applicable margin and applicable commitment fee margin will be calculated assuming the leverage ratio is greater than or equal to 4.50 to 1.00. The amendment also permanently amends the definition of “leverage ratio” for purposes of the financial covenant calculation to remove the maximum amount of cash allowed to be netted from the definition of “indebtedness” and to allow for the netting of cash from certain foreign subsidiaries. The Company expects to maintain compliance with its covenants for at least one year from the issuance date of these financial statements based on its current expectations and forecasts. If economic conditions caused by the COVID-19 pandemic worsen and the Company’s earnings and operating cash flows do not start to recover as currently estimated by management, this could impact the Company’s ability to maintain compliance with its financial covenants and require the Company to seek additional amendments to its Senior Secured Credit Facility. If the Company is not able to obtain such necessary additional amendments, this would lead to an event of default and, if not cured timely, its lenders could require the Company to repay its outstanding debt. In that situation, the Company may not be able to raise sufficient debt or equity capital, or divest assets, to refinance or repay the lenders. The Senior Secured Credit Facility contains customary events of default, including nonpayment of principal when due; nonpayment of interest, fees or other amounts after stated grace period; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; any cross-default to material indebtedness; certain material judgments; certain events related to the ERISA, actual or asserted invalidity of any guarantee, security document or subordination provision or non-perfection of security interest, and a change in control (as defined in the Senior Secured Credit Facility). As of January 2, 2021, the Company was in compliance with all financial covenants. 5.375% Senior Notes In May 2020, the Company issued $700,000 aggregate principal amount of 5.375% Senior Notes, with interest payable on May 15 and November 15 of each year commencing on November 15, 2020. The 5.375% Senior Notes will mature on May 15, 2025. The sale of the 5.375% Senior Notes resulted in net proceeds of $691,250 which were used to repay all outstanding borrowings under its Revolving Loan Facility, pay related fees and expenses, and for general corporate purposes. The issuance of the 5.375% Senior Notes resulted in $12,223 of capitalized debt issuance costs. Debt issuance costs are amortized to interest expense over the life of the debt instrument. On and after May 15, 2022, the Company has the right to redeem all or a portion of the 5.375% Senior Notes, at the redemption prices set forth in the indenture governing the 5.375% Senior Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Prior to May 15, 2022, the Company has the right to redeem all or a portion of the 5.375% Senior Notes at a redemption price equal to 100% of the principal amount plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, prior to May 15, 2022, the Company may on any one or more occasions redeem up to 40% of the notes with the net proceeds from certain equity offerings at a redemption price equal to 105.375% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The 5.375% Senior Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed by the Company and each of its domestic subsidiaries that guarantee the Company’s Senior Secured Credit Facility. The indenture governing the 5.375% Senior Notes includes covenants that limit the ability of the Company and its subsidiaries to incur certain liens, enter into certain sale and leaseback transactions and the ability of the Company and the guarantors to consolidate, merge or sell all or substantially all of their assets. The indenture also contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the indenture; failure to pay certain other indebtedness; certain events of bankruptcy, insolvency or reorganization; failure to pay certain final judgments; and failure of certain guarantees to be enforceable. In the event of a change of control of the Company and a rating downgrade, the Company will be required to offer to repurchase all outstanding 5.375% Senior Notes at 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The 5.375% Senior Notes were issued in a transaction exempt from registration under the Securities Act and do not require disclosure of separate financial information for the guarantor subsidiaries. Senior Notes Refinancing In 2016, the Company refinanced its debt structure to reduce interest rates, increase borrowing capacity, increase the proportion of fixed rate debt and fund a portion of the acquisitions of Champion Europe and Hanes Australasia. The refinancing: (i) issued $900,000 aggregate principal amount of the 4.875% Senior Notes due 2026 (the “4.875% Senior Notes”), $900,000 aggregate principal amount of the 4.625% Senior Notes due 2024 (the “4.625% Senior Notes”), and €500,000 aggregate principal amount of the 3.5% Senior Notes due 2024 (the “3.5% Senior Notes”); (ii) redeemed in full the Company’s 6.375% Senior Notes due 2020; and (iii) repaid a portion of the indebtedness outstanding under the Revolving Loan Facility. The refinancing activity resulted in the incurrence of $39,523 in capitalized debt issuance costs for the series of senior notes, each of which is discussed in more detail below. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which ranged from eight to 10 years. 4.875% Senior Notes and 4.625% Senior Notes On May 6, 2016, the Company issued $900,000 aggregate principal amount of 4.875% Senior Notes and $900,000 aggregate principal amount of 4.625% Senior Notes (collectively, the “USD Senior Notes”), with interest payable on May 15 and November 15 of each year. The 4.875% Senior Notes will mature on May 15, 2026 and the 4.625% Senior Notes will mature on May 15, 2024. The sale of the USD Senior Notes resulted in aggregate net proceeds from the sale of approximately $1,773,000, which were used to repay all outstanding borrowings under the 6.375% Senior Notes and reduce the outstanding borrowings under the Revolving Loan Facility. On or after February 15, 2026, in the case of the 4.875% Senior Notes, and February 15, 2024, in the case of the 4.625% Senior Notes, the Company may redeem all or a portion of such notes at a price equal to 100% of the principal amount, plus a ny accrued and unpaid interest. The USD Senior Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed, subject to certain exceptions, by substantially all of the Company’s current domestic subsidiaries. The indenture governing the USD Senior Notes limits the ability of the Company and its subsidiaries to incur liens, enter into certain sale and leaseback transactions and consolidate, merge or sell all or substantially all of their assets. The indenture also contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in such indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency. The USD Senior Notes were issued in a transaction exempt from registration under the Securities Act and do not require disclosure of separate financial information for the guarantor subsidiaries. 3.5% Senior Notes On June 3, 2016, the Company issued €500,000 aggregate principal amount of 3.5% Senior Notes, with interest payable on June 15 and December 15 of each year. The 3.5% Senior Notes will mature on June 15, 2024. The sale of the 3.5% Senior Notes resulted in net proceeds of approximately €492,500, which were used to fund a portion of the acquisition of Champion Europe and Hanes Australasia. On or after March 15, 2024, the Company may redeem all or a portion of the 3.5% Senior Notes at a price equal to 100% of the principal amount, plus any accrued and unpaid interest. The Company may also redeem all, but not less than all, of the 3.5% Senior Notes upon the occurrence of certain changes in applicable tax law. The 3.5% Senior Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed, subject to certain exceptions, by the Company and certain of its subsidiaries that guarantee the Company’s Euro Term Loan facility, which was paid in full in August 2016, under the Company’s Senior Secured Credit Facility. The indenture governing the 3.5% Senior Notes limits the ability of the Company and each of the guarantors of the Notes (including the Company) to incur certain liens, enter into certain sale and leaseback transactions and consolidate, merge or sell all or substantially all of their assets. The indenture also contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the indenture; failure to pay certain other indebtedness; certain events of bankruptcy, insolvency or reorganization; failure to pay certain final judgments; and failure of certain guarantees to be enforceable. The 3.5% Senior Notes were issued in a transaction exempt from registration under the Securities Act and do not require disclosure of separate financial information for the guarantor subsidiaries. Australian Term A-1 and Australian Revolver On July 4, 2016, the Company established a floating rate A$200,000 Australian Term A-1 Loan Facility (the “Australian Term A-1”) with interest payable every three or six months. In June 2019, the Company paid the outstanding balance and terminated the Australian Term A-1 loan which would have matured on July 7, 2019. On July 15, 2016, the Company established the Australian Revolving Facility (the “Australian Revolver”) in the amount of A$65,000 with interest payable at a variable rate. The Australian Revolver is comprised of a bilateral cash advance of A$50,000, a bank overdraft of A$10,000 and a bank guarantee of A$5,000. The Australian Revolver will mature on July 15, 2021. The Australian Revolver interest rates are based on the Bank Bill Swap Bid Rate (“BBSY”) plus an applicable margin which is driven by the Company’s debt rating. The Australian Term A-1 was issued to help fund the Hanes Australasia acquisition while the Revolver is utilized for future working capital requirements. The Australian Term A-1 and Australian Revolver were established under the Company’s Syndicated Facility, a joinder to the Company’s Senior Secured Credit Facility. The Syndicated Facility Agreement requires the Company to prepay any outstanding Term Loans in connection with (i) the incurrence of certain indebtedness and (ii) non-ordinary course asset sales or other dispositions (including as a result of casualty or condemnation) that exceed certain thresholds in any period of twelve consecutive months, with customary reinvestment provisions. The Syndicated Facility Agreement also requires the Company, and certain of its subsidiary guarantors, as applicable, to prepay any outstanding Term Loans in connection with excess cash flow, which amount will be based upon the Company’s leverage ratio during the relevant fiscal period. All such prepayments will be made on a pro rata basis under each of the applicable Term Loan Facilities that are subject to such prepayments. Under the terms of the Syndicated Facility Agreement, the leverage ratio covenant requires that the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters will not be more than 4.50 to 1.00 for each fiscal quarter provided that, following a permitted acquisition in which the consideration is at least $200,000, the maximum leverage ratio covenant increases to 5.00 to 1.00 for each fiscal quarter in the succeeding 12-month period following such permitted acquisition. There were no letters of credit issued and outstanding under the Australian Revolving Loan Facility at January 2, 2021, and the Company had $46,111 of borrowing availability. European Revolving Loan Facility On September 9, 2016, the Company established a €100,000 European Revolving Loan Facility. Proceeds from the European Revolving Loan Facility were used to refinance existing debt for the European Innerwear business and for future working capital requirements. In July 2019, the Company refinanced the European Revolving Loan Facility primarily to extend the maturity date to September 2020. Additionally, in September 2020, the Company amended the European Revolving Loan Facility primarily to extend the maturity date to December 2020. In December 2020, the European Revolving Loan facility matured with no outstanding balance. The Company from time to time voluntarily prepaid the European Revolving Loan Facility in whole or in part without a premium or penalty provided that among other items, principal payments were in amounts of €5,000 or in whole multiple of €1,000 in excess thereof. Any prepayment of principal was required to be accompanied by all accrued interest on the amount prepaid. Interest under the European Revolving Credit Facility was calculated using LIBOR for Euro with a zero floor plus a 150 basis point margin. Interest was based on the outstanding principal amount for each interest period from the applicable borrowing date at a rate per annum equal to the Eurocurrency Rate for such interest period plus the applicable rate. Accounts Receivable Securitization Facility Borrowings under the Accounts Receivable Securitization Facility are permitted only to the extent that the outstanding principal balance of the receivables in the collateral pool, net of applicable concentrations, reserves and other deductions, exceeds the outstanding loans and also subject to a fluctuating facility limit, not to exceed $225,000. The Company’s maximum borrowing capacity and borrowing availability under the Accounts Receivable Securitization Facility was $225,000 and $7,985 as of January 2, 2021, respectively. The total outstanding principal amount of receivables in the collateral pool available for borrowings under the credit facility was $7,985 at January 2, 2021. Under the terms of the Accounts Receivable Securitization Facility, the Company and certain of its subsidiaries sell or otherwise assign, on an ongoing basis, certain domestic trade receivables to HBI Receivables LLC (“Receivables LLC”), a wholly owned bankruptcy-remote subsidiary that in turn pledges the trade receivables to secure the borrowings, which are funded through conduits and financial institutions that are not affiliated with the Company. Funding under the Accounts Receivable Securitization Facility is received either from conduits party to the Accounts Receivable Securitization Facility through the issuance of commercial paper in the short-term market or through committed bank purchasers. The assets and liabilities of Receivables LLC are fully reflected on the Consolidated Balance Sheets, and the securitization is treated as a secured borrowing by Receivables LLC from the third-party conduits and financial institutions party thereto for accounting purposes, but the assets of Receivables LLC will be used solely to satisfy the creditors of Receivables LLC, not the Company’s other creditors. The borrowings under the Accounts Receivable Securitization Facility remain outstanding throughout the term of the agreement subject to Receivables LLC maintaining sufficient eligible receivables, by continuing to acquire trade receivables from the Company and certain of its subsidiaries, unless an event of default occurs. In March 2018, the Company amended the Accounts Receivable Securitization Facility primarily to extend the maturity date to March 2019. In June 2018, the Company amended the Accounts Receivable Securitization Facility to remove certain receivables from being pledged as collateral for the facility and reduce the maximum availability to $225,000. In September 2018, the Company amended the Accounts Receivable Securitization Facility to remove certain additional receivables from being pledged as collateral for the facility. In March 2019, the Company amended the Accounts Receivable Securitization Facility to primarily increase the fluctuating facility limit to $300,000 and extend the maturity date to March 2020. In March 2020, the Company amended the Accounts Receivable Securitization Facility to primarily decrease the fluctuating facility limit to $225,000 (previously $300,000) and extended the maturity date to March 2021. As a result of the COVID-19 pandemic, in May 2020, the Company amended the Accounts Receivable Securitization Facility which changed certain ratios, inserted a floor and raised pricing, as well as removed certain receivables from being pledged as collateral for the facility, increased limits on other receivables pledged as collateral and required the Company to maintain the same minimum liquidity covenant contained in the Senior Secured Credit Facility. Availability of funding under the Accounts Receivable Securitization Facility depends primarily upon the eligible outstanding receivables balance. The outstanding balance under the Accounts Receivable Securitization Facility is reported on the Consolidated Balance Sheets in the line “Accounts Receivable Securitization Facility.” In the case of any creditors party to the Accounts Receivable Securitization Facility that are conduits, the yield on the commercial paper, which is the conduits’ cost to issue the commercial paper plus certain dealer fees, is considered a financing cost and is included in the “Interest expense, net” line in the Consolidated Statements of Income. In the case of any creditors party to the Accounts Receivable Securitization Facility that are committed bank purchasers, the interest rate would be payable at the Company’s option at the rate announced from time to time by PNC Bank, N.A. as its prime rate or at the LIBO Rate (as defined in the Accounts Receivable Securitization Facility) plus the applicable margin in effect from time to time. If the LIBO Rate (as defined in the Accounts Receivable Securitization Facility) or, if this rate is unavailable or otherwise does not accurately reflect the costs to these creditors related to the borrowings, the interest rate would be the prime rate. These amounts are also considered financing costs and are included in the “Interest expense, net” line in the Consolidated Statements of Income. In addition, Receivables LLC is required to make certain indemnity and other payments to a conduit purchaser, a committed purchaser, or certain entities that provide funding to or are affiliated with them, including in the event that assets and liabilities of a conduit purchaser subject to the Accounts Receivable Securitization Facility are consolidated for financial and/or regulatory accounting purposes with certain other entities. The Accounts Receivable Securitization Facility contains customary events of default and requires the Company to maintain the same interest coverage ratio and leverage ratio contained from time to time in the Senior Secured Credit Facility, provided that any changes to such covenants will only be applicable for purposes of the Accounts Receivable Securitization Facility if approved by the managing agents or their affiliates. As of January 2, 2021, the Company was in compliance with all financial covenants. Future Principal Payments Future principal payments for all of the facilities described above are as follows: $263,936 due in 2021, $600,000 due in 2022, $0 due in 2023, $1,571,788 due in 2024, $700,000 due in 2025 and $900,000 due thereafter. Debt Issuance Costs During 2020, 2019 and 2018, the Company paid $15,018, $1,203 and $677, respectively, in capitalized debt issuance costs related to the Company’s financing arrangements. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which range from one to 10 years. As of January 2, 2021, the net carrying value of unamortized debt issuance costs for the revolving loan facilities, which is included in “Other noncurrent assets” in the Consolidated Balance Sheet, was $5,120 and the net carrying value of unamortized debt issuance costs for the remainder of the Company’s debt, which is included in “Long-term debt” in the Consolidated Balance Sheet was $32,354. The Company’s debt issuance cost amortization was $11,565, $10,731 and $9,278 in 2020, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is a party to various pending legal proceedings, claims and environmental actions by government agencies. In accordance with the accounting rules for contingencies, the Company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can reasonably be estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to the particular matter. The recorded liabilities for these items were not material to the consolidated financial statements of the Company in any of the years presented. Although the outcome of such items cannot be determined with certainty, the Company’s legal counsel and management are of the opinion that the final outcome of these matters will not have a material adverse impact on the consolidated financial position, results of operations or liquidity. Purchase Commitments In the ordinary course of business, the Company has entered into purchase commitments for raw materials, production and finished goods. These agreements, typically with terms ending within a year, require total payments of $468,287 in 2021, $4,758 in 2022 and $5,092 in 2023. License Agreements The Company is party to several royalty-bearing license agreements for the use of third-party trademarks in certain of their products. The license agreements typically require a minimum guarantee to be paid either at the commencement of the agreement, by a designated date during the term of the agreement or by the end of the agreement period. When payments are made in advance of when they are due, the Company records a prepayment and amortizes the expense in the “Cost of sales” line in the Consolidated Statements of Income uniformly over the guaranteed period. For guarantees required to be paid at the completion of the agreement, royalties are expensed through the “Cost of sales” line in the Consolidated Statements of Income as the related sales are made. Management has reviewed all license agreements and has concluded that there are no liabilities recorded at inception of the agreements. During 2020, 2019 and 2018, the Company incurred royalty expense of approximately $72,876, $105,829 and $109,851, respectively. Minimum amounts due under the license agreements are approximately $74,535 in 2021, $66,403 in 2022, $47,715 in 2023, $43,927 in 2024, $19,302 in 2025 and $39,850 thereafter. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill (a) Intangible Assets The primary components of the Company’s intangible assets and the related accumulated amortization are as follows: Gross Accumulated Net Book Year ended January 2, 2021: Intangible assets subject to amortization: Trademarks and brand names $ 37,273 $ 30,073 $ 7,200 Licensing agreements 104,000 65,811 38,189 Customer and distributor relationships 175,247 92,928 82,319 Computer software 98,049 60,351 37,698 Other intangibles 2,938 2,436 502 $ 417,507 $ 251,599 165,908 Intangible assets not subject to amortization: Trademarks 1,379,847 Perpetual licensing agreements and other 32,262 Net book value of intangible assets $ 1,578,017 Gross Accumulated Net Book Year ended December 28, 2019: Intangible assets subject to amortization: Trademarks and brand names $ 36,152 $ 27,752 $ 8,400 Licensing agreements 102,634 57,942 44,692 Customer and distributor relationships 163,831 71,603 92,228 Computer software 88,296 46,840 41,456 Other intangibles 3,156 1,812 1,344 $ 394,069 $ 205,949 188,120 Intangible assets not subject to amortization: Trademarks 1,298,598 Perpetual licensing agreements and other 34,082 Net book value of intangible assets $ 1,520,800 During the second quarter of 2020, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets as a result of the significant impact of the COVID-19 pandemic on their performance. Based on this analysis, the Company recorded impairment charges of $20,319 on certain indefinite-lived trademarks and other intangible assets within the European Innerwear business which are reflected in the “Selling, general and administrative expenses” line in the Consolidated Statement of Income. In connection with the annual impairment testing performed in the third quarter of 2020, the Company performed a quantitative assessment, utilizing an income approach to estimate the fair value of each indefinite-lived intangible asset. The most significant assumptions include the weighted average cost of capital, revenue growth rate, terminal growth rate and operating profit margin, all of which are used to estimate the fair value of the indefinite-lived intangible assets. The tests indicated the indefinite-lived intangible assets had fair values that exceeded their carrying values. Certain indefinite-lived trademarks within the European Innerwear business were considered to be at a higher risk for future impairment if any assumptions used in the estimate of the trademarks’ fair value change in the future given their respective fair values exceeded their carrying values by less than 20% and trends in the associated businesses indicate a declining fair value. As of January 2, 2021, the Company considered four trademarks within the European Innerwear business to be at a higher risk for future impairment and the carrying value of these four indefinite-lived trademarks was approximately $90,000. The amortization expense for intangible assets subject to amortization was $36,687, $34,937 and $36,437 for 2020, 2019 and 2018, respectively. The estimated amortization expense for the next five years, assuming no change in the estimated useful lives of identifiable intangible assets or changes in foreign exchange rates is as follows: $33,600 in 2021, $32,041 in 2022, $29,300 in 2023, $23,485 in 2024 and $18,597 in 2025. (b) Goodwill Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at December 29, 2018 $ 406,853 $ 316,384 $ 490,817 $ 27,673 $ 1,241,727 Acquisition of business — — 221 — 221 Currency translation — — (6,237) — (6,237) Net book value at December 28, 2019 $ 406,853 $ 316,384 $ 484,801 $ 27,673 $ 1,235,711 Impairment — — — (25,173) (25,173) Currency translation — — 45,092 — 45,092 Net book value at January 2, 2021 $ 406,853 $ 316,384 $ 529,893 $ 2,500 $ 1,255,630 In connection with the annual goodwill impairment testing performed during the third quarter of 2020, the Company performed a quantitative assessment utilizing an income approach to estimate the fair value of each reporting unit. The most significant assumptions include the weighted average cost of capital, revenue growth rate, terminal growth rate and operating profit margin, all of which are used to estimate the fair value of the reporting units. The tests indicated the reporting units had fair values that exceeded their carrying values. Certain reporting units, including the European Innerwear business and U.S. Hosiery, were considered to be at a higher risk for future impairment if any assumptions used in the estimate of the reporting units’ fair values change in the future given their respective fair values exceeded their carrying values by less than 20% and trends in the associated businesses indicate a declining fair value. In the fourth quarter of 2020, the Company determined that there was a triggering event associated with its U.S. Hosiery reporting unit due to a significant decline in performance below management’s expectations and loss of a future wholesale hosiery program. Based on the updated quantitative analysis, the Company recorded impairment charges for the full amount of goodwill related to the U.S. Hosiery reporting unit of $25,173 which are reflected in the “Selling, general and administrative expenses” line in the Consolidated Statement of Income. The estimated fair value of the European Innerwear reporting unit during the annual impairment test exceeded the carrying value by less than 20% and is still viewed as higher risk for future impairment. The goodwill associated with the European Innerwear reporting unit was approximately $105,000 as of January 2, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of 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 $ (149,985) $ 21,814 $ (595,307) $ 227,611 $ (495,867) Amounts reclassified from accumulated other comprehensive loss — (28,931) 20,121 2,012 (6,798) Current-period other comprehensive income (loss) activity (7,153) 11,903 (54,174) 13,257 (36,167) Total other comprehensive income (loss) (7,153) (17,028) (34,053) 15,269 (42,965) Reclassification of stranded tax related to U.S. pension plan to retained earnings — — — (78,816) (78,816) Balance at December 28, 2019 $ (157,138) $ 4,786 $ (629,360) $ 164,064 $ (617,648) Amounts reclassified from accumulated other comprehensive loss — (15,681) 23,009 (1,654) 5,674 Current-period other comprehensive income (loss) activity 104,318 (15,643) (62,379) 18,719 45,015 Total other comprehensive income (loss) 104,318 (31,324) (39,370) 17,065 50,689 Balance at January 2, 2021 $ (52,820) $ (26,538) $ (668,730) $ 181,129 $ (566,959) (1) Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges. 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 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. The Company had the following reclassifications out of AOCI: Component of AOCI Location of Reclassification into Income Amount of Reclassification from AOCI Years Ended January 2, December 28, December 29, Gain (loss) on foreign exchange contracts designated as cash flow hedges Cost of sales $ 15,681 $ 28,931 $ (9,836) Income tax (4,149) (7,276) 2,038 Net of tax 11,532 21,655 (7,798) Amortization of deferred actuarial loss and prior service cost Other expenses (23,009) (20,121) (19,693) Income tax 5,803 5,264 5,514 Net of tax (17,206) (14,857) (14,179) Total reclassifications $ (5,674) $ 6,798 $ (21,977) |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019, the notional U.S. dollar equivalent of the Company’s derivative portfolio of forward foreign exchange contracts was $617,912 and $652,423, respectively, consisting of contracts hedging exposures primarily related to the Australian dollar, Euro, Canadian dollar and Mexican peso. As of January 2, 2021 and December 28, 2019, the U.S. dollar equivalent carrying value of long-term debt designated as a partial European net investment hedge was $610,724 and $558,847, respectively. 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 January 2, 2021 and December 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 Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value January 2, December 28, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 41 $ 2,716 Cross-currency swap contracts Other current assets 918 926 Cross-currency swap contracts Other noncurrent assets — 2,975 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 2,657 5,314 Total derivative assets 3,616 11,931 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (17,645) (2,246) Forward foreign exchange contracts Other noncurrent liabilities (2,190) — Cross-currency swap contracts Other noncurrent liabilities (16,526) — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (18,683) (1,147) Total derivative liabilities (55,044) (3,393) Net derivative asset (liability) $ (51,428) $ 8,538 Cash Flow Hedges The Company uses forward foreign exchange contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. The Company expects to reclassify into earnings during the next 12 months a net loss from AOCI of approximately $24,263. The Company is hedging exposure to the variability in future cash flows for forecasted transactions over the next 16 months. The effect of cash flow hedge derivative instruments on the Consolidated Statements of Income and AOCI is as follows: Amount of Gain (Loss) Years Ended January 2, December 28, December 29, Foreign exchange contracts $ (15,643) $ 11,903 $ 37,439 Location of Gain (Loss) Amount of Gain (Loss) Years Ended January 2, December 28, December 29, Foreign exchange contracts (1) Cost of sales $ 15,681 $ 28,931 $ (9,836) (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. Years Ended January 2, December 28, December 29, Total cost of sales in which the effects of cash flow hedges are recorded $ 4,816,086 $ 4,247,593 $ 4,150,736 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. The amount of after-tax gains (losses) included in AOCI in the 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 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 Years Ended January 2, December 28, December 29, Euro-denominated long-term debt $ (36,609) $ (23) $ — Cross-currency swap contracts (14,404) 2,201 — Total $ (51,013) $ 2,178 $ — Location of Gain Recognized in Income Amount of Gain Recognized in Income Years Ended January 2, December 28, December 29, Cross-currency swap contracts Interest expense, net $ 7,637 $ 3,613 $ — Years Ended January 2, December 28, December 29, Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded $ 166,491 $ 178,579 $ 194,675 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 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 Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Years Ended January 2, December 28, December 29, Foreign exchange contracts Cost of sales $ (19,870) $ (31,809) $ 16,782 Foreign exchange contracts Selling, general and (2,029) (1,073) 726 Total $ (21,899) $ (32,882) $ 17,508 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. A three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is utilized for disclosing the fair value of the Company’s assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: • Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • Cost approach — amount that would be required to replace the service capacity of an asset or replacement cost. • Income approach — techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models. The Company primarily applies the market approach for commodity derivatives and for all defined benefit plan investment assets and the income approach for interest rate and foreign currency derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The determination of fair values incorporates various factors that include not only the credit standing of the counterparties involved and the impact of credit enhancements, but also the impact of the Company’s nonperformance risk on its liabilities. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. As of January 2, 2021 and December 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 forward foreign exchange derivative contracts, cross-currency swap derivative contracts, defined benefit pension plan investment assets and deferred compensation plan liabilities. The fair values of forward foreign exchange derivative contracts are determined using the cash flows of the forward contracts, 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 swap 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 fair values of defined benefit pension plan investments include: certain U.S. equity securities, certain foreign equity securities, cash and cash equivalents and debt securities that are determined based on quoted prices in public markets categorized as Level 1; insurance contracts that are determined based on inputs readily available in public markets or can be derived from information available in publicly quoted markets categorized as Level 2; certain foreign equity securities, debt securities and commodity investments measured at their net asset value, which is determined based on inputs readily available in public markets; and investments in hedge fund of funds and real estate investments that are based on unobservable inputs about which little or no market data exists and are measured at a net asset value. Assets valued utilizing a net asset value are not required to be classified within the fair value hierarchy. There were no changes during 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of and for the year ended January 2, 2021, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring basis. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis. Assets (Liabilities) at Fair Value as of January 2, 2021 Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 164,802 $ 164,802 $ — $ — Foreign equity securities 39,696 39,696 — — Debt securities 24,862 24,862 — — Cash and other 13,890 13,890 — — Insurance contracts 2,831 — 2,831 — Total plan assets in the fair value hierarchy 246,081 243,250 2,831 — Plan assets measured at net asset value: (1) Hedge fund of funds 375,027 Foreign equity securities 108,357 Debt securities 127,370 Real estate 48,671 Commodities 17,641 Total plan assets measured at net asset value 677,066 Total plan assets 923,147 Derivative contracts: Forward foreign exchange contracts - assets 2,698 — 2,698 — Cross-currency swap contracts - assets 918 — 918 — Forward foreign exchange contracts - liabilities (38,518) — (38,518) — Cross-currency swap contracts - liabilities (16,526) — (16,526) — Total derivative contracts (51,428) — (51,428) — Deferred compensation plan liability (21,878) — (21,878) — Total $ 849,841 $ 243,250 $ (70,475) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Assets (Liabilities) at Fair Value as of December 28, 2019 Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 162,455 $ 162,455 $ — $ — Foreign equity securities 34,224 34,224 — — Debt securities 41,356 41,356 — — Cash and other 7,382 7,382 — — Insurance contracts 2,971 — 2,971 — Total plan assets in the fair value hierarchy 248,388 245,417 2,971 — Plan assets measured at net asset value: (1) Hedge fund of funds 350,270 Foreign equity securities 101,299 Debt securities 94,384 Real estate 55,067 Commodities 17,736 Total plan assets measured at net asset value 618,756 Total plan assets 867,144 Derivative contracts: Forward foreign exchange contracts - assets 8,030 — 8,030 — Cross-currency swap contracts - assets 3,901 — 3,901 — Forward foreign exchange contracts - liabilities (3,393) — (3,393) — Total derivative contracts 8,538 — 8,538 — Deferred compensation plan liability (31,221) — (31,221) — Total $ 844,461 $ 245,417 $ (19,712) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Fair Value of Financial Instruments |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 12 Months Ended |
Jan. 02, 2021 | |
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Defined Benefit Pension Plans | Defined Benefit Pension PlansAt January 2, 2021, the Company’s pension plans consisted of the Hanesbrands Inc. Pension Plan, various nonqualified retirement plans and international plans, which include certain defined benefit plans acquired in connection with the purchases of the European Innerwear business, Champion Europe and Hanes Australasia. Benefits under the Hanesbrands Inc. Pension Plan were frozen effective December 31, 2005. The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of the Company’s noncontributory defined benefit pension plans were as follows: Years Ended January 2, December 28, December 29, Service cost $ 2,676 $ 2,892 $ 2,776 Interest cost 33,845 43,670 40,208 Expected return on assets (42,377) (44,697) (45,280) Curtailments 2 — (186) Settlement cost 727 115 42 Amortization of: Prior service cost (6) (6) (6) Net actuarial loss 22,331 20,127 19,699 Net periodic benefit cost $ 17,198 $ 22,101 $ 17,253 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ 38,557 $ 34,038 $ (20,965) Prior service credit 6 6 6 Total (gain) loss recognized in other comprehensive income (loss) 38,563 34,044 (20,959) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 55,761 $ 56,145 $ (3,706) The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: January 2, December 28, Benefit obligation: Beginning of year $ 1,267,651 $ 1,164,518 Service cost 2,676 2,892 Interest cost 33,845 43,670 Benefits paid (61,849) (66,450) Curtailments (86) — Settlements (3,524) (1,255) Impact of exchange rate change 7,048 (286) Actuarial loss 105,366 124,577 Other (11) (15) End of year 1,351,116 1,267,651 Fair value of plan assets: Beginning of year 867,144 786,612 Actual return on plan assets 86,664 115,210 Employer contributions 33,115 32,476 Benefits paid (61,849) (66,450) Settlements (3,524) (1,255) Impact of exchange rate change 1,608 566 Other (11) (15) End of year 923,147 867,144 Funded status $ (427,969) $ (400,507) The actuarial losses in 2020 and 2019 included in benefit obligations were primarily driven by decreases in the U.S. discount rate assumptions. These losses were partially offset by updates to the U.S. mortality assumptions to reflect slightly shorter life expectancies. As most of the Company’s pension plans are frozen, the accumulated benefit obligation (“ABO”) approximates the benefit obligation. The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: January 2, December 28, Benefit obligation $ 1,351,116 $ 1,267,651 Plans with benefit obligation in excess of plan assets: Benefit obligation 1,319,523 1,239,077 Fair value of plan assets 891,569 837,554 Amounts recognized in the Company’s Consolidated Balance Sheets consist of: January 2, December 28, Noncurrent assets $ 116 $ 1,016 Current liabilities (5,617) (3,001) Noncurrent liabilities (422,468) (398,522) Accumulated other comprehensive loss (670,064) (631,501) Amounts recognized in accumulated other comprehensive loss consist of: January 2, December 28, Prior service cost $ (145) $ (151) Actuarial loss 670,209 631,652 $ 670,064 $ 631,501 Accrued benefit costs related to the Company’s defined benefit pension plans are reported in the “Accrued liabilities and other: Payroll and employee benefits” and “Pension and postretirement benefits” lines in the Consolidated Balance Sheets. (a) Measurement Date and Assumptions A December 31 measurement date is used to value plan assets and obligations for the pension plans. In determining the discount rate, the Company utilizes a full yield curve approach in the calculation of the plan obligation and interest cost and service cost components of net periodic benefit cost. The specific spot rates along the yield curve are applied to the relevant projected cash flows, and single equivalent discount rates are shown for disclosure purposes. The expected long-term rate of return on plan assets was based on the Company’s investment policy target allocation of the asset portfolio among various asset classes and the expected real returns of each asset class over various periods of time. The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows: January 2, December 28, December 29, Net periodic benefit cost: Discount rate 3.16 % 4.24 % 3.60 % Long-term rate of return on plan assets 4.96 5.79 5.32 Rate of compensation increase (1) 3.01 4.40 4.40 Interest crediting rate 5.49 5.49 5.49 Plan obligations: Discount rate 2.47 % 3.16 % 4.24 % Rate of compensation increase (1) 2.98 3.01 4.40 Interest crediting rate 5.49 5.49 5.49 (1) For January 2, 2021, the compensation assumption only applies to the international plans as the nonqualified retirement plan benefits are now all frozen. For December 28, 2019 and December 29, 2018, the compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at December 28, 2019 and December 29, 2018. (b) Plan Assets, Expected Benefit Payments, and Funding The allocation of pension plan assets as of the respective period end measurement dates is as follows: January 2, December 28, Asset category: Hedge fund of funds 41 % 40 % U.S. equity securities 18 19 Debt securities 16 16 Foreign equity securities 16 16 Real estate 5 6 Commodities 2 2 Insurance contracts 0 0 Cash and other 2 1 The Company’s asset strategy and primary investment objective are to maximize the principal value of the plan assets to meet current and future benefit obligations to plan participants and their beneficiaries. To accomplish this goal, the assets of the plan are broadly diversified to protect against large investment losses and to reduce the likelihood of excessive volatility of returns. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, third-party investment management firms with complementary investment styles and philosophies to implement these allocations. The Company has established a target asset allocation based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical data, prospective capital market returns and forecasted liabilities of the plans. The target asset allocation approximates the actual asset allocation as of January 2, 2021. In addition to volatility protection, diversification enables the assets of the plan the best opportunity to provide adequate returns in order to meet the Company’s investment return objectives. These objectives include, over a rolling 5-year period, to achieve a total return that exceeds the required actuarial rate of return for the plan and to outperform a passive portfolio, consisting of a similar asset allocation. The Company utilizes market data or assumptions that market participants would use in pricing the pension plan assets. The Level 1 assets consisted primarily of certain U.S. equity securities, certain foreign equity securities, certain debt securities and cash and cash equivalents. Certain foreign equity securities, debt securities, insurance contracts and commodity investments measured at their net asset value, which is determined based on inputs readily available in public markets, and investments in hedge funds of funds and real estate investments that are based on unobservable inputs about which little or no market data exists and are measured at a net asset value per share shall not be categorized within the fair value hierarchy. Refer to Note, “Fair Value of Assets and Liabilities,” for the Company’s complete disclosure of the fair value of pension plan assets. Expected benefit payments are as follows: $68,238 in 2021, $67,722 in 2022, $70,067 in 2023, $70,339 in 2024, $71,644 in 2025 and $369,669 in 2026 through 2030. On January 4, 2021, the Company made a contribution of $40,000 to the U.S. pension plan. The Company has no additional required cash contributions to its U.S. pension plan in 2021 based on a preliminary calculation by its actuary. (c) Nonretirement Postemployment Benefit Plans |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2021 | |
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Income Taxes | Income Taxes The Company generated income (loss) before income tax expense of $(183,122), $679,727, and $643,581 for the years 2020, 2019, and 2018, respectively. The provision for income tax expense (benefit) computed by applying the U.S. statutory rate to income (loss) before income tax expense as reconciled to the actual provisions were: Years Ended January 2, December 28, December 29, Income (loss) before income tax expense: Domestic 345.7 % (6.5) % (9.5) % Foreign (245.7) 106.5 109.5 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 21.0 % 21.0 % 21.0 % State income tax 13.3 1.1 (0.3) Tax on actual and planned remittances of foreign earnings (1) 4.2 (0.4) 9.9 Tax on foreign earnings due to U.S. tax reform including measurement period adjustments (2)(3) 20.9 — (0.5) Revaluation of net deferred tax assets due to U.S. tax reform including measurement period adjustments (4) — — (1.2) Tax on foreign earnings (U.S. tax reform - GILTI and FDII) (1.0) 2.2 2.3 Foreign taxes less than U.S. statutory rate 29.6 (11.9) (12.3) Statutory stock deduction and Luxembourg Adjustments (26.8) 2.2 (17.3) Employee benefits (1.7) (0.2) (0.1) Change in valuation allowance due to statutory stock deduction — — 17.3 Other changes in valuation allowance (12.5) 1.8 (3.9) Tax benefits related to tax basis adjustments in acquired intangibles — (1.7) — Increase in unrecognized tax benefits — — 0.5 Release of unrecognized tax benefit reserves 10.2 (0.5) — State tax rate change 0.3 0.3 0.4 Tax provision adjustments and revisions to prior years' returns (3.2) (2.4) (0.2) Nondeductible expenses and tax exempt income, net 5.6 — — Nondeductible impairment charges (2.9) — — Domestic income tax credits 1.7 — — Other, net — 0.1 0.5 Taxes at effective worldwide tax rates 58.7 % 11.6 % 16.1 % (1) In 2018, the Company recognized income tax expense of $45,203 as result of the Company’s intention to remit certain foreign earnings that were no longer considered permanently reinvested as a result of the Tax Act. (2) In 2020, the Company continued to analyze the impacts of the Tax Act and recently issued regulations that have been published to help taxpayers interpret and apply the legislation. As a result of its analysis, Management changed its estimate of the tax liability due in connection with the one-time mandatory transition tax and recognized a $38,315 income tax benefit in the current period. (3) In 2018, the Company decreased the 2017 transition tax provisional amount, as mandated by the Tax Act, by approximately $2,925, which was included as a component of income tax expense in 2018. (4) T he Company decreased the 2017 remeasurement of deferred tax assets and liabilities provisional amount, as a result of the rate change in the 2017 Tax Act, by approximately $7,627, which is included as a component of income tax expense in 2018. The Company was previously granted income tax rates lower than statutory rates in two foreign jurisdictions through 2019. These lower rates, when compared with the countries’ statutory rates, resulted in an income tax reduction of approximately $344 (negligible impact per diluted share) in 2019 and $424 in 2018 (negligible impact per diluted share), respectively. The lower tax rates are not applicable in years beginning after December 28, 2019. Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended January 2, 2021 Domestic $ (9,869) $ (136,221) $ (146,090) Foreign 57,285 27,978 85,263 State 6,256 (52,972) (46,716) $ 53,672 $ (161,215) $ (107,543) Year ended December 28, 2019 Domestic $ (20,548) $ 12,164 $ (8,384) Foreign 67,037 5,599 72,636 State (9,299) 24,054 14,755 $ 37,190 $ 41,817 $ 79,007 Year ended December 29, 2018 Domestic $ (16,746) $ 61,202 $ 44,456 Foreign 86,006 (42,446) 43,560 State 8,044 7,855 15,899 $ 77,304 $ 26,611 $ 103,915 Years Ended January 2, December 28, December 29, Cash payments for income taxes $ 116,006 $ 112,477 $ 94,556 In certain foreign jurisdictions, the Company had net operating loss carryforwards that were not considered more likely than not realizable by management and were previously unrecorded in prior periods and excluded from the disclosures presented below. The Company has revised the disclosures below to increase the gross deferred tax assets and corresponding valuation allowances by $66,511 as of December 28, 2019, $66,691 as of December 29, 2018 and $69,838 as of December 30, 2017. The revision had no net impact on income tax expense in any of the prior periods. The deferred tax assets and liabilities at the respective year-ends were as follows: January 2, December 28, Deferred tax assets: Nondeductible reserves $ — $ 1,246 Inventories 244,151 28,467 Bad debt allowance 12,197 9,108 Accrued expenses 16,099 10,305 Employee benefits 127,963 125,617 Tax credits 4,088 5,841 Net operating loss and other tax carryforwards 317,903 332,983 Leasing 144,842 142,379 Property and equipment 1,903 — Derivatives 17,156 — Section 163(j) 3,519 — Capitalized research costs 6,831 — Other 2,393 5,537 Gross deferred tax assets 899,045 661,483 Less valuation allowances (298,060) (263,858) Deferred tax assets 600,985 397,625 Deferred tax liabilities: Property and equipment — 656 Derivatives — 1,525 Section 481(a) liability 49,551 26,762 Leasing 128,547 132,559 Accrued tax on unremitted foreign earnings 32,888 42,653 Intangibles 96,141 92,577 Prepaids 4,553 5,583 Deferred tax liabilities 311,680 302,315 Net deferred tax assets $ 289,305 $ 95,310 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances. The changes in the Company’s valuation allowance for deferred tax assets are as follows: December 30, 2017 $ 142,440 Charged to income tax expense 52,135 Charged to other accounts (1) 17,672 Charged to retained earnings upon adoption of ASU 2016-16 (2) 34,043 December 29, 2018 $ 246,290 Charged to income tax expense 13,671 Charged to other accounts (1) 3,897 December 28, 2019 $ 263,858 Charged to income tax expense 23,958 Charged to other accounts (1) 10,244 January 2, 2021 $ 298,060 (1) Charges to other accounts include the effects of foreign currency translation and purchase accounting adjustments. (2) The Company adopted ASU 2016-16 on December 31, 2017 using the modified retrospective method, however there was no net cumulative-effect adjustment recorded to retained earnings as of that date. Upon adoption, the Company recognized additional net deferred tax assets of $34,043 and a corresponding increase in valuation allowance against these additional deferred tax assets as these deferred tax assets are not considered to be more likely than not realizable. As of January 2, 2021, the valuation allowance for deferred tax assets was $298,060, made up of $249,184 for foreign loss carryforwards, $36,509 for other foreign deferred tax assets, and $12,367 for federal and state operating loss carryforwards. The net change in the total valuation allowance for 2020 was $34,202 related to an increase of $47,770 for foreign loss carryforwards, a decrease of $5,548 for other foreign deferred tax assets, and a decrease of $8,020 for federal and state operating loss carryforwards and other domestic deferred tax assets. The foreign net increase included the establishment of a valuation allowance against deferred tax assets in Mexico as a result of certain restructurings undertaken by the Company in 2020. At January 2, 2021, the Company had foreign net operating loss carryforwards of approximately $1,049,626 which are subject to expiration as follows: Fiscal Year: 2021 $ 7,108 2022 3,588 2023 12,589 2024 6,452 2025 6,134 Thereafter 1,013,755 At January 2, 2021, the Company had domestic tax credit carryforwards totaling $4,088, which expire beginning after 2020. At January 2, 2021, the Company had federal and state net operating loss carryforwards of approximately $22,617 and $781,628, respectively, which expire beginning after 2020. The Company has determined that a portion of the Company’s unremitted foreign earnings as of January 2, 2021, totaling approximately $668,000, are not permanently reinvested. The remainder of the Company’s foreign earnings will continue to be permanently reinvested to fund working capital requirements and operations abroad. As of January 2, 2021, the Company has accrued $32,888 of income taxes with respect to the $668,000 of foreign earnings the Company intends to remit in the future. These income tax effects include U.S. federal, state, foreign and withholding tax implications in accordance with the planned remittance of such foreign earnings. An estimate of income tax costs that may be incurred if the permanently reinvested portion of unremitted foreign earnings were in fact remitted is considered too complex to calculate. In 2020, 2019, and 2018 the Company recognized reductions of unrecognized tax benefits for tax positions of prior years of $18,385, $44,597, and $3,128, respectively. In 2020, 2019, and 2018, income tax benefits recognized in connection with the expiration of statutes of limitations were $16,655, $4,016, and $1,000, respectively. The reduction for tax positions of prior years of $18,385 is primarily a result of certain filings made with income tax authorities which led to the unrecognized tax benefits being reclassified to current taxes payable and deferred tax liability. Management believes it is reasonably possible that the amount of unrecognized tax benefits may decrease by $12,249 within the next 12 months based on potential approvals of certain filings made with income tax authorities and expirations in statutes of limitations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 30, 2017 (gross balance of $99,469) $ 94,906 Additions based on tax positions related to the current year 2,877 Additions based on tax positions of prior years 430 Additions based on tax positions related to the acquisition of Bras N Things 10,911 Settlements (542) Lapse of statute of limitations (1,000) Reductions for tax positions of prior years (3,128) Balance at December 29, 2018 (gross balance of $107,306) $ 104,454 Additions based on tax positions related to the current year 2,797 Additions based on tax positions of prior years 19,585 Settlements (2,730) Lapse of statute of limitations (4,016) Reductions for tax positions of prior years (44,597) Balance at December 28, 2019 (gross balance of $79,897) $ 75,493 Additions based on tax positions related to the current year 3,675 Additions based on tax positions of prior years 2,698 Settlements — Lapse of statute of limitations (16,655) Reductions for tax positions of prior years (18,385) Balance at January 2, 2021 (gross balance of $47,786) $ 46,826 At January 2, 2021, the balance of the Company’s unrecognized tax benefits, which would, if recognized, affect the Company’s annual effective tax rate was $43,942. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company recognized $(5,003), $(1,792) and $5,744 in 2020, 2019 and 2018, respectively, for interest and penalties classified as income tax (benefit) expense in the Consolidated Statements of Income. At January 2, 2021 and December 28, 2019, the Company had a total of $5,280 and $9,648, respectively, of interest and penalties accrued related to unrecognized tax benefits. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 02, 2021 | |
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Stockholders' Equity | Stockholders’ EquityThe Company is authorized to issue up to 2,000,000 shares of common stock, par value $0.01 per share, and up to 50,000 shares of preferred stock, par value $0.01 per share, and the Company’s Board of Directors may, without stockholder approval, increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company is authorized to issue. At January 2, 2021 and December 28, 2019, 348,802 and 362,449 shares, respectively, of common stock were issued and outstanding and no shares of preferred stock were issued or outstanding. On February 6, 2020, the Company’s Board of Directors approved a new share repurchase program for up to 40,000 shares to be repurchased in open market transactions, subject to market conditions, legal requirements and other factors. Additionally, management has been granted authority to establish a trading plan under Rule 10b5-1 of the Exchange Act in connection with share repurchases, which will allow the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for the Company and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. Unless terminated earlier by the Company’s Board of Directors, the new program will expire when the Company has repurchased all shares authorized for repurchase under the new program. The new program replaced the Company’s previous share repurchase program for up to 40,000 shares that was originally approved in 2016. For the year ended January 2, 2021, the Company entered into transactions to repurchase 14,464 shares at a weighted average repurchase price of $13.83 per share under the new program. The shares were repurchased at a total cost of $200,269. The Company did not purchase any shares of the Company’s common stock under the previous share repurchase program during 2020 through the expiration of the program on February 6, 2020, during 2019 or 2018. At January 2, 2021, the remaining repurchase authorization under the current share repurchase program totaled 25,536 shares. The primary objective of the share repurchase program is to utilize excess cash to generate shareholder value. Share repurchases are currently prohibited under the Senior Secured Credit Facility. Dividends In 2018 and 2019, the Company’s Board of Directors declared regular quarterly cash dividends of $0.15 per share of the Company’s outstanding common stock, which were paid in 2018 and 2019, respectively. During 2020, the Company’s Board of Directors declared regular quarterly cash dividends of $0.15 per share of the Company’s outstanding common stock, which were paid on March 10, 2020, June 9, 2020, September 1, 2020 and December 1, 2020. On February 9, 2021, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share of the Company’s outstanding common stock to be paid on March 9, 2021 to stockholders of record at the close of business on February 19, 2021. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jan. 02, 2021 | |
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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 in the United States 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. In 2020, Innerwear also includes sales of PPE including products such as cloth face coverings and gowns. • Activewear includes sales in the United States 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, including PPE in 2020, outside the United States, primarily in Europe, Australasia, Asia, Canada and Latin America. The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, restructuring and other action-related charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note, “Summary of Significant Accounting Policies.” Years Ended January 2, December 28, December 29, Net sales: Innerwear $ 2,978,009 $ 2,302,632 $ 2,379,675 Activewear 1,184,413 1,854,704 1,792,280 International 2,309,754 2,529,375 2,344,115 Other 192,174 280,212 287,885 Total net sales $ 6,664,350 $ 6,966,923 $ 6,803,955 Years Ended January 2, December 28, December 29, Segment operating profit: Innerwear $ 718,923 $ 515,991 $ 526,831 Activewear 67,643 281,319 267,428 International 315,365 384,784 351,769 Other (14,025) 24,829 25,348 Total segment operating profit 1,087,906 1,206,923 1,171,376 Items not included in segment operating profit: General corporate expenses (238,931) (218,770) (190,090) Restructuring and other action-related charges (805,787) (63,486) (80,198) Amortization of intangibles (36,687) (34,937) (36,437) Total operating profit 6,501 889,730 864,651 Other expenses (23,132) (31,424) (26,395) Interest expense, net (166,491) (178,579) (194,675) Income (loss) before income tax expense $ (183,122) $ 679,727 $ 643,581 For the year ended January 2, 2021, the Company incurred pre-tax restructuring and other action-related charges of $805,787, of which $708,951 is reported in the “Cost of sales” line and $96,836 is reported in the “Selling, general and administrative expenses” line in the Consolidated Statement of Income. For the year ended December 28, 2019, the Company incurred pre-tax restructuring and other action-related charges of $63,486, of which $58,267 is reported in the “Cost of sales” line and $5,219 is reported in the “Selling, general and administrative expenses” line in the Consolidated Statement of Income. For the year ended December 29, 2018, the Company incurred pre-tax restructuring and other action-related charges of $80,162, of which $38,355 is reported in the “Cost of sales” line, $41,843 is reported in the “Selling, general and administrative expenses” line and a gain of $36 is reported in the “Other expenses” line in the Consolidated Statement of Income. The components of restructuring and other action-related charges included in operating profit were as follows: Years Ended January 2, December 28, December 29, (dollars in thousands) Restructuring and other action-related charges included in operating profit (loss): Supply chain actions $ 23,538 $ 53,651 $ — Program exit costs 9,856 4,616 — Other restructuring costs 18,219 5,219 39,529 COVID-19 related charges: Supply chain re-startup 48,893 — — Bad debt 11,375 — — Inventory 20,485 — — Intangible assets and goodwill 45,492 — — Full Potential plan: Inventory SKU rationalization 210,904 — — PPE inventory write-off 373,767 — — PPE vendor commitments 26,400 — — Write-off of acquisition tax asset 16,858 — — European Innerwear business — — 26,403 Hanes Australasia — — 14,266 Total restructuring and other action-related charges included in operating profit (loss) $ 805,787 $ 63,486 $ 80,198 Restructuring and other action-related charges in 2020 and 2019 included charges for supply chain actions to reduce overhead costs principally within the Western Hemisphere network and program exit charges associated with exiting the C9 Champion mass program and the DKNY intimate apparel license in 2019. In 2020, restructuring and other action-related charges included $48,893 of supply chain re-start up charges primarily related to incremental costs incurred, such as freight and sourcing premiums, to expedite product to meet customer demand following the extended shut-down of parts of the Company’s manufacturing network as a result of the COVID-19 pandemic and $77,352 of asset write-down charges recorded as a result of the ongoing effects of the COVID-19 pandemic. In the fourth quarter of 2020, the Company began the early implementation of its Full Potential plan including a number of actions to simplify its business including streamlining its portfolio and SKU rationalization. Specifically, the Company no longer views PPE as a future growth opportunity for the Company. Therefore, the Company recorded a charge of $373,767 to write down its entire PPE inventory balance to its estimated net realizable value and a charge of $26,400 to accrue for vendor commitments for PPE materials expected to be paid in 2021. Additionally, the Company commenced an initiative to reduce 20% of its SKUs in inventory in order to streamline product offerings while also implementing a formal lifecycle management process. As a result, the Company recorded a charge of $210,904 to write down inventory to its estimated net realizable value taking into account its initiatives. In the fourth quarter of 2020, the Company also recorded a charge to write off an acquisition tax asset. Restructuring and other action-related charges in 2018 primarily included acquisition and integration costs directly related to acquisitions and their integration into the organization. Other restructuring costs included action-related costs such as workforce reductions, as well as acquisition and integration charges for smaller acquisitions. As of December 28, 2019, the Company had an accrual of $7,120 for expected benefit payments related to actions taken in prior years. During the year ended January 2, 2021, the Company approved actions related to workforce reductions and incurred charges of $12,212 for employee termination and other benefits for employees affected by separation programs, with $2,721 and $9,491 of charges reflected in the “Cost of sales” and “Selling, general and administrative expenses” lines, respectively, in the Consolidated Statement of Income. During the year ended January 2, 2021, benefit payments, other accrual adjustments and foreign currency adjustments of $9,072 have been made, resulting in an ending accrual of $10,260, of which $9,595 and $665 is included in the “Accrued liabilities and other - Other” and “Other noncurrent liabilities” lines in the Consolidated Balance Sheet, respectively. January 2, December 28, Assets: Innerwear $ 1,198,721 $ 1,352,773 Activewear 1,021,761 1,045,567 International 1,489,305 1,578,251 Other 172,270 197,312 3,882,057 4,173,903 Corporate (1) 3,816,817 3,180,083 Total assets $ 7,698,874 $ 7,353,986 Years Ended January 2, December 28, December 29, Depreciation and amortization expense: Innerwear $ 27,407 $ 30,408 $ 33,348 Activewear 23,621 23,804 18,768 International 35,898 35,618 37,642 Other 5,520 6,200 5,601 92,446 96,030 95,359 Corporate 40,000 34,937 36,437 Total depreciation and amortization expense $ 132,446 $ 130,967 $ 131,796 Years Ended January 2, December 28, December 29, Capital expenditures: Innerwear $ 15,061 $ 16,852 $ 20,459 Activewear 8,574 19,902 16,024 International 16,738 43,421 33,632 Other 4,658 4,436 3,221 45,031 84,611 73,336 Corporate 8,704 16,473 12,957 Total capital expenditures $ 53,735 $ 101,084 $ 86,293 (1) Principally cash and equivalents, certain fixed assets, net deferred tax assets, goodwill, trademarks and other identifiable intangibles, and certain other noncurrent assets. Sales to Walmart and Target were substantially in the Innerwear and Activewear segments. Sales to Walmart represented 15% of total net sales in 2020. Sales to Walmart and Target represented 14% and 11% of total net sales in 2019, respectively. Sales to Walmart and Target represented 16% and 12% of total net sales in 2018, respectively. Worldwide sales by product category for Innerwear and Activewear were $4,622,653 and $2,041,697, respectively, in 2020. Worldwide sales by product category for Innerwear and Activewear were $4,120,284 and $2,846,639, respectively, in |
Geographic Area Information
Geographic Area Information | 12 Months Ended |
Jan. 02, 2021 | |
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Geographic Area Information | Geographic Area Information Years Ended or at January 2, December 28, December 29, Sales Property, Net Sales Property, Net Sales Property, Net Americas $ 4,544,973 $ 351,841 $ 4,659,772 $ 383,219 $ 4,658,346 $ 402,370 Asia Pacific 1,088,541 92,590 1,247,989 104,041 1,129,605 104,305 Europe 1,005,590 100,687 1,023,639 99,560 987,016 99,835 Other 25,246 653 35,523 1,076 28,988 1,178 $ 6,664,350 $ 545,771 $ 6,966,923 $ 587,896 $ 6,803,955 $ 607,688 The net sales by geographic region are attributed by customer location. The property by geographic region includes assets held and used, which are recognized within the “Property, net” line in the Consolidated Balance Sheets. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jan. 02, 2021 | |
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Quarterly Financial Data | Quarterly Financial Data (Unaudited) Quarters Ended March 28, June 27, September 26, January 2, Total Net sales $ 1,316,462 $ 1,738,779 $ 1,808,266 $ 1,800,843 $ 6,664,350 Cost of sales 842,730 1,105,767 1,191,553 1,676,036 4,816,086 Gross profit 473,732 633,012 616,713 124,807 1,848,264 Selling, general and administrative expenses 439,602 391,476 442,142 568,543 1,841,763 Operating profit (loss) 34,130 241,536 174,571 (443,736) 6,501 Other expenses 6,490 5,050 5,309 6,283 23,132 Interest expense, net 36,849 41,659 43,868 44,115 166,491 Income (loss) before income tax expense (9,209) 194,827 125,394 (494,134) (183,122) Income tax expense (benefit) (1,335) 33,646 22,116 (161,970) (107,543) Net income (loss) $ (7,874) $ 161,181 $ 103,278 $ (332,164) $ (75,579) Earnings (loss) per share: Basic $ (0.02) $ 0.46 $ 0.29 $ (0.95) $ (0.21) Diluted $ (0.02) $ 0.46 $ 0.29 $ (0.95) $ (0.21) Quarters Ended March 30, June 29, September 28, December 28, Total Net sales $ 1,588,024 $ 1,760,927 $ 1,866,967 $ 1,751,005 $ 6,966,923 Cost of sales 967,993 1,085,404 1,149,934 1,044,262 4,247,593 Gross profit 620,031 675,523 717,033 706,743 2,719,330 Selling, general and administrative expenses 470,387 445,923 449,962 463,328 1,829,600 Operating profit 149,644 229,600 267,071 243,415 889,730 Other expenses 7,451 8,249 8,066 7,658 31,424 Interest expense, net 48,059 46,522 43,091 40,907 178,579 Income before income tax expense 94,134 174,829 215,914 194,850 679,727 Income tax expense 13,046 25,274 30,823 9,864 79,007 Net income $ 81,088 $ 149,555 $ 185,091 $ 184,986 $ 600,720 Earnings per share: Basic $ 0.22 $ 0.41 $ 0.51 $ 0.51 $ 1.65 Diluted $ 0.22 $ 0.41 $ 0.51 $ 0.51 $ 1.64 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Consolidation | ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The duration and severity of the COVID-19 pandemic, which is subject to uncertainty, is having a significant impact on the Company’s business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may vary from these estimates. |
Foreign Currency Translation | Foreign Currency TranslationForeign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in both the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Income. |
Sales Recognition and Incentives | Sales Recognition and IncentivesThe Company recognizes revenue 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. The Company records a sales reduction for returns and allowances based upon historical return experience. The Company earns royalty revenues through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensee. The Company offers a variety of sales incentives to resellers and consumers of its products, and the policies regarding the recognition and display of these incentives within the Consolidated Statements of Income are as follows: Discounts, Coupons, and Rebates The Company provides customers with discounts and rebates that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the product revenue is recognized. The cost of these incentives is estimated using a number of factors, including historical utilization and redemption rates. The Company includes incentives offered in the form of free products in the determination of cost of sales. For all variable consideration, where appropriate, the Company estimates the amount using the expected value, which takes into consideration historical experience, current contractual requirements, specific known market events and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts. Volume-Based Incentives Volume-based incentives involve rebates or refunds of cash that are redeemable only if the customer completes a specified number of sales transactions. Under these incentive programs, the Company estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. The Company records volume-based incentives as a reduction of revenue. Cooperative Advertising Under cooperative advertising arrangements, the Company agrees to reimburse the retailer for a portion of the costs incurred by the retailer to advertise and promote certain of the Company’s products. The Company recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity takes place as a reduction of revenue. Fixtures and Racks Store fixtures and racks are periodically used by resellers to display Company products. The Company expenses the cost of these fixtures and racks in the period in which they are delivered to the resellers. The Company includes the costs of fixtures and racks incurred by resellers and charged back to the Company in the determination of net sales. Fixtures and racks purchased by the Company and provided to resellers are included in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Product Returns The Company generally offers customers a limited right of return for a purchased product. The Company estimates the amount of its product sales that may be returned by its customers and records this as a reduction of revenue in the period the related product revenue is recognized. |
Advertising Expense | Advertising ExpenseAdvertising represents one of several brand building methods used by the Company. Advertising costs, which include the development and production of advertising materials and the communication of these materials through various forms of media, are expensed in the period the advertising first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income of $130,432, $163,769 and $152,670 in 2020, 2019 and 2018, respectively. |
Shipping and Handling Costs | Shipping and Handling CostsRevenue received for shipping and handling costs is included in net sales and was $18,943, $19,536 and $19,315 in 2020, 2019 and 2018, respectively. Shipping costs, which comprise payments to third-party shippers, and handling costs, which consist of warehousing costs in the Company’s various distribution facilities, were $429,473, $441,766 and $409,098 in 2020, 2019 and 2018, respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. |
Research and Development | Research and DevelopmentResearch and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Research and development includes expenditures for new product, technological improvements for existing products and process innovation, which primarily consist of salaries, consulting and supplies attributable to time spent on research and development activities. Additional costs include depreciation and maintenance for research and development equipment and facilities. Research and development expense was $44,710, $51,520 and $59,313 in 2020, 2019 and 2018, respectively. |
Defined Contribution Benefit Plans | Defined Contribution Benefit PlansThe Company sponsors 401(k) plans as well as other defined contribution benefit plans. Expense for these plans was $35,625, $28,907 and $25,799 in 2020, 2019 and 2018, respectively. |
Cash and Cash Equivalents | Cash and Cash EquivalentsAll highly liquid investments with an original maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Other current assets” in the Consolidated Balance Sheets. At January 2, 2021 and December 28, 2019, the Company’s restricted cash balance was $1,166 and $1,047, respectively, which represents cash paid into the escrow account for the Bras N Things acquisition that closed in the first quarter of 2018. |
Accounts Receivable Valuation | Accounts Receivable ValuationAccounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable portfolio. Trade receivables are evaluated on a collection (pool) basis and aggregated on the basis of similar risk characteristics which are determined on the basis of historical losses, the aging of trade receivables, industry trends, and its customers’ financial strength, credit standing and payment and default history. |
Inventory Valuation | Inventory ValuationInventories are stated at the estimated lower of cost or net realizable value. Cost is determined by the first-in, first-out, or “FIFO,” method for inventories. Obsolete, damaged, and excess inventory is carried at the net realizable value, which is determined by assessing historical recovery rates, current market conditions and future marketing and sales plans. Rebates, discounts and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item and are therefore reflected in cost of sales when the related inventory item is sold. |
Property | Property Property is stated at historical cost and depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Machinery and equipment is depreciated over periods ranging from one to 15 years and buildings and building improvements over periods of up to 40 years. A change in the depreciable life is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods. Additions and improvements that substantially extend the useful life of a particular asset and interest costs incurred during the construction period of major properties are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or disposition of an asset, the cost and related accumulated depreciation are removed from the accounts. Property is tested for recoverability whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Such events include significant adverse changes in the business climate, several periods of operating or cash flow losses, forecasted continuing losses or a current expectation that an asset or an asset group will be disposed of before the end of its useful life. Recoverability of property is evaluated by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the estimated fair value. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized impairment loss is not permitted under GAAP. |
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 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. 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 the lease 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. |
Trademarks and Other Identifiable Intangible Assets | Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, licensing agreements, customer and distributor relationships and computer software. Identifiable intangible assets with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of a finite-lived intangible asset is based upon a number of factors, including the effects of demand, competition, expected changes in distribution channels and the level of maintenance expenditures required to obtain future cash flows. Trademarks determined to have finite lives are generally amortized over periods ranging from ten to 12 years, license agreements are generally amortized over periods ranging from three to 17 years, customer and distributor relationships are generally amortized over periods ranging from one to 15 years and computer software and other intangibles are generally amortized over periods ranging from one to 13 years. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used in evaluating elements of property. Identifiable intangible assets not subject to amortization are assessed for impairment at least annually, as of the first day of the third fiscal quarter, and as triggering events occur. The impairment test for identifiable intangible assets not subject to amortization consists of comparing the fair value of the intangible asset, which is determined using the income approach, to its carrying value. If the carrying value exceeds the fair value of the asset, an impairment loss is recognized in an amount equal to such excess. Fair values of intangible assets are primarily based on future cash flows projected to be generated from that asset. In performing the discounted cash flow analysis, management makes various judgments, estimates and assumptions, the most significant of which are the assumptions related to revenue growth rates, operating profit margin rates, terminal growth rates, and discount rates. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of intangible asset impairment. During the second quarter of 2020, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets as a result of the significant impact of the COVID-19 pandemic on their performance. Based on this analysis, the Company recorded impairment charges of $20,319 on certain indefinite-lived trademarks and other intangible assets within the European Innerwear business. The Company capitalizes internal software development costs incurred during the application development stage, which include the actual costs to purchase software from vendors and generally include personnel and related costs for employees who were directly associated with the enhancement and implementation of purchased computer software. Additions to computer software are included in the “Capital expenditures” line in the Consolidated Statements of Cash Flows. |
Goodwill | GoodwillGoodwill is the amount by which the purchase price exceeds the fair value of the assets acquired and liabilities assumed in a business combination. When a business combination is completed, the assets acquired and liabilities assumed are assigned to the reporting unit or units of the Company given responsibility for managing, controlling and generating returns on these assets and liabilities. In many instances, all of the acquired assets and assumed liabilities are assigned to a single reporting unit and in these cases, all of the goodwill is assigned to the same reporting unit. In those situations in which the acquired assets and liabilities are allocated to more than one reporting unit, the goodwill to be assigned to each reporting unit is determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. Goodwill is not amortized; however, it is assessed for impairment at least annually, as of the first day of the third quarter, and as triggering events occur. In evaluating the recoverability of goodwill, the Company estimates the fair value of its reporting units, which is determined using the income approach, and compares it to the carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to such excess. Fair values of reporting units are primarily based on future cash flows projected to be generated from that business. In performing the discounted cash flow analysis, management makes various judgments, estimates and assumptions, the most significant of which are the assumptions related to revenue growth rates, operating profit margin rates, terminal growth rates, and discount rates. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. |
Insurance Reserves | Insurance ReservesThe Company is self-insured for property, workers’ compensation, medical and other casualty programs up to certain stop-loss limits. Undiscounted liabilities for self-insured exposures are accrued at the present value of the expected aggregate losses below those limits and are based on a number of assumptions, including historical trends, actuarial assumptions and economic conditions. |
Stock-Based Compensation | Stock-Based CompensationThe Company established the Hanesbrands Inc. Omnibus Incentive Plan (As Amended and Restated), (the “Omnibus Incentive Plan”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retain employees. Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized as expense over the requisite service period. The Company estimates forfeitures for stock-based awards granted that are not expected to vest. |
Income Taxes | Income Taxes Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. Given continuing losses in certain jurisdictions in which the Company operates on a separate return basis, a valuation allowance has been established for the deferred tax assets in these specific locations. The Company periodically estimates the probable tax obligations using historical experience in tax jurisdictions and informed judgment. There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. Income tax expense is adjusted in the period in which these events occur, and these adjustments are included in the Company’s Consolidated Statements of Income. If such changes take place, there is a risk that the Company’s effective tax rate may increase or decrease in any period. A company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The enacted Tax Cuts and Jobs Act (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system that included a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. In 2018, the Company completed the accounting for the enactment of the Tax Act based upon its current interpretation of the Tax Act in accordance with available notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service. The Company adjusts its accounting as necessary when new guidance is issued. The Company continues to use 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. |
Financial Instruments | Financial Instruments 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. The use of these financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. Depending on the nature of the underlying risk being hedged, these financial instruments are either designated as cash flow hedges or are economic hedges against changes in the value of the hedged item and therefore not designated as hedges for accounting purposes. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. On the date the derivative is entered into, the Company determines whether the derivative meets the criteria for cash flow hedge accounting treatment or whether the financial instrument is serving as an economic hedge against changes in the value of the hedged item and therefore is not designated as a hedge for accounting purposes. The accounting for changes in fair value of the derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company formally documents its hedge relationships, including identifying the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments or forecasted transactions. The Company also formally assesses, both at inception and on a monthly basis thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. Cash flows hedges are classified in the same category as the item being hedged, and cash flows from derivative contracts not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties to the Company’s derivative contracts. Risk of nonperformance by counterparties is mitigated by dealing with highly rated counterparties and by diversifying across counterparties. Cash Flow Hedges For a cash flow hedge, the Company formally assesses, both at inception and on a monthly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. The change in the fair value of a derivative instrument that is designated and highly effective as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line in the Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in AOCI is recorded on the same line in the Consolidated Statements of Income as the hedged item. 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. If it is determined that a designated derivative instrument ceases to be a highly effective cash flow hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded on the same line in the Consolidated Statements of Income as the hedged item. Net Investment Hedges For a net investment hedge, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative or nonderivative instrument is highly effective as an economic hedge of foreign exchange risk associated with the hedged net investment. The change in the fair value of a derivative instrument or the change in the carrying value of a nonderivative instrument that is designated and highly effective as a net investment hedge is recorded in the cumulative translation adjustment component of AOCI, offsetting the translation adjustment of the net investment being hedged. The Company assesses net investment hedge effectiveness and measures net investment hedge results for both derivative and nonderivative hedging instruments on an after-tax basis. The interest component of a cross-currency swap derivative contract designated in a highly effective net investment hedge 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 derivative contract and recorded in the “Interest expense, net” line in the Consolidated Statements of Income. Cash flows from the periodic and final settlements of the cross-currency swap contracts are reported as cash flows from investing activities in the 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. If a net investment hedging relationship ceases to be highly effective, the Company discontinues hedge accounting, and any future change in the fair value of the derivative hedging instrument or future change in the carrying value of the nonderivative hedging instrument is recorded in the “Other expenses” line in the Consolidated Statements of Income, which is where the gain or loss on the sale or substantial liquidation of the underlying net investment would be recorded. However, any deferred gains or losses previously recorded in the cumulative translation adjustment component of AOCI will remain in AOCI until the hedged net investment is sold or substantially liquidated, at which time the cumulative deferred gains or losses are recorded in the “Other expenses” line in the Consolidated Statements of Income. Derivative Contracts Not Designated as Hedges For derivative contracts not designated as hedges, changes in fair value are reported in the “Cost of Sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Income. These contracts are recorded at fair value when the hedged item is recorded as an asset or liability and then are revalued each accounting period. |
Assets and Liabilities Acquired in Business Combinations | Assets and Liabilities Acquired in Business CombinationsBusiness combinations are accounted for using the purchase method, which requires the Company to allocate the cost of an acquired business to the acquired assets and assumed liabilities based on their estimated fair values at the acquisition date. The Company recognizes the excess of an acquired business’ cost over the fair value of acquired assets and assumed liabilities as goodwill. Fair values are determined using the income approach based on market participant assumptions focusing on future cash flow projections and accepted industry standards. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 accounting rules eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The new accounting rules were effective for the Company in the first quarter of 2020 and apply to its trade receivables. Under the new accounting rules, trade receivables are now evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These classifications will be reassessed at each measurement date. A combination of factors, such as industry trends, customers’ financial strength, credit standing and payment and default history are considered in determining the appropriate estimate of expected credit losses. 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. 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 accounting rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test which previously measured a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new accounting rules were effective for the Company in the first quarter of 2020. As a result of adopting the new rules, the Company compared the estimated fair value of its reporting units to their respective carrying values when evaluating the recoverability of goodwill. When the carrying value of a reporting unit exceeds its fair value, an impairment charge will be recognized for the amount by which its carrying value exceeds the reporting unit’s fair value; however, the loss recognized will not exceed the goodwill allocated to the reporting unit. In the fourth quarter of 2020, the Company recorded impairment charges of $25,173 on goodwill related to the U.S. Hosiery reporting unit as described in Note “Intangible Assets and Goodwill”. 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 accounting rules were effective for the Company in the first quarter of 2020. 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; however, its disclosures were updated upon adoption. Retirement Benefits In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20).” The new accounting rules expand disclosure requirements for employer sponsored defined benefit pension and other retirement plans. The new accounting rules were effective for the Company in the first quarter of 2020. 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. 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 accounting rules were effective for the Company in the first quarter of 2020. 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. Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” The new accounting rules clarify guidance around several subtopics by adopting enhanced verbiage to the following subtopics: fair value option disclosures, fair value measurement, investments - debt and equities securities, debt modifications and extinguishments, credit losses, and sales of financial assets. The standard was effective for the Company in the first quarter of 2020. The adoption of the new accounting rules did not have a material impact on the Company’s results of operations or cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new accounting rules reduce complexity by removing specific exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments, and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new accounting rules also simplify accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The new accounting rules will be effective for the Company in the first quarter of 2021. 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, cash flows or disclosures. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new accounting rules provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. Codification Improvements In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” The new accounting rules improve the consistency of the Codification by including all disclosure guidance in the appropriate Disclosure Section (Section 50) that had only been included in the Other Presentation Matters Section (Section 45) of the Codification. Additionally, the new rules also clarify guidance across various topics including defined benefit plans, foreign currency transactions, and interest expense. The standard is effective for the Company in the first quarter of 2021. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial conditions, results or operations, cash flows or disclosures. |
Reclassifications | ReclassificationsCertain prior year amounts in the notes to the Consolidated Financial Statements, have been reclassified to conform with the current year presentation. These classifications within the statements had no impact on the Company’s results of operations. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
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) | 12 Months Ended |
Jan. 02, 2021 | |
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: Years Ended January 2, December 28, December 29, Third-party brick-and-mortar wholesale $ 4,776,152 $ 5,263,692 $ 5,288,966 Consumer-directed 1,888,198 1,703,231 1,514,989 Total net sales $ 6,664,350 $ 6,966,923 $ 6,803,955 |
Acquisitions (Tables)
Acquisitions (Tables) - Bras N Things | 12 Months Ended |
Jan. 02, 2021 | |
Business Acquisition | |
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 | Year Ended December 29, Net sales $ 6,822,462 Net income from continuing operations 542,696 Earnings per share from continuing operations: Basic $ 1.49 Diluted 1.49 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Reconciliation of Basic to Diluted Weighted Average Shares Outstanding | The reconciliation of basic to diluted weighted average shares outstanding is as follows: Years Ended January 2, December 28, December 29, Basic weighted average shares outstanding 352,766 364,709 363,513 Effect of potentially dilutive securities: Stock options — 430 801 Restricted stock units — 376 186 Employee stock purchase plan and other — 4 5 Diluted weighted average shares outstanding 352,766 365,519 364,505 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Share-based Payment Arrangement, Assumptions for Option-Pricing Model Used in Determining Fair Value of Options Granted | The following table illustrates the assumptions for the Black-Scholes option-pricing model used in determining the fair value of these options granted during 2020. Year Ended January 2, Dividend yield 5.00 % Risk-free interest rate 0.31 % Volatility 39.97 % Expected term (years) 6 |
Summary of Changes in Stock Options Outstanding to Company's Employees Under Hanesbrands Omnibus Incentive Plan | A summary of the changes in stock options outstanding to the Company’s employees is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at December 30, 2017 1,539 $ 5.24 $ 24,108 1.76 Exercised (756) 3.92 Options outstanding at December 29, 2018 783 $ 6.51 $ 4,449 1.54 Exercised (312) 6.09 Options outstanding at December 28, 2019 471 $ 6.79 $ 3,786 0.94 Granted 250 17.18 Exercised (471) 6.79 Options outstanding at January 2, 2021 250 $ 17.18 $ 22 9.59 Options exercisable at January 2, 2021 — $ — $ — — |
Summary of Changes in Restricted Stock Unit Awards Outstanding Under Hanesbrands Omnibus Incentive Plan | A summary of the changes in the restricted stock unit awards outstanding is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at December 30, 2017 2,666 $ 24.36 $ 55,741 2.00 Granted — non-performanced based 970 15.52 Granted — performanced based 777 15.57 Vested (1,114) 27.55 Forfeited (38) 25.15 Nonvested share units outstanding at December 29, 2018 3,261 $ 18.53 $ 39,747 2.23 Granted — non-performanced based 114 16.20 Granted — performanced based (93) 20.71 Vested (1,246) 20.66 Forfeited (169) 17.52 Nonvested share units outstanding at December 28, 2019 1,867 $ 16.93 $ 27,692 1.50 Granted — non-performanced based 1,006 14.26 Granted — performanced based 1,124 14.40 Vested (803) 19.08 Forfeited (83) 15.53 Nonvested share units outstanding at January 2, 2021 3,111 $ 14.64 $ 45,361 1.32 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Allowances for Trade Accounts Receivable | The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions are as follows: Allowance Allowance Total Balance at December 30, 2017 $ 13,572 $ 12,524 $ 26,096 Charged to expenses 15,813 13,487 29,300 Deductions and write-offs (8,893) (12,959) (21,852) Currency translation (430) (510) (940) Balance at December 29, 2018 $ 20,062 $ 12,542 $ 32,604 Charged to expenses 8,658 12,942 21,600 Deductions and write-offs (9,198) (11,101) (20,299) Currency translation (518) (159) (677) Balance at December 28, 2019 $ 19,004 $ 14,224 $ 33,228 Charged to expenses 33,921 15,165 49,086 Deductions and write-offs (14,929) (10,200) (25,129) Currency translation 863 306 1,169 Balance at January 2, 2021 $ 38,859 $ 19,495 $ 58,354 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Inventories | Inventories consisted of the following: January 2, December 28, Raw materials $ 78,455 $ 83,545 Work in process 118,994 136,592 Finished goods 1,293,646 1,685,708 $ 1,491,095 $ 1,905,845 |
Property, Net (Tables)
Property, Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Summary of Property | Property is summarized as follows: January 2, December 28, Land $ 46,576 $ 44,542 Buildings and improvements 517,379 500,733 Machinery and equipment 1,090,035 1,085,451 Construction in progress 25,414 33,625 1,679,404 1,664,351 Less accumulated depreciation 1,133,633 1,076,455 Property, net $ 545,771 $ 587,896 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cash Flow and Non-cash Information, Supplemental Disclosures | The following table presents supplemental cash flow and non-cash information related to leases: Years Ended January 2, December 28, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 193,972 $ 158,140 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 51,087 $ 66,496 |
Schedule of Supplemental Lease Information | The following table presents supplemental information related to lease terms and discount rates: Years Ended January 2, December 28, Weighted average remaining lease term 5.0 years 5.3 years Weighted average discount rate 4.65 % 4.89 % |
Lessee, Operating Lease, Maturity Schedule (ASC 842) | The following table presents maturities of operating lease liabilities as of January 2, 2021: 2021 $ 162,225 2022 122,095 2023 97,432 2024 62,628 2025 40,954 Thereafter 82,705 Total lease payments 568,039 Less interest 60,845 $ 507,194 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Summary of Short Term Obligations | The Company had short-term revolving facilities in the following location at January 2, 2021 and December 28, 2019: Interest Rate as of January 2, Principal Amount January 2, December 28, Europe Various $ 784 $ 4,244 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | The Company had the following debt at January 2, 2021 and December 28, 2019: Interest Rate as of January 2, Principal Amount January 2, December 28, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ — December 2022 Term Loan A 2.10% 625,000 625,000 December 2022 Term Loan B 1.90% 300,000 300,000 December 2024 Australian Revolving Loan Facility — — — July 2021 5.375% Senior Notes 5.38% 700,000 — May 2025 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% 610,724 558,847 June 2024 European Revolving Loan Facility — — 110,914 December 2020 Accounts Receivable Securitization Facility — — — March 2021 4,035,724 3,394,761 Less long-term debt issuance costs 32,354 26,977 Less current maturities 263,936 110,914 $ 3,739,434 $ 3,256,870 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Intangible Assets and Related Accumulated Amortization | The primary components of the Company’s intangible assets and the related accumulated amortization are as follows: Gross Accumulated Net Book Year ended January 2, 2021: Intangible assets subject to amortization: Trademarks and brand names $ 37,273 $ 30,073 $ 7,200 Licensing agreements 104,000 65,811 38,189 Customer and distributor relationships 175,247 92,928 82,319 Computer software 98,049 60,351 37,698 Other intangibles 2,938 2,436 502 $ 417,507 $ 251,599 165,908 Intangible assets not subject to amortization: Trademarks 1,379,847 Perpetual licensing agreements and other 32,262 Net book value of intangible assets $ 1,578,017 Gross Accumulated Net Book Year ended December 28, 2019: Intangible assets subject to amortization: Trademarks and brand names $ 36,152 $ 27,752 $ 8,400 Licensing agreements 102,634 57,942 44,692 Customer and distributor relationships 163,831 71,603 92,228 Computer software 88,296 46,840 41,456 Other intangibles 3,156 1,812 1,344 $ 394,069 $ 205,949 188,120 Intangible assets not subject to amortization: Trademarks 1,298,598 Perpetual licensing agreements and other 34,082 Net book value of intangible assets $ 1,520,800 |
Goodwill | Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at December 29, 2018 $ 406,853 $ 316,384 $ 490,817 $ 27,673 $ 1,241,727 Acquisition of business — — 221 — 221 Currency translation — — (6,237) — (6,237) Net book value at December 28, 2019 $ 406,853 $ 316,384 $ 484,801 $ 27,673 $ 1,235,711 Impairment — — — (25,173) (25,173) Currency translation — — 45,092 — 45,092 Net book value at January 2, 2021 $ 406,853 $ 316,384 $ 529,893 $ 2,500 $ 1,255,630 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of 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 $ (149,985) $ 21,814 $ (595,307) $ 227,611 $ (495,867) Amounts reclassified from accumulated other comprehensive loss — (28,931) 20,121 2,012 (6,798) Current-period other comprehensive income (loss) activity (7,153) 11,903 (54,174) 13,257 (36,167) Total other comprehensive income (loss) (7,153) (17,028) (34,053) 15,269 (42,965) Reclassification of stranded tax related to U.S. pension plan to retained earnings — — — (78,816) (78,816) Balance at December 28, 2019 $ (157,138) $ 4,786 $ (629,360) $ 164,064 $ (617,648) Amounts reclassified from accumulated other comprehensive loss — (15,681) 23,009 (1,654) 5,674 Current-period other comprehensive income (loss) activity 104,318 (15,643) (62,379) 18,719 45,015 Total other comprehensive income (loss) 104,318 (31,324) (39,370) 17,065 50,689 Balance at January 2, 2021 $ (52,820) $ (26,538) $ (668,730) $ 181,129 $ (566,959) (1) Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note, “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 Years Ended January 2, December 28, December 29, Gain (loss) on foreign exchange contracts designated as cash flow hedges Cost of sales $ 15,681 $ 28,931 $ (9,836) Income tax (4,149) (7,276) 2,038 Net of tax 11,532 21,655 (7,798) Amortization of deferred actuarial loss and prior service cost Other expenses (23,009) (20,121) (19,693) Income tax 5,803 5,264 5,514 Net of tax (17,206) (14,857) (14,179) Total reclassifications $ (5,674) $ 6,798 $ (21,977) |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value January 2, December 28, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 41 $ 2,716 Cross-currency swap contracts Other current assets 918 926 Cross-currency swap contracts Other noncurrent assets — 2,975 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 2,657 5,314 Total derivative assets 3,616 11,931 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (17,645) (2,246) Forward foreign exchange contracts Other noncurrent liabilities (2,190) — Cross-currency swap contracts Other noncurrent liabilities (16,526) — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities (18,683) (1,147) Total derivative liabilities (55,044) (3,393) Net derivative asset (liability) $ (51,428) $ 8,538 |
Effect of Cash Flow Hedge Derivative Instruments | The effect of cash flow hedge derivative instruments on the Consolidated Statements of Income and AOCI is as follows: Amount of Gain (Loss) Years Ended January 2, December 28, December 29, Foreign exchange contracts $ (15,643) $ 11,903 $ 37,439 Location of Gain (Loss) Amount of Gain (Loss) Years Ended January 2, December 28, December 29, Foreign exchange contracts (1) Cost of sales $ 15,681 $ 28,931 $ (9,836) (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. Years Ended January 2, December 28, December 29, Total cost of sales in which the effects of cash flow hedges are recorded $ 4,816,086 $ 4,247,593 $ 4,150,736 |
Effect of Mark to Market Hedge Derivative Instruments | The effect of derivative contracts not designated as hedges on the Consolidated Statements of Income is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Years Ended January 2, December 28, December 29, Foreign exchange contracts Cost of sales $ (19,870) $ (31,809) $ 16,782 Foreign exchange contracts Selling, general and (2,029) (1,073) 726 Total $ (21,899) $ (32,882) $ 17,508 |
Effect of Net Investment Hedge Derivative Instruments | The amount of after-tax gains (losses) included in AOCI in the 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 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 Years Ended January 2, December 28, December 29, Euro-denominated long-term debt $ (36,609) $ (23) $ — Cross-currency swap contracts (14,404) 2,201 — Total $ (51,013) $ 2,178 $ — Location of Gain Recognized in Income Amount of Gain Recognized in Income Years Ended January 2, December 28, December 29, Cross-currency swap contracts Interest expense, net $ 7,637 $ 3,613 $ — Years Ended January 2, December 28, December 29, Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded $ 166,491 $ 178,579 $ 194,675 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis. Assets (Liabilities) at Fair Value as of January 2, 2021 Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 164,802 $ 164,802 $ — $ — Foreign equity securities 39,696 39,696 — — Debt securities 24,862 24,862 — — Cash and other 13,890 13,890 — — Insurance contracts 2,831 — 2,831 — Total plan assets in the fair value hierarchy 246,081 243,250 2,831 — Plan assets measured at net asset value: (1) Hedge fund of funds 375,027 Foreign equity securities 108,357 Debt securities 127,370 Real estate 48,671 Commodities 17,641 Total plan assets measured at net asset value 677,066 Total plan assets 923,147 Derivative contracts: Forward foreign exchange contracts - assets 2,698 — 2,698 — Cross-currency swap contracts - assets 918 — 918 — Forward foreign exchange contracts - liabilities (38,518) — (38,518) — Cross-currency swap contracts - liabilities (16,526) — (16,526) — Total derivative contracts (51,428) — (51,428) — Deferred compensation plan liability (21,878) — (21,878) — Total $ 849,841 $ 243,250 $ (70,475) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Assets (Liabilities) at Fair Value as of December 28, 2019 Total Quoted Prices In Significant Defined benefit pension plan investment assets: U.S. equity securities $ 162,455 $ 162,455 $ — $ — Foreign equity securities 34,224 34,224 — — Debt securities 41,356 41,356 — — Cash and other 7,382 7,382 — — Insurance contracts 2,971 — 2,971 — Total plan assets in the fair value hierarchy 248,388 245,417 2,971 — Plan assets measured at net asset value: (1) Hedge fund of funds 350,270 Foreign equity securities 101,299 Debt securities 94,384 Real estate 55,067 Commodities 17,736 Total plan assets measured at net asset value 618,756 Total plan assets 867,144 Derivative contracts: Forward foreign exchange contracts - assets 8,030 — 8,030 — Cross-currency swap contracts - assets 3,901 — 3,901 — Forward foreign exchange contracts - liabilities (3,393) — (3,393) — Total derivative contracts 8,538 — 8,538 — Deferred compensation plan liability (31,221) — (31,221) — Total $ 844,461 $ 245,417 $ (19,712) $ — (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss | The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of the Company’s noncontributory defined benefit pension plans were as follows: Years Ended January 2, December 28, December 29, Service cost $ 2,676 $ 2,892 $ 2,776 Interest cost 33,845 43,670 40,208 Expected return on assets (42,377) (44,697) (45,280) Curtailments 2 — (186) Settlement cost 727 115 42 Amortization of: Prior service cost (6) (6) (6) Net actuarial loss 22,331 20,127 19,699 Net periodic benefit cost $ 17,198 $ 22,101 $ 17,253 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ 38,557 $ 34,038 $ (20,965) Prior service credit 6 6 6 Total (gain) loss recognized in other comprehensive income (loss) 38,563 34,044 (20,959) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 55,761 $ 56,145 $ (3,706) |
Funded Status of Company's Defined Benefit Pension Plans | The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: January 2, December 28, Benefit obligation: Beginning of year $ 1,267,651 $ 1,164,518 Service cost 2,676 2,892 Interest cost 33,845 43,670 Benefits paid (61,849) (66,450) Curtailments (86) — Settlements (3,524) (1,255) Impact of exchange rate change 7,048 (286) Actuarial loss 105,366 124,577 Other (11) (15) End of year 1,351,116 1,267,651 Fair value of plan assets: Beginning of year 867,144 786,612 Actual return on plan assets 86,664 115,210 Employer contributions 33,115 32,476 Benefits paid (61,849) (66,450) Settlements (3,524) (1,255) Impact of exchange rate change 1,608 566 Other (11) (15) End of year 923,147 867,144 Funded status $ (427,969) $ (400,507) |
Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligations in Excess of Plan Assets | The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: January 2, December 28, Benefit obligation $ 1,351,116 $ 1,267,651 Plans with benefit obligation in excess of plan assets: Benefit obligation 1,319,523 1,239,077 Fair value of plan assets 891,569 837,554 |
Amounts Recognized in Company's Consolidated Balance Sheets | Amounts recognized in the Company’s Consolidated Balance Sheets consist of: January 2, December 28, Noncurrent assets $ 116 $ 1,016 Current liabilities (5,617) (3,001) Noncurrent liabilities (422,468) (398,522) Accumulated other comprehensive loss (670,064) (631,501) |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of: January 2, December 28, Prior service cost $ (145) $ (151) Actuarial loss 670,209 631,652 $ 670,064 $ 631,501 |
Weighted Average Actuarial Assumptions Used in Measuring Net Periodic Benefit Cost and Plan Obligation | The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows: January 2, December 28, December 29, Net periodic benefit cost: Discount rate 3.16 % 4.24 % 3.60 % Long-term rate of return on plan assets 4.96 5.79 5.32 Rate of compensation increase (1) 3.01 4.40 4.40 Interest crediting rate 5.49 5.49 5.49 Plan obligations: Discount rate 2.47 % 3.16 % 4.24 % Rate of compensation increase (1) 2.98 3.01 4.40 Interest crediting rate 5.49 5.49 5.49 (1) For January 2, 2021, the compensation assumption only applies to the international plans as the nonqualified retirement plan benefits are now all frozen. For December 28, 2019 and December 29, 2018, the compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at December 28, 2019 and December 29, 2018. |
Allocation of Pension Plan Assets | The allocation of pension plan assets as of the respective period end measurement dates is as follows: January 2, December 28, Asset category: Hedge fund of funds 41 % 40 % U.S. equity securities 18 19 Debt securities 16 16 Foreign equity securities 16 16 Real estate 5 6 Commodities 2 2 Insurance contracts 0 0 Cash and other 2 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Provision for Income Tax Computed by Applying U.S. Statutory Rate to Income Before Taxes as Reconciled to Actual Provisions | The provision for income tax expense (benefit) computed by applying the U.S. statutory rate to income (loss) before income tax expense as reconciled to the actual provisions were: Years Ended January 2, December 28, December 29, Income (loss) before income tax expense: Domestic 345.7 % (6.5) % (9.5) % Foreign (245.7) 106.5 109.5 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 21.0 % 21.0 % 21.0 % State income tax 13.3 1.1 (0.3) Tax on actual and planned remittances of foreign earnings (1) 4.2 (0.4) 9.9 Tax on foreign earnings due to U.S. tax reform including measurement period adjustments (2)(3) 20.9 — (0.5) Revaluation of net deferred tax assets due to U.S. tax reform including measurement period adjustments (4) — — (1.2) Tax on foreign earnings (U.S. tax reform - GILTI and FDII) (1.0) 2.2 2.3 Foreign taxes less than U.S. statutory rate 29.6 (11.9) (12.3) Statutory stock deduction and Luxembourg Adjustments (26.8) 2.2 (17.3) Employee benefits (1.7) (0.2) (0.1) Change in valuation allowance due to statutory stock deduction — — 17.3 Other changes in valuation allowance (12.5) 1.8 (3.9) Tax benefits related to tax basis adjustments in acquired intangibles — (1.7) — Increase in unrecognized tax benefits — — 0.5 Release of unrecognized tax benefit reserves 10.2 (0.5) — State tax rate change 0.3 0.3 0.4 Tax provision adjustments and revisions to prior years' returns (3.2) (2.4) (0.2) Nondeductible expenses and tax exempt income, net 5.6 — — Nondeductible impairment charges (2.9) — — Domestic income tax credits 1.7 — — Other, net — 0.1 0.5 Taxes at effective worldwide tax rates 58.7 % 11.6 % 16.1 % |
Current and Deferred Tax Provisions (Benefits) | Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended January 2, 2021 Domestic $ (9,869) $ (136,221) $ (146,090) Foreign 57,285 27,978 85,263 State 6,256 (52,972) (46,716) $ 53,672 $ (161,215) $ (107,543) Year ended December 28, 2019 Domestic $ (20,548) $ 12,164 $ (8,384) Foreign 67,037 5,599 72,636 State (9,299) 24,054 14,755 $ 37,190 $ 41,817 $ 79,007 Year ended December 29, 2018 Domestic $ (16,746) $ 61,202 $ 44,456 Foreign 86,006 (42,446) 43,560 State 8,044 7,855 15,899 $ 77,304 $ 26,611 $ 103,915 |
Cash Payments For Income Taxes | Years Ended January 2, December 28, December 29, Cash payments for income taxes $ 116,006 $ 112,477 $ 94,556 |
Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities at the respective year-ends were as follows: January 2, December 28, Deferred tax assets: Nondeductible reserves $ — $ 1,246 Inventories 244,151 28,467 Bad debt allowance 12,197 9,108 Accrued expenses 16,099 10,305 Employee benefits 127,963 125,617 Tax credits 4,088 5,841 Net operating loss and other tax carryforwards 317,903 332,983 Leasing 144,842 142,379 Property and equipment 1,903 — Derivatives 17,156 — Section 163(j) 3,519 — Capitalized research costs 6,831 — Other 2,393 5,537 Gross deferred tax assets 899,045 661,483 Less valuation allowances (298,060) (263,858) Deferred tax assets 600,985 397,625 Deferred tax liabilities: Property and equipment — 656 Derivatives — 1,525 Section 481(a) liability 49,551 26,762 Leasing 128,547 132,559 Accrued tax on unremitted foreign earnings 32,888 42,653 Intangibles 96,141 92,577 Prepaids 4,553 5,583 Deferred tax liabilities 311,680 302,315 Net deferred tax assets $ 289,305 $ 95,310 |
Summary of Changes in Valuation Allowance | The changes in the Company’s valuation allowance for deferred tax assets are as follows: December 30, 2017 $ 142,440 Charged to income tax expense 52,135 Charged to other accounts (1) 17,672 Charged to retained earnings upon adoption of ASU 2016-16 (2) 34,043 December 29, 2018 $ 246,290 Charged to income tax expense 13,671 Charged to other accounts (1) 3,897 December 28, 2019 $ 263,858 Charged to income tax expense 23,958 Charged to other accounts (1) 10,244 January 2, 2021 $ 298,060 (1) Charges to other accounts include the effects of foreign currency translation and purchase accounting adjustments. (2) The Company adopted ASU 2016-16 on December 31, 2017 using the modified retrospective method, however there was no net cumulative-effect adjustment recorded to retained earnings as of that date. Upon adoption, the Company recognized additional net deferred tax assets of $34,043 and a corresponding increase in valuation allowance against these additional deferred tax assets as these deferred tax assets are not considered to be more likely than not realizable. |
Net Operating Loss Carryforwards | At January 2, 2021, the Company had foreign net operating loss carryforwards of approximately $1,049,626 which are subject to expiration as follows: Fiscal Year: 2021 $ 7,108 2022 3,588 2023 12,589 2024 6,452 2025 6,134 Thereafter 1,013,755 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 30, 2017 (gross balance of $99,469) $ 94,906 Additions based on tax positions related to the current year 2,877 Additions based on tax positions of prior years 430 Additions based on tax positions related to the acquisition of Bras N Things 10,911 Settlements (542) Lapse of statute of limitations (1,000) Reductions for tax positions of prior years (3,128) Balance at December 29, 2018 (gross balance of $107,306) $ 104,454 Additions based on tax positions related to the current year 2,797 Additions based on tax positions of prior years 19,585 Settlements (2,730) Lapse of statute of limitations (4,016) Reductions for tax positions of prior years (44,597) Balance at December 28, 2019 (gross balance of $79,897) $ 75,493 Additions based on tax positions related to the current year 3,675 Additions based on tax positions of prior years 2,698 Settlements — Lapse of statute of limitations (16,655) Reductions for tax positions of prior years (18,385) Balance at January 2, 2021 (gross balance of $47,786) $ 46,826 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Net Sales | Years Ended January 2, December 28, December 29, Net sales: Innerwear $ 2,978,009 $ 2,302,632 $ 2,379,675 Activewear 1,184,413 1,854,704 1,792,280 International 2,309,754 2,529,375 2,344,115 Other 192,174 280,212 287,885 Total net sales $ 6,664,350 $ 6,966,923 $ 6,803,955 |
Segment Operating Profit | Years Ended January 2, December 28, December 29, Segment operating profit: Innerwear $ 718,923 $ 515,991 $ 526,831 Activewear 67,643 281,319 267,428 International 315,365 384,784 351,769 Other (14,025) 24,829 25,348 Total segment operating profit 1,087,906 1,206,923 1,171,376 Items not included in segment operating profit: General corporate expenses (238,931) (218,770) (190,090) Restructuring and other action-related charges (805,787) (63,486) (80,198) Amortization of intangibles (36,687) (34,937) (36,437) Total operating profit 6,501 889,730 864,651 Other expenses (23,132) (31,424) (26,395) Interest expense, net (166,491) (178,579) (194,675) Income (loss) before income tax expense $ (183,122) $ 679,727 $ 643,581 |
Restructuring and other action-related charges | The components of restructuring and other action-related charges included in operating profit were as follows: Years Ended January 2, December 28, December 29, (dollars in thousands) Restructuring and other action-related charges included in operating profit (loss): Supply chain actions $ 23,538 $ 53,651 $ — Program exit costs 9,856 4,616 — Other restructuring costs 18,219 5,219 39,529 COVID-19 related charges: Supply chain re-startup 48,893 — — Bad debt 11,375 — — Inventory 20,485 — — Intangible assets and goodwill 45,492 — — Full Potential plan: Inventory SKU rationalization 210,904 — — PPE inventory write-off 373,767 — — PPE vendor commitments 26,400 — — Write-off of acquisition tax asset 16,858 — — European Innerwear business — — 26,403 Hanes Australasia — — 14,266 Total restructuring and other action-related charges included in operating profit (loss) $ 805,787 $ 63,486 $ 80,198 |
Assets | January 2, December 28, Assets: Innerwear $ 1,198,721 $ 1,352,773 Activewear 1,021,761 1,045,567 International 1,489,305 1,578,251 Other 172,270 197,312 3,882,057 4,173,903 Corporate (1) 3,816,817 3,180,083 Total assets $ 7,698,874 $ 7,353,986 |
Depreciation and Amortization Expense | Years Ended January 2, December 28, December 29, Depreciation and amortization expense: Innerwear $ 27,407 $ 30,408 $ 33,348 Activewear 23,621 23,804 18,768 International 35,898 35,618 37,642 Other 5,520 6,200 5,601 92,446 96,030 95,359 Corporate 40,000 34,937 36,437 Total depreciation and amortization expense $ 132,446 $ 130,967 $ 131,796 |
Additions to Long-Lived Assets | Years Ended January 2, December 28, December 29, Capital expenditures: Innerwear $ 15,061 $ 16,852 $ 20,459 Activewear 8,574 19,902 16,024 International 16,738 43,421 33,632 Other 4,658 4,436 3,221 45,031 84,611 73,336 Corporate 8,704 16,473 12,957 Total capital expenditures $ 53,735 $ 101,084 $ 86,293 |
Geographic Area Information (Ta
Geographic Area Information (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Text Block [Abstract] | |
Sales and Long Lived Assets by Geographical Area | Geographic Area Information Years Ended or at January 2, December 28, December 29, Sales Property, Net Sales Property, Net Sales Property, Net Americas $ 4,544,973 $ 351,841 $ 4,659,772 $ 383,219 $ 4,658,346 $ 402,370 Asia Pacific 1,088,541 92,590 1,247,989 104,041 1,129,605 104,305 Europe 1,005,590 100,687 1,023,639 99,560 987,016 99,835 Other 25,246 653 35,523 1,076 28,988 1,178 $ 6,664,350 $ 545,771 $ 6,966,923 $ 587,896 $ 6,803,955 $ 607,688 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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Quarterly Information | Quarters Ended March 28, June 27, September 26, January 2, Total Net sales $ 1,316,462 $ 1,738,779 $ 1,808,266 $ 1,800,843 $ 6,664,350 Cost of sales 842,730 1,105,767 1,191,553 1,676,036 4,816,086 Gross profit 473,732 633,012 616,713 124,807 1,848,264 Selling, general and administrative expenses 439,602 391,476 442,142 568,543 1,841,763 Operating profit (loss) 34,130 241,536 174,571 (443,736) 6,501 Other expenses 6,490 5,050 5,309 6,283 23,132 Interest expense, net 36,849 41,659 43,868 44,115 166,491 Income (loss) before income tax expense (9,209) 194,827 125,394 (494,134) (183,122) Income tax expense (benefit) (1,335) 33,646 22,116 (161,970) (107,543) Net income (loss) $ (7,874) $ 161,181 $ 103,278 $ (332,164) $ (75,579) Earnings (loss) per share: Basic $ (0.02) $ 0.46 $ 0.29 $ (0.95) $ (0.21) Diluted $ (0.02) $ 0.46 $ 0.29 $ (0.95) $ (0.21) Quarters Ended March 30, June 29, September 28, December 28, Total Net sales $ 1,588,024 $ 1,760,927 $ 1,866,967 $ 1,751,005 $ 6,966,923 Cost of sales 967,993 1,085,404 1,149,934 1,044,262 4,247,593 Gross profit 620,031 675,523 717,033 706,743 2,719,330 Selling, general and administrative expenses 470,387 445,923 449,962 463,328 1,829,600 Operating profit 149,644 229,600 267,071 243,415 889,730 Other expenses 7,451 8,249 8,066 7,658 31,424 Interest expense, net 48,059 46,522 43,091 40,907 178,579 Income before income tax expense 94,134 174,829 215,914 194,850 679,727 Income tax expense 13,046 25,274 30,823 9,864 79,007 Net income $ 81,088 $ 149,555 $ 185,091 $ 184,986 $ 600,720 Earnings per share: Basic $ 0.22 $ 0.41 $ 0.51 $ 0.51 $ 1.65 Diluted $ 0.22 $ 0.41 $ 0.51 $ 0.51 $ 1.64 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Restructuring and other action-related charges | $ 805,787 | $ 63,486 | $ 80,162 |
Operating Profit (Loss) | |||
Restructuring and other action-related charges | 805,787 | 63,486 | 80,198 |
PPE inventory write-off | Operating Profit (Loss) | |||
Restructuring and other action-related charges | 373,767 | 0 | 0 |
PPE vendor commitments | Operating Profit (Loss) | |||
Restructuring and other action-related charges | 26,400 | 0 | 0 |
Inventory SKU rationalization | Operating Profit (Loss) | |||
Restructuring and other action-related charges | $ 210,904 | $ 0 | $ 0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Summary of Significant Accounting Policies | |||||||||||
Advertising Expense | $ 130,432 | $ 163,769 | $ 152,670 | ||||||||
Net sales | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | 6,664,350 | 6,966,923 | 6,803,955 |
Shipping and handling costs | 429,473 | 441,766 | 409,098 | ||||||||
Research and development expense | 44,710 | 51,520 | 59,313 | ||||||||
Defined contribution benefit plans | 35,625 | 28,907 | 25,799 | ||||||||
Restricted Cash | $ 1,166 | $ 1,047 | 1,166 | 1,047 | 22,710 | ||||||
Impairment charges on goodwill | 25,173 | ||||||||||
Hanes European Innerwear | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Impairment charges on certain indefinite-lived trademarks and other intangible assets | 20,319 | ||||||||||
U.S. Hosiery | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Impairment charges on goodwill | $ 25,173 | ||||||||||
Buildings and Improvements | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Estimated useful life | 40 years | ||||||||||
Minimum | Trademarks | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 10 years | ||||||||||
Minimum | Licensing agreements | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 3 years | ||||||||||
Minimum | Customer and distributor relationships | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 1 year | ||||||||||
Minimum | Computer software and other intangibles | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 1 year | ||||||||||
Minimum | Machinery and Equipment | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Estimated useful life | 1 year | ||||||||||
Maximum | Trademarks | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 12 years | ||||||||||
Maximum | Licensing agreements | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 17 years | ||||||||||
Maximum | Customer and distributor relationships | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 15 years | ||||||||||
Maximum | Computer software and other intangibles | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Finite-lived intangible assets amortization period | 13 years | ||||||||||
Maximum | Machinery and Equipment | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Estimated useful life | 15 years | ||||||||||
Shipping and Handling | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Net sales | $ 18,943 | $ 19,536 | $ 19,315 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue | |||||||||||
Net sales | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | $ 6,664,350 | $ 6,966,923 | $ 6,803,955 |
Third-party brick-and-mortar wholesale | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 4,776,152 | 5,263,692 | 5,288,966 | ||||||||
Consumer-directed | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 1,888,198 | $ 1,703,231 | $ 1,514,989 | ||||||||
Government Contract | Third-party brick-and-mortar wholesale | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | $ 645,776 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) € in Thousands, $ in Thousands, $ in Thousands | Feb. 12, 2018USD ($)stores | Feb. 12, 2018AUD ($) | Feb. 28, 2018USD ($) | Feb. 28, 2018EUR (€) | Apr. 29, 2017USD ($) | Apr. 29, 2017EUR (€) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 28, 2019USD ($) | Dec. 28, 2019AUD ($) | Jan. 02, 2021USD ($) | Dec. 29, 2018USD ($) | Feb. 12, 2018AUD ($)stores | Dec. 30, 2017USD ($) | Dec. 30, 2017EUR (€) | Sep. 30, 2017 | Oct. 01, 2016 | Jul. 02, 2016 | Jun. 30, 2016EUR (€) |
Business Acquisition | |||||||||||||||||||
Goodwill | $ 1,235,711 | $ 1,255,630 | $ 1,241,727 | ||||||||||||||||
Bras N Things | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Percent of business acquired | 100.00% | 100.00% | |||||||||||||||||
Initial total purchase price | $ 391,572 | $ 498,236 | |||||||||||||||||
Increase (decrease) in consideration transferred | (2,367) | $ (3,012) | |||||||||||||||||
Revised 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 | |||||||||||||||||
Number of stores | stores | 170 | 170 | |||||||||||||||||
Goodwill, Purchase Accounting Adjustments | $ (792) | ||||||||||||||||||
Goodwill | $ 111,832 | ||||||||||||||||||
Trademarks and other identifiable intangibles | 278,214 | ||||||||||||||||||
Other net liabilities | 29,132 | ||||||||||||||||||
Champion Europe | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Percent of business acquired | 100.00% | 100.00% | |||||||||||||||||
Cash consideration paid | $ 245,554 | € 220,751 | |||||||||||||||||
Contingent consideration | $ 45,277 | $ 73,738 | € 64,250 | € 40,700 | |||||||||||||||
Payment for contingent consideration | $ 32,488 | € 26,430 | $ 41,250 | € 37,820 | |||||||||||||||
Trademarks and brand names | Bras N Things | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Indefinite-lived Intangible Assets Acquired | 275,071 | ||||||||||||||||||
Noncompete Agreements | Bras N Things | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Finite-lived Intangible Assets Acquired | 2,358 | ||||||||||||||||||
Customer Lists | Bras N Things | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Finite-lived Intangible Assets Acquired | $ 785 | ||||||||||||||||||
Finite-lived intangible assets amortization period | 3 years | 3 years | |||||||||||||||||
3.50% Senior Notes | |||||||||||||||||||
Business Acquisition | |||||||||||||||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% |
Acquisitions - Acquired Assets
Acquisitions - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Feb. 12, 2018 |
Business Acquisition | ||||
Goodwill | $ 1,255,630 | $ 1,235,711 | $ 1,241,727 | |
Bras N Things | ||||
Business Acquisition | ||||
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 payables | 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 Acquisitions - Com
Acquisitions Acquisitions - Components of Purchase Price (Details) - Feb. 12, 2018 - Bras N Things $ in Thousands, $ in Thousands | AUD ($) | USD ($) | USD ($) |
Business Acquisition | |||
Cash consideration paid | $ 428,956 | $ 337,123 | |
Indemnification escrow asset | 31,988 | $ 25,140 | |
Debt assumed | 34,280 | $ 26,942 | |
Total purchase price | $ 495,224 | $ 389,205 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Pro Forma - Bras N Things $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / shares | |
Business Acquisition | |
Net sales | $ | $ 6,822,462 |
Income from continuing operations | $ | $ 542,696 |
Earnings per share from continuing operations: | |
Basic | $ / shares | $ 1.49 |
Diluted | $ / shares | $ 1.49 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic to Diluted Weighted Average Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation of basic to diluted weighted average shares | |||
Basic weighted average shares outstanding | 352,766 | 364,709 | 363,513 |
Diluted weighted average shares outstanding | 352,766 | 365,519 | 364,505 |
Stock options | |||
Effect of potentially dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 430 | 801 |
Restricted stock units | |||
Effect of potentially dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 376 | 186 |
Employee stock purchase plan and other | |||
Effect of potentially dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 4 | 5 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 219 | 0 | 0 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 621 | 0 | 450 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Generally vesting period of Options granted and Restricted stock Units | 3 years | ||
Period of exercise of Option granted to date | 10 years | ||
Dividend yield | 5.00% | ||
Risk-free interest rate | 0.31% | ||
Volatility | 39.97% | ||
Expected term (years) | 6 years | ||
The total intrinsic value of options that were exercised | $ 3,299 | $ 3,084 | $ 6,242 |
Total compensation expense, recognized | 18,664 | 8,908 | 21,063 |
Deferred tax benefit, recognized | 1,808 | 1,470 | 1,888 |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | 14,026 | ||
Unrecognized compensation cost expected to be recognized in 2021 | 8,752 | ||
Unrecognized compensation cost expected to be recognized in 2022 | 4,480 | ||
Unrecognized compensation cost expected to be recognized in 2023 | 794 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares vested | $ 15,325 | $ 25,730 | $ 30,701 |
Minimum percentage of target of granted performance-based restricted stock units | 0.00% | ||
Maximum percentage of target of granted performance-based restricted stock units | 200.00% | ||
Number of Shares Granted Outside of the Omnibus Plan | 225,399 | ||
Restricted Stock Units (RSUs) | Non-performanced based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted Outside of the Omnibus Plan | 119,143 | ||
Restricted Stock Units (RSUs) | Performance-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted Outside of the Omnibus Plan | 106,256 | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of Restricted Stock Units to generally vest | 1 year | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of Restricted Stock Units to generally vest | 3 years | ||
Share Based Compensation Arrangement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares authorized for awards granted | 11,000 | ||
Common stock shares may be purchased by eligible employees | 74,220 | ||
Number of shares available for future grants | 17,322 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted Outside of the Omnibus Plan | 250,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Stock Options Outstanding to Company's Employees Under Hanesbrands Incentive Plan (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, Shares, Beginning Balance | 471 | 783 | 1,539 | |
Granted, shares | 250 | |||
Exercised, Shares | (471) | (312) | (756) | |
Options outstanding, Shares, Ending Balance | 250 | 471 | 783 | 1,539 |
Options exercisable, Shares, Ending Balance | 0 | |||
Options outstanding,Weighted-Average Exercise Price, Beginning Balance | $ 6.79 | $ 6.51 | $ 5.24 | |
Weighted-Average Exercise Price, Grants | 17.18 | |||
Weighted-Average Exercise Price, Exercised | 6.79 | 6.09 | 3.92 | |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 17.18 | $ 6.79 | $ 6.51 | $ 5.24 |
Weighted-Average Exercise Price, Exercisable | $ 0 | |||
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 22 | $ 3,786 | $ 4,449 | $ 24,108 |
Options Outstanding, Aggregate Intrinsic Value, Ending Balance | $ 0 | |||
Option Outstanding, Weighted-Average Remaining Contractual Term (Years) | 9 years 7 months 2 days | 11 months 8 days | 1 year 6 months 14 days | 1 year 9 months 3 days |
Option Exercisable, Weighted-Average Remaining Contractual Term (Years) | 0 years |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Changes in Restricted Stock Unit Awards Outstanding Under Hanesbrands Incentive Plan (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested share units outstanding, Beginning Balance | 1,867 | 3,261 | 2,666 | |
Vested, Shares | (803) | (1,246) | (1,114) | |
Forfeited, Shares | (83) | (169) | (38) | |
Nonvested share units outstanding, Ending Balance | 3,111 | 1,867 | 3,261 | 2,666 |
Weighted Average Grant Date Fair Value, Share units, Beginning Balance | $ 16.93 | $ 18.53 | $ 24.36 | |
Weighted Average Grant Date Fair Value, Vested | 19.08 | 20.66 | 27.55 | |
Weighted Average Grant Date Fair Value, Forfeited | 15.53 | 17.52 | 25.15 | |
Weighted Average Grant Date Fair Value, Share units, Ending Balance | $ 14.64 | $ 16.93 | $ 18.53 | $ 24.36 |
Aggregate Intrinsic Value | $ 45,361 | $ 27,692 | $ 39,747 | $ 55,741 |
Weighted-Average Remaining Contractual Term (Years) | 1 year 3 months 25 days | 1 year 6 months | 2 years 2 months 23 days | 2 years |
Non-Performanced Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,006 | 114 | 970 | |
Granted, Weighted Average Grant Date Fair Value | $ 14.26 | $ 16.20 | $ 15.52 | |
Performanced Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Performanced Based Restricted Stock Units, Nonvested, Number of Shares | 1,124 | (93) | 777 | |
Granted, Weighted Average Grant Date Fair Value | $ 14.40 | $ 20.71 | $ 15.57 |
Trade Accounts Receivable - All
Trade Accounts Receivable - Allowances for Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | $ 33,228 | $ 32,604 | $ 26,096 |
Charged to expenses | 49,086 | 21,600 | 29,300 |
Deductions and write-offs | (25,129) | (20,299) | (21,852) |
Currency Translation | 1,169 | (677) | (940) |
Ending Balance | 58,354 | 33,228 | 32,604 |
Allowance for Doubtful Accounts | |||
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | 19,004 | 20,062 | 13,572 |
Charged to expenses | 33,921 | 8,658 | 15,813 |
Deductions and write-offs | (14,929) | (9,198) | (8,893) |
Currency Translation | 863 | (518) | (430) |
Ending Balance | 38,859 | 19,004 | 20,062 |
Allowance for Chargebacks and Other Deductions | |||
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | 14,224 | 12,542 | 12,524 |
Charged to expenses | 15,165 | 12,942 | 13,487 |
Deductions and write-offs | (10,200) | (11,101) | (12,959) |
Currency Translation | 306 | (159) | (510) |
Ending Balance | $ 19,495 | $ 14,224 | $ 12,542 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Trade Accounts Receivable [Abstract] | |||
Beneficial Interest Assets | $ 2,970 | $ 2,984 | |
Funding Fees For Sales Of Accounts Receivable | $ 5,331 | $ 9,891 | $ 9,566 |
Inventories Disclosure (Detail)
Inventories Disclosure (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Inventories Disclosure [Abstract] | ||
Raw materials | $ 78,455 | $ 83,545 |
Work in process | 118,994 | 136,592 |
Finished goods | 1,293,646 | 1,685,708 |
Total Inventories | $ 1,491,095 | $ 1,905,845 |
Inventories Narrative (Details)
Inventories Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Inventory [Line Items] | |||
Restructuring and other action-related charges | $ 805,787 | $ 63,486 | $ 80,162 |
Operating Profit (Loss) | |||
Inventory [Line Items] | |||
Restructuring and other action-related charges | 805,787 | 63,486 | 80,198 |
PPE inventory write-off | Operating Profit (Loss) | |||
Inventory [Line Items] | |||
Restructuring and other action-related charges | 373,767 | 0 | 0 |
Inventory SKU rationalization | Operating Profit (Loss) | |||
Inventory [Line Items] | |||
Restructuring and other action-related charges | $ 210,904 | $ 0 | $ 0 |
Summary of Property (Detail)
Summary of Property (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Net - Summary Of Property [Abstract] | |||
Land | $ 46,576 | $ 44,542 | |
Buildings and improvements | 517,379 | 500,733 | |
Machinery and equipment | 1,090,035 | 1,085,451 | |
Construction in progress | 25,414 | 33,625 | |
Property, gross | 1,679,404 | 1,664,351 | |
Less accumulated depreciation | 1,133,633 | 1,076,455 | |
Property, net | $ 545,771 | $ 587,896 | $ 607,688 |
Property, Net Narrative (Detail
Property, Net Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Capital expenditures included in accounts payable | $ 17,931 | $ 19,327 | $ 20,275 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2018 | |
Leases [Abstract] | ||||
Cumulative effect of change in adoption of leases standard | $ 6,556 | |||
Right-of-use assets | $ 467,268 | 487,787 | $ 507,669 | |
Total operating lease liabilities | 507,194 | $ 535,054 | ||
Lease cost | 240,401 | 231,607 | ||
Variable cost | $ 78,025 | 71,728 | ||
Operating lease, rent expense | $ 185,696 | |||
Lessee, Lease, Description [Line Items] | ||||
Option to terminate, period | 1 year | |||
Retained Earnings | ||||
Leases [Abstract] | ||||
Cumulative effect of change in adoption of leases standard | $ 6,556 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 month | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 37 years | |||
Option to extend, term | 15 years |
Leases schedule of lease cash f
Leases schedule of lease cash flow and non-cash, supplemental disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases | $ 193,972 | $ 158,140 |
Right-of-use assets obtained in exchange for lease obligations - non-cash activity | $ 51,087 | $ 66,496 |
Leases schedule of supplemental
Leases schedule of supplemental lease information (Details) | Jan. 02, 2021 | Dec. 28, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term | 5 years | 5 years 3 months 18 days |
Weighted average discount rate | 4.65% | 4.89% |
Leases schedule of lease maturi
Leases schedule of lease maturities (ASC 842) (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 30, 2018 |
Leases [Abstract] | ||
2021 | $ 162,225 | |
2022 | 122,095 | |
2023 | 97,432 | |
2024 | 62,628 | |
2025 | 40,954 | |
Thereafter | 82,705 | |
Total lease payments | 568,039 | |
Less interest | 60,845 | |
Total operating lease liabilities | $ 507,194 | $ 535,054 |
Notes Payable - Summary of Shor
Notes Payable - Summary of Short Term Obligations (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Line of Credit Facility [Line Items] | ||
Principal amount | $ 784 | $ 4,244 |
Revolving Facility | Europe | ||
Line of Credit Facility [Line Items] | ||
Principal amount | $ 784 | $ 4,244 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - Revolving Facility - Notes Payable to Banks - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Notes Payable [Line Items] | |||
Total borrowing availability | $ 118,142 | ||
Total interest paid on notes payable | $ 153 | $ 475 | $ 1,579 |
Debt (Details)
Debt (Details) € in Thousands, $ in Thousands | Jan. 02, 2021USD ($) | Jun. 27, 2020 | Dec. 28, 2019USD ($) | Sep. 30, 2017 | Jul. 01, 2017USD ($) | Jul. 01, 2017EUR (€) | Oct. 01, 2016 | Jul. 02, 2016 | Jun. 03, 2016EUR (€) |
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 4,035,724 | $ 3,394,761 | |||||||
Long-term debt issuance cost | 32,354 | 26,977 | |||||||
Current portion of long-term debt | 263,936 | 110,914 | |||||||
Long-term debt, net | $ 3,739,434 | 3,256,870 | |||||||
Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Long-term Debt | $ 0 | 0 | |||||||
Term Loan A | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.10% | ||||||||
Long-term Debt | $ 625,000 | 625,000 | |||||||
Term Loan B | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.90% | ||||||||
Long-term Debt | $ 300,000 | 300,000 | |||||||
Australian Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 0 | 0 | |||||||
Interest rate | 0.00% | ||||||||
5.375% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 700,000 | 0 | |||||||
Interest rate | 5.38% | 5.375% | |||||||
4.875% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 900,000 | 900,000 | $ 900,000 | ||||||
Interest rate | 4.88% | 4.875% | 4.875% | ||||||
4.625% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 900,000 | 900,000 | $ 900,000 | ||||||
Interest rate | 4.63% | 4.625% | 4.625% | ||||||
3.50% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 610,724 | 558,847 | € 500,000 | € 500,000 | |||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | |||||
European Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 0 | 110,914 | |||||||
Interest rate | 0.00% | ||||||||
Accounts Receivable Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Long-term Debt | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Thousands, $ in Thousands, $ in Thousands | Dec. 15, 2017USD ($) | Jul. 04, 2016AUD ($) | Jun. 03, 2016EUR (€) | Jul. 03, 2021USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Jul. 01, 2017USD ($) | Apr. 03, 2021USD ($) | Jan. 02, 2021USD ($) | Jan. 02, 2021EUR (€) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | May 15, 2022 | Sep. 26, 2020USD ($) | Mar. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017 | Jul. 01, 2017EUR (€) | Oct. 01, 2016 | Sep. 09, 2016EUR (€) | Jul. 15, 2016USD ($) | Jul. 02, 2016 | Nov. 09, 2010 |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 4,035,724 | $ 3,394,761 | |||||||||||||||||||||
Long-term debt issuance cost | 32,354 | 26,977 | |||||||||||||||||||||
Payments of debt issuance costs | 15,018 | 1,203 | $ 677 | ||||||||||||||||||||
Borrowings on Senior Notes | 700,000 | 0 | 0 | ||||||||||||||||||||
Trade accounts receivable less allowances | 831,860 | 815,210 | |||||||||||||||||||||
Future principal payment, 2021 | 263,936 | ||||||||||||||||||||||
Future principal payment, 2022 | 600,000 | ||||||||||||||||||||||
Future principal payment, 2023 | 0 | ||||||||||||||||||||||
Future principal payment, 2024 | 1,571,788 | ||||||||||||||||||||||
Future principal payment, 2025 | 700,000 | ||||||||||||||||||||||
Future principal payment, 2026 and thereafter | 900,000 | ||||||||||||||||||||||
Carrying value of unamortized debt issuance costs | 5,120 | ||||||||||||||||||||||
Amortization of debt issuance costs | $ 11,565 | 10,731 | 9,278 | ||||||||||||||||||||
Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Leverage Ratio | 3 | ||||||||||||||||||||||
Debt Issuance Costs Amortization Period, In Years | 1 year | 1 year | |||||||||||||||||||||
Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Leverage Ratio | 4.50 | ||||||||||||||||||||||
Debt Issuance Costs Amortization Period, In Years | 10 years | 10 years | |||||||||||||||||||||
Senior Secured Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Leverage Ratio | 3.50 | ||||||||||||||||||||||
Variable rate on base rate | 0.50% | 0.50% | |||||||||||||||||||||
Syndicated Facility Agreement | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt to EBITDA Ratio | 4.50 | 4.50 | |||||||||||||||||||||
Permitted Acquisition Amount for Increased Debt to EBITDA Ratio | $ 200,000 | ||||||||||||||||||||||
Syndicated Facility Agreement | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt to EBITDA Ratio | 5 | 5 | |||||||||||||||||||||
Australian Revolving Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Remaining borrowing capacity | $ 46,111 | ||||||||||||||||||||||
Debt Payable to Banks | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Cash paid for interest related to debt | 158,299 | 173,133 | $ 177,717 | ||||||||||||||||||||
2016 New Senior Notes, Combined [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Issuance Costs, Gross | $ 39,523 | ||||||||||||||||||||||
Borrowings on Senior Notes | $ 1,773,000 | ||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | 100.00% | |||||||||||||||||||||
2016 New Senior Notes, Combined [Member] | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Issuance Costs Amortization Period, In Years | 8 years | 8 years | |||||||||||||||||||||
2016 New Senior Notes, Combined [Member] | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Issuance Costs Amortization Period, In Years | 10 years | 10 years | |||||||||||||||||||||
4.875% Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 900,000 | $ 900,000 | 900,000 | ||||||||||||||||||||
Interest rate | 4.875% | 4.88% | 4.875% | ||||||||||||||||||||
4.625% Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 900,000 | $ 900,000 | 900,000 | ||||||||||||||||||||
Interest rate | 4.625% | 4.63% | 4.625% | ||||||||||||||||||||
3.50% Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | € 500,000 | $ 610,724 | 558,847 | € 500,000 | |||||||||||||||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||||||
Proceeds from Issuance of Debt | € | € 492,500 | ||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | 100.00% | |||||||||||||||||||||
Revolving Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 0 | 0 | |||||||||||||||||||||
Revolving Loan Facility Draw Down | $ 630,000 | ||||||||||||||||||||||
Revolving Loan Facility Repayment | $ 490,000 | ||||||||||||||||||||||
Interest rate | 0.00% | ||||||||||||||||||||||
Revolving Loan Facility | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Commitment fee percentage | 0.25% | 0.25% | |||||||||||||||||||||
Revolving Loan Facility | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Commitment fee percentage | 0.40% | 0.40% | |||||||||||||||||||||
Revolving Loan Facility | Senior Secured Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Trade letters of credit issued | $ 4,176 | ||||||||||||||||||||||
Remaining borrowing capacity | $ 995,824 | ||||||||||||||||||||||
LIBOR Based Loan | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 1.00% | ||||||||||||||||||||||
LIBOR Based Loan | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 2.00% | ||||||||||||||||||||||
Base Rate Loan | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 0.00% | ||||||||||||||||||||||
Base Rate Loan | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 1.00% | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | 0.25% | |||||||||||||||||||||
Senior Secured Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest Coverage Ratio | 3 | 3 | |||||||||||||||||||||
Permitted Acquisition Amount for Increase Leverage Ratio | $ 200,000 | ||||||||||||||||||||||
Leverage Ratio After Permitted Acquisition | 5 | 5 | |||||||||||||||||||||
Capitalized debt issuance cost | $ 11,935 | ||||||||||||||||||||||
Senior Secured Credit Facility | Amended Covenant Period [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest Coverage Ratio | 3 | ||||||||||||||||||||||
Minimum Last Twelve Months EBITDA Covenant | $ 625,000 | $ 445,000 | $ 505,000 | ||||||||||||||||||||
Senior Secured Credit Facility | Subsequent Event | Amended Covenant Period [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest Coverage Ratio | 2.25 | 2 | |||||||||||||||||||||
Minimum Last Twelve Months EBITDA Covenant | $ 505,000 | $ 435,000 | |||||||||||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range One | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable commitment fee margin | 0.40% | 0.40% | |||||||||||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range Two | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable commitment fee margin | 0.30% | 0.30% | |||||||||||||||||||||
Senior Secured Credit Facility | Leverage Ratio Range Three | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable commitment fee margin | 0.25% | 0.25% | |||||||||||||||||||||
Senior Secured Credit Facility | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Leverage Ratio | 2.25 | ||||||||||||||||||||||
Senior Secured Credit Facility | Minimum | Amended Covenant Period [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Minimum Liquidity Covenant | $ 300,000 | ||||||||||||||||||||||
Senior Secured Credit Facility | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Leverage Ratio | 4.50 | ||||||||||||||||||||||
Senior Secured Credit Facility | Maximum | Amended Covenant Period [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Minimum Liquidity Covenant | $ 400,000 | ||||||||||||||||||||||
Accounts Receivable Securitization Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | 0 | 0 | |||||||||||||||||||||
Remaining borrowing capacity | $ 7,985 | ||||||||||||||||||||||
Interest rate | 0.00% | ||||||||||||||||||||||
Trade accounts receivable less allowances | $ 7,985 | ||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 225,000 | 225,000 | 300,000 | $ 300,000 | $ 225,000 | ||||||||||||||||||
Australian Term A-1 Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 200,000 | ||||||||||||||||||||||
Australian Revolving Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 0 | 0 | |||||||||||||||||||||
Interest rate | 0.00% | ||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 65,000 | ||||||||||||||||||||||
Australian Revolving Loan Facility | Bilateral Cash Advance [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | ||||||||||||||||||||||
Australian Revolving Loan Facility | Bank Overdraft [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000 | ||||||||||||||||||||||
Australian Revolving Loan Facility | Bank Guarantee [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||||||||||||||||||||
European Revolving Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 0 | 110,914 | |||||||||||||||||||||
Interest rate | 0.00% | ||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 100,000 | ||||||||||||||||||||||
Voluntary Minimum Prepayment Principal Amount | € | € 5,000 | ||||||||||||||||||||||
Voluntary Prepayment Principal Amount, Increments above Minimum | € | € 1,000 | ||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term Loans Borrowing Capacity | 325,750 | ||||||||||||||||||||||
Term Loan A | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 625,000 | 625,000 | |||||||||||||||||||||
Term Loans Borrowing Capacity | 144,375 | ||||||||||||||||||||||
Annual repayment percentage | 1.25% | 1.25% | |||||||||||||||||||||
Interest rate | 2.10% | ||||||||||||||||||||||
Term Loan B | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 300,000 | 300,000 | |||||||||||||||||||||
Term Loans Borrowing Capacity | $ 181,375 | ||||||||||||||||||||||
Debt Instrument, Periodic Payment, Percent of Original Borrowing | 0.25% | 0.25% | |||||||||||||||||||||
Excess cash flow prepayment | $ 238,936 | ||||||||||||||||||||||
Interest rate | 1.90% | ||||||||||||||||||||||
6.375% Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 6.375% | ||||||||||||||||||||||
5.375% Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term Debt | $ 700,000 | $ 0 | |||||||||||||||||||||
Interest rate | 5.375% | 5.38% | |||||||||||||||||||||
Net proceeds from sale of 5.375% Senior Notes | $ 691,250 | ||||||||||||||||||||||
Payments of debt issuance costs | $ 12,223 | ||||||||||||||||||||||
5.375% Senior Notes | Subsequent Event | Redemption with a make-whole premium [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||||||||||||||
5.375% Senior Notes | Subsequent Event | Redemption with a portion of net proceeds from equity offerings [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Redemption Price, Percentage of Principal Amount Redeemed | 105.375% | ||||||||||||||||||||||
5.375% Senior Notes | Subsequent Event | Redemption due to a change of control of the Company [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Redemption Price, Percentage of Principal Amount Redeemed | 101.00% | ||||||||||||||||||||||
5.375% Senior Notes | Maximum | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percent of notes reedemable with a portion of net proceeds from equity offerings | 0.40 | ||||||||||||||||||||||
Euro LIBOR | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable rate on base rate | 0.00% | 0.00% | |||||||||||||||||||||
Euro LIBOR | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable rate on base rate | 1.50% | 1.50% | |||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | Term Loan B | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable rate on base rate | 1.75% | 1.75% | |||||||||||||||||||||
Base Rate | Term Loan B | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable rate on base rate | 0.75% | 0.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Commitments And Contingencies Additional Information [Abstract] | |||
Purchase commitments due in 2021 | $ 468,287 | ||
Purchase commitments due in 2022 | 4,758 | ||
Purchase commitments due in 2023 | 5,092 | ||
Royalty expense | 72,876 | $ 105,829 | $ 109,851 |
Minimum amounts due under license agreements, 2021 | 74,535 | ||
Minimum amounts due under license agreements, 2022 | 66,403 | ||
Minimum amounts due under license agreements, 2023 | 47,715 | ||
Minimum amounts due under license agreements, 2024 | 43,927 | ||
Minimum amounts due under license agreements, 2025 | 19,302 | ||
Minimum amounts under license agreements due thereafter | $ 39,850 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Intangible Assets and Goodwill [Line Items] | |||
Amortization expense for intangibles subject to amortization | $ 36,687 | $ 34,937 | $ 36,437 |
Estimated Amortization Expense, 2021 | 33,600 | ||
Estimated Amortization Expense, 2022 | 32,041 | ||
Estimated Amortization Expense, 2023 | 29,300 | ||
Estimated Amortization Expense, 2024 | 23,485 | ||
Estimated Amortization Expense, 2025 | 18,597 | ||
Goodwill, Impairment Loss | 25,173 | ||
Goodwill | 1,255,630 | $ 1,235,711 | $ 1,241,727 |
Hanes European Innerwear - Reporting units at high risk for impairment whose fair value exceeded their carrying value by 20% or less | |||
Intangible Assets and Goodwill [Line Items] | |||
Indefinite-Lived Trademarks | 90,000 | ||
Goodwill | 105,000 | ||
Hanes European Innerwear | |||
Intangible Assets and Goodwill [Line Items] | |||
Impairment charges on certain indefinite-lived trademarks and other intangible assets | 20,319 | ||
U.S. Hosiery | |||
Intangible Assets and Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ 25,173 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | $ 417,507 | $ 394,069 |
Accumulated Amortization | 251,599 | 205,949 |
Net Book Value | 165,908 | 188,120 |
Trademarks and other identifiable intangibles, net | 1,578,017 | 1,520,800 |
Trademarks and brand names | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 37,273 | 36,152 |
Accumulated Amortization | 30,073 | 27,752 |
Net Book Value | 7,200 | 8,400 |
Licensing agreements | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 104,000 | 102,634 |
Accumulated Amortization | 65,811 | 57,942 |
Net Book Value | 38,189 | 44,692 |
Customer and distributor relationships | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 175,247 | 163,831 |
Accumulated Amortization | 92,928 | 71,603 |
Net Book Value | 82,319 | 92,228 |
Computer Software | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 98,049 | 88,296 |
Accumulated Amortization | 60,351 | 46,840 |
Net Book Value | 37,698 | 41,456 |
Other intangibles | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Gross | 2,938 | 3,156 |
Accumulated Amortization | 2,436 | 1,812 |
Net Book Value | 502 | 1,344 |
Trademarks | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 1,379,847 | 1,298,598 |
Perpetual licensing agreements and other | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | $ 32,262 | $ 34,082 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 1,235,711 | $ 1,241,727 |
Goodwill, acquired during period | 221 | |
Impairment | (25,173) | |
Currency translation | 45,092 | (6,237) |
Goodwill, Ending Balance | 1,255,630 | 1,235,711 |
Hanes European Innerwear - Reporting units at high risk for impairment whose fair value exceeded their carrying value by 20% or less | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Ending Balance | 105,000 | |
Innerwear | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 406,853 | 406,853 |
Goodwill, acquired during period | 0 | |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | 406,853 | 406,853 |
Activewear | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 316,384 | 316,384 |
Goodwill, acquired during period | 0 | |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | 316,384 | 316,384 |
International | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 484,801 | 490,817 |
Goodwill, acquired during period | 221 | |
Currency translation | 45,092 | (6,237) |
Goodwill, Ending Balance | 529,893 | 484,801 |
Other | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 27,673 | 27,673 |
Goodwill, acquired during period | 0 | |
Impairment | (25,173) | |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | $ 2,500 | $ 27,673 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Period, net of tax | $ (617,648) | ||
Total other comprehensive income (loss), net of tax | 50,689 | $ (42,965) | $ (63,736) |
Stranded tax related to U.S. pension plan | 0 | ||
Ending Period, net of tax | (566,959) | (617,648) | |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | (157,138) | (149,985) | |
Amounts reclassified from accumulated other comprehensive loss, before tax | 0 | 0 | |
Current-period other comprehensive income (loss) activity, before tax | 104,318 | (7,153) | |
Total other comprehensive income (loss), before Tax | 104,318 | (7,153) | |
Ending Balance, before tax | (52,820) | (157,138) | (149,985) |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | 4,786 | 21,814 | |
Amounts reclassified from accumulated other comprehensive loss, before tax | (15,681) | (28,931) | |
Current-period other comprehensive income (loss) activity, before tax | (15,643) | 11,903 | |
Total other comprehensive income (loss), before Tax | (31,324) | (17,028) | |
Ending Balance, before tax | (26,538) | 4,786 | 21,814 |
Defined Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | (629,360) | (595,307) | |
Amounts reclassified from accumulated other comprehensive loss, before tax | 23,009 | 20,121 | |
Current-period other comprehensive income (loss) activity, before tax | (62,379) | (54,174) | |
Total other comprehensive income (loss), before Tax | (39,370) | (34,053) | |
Ending Balance, before tax | (668,730) | (629,360) | (595,307) |
Income Taxes | |||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | |||
Beginning Balance, tax | 164,064 | 227,611 | |
Amounts reclassified from accumulated other comprehensive loss, tax | (1,654) | 2,012 | |
Current-period other comprehensive income (loss) activity, tax | 18,719 | 13,257 | |
Total other comprehensive income (loss), tax | 17,065 | 15,269 | |
Stranded tax related to U.S. pension plan, tax | (78,816) | ||
Ending Balance, tax | 181,129 | 164,064 | 227,611 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Period, net of tax | (617,648) | (495,867) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 5,674 | (6,798) | |
Current-period other comprehensive income (loss) activity, net of tax | 45,015 | (36,167) | |
Total other comprehensive income (loss), net of tax | 50,689 | (42,965) | (63,736) |
Stranded tax related to U.S. pension plan | (78,816) | ||
Ending Period, net of tax | $ (566,959) | $ (617,648) | $ (495,867) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ 1,676,036 | $ 1,191,553 | $ 1,105,767 | $ 842,730 | $ 1,044,262 | $ 1,149,934 | $ 1,085,404 | $ 967,993 | $ 4,816,086 | $ 4,247,593 | $ 4,150,736 |
Other expenses | 6,283 | 5,309 | 5,050 | 6,490 | 7,658 | 8,066 | 8,249 | 7,451 | 23,132 | 31,424 | 26,395 |
Income tax expense (benefit) | 161,970 | (22,116) | (33,646) | 1,335 | (9,864) | (30,823) | (25,274) | (13,046) | 107,543 | (79,007) | (103,915) |
Net income (loss) | $ (332,164) | $ 103,278 | $ 161,181 | $ (7,874) | $ 184,986 | $ 185,091 | $ 149,555 | $ 81,088 | (75,579) | 600,720 | 539,666 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income (loss) | (5,674) | 6,798 | (21,977) | ||||||||
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] | |||||||||||
Other expenses | (23,009) | (20,121) | (19,693) | ||||||||
Income tax expense (benefit) | 5,803 | 5,264 | 5,514 | ||||||||
Net income (loss) | (17,206) | (14,857) | (14,179) | ||||||||
Foreign Exchange Contract | Reclassification out of Accumulated Other Comprehensive Income | Gain (loss) on foreign exchange contracts designated as cash flow hedges | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 15,681 | 28,931 | (9,836) | ||||||||
Income tax expense (benefit) | (4,149) | (7,276) | 2,038 | ||||||||
Net income (loss) | $ 11,532 | $ 21,655 | $ (7,798) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Stranded tax related to U.S. pension plan | $ 0 |
Accumulated Other Comprehensive Loss | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Stranded tax related to U.S. pension plan | $ (78,816) |
Financial Instruments and Ris_3
Financial Instruments and Risk Management Additional Information (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Jul. 10, 2019EUR (€)numberOfCrossCurrencySwaps | |
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 617,912 | $ 652,423 | |
Amount expected to be reclassified into earnings during the next twelve months | $ 24,263 | ||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 16 months | ||
Cross-currency Swap Contract | |||
Derivative [Line Items] | |||
Number of cross currency swaps | numberOfCrossCurrencySwaps | 2 | ||
Derivative, Notional Amount | $ 335,940 | $ 335,940 | € 300,000 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Derivatives, Fair Value [Line Items] | ||
Net fair value of derivative assets and liabilities | $ (51,428) | $ 8,538 |
Assets, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 3,616 | 11,931 |
Liabilities, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (55,044) | (3,393) |
Foreign Exchange Contract | Other Current Assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 41 | 2,716 |
Foreign Exchange Contract | Other Current Assets | Non-hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 2,657 | 5,314 |
Foreign Exchange Contract | Accrued liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (17,645) | (2,246) |
Foreign Exchange Contract | Accrued liabilities | Non-hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (18,683) | (1,147) |
Foreign Exchange Contract | Other noncurrent liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (2,190) | 0 |
Cross-currency Swap Contract | Other Current Assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 918 | 926 |
Cross-currency Swap Contract | Other noncurrent assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | 2,975 |
Cross-currency Swap Contract | Other noncurrent liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | $ (16,526) | $ 0 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management Effect of Cash Flow Hedge Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Cost of sales | $ 1,676,036 | $ 1,191,553 | $ 1,105,767 | $ 842,730 | $ 1,044,262 | $ 1,149,934 | $ 1,085,404 | $ 967,993 | $ 4,816,086 | $ 4,247,593 | $ 4,150,736 |
Foreign Exchange Contract | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI | (15,643) | 11,903 | 37,439 | ||||||||
Foreign Exchange Contract | Cost of sales | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 15,681 | $ 28,931 | $ (9,836) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management Effect of Net Investment Hedge Instruments (Details) € in Thousands, $ in Thousands | Jul. 10, 2019EUR (€) | Jan. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 30, 2017 | Jul. 01, 2017 | Oct. 01, 2016 | Jul. 02, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded | $ 44,115 | $ 43,868 | $ 41,659 | $ 36,849 | $ 40,907 | $ 43,091 | $ 46,522 | $ 48,059 | $ 166,491 | $ 178,579 | $ 194,675 | |||||
4.625% Senior Notes | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Interest Rate on Senior Notes Issued | 4.63% | 4.63% | 4.625% | |||||||||||||
3.50% Senior Notes | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Interest Rate on Senior Notes Issued | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||
Euro-denominated Long-term Debt [Member] | 3.50% Senior Notes | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Interest Rate on Senior Notes Issued | 3.50% | 3.50% | ||||||||||||||
Notional Amount of Nonderivative Instruments | € 500,000 | $ 610,724 | 558,847 | |||||||||||||
Cross-currency Swap Contract | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Cross-Currency Swap Contract - Fixed Interest Rate | 2.3215% | |||||||||||||||
Cross-currency Swap Contract | Interest expense, net | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Amount of Gain (Loss) Recognized in Income | $ 7,637 | 3,613 | 0 | |||||||||||||
Cross-currency Swap Contract | 4.625% Senior Notes | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Interest Rate on Senior Notes Issued | 4.625% | 4.625% | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Amount of Gain (Loss) Recognized in AOCI on Net Investment Hedges | $ (51,013) | 2,178 | 0 | |||||||||||||
Accumulated Other Comprehensive Loss | Euro-denominated Long-term Debt [Member] | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Amount of Gain (Loss) Recognized in AOCI | (36,609) | (23) | 0 | |||||||||||||
Accumulated Other Comprehensive Loss | Cross-currency Swap Contract | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Amount of Gain (Loss) Recognized in AOCI | $ (14,404) | $ 2,201 | $ 0 |
Effect of Mark to Market Hedge
Effect of Mark to Market Hedge Derivative Instruments (Details) - Foreign Exchange Contract - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income | $ (21,899) | $ (32,882) | $ 17,508 |
Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income | (19,870) | (31,809) | 16,782 |
Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income | $ (2,029) | $ (1,073) | $ 726 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | $ 923,147 | $ 867,144 | $ 786,612 |
Net fair value of derivative assets and liabilities | (51,428) | 8,538 | |
Carrying value of debt | 4,035,724 | 3,394,761 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 246,081 | 248,388 | |
Net fair value of derivative assets and liabilities | (51,428) | 8,538 | |
Deferred compensation plan liability | (21,878) | (31,221) | |
Net effect of financial asset less financial liability | 849,841 | 844,461 | |
U.S. Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 164,802 | 162,455 | |
Foreign Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 39,696 | 34,224 | |
Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 24,862 | 41,356 | |
Cash and Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 13,890 | 7,382 | |
Insurance contracts | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 2,831 | 2,971 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 243,250 | 245,417 | |
Net fair value of derivative assets and liabilities | 0 | 0 | |
Deferred compensation plan liability | 0 | 0 | |
Net effect of financial asset less financial liability | 243,250 | 245,417 | |
Fair Value, Inputs, Level 1 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 164,802 | 162,455 | |
Fair Value, Inputs, Level 1 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 39,696 | 34,224 | |
Fair Value, Inputs, Level 1 | Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 24,862 | 41,356 | |
Fair Value, Inputs, Level 1 | Cash and Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 13,890 | 7,382 | |
Fair Value, Inputs, Level 1 | Insurance contracts | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of debt | 4,230,985 | 3,560,623 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 2,831 | 2,971 | |
Net fair value of derivative assets and liabilities | (51,428) | 8,538 | |
Deferred compensation plan liability | (21,878) | (31,221) | |
Net effect of financial asset less financial liability | (70,475) | (19,712) | |
Fair Value, Inputs, Level 2 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 2 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 2 | Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 2 | Cash and Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 2 | Insurance contracts | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 2,831 | 2,971 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
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, Inputs, Level 3 | U.S. Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 3 | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 3 | Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 3 | Cash and Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Inputs, Level 3 | Insurance contracts | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 677,066 | 618,756 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Hedge Funds | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 375,027 | 350,270 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Foreign Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 108,357 | 101,299 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 127,370 | 94,384 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Real Estate | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 48,671 | 55,067 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Commodities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 17,641 | 17,736 | |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 2,698 | 8,030 | |
Total derivative liabilities | (38,518) | (3,393) | |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | 0 | |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 2,698 | 8,030 | |
Total derivative liabilities | (38,518) | (3,393) | |
Foreign Exchange Contract | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | 0 | |
Cross-currency Swap Contract | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 918 | 3,901 | |
Total derivative liabilities | (16,526) | ||
Cross-currency Swap Contract | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | ||
Cross-currency Swap Contract | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 918 | 3,901 | |
Total derivative liabilities | (16,526) | ||
Cross-currency Swap Contract | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | $ 0 | |
Total derivative liabilities | $ 0 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Defined Benefit Pension Plans Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Loss [Abstract] | |||
Service cost | $ 2,676 | $ 2,892 | $ 2,776 |
Interest cost | 33,845 | 43,670 | 40,208 |
Expected return on assets | (42,377) | (44,697) | (45,280) |
Curtailments | 2 | 0 | (186) |
Settlement cost | 727 | 115 | 42 |
Amortization of: | |||
Prior service cost | (6) | (6) | (6) |
Net actuarial loss | 22,331 | 20,127 | 19,699 |
Net periodic benefit cost | 17,198 | 22,101 | 17,253 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Net (gain) loss | 38,557 | 34,038 | (20,965) |
Prior service credit | 6 | 6 | 6 |
Total (gain) loss recognized in other comprehensive income (loss) | 38,563 | 34,044 | (20,959) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 55,761 | $ 56,145 | $ (3,706) |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Funded Status of Company's Defined Benefit Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Benefit obligation: | |||
Beginning of year | $ 1,267,651 | $ 1,164,518 | |
Service cost | 2,676 | 2,892 | $ 2,776 |
Interest cost | 33,845 | 43,670 | 40,208 |
Benefits paid | (61,849) | (66,450) | |
Curtailments | (86) | 0 | |
Settlements | (3,524) | (1,255) | |
Impact of exchange rate change | 7,048 | (286) | |
Actuarial loss | 105,366 | 124,577 | |
Other | (11) | (15) | |
End of year | 1,351,116 | 1,267,651 | 1,164,518 |
Fair value of plan assets: | |||
Beginning of year | 867,144 | 786,612 | |
Actual return on plan assets | 86,664 | 115,210 | |
Employer contributions | 33,115 | 32,476 | |
Benefits paid | 61,849 | 66,450 | |
Settlements | (3,524) | (1,255) | |
Impact of exchange rate change | 1,608 | 566 | |
Other | (11) | (15) | |
End of year | 923,147 | 867,144 | $ 786,612 |
Funded status | $ (427,969) | $ (400,507) |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans - Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Disclosure Defined Benefit Pension Plans Accumulated Benefit Obligation And Fair Value Of Plan Assets With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | |||
Benefit obligation | $ 1,351,116 | $ 1,267,651 | $ 1,164,518 |
Plans with benefit obligation in excess of plan assets: | |||
Benefit obligation | 1,319,523 | 1,239,077 | |
Fair value of plan assets | $ 891,569 | $ 837,554 |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans - Amounts Recognized in Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Disclosure Defined Benefit Pension Plans Amounts Recognized In Companys Consolidated Balance Sheets [Abstract] | ||
Noncurrent assets | $ 116 | $ 1,016 |
Current liabilities | (5,617) | (3,001) |
Noncurrent liabilities | (422,468) | (398,522) |
Accumulated other comprehensive loss | $ (670,064) | $ (631,501) |
Defined Benefit Pension Plans_5
Defined Benefit Pension Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Disclosure Defined Benefit Pension Plans Amounts Recognized In Accumulated Other Comprehensive Loss [Abstract] | ||
Prior service cost | $ (145) | $ (151) |
Actuarial loss | 670,209 | 631,652 |
Accumulated other comprehensive loss | $ 670,064 | $ 631,501 |
Defined Benefit Pension Plans_6
Defined Benefit Pension Plans - Weighted Average Actuarial Assumptions Used in Measuring Net Periodic Benefit Cost and Plan Obligation (Detail) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net periodic benefit cost: | |||
Discount rate | 3.16% | 4.24% | 3.60% |
Long-term rate of return on plan assets | 4.96% | 5.79% | 5.32% |
Rate of compensation increase | 3.01% | 4.40% | 4.40% |
Interest crediting rate | 5.49% | 5.49% | 5.49% |
Plan obligations: | |||
Discount rate | 2.47% | 3.16% | 4.24% |
Rate of compensation increase | 2.98% | 3.01% | 4.40% |
Interest crediting rate | 5.49% | 5.49% | 5.49% |
Defined Benefit Pension Plans_7
Defined Benefit Pension Plans - Allocation of Pension Plan Assets (Detail) | Jan. 02, 2021 | Dec. 28, 2019 |
Hedge Funds | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 41.00% | 40.00% |
U.S. Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 18.00% | 19.00% |
Debt Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 16.00% | 16.00% |
Foreign Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 16.00% | 16.00% |
Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 5.00% | 6.00% |
Commodities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 2.00% | 2.00% |
Insurance contracts | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 0.00% | 0.00% |
Cash and other | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 2.00% | 1.00% |
Defined Benefit Pension Plans_8
Defined Benefit Pension Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 04, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Target asset allocation period | 5 years | |||
End of year | $ 923,147 | $ 867,144 | $ 786,612 | |
Expected benefit payments, 2021 | 68,238 | |||
Expected benefit payments, 2022 | 67,722 | |||
Expected benefit payments, 2023 | 70,067 | |||
Expected benefit payments, 2024 | 70,339 | |||
Expected benefit payments, 2025 | 71,644 | |||
Expected benefit payments through 2030 | 369,669 | |||
Nonretirement postemployment benefit plans liability | 49,644 | 47,751 | ||
Nonretirement postemployement benefit plans expense | $ 2,086 | $ 1,223 | $ 1,264 | |
Subsequent Event | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Contribution to U.S. Pension Plan | $ 40,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Computed by Applying U.S. Statutory Rate to Income Before Taxes as Reconciled to Actual Provisions (Detail) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Income Taxes Provision For Income Tax Computed By Applying U S Statutory Rate To Income Before Taxes As Reconciled To Actual Provisions [Abstract] | |||
Domestic | 345.70% | (6.50%) | (9.50%) |
Foreign | (245.70%) | 106.50% | 109.50% |
Total | 100.00% | 100.00% | 100.00% |
Tax expense at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
State income tax | 13.30% | 1.10% | (0.30%) |
Tax on actual and planned remittances of foreign earnings | 4.20% | (0.40%) | 9.90% |
Tax on foreign earnings due to U.S. tax reform including measurement period adjustments | 20.90% | 0.00% | (0.50%) |
Revaluation of net deferred tax assets due to U.S. tax reform including measurement period adjustments | 0.00% | 0.00% | (1.20%) |
Tax on foreign earnings (U.S. tax reform - GILTI and FDII) | (1.00%) | 2.20% | 2.30% |
Foreign taxes less than U.S. statutory rate | 29.60% | (11.90%) | (12.30%) |
Statutory stock deduction | (26.80%) | 2.20% | (17.30%) |
Employee benefits | (1.70%) | (0.20%) | (0.10%) |
Change in valuation allowance due to statutory stock deduction | 0.00% | 0.00% | 17.30% |
Other changes in valuation allowance | (12.50%) | 1.80% | (3.90%) |
Tax benefits related to tax basis adjustments in acquired intangibles | 0.00% | (1.70%) | 0.00% |
Increase in unrecognized tax benefits | 0.00% | 0.00% | 0.50% |
Release of unrecognized tax benefit reserves | 10.20% | (0.50%) | 0.00% |
State tax rate change | 0.30% | 0.30% | 0.40% |
Federal and state provision to return | (3.20%) | (2.40%) | (0.20%) |
Nondeductible expenses and tax exempt income, net | 5.60% | 0.00% | 0.00% |
Nondeductible impairment charges | (2.90%) | 0.00% | 0.00% |
Domestic income tax credits | 1.70% | 0.00% | 0.00% |
Other, net | 0.00% | 0.10% | 0.50% |
Taxes at effective worldwide tax rates | 58.70% | 11.60% | 16.10% |
Income taxes - Current and Defe
Income taxes - Current and Deferred Tax Provisions (Benefits) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Income Taxes Current And Deferred Tax Provisions Benefits [Abstract] | |||||||||||
Domestic, current | $ (9,869) | $ (20,548) | $ (16,746) | ||||||||
Foreign, current | 57,285 | 67,037 | 86,006 | ||||||||
State, current | 6,256 | (9,299) | 8,044 | ||||||||
Current Total | 53,672 | 37,190 | 77,304 | ||||||||
Deferred, Domestic | (136,221) | 12,164 | 61,202 | ||||||||
Deferred, Foreign | 27,978 | 5,599 | (42,446) | ||||||||
Deferred, State | (52,972) | 24,054 | 7,855 | ||||||||
Deferred, Total | (161,215) | 41,817 | 26,611 | ||||||||
Total, Domestic | (146,090) | (8,384) | 44,456 | ||||||||
Total, Foreign | 85,263 | 72,636 | 43,560 | ||||||||
Total, State | (46,716) | 14,755 | 15,899 | ||||||||
Total, Current and deferred tax provisions (benefits) | $ (161,970) | $ 22,116 | $ 33,646 | $ (1,335) | $ 9,864 | $ 30,823 | $ 25,274 | $ 13,046 | $ (107,543) | $ 79,007 | $ 103,915 |
Income Taxes - Cash Tax Payment
Income Taxes - Cash Tax Payments Made by Company Primarily in Foreign Jurisdictions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Income Taxes Cash Tax Payments Made By Company Primarily In Foreign Jurisdictions [Abstract] | |||
Cash payments for income taxes | $ 116,006 | $ 112,477 | $ 94,556 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||||
Nondeductible reserves | $ 0 | $ 1,246 | ||
Inventories | 244,151 | 28,467 | ||
Bad debt allowance | 12,197 | 9,108 | ||
Accrued expenses | 16,099 | 10,305 | ||
Employee benefits | 127,963 | 125,617 | ||
Tax credits | 4,088 | 5,841 | ||
Net operating loss and other tax carryforwards | 317,903 | 332,983 | ||
Leasing | 144,842 | 142,379 | ||
Property and equipment | 1,903 | 0 | ||
Derivatives | 17,156 | 0 | ||
Section 163(j) | 3,519 | 0 | ||
Capitalized research costs | 6,831 | 0 | ||
Other | 2,393 | 5,537 | ||
Gross deferred tax assets | 899,045 | 661,483 | ||
Less valuation allowances | (298,060) | (263,858) | $ (246,290) | $ (142,440) |
Deferred tax assets | 600,985 | 397,625 | ||
Deferred Tax Liabilities, Net [Abstract] | ||||
Property and equipment | 0 | 656 | ||
Derivatives | 0 | 1,525 | ||
Section 481(a) liability | 49,551 | 26,762 | ||
Leasing | 128,547 | 132,559 | ||
Accrued tax on unremitted foreign earnings | 32,888 | 42,653 | ||
Intangibles | 96,141 | 92,577 | ||
Prepaids | 4,553 | 5,583 | ||
Deferred tax liabilities | 311,680 | 302,315 | ||
Net deferred tax assets | $ 289,305 | $ 95,310 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Income from continuing operations before income tax expense | $ (494,134) | $ 125,394 | $ 194,827 | $ (9,209) | $ 194,850 | $ 215,914 | $ 174,829 | $ 94,134 | $ (183,122) | $ 679,727 | $ 643,581 | |
Income tax expense (benefit) | (161,970) | $ 22,116 | $ 33,646 | $ (1,335) | 9,864 | $ 30,823 | $ 25,274 | $ 13,046 | (107,543) | 79,007 | $ 103,915 | |
Accrued tax on unremitted foreign earnings | 32,888 | 42,653 | $ 32,888 | $ 42,653 | ||||||||
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate,EPS | $ 0 | $ 0 | $ 0 | |||||||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 0 | $ 344 | $ 424 | |||||||||
Valuation allowance for deferred tax assets | 298,060 | 263,858 | 298,060 | 263,858 | 246,290 | $ 142,440 | ||||||
Revised disclosures to increase gross deferred tax assets and corresponding valuation allowance | 66,511 | 66,691 | $ 69,838 | |||||||||
Net change in the total valuation allowance, including foreign currency fluctuations | 34,202 | |||||||||||
Net operating loss carryforwards, approximately, for foreign jurisdictions | 1,049,626 | 1,049,626 | ||||||||||
Tax credit carryforwards, Total | 4,088 | 4,088 | ||||||||||
Unremitted foreign earnings not permanently reinvested | 668,000 | 668,000 | ||||||||||
Accrued Income Taxes with respect to foreign earnings the Company intends to remit in the future | 32,888 | 32,888 | ||||||||||
Recognized Reduction Related to Realization of Unrecognized Tax Benefit Resulting From Prior Year Tax Positions | 18,385 | 44,597 | 3,128 | |||||||||
Recognized Benefit Related to Realization of Unrecognized Tax Benefit Resulting from Expiration of Statutes of Limitations | 16,655 | 4,016 | 1,000 | |||||||||
Reduction of unrecognized tax benefits | 12,249 | $ 12,249 | ||||||||||
Unrecognized tax benefits increase or decrease | 12 months | |||||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 43,942 | $ 43,942 | ||||||||||
Interest and penalties classified as income tax expense in the Consolidated Statement of Income | (5,003) | (1,792) | 5,744 | |||||||||
Interest and penalties accrued related to unrecognized tax benefits | 5,280 | $ 9,648 | 5,280 | 9,648 | ||||||||
Tax Cuts and Jobs Act | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Income tax expense (benefit) | 45,203 | |||||||||||
Federal | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Net operating loss carryforwards | 22,617 | 22,617 | ||||||||||
State | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Net operating loss carryforwards | 781,628 | 781,628 | ||||||||||
Operating loss carryforward | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Valuation allowance for deferred tax assets | 12,367 | 12,367 | ||||||||||
Operating loss carryforward | Foreign Tax Authority | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Valuation allowance for deferred tax assets | 249,184 | 249,184 | ||||||||||
Net change in the total valuation allowance, including foreign currency fluctuations | 47,770 | |||||||||||
Operating loss carryforward | Federal and State | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Net change in the total valuation allowance, including foreign currency fluctuations | 8,020 | |||||||||||
Operating loss carryforward | Other foreign deferred tax assets | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Net change in the total valuation allowance, including foreign currency fluctuations | 5,548 | |||||||||||
Other foreign deferred tax assets | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Valuation allowance for deferred tax assets | $ 36,509 | 36,509 | ||||||||||
Charged to other accounts | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Net change in the total valuation allowance, including foreign currency fluctuations | 10,244 | $ 3,897 | 17,672 | |||||||||
Recognized Reduction Related to Realization of Unrecognized Tax Benefit Resulting From Prior Year Tax Positions | 18,385 | |||||||||||
Domestic Deferred Tax Assets | Tax Cuts and Jobs Act | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Income tax expense (benefit) | 7,627 | |||||||||||
One-time provisional transition | ||||||||||||
Unrecognized Tax Benefits [Line Items] | ||||||||||||
Income tax expense (benefit) | $ (38,315) | $ (2,925) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Detail) $ in Thousands | Jan. 02, 2021USD ($) |
Disclosure Income Taxes Net Operating Loss Carryforwards [Abstract] | |
2021 | $ 7,108 |
2022 | 3,588 |
2023 | 12,589 |
2024 | 6,452 |
2025 | 6,134 |
Thereafter | $ 1,013,755 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disclosure Income Taxes Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized Tax Benefits, Gross | $ 47,786 | $ 79,897 | $ 107,306 | $ 99,469 |
Beginning Balance | 75,493 | 104,454 | 94,906 | |
Additions based on tax positions related to the current year | 3,675 | 2,797 | 2,877 | |
Additions based on tax positions of prior years | 2,698 | 19,585 | 430 | |
Additions based on tax positions related to the acquisition of Bras N Things | 10,911 | |||
Settlements | 0 | (2,730) | (542) | |
Lapse of statute of limitations | (16,655) | (4,016) | (1,000) | |
Reductions for tax positions of prior years | (18,385) | (44,597) | (3,128) | |
Ending Balance | $ 46,826 | $ 75,493 | $ 104,454 |
Income Taxes Summary of changes
Income Taxes Summary of changes in valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Valuation Allowance [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 298,060 | $ 263,858 | $ 246,290 | $ 142,440 |
Net change in the total valuation allowance, including foreign currency fluctuations | 34,202 | |||
Charged to expense | ||||
Valuation Allowance [Line Items] | ||||
Net change in the total valuation allowance, including foreign currency fluctuations | 23,958 | 13,671 | 52,135 | |
Charged to other accounts | ||||
Valuation Allowance [Line Items] | ||||
Net change in the total valuation allowance, including foreign currency fluctuations | $ 10,244 | $ 3,897 | 17,672 | |
Charged to retained earnings upon adoption of ASU 2016-16 | ||||
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Tax Deferred Expense, Other | 34,043 | |||
Net change in the total valuation allowance, including foreign currency fluctuations | $ 34,043 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2021 | Dec. 01, 2020 | Sep. 01, 2020 | Jun. 09, 2020 | Mar. 10, 2020 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Feb. 06, 2020 | Apr. 30, 2016 |
Class of Stock [Line Items] | ||||||||||
Common Stock, shares outstanding | 348,802,220 | 362,449,037 | ||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||
Preferred stock, shares issued | 0 | 0 | ||||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Common stock, shares issued | 348,802,220 | 362,449,037 | ||||||||
Common stock repurchased, Cost | $ 200,269 | |||||||||
Quarterly dividends declared, common stock, per share | $ 0.15 | $ 0.15 | $ 0.15 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||
2016 Share Repurchase Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock, Authority granted | 40,000,000 | |||||||||
2020 Share Repurchase Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock, Authority granted | 40,000,000 | |||||||||
Common Stock, Repurchased | 14,464,000 | |||||||||
Shares Acquired Weighted Average Cost Per Share | $ 13.83 | |||||||||
Common stock repurchased, Cost | $ 200,269 | |||||||||
Remaining number of shares authorized to be repuchased | 25,536,000 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Quarterly dividends declared, common stock, per share | $ 0.15 |
Business Segment Information -
Business Segment Information - Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Net sales | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | $ 6,664,350 | $ 6,966,923 | $ 6,803,955 |
Innerwear | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Net sales | 2,978,009 | 2,302,632 | 2,379,675 | ||||||||
Activewear | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Net sales | 1,184,413 | 1,854,704 | 1,792,280 | ||||||||
International | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Net sales | 2,309,754 | 2,529,375 | 2,344,115 | ||||||||
Other | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Net sales | $ 192,174 | $ 280,212 | $ 287,885 |
Business Segment Information _2
Business Segment Information - Segment Operating Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment operating profit: | |||||||||||
General corporate expenses | $ (238,931) | $ (218,770) | $ (190,090) | ||||||||
Restructuring and other action-related charges | (805,787) | (63,486) | (80,162) | ||||||||
Amortization of intangibles | (36,687) | (34,937) | (36,437) | ||||||||
Operating profit | $ (443,736) | $ 174,571 | $ 241,536 | $ 34,130 | $ 243,415 | $ 267,071 | $ 229,600 | $ 149,644 | 6,501 | 889,730 | 864,651 |
Other expenses | (6,283) | (5,309) | (5,050) | (6,490) | (7,658) | (8,066) | (8,249) | (7,451) | (23,132) | (31,424) | (26,395) |
Interest expense, net | (44,115) | (43,868) | (41,659) | (36,849) | (40,907) | (43,091) | (46,522) | (48,059) | (166,491) | (178,579) | (194,675) |
Income from continuing operations before income tax expense | $ (494,134) | $ 125,394 | $ 194,827 | $ (9,209) | $ 194,850 | $ 215,914 | $ 174,829 | $ 94,134 | (183,122) | 679,727 | 643,581 |
Operating Profit (Loss) | |||||||||||
Segment operating profit: | |||||||||||
Restructuring and other action-related charges | (805,787) | (63,486) | (80,198) | ||||||||
Innerwear | |||||||||||
Segment operating profit: | |||||||||||
Operating profit | 718,923 | 515,991 | 526,831 | ||||||||
Activewear | |||||||||||
Segment operating profit: | |||||||||||
Operating profit | 67,643 | 281,319 | 267,428 | ||||||||
International | |||||||||||
Segment operating profit: | |||||||||||
Operating profit | 315,365 | 384,784 | 351,769 | ||||||||
Other | |||||||||||
Segment operating profit: | |||||||||||
Operating profit | (14,025) | 24,829 | 25,348 | ||||||||
Operating Segments | |||||||||||
Segment operating profit: | |||||||||||
Operating profit | $ 1,087,906 | $ 1,206,923 | $ 1,171,376 |
Business Segment Information _3
Business Segment Information - Assets (Detail) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Assets: | ||
Total assets | $ 7,698,874 | $ 7,353,986 |
Innerwear | ||
Assets: | ||
Total assets | 1,198,721 | 1,352,773 |
Activewear | ||
Assets: | ||
Total assets | 1,021,761 | 1,045,567 |
International | ||
Assets: | ||
Total assets | 1,489,305 | 1,578,251 |
Other | ||
Assets: | ||
Total assets | 172,270 | 197,312 |
Operating Segments | ||
Assets: | ||
Total assets | 3,882,057 | 4,173,903 |
Corporate Segment | ||
Assets: | ||
Total assets | $ 3,816,817 | $ 3,180,083 |
Business Segment Information _4
Business Segment Information - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Depreciation and amortization expense: | |||
Depreciation and amortization expense | $ 132,446 | $ 130,967 | $ 131,796 |
Innerwear | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 27,407 | 30,408 | 33,348 |
Activewear | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 23,621 | 23,804 | 18,768 |
International | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 35,898 | 35,618 | 37,642 |
Other | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 5,520 | 6,200 | 5,601 |
Operating Segments | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 92,446 | 96,030 | 95,359 |
Corporate Segment | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | $ 40,000 | $ 34,937 | $ 36,437 |
Business Segment Information _5
Business Segment Information - Additions to Long-Lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | $ 53,735 | $ 101,084 | $ 86,293 |
Innerwear | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | 15,061 | 16,852 | 20,459 |
Activewear | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | 8,574 | 19,902 | 16,024 |
International | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | 16,738 | 43,421 | 33,632 |
Other | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | 4,658 | 4,436 | 3,221 |
Operating Segments | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | 45,031 | 84,611 | 73,336 |
Corporate Segment | |||
Capital expenditures: | |||
Payments to Acquire Property, Plant, and Equipment | $ 8,704 | $ 16,473 | $ 12,957 |
Business Segment Information _6
Business Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021USD ($)numberOfSegments | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | $ 805,787 | $ 63,486 | $ 80,162 |
Other Employee Related Liabilities | 10,260 | 7,120 | |
Employee termination and other benefits | 12,212 | ||
Employee termination and other benefits paid | 9,072 | ||
Restructuring and other action-related charges - asset write-down charges as result of COVID-19 | $ 77,352 | ||
Number of Operating Segments | numberOfSegments | 3 | ||
Cost of sales | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | $ 708,951 | 58,267 | 38,355 |
Employee termination and other benefits | 2,721 | ||
Other expense | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 36 | ||
Selling, general and administrative expenses | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 96,836 | 5,219 | 41,843 |
Employee termination and other benefits | 9,491 | ||
Operating Profit (Loss) | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 805,787 | 63,486 | 80,198 |
Operating Profit (Loss) | Supply chain actions | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 23,538 | 53,651 | 0 |
Operating Profit (Loss) | Program exit costs | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 9,856 | 4,616 | 0 |
Operating Profit (Loss) | Other restructuring costs | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 18,219 | 5,219 | 39,529 |
Operating Profit (Loss) | Supply chain re-startup charges related to COVID-19 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 48,893 | 0 | 0 |
Operating Profit (Loss) | Bad debt charges related to COVID-19 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 11,375 | 0 | 0 |
Operating Profit (Loss) | Inventory reserve charges related to COVID-19 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 20,485 | 0 | 0 |
Operating Profit (Loss) | Intangible assets and goodwill impairment charges related to COVID-19 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 45,492 | 0 | 0 |
Operating Profit (Loss) | Inventory SKU rationalization | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 210,904 | 0 | 0 |
Operating Profit (Loss) | PPE inventory write-off | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 373,767 | 0 | 0 |
Operating Profit (Loss) | PPE vendor commitments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 26,400 | 0 | 0 |
Operating Profit (Loss) | Write-off of acquisition tax asset | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 16,858 | 0 | 0 |
Operating Profit (Loss) | Hanes Europe Innerwear | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 0 | 0 | 26,403 |
Operating Profit (Loss) | Hanes Australasia | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 0 | $ 0 | $ 14,266 |
Accrued liabilities and other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Other Employee Related Liabilities | 9,595 | ||
Other noncurrent liabilities | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Other Employee Related Liabilities | $ 665 |
Business Segment Information _7
Business Segment Information - Additional Revenue Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Worldwide sales by product category | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | $ 6,664,350 | $ 6,966,923 | $ 6,803,955 |
Innerwear Product Category | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Worldwide sales by product category | 4,622,653 | 4,120,284 | 4,253,338 | ||||||||
Activewear Product Category | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Worldwide sales by product category | $ 2,041,697 | $ 2,846,639 | $ 2,550,617 | ||||||||
Wal-Mart | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
External customer's percentage of total sales | 15.00% | 14.00% | 16.00% | ||||||||
Target | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
External customer's percentage of total sales | 11.00% | 12.00% |
Geographic Area Information - S
Geographic Area Information - Sales and Long Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, net | $ 545,771 | $ 587,896 | $ 545,771 | $ 587,896 | $ 607,688 | ||||||
Net sales | 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | 6,664,350 | 6,966,923 | 6,803,955 |
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, net | 351,841 | 383,219 | 351,841 | 383,219 | 402,370 | ||||||
Net sales | 4,544,973 | 4,659,772 | 4,658,346 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, net | 92,590 | 104,041 | 92,590 | 104,041 | 104,305 | ||||||
Net sales | 1,088,541 | 1,247,989 | 1,129,605 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, net | 100,687 | 99,560 | 100,687 | 99,560 | 99,835 | ||||||
Net sales | 1,005,590 | 1,023,639 | 987,016 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, net | $ 653 | $ 1,076 | 653 | 1,076 | 1,178 | ||||||
Net sales | $ 25,246 | $ 35,523 | $ 28,988 |
Quarterly Financial Data - Quar
Quarterly Financial Data - Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,800,843 | $ 1,808,266 | $ 1,738,779 | $ 1,316,462 | $ 1,751,005 | $ 1,866,967 | $ 1,760,927 | $ 1,588,024 | $ 6,664,350 | $ 6,966,923 | $ 6,803,955 |
Cost of sales | 1,676,036 | 1,191,553 | 1,105,767 | 842,730 | 1,044,262 | 1,149,934 | 1,085,404 | 967,993 | 4,816,086 | 4,247,593 | 4,150,736 |
Gross profit | 124,807 | 616,713 | 633,012 | 473,732 | 706,743 | 717,033 | 675,523 | 620,031 | 1,848,264 | 2,719,330 | 2,653,219 |
Selling, general and administrative expenses | 568,543 | 442,142 | 391,476 | 439,602 | 463,328 | 449,962 | 445,923 | 470,387 | 1,841,763 | 1,829,600 | 1,788,568 |
Operating profit (loss) | (443,736) | 174,571 | 241,536 | 34,130 | 243,415 | 267,071 | 229,600 | 149,644 | 6,501 | 889,730 | 864,651 |
Other expenses | 6,283 | 5,309 | 5,050 | 6,490 | 7,658 | 8,066 | 8,249 | 7,451 | 23,132 | 31,424 | 26,395 |
Interest expense, net | 44,115 | 43,868 | 41,659 | 36,849 | 40,907 | 43,091 | 46,522 | 48,059 | 166,491 | 178,579 | 194,675 |
Income (loss) before income tax expense | (494,134) | 125,394 | 194,827 | (9,209) | 194,850 | 215,914 | 174,829 | 94,134 | (183,122) | 679,727 | 643,581 |
Income tax expense (benefit) | (161,970) | 22,116 | 33,646 | (1,335) | 9,864 | 30,823 | 25,274 | 13,046 | (107,543) | 79,007 | 103,915 |
Net income (loss) | $ (332,164) | $ 103,278 | $ 161,181 | $ (7,874) | $ 184,986 | $ 185,091 | $ 149,555 | $ 81,088 | $ (75,579) | $ 600,720 | $ 539,666 |
Earnings (loss) per share: | |||||||||||
Basic | $ (0.95) | $ 0.29 | $ 0.46 | $ (0.02) | $ 0.51 | $ 0.51 | $ 0.41 | $ 0.22 | $ (0.21) | $ 1.65 | $ 1.48 |
Diluted | $ (0.95) | $ 0.29 | $ 0.46 | $ (0.02) | $ 0.51 | $ 0.51 | $ 0.41 | $ 0.22 | $ (0.21) | $ 1.64 | $ 1.48 |