Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001359841 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
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 | ||
Document Financial Statement Error Correction Flag | false | ||
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 | $ 1,582,738,700 | ||
Entity Common Stock, Shares Outstanding | 351,094,094 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference to portions of the registrant’s proxy statement for its 2024 annual meeting of stockholders. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Greensboro, North Carolina |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||||
Net sales | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Cost of sales | 803,158 | 971,309 | 3,740,113 | 4,012,542 | 4,149,541 |
Gross profit | 493,669 | 501,977 | 1,896,410 | 2,221,108 | 2,651,699 |
Selling, general and administrative expenses | 397,572 | 441,642 | 1,607,628 | 1,701,563 | 1,853,971 |
Operating profit | 96,097 | 60,335 | 288,782 | 519,545 | 797,728 |
Other expenses | 7,375 | 3,646 | 38,520 | 9,734 | 53,586 |
Interest expense, net | 69,688 | 49,665 | 275,354 | 157,073 | 163,067 |
Income (loss) from continuing operations before income taxes | 19,034 | 7,024 | (25,092) | 352,738 | 581,075 |
Income tax expense (benefit) | (58,907) | 425,132 | (7,366) | 483,907 | 60,107 |
Income (loss) from continuing operations | (17,726) | (131,169) | 520,968 | ||
Income (loss) from discontinued operations, net of tax | 0 | 3,965 | (443,744) | ||
Net income (loss) | $ 77,941 | $ (418,108) | $ (17,726) | $ (127,204) | $ 77,224 |
Earnings (loss) per share - basic: | |||||
Continuing operations | $ (0.05) | $ (0.37) | $ 1.48 | ||
Discontinued operations | 0 | 0.01 | (1.26) | ||
Net income (loss) | $ 0.22 | $ (1.19) | (0.05) | (0.36) | 0.22 |
Earnings (loss) per share - diluted: | |||||
Continuing operations | (0.05) | (0.37) | 1.48 | ||
Discontinued operations | 0 | 0.01 | (1.26) | ||
Net income (loss) | $ 0.22 | $ (1.19) | $ (0.05) | $ (0.36) | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ (17,726) | $ (127,204) | $ 77,224 |
Other comprehensive income (loss): | |||
Translation adjustments | 15,321 | (94,802) | (81,181) |
Unrealized gain (loss) on qualifying cash flow hedges, net of tax of $1,430, $(226) and $(9,170), respectively | (13,246) | 3,239 | 22,612 |
Unrecognized income from pension and postretirement plans, net of tax of $104, $(650) and $(25,644), respectively | 17,622 | 131,158 | 73,925 |
Total other comprehensive income | 19,697 | 39,595 | 15,356 |
Comprehensive income (loss) | $ 1,971 | $ (87,609) | $ 92,580 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Tax portion of unrealized gain (loss) on qualifying cash flow hedges | $ 1,430 | $ (226) | $ (9,170) |
Tax portion of unrecognized income from pension and postretirement plans | $ 104 | $ (650) | $ (25,644) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 205,501 | $ 238,413 |
Trade accounts receivable, net | 557,729 | 721,396 |
Inventories | 1,368,018 | 1,979,672 |
Other current assets | 144,967 | 178,946 |
Current assets held for sale | 0 | 13,327 |
Total current assets | 2,276,215 | 3,131,754 |
Property, net | 414,366 | 442,404 |
Right-of-use assets | 428,918 | 414,894 |
Trademarks and other identifiable intangibles, net | 1,235,704 | 1,255,693 |
Goodwill | 1,112,744 | 1,108,907 |
Deferred tax assets | 21,954 | 20,162 |
Other noncurrent assets | 150,413 | 130,062 |
Total assets | 5,640,314 | 6,503,876 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 736,252 | 917,481 |
Accrued liabilities and other: | ||
Payroll and employee benefits | 98,521 | 85,392 |
Advertising and promotion | 139,925 | 168,717 |
Other | 240,230 | 243,919 |
Lease liabilities | 110,640 | 114,794 |
Accounts Receivable Securitization Facility | 6,000 | 209,500 |
Current portion of long-term debt | 59,000 | 37,500 |
Current liabilities held for sale | 0 | 13,327 |
Total current liabilities | 1,390,568 | 1,790,630 |
Long-term debt | 3,235,640 | 3,612,077 |
Lease liabilities - noncurrent | 354,015 | 326,644 |
Pension and postretirement benefits | 104,255 | 116,167 |
Other noncurrent liabilities | 136,483 | 260,094 |
Total liabilities | 5,220,961 | 6,105,612 |
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 — 350,137,826 and 349,009,147, respectively | 3,501 | 3,490 |
Additional paid-in capital | 353,367 | 334,676 |
Retained earnings | 554,796 | 572,106 |
Accumulated other comprehensive loss | (492,311) | (512,008) |
Total stockholders’ equity | 419,353 | 398,264 |
Total liabilities and stockholders’ equity | $ 5,640,314 | $ 6,503,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 350,137,826 | 349,009,147 |
Common stock, shares outstanding | 350,137,826 | 349,009,147 |
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 Jan. 02, 2021 | $ 813,958 | $ 3,488 | $ 307,883 | $ 1,069,546 | $ (566,959) |
Beginning Balance, Shares at Jan. 02, 2021 | 348,802,000 | ||||
Net income (loss) | 77,224 | 77,224 | |||
Dividends ($0.60 per common share) | $ (211,510) | (211,510) | |||
Dividends, per common share | $ 0.60 | ||||
Other comprehensive income (loss) | $ 15,356 | 15,356 | |||
Stock-based compensation | 16,290 | 16,290 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,101,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (8,825) | $ 11 | (8,836) | 0 | |
Ending Balance at Jan. 01, 2022 | 702,493 | $ 3,499 | 315,337 | 935,260 | (551,603) |
Ending Balance, Shares at Jan. 01, 2022 | 349,903,000 | ||||
Net income (loss) | (127,204) | (127,204) | |||
Dividends ($0.60 per common share) | $ (212,375) | (212,375) | |||
Dividends, per common share | $ 0.60 | ||||
Other comprehensive income (loss) | $ 39,595 | 39,595 | |||
Stock-based compensation | 23,157 | 23,157 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 683,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (2,384) | $ 7 | (2,391) | 0 | |
Share repurchases, shares | (1,577,000) | ||||
Share repurchases | (25,018) | $ (16) | (1,427) | (23,575) | |
Ending Balance at Dec. 31, 2022 | $ 398,264 | $ 3,490 | 334,676 | 572,106 | (512,008) |
Ending Balance, Shares at Dec. 31, 2022 | 349,009,147 | 349,009,000 | |||
Net income (loss) | $ (17,726) | (17,726) | |||
Other comprehensive income (loss) | 19,697 | 19,697 | |||
Stock-based compensation | 20,304 | 20,304 | |||
Net exercise of stock options, vesting of restricted stock units and other, shares | 1,129,000 | ||||
Net exercise of stock options, vesting of restricted stock units and other | (1,186) | $ 11 | (1,613) | 416 | |
Ending Balance at Dec. 30, 2023 | $ 419,353 | $ 3,501 | $ 353,367 | $ 554,796 | $ (492,311) |
Ending Balance, Shares at Dec. 30, 2023 | 350,137,826 | 350,138,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating activities: | |||
Net income (loss) | $ (17,726) | $ (127,204) | $ 77,224 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Depreciation | 75,268 | 76,294 | 81,669 |
Amortization of acquisition intangibles | 16,569 | 18,204 | 20,390 |
Other amortization | 13,200 | 11,769 | 12,139 |
Impairment of intangible assets and goodwill | 0 | 0 | 163,047 |
Loss on extinguishment of debt | 8,466 | 0 | 43,739 |
(Gain) loss on sale of business and classification of assets held for sale | 3,641 | (3,162) | 312,359 |
Amortization of debt issuance costs and debt discount | 8,939 | 7,300 | 12,305 |
Stock compensation expense | 20,546 | 23,457 | 16,630 |
Deferred taxes | (84,745) | 388,607 | 3,934 |
Other | 610 | 7,511 | (2,084) |
Changes in assets and liabilities: | |||
Accounts receivable | 174,249 | 154,145 | (181,173) |
Inventories | 599,982 | (437,641) | (293,455) |
Other assets | 82,672 | (107,742) | (40,636) |
Accounts payable | (194,602) | (241,557) | 368,753 |
Accrued pension and postretirement benefits | 6,799 | (2,023) | (40,768) |
Accrued liabilities and other | (152,119) | (126,760) | 69,336 |
Net cash from operating activities | 561,749 | (358,802) | 623,409 |
Investing activities: | |||
Capital expenditures | (44,056) | (112,122) | (69,272) |
Purchase of trademarks | 0 | 103,000 | 0 |
Proceeds from sales of assets | 331 | 157 | 2,809 |
Other | 20,242 | (1,463) | 14,008 |
Net cash from investing activities | (23,483) | (216,428) | (52,455) |
Financing activities: | |||
Borrowings on Term Loan Facilities | 891,000 | 0 | 1,000,000 |
Repayments on Term Loan Facilities | (44,250) | (25,000) | (925,000) |
Borrowings on Accounts Receivable Securitization Facility | 2,270,000 | 1,840,389 | 0 |
Repayments on Accounts Receivable Securitization Facility | (2,473,500) | (1,630,889) | 0 |
Borrowings on Revolving Loan Facilities | 1,923,000 | 1,792,000 | 0 |
Repayments on Revolving Loan Facilities | (2,275,500) | (1,439,500) | 0 |
Borrowings on Senior Notes | 600,000 | 0 | 0 |
Repayments on Senior Notes | (1,436,884) | 0 | (700,000) |
Borrowings on notes payable | 0 | 21,454 | 149,287 |
Repayments on notes payable | 0 | (21,713) | (149,739) |
Share repurchases | 0 | (25,018) | 0 |
Cash dividends paid | 0 | (209,312) | (209,484) |
Payments to amend and refinance credit facilities | (31,020) | (3,159) | (43,186) |
Other | (2,921) | (3,423) | (9,898) |
Net cash from financing activities | (580,075) | 295,829 | (888,020) |
Effect of changes in foreign exchange rates on cash | 8,897 | (42,815) | (32,908) |
Change in cash and cash equivalents | (32,912) | (322,216) | (349,974) |
Cash and cash equivalents at beginning of year | 238,413 | 560,629 | 910,603 |
Cash and cash equivalents at end of year | 205,501 | 238,413 | 560,629 |
Balances included in the Consolidated Balance Sheets: | |||
Cash and cash equivalents | 205,501 | 238,413 | 536,277 |
Cash and cash equivalents at end of year | 205,501 | 238,413 | 560,629 |
Discontinued Operations, Held-for-sale | European Innerwear | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
(Gain) loss on sale of business and classification of assets held for sale | 0 | 373 | 273,995 |
Cash and cash equivalents included in current assets held for sale | $ 0 | $ 0 | $ 24,352 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 , Bali, Maidenform, Bras N Things , Playtex, Wonderbra, Gear for Sports, Berlei, Comfortwash, Alternative and JMS/Just My Size. The Company designs, manufactures, sources and sells a broad range of innerwear apparel, such as T-shirts, bras, panties, shapewear, underwear and socks, as well as activewear products that are manufactured or sourced in the Company’s low-cost global supply chain. The Company’s fiscal year ends on the Saturday closest to December 31. All references to “2023”, “2022” and “2021” relate to the 52-week fiscal year ended on December 30, 2023, December 31, 2022 and January 1, 2022, 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 The Company’s business strategy integrates its brand superiority, industry-leading innovation and low-cost global supply chain to provide higher value products while lowering production costs. The Company operates in the global innerwear and global activewear apparel categories. These are stable, heavily branded categories where the Company has a strong consumer franchise based on a global portfolio of industry-leading brands that it has built over multiple decades, through hundreds of millions of direct interactions with consumers. The Company’s multi-year growth strategy (“Full Potential transformation plan”) is based on becoming a consumer-focused company that generates consistent growth and returns over time. The Company’s plan is designed to re-energize and reignite its Innerwear business by delivering consumer-driven innovation and attracting younger consumers; to grow the Champion brand through improved product and channel segmentation and expanding the brand across categories and geographies; to become a more consumer-focused organization that delivers products consumers want; and, to simplify its business and its portfolio. The key enablers to unlock its growth opportunities include segmenting its global supply chain, increasing revenue-generating investments in its brands, technology and people, as well as building a winning culture. Over the last three years, the Company has experienced several unanticipated challenges, including significant cost inflation and consumer-demand headwinds. Despite the challenging global operating environment, the Company has been able to balance the near-term management of the business with making the long-term investments necessary to execute its strategy and transform the Company. During this time, the Company has made meaningful progress on several of its strategic initiatives. The Company has pivoted its U.S. Innerwear business back to gaining market share, which has been driven by the launch of new innovation, increased marketing investments in the Company’s brands and improved on-shelf product availability. The Company has simplified its portfolio by selling its European Innerwear and U.S. Sheer Hosiery businesses. The Company has also simplified its business by improving inventory management capabilities, including SKU reduction and disciplined lifecycle management, as well as globalizing its innerwear design and innovation processes. The Company has segmented its supply chain, which has reduced lead times, improved efficiencies and reduced costs. The Company has also increased investments in brand marketing, technology, digital tools and talent. The Company remains highly confident that its strong brand portfolio, world-class supply chain and diverse category and geographic footprint will help deliver long-term growth and create stockholder value over time. Over the past several years, the Company has made significant structural improvements to its Champio n business and most recently through a global Champion performance plan that is comprised of an accelerated and enhanced channel, mix and product segmentation strategy geared toward improving Champion ’s brand position, regaining momentum and positioning the business for long-term profitable growth. These improvements highlighted an even greater distinction between its innerwear and activewear businesses, which created an opportunity for the Company to evaluate strategic alternatives for its global Champion business. In September of 2023, the Company announced that its Board of Directors and executive leadership team, with the assistance of financial and legal advisors, were undertaking an evaluation of strategic alternatives for the global Champion business. As part of this process, the Board of Directors is considering a broad range of alternatives to maximize shareholder value, including, among others, a potential sale or other strategic transaction, as well as continuing to operate the business as part of the Company. There can be no assurance that its assessment process for the global Champion business will result in the Company pursuing any particular transaction or other strategic outcome regarding Champion . The Company has not set a timetable for completion of this process and may suspend or terminate the review at any time. As part of the Company’s strategy to streamline its portfolio under its Full Potential transformation plan, on March 5, 2022, the Company completed the sale of its European Innerwear business to an affiliate of Regent, L.P. and on September 29, 2023, the Company completed the sale of its U.S. Sheer Hosiery business to AllStar Hosiery LLC (“AllStar”), an affiliate of AllStar Marketing Group, LLC. When the Company reached the decision to exit its European Innerwear business in 2021, it determined that this business met held-for-sale and discontinued operations accounting criteria and accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Consolidated Statements of Operations, and to present the related assets and liabilities as held for sale in the Consolidated Balance Sheets. The related assets and liabilities of the U.S. Sheer Hosiery business are presented as held for sale in the Consolidated Balance Sheets at December 31, 2022 and the operations of our U.S. Sheer Hosiery business are reported in “Other” for all periods presented in Note “Business Segment Information”. See Note “Assets and Liabilities Held for Sale” for additional information. Ransomware Attack As previously disclosed, on May 24, 2022, the Company identified that it had become subject to a ransomware attack and activated its incident response and business continuity plans designed to contain the incident. As part of the Company’s forensic investigation and assessment of the impact, the Company determined that certain of its information technology systems were affected by the ransomware attack. Upon discovering the incident, the Company took a series of measures to further safeguard the integrity of its information technology systems, including working with cybersecurity experts to contain the incident and implementing business continuity plans to restore and support continued operations. These measures also included resecuring data, remediation of the malware across infected machines, rebuilding critical systems, global password reset and enhanced security monitoring. The Company notified appropriate law enforcement authorities as well as certain data protection regulators. In addition to the Company’s public announcements of the incident, the Company provided breach notifications and regulatory filings as required by applicable law starting in August 2022, and that notification process is complete. The incident has been contained, the Company has restored its critical information technology systems, and manufacturing, retail and other internal operations continue. There is no ongoing operational impact on the Company’s ability to provide its products and services. The Company maintains insurance, including coverage for cyber-attacks, subject to certain deductibles and policy limitations, in an amount that the Company believes appropriate. The Company is named in a putative class action in connection with its previously disclosed ransomware incident, entitled Toussaint et al. v. HanesBrands, [sic] Inc. This lawsuit was filed on April 27, 2023, and pending in the United States District Court for the Middle District of North Carolina, and follows the consolidation of two previously pending lawsuits, entitled Roman v. Hanes Brands, [sic] Inc. , filed October 7, 2022 and Toussaint v. HanesBrands, [sic] Inc ., filed October 14, 2022. The lawsuit alleges, among other things, negligence, negligence per se, breach of implied contract, invasion of privacy, unjust enrichment, breach of implied covenant of good faith and fair dealing and unfair business practices under the California Business and Professions Code. The pending lawsuit seeks, among other things, monetary and injunctive relief. The Company is vigorously defending the pending matter and believes the case is without merit. The Company does not expect any of these claims, individually or in the aggregate, to have a material adverse effect on its consolidated financial position or results of operations. However, at this stage in the proceedings, the Company is not able to determine the probability of the outcome of this matter or a range of reasonably expected losses, if any. In 2023, the Company recognized a benefit related to business interruption insurance proceeds of $24,062, of which $23,354 is reflected in the “Cost of sales” line and $708 is reflected in the “Selling, general and administrative expenses” line of the Consolidated Statements of Operations. The Company received total business interruption insurance proceeds of $25,562 in 2023, a portion of which was recognized as an expected insurance recovery in 2022, related to the recovery of lost profit from business interruptions. In 2022, the Company incurred costs of $15,427, net of expected insurance recoveries, related to the ransomware attack. The costs, net of expected insurance recoveries, incurred during 2022 included $14,168 primarily related to supply chain disruptions, which are reflected in the “Cost of sales” line of the Consolidated Statements of Operations, and $1,259 primarily related to legal, information technology and consulting fees, which are reflected in the “Selling, general and administrative expenses” line of the Consolidated Statements of Operations. Although the Company expects to incur minimal costs, primarily for legal fees, related to the ransomware attack, the Company cannot determine, at this time, the full extent of any proceedings or additional costs or expenses related to the security event or whether such impact will ultimately have a material adverse effect. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [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, except for certain intercompany sales and related profit and receivables from the Company’s supply chain to the European Innerwear business, which was classified as discontinued operations in the consolidated financial statements in 2021 and 2022 and was sold on March 5, 2022. See Note “Assets and Liabilities Held for Sale” for additional information. (b) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from these estimates. (c) Foreign Currency Translation Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in both the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Operations. (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 Operations 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 Operations. 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. Additionally, the Company has agreements with certain of its largest customers for digital advertising and the cost of these programs are expensed in the period the advertising and promotional activity first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations of $166,942, $208,881 and $208,998 in 2023, 2022 and 2021, respectively. (f) Shipping and Handling Costs Revenue received for shipping and handling costs is included in net sales and was $11,299, $13,578 and $19,461 in 2023, 2022 and 2021, 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 $378,541, $415,989 and $447,131 in 2023, 2022 and 2021, respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. (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 Operations. 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 $35,961, $38,911 and $39,320 in 2023, 2022 and 2021, 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 $25,341, $26,296 and $37,979 in 2023, 2022 and 2021, 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. (j) Accounts Receivable Valuation Accounts receivable are stated at 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 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 Sales” line in our Consolidated Statements of Operations 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 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 accounts for leases under the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. The Company determines whether an arrangement is a lease at inception. At inception, a right of use asset and lease liability is recorded. 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. 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. In light of temporary store closures related to the COVID-19 pandemic, the Company took actions in 2021 and 2022 with respect to certain of its existing leases, including withholding rent payments and engaging 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. (n) Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, license 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 historical experience, the level of maintenance expenditures required to obtain future cash flows, future business plans and the period over which the asset will be economically useful. Trademarks determined to have finite lives are generally amortized over periods ranging from 10 to 20 years, license agreements are generally amortized over periods ranging from three four 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 additionally if 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. 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 additionally if 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. (p) Cloud Computing Arrangements The Company’s cloud computing arrangements (“CCA”) include software licenses purchased from external vendors. Software license costs, implementation costs incurred during the application development stage and other costs meeting certain criteria are capitalized while all other costs are expensed as incurred. These assets are included in computer software in the “Trademarks and other identifiable intangibles, net” line in the Consolidated Balance Sheets and amortized on a straight-line basis over their assessed useful lives. See Note “Intangible Assets and Goodwill” for additional information. If a CCA does not include the purchase of a software license, the arrangement is accounted for as a service contract and the fees associated with the hosting service are expensed as incurred. Prepayments of these costs are included in the “Other current assets” line in the Consolidated Balance Sheets. Implementation costs incurred during the application development stage as well as costs meeting certain criteria are capitalized and expensed on a straight-line basis over the term of the hosting contracts, which range from two (q) 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. (r) 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. (s) 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 Operations. 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 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 AOCI based on the pre-tax adjustments to pension liabilities or assets recognized within other comprehensive income. Any tax effects remaining in AOCI are released only when the entire portfolio of the pension and postretirement benefits is liquidated, sold or extinguished. (t) Financial Instruments The Company uses forward foreign exchange contracts and has used cross-currency swap contracts to manage its exposures to movements in foreign exchange rates and uses interest rate contracts to manage its exposure to movements in interest rates. The Company has also used a combination of cross-currency swap contracts and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in certain European subsidiaries. The use of these derivative and nonderivative financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. Depending on the nature of the underlying risk being hedged, these derivative and nonderivative financial instruments are accounted for either as cash flow, net investment or mark to market hedges against changes in the value of the hedged item. 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. The accounting for changes in fair value of a derivative instrument depends on whether the instrument has been designated and qualifies as part of a hedging relationship. The Company determines whether a derivative instrument meets the criteria for cash flow or net investment hedge accounting treatment on the date the derivative is executed. Derivatives accounted for as mark to market hedges are not designated as hedges for accounting purposes. 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 financial instruments to the hedged assets, liabilities, firm commitments, forecasted transactions or net investments. 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 at least a quarterly 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 as a deferred gain or loss in the “Accumulated other comprehensive loss” line in the Consolidated Balance Sheets. When the hedged item affects the statement of operations, the deferred gain or loss on the derivative instrument is reclassified from AOCI and recorded on the same line in the Consolidated Statements of Operations 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 gain or loss is reclassified from AOCI and recorded on the same line in the Consolidated Statements of Operations as the hedged item. Cash flows from derivatives designated as cash flow hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows. Net Investment Hedges For a net investment hedge, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated financial 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 financial instrument that is designated and highly effective as a net investment hedge is recorded as a deferred gain or loss in the cumulative translation adjustment component of AOCI, offsetting the translation gain or loss for 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 Operations. 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 Operations, which is where the gain or loss on the sale or substantial liquidation of the underlying net investment would be recorded. However, any deferred gain or loss 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 gain or loss is reclassified from AOCI and recorded in the “Other expenses” line in the Consolidated Statements of Operations. 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 foreign subsidiaries, and the cash paid or received from acquiring or selling the subsidiaries would typically be classified as investing. Mark to Market Hedges A derivative instrument whose change in fair value is used to hedge against changes in the value of a hedged item, but which is not designated as a hedge under the accounting standards, is accounted for as a mark to market hedge. These derivatives are recorded at fair value in the Consolidated Balance Sheets when the hedged item is recorded as an asset or liability and then are revalued each accounting period. Changes in the fair value of derivatives accounted for as mark to market hedges are reported in the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Operations. Cash flows from derivatives not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. (u) 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. (v) Recently Issued Accounting Pronouncements 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.” In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” The new accounting rules provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. In December 2022, the FASB deferred the expiration date of Topic 848 with the issuance of ASU 2022-06, “Reference Rate Reform: Deferral of the Sunset Date of Topic 848.” The new accounting rules extend the relief in Topic 848 beyond the cessation date of USD London Interbank Offered Rate (“LIBOR”). The new accounting rules must be adopted by the fourth quarter of 2024. 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 and does not currently intend to early adopt the new rules. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The new accounting rules require entities to apply “Revenue from Contracts with Customers (Topic 606)” to recognize and measure contract assets and contract liabilities in a business combination. The new accounting rules were effective for the Company in the first quarter of 2023. The adoption of the new accounting rules did not have any impact on the Company’s financial condition, results of operations, cash flows or disclosures. Derivatives and Hedging In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method.” The new accounting rules allow entities to expand the use of the portfolio layer method to all financial assets and designate multiple hedged layers within a single closed portfolio. The new accounting rules also clarify guidance related to hedge basis adjustments and the related disclosures for these adjustments. The new accounting rules were effective for the Company in the first quarter of 2023. As the Company does not currently have any fair value hedging programs that leverage the portfolio layer method, the adoption of the new accounting rules did not have any impact on the Company’s financial condition, results of operations, cash flows or disclosures. Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, “Liabilities - Su |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 12 Months Ended |
Dec. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale, Disclosure | Assets and Liabilities Held for Sale Total current assets and current liabilities classified as held for sale in the Consolidated Balance Sheets consist of the following: December 30, December 31, Total current assets held for sale - U.S. Sheer Hosiery business $ — $ 13,327 Total current liabilities held for sale - U.S. Sheer Hosiery business $ — $ 13,327 U.S. Sheer Hosiery Business - Continuing Operations In the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential transformation plan and determined that this business met held-for-sale accounting criteria. In the fourth quarter of 2021, the Company recorded a non-cash loss of $38,364, which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations, to record a valuation allowance against the net assets held for sale to write down the carrying value of the disposal group to the estimated fair value less costs of disposal. In 2022, the Company recorded a non-cash gain of $3,535, which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations, to adjust the valuation allowance primarily resulting from changes in carrying value due to changes in working capital. The operations of the U.S. Sheer Hosiery business are reported in “Other” for all periods presented in Note “Business Segment Information”. The related assets and liabilities are presented as held for sale in the Consolidated Balance Sheets at December 31, 2022. The Company completed the sale of its U.S. Sheer Hosiery business to AllStar on September 29, 2023 for $3,300 in total proceeds. Proceeds from the sale included cash of $1,300, which is reported in “Net cash from investing activities” in the Consolidated Statements of Cash Flows for the year ended December 30, 2023 and a receivable of $2,000, which will be paid by AllStar in two equal installments in six months and nine months after the date of sale and is reflected in the “Other current assets” line in the Consolidated Balance Sheets at December 30, 2023. In 2023, the Company recognized the loss, net of proceeds, of $3,641, which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. European Innerwear Business - Discontinued Operations In the first quarter of 2021, the Company announced that it reached the decision to exit its European Innerwear business as part of its strategy to streamline its portfolio under its Full Potential transformation plan and determined that this business met held-for-sale and discontinued operations accounting criteria. Accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Consolidated Statements of Operations, and to present the related assets and liabilities as held for sale in the Consolidated Balance Sheets. On November 4, 2021, the Company announced that it had reached an agreement to sell its European Innerwear business to an affiliate of Regent, L.P. and completed the sale on March 5, 2022. Under the agreement, the purchaser received all the assets and operating liabilities of the European Innerwear business. The operations of the European Innerwear business were previously reported primarily in the International segment. Upon meeting the criteria for held-for-sale classification in the first quarter of 2021, which qualified as a triggering event, the Company performed a full impairment analysis of the disposal group's indefinite-lived intangible assets and goodwill. As a result of the strategic decision to exit the European Innerwear business, forecasts were revised to include updated market conditions and the removal of strategic operating decisions that would no longer occur under the Company's ownership. The revised forecasts indicated impairment of certain indefinite-lived trademarks and license agreements as well as the full goodwill balance attributable to the European Innerwear business. As a result of this impairment analysis, a non-cash charge of $155,745 was recorded as "Impairment of intangible assets and goodwill" in the summarized discontinued operations financial information in 2021. In addition, the Company recorded a valuation allowance against the net assets held for sale to write down the carrying value of the disposal group to the estimated fair value less costs of disposal, resulting in non-cash charges of $7,253 and $273,995 for the quarter and year ended January 1, 2022, respectively, as "Loss on sale of business and classification of assets held for sale" in the summarized discontinued operations financial information. The non-cash charge recorded in the quarter ended January 1, 2022 primarily resulted from changes in working capital balances and foreign exchange rates. In the year ended December 31, 2022, the Company recorded the final loss on the sale of the European Innerwear business of $373 primarily resulting from changes in working capital balances and foreign exchange rates. Additionally, the Company recorded an impairment charge of $7,302 in continuing operations on an indefinite-lived trademark in 2021 which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. This charge related to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale. The Company continued certain sales from its supply chain to the European Innerwear business on a transitional basis after the sale of the business. The Company was contracted to provide services under the terms of the Manufacturing and Supply Agreement that was signed as part of closing the transaction through January 2024. Additionally, the Company entered into a Transitional Services Agreement pursuant to which the Company provided transitional services including information technology, human resources, facilities management, and limited finance and accounting services which expired in March 2023. The sales and the related profit are included in continuing operations in the Consolidated Statements of Operations and in “Other” in Note “Business Segment Information” in all periods presented and have not been eliminated as intercompany transactions in consolidation for the period when the European Innerwear business was owned by the Company. The related receivables from the European Innerwear business are included in “Trade accounts receivable, net” in the Consolidated Balance Sheets for all periods presented. The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the European Innerwear business. Discontinued operations does not include any allocation of corporate overhead expense or interest expense. The key components from discontinued operations related to the European Innerwear business are as follows: Years Ended December 30, December 31, January 1, Net sales $ — $ 101,314 $ 546,558 Cost of sales — 60,415 294,383 Gross profit — 40,899 252,175 Selling, general and administrative expenses — 54,689 274,408 Impairment of intangible assets and goodwill — — 155,745 Loss on sale of business and classification of assets held for sale — 373 273,995 Operating loss — (14,163) (451,973) Other expenses — 283 2,178 Interest expense, net — 10 613 Loss from discontinued operations before income tax benefit — (14,456) (454,764) Income tax benefit — (18,421) (11,020) Net income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) There were no assets and liabilities of discontinued operations classified as held for sale in the Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022. The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information related to discontinued operations: Years Ended December 30, December 31, January 1, Depreciation $ — $ — $ 2,608 Amortization $ — $ — $ 1,460 Capital expenditures $ — $ 715 $ 8,462 Impairment of intangible assets and goodwill $ — $ — $ 155,745 Loss on sale of business and classification of assets held for sale $ — $ 373 $ 273,995 Capital expenditures included in accounts payable at end of period $ — $ — $ 1,079 Right-of-use assets obtained in exchange for lease obligations $ — $ — $ 8,672 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, December 31, January 1, Third-party brick-and-mortar wholesale $ 3,923,339 $ 4,348,424 $ 4,777,623 Consumer-directed 1,713,184 1,885,226 2,023,617 Total net sales $ 5,636,523 $ 6,233,650 $ 6,801,240 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. Third-party brick-and-mortar wholesale revenue also includes royalty revenue from license agreements. The Company earns royalties through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensees. Consumer-Directed Revenue |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [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 December 30, December 31, January 1, Basic weighted average shares outstanding 350,592 349,970 351,028 Effect of potentially dilutive securities: Stock options — — 16 Restricted stock units — — 1,031 Employee stock purchase plan and other — — 3 Diluted weighted average shares outstanding 350,592 349,970 352,078 The following securities were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive: Years Ended December 30, December 31, January 1, Stock options 250 252 167 Restricted stock units 4,250 1,907 32 Employee stock purchase plan and other 10 8 — In 2023 and 2022, all potentially dilutive securities were excluded from the diluted earnings per share calculation because the Company incurred a net loss for these years and their inclusion would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company established the Omnibus Incentive Plan to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and 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 initially 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. In April 2023, the stockholders of the Company approved an amendment to the 2020 Omnibus Plan to increase the authorized shares of common stock of the Company available for grant by 5,300 shares of common stock. After the April 2023 amendment, the 2020 Omnibus Plan had 79,520 shares authorized for awards of stock options and restricted stock units, of which 16,324 shares were available for future grants as of December 30, 2023. 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 The 250 stock options outstanding were granted by the Company in 2020 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 vested ratably over three A summary of the changes in stock options outstanding to the Company’s employees is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at January 2, 2021 250 $ 17.18 $ 22 9.59 Granted — — Exercised — — Options outstanding at January 1, 2022 250 $ 17.18 $ 200 8.59 Granted — — Exercised — — Options outstanding at December 31, 2022 250 $ 17.18 $ — 7.59 Granted — — Exercised — — Options outstanding at December 30, 2023 250 $ 17.18 $ — 6.59 Options exercisable at December 30, 2023 250 $ 17.18 $ — 6.59 There were no stock option exercises during 2023, 2022 or 2021. 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 induce employment and incent performance and retention over periods of one three A summary of the changes in the restricted stock unit awards outstanding is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at January 2, 2021 3,111 $ 14.64 $ 45,361 1.32 Granted — non-performanced based 970 16.11 Granted — performanced based (149) 16.22 Vested (1,694) 14.87 Forfeited (117) 15.36 Nonvested share units outstanding at January 1, 2022 2,121 $ 16.53 $ 35,455 1.18 Granted — non-performanced based 1,178 15.39 Granted — performanced based 1,624 16.98 Vested (829) 15.92 Forfeited (435) 16.84 Nonvested share units outstanding at December 31, 2022 3,659 $ 16.46 $ 23,268 1.24 Granted — non-performanced based 2,026 7.76 Granted — performanced based 1,662 7.92 Vested (931) 15.45 Forfeited (688) 14.85 Nonvested share units outstanding at December 30, 2023 5,728 $ 11.26 $ 25,547 1.18 The total fair value of shares vested during 2023, 2022 and 2021 was $14,381, $13,199 and $25,201, 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 awards granted, the Company recognized compensation expense and deferred tax benefits as follows: Years Ended December 30, December 31, January 1, Compensation expense included in continuing operations $ 20,304 $ 23,357 $ 16,065 Compensation expense included in discontinued operations — (200) 225 Total compensation expense $ 20,304 $ 23,157 $ 16,290 Deferred tax benefit recognized in continuing operations $ — $ — $ 2,499 |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Dec. 30, 2023 | |
Trade Accounts Receivable [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 customer chargebacks and other customer deductions are as follows: Allowance Allowance Total Balance at January 2, 2021 $ 33,603 $ 15,142 $ 48,745 Charged to expenses 2,279 24,501 26,780 Deductions, write-offs and adjustments 2,663 (15,245) (12,582) Currency translation (707) (288) (995) Balance at January 1, 2022 $ 37,838 $ 24,110 $ 61,948 Charged to expenses 6,721 20,432 27,153 Deductions, write-offs and adjustments (19,753) (16,180) (35,933) Currency translation (658) (487) (1,145) Balance at December 31, 2022 $ 24,148 $ 27,875 $ 52,023 Charged to expenses 2,614 14,703 17,317 Deductions, write-offs and adjustments (4,636) (16,225) (20,861) Currency translation 1,187 508 1,695 Balance at December 30, 2023 $ 23,313 $ 26,861 $ 50,174 Charges to the allowance for doubtful accounts are reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations 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 Operations. Deductions, write-offs and adjustments, which do not increase or decrease income, represent write-offs of and adjustments to previously reserved accounts receivable and allowed customer chargebacks and deductions against gross accounts receivable. Sales of Trade Accounts Receivable The Company has entered into agreements to sell selected trade accounts receivable to financial institutions based on programs sponsored by the Company as well as working capital programs offered by certain of the Company’s 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. In all agreements, after the sale, the Company does not retain any beneficial interests in the receivables. The applicable financial institution services and collects the accounts receivable directly from the customer for programs offered by the Company’s customers. For programs sponsored by the Company, the Company maintains continued involvement as the servicer to collect the accounts receivable from the customer and remit payment to the financial institutions. Net proceeds of these accounts receivable sale programs are recognized in the Consolidated Statements of Cash Flows as part of operating cash flows. During 2023, 2022 and 2021, the Company sold total trade accounts receivable of $1,421,592, $372,693 and $48,720, respectively, related to Company sponsored programs and removed the trade accounts receivable from the Company’s balance sheet at the time of sale. As of December 30, 2023 and December 31, 2022, $297,807 and $92,166, respectively, of the sold trade accounts receivable remain outstanding with the financial institutions as a result of the related servicing obligation. Collections of accounts receivable not yet submitted to the financial institutions are remitted within one week of collection and recognized within the “Accounts payable” line in the Consolidated Balance Sheets. As these funds are related to the ongoing service agreement and do not serve in a financing capacity, cash flows collected from customers and submitted to the financial institutions are recognized in the Consolidated Statements of Cash Flows as part of operating activities. The Company recognized total funding fees of $22,023, $8,823 and $3,312 in 2023, 2022 and 2021, respectively, for sales of trade accounts receivable to financial institutions and working capital programs in the “Other expenses” line in the Consolidated Statements of Operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 30, December 31, Raw materials $ 51,633 $ 69,279 Work in process 71,205 107,904 Finished goods 1,245,180 1,802,489 $ 1,368,018 $ 1,979,672 |
Property, Net
Property, Net | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Net | Property, Net Property is summarized as follows: December 30, December 31, Land $ 26,248 $ 26,209 Buildings and improvements 413,629 430,043 Machinery and equipment 1,002,740 994,829 Construction in progress 43,681 50,895 1,486,298 1,501,976 Less accumulated depreciation 1,071,932 1,059,572 Property, net $ 414,366 $ 442,404 |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases Disclosure | Leases 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 Total operating lease costs, which includes short-term leases and variable cost, were $239,485, $239,854 and $236,139 for 2023, 2022 and 2021, respectively. For 2023, 2022 and 2021, variable costs of $75,227, $82,165 and $77,496, respectively, were included in total operating lease costs. Short-term lease costs were immaterial for 2023, 2022 and 2021. The following table presents supplemental cash flow and non-cash information related to leases: Years Ended December 30, December 31, January 1, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 162,970 $ 146,439 $ 157,138 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 109,954 $ 81,571 $ 59,864 The following table presents supplemental information related to lease terms and discount rates: Years Ended December 30, December 31, January 1, Weighted average remaining lease term 5.1 years 5.0 years 4.7 years Weighted average discount rate 4.87 % 4.77 % 4.55 % The following table presents maturities of operating lease liabilities as of December 30, 2023: 2024 $ 130,046 2025 114,881 2026 97,795 2027 69,030 2028 48,269 Thereafter 75,096 Total lease payments 535,117 Less interest 70,462 $ 464,655 As of December 30, 2023, the Company’s additional operating lease contracts that have not yet commenced are immaterial. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [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 December 30, 2023: Intangible assets subject to amortization: Trademarks $ 39,439 $ 29,434 $ 10,005 License agreements 89,622 73,181 16,441 Customer and distributor relationships 123,827 92,314 31,513 Computer software 114,927 85,542 29,385 Other intangibles 5,191 5,191 — $ 373,006 $ 285,662 87,344 Intangible assets not subject to amortization: Trademarks 1,146,110 Perpetual license agreements and other 2,250 Net book value of intangible assets $ 1,235,704 Gross Accumulated Net Book Year ended December 31, 2022: Intangible assets subject to amortization: Trademarks $ 40,128 $ 28,633 $ 11,495 License agreements 89,523 68,205 21,318 Customer and distributor relationships 122,283 81,099 41,184 Computer software 109,209 72,626 36,583 Other intangibles 5,160 5,043 117 $ 366,303 $ 255,606 110,697 Intangible assets not subject to amortization: Trademarks 1,142,746 Perpetual license agreements and other 2,250 Net book value of intangible assets $ 1,255,693 In connection with the annual intangible assets impairment analysis performed in the third quarter of 2023, the Company performed a quantitative assessment utilizing an income approach to estimate the fair values of certain indefinite-lived intangible assets. The most significant assumptions used to estimate the fair values of the indefinite-lived intangible assets included revenue growth rates, operating profit margin rates, terminal growth rates and discount rates. The analysis indicated that the indefinite-lived intangible assets had fair values that exceeded their carrying values by more than 20% at the time the analysis was performed. Although the Company determined that no impairment existed for the Company’s indefinite-lived intangible assets as of the date the analysis was performed in the third quarter of 2023, these assets could be at risk for future impairment due to changes in the Company’s business or global economic conditions. In June of 2022, the Company purchased the Champion trademark for footwear in the United States, Puerto Rico and Canada from Keds, LLC (“KEDS”) for $102,500. The trademark was recorded in “Trademarks and other identifiable intangibles, net” line in the Consolidated Balance Sheets and has an indefinite life. The Company previously licensed the Champion trademark for footwear in these locations. The purchase of the trademark was part of an agreement with KEDS settling litigation between the two parties. In the first quarter of 2021, the Company recorded an impairment charge of $7,302 to fully impair an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale. This impairment charge is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations for the year ended January 1, 2022. The amortization expense in continuing operations for intangible assets subject to amortization was $29,769, $29,973 and $31,069 for 2023, 2022 and 2021, 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: $27,833 in 2024, $24,747 in 2025, $16,279 in 2026, $6,998 in 2027 and $4,407 in 2028. (b) Goodwill Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at January 1, 2022 $ 406,853 $ 316,384 $ 407,358 $ 2,500 $ 1,133,095 Currency translation — — (24,188) — (24,188) Net book value at December 31, 2022 $ 406,853 $ 316,384 $ 383,170 $ 2,500 $ 1,108,907 Currency translation — — 3,837 — 3,837 Net book value at December 30, 2023 $ 406,853 $ 316,384 $ 387,007 $ 2,500 $ 1,112,744 In connection with the annual goodwill impairment analysis performed in the third quarter of 2023, the Company performed a quantitative assessment utilizing an income approach to estimate the fair value of each reporting unit. The most significant assumptions used to estimate the fair values of the reporting units included revenue growth rates, operating profit margin rates, terminal growth rates and discount rates. While the analysis indicated that all reporting units had fair values that exceeded their carrying values, the Company noted meaningful declines in the fair value cushion above the carrying value for three reporting units. The decline in the U.S. Activewear reporting unit fair value cushion was driven by the continued challenging activewear market dynamics and the impact of continued strategic actions geared toward improving Champion |
Debt
Debt | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of the Company’s debt is presented below: Interest Rate as of December 30, Principal Amount December 30, December 31, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ 352,500 November 2026 Term Loan A 8.21% 937,500 975,000 November 2026 Term Loan B 9.11% 893,250 — March 2030 9.000% Senior Notes 9.00% 600,000 — February 2031 4.875% Senior Notes 4.88% 900,000 900,000 May 2026 4.625% Senior Notes — — 900,000 — 3.5% Senior Notes — — 535,275 — Accounts Receivable Securitization Facility 7.36% 6,000 209,500 May 2024 3,336,750 3,872,275 Less long-term debt issuance costs and debt discount 36,110 13,198 Less current maturities 65,000 247,000 $ 3,235,640 $ 3,612,077 As of December 30, 2023 the Company’s primary financing arrangements were the senior secured credit facility (the “Senior Secured Credit Facility”), 9.000% senior notes (the “9.000% Senior Notes”), 4.875% senior notes (the “4.875% Senior Notes”) and the accounts receivable securitization facility (the “ARS Facility”). The outstanding balances at December 30, 2023 and December 31, 2022 are reported in the “Accounts Receivable Securitization Facility”, “Current portion of long-term debt” and “Long-term debt” lines in the Consolidated Balance Sheets. Senior Secured Credit Facility The $1,000,000 Revolving Loan Facility, a portion of which is available to be borrowed in Euros or Australian dollars, is used for general corporate purposes and working capital needs. All borrowings under the Revolving Loan Facility may be repaid and reborrowed from time to time without penalty but must be repaid in full upon maturity. 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. As of December 30, 2023, the Company had $996,413 of borrowing availability under the Revolving Loan Facility after taking into account $3,587 of standby and trade letters of credit issued and outstanding under this facility. In November 2023, given the continuing uncertain economic environment and the associated potential impact on future earnings, the Company amended the credit agreement governing the Senior Secured Credit Facility prior to any potential future covenant violation in order to modify the financial covenants and to provide greater strategic financial flexibility. The November 2023 amendment effected changes to certain provisions and covenants under the Senior Secured Credit Facility, including changes to certain covenants and provisions that were previously amended in November 2022 and February 2023, during the period beginning with the fiscal quarter ending December 30, 2023 and continuing through the fiscal quarter ending September 27, 2025, or such earlier date as the Company may elect (such period of time, the “Extended Covenant Relief Period”), including: (a) an extension of the original Covenant Relief Period from March 30, 2024 to September 27, 2025; (b) an increase in the maximum leverage ratio to 6.75 to 1.00 for the quarters ending December 30, 2023 and March 30, 2024, 6.63 to 1.00 for the quarters ending June 29, 2024 and September 28, 2024, 6.38 to 1.00 for the quarter ending December 28, 2024, 5.63 to 1.00 for the quarter ending March 29, 2025, 5.25 to 1.00 for the quarter ending June 28, 2025, and 5.00 to 1.00 for the quarter ending September 27, 2025, reverting back to 4.50 to 1.00 for each quarter after the Extended Covenant Relief Period has ended; and (c) a reduction of the minimum interest coverage ratio to 1.63 to 1.00 for the quarters ending December 30, 2023 through September 28, 2024, 1.75 to 1.00 for the quarter ending December 28, 2024, 2.00 to 1.00 for the quarter ending March 29, 2025, 2.25 to 1.00 for the quarter ending June 28, 2025, and 2.50 to 1.00 for the quarter ending September 27, 2025 and each quarter after the Extended Covenant Relief Period has ended. The November 2023 amendment also included the following additional baskets and restrictions: (a) an additional basket for permitted asset sales of $60,000; (b) suspended the Company’s reinvestment rights with respect to net proceeds in respect of certain asset sales (including the additional asset sale basket described in (a) above) and casualty and condemnation events (requiring the Company to prepay the credit agreement term loan obligations with such net proceeds, subject to step-downs for such prepayment requirement based on the leverage ratio); (c) reduced the cap on the Company’s general lien basket from $165,000 to $85,000 during the Extended Covenant Relief Period; (d) reduced the maximum amount for incremental facilities secured by a lien to $100,000 during the Extended Covenant Relief Period; and (e) suspended the payment of annual dividends during the Extended Covenant Relief Period, which will revert back to the greater of (x) $350,000 and (y) 8.0% of Total Tangible Assets after the Extended Covenant Relief Period has ended. In addition, the November 2023 amendment increased the applicable interest rate margins and commitment fee rates based on the leverage ratio during the Extended Covenant Relief Period. Prior to the November 2023 amendment, the Company amended the Senior Secured Credit Facility in November 2022 and February 2023. These prior amendments included changes to certain provisions and covenants under the Senior Secured Credit Facility that were extended to September 27, 2025 but otherwise were not impacted by the November 2023 amendment, including: (a) suspension of restricted payments in connection with share repurchases; (b) suspension of restricted payments pursuant to the Company's leverage ratio-based and "Available Amount" restricted payments baskets; (c) suspension of the Company’s “Available Amount” basket for investments in foreign subsidiaries and other investments; (d) suspension of the 0.50 to 1.00 increase in the maximum permitted consolidated net total leverage ratio resulting from a material permitted acquisition; and (e) the addition of two new tiers to the top of the pricing grid if the maximum consolidated net total leverage ratio exceeds 5.00 to 1.00 and 5.50 to 1.00. In addition, the November 2022 amendment permanently transitioned the Senior Secured Credit Facility from the LIBOR to the Secured Overnight Financing Rate (“SOFR”) with a 10 basis points credit spread adjustment already included in the Senior Secured Credit Facility. Borrowings under the Senior Secured Credit Facility bear interest at a variable rate based on, at the Company’s option, either the SOFR or an alternative base rate (both as defined in the Senior Secured Credit Facility), or the appropriate SOFR benchmark for non-U.S. dollar borrowings, plus, in each case, an applicable margin that is based on the Company’s leverage ratio (as defined in the Senior Secured Credit Facility). Interest is payable quarterly for base rate loans, but the Company has the option to pay interest on a more frequent, or less frequent, basis for SOFR-based loans. The applicable margin was 2.75% plus a 10 basis point credit spread adjustment for SOFR-based loans and 1.75% for base rate loans as of December 30, 2023. During the Extended Covenant Relief Period, the applicable margin ranges from a maximum of 2.75% in the case of SOFR-based loans and 1.75% in the case of base rate loans if the Company’s leverage ratio is greater than or equal to 5.50 to 1.00, and steps down in varying increments to a minimum of 1.25% in the case of SOFR-based loans and 0.25% in the case of base rate loans if the Company’s leverage ratio is less than 2.25 to 1.00. After the Extended Covenant Relief Period has ended, the applicable margin will range from a maximum of 1.75% in the case of SOFR-based loans and 0.75% 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 steps down in varying increments to a minimum of 1.00% in the case of SOFR-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. T he commitment fee for the unused portion of the Revolving Loan Facility, which is based on the Company’s leverage ratio (as defined in the Senior Secured Credit Facility, as amended), was 0.425% as of December 30, 2023. During the Extended Covenant Relief Period, the commitment fee ranges from a maximum of 0.425% if the Company’s leverage ratio is greater than or equal to 5.50 to 1.00, and steps down in varying increments to a minimum of 0.175% if the Company’s leverage ratio is less than 2.25 to 1.00. After the Extended Covenant Relief Period has ended, the commitment fee will range from a maximum of 0.25% if the Company’s leverage ratio is greater than or equal to 4.50 to 1.00, and steps down in varying increments to a minimum of 0.15% if the Company’s leverage ratio is less than 2.25 to 1.00. Subject to restrictions in the Senior Secured Credit Facility, which was amended in November 2022, February 2023 and November 2023, the Company may add one or more tranches of term loans or increase the commitments under the Revolving Loan Facility after the Extended Covenant Relief Period has ended so long as certain conditions are satisfied, including, among others, that no default or event of default is in existence, the Company is in pro forma compliance with the financial covenants set forth in the Senior Secured Credit Facility and the Company’s senior secured leverage ratio is not greater than 3.50 to 1.00 on a pro forma basis after giving effect to the incurrence of such indebtedness. The Senior Secured Credit Facility is guaranteed by substantially all of the Company’s existing and future direct and indirect U.S. subsidiaries and certain foreign subsidiaries, with certain customary or agreed-upon exceptions for certain subsidiaries. The Senior Secured Credit Facility is secured by the equity interests of substantially all of the Company’s direct and indirect U.S. subsidiaries and 65% of the voting securities of certain first tier foreign subsidiaries and substantially all present and future property and assets of the Company and each guarantor, except for certain enumerated interests. The Senior Secured Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants. The financial covenants include 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, each of which is defined in the Senior Secured Credit Facility. The method of calculating all of the components used in the covenants, is included in the Senior Secured Credit Facility. The Senior Secured Credit Facility contains customary events of default, including nonpayment of principal when due; nonpayment of interest, fees or other amounts after stated grace period; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; any cross-default to material indebtedness; certain material judgments; certain events related to the ERISA, actual or asserted invalidity of any guarantee, security document or subordination provision or non-perfection of security interest, and a change in control (as defined in the Senior Secured Credit Facility). As of December 30, 2023, the Company was in compliance with all financial covenants related to the Senior Secured Credit Facility. The Company expects to maintain compliance with its financial covenants, as amended in November 2023, for at least 12 months from the issuance of these financial statements based on its current expectations and forecasts. 2023 Refinancing In February and March of 2023, the Company refinanced its debt structure to provide greater near-term financial flexibility given the uncertainty within the global macroeconomic environment. The 2023 refinancing consisted of entering into a new senior secured term loan B facility in an aggregate principal amount of $900,000 due in 2030 (the “2023 Term Loan B”), issuing $600,000 aggregate principal amount of the 9.000% Senior Notes and redeeming the Company’s 4.625% senior notes due in May 2024 (the “4.625% Senior Notes”) and 3.5% senior notes due in June 2024 (the “3.5% Senior Notes”). The Company used the net proceeds from borrowings under the 2023 Term Loan B together with the net proceeds from the offering of the 9.000% Senior Notes to redeem all of its outstanding 4.625% Senior Notes and 3.5% Senior Notes and pay the related fees and expenses which resulted in total charges of $8,466. The charges, which are recorded in the “Other expenses” line in the Consolidated Statements of Operations, included a payment of $4,632 for a required make-whole premium related to the redemption of the 3.5% Senior Notes, a non-cash charge of $1,654 for the write-off of unamortized debt issuance costs related to the redemption of the 3.5% Senior Notes and a non-cash charge of $2,180 for the write-off of unamortized debt issuance costs related to the redemption of the 4.625% Senior Notes. The 2023 refinancing activities resulted in a debt discount of $9,000 related to the 2023 Term Loan B and total capitalized debt issuance costs of $22,991, which included $11,917 related to the 2023 Term Loan B and $11,074 related to the 9.000% Senior Notes. The debt discount and debt issuance costs are amortized into interest expense over the respective terms of the debt instruments. The cash payments for the make-whole premium and fees capitalized as debt issuance costs are reported in “Net cash from financing activities” in the Consolidated Statements of Cash Flows. The issuance of the 2023 Term Loan B resulted in proceeds, net of the debt discount of $9,000 and debt issuance costs of $11,917, of approximately $879,083. The 2023 Term Loan B bears interest based on the SOFR plus an applicable margin of 3.75%, subject to a floor of 0.50%. The 2023 Term Loan B Facility is guaranteed by each domestic subsidiary of the Company which guarantees the other facilities under the Senior Secured Credit Facility (the “U.S. Subsidiary Guarantors”) and is secured by substantially all of the assets of the Company and the U.S. Subsidiary Guarantors, on a pari passu basis with the other facilities under the Senior Secured Credit Facility. Outstanding borrowings under the 2023 Term Loan B are repayable in 0.25% quarterly installments, with the remainder of the outstanding principal to be repaid at maturity. If the 2023 Term Loan B is repriced or refinanced on or prior to the six month anniversary of its funding and as a result of such repricing or refinancing the effective interest rate of the 2023 Term Loan B decreases, the Company shall be required to pay a prepayment fee equal to 1.0% of the aggregate principal amount of the 2023 Term Loan B subject to such repricing or refinancing. Additionally, the Company is required to prepay any outstanding amounts 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 2023 Term Loan B also requires the Company, as applicable, to prepay any outstanding term loans under the 2023 Term Loan B in connection with excess cash flow, which percentage will be based upon the Company’s leverage ratio during the relevant fiscal period. All such prepayments will be made on a pro rata basis under each of the applicable term loans that are subject to such prepayments. The 2023 Term Loan B matures on March 8, 2030. 2021 Refinancing and Repayments In March 2021, the Company repaid the outstanding balance of the 2015 Term Loan B, that was refinanced in 2017, which consisted of a required excess cash flow prepayment of $238,936 and a voluntary prepayment of $61,064. In November 2021, the Company amended and restated the Senior Secured Credit Facility to provide for potential committed aggregate borrowings of up to $2,000,000, consisting of a $1,000,000 Revolving Loan Facility and a $1,000,000 Term Loan Facility, to extend the maturity date of the Senior Secured Credit Facility from December 2022 to November 2026 and to refinance the Australian Revolving Loan Facility that was originally entered into in July 2016 under the Company’s Syndicated Facility as a joinder to the Senior Secured Credit Facility. The Australian Revolving Loan Facility, which was previously amended in July 2021 to extend the maturity date to July 2022, was incorporated into the $1,000,000 Revolving Loan Facility on the date the amendment to the Senior Secured Credit Facility became effective. The proceeds of the $1,000,000 Term Loan Facility were used to refinance the Term Loan A, which resulted in an increase in term loan borrowings of $390,625 in November 2021 when the amendment became effective, and to redeem, together with cash on hand, the 5.375% Senior Notes. Outstanding borrowings under the Term Loan A are repayable in equal quarterly installments of the following amounts per annum, calculated as a percentage of the original principal amount: 2.5% in years one and two, 5.0% in years three and four and 7.5% in year five, with the remainder to be repaid at maturity. The Company is required to prepay any outstanding amounts 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. In 2021, redemption of the 5.375% Senior Notes required payment of a make-whole premium of $34,840 and the redemption of the 5.375% Senior Notes and the 2021 refinancing of the Senior Secured Credit Facility resulted in a non-cash charge of $8,899 for the write-off of unamortized debt issuance costs. Additionally, in 2021, the Company incurred fees of $9,729 related to the 2021 refinancing, of which $1,960 was charged to expense and $7,769 was capitalized as debt issuance costs that are being amortized to interest expense over the remaining term of the Senior Secured Credit Facility. The make-whole premium payment, debt issuance costs write-off and fees charged to expense resulted in a one-time charge of $45,699, which is reported in the “Other expenses” line in the Consolidated Statements of Operations in 2021. The cash payments for the make-whole premium and fees capitalized as debt issuance costs are reported in “Net cash from financing activities” in the Consolidated Statements of Cash Flows in 2021. 9.000% Senior Notes In February 2023, the Company issued $600,000 aggregate principal amount of 9.000% Senior Notes, with interest payable on February 15 and August 15 of each year. The issuance of the 9.000% Senior Notes resulted in proceeds, net of debt issuance costs of $11,074, of approximately $588,926. The 9.000% Senior Notes mature on February 15, 2031. Prior to February 15, 2026, the Company has the right to redeem all or of a portion of the 9.000% 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 February 15, 2026, 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 109.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. On and after February 15, 2026, the Company has the right to redeem all or a portion of the 9.000% Senior Notes, at the redemption prices set forth in the indenture governing the 9.000% Senior Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. 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 9.000% Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The 9.000% Senior Notes are senior unsecured obligations of the Company and are guaranteed by the Company and certain of its domestic subsidiaries that guarantee its credit facilities and certain other material indebtedness. The indenture 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 and contains customary covenants and events of default. The 9.000% Senior Notes were issued in a transaction exempt from registration under the Securities Act of 1933 and do not require disclosure of separate financial information for the guarantor subsidiaries. 4.875% Senior Notes and 4.625% Senior Notes In May 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 issuance of the USD Senior Notes resulted in net proceeds of approximately $1,773,000, which were used to redeem in full the Company’s 6.375% Senior Notes and reduce the outstanding borrowings under the Revolving Loan Facility. The 4.625% Senior Notes, which were scheduled to mature in May 2024, were redeemed in full in March 2023 in connection with the 2023 refinancing described above. The 4.875% Senior Notes will mature in May 2026. On or after February 15, 2026, the Company may redeem all or a portion of the 4.875% Senior Notes at a price equal to 100% of the principal amount, plus any accrued and unpaid interest. The 4.875% 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 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 and contains customary covenants and events of default. The 4.875% 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 In June 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 issuance 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. The 3.5% Senior Notes, which were scheduled to mature in June 2024, were redeemed in full in February 2023 in connection with the 2023 refinancing described above. ARS Facility Borrowing availability under the ARS Facility, which was entered into in November 2007, is subject to a quarterly fluctuating facility limit currently ranging from $200,000 in the first and second quarters to $225,000 in the third and fourth quarters and permitted only to the extent that the face value of the receivables in the collateral pool, net of applicable concentrations, reserves and other deductions, exceeds the outstanding loans. The Company amended the ARS facility in June 2022 and June 2023. The June 2022 amendment extended the maturity date to June 2023 and changed the Company’s interest rate option as defined in the ARS Facility from the rate announced from time to time by PNC Bank, N.A. as its prime rate or the LIBOR to the rate announced from time to time by PNC Bank, N.A. as its prime rate or the SOFR and increased certain receivables to the pledged collateral pool for the facility. The June 2023 amendment extended the maturity date to May 2024 and created two pricing tiers based on a consolidated net total leverage ratio of 4.50 to 1.00. As of December 30, 2023, the quarterly fluctuating facility limit was $225,000, the maximum borrowing capacity was $147,112 and the Company had $141,112 of borrowing availability under the ARS Facility. Under the terms of the ARS 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 ARS Facility is received either from conduits party to the ARS 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 ARS 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. Availability of funding under the ARS Facility depends primarily upon the eligible outstanding receivables balance. The outstanding balance under the ARS Facility is reported on the Consolidated Balance Sheets in the line “Accounts Receivable Securitization Facility.” In the case of any creditors party to the ARS 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 Operations. In the case of any creditors party to the ARS 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 SOFR (as defined in the ARS Facility) plus the applicable margin in effect from time to time. If the SOFR (as defined in the ARS Facility) is unavailable or otherwise does not accurately reflect the costs to these creditors related to the borrowings, the interest rate would generally default to the prime rate. These amounts are also considered financing costs and are included in the “Interest expense, net” line in the Consolidated Statements of Operations. 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 ARS Facility are consolidated for financial and/or regulatory accounting purposes with certain other entities. The ARS 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 ARS Facility if approved by the managing agents or their affiliates. As of December 30, 2023, the Company was in compliance with all financial covenants. Other The Company had $45,706 of borrowing capacity under other international credit facilities after taking into account outstanding borrowings at December 30, 2023. The Company had $61,485 of international letters of credit outstanding at December 30, 2023. Available liquidity for other international credit facilities is reduced for any outstanding international letters of credit. The international letters of credit are not outstanding under any specific credit facility and do not reduce actual borrowing capacity under the specific credit facilities. Future Principal Payments Future principal payments for all of the facilities described above are as follows: $65,000 due in 2024, $71,500 due in 2025, $1,734,000 due in 2026, $9,000 due in 2027, $9,000 due in 2028 and $1,448,250 due thereafter. Cash Paid for Interest Total cash paid for interest related to debt in 2023, 2022 and 2021 was $260,257, $150,452 and $161,202, respectively. Debt Issuance Costs During 2023, 2022 and 2021, the Company paid $35,388, $3,159 and $8,346, respectively, in capitalized debt issuance costs related to the Company’s financing arrangements within continuing operations. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which range from one 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 Sheets, was $6,551 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 Sheets was $36,110. The Company’s debt issuance cost amortization in continuing operations was $8,939, $7,300 and $12,305 in 2023, 2022 and 2021, respectively. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans At December 30, 2023, the Company’s pension plans consisted of the U.S. pension plans, which includes the Hanesbrands Inc. Legacy Pension Plan and the Hanesbrands Inc. Pension Plan (together, the “U.S. Pension Plans”), various nonqualified retirement plans and international plans, which include certain defined benefit plans acquired in connection with the purchases of Champion Europe and Hanes Australasia. Benefits under the U.S. Pension Plans were frozen effective December 31, 2005. Effective December 1, 2022, the Company spun-off the majority of participants in the Hanesbrands Inc. Pension Plan into a new, separate plan, the Hanesbrands Inc. Legacy Pension Plan with a small number of participants remaining in the Hanesbrands Inc. Pension Plan. 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 December 30, December 31, January 1, Service cost $ 990 $ 1,345 $ 1,488 Interest cost 44,968 27,669 23,812 Expected return on assets (54,197) (49,189) (45,923) Settlement cost (1) (6) 861 Amortization of: Prior service cost (6) (6) (6) Net actuarial loss 16,672 20,972 24,440 Net periodic benefit cost $ 8,426 $ 785 $ 4,672 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net gain $ (17,131) $ (130,000) $ (96,334) Prior service credit 6 6 6 Total gain recognized in other comprehensive income (loss) (17,125) (129,994) (96,328) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (8,699) $ (129,209) $ (91,656) The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: December 30, December 31, Benefit obligation: Beginning of year $ 926,199 $ 1,216,161 Service cost 990 1,345 Interest cost 44,968 27,669 Benefits paid (63,155) (64,786) Settlements (104) (125) Impact of exchange rate change 366 (2,603) Actuarial (gain) loss 11,906 (251,426) Other (45) (36) End of year 921,125 926,199 Fair value of plan assets: Beginning of year 816,244 973,598 Actual return on plan assets 66,627 (93,497) Employer contributions 2,047 2,831 Benefits paid (63,155) (64,786) Settlements (104) (125) Impact of exchange rate change 746 (1,741) Other (45) (36) End of year 822,360 816,244 Funded status $ (98,765) $ (109,955) The actuarial loss in 2023 included in benefit obligations was primarily driven by decreases in the U.S. discount rate assumptions. The actuarial gain in 2022 included in benefit obligations was primarily driven by increases in the U.S. discount rate assumptions. As most of the Company’s pension plans are frozen, the accumulated benefit obligation (“ABO”) approximates the benefit obligation. The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: December 30, December 31, Benefit obligation $ 921,125 $ 926,199 Plans with benefit obligation in excess of plan assets: Benefit obligation 898,890 905,749 Fair value of plan assets 795,765 790,641 Amounts recognized in the Company’s Consolidated Balance Sheets consist of: December 30, December 31, Other noncurrent assets $ 4,360 $ 5,153 Accrued liabilities and other: Payroll and employee benefits (1,953) (2,388) Pension and postretirement benefits (101,172) (112,720) Accumulated other comprehensive loss (423,404) (440,529) Amounts recognized in accumulated other comprehensive loss consist of: December 30, December 31, Prior service cost $ (127) $ (133) Actuarial loss 423,531 440,662 Accumulated other comprehensive loss $ 423,404 $ 440,529 (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: December 30, December 31, January 1, Net periodic benefit cost: Discount rate 5.15 % 2.88 % 2.55 % Long-term rate of return on plan assets 6.94 5.24 4.95 Rate of compensation increase (1) 3.08 3.09 3.10 Interest crediting rate 5.50 5.50 5.50 Plan obligations: Discount rate 4.96 % 5.15 % 2.88 % Rate of compensation increase (1) 3.09 3.08 3.09 Interest crediting rate 5.50 5.50 5.50 (1) For December 30, 2023, December 31, 2022 and January 1, 2022, the compensation assumption only applies to certain international plans as the benefits of the U.S. pension plans are now all frozen. (b) Plan Assets, Expected Benefit Payments, and Funding The allocation of pension plan assets as of the respective period end measurement dates is as follows: December 30, December 31, Asset category: Debt securities 40 % 10 % Foreign equity securities 22 21 U.S. equity securities 21 19 Hedge fund of funds 9 39 Real estate 7 8 Commodities — 2 Cash and other 1 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 and funded status. 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 trade-offs and correlations of asset mixes given long-term historical data, prospective capital market returns and forecasted liabilities of the plans. The target asset allocation approximates the actual asset allocation as of December 30, 2023. 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 five 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, foreign equity securities and cash and cash equivalents. Certain U.S. equity securities, foreign equity securities, debt securities and commodity investments are measured at their net asset value, which is determined based on inputs readily available in public markets, and investments in hedge funds of funds and real estate investments that are based on unobservable inputs about which little or no market data exists and are measured at a net asset value. Assets valued utilizing a net asset value are not required to be 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: $66,178 in 2024, $65,889 in 2025, $67,848 in 2026, $68,472 in 2027, $67,979 in 2028 and $336,789 in 2029 through 2033. The Company expects to make required cash contributions of $10,000 to its U.S. Pension Plans in 2024 based on a preliminary calculation by its actuary. The Company made no cash contributions to its U.S. Pension Plans in 2023 or 2022. Prior to the plan spin-off described above, on January 4, 2021, the Company made a contribution of $40,000 to the Hanesbrands Inc. Pension Plan. (c) Nonretirement Postemployment Benefit Plans Certain of the international plans, specifically those acquired in connection with the purchase of Champion Europe, are in substance nonretirement postemployment benefit plans, which are future liabilities funded through future operational results of the Company. However, for purposes of consolidation, the Company is including these plans within the defined benefit reporting. At December 30, 2023 and December 31, 2022, the total amounts accrued for these plans were $900 and $871, respectively and the total expense was $32, $9 and $8 for 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized income (loss) from continuing operations before income taxes of $(25,092), $352,738, and $581,075 for the years 2023, 2022 and 2021, respectively. The provision for income tax expense (benefit) computed by applying the U.S. statutory rate to income (loss) from continuing operations before income taxes as reconciled to the actual provisions was: Years Ended December 30, December 31, January 1, Income (loss) from continuing operations before income taxes: Domestic 1,681.5 % (45.0) % (3.3) % Foreign (1,581.5) 145.0 103.3 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 21.0 % 21.0 % 21.0 % State income tax 68.6 (1.6) (0.7) Tax on actual and planned remittances of foreign earnings (40.6) (1.6) 1.5 Tax on foreign earnings due to U.S. tax reform including measurement period adjustments (1) — — (0.3) Tax on foreign earnings (U.S. tax reform - GILTI and FDII) (48.7) 3.8 1.7 Foreign taxes less than U.S. statutory rate 182.4 (14.0) (12.3) Statutory stock deduction and other foreign adjustments (2) 338.7 22.5 — Employee benefits (15.5) 1.0 0.3 Changes in valuation allowance (503.3) 101.1 1.9 Release of unrecognized tax benefit reserves (0.6) (1.1) (0.9) Tax rate change 7.5 3.1 1.0 Tax provision adjustments and revisions to prior years' returns (4.1) 3.6 (1.6) Nondeductible expenses and tax exempt income, net 1.3 (1.2) (0.4) Domestic income tax credits 13.8 (0.7) (0.4) Other, net 8.9 1.3 (0.5) Taxes at effective worldwide tax rates 29.4 % 137.2 % 10.3 % (1) In 2020, the Company continued to analyze the impacts of the Tax Cuts and Jobs Act and subsequently issued regulations that have been published to help taxpayers interpret and apply the legislation. As a result of its analysis, the Company changed its estimate of the tax liability due in connection with the one-time mandatory transition tax and recognized a $4,668 income tax benefit in 2021. (2) In 2022, the Company recorded a deferred tax liability related to tax impairments of subsidiary stock in Switzerland which created a net operating loss carryforward. Pursuant to Swiss tax law, the loss created is subject to recapture for which a deferred tax liability was recorded in excess of the deferred tax asset in 2022. During 2023, the deferred tax liability related to the recapture amount from 2022 was reversed, resulting in a tax benefit. Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended December 30, 2023 Domestic $ 23,219 $ 29 $ 23,248 Foreign 52,812 (84,774) (31,962) State 1,348 — 1,348 $ 77,379 $ (84,745) $ (7,366) Year ended December 31, 2022 Domestic $ 15,188 $ 201,112 $ 216,300 Foreign 83,607 95,558 179,165 State (2,712) 91,154 88,442 $ 96,083 $ 387,824 $ 483,907 Year ended January 1, 2022 Domestic $ (15,176) $ 6,934 $ (8,242) Foreign 66,844 1,421 68,265 State (2,948) 3,032 84 $ 48,720 $ 11,387 $ 60,107 Years Ended December 30, December 31, January 1, Cash payments for income taxes $ 92,937 $ 95,331 $ 95,011 The deferred tax assets and liabilities at the respective year-ends were as follows: December 30, December 31, Deferred tax assets: Inventories $ 81,436 $ 92,347 Bad debt allowance 9,700 15,854 Accrued expenses 8,975 15,492 Employee benefits 45,906 55,687 Tax credits 18,289 10,859 Net operating loss and other tax carryforwards 517,959 562,326 Leasing 126,407 112,619 Property and equipment — 6,094 Interest carryforwards 94,204 50,695 Capitalized research costs 18,813 17,501 Other 1,970 1,029 Gross deferred tax assets 923,659 940,503 Less valuation allowances (749,704) (626,540) Less FIN48 / NOL Offset (10,543) — Deferred tax assets 163,412 313,963 Deferred tax liabilities: Derivatives 855 13,781 Property and equipment 7,897 — Leasing 112,973 101,558 Accrued tax on unremitted foreign earnings 29,138 26,128 Intangibles 37,360 41,331 Statutory impairment 5,849 247,360 Prepaids 18 877 Deferred tax liabilities 194,090 431,035 Net deferred tax liabilities $ (30,678) $ (117,072) 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, the Company believes it is more likely than not it 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 were as follows: January 2, 2021 $ 204,854 Charged to income tax expense 4,343 Charged to other accounts (1) 97,024 January 1, 2022 $ 306,221 Charged to income tax expense 356,740 Charged to other accounts (1) (36,421) December 31, 2022 $ 626,540 Charged to income tax expense 125,911 Charged to other accounts (1) (2,747) December 30, 2023 $ 749,704 (1) Charges to other accounts include the effects of foreign currency translation and changes to valuation allowances as a result of intraperiod tax allocations. As of December 30, 2023, the valuation allowance for deferred tax assets was $749,704, made up of $309,410 for foreign loss carryforwards, $36,379 for other foreign deferred tax assets, $179,023 for U.S. federal and state operating loss carryforwards, and $224,892 for other U.S. federal and state deferred tax assets. The net change in the total valuation allowance for 2023 was $123,164, which relates to an increase of $2,663 for foreign loss carryforwards, an increase of $15,151 for other foreign deferred tax assets, an increase of $139,218 for U.S. federal and state operating loss carryforwards and a decrease of $33,868 for other U.S. federal and state deferred tax assets. The domestic net increase reflects a full valuation allowance recorded against U.S. federal and state deferred tax assets in 2023. As of December 30, 2023, the Company concluded that, based on its evaluation of all available positive and negative evidence, its U.S. federal and state deferred tax assets were not more likely than not realizable. In making this determination, the Company evaluated positive evidence, including its projections of future taxable income which demonstrate a long-term return to profitability in the U.S., and negative evidence, including recent tax losses incurred and expected near term tax losses in connection with its domestic operations and the lack of sufficient taxable temporary differences expected to reverse in future periods, and determined that the negative evidence outweighed the positive. At December 30, 2023, the Company had gross foreign net operating loss carryforwards of approximately $1,174,678 (on a tax return basis) which are subject to expiration as follows: Fiscal Year: 2024 $ 2,271 2025 2,114 2026 2,652 2027 4,386 2028 1,490 Thereafter 1,161,765 At December 30, 2023, the Company had domestic tax credit carryforwards totaling $18,037, which expire beginning after 2023. At December 30, 2023, the Company had gross U.S. federal, state and foreign interest carryforwards of approximately $330,347, $188,279 and $63,791 (on a tax return basis), respectively, which carry forward indefinitely. At December 30, 2023, the Company had gross U.S. federal and state net operating loss carryforwards of approximately $622,291 and $1,460,506 (on a tax return basis), respectively, which expire beginning after 2023. During 2022, the Company recorded $696,028 of additional foreign net operating losses due to tax-deductible impairments in Switzerland and Luxembourg. These losses were subject to recapture in Switzerland and Luxembourg such that they would have been taxable in a future year, therefore deferred tax liabilities were recorded in 2022. During 2023, actions were taken by the Company related to the deferred tax liabilities for the losses subject to recapture in Switzerland and Luxembourg. As a result, the deferred tax liabilities established in 2022 were reversed in 2023, resulting in an income tax benefit of $85,122. The Company has determined that a portion of the Company’s unremitted foreign earnings as of December 30, 2023, totaling approximately $802,522, 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 December 30, 2023, the Company has accrued $27,008 of income taxes with respect to the $802,522 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 impractical to calculate. In 2023, 2022, and 2021, the Company recognized reductions of unrecognized tax benefits for tax positions of prior years of $483, $311, and $12,599, respectively. In 2023, 2022, and 2021, income tax benefits recognized in connection with the expiration of statutes of limitations were $2,814, $7,191, and $147, respectively. The Company believes it is reasonably possible that the amount of unrecognized tax benefits may decrease by $23,862 within the next 12 months due to expirations in statutes of limitations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at January 2, 2021 (gross balance of $46,645) $ 45,686 Additions based on tax positions related to the current year 3,231 Additions based on tax positions of prior years 3,401 Lapse of statute of limitations (147) Reductions for tax positions of prior years (12,599) Balance at January 1, 2022 (gross balance of $40,706) $ 39,572 Adjustments related to prior year ending balance 1,138 Additions based on tax positions related to the current year 2,857 Additions based on tax positions of prior years 798 Lapse of statute of limitations (7,191) Reductions for tax positions of prior years (311) Balance at December 31, 2022 (gross balance of $37,818) $ 36,863 Additions based on tax positions related to the current year 2,994 Additions based on tax positions of prior years 646 Lapse of statute of limitations (2,814) Reductions for tax positions of prior years (483) Balance at December 30, 2023 (gross balance of $38,156) $ 37,206 At December 30, 2023, the balance of the Company’s unrecognized tax benefits, which would, if recognized, affect the Company’s annual effective tax rate was $26,844. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company recognized $509, $81 and $933 in 2023, 2022 and 2021, respectively, for interest and penalties classified as income tax expense (benefit) in the Consolidated Statements of Operations. At December 30, 2023 and December 31, 2022, the Company had a total of $6,805 and $6,303, respectively, of interest and penalties accrued related to unrecognized tax benefits. The Company files U.S. federal income tax returns, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. The Company remains subject to U.S. federal tax examinations for tax years 2018 through 2023. The Company is also subject to examination by various state and international tax authorities. The tax years subject to examination vary by jurisdiction. The Company regularly assesses the outcomes of both ongoing and future examinations for the current or prior years to ensure the Company’s provision for income taxes is sufficient. The Company recognizes liabilities based on estimates of whether additional taxes will be due and believes its reserves are adequate in relation to any potential assessments. The outcome of any one examination, some of which may conclude during the next 12 months, is not expected to have a material impact on the Company’s financial position or results of operations. The Company operates in a Free Trade Zone governed and established by law in Costa Rica and the regulations thereunder. During 2023, the Company received approval for the Free Trade Zone which cannot be arbitrarily revoked. The Free Trade Zone will continue to be applicable so long as it continues to meet the legal obligations and commitments. This resulted in a rate benefit of $45,000 for 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [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 $387,263 in 2024, $8,879 in 2025 and $7,103 in 2026. License Agreements The Company is party to several royalty-bearing license agreements for the use of third-party trademarks in certain of its 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 Operations 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 Operations as the related sales are made. The Company has reviewed all license agreements and has concluded that there are no liabilities recorded at inception of the agreements. During 2023, 2022 and 2021, the Company incurred royalty expense of approximately $94,557, $103,204 and $100,281, respectively. Minimum amounts due under the license agreements are approximately $51,329 in 2024, $30,738 in 2025, $26,685 in 2026, $18,406 in 2027, $14,481 in 2028 and $32,593 thereafter. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company is authorized to issue up to 2,000,000 shares of common stock, par value $0.01 per share, and up to 50,000 shares of preferred stock, par value $0.01 per share, and the Company’s Board of Directors may, without stockholder approval, increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company is authorized to issue. At December 30, 2023 and December 31, 2022, 350,138 and 349,009 shares, respectively, of common stock were issued and outstanding and no shares of preferred stock were issued or outstanding. On February 2, 2022, the Company’s Board of Directors approved a new share repurchase program for up to $600,000 of shares to be repurchased in open market transactions or privately negotiated 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 allows the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for the Company, the Company’s directors and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. The new program replaced the Company’s previous share repurchase program for up to 40,000 shares that was originally approved on February 6, 2020. Unless terminated earlier by the Company’s Board of Directors, the new program will expire on December 28, 2024. The Company did not purchase any shares of the Company’s common stock under the February 6, 2020 share repurchase program during 2021 or during 2022 through the expiration of the program on February 2, 2022. Under the new program, the Company entered into transactions to repurchase 1,577 shares at a weighted average repurchase price of $15.84 per share for the year ended December 31, 2022. The shares were repurchased at a total cost of $25,018 including broker’s commissions of $31. The Company did not repurchase any shares under the new program during 2023. At December 30, 2023, the remaining repurchase authorization under the new program totaled $575,013. Share repurchases are currently prohibited under the Senior Secured Credit Facility. See Note "Debt" for additional information. Dividends In 2021 and 2022, 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 2021 and 2022, respectively. In January 2023, the Company’s Board of Directors eliminated the Company’s quarterly cash dividend as the Company shifted its capital allocation strategy to focus the use of all its free cash flow (cash from operations less capital expenditures) on reducing debt and bringing its leverage back to a range that is no greater than two to three times on a net debt-to-adjusted EBITDA basis. The declaration of any future dividends and, if declared, the amount of any such dividends, will be subject to the Company’s actual future earnings, capital requirements, regulatory restrictions, debt covenants, other contractual restrictions and to the discretion of the Company’s Board of Directors. The payment of annual dividends is currently prohibited under the Senior Secured Credit Facility. See Note "Debt" for additional information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 30, 2023 | |
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 January 1, 2022 $ (134,001) $ 5,244 $ (569,161) $ 146,315 $ (551,603) Amounts reclassified from accumulated other comprehensive loss (13,473) 14,927 21,224 3,319 25,997 Current-period other comprehensive income (loss) activity (81,329) (11,462) 110,584 (4,195) 13,598 Total other comprehensive income (loss) (94,802) 3,465 131,808 (876) 39,595 Balance at December 31, 2022 $ (228,803) $ 8,709 $ (437,353) $ 145,439 $ (512,008) Amounts reclassified from accumulated other comprehensive loss — (11,190) 16,315 1,868 6,993 Current-period other comprehensive income (loss) activity 15,321 (3,486) 1,203 (334) 12,704 Total other comprehensive income (loss) 15,321 (14,676) 17,518 1,534 19,697 Balance at December 30, 2023 $ (213,482) $ (5,967) $ (419,835) $ 146,973 $ (492,311) (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. 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 (loss). 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 December 30, December 31, January 1, Write-off of cumulative translation associated with sale of business Income (loss) from discontinued operations, net of tax $ — $ 13,473 $ — Gain (loss) on forward foreign exchange contracts designated as cash flow hedges Cost of sales 4,357 11,336 (15,301) Income tax (1,781) (3,401) 4,105 Income (loss) from discontinued operations, net of tax — (232) (2,890) Net of tax 2,576 7,703 (14,086) Gain on interest rate contracts designated as cash flow hedges Interest expense, net 5,279 — — Income tax — — — Net of tax 5,279 — — Gain (loss) on cross-currency swap contracts designated as cash flow hedges Selling, general and administrative expenses 973 (20,016) (12,155) Interest expense, net 581 (5,940) (3,556) Income tax — — 4,061 Net of tax 1,554 (25,956) (11,650) Amortization of deferred actuarial loss and prior service cost Other expenses (16,315) (20,809) (25,671) Income tax (87) 52 6,461 Income (loss) from discontinued operations, net of tax — — 560 Pension activity associated with sale of business Income (loss) from discontinued operations, net of tax — (460) — Net of tax (16,402) (21,217) (18,650) Total reclassifications $ (6,993) $ (25,997) $ (44,386) |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Financial Instruments and Risk Management [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The Company uses forward foreign exchange contracts and has used cross-currency swap contracts to manage its exposures to movements in foreign exchange rates primarily related to the Australian dollar, Euro, Canadian dollar and Mexican peso and uses interest rate contracts to manage its exposures to movements in interest rates. The Company has also used a combination of cross-currency swap contracts and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in its European subsidiaries. Hedge Type December 30, December 31, U.S. dollar equivalent notional amount of derivative instruments: Forward foreign exchange contracts Cash Flow and $ 308,760 $ 397,908 Interest rate contracts Cash Flow $ 900,000 $ — Cross-currency swap contracts Cash Flow $ — $ 352,920 Cross-currency swap contracts Net Investment $ — $ 335,940 Fair Values of Derivative Instruments The fair values of derivative instruments related to forward foreign exchange contracts, cross-currency swap contracts and interest rate contracts recognized in the Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value December 30, December 31, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 57 $ 1,892 Interest rate contracts Other current assets 23 — Cross-currency swap contracts Other current assets — 1,033 Forward foreign exchange contracts Other noncurrent assets — 110 Cross-currency swap contracts Other noncurrent assets — 16,477 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 142 5,402 Total derivative assets 222 24,914 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities and other: Other (2,508) (1,263) Cross-currency swap contracts Accrued liabilities and other: Other — (252) Forward foreign exchange contracts Other noncurrent liabilities (290) (178) Interest rate contracts Other noncurrent liabilities (5,929) — Cross-currency swap contracts Other noncurrent liabilities — (27,753) Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities and other: Other (2,784) (4,841) Total derivative liabilities (11,511) (34,287) Net derivative liability $ (11,289) $ (9,373) Cash Flow Hedges The Company uses forward foreign exchange contracts and has used cross-currency swap contracts to reduce the effect of fluctuating foreign currencies on 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 also uses interest rate contracts to reduce the effect of the variability in future interest payments on variable-rate debt to lock in certainty of future cash flows. On April 1, 2021, in connection with a reduction in the amount of the 3.5% Senior Notes designated in the European net investment hedge discussed below, the Company entered into three pay-fixed rate, receive-fixed rate cross-currency swap contracts with a total notional amount of €300,000. The Company designated these cross-currency swap contracts to hedge the undesignated portion of the foreign currency cash flow exposure related to the Company’s 3.5% Senior Notes. These cross-currency swap contracts swapped Euro-denominated interest payments for U.S. dollar-denominated interest payments, thereby economically converting €300,000 of the Company’s €500,000 fixed-rate 3.5% Senior Notes to a fixed-rate 4.7945% USD-denominated obligation. In February 2023, in connection with the redemption of the 3.5% Senior Notes, the Company unwound these cross-currency swap contracts, which had an original maturity date of June 15, 2024. The Company paid $30,935 to settle the cross-currency swap contracts, which was reported in “Net cash from operating activities” in the Consolidated Statements of Cash Flows. The remaining gain in AOCI of $1,254 was released into earnings at the time of settlement and is recorded in the “Interest expense, net” line in the Consolidated Statements of Operations. The Company had no cross-currency swap contracts designated as cash flow hedges as of December 30, 2023. In March 2023, the Company entered into an interest rate contract with a total notional amount of $900,000, which amortizes down to $600,000 on March 31, 2025. The Company designated this interest rate contract, which matures on March 31, 2026, to hedge the variability in contractually specified interest rates above 50 basis points associated with future interest payments on a portion of the Company’s variable-rate term loans to lock in certainty of future cash flows. The Company expects to reclassify into earnings during the next 12 months a net gain from AOCI of approximately $8,902. The Company is hedging exposure to the variability in future foreign currency-denominated cash flows for forecasted transactions over the next 17 months and the variability in future interest payments on debt over the next 27 months. The effect of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations and AOCI is as follows: Amount of Gain (Loss) Years Ended December 30, December 31, January 1, Forward foreign exchange contracts $ 28 $ 10,843 $ 12,170 Interest rate contracts (649) — — Cross-currency swap contracts (2,865) (22,305) (14,942) Total $ (3,486) $ (11,462) $ (2,772) Location of Gain (Loss) Amount of Gain (Loss) Years Ended December 30, December 31, January 1, Forward foreign exchange contracts (1) Cost of sales $ 4,357 $ 11,336 $ (15,301) Forward foreign exchange contracts (1) Income (loss) from discontinued operations, net of tax — (307) (3,542) Interest rate contracts Interest expense, net 5,279 — — Cross-currency swap contracts (1) Selling, general and administrative expenses 973 (20,016) (12,155) Cross-currency swap contracts (1) Interest expense, net 581 (5,940) (3,556) Total $ 11,190 $ (14,927) $ (34,554) (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. The following table presents the amounts in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded: Years Ended December 30, December 31, January 1, Cost of sales $ 3,740,113 $ 4,012,542 $ 4,149,541 Selling, general and administrative expenses $ 1,607,628 $ 1,701,563 $ 1,853,971 Interest expense, net $ 275,354 $ 157,073 $ 163,067 Income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) 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 had an original maturity date of May 15, 2024, swapped 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 the full amount of its 3.5% Senior Notes with a carrying value of €500,000, which was a nonderivative financial instrument, as a hedge of a portion of the beginning balance of the Company’s European net investment. As of April 1, 2021, the Company reduced the amount of its 3.5% Senior Notes designated in the European net investment hedge from €500,000 to €200,000. As of December 31, 2022, the U.S. dollar equivalent carrying value of Euro-denominated long-term debt designated as a partial European net investment hedge was $214,110. In February 2023, in connection with the redemption of the 3.5% Senior Notes, the Company de-designated the remainder of the 3.5% Senior Notes in the European net investment hedge and unwound these cross-currency swap contracts. The Company received $18,942 to settle the cross-currency swap contracts, which was reported in “Net cash from investing activities” in the Consolidated Statements of Cash Flows. There was a cumulative gain of $5,525 from the designated portion of the 3.5% Senior Notes and a cumulative gain of $19,001 from the cross-currency swap contracts that will remain in cumulative translation adjustment, a component of AOCI, until the net investment in the Company’s EUR-functional subsidiaries is sold, liquidated, or substantially liquidated. The Company had no derivative or nonderivative financial instruments designated as net investment hedges as of December 30, 2023. 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 are as follows: Amount of Gain (Loss) Recognized in AOCI Years Ended December 30, December 31, January 1, Euro-denominated long-term debt $ (469) $ 9,716 $ 24,928 Cross-currency swap contracts 531 14,497 13,670 Total $ 62 $ 24,213 $ 38,598 The effect of derivative and non-derivative instruments designated as net investment hedges on the Consolidated Statements of Operations are as follows: Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Years Ended December 30, December 31, January 1, Euro-denominated long-term debt Income (loss) from discontinued operations, net of tax $ — $ (13,348) $ — Cross-currency swap contracts Income (loss) from discontinued operations, net of tax — (2,505) — Cross-currency swap contracts (amounts excluded from effectiveness testing) Interest expense, net 960 8,368 7,389 Total $ 960 $ (7,485) $ 7,389 The following table presents the amounts in the Consolidated Statements of Operations in which the effects of net investment hedges are recorded: Years Ended December 30, December 31, January 1, Income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) Interest expense, net (amounts excluded from effectiveness testing) $ 275,354 $ 157,073 $ 163,067 Mark to Market Hedges Derivatives used in mark to market hedges are not designated as hedges under the accounting standards. The Company uses forward 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. Forward 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. 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 instruments not designated as hedges on the Consolidated Statements of Operations is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Years Ended December 30, December 31, January 1, Forward foreign exchange contracts Cost of sales $ (6,499) $ (16,557) $ 24,087 Forward foreign exchange contracts Selling, general and 222 (290) 2,784 Forward foreign exchange contracts Income (loss) from discontinued operations, net of tax — — 4,706 Total $ (6,277) $ (16,847) $ 31,577 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [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 December 30, 2023 and December 31, 2022, 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, interest rate 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 and interest rate derivative contracts are determined using the cash flows of the contracts, discount rates to account for the passage of time, current foreign exchange and interest rate market data and credit risk, which are all based on inputs readily available in public markets and are categorized as Level 2. The fair value of deferred compensation plan liabilities is based on readily available current market data and is categorized as Level 2. The fair values of defined benefit pension plan investment assets include: certain U.S. equity securities, foreign equity securities and cash and cash equivalents that are determined based on quoted prices in public markets categorized as Level 1; certain U.S. equity securities, 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 categorized within the fair value hierarchy. There were no changes during 2023 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 December 30, 2023, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring basis or non-recurring basis. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis. Assets (Liabilities) at Fair Value as of December 30, 2023 Total Quoted Prices In Significant Significant Defined benefit pension plan investment assets: U.S. equity securities $ 31,435 $ 31,435 $ — $ — Foreign equity securities 1,469 1,469 — — Cash and other 8,272 8,272 — — Total plan assets in the fair value hierarchy 41,176 41,176 — — Plan assets measured at net asset value: (1) Hedge fund of funds 77,707 U.S. equity securities 142,951 Foreign equity securities 177,459 Debt securities 326,002 Real estate 57,065 Total plan assets measured at net asset value 781,184 Total plan assets 822,360 Derivative contracts: Forward foreign exchange contracts - assets 199 — 199 — Interest rate contracts - assets 23 — 23 — Forward foreign exchange contracts - liabilities (5,582) — (5,582) — Interest rate contracts - liabilities (5,929) — (5,929) — Total derivative contracts (11,289) — (11,289) — Deferred compensation plan liability (16,001) — (16,001) — Total $ 795,070 $ 41,176 $ (27,290) $ — (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 31, 2022 Total Quoted Prices In Significant Significant Defined benefit pension plan investment assets: U.S. equity securities $ 158,305 $ 158,305 $ — $ — Foreign equity securities 33,713 33,713 — — Debt securities 81,812 81,812 — — Cash and other 11,045 11,045 — — Total plan assets in the fair value hierarchy 284,875 284,875 — — Plan assets measured at net asset value: (1) Hedge fund of funds 313,521 Foreign equity securities 135,076 Debt securities 670 Real estate 65,364 Commodities 16,738 Total plan assets measured at net asset value 531,369 Total plan assets 816,244 Derivative contracts: Forward foreign exchange contracts - assets 7,404 — 7,404 — Cross-currency swap contracts - assets 17,510 — 17,510 — Forward foreign exchange contracts - liabilities (6,282) — (6,282) — Cross-currency swap contracts - liabilities (28,005) — (28,005) — Total derivative contracts (9,373) — (9,373) — Deferred compensation plan liability (16,096) — (16,096) — Total $ 790,775 $ 284,875 $ (25,469) $ — (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 The carrying amounts of cash and cash equivalents, trade accounts receivable and accounts payable approximated fair value as of December 30, 2023 and December 31, 2022. The fair value of debt, which is classified as a Level 2 liability, was $3,259,299 and $3,697,856 as of December 30, 2023 and December 31, 2022, respectively. Debt had a carrying value of $3,336,750 and $3,872,275 as of December 30, 2023 and December 31, 2022, respectively. The fair values were estimated using quoted market prices as provided in secondary markets, which consider the Company’s credit risk and market related conditions. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S.-based outlet stores, U.S. Sheer Hosiery business and certain sales from its supply chain to the European Innerwear business which was sold on March 5, 2022. In the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential transformation plan and completed the sale to AllStar on September 29, 2023. See Note “Assets and Liabilities Held for Sale” for additional information regarding the U.S. Sheer Hosiery business and the sale of the European Innerwear business. The Company considers its chief executive officer to be the Company’s chief operating decision maker. The Company’s chief operating decision maker manages business operations, evaluates performance and allocates resources based on the segments’ net revenues and operating income. The Company reports inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. The Company does not report its other assets by segment as that information is not used by the chief operating decision maker in assessing segment performance. 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. • Activewear includes sales in the United States of branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel. • International primarily includes sales of the Company’s innerwear and activewear products outside the United States, primarily in Australia, Europe, Asia, Latin America and Canada. The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, 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 December 30, December 31, January 1, Net sales: Innerwear $ 2,415,032 $ 2,429,966 $ 2,719,788 Activewear 1,251,913 1,555,062 1,679,639 International 1,748,428 1,914,268 2,066,249 Other 221,150 334,354 335,564 Total net sales $ 5,636,523 $ 6,233,650 $ 6,801,240 Years Ended December 30, December 31, January 1, Segment operating profit: Innerwear $ 418,226 $ 388,586 $ 573,852 Activewear 20,517 153,710 236,400 International 210,651 283,036 339,317 Other (7,902) 17,019 30,922 Total segment operating profit 641,492 842,351 1,180,491 Items not included in segment operating profit: General corporate expenses (207,037) (232,975) (219,984) Restructuring and other action-related charges (115,904) (59,858) (131,710) Amortization of intangibles (29,769) (29,973) (31,069) Total operating profit 288,782 519,545 797,728 Other expenses (38,520) (9,734) (53,586) Interest expense, net (275,354) (157,073) (163,067) Income (loss) from continuing operations before income taxes $ (25,092) $ 352,738 $ 581,075 The Company incurred restructuring and other action-related charges that were reported in the following lines in the Consolidated Statements of Operations: Years Ended December 30, December 31, January 1, Cost of sales $ 72,140 $ 17,025 $ 10,098 Selling, general and administrative expenses 43,764 42,833 121,612 Total included in operating profit 115,904 59,858 131,710 Other expenses 8,350 — 45,699 Interest expense, net (1,254) — — Total included in income (loss) from continuing operations before income taxes 123,000 59,858 177,409 Income tax (expense) benefit 85,122 (413,766) 53,665 Total restructuring and other action-related charges $ 37,878 $ 473,624 $ 123,744 The components of restructuring and other action-related charges were as follows: Years Ended December 30, December 31, January 1, Global Champion performance plan $ 88,045 $ — $ — Full Potential transformation plan: Technology 8,953 11,922 4,617 Headcount actions and related severance 6,105 8,221 23,191 Supply chain segmentation 4,151 17,982 5,419 Professional services 3,819 23,994 44,617 (Gain) loss on sale of business and classification of assets held for sale 3,641 (3,535) 38,364 Impairment of intangible assets — — 7,302 Other 1,190 1,274 8,200 Total Full Potential transformation plan 27,859 59,858 131,710 Total included in operating profit 115,904 59,858 131,710 Loss on extinguishment and refinancing of debt included in other expenses 8,466 — 45,699 Gain on final settlement of cross currency swap contracts included in other expenses (116) — — Gain on final settlement of cross currency swap contracts included in interest expense, net (1,254) — — Total included in income (loss) from continuing operations before income taxes 123,000 59,858 177,409 Discrete tax (expense) benefit 85,122 (422,918) 27,147 Tax effect on actions — 9,152 26,518 Total included in income tax (expense) benefit 85,122 (413,766) 53,665 Total restructuring and other action-related charges $ 37,878 $ 473,624 $ 123,744 In 2023, restructuring and other action-related charges within operating profit included $88,045 of charges associated with the Company’s global Champion performance plan. The global Champion performance plan includes actions and related charges regarding the Company’s accelerated and enhanced strategic initiatives to further streamline the operations and position the brand for long term profitable growth and the evaluation of strategic alternatives for the global Champion business. The charges included $59,432 of inventory write-downs related to the execution of the channel, mix and product segmentation strategy including the exit of discontinued programs, which are reflected in the “Cost of Sales” line in the Consolidated Statements of Operations. These charges also include $28,613 related to professional fees, supply chain segmentation, store closures, severance and other costs, of which $7,532 are reflected in the “Cost of Sales” line in the Consolidated Statements of Operations and $21,081 are reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. Restructuring and other action-related charges within operating profit included $27,859, $59,858 and $131,710 of charges related to the implementation of the Company’s Full Potential transformation plan in 2023, 2022 and 2021, respectively. Full Potential transformation plan charges in 2023 included the loss, net of proceeds, of $3,641 resulting from the sale of the Company’s U.S. Sheer Hosiery business to AllStar on September 29, 2023, which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. Full Potential transformation plan charges in 2022 included a non-cash gain of $3,535 which is reflected in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations, to adjust the valuation allowance related to the U.S. Sheer Hosiery business resulting primarily from changes in carrying value due to changes in working capital. See Note “Assets and Liabilities Held for Sale” for additional information regarding the U.S. Sheer Hosiery business. Full potential transformation plan charges in 2023, 2022 and 2021 also included charges of $4,151, $17,982 and $7,815, respectively, which are reflected in the “Cost of Sales” line in the Consolidated Statements of Operations, related to supply chain segmentation charges to restructure and position the Company’s manufacturing network to align with its Full potential transformation plan demand trends. Additionally, Full Potential transformation plan charges in 2021 included impairment charges of $7,302, which are reflected in the “Selling, general and administrative expenses” line of the Consolidated Statements of Operations, related to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale. The remaining Full Potential transformation plan restructuring and other action-related charges within operating profit include technology charges which relate to the implementation of the Company’s technology modernization initiative including the implementation of a global enterprise resource planning platform, charges related to headcount actions and related severance resulting from operating model initiatives and charges for professional services primarily including consulting and advisory services related to the implementation of the Full Potential transformation plan. In 2023, the Company recorded a charge of $8,466 in restructuring and other action-related charges related to the redemption of its 4.625% Senior Notes and 3.5% Senior Notes. The charge, which is recorded in the “Other expenses” line in the Consolidated Statements of Operations, included a payment of $4,632 for a required make-whole premium related to the redemption of the 3.5% Senior Notes and a non-cash charge of $3,834 for the write-off of unamortized debt issuance costs related to the redemption of the 4.625% Senior Notes and the 3.5% Senior Notes. Additionally, in 2023, in connection with the redemption of the 3.5% Senior Notes, the Company unwound the related cross-currency swap contracts previously designated as cash flow hedges and the remaining gain in AOCI of $1,254 was released into earnings at the time of settlement which is recorded in the “Interest expense, net” line in the Consolidated Statements of Operations. See Note “Financial Instruments” for additional information. In 2021, the Company recorded a charge of $45,699 in restructuring and other action-related charges related to the 2021 refinancing of the Senior Secured Credit Facility and the redemption of the 5.375% Senior Notes. The charge, which is reported in the “Other expenses” line in the Consolidated Statements of Operations, included a payment of $34,840 for a make-whole premium in connection with the redemption of the 5.375% Senior Notes, a non-cash charge of $8,899 for the write-off of unamortized debt issuance costs related to the redemption of the 5.375% Senior Notes and the 2021 refinancing of the Senior Secured Credit Facility and $1,960 in fees related to the 2021 refinancing. See Note “Debt” for additional information. Restructuring and other action-related charges in 2023 included discrete tax benefits of $85,122, of which $80,859 was recorded in the fourth quarter of 2023, representing an adjustment to non-cash reserves established at December 31, 2022 related to deferred taxes for Swiss statutory impairments, which are not indicative of the Company’s core operations. In the fourth quarter of 2022, the Company recorded a non-cash discrete tax charge of $422,918 to reflect a full valuation allowance against the Company’s U.S. federal and state deferred tax assets. As of December 31, 2022, the Company concluded that, based on its evaluation of all available positive and negative evidence, its U.S. federal and state deferred tax assets were no longer more likely than not realizable. In making this determination, the Company evaluated positive evidence, including its projections of future taxable income which demonstrate a long-term return to profitability in the U.S., and negative evidence, including recent tax losses incurred and expected near term tax losses in connection with its domestic operations and the lack of sufficient taxable temporary differences expected to reverse in future periods, and determined that the negative evidence outweighed the positive. Restructuring and other action-related charges in 2022 and 2021 also included the tax effect on actions, which represents the applicable effective tax rate on the restructuring and other action-related charges based on the jurisdiction of where the charges were incurred. As of December 31, 2022, the Company had an accrual of $16,170 for expected benefit payments related to actions taken in prior years. During 2023, the Company approved actions to align the Company’s workforce and manufacturing and distribution network with its Full Potential transformation plan initiatives and actions related to the Company’s global Champion performance plan resulting in charges of $13,240 for employee termination and other benefits for employees affected by the actions. These charges included $3,631 in the “Cost of sales” line in the Consolidated Statements of Operations that are reflected in the “Supply chain segmentation” and the “Global Champion performance plan” lines in the restructuring and other action-related charges table above and $9,609 in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations that are reflected in the “Headcount actions and related severance” and the “Global Champion performance plan” lines in the restructuring and other action-related charges table above. During 2023, the Company made benefit payments and other adjustments of $18,520, resulting in an ending accrual of $10,890 which is included in the “Accrued liabilities” line of the Consolidated Balance Sheets at December 30, 2023. December 30, 2023 Innerwear Activewear International Other Unallocated Total Assets Assets: Inventories $ 635,361 $ 404,972 $ 302,197 $ 25,488 $ — $ 1,368,018 All other assets — — — — 4,272,296 4,272,296 Total assets $ 5,640,314 December 31, 2022 Innerwear Activewear International Other Unallocated Total Assets Assets: Inventories $ 918,104 $ 665,500 $ 364,231 $ 31,837 $ — $ 1,979,672 Assets held for sale — — — — 13,327 13,327 All other assets — — — — 4,510,877 4,510,877 Total assets $ 6,503,876 Years Ended December 30, December 31, January 1, Depreciation and amortization expense: Innerwear $ 33,712 $ 26,518 $ 25,816 Activewear 18,107 24,200 23,562 International 18,324 19,670 22,476 Other 2,725 3,341 4,578 72,868 73,729 76,432 Corporate 32,169 32,538 33,698 Total depreciation and amortization expense $ 105,037 $ 106,267 $ 110,130 Sales to Walmart were substantially in the Innerwear and Activewear segments. Sales to Walmart represented 18%, 16% and 17% of total net sales in 2023, 2022 and 2021, respectively. |
Geographic Area Information
Geographic Area Information | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Geographic Area Information Sales And Long Lived Assets By Geographical Area [Abstract] | |
Geographic Area Information | Geographic Area Information Years Ended or at December 30, December 31, January 1, Sales Property, Net Sales Property, Net Sales Property, Net Americas $ 4,109,575 $ 293,176 $ 4,532,595 $ 325,957 $ 4,995,230 $ 325,188 Asia Pacific 1,029,498 90,110 1,149,954 85,966 1,257,037 85,538 Europe 488,032 31,080 534,892 30,481 530,440 30,675 Other 9,418 — 16,209 — 18,533 — $ 5,636,523 $ 414,366 $ 6,233,650 $ 442,404 $ 6,801,240 $ 441,401 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 |
Dec. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) The following table presents the summarized unaudited quarterly financial data of the Company for the fourth quarters ended December 30, 2023 and December 31, 2022. See the Company’s Condensed Consolidated Statements of Operations in its Quarterly Reports on Form 10-Q for the quarters ended April 1, 2023, July 1, 2023 and September 30, 2023 for additional quarterly information related to 2023 and 2022. Quarters Ended December 30, December 31, Net sales $ 1,296,827 $ 1,473,286 Cost of sales 803,158 971,309 Gross profit 493,669 501,977 Selling, general and administrative expenses 397,572 441,642 Operating profit 96,097 60,335 Other expenses 7,375 3,646 Interest expense, net 69,688 49,665 Income before income taxes 19,034 7,024 Income tax expense (benefit) (58,907) 425,132 Net income (loss) $ 77,941 $ (418,108) Earnings (loss) per share: Basic $ 0.22 $ (1.19) Diluted $ 0.22 $ (1.19) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||||
Net income (loss) | $ 77,941 | $ (418,108) | $ (17,726) | $ (127,204) | $ 77,224 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal period policy | The Company’s fiscal year ends on the Saturday closest to December 31. All references to “2023”, “2022” and “2021” relate to the 52-week fiscal year ended on December 30, 2023, December 31, 2022 and January 1, 2022, 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation, except for certain intercompany sales and related profit and receivables from the Company’s supply chain to the European Innerwear business, which was classified as discontinued operations in the consolidated financial statements in 2021 and 2022 and was sold on March 5, 2022. See Note “Assets and Liabilities Held for Sale” for additional information. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from these estimates. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss (“AOCI”) within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in both the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Operations. |
Sales Recognition and Incentives | 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 Operations 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 Operations. 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. Additionally, the Company has agreements with certain of its largest customers for digital advertising and the cost of these programs are expensed in the period the advertising and promotional activity first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations of $166,942, $208,881 and $208,998 in 2023, 2022 and 2021, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs Revenue received for shipping and handling costs is included in net sales and was $11,299, $13,578 and $19,461 in 2023, 2022 and 2021, 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 $378,541, $415,989 and $447,131 in 2023, 2022 and 2021, respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. |
Research and Development | Research and Development Research and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line in the Consolidated Statements of Operations. 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 $35,961, $38,911 and $39,320 in 2023, 2022 and 2021, respectively. |
Defined Contribution Benefit Plans | Defined Contribution Benefit Plans The Company sponsors 401(k) plans as well as other defined contribution benefit plans. Expense for these plans was $25,341, $26,296 and $37,979 in 2023, 2022 and 2021, 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. |
Accounts Receivable Valuation | Accounts Receivable Valuation Accounts receivable are stated at 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 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 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 Sales” line in our Consolidated Statements of Operations 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 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 accounts for leases under the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. The Company determines whether an arrangement is a lease at inception. At inception, a right of use asset and lease liability is recorded. 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. 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. In light of temporary store closures related to the COVID-19 pandemic, the Company took actions in 2021 and 2022 with respect to certain of its existing leases, including withholding rent payments and engaging 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. |
Trademarks and Other Identifiable Intangible Assets | Trademarks and Other Identifiable Intangible Assets The primary identifiable intangible assets of the Company are trademarks, license 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 historical experience, the level of maintenance expenditures required to obtain future cash flows, future business plans and the period over which the asset will be economically useful. Trademarks determined to have finite lives are generally amortized over periods ranging from 10 to 20 years, license agreements are generally amortized over periods ranging from three four 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 additionally if 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. 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 | 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 additionally if 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. |
Cloud Computing Arrangements | Cloud Computing Arrangements The Company’s cloud computing arrangements (“CCA”) include software licenses purchased from external vendors. Software license costs, implementation costs incurred during the application development stage and other costs meeting certain criteria are capitalized while all other costs are expensed as incurred. These assets are included in computer software in the “Trademarks and other identifiable intangibles, net” line in the Consolidated Balance Sheets and amortized on a straight-line basis over their assessed useful lives. See Note “Intangible Assets and Goodwill” for additional information. If a CCA does not include the purchase of a software license, the arrangement is accounted for as a service contract and the fees associated with the hosting service are expensed as incurred. Prepayments of these costs are included in the “Other current assets” line in the Consolidated Balance Sheets. Implementation costs incurred during the application development stage as well as costs meeting certain criteria are capitalized and expensed on a straight-line basis over the term of the hosting contracts, which range from two |
Insurance Reserves | Insurance Reserves The Company is self-insured for property, workers’ compensation, medical and other casualty programs up to certain stop-loss limits. Undiscounted liabilities for self-insured exposures are accrued at the present value of the expected aggregate losses below those limits and are based on a number of assumptions, including historical trends, actuarial assumptions and economic conditions. |
Stock-Based Compensation | Stock-Based Compensation The Company established the Hanesbrands Inc. Omnibus Incentive Plan (As Amended and Restated), (the “Omnibus Incentive Plan”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and 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 Operations. 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 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 AOCI based on the pre-tax adjustments to pension liabilities or assets recognized within other comprehensive income. Any tax effects remaining in AOCI 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 and has used cross-currency swap contracts to manage its exposures to movements in foreign exchange rates and uses interest rate contracts to manage its exposure to movements in interest rates. The Company has also used a combination of cross-currency swap contracts and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in certain European subsidiaries. The use of these derivative and nonderivative financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts. Depending on the nature of the underlying risk being hedged, these derivative and nonderivative financial instruments are accounted for either as cash flow, net investment or mark to market hedges against changes in the value of the hedged item. 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. The accounting for changes in fair value of a derivative instrument depends on whether the instrument has been designated and qualifies as part of a hedging relationship. The Company determines whether a derivative instrument meets the criteria for cash flow or net investment hedge accounting treatment on the date the derivative is executed. Derivatives accounted for as mark to market hedges are not designated as hedges for accounting purposes. 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 financial instruments to the hedged assets, liabilities, firm commitments, forecasted transactions or net investments. 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 at least a quarterly 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 as a deferred gain or loss in the “Accumulated other comprehensive loss” line in the Consolidated Balance Sheets. When the hedged item affects the statement of operations, the deferred gain or loss on the derivative instrument is reclassified from AOCI and recorded on the same line in the Consolidated Statements of Operations 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 gain or loss is reclassified from AOCI and recorded on the same line in the Consolidated Statements of Operations as the hedged item. Cash flows from derivatives designated as cash flow hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows. Net Investment Hedges For a net investment hedge, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated financial 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 financial instrument that is designated and highly effective as a net investment hedge is recorded as a deferred gain or loss in the cumulative translation adjustment component of AOCI, offsetting the translation gain or loss for 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 Operations. 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 Operations, which is where the gain or loss on the sale or substantial liquidation of the underlying net investment would be recorded. However, any deferred gain or loss 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 gain or loss is reclassified from AOCI and recorded in the “Other expenses” line in the Consolidated Statements of Operations. 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 foreign subsidiaries, and the cash paid or received from acquiring or selling the subsidiaries would typically be classified as investing. Mark to Market Hedges A derivative instrument whose change in fair value is used to hedge against changes in the value of a hedged item, but which is not designated as a hedge under the accounting standards, is accounted for as a mark to market hedge. These derivatives are recorded at fair value in the Consolidated Balance Sheets when the hedged item is recorded as an asset or liability and then are revalued each accounting period. Changes in the fair value of derivatives accounted for as mark to market hedges are reported in the “Cost of sales” and “Selling, general and administrative expenses” lines in the Consolidated Statements of Operations. Cash flows from derivatives not designated as hedges are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. |
Assets and Liabilities Acquired in Business Combinations | Assets and Liabilities Acquired in Business Combinations Business combinations are accounted for using the purchase method, which requires the Company to allocate the cost of an acquired business to the acquired assets and assumed liabilities based on their estimated fair values at the acquisition date. The Company recognizes the excess of an acquired business’ cost over the fair value of acquired assets and assumed liabilities as goodwill. Fair values are determined using the income approach based on market participant assumptions focusing on future cash flow projections and accepted industry standards. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements 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.” In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” The new accounting rules provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. In December 2022, the FASB deferred the expiration date of Topic 848 with the issuance of ASU 2022-06, “Reference Rate Reform: Deferral of the Sunset Date of Topic 848.” The new accounting rules extend the relief in Topic 848 beyond the cessation date of USD London Interbank Offered Rate (“LIBOR”). The new accounting rules must be adopted by the fourth quarter of 2024. 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 and does not currently intend to early adopt the new rules. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The new accounting rules require entities to apply “Revenue from Contracts with Customers (Topic 606)” to recognize and measure contract assets and contract liabilities in a business combination. The new accounting rules were effective for the Company in the first quarter of 2023. The adoption of the new accounting rules did not have any impact on the Company’s financial condition, results of operations, cash flows or disclosures. Derivatives and Hedging In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method.” The new accounting rules allow entities to expand the use of the portfolio layer method to all financial assets and designate multiple hedged layers within a single closed portfolio. The new accounting rules also clarify guidance related to hedge basis adjustments and the related disclosures for these adjustments. The new accounting rules were effective for the Company in the first quarter of 2023. As the Company does not currently have any fair value hedging programs that leverage the portfolio layer method, the adoption of the new accounting rules did not have any impact on the Company’s financial condition, results of operations, cash flows or disclosures. Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The new accounting rules create certain disclosure requirements for a buyer in a supplier finance program. The new accounting rules require qualitative and quantitative disclosures including key terms of the program, balance sheet presentation of related amounts, the obligation amount the buyer has confirmed as valid to the finance provider and a rollforward of the obligation. The accounting rules do not impact the recognition, measurement, or financial statement presentation of supplier finance program obligations. The disclosure of the obligation rollforward is effective for the Company beginning in 2024 and all other disclosures were effective for the Company in the first quarter of 2023. While the new accounting rules did not have any impact on the Company’s financial condition, results of operations or cash flows, the adoption of the new accounting rules did result in additional disclosures beginning in the first quarter of 2023 which are included below. The Company reviews supplier terms and conditions on an ongoing basis and has negotiated payment term extensions in recent years in connection with its efforts to effectively manage working capital and improve cash flow. Separate from these payment term extension actions noted above, the Company and certain financial institutions facilitate voluntary supplier finance programs that enable participating suppliers the ability to request payment of their invoices from the financial institutions earlier than the terms stated in Company’s payment policy. The Company is not a party to the arrangements between the suppliers and the financial institutions and its obligations to suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ participation in the supplier finance programs. The Company’s payment terms to the financial institutions, including the timing and amount of payments, are based on the original supplier invoices. The Company has no economic interest in a supplier’s decision to participate in the supplier finance programs and has no financial impact in connection with the supplier finance programs. Accordingly, obligations under these programs continue to be trade payables and are not indicative of borrowing arrangements. As of December 30, 2023, the amounts due to suppliers participating in supplier finance programs totaled $148,032 and are included in the “Accounts Payable” line of the Consolidated Balance Sheets. Leases In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” The new accounting rules require that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. These leases should also be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The new accounting rules will be effective for the Company in the first quarter of 2024, including interim periods. The adoption of the new rules will not have a material impact on the Company’s financial condition, results of operations, cash flows and disclosures. Segment Reporting In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The new accounting rules are designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new accounting rules will be effective for the Company for the annual period of 2024 and interim periods beginning in 2025. Early adoption is permitted. While the new accounting rules will not have any impact on the Company’s financial condition, results of operations or cash flows, the adoption of the new accounting rules will result in additional disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The new accounting rules on income tax disclosures require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit as separated between domestic and foreign and (3) income tax expense or benefit from continuing operations as separated by federal, state, and foreign. The new accounting rules also require entities to disclose their income tax payments to federal, state and local jurisdictions, and international, among other changes. The new accounting rules will be effective for the Company for the annual periods beginning in 2025 and should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
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. |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | Total current assets and current liabilities classified as held for sale in the Consolidated Balance Sheets consist of the following: December 30, December 31, Total current assets held for sale - U.S. Sheer Hosiery business $ — $ 13,327 Total current liabilities held for sale - U.S. Sheer Hosiery business $ — $ 13,327 |
Discontinued Operations Tables, Operating Results | The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the European Innerwear business. Discontinued operations does not include any allocation of corporate overhead expense or interest expense. The key components from discontinued operations related to the European Innerwear business are as follows: Years Ended December 30, December 31, January 1, Net sales $ — $ 101,314 $ 546,558 Cost of sales — 60,415 294,383 Gross profit — 40,899 252,175 Selling, general and administrative expenses — 54,689 274,408 Impairment of intangible assets and goodwill — — 155,745 Loss on sale of business and classification of assets held for sale — 373 273,995 Operating loss — (14,163) (451,973) Other expenses — 283 2,178 Interest expense, net — 10 613 Loss from discontinued operations before income tax benefit — (14,456) (454,764) Income tax benefit — (18,421) (11,020) Net income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) |
Discontinued Operations Tables, Cash Flows | The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information related to discontinued operations: Years Ended December 30, December 31, January 1, Depreciation $ — $ — $ 2,608 Amortization $ — $ — $ 1,460 Capital expenditures $ — $ 715 $ 8,462 Impairment of intangible assets and goodwill $ — $ — $ 155,745 Loss on sale of business and classification of assets held for sale $ — $ 373 $ 273,995 Capital expenditures included in accounts payable at end of period $ — $ — $ 1,079 Right-of-use assets obtained in exchange for lease obligations $ — $ — $ 8,672 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, December 31, January 1, Third-party brick-and-mortar wholesale $ 3,923,339 $ 4,348,424 $ 4,777,623 Consumer-directed 1,713,184 1,885,226 2,023,617 Total net sales $ 5,636,523 $ 6,233,650 $ 6,801,240 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [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 December 30, December 31, January 1, Basic weighted average shares outstanding 350,592 349,970 351,028 Effect of potentially dilutive securities: Stock options — — 16 Restricted stock units — — 1,031 Employee stock purchase plan and other — — 3 Diluted weighted average shares outstanding 350,592 349,970 352,078 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive: Years Ended December 30, December 31, January 1, Stock options 250 252 167 Restricted stock units 4,250 1,907 32 Employee stock purchase plan and other 10 8 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Changes in Stock Options Outstanding | A summary of the changes in stock options outstanding to the Company’s employees is presented below: Shares Weighted- Aggregate Weighted- Options outstanding at January 2, 2021 250 $ 17.18 $ 22 9.59 Granted — — Exercised — — Options outstanding at January 1, 2022 250 $ 17.18 $ 200 8.59 Granted — — Exercised — — Options outstanding at December 31, 2022 250 $ 17.18 $ — 7.59 Granted — — Exercised — — Options outstanding at December 30, 2023 250 $ 17.18 $ — 6.59 Options exercisable at December 30, 2023 250 $ 17.18 $ — 6.59 |
Summary of Changes in Restricted Stock Unit Awards Outstanding | A summary of the changes in the restricted stock unit awards outstanding is presented below: Shares Weighted- Aggregate Weighted- Nonvested share units outstanding at January 2, 2021 3,111 $ 14.64 $ 45,361 1.32 Granted — non-performanced based 970 16.11 Granted — performanced based (149) 16.22 Vested (1,694) 14.87 Forfeited (117) 15.36 Nonvested share units outstanding at January 1, 2022 2,121 $ 16.53 $ 35,455 1.18 Granted — non-performanced based 1,178 15.39 Granted — performanced based 1,624 16.98 Vested (829) 15.92 Forfeited (435) 16.84 Nonvested share units outstanding at December 31, 2022 3,659 $ 16.46 $ 23,268 1.24 Granted — non-performanced based 2,026 7.76 Granted — performanced based 1,662 7.92 Vested (931) 15.45 Forfeited (688) 14.85 Nonvested share units outstanding at December 30, 2023 5,728 $ 11.26 $ 25,547 1.18 |
Summary of Compensation Expense and Deferred Tax Benefit from Share-based Payment Awards | For all share-based awards granted, the Company recognized compensation expense and deferred tax benefits as follows: Years Ended December 30, December 31, January 1, Compensation expense included in continuing operations $ 20,304 $ 23,357 $ 16,065 Compensation expense included in discontinued operations — (200) 225 Total compensation expense $ 20,304 $ 23,157 $ 16,290 Deferred tax benefit recognized in continuing operations $ — $ — $ 2,499 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Trade Accounts Receivable [Abstract] | |
Allowances for Trade Accounts Receivable | The changes in the Company’s allowance for doubtful accounts and allowance for customer chargebacks and other customer deductions are as follows: Allowance Allowance Total Balance at January 2, 2021 $ 33,603 $ 15,142 $ 48,745 Charged to expenses 2,279 24,501 26,780 Deductions, write-offs and adjustments 2,663 (15,245) (12,582) Currency translation (707) (288) (995) Balance at January 1, 2022 $ 37,838 $ 24,110 $ 61,948 Charged to expenses 6,721 20,432 27,153 Deductions, write-offs and adjustments (19,753) (16,180) (35,933) Currency translation (658) (487) (1,145) Balance at December 31, 2022 $ 24,148 $ 27,875 $ 52,023 Charged to expenses 2,614 14,703 17,317 Deductions, write-offs and adjustments (4,636) (16,225) (20,861) Currency translation 1,187 508 1,695 Balance at December 30, 2023 $ 23,313 $ 26,861 $ 50,174 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 30, December 31, Raw materials $ 51,633 $ 69,279 Work in process 71,205 107,904 Finished goods 1,245,180 1,802,489 $ 1,368,018 $ 1,979,672 |
Property, Net (Tables)
Property, Net (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Net | Property is summarized as follows: December 30, December 31, Land $ 26,248 $ 26,209 Buildings and improvements 413,629 430,043 Machinery and equipment 1,002,740 994,829 Construction in progress 43,681 50,895 1,486,298 1,501,976 Less accumulated depreciation 1,071,932 1,059,572 Property, net $ 414,366 $ 442,404 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Supplemental Cash Flow and Non-cash Information | The following table presents supplemental cash flow and non-cash information related to leases: Years Ended December 30, December 31, January 1, Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases $ 162,970 $ 146,439 $ 157,138 Right-of-use assets obtained in exchange for lease obligations - non-cash activity $ 109,954 $ 81,571 $ 59,864 |
Supplemental Lease Information | The following table presents supplemental information related to lease terms and discount rates: Years Ended December 30, December 31, January 1, Weighted average remaining lease term 5.1 years 5.0 years 4.7 years Weighted average discount rate 4.87 % 4.77 % 4.55 % |
Maturities of Operating Lease Liabilities | The following table presents maturities of operating lease liabilities as of December 30, 2023: 2024 $ 130,046 2025 114,881 2026 97,795 2027 69,030 2028 48,269 Thereafter 75,096 Total lease payments 535,117 Less interest 70,462 $ 464,655 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Related Accumulated Amortization | The primary components of the Company’s intangible assets and the related accumulated amortization are as follows: Gross Accumulated Net Book Year ended December 30, 2023: Intangible assets subject to amortization: Trademarks $ 39,439 $ 29,434 $ 10,005 License agreements 89,622 73,181 16,441 Customer and distributor relationships 123,827 92,314 31,513 Computer software 114,927 85,542 29,385 Other intangibles 5,191 5,191 — $ 373,006 $ 285,662 87,344 Intangible assets not subject to amortization: Trademarks 1,146,110 Perpetual license agreements and other 2,250 Net book value of intangible assets $ 1,235,704 Gross Accumulated Net Book Year ended December 31, 2022: Intangible assets subject to amortization: Trademarks $ 40,128 $ 28,633 $ 11,495 License agreements 89,523 68,205 21,318 Customer and distributor relationships 122,283 81,099 41,184 Computer software 109,209 72,626 36,583 Other intangibles 5,160 5,043 117 $ 366,303 $ 255,606 110,697 Intangible assets not subject to amortization: Trademarks 1,142,746 Perpetual license agreements and other 2,250 Net book value of intangible assets $ 1,255,693 |
Goodwill | Goodwill and the changes in those amounts during the period are as follows: Innerwear Activewear International Other Total Net book value at January 1, 2022 $ 406,853 $ 316,384 $ 407,358 $ 2,500 $ 1,133,095 Currency translation — — (24,188) — (24,188) Net book value at December 31, 2022 $ 406,853 $ 316,384 $ 383,170 $ 2,500 $ 1,108,907 Currency translation — — 3,837 — 3,837 Net book value at December 30, 2023 $ 406,853 $ 316,384 $ 387,007 $ 2,500 $ 1,112,744 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | A summary of the Company’s debt is presented below: Interest Rate as of December 30, Principal Amount December 30, December 31, Maturity Date Senior Secured Credit Facility: Revolving Loan Facility — $ — $ 352,500 November 2026 Term Loan A 8.21% 937,500 975,000 November 2026 Term Loan B 9.11% 893,250 — March 2030 9.000% Senior Notes 9.00% 600,000 — February 2031 4.875% Senior Notes 4.88% 900,000 900,000 May 2026 4.625% Senior Notes — — 900,000 — 3.5% Senior Notes — — 535,275 — Accounts Receivable Securitization Facility 7.36% 6,000 209,500 May 2024 3,336,750 3,872,275 Less long-term debt issuance costs and debt discount 36,110 13,198 Less current maturities 65,000 247,000 $ 3,235,640 $ 3,612,077 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [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 December 30, December 31, January 1, Service cost $ 990 $ 1,345 $ 1,488 Interest cost 44,968 27,669 23,812 Expected return on assets (54,197) (49,189) (45,923) Settlement cost (1) (6) 861 Amortization of: Prior service cost (6) (6) (6) Net actuarial loss 16,672 20,972 24,440 Net periodic benefit cost $ 8,426 $ 785 $ 4,672 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net gain $ (17,131) $ (130,000) $ (96,334) Prior service credit 6 6 6 Total gain recognized in other comprehensive income (loss) (17,125) (129,994) (96,328) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (8,699) $ (129,209) $ (91,656) |
Funded Status of Company's Defined Benefit Pension Plans | The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows: December 30, December 31, Benefit obligation: Beginning of year $ 926,199 $ 1,216,161 Service cost 990 1,345 Interest cost 44,968 27,669 Benefits paid (63,155) (64,786) Settlements (104) (125) Impact of exchange rate change 366 (2,603) Actuarial (gain) loss 11,906 (251,426) Other (45) (36) End of year 921,125 926,199 Fair value of plan assets: Beginning of year 816,244 973,598 Actual return on plan assets 66,627 (93,497) Employer contributions 2,047 2,831 Benefits paid (63,155) (64,786) Settlements (104) (125) Impact of exchange rate change 746 (1,741) Other (45) (36) End of year 822,360 816,244 Funded status $ (98,765) $ (109,955) |
Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligations in Excess of Plan Assets | As most of the Company’s pension plans are frozen, the accumulated benefit obligation (“ABO”) approximates the benefit obligation. The total benefit obligation and the benefit obligation and fair value of plan assets for the Company’s pension plans with benefit obligations in excess of plan assets are as follows: December 30, December 31, Benefit obligation $ 921,125 $ 926,199 Plans with benefit obligation in excess of plan assets: Benefit obligation 898,890 905,749 Fair value of plan assets 795,765 790,641 |
Amounts Recognized in Company's Consolidated Balance Sheets | Amounts recognized in the Company’s Consolidated Balance Sheets consist of: December 30, December 31, Other noncurrent assets $ 4,360 $ 5,153 Accrued liabilities and other: Payroll and employee benefits (1,953) (2,388) Pension and postretirement benefits (101,172) (112,720) Accumulated other comprehensive loss (423,404) (440,529) |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of: December 30, December 31, Prior service cost $ (127) $ (133) Actuarial loss 423,531 440,662 Accumulated other comprehensive loss $ 423,404 $ 440,529 |
Weighted Average Actuarial Assumptions Used in Measuring Net Periodic Benefit Cost and Plan Obligation | The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows: December 30, December 31, January 1, Net periodic benefit cost: Discount rate 5.15 % 2.88 % 2.55 % Long-term rate of return on plan assets 6.94 5.24 4.95 Rate of compensation increase (1) 3.08 3.09 3.10 Interest crediting rate 5.50 5.50 5.50 Plan obligations: Discount rate 4.96 % 5.15 % 2.88 % Rate of compensation increase (1) 3.09 3.08 3.09 Interest crediting rate 5.50 5.50 5.50 (1) For December 30, 2023, December 31, 2022 and January 1, 2022, the compensation assumption only applies to certain international plans as the benefits of the U.S. pension plans are now all frozen. |
Allocation of Pension Plan Assets | The allocation of pension plan assets as of the respective period end measurement dates is as follows: December 30, December 31, Asset category: Debt securities 40 % 10 % Foreign equity securities 22 21 U.S. equity securities 21 19 Hedge fund of funds 9 39 Real estate 7 8 Commodities — 2 Cash and other 1 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [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) from continuing operations before income taxes as reconciled to the actual provisions was: Years Ended December 30, December 31, January 1, Income (loss) from continuing operations before income taxes: Domestic 1,681.5 % (45.0) % (3.3) % Foreign (1,581.5) 145.0 103.3 100.0 % 100.0 % 100.0 % Tax expense at U.S. statutory rate 21.0 % 21.0 % 21.0 % State income tax 68.6 (1.6) (0.7) Tax on actual and planned remittances of foreign earnings (40.6) (1.6) 1.5 Tax on foreign earnings due to U.S. tax reform including measurement period adjustments (1) — — (0.3) Tax on foreign earnings (U.S. tax reform - GILTI and FDII) (48.7) 3.8 1.7 Foreign taxes less than U.S. statutory rate 182.4 (14.0) (12.3) Statutory stock deduction and other foreign adjustments (2) 338.7 22.5 — Employee benefits (15.5) 1.0 0.3 Changes in valuation allowance (503.3) 101.1 1.9 Release of unrecognized tax benefit reserves (0.6) (1.1) (0.9) Tax rate change 7.5 3.1 1.0 Tax provision adjustments and revisions to prior years' returns (4.1) 3.6 (1.6) Nondeductible expenses and tax exempt income, net 1.3 (1.2) (0.4) Domestic income tax credits 13.8 (0.7) (0.4) Other, net 8.9 1.3 (0.5) Taxes at effective worldwide tax rates 29.4 % 137.2 % 10.3 % (1) In 2020, the Company continued to analyze the impacts of the Tax Cuts and Jobs Act and subsequently issued regulations that have been published to help taxpayers interpret and apply the legislation. As a result of its analysis, the Company changed its estimate of the tax liability due in connection with the one-time mandatory transition tax and recognized a $4,668 income tax benefit in 2021. (2) |
Current and Deferred Tax Provisions (Benefits) | Current and deferred tax provisions (benefits) were: Current Deferred Total Year ended December 30, 2023 Domestic $ 23,219 $ 29 $ 23,248 Foreign 52,812 (84,774) (31,962) State 1,348 — 1,348 $ 77,379 $ (84,745) $ (7,366) Year ended December 31, 2022 Domestic $ 15,188 $ 201,112 $ 216,300 Foreign 83,607 95,558 179,165 State (2,712) 91,154 88,442 $ 96,083 $ 387,824 $ 483,907 Year ended January 1, 2022 Domestic $ (15,176) $ 6,934 $ (8,242) Foreign 66,844 1,421 68,265 State (2,948) 3,032 84 $ 48,720 $ 11,387 $ 60,107 |
Cash Payments For Income Taxes | Years Ended December 30, December 31, January 1, Cash payments for income taxes $ 92,937 $ 95,331 $ 95,011 |
Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities at the respective year-ends were as follows: December 30, December 31, Deferred tax assets: Inventories $ 81,436 $ 92,347 Bad debt allowance 9,700 15,854 Accrued expenses 8,975 15,492 Employee benefits 45,906 55,687 Tax credits 18,289 10,859 Net operating loss and other tax carryforwards 517,959 562,326 Leasing 126,407 112,619 Property and equipment — 6,094 Interest carryforwards 94,204 50,695 Capitalized research costs 18,813 17,501 Other 1,970 1,029 Gross deferred tax assets 923,659 940,503 Less valuation allowances (749,704) (626,540) Less FIN48 / NOL Offset (10,543) — Deferred tax assets 163,412 313,963 Deferred tax liabilities: Derivatives 855 13,781 Property and equipment 7,897 — Leasing 112,973 101,558 Accrued tax on unremitted foreign earnings 29,138 26,128 Intangibles 37,360 41,331 Statutory impairment 5,849 247,360 Prepaids 18 877 Deferred tax liabilities 194,090 431,035 Net deferred tax liabilities $ (30,678) $ (117,072) |
Summary of Changes in Valuation Allowance | The changes in the Company’s valuation allowance for deferred tax assets were as follows: January 2, 2021 $ 204,854 Charged to income tax expense 4,343 Charged to other accounts (1) 97,024 January 1, 2022 $ 306,221 Charged to income tax expense 356,740 Charged to other accounts (1) (36,421) December 31, 2022 $ 626,540 Charged to income tax expense 125,911 Charged to other accounts (1) (2,747) December 30, 2023 $ 749,704 (1) Charges to other accounts include the effects of foreign currency translation and changes to valuation allowances as a result of intraperiod tax allocations. |
Net Operating Loss Carryforwards | At December 30, 2023, the Company had gross foreign net operating loss carryforwards of approximately $1,174,678 (on a tax return basis) which are subject to expiration as follows: Fiscal Year: 2024 $ 2,271 2025 2,114 2026 2,652 2027 4,386 2028 1,490 Thereafter 1,161,765 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at January 2, 2021 (gross balance of $46,645) $ 45,686 Additions based on tax positions related to the current year 3,231 Additions based on tax positions of prior years 3,401 Lapse of statute of limitations (147) Reductions for tax positions of prior years (12,599) Balance at January 1, 2022 (gross balance of $40,706) $ 39,572 Adjustments related to prior year ending balance 1,138 Additions based on tax positions related to the current year 2,857 Additions based on tax positions of prior years 798 Lapse of statute of limitations (7,191) Reductions for tax positions of prior years (311) Balance at December 31, 2022 (gross balance of $37,818) $ 36,863 Additions based on tax positions related to the current year 2,994 Additions based on tax positions of prior years 646 Lapse of statute of limitations (2,814) Reductions for tax positions of prior years (483) Balance at December 30, 2023 (gross balance of $38,156) $ 37,206 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
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 January 1, 2022 $ (134,001) $ 5,244 $ (569,161) $ 146,315 $ (551,603) Amounts reclassified from accumulated other comprehensive loss (13,473) 14,927 21,224 3,319 25,997 Current-period other comprehensive income (loss) activity (81,329) (11,462) 110,584 (4,195) 13,598 Total other comprehensive income (loss) (94,802) 3,465 131,808 (876) 39,595 Balance at December 31, 2022 $ (228,803) $ 8,709 $ (437,353) $ 145,439 $ (512,008) Amounts reclassified from accumulated other comprehensive loss — (11,190) 16,315 1,868 6,993 Current-period other comprehensive income (loss) activity 15,321 (3,486) 1,203 (334) 12,704 Total other comprehensive income (loss) 15,321 (14,676) 17,518 1,534 19,697 Balance at December 30, 2023 $ (213,482) $ (5,967) $ (419,835) $ 146,973 $ (492,311) (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 December 30, December 31, January 1, Write-off of cumulative translation associated with sale of business Income (loss) from discontinued operations, net of tax $ — $ 13,473 $ — Gain (loss) on forward foreign exchange contracts designated as cash flow hedges Cost of sales 4,357 11,336 (15,301) Income tax (1,781) (3,401) 4,105 Income (loss) from discontinued operations, net of tax — (232) (2,890) Net of tax 2,576 7,703 (14,086) Gain on interest rate contracts designated as cash flow hedges Interest expense, net 5,279 — — Income tax — — — Net of tax 5,279 — — Gain (loss) on cross-currency swap contracts designated as cash flow hedges Selling, general and administrative expenses 973 (20,016) (12,155) Interest expense, net 581 (5,940) (3,556) Income tax — — 4,061 Net of tax 1,554 (25,956) (11,650) Amortization of deferred actuarial loss and prior service cost Other expenses (16,315) (20,809) (25,671) Income tax (87) 52 6,461 Income (loss) from discontinued operations, net of tax — — 560 Pension activity associated with sale of business Income (loss) from discontinued operations, net of tax — (460) — Net of tax (16,402) (21,217) (18,650) Total reclassifications $ (6,993) $ (25,997) $ (44,386) |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Financial Instruments and Risk Management [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Hedge Type December 30, December 31, U.S. dollar equivalent notional amount of derivative instruments: Forward foreign exchange contracts Cash Flow and $ 308,760 $ 397,908 Interest rate contracts Cash Flow $ 900,000 $ — Cross-currency swap contracts Cash Flow $ — $ 352,920 Cross-currency swap contracts Net Investment $ — $ 335,940 |
Fair Values of Derivative Instruments | The fair values of derivative instruments related to forward foreign exchange contracts, cross-currency swap contracts and interest rate contracts recognized in the Consolidated Balance Sheets of the Company were as follows: Balance Sheet Location Fair Value December 30, December 31, Derivatives designated as hedging instruments: Forward foreign exchange contracts Other current assets $ 57 $ 1,892 Interest rate contracts Other current assets 23 — Cross-currency swap contracts Other current assets — 1,033 Forward foreign exchange contracts Other noncurrent assets — 110 Cross-currency swap contracts Other noncurrent assets — 16,477 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 142 5,402 Total derivative assets 222 24,914 Derivatives designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities and other: Other (2,508) (1,263) Cross-currency swap contracts Accrued liabilities and other: Other — (252) Forward foreign exchange contracts Other noncurrent liabilities (290) (178) Interest rate contracts Other noncurrent liabilities (5,929) — Cross-currency swap contracts Other noncurrent liabilities — (27,753) Derivatives not designated as hedging instruments: Forward foreign exchange contracts Accrued liabilities and other: Other (2,784) (4,841) Total derivative liabilities (11,511) (34,287) Net derivative liability $ (11,289) $ (9,373) |
Effect of Cash Flow Hedge Derivative Instruments | The effect of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations and AOCI is as follows: Amount of Gain (Loss) Years Ended December 30, December 31, January 1, Forward foreign exchange contracts $ 28 $ 10,843 $ 12,170 Interest rate contracts (649) — — Cross-currency swap contracts (2,865) (22,305) (14,942) Total $ (3,486) $ (11,462) $ (2,772) Location of Gain (Loss) Amount of Gain (Loss) Years Ended December 30, December 31, January 1, Forward foreign exchange contracts (1) Cost of sales $ 4,357 $ 11,336 $ (15,301) Forward foreign exchange contracts (1) Income (loss) from discontinued operations, net of tax — (307) (3,542) Interest rate contracts Interest expense, net 5,279 — — Cross-currency swap contracts (1) Selling, general and administrative expenses 973 (20,016) (12,155) Cross-currency swap contracts (1) Interest expense, net 581 (5,940) (3,556) Total $ 11,190 $ (14,927) $ (34,554) (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. The following table presents the amounts in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded: Years Ended December 30, December 31, January 1, Cost of sales $ 3,740,113 $ 4,012,542 $ 4,149,541 Selling, general and administrative expenses $ 1,607,628 $ 1,701,563 $ 1,853,971 Interest expense, net $ 275,354 $ 157,073 $ 163,067 Income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) |
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 are as follows: Amount of Gain (Loss) Recognized in AOCI Years Ended December 30, December 31, January 1, Euro-denominated long-term debt $ (469) $ 9,716 $ 24,928 Cross-currency swap contracts 531 14,497 13,670 Total $ 62 $ 24,213 $ 38,598 The effect of derivative and non-derivative instruments designated as net investment hedges on the Consolidated Statements of Operations are as follows: Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Years Ended December 30, December 31, January 1, Euro-denominated long-term debt Income (loss) from discontinued operations, net of tax $ — $ (13,348) $ — Cross-currency swap contracts Income (loss) from discontinued operations, net of tax — (2,505) — Cross-currency swap contracts (amounts excluded from effectiveness testing) Interest expense, net 960 8,368 7,389 Total $ 960 $ (7,485) $ 7,389 The following table presents the amounts in the Consolidated Statements of Operations in which the effects of net investment hedges are recorded: Years Ended December 30, December 31, January 1, Income (loss) from discontinued operations, net of tax $ — $ 3,965 $ (443,744) Interest expense, net (amounts excluded from effectiveness testing) $ 275,354 $ 157,073 $ 163,067 |
Effect of Mark to Market Hedge Derivative Instruments | The effect of derivative instruments not designated as hedges on the Consolidated Statements of Operations is as follows: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Years Ended December 30, December 31, January 1, Forward foreign exchange contracts Cost of sales $ (6,499) $ (16,557) $ 24,087 Forward foreign exchange contracts Selling, general and 222 (290) 2,784 Forward foreign exchange contracts Income (loss) from discontinued operations, net of tax — — 4,706 Total $ (6,277) $ (16,847) $ 31,577 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [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 December 30, 2023 Total Quoted Prices In Significant Significant Defined benefit pension plan investment assets: U.S. equity securities $ 31,435 $ 31,435 $ — $ — Foreign equity securities 1,469 1,469 — — Cash and other 8,272 8,272 — — Total plan assets in the fair value hierarchy 41,176 41,176 — — Plan assets measured at net asset value: (1) Hedge fund of funds 77,707 U.S. equity securities 142,951 Foreign equity securities 177,459 Debt securities 326,002 Real estate 57,065 Total plan assets measured at net asset value 781,184 Total plan assets 822,360 Derivative contracts: Forward foreign exchange contracts - assets 199 — 199 — Interest rate contracts - assets 23 — 23 — Forward foreign exchange contracts - liabilities (5,582) — (5,582) — Interest rate contracts - liabilities (5,929) — (5,929) — Total derivative contracts (11,289) — (11,289) — Deferred compensation plan liability (16,001) — (16,001) — Total $ 795,070 $ 41,176 $ (27,290) $ — (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 31, 2022 Total Quoted Prices In Significant Significant Defined benefit pension plan investment assets: U.S. equity securities $ 158,305 $ 158,305 $ — $ — Foreign equity securities 33,713 33,713 — — Debt securities 81,812 81,812 — — Cash and other 11,045 11,045 — — Total plan assets in the fair value hierarchy 284,875 284,875 — — Plan assets measured at net asset value: (1) Hedge fund of funds 313,521 Foreign equity securities 135,076 Debt securities 670 Real estate 65,364 Commodities 16,738 Total plan assets measured at net asset value 531,369 Total plan assets 816,244 Derivative contracts: Forward foreign exchange contracts - assets 7,404 — 7,404 — Cross-currency swap contracts - assets 17,510 — 17,510 — Forward foreign exchange contracts - liabilities (6,282) — (6,282) — Cross-currency swap contracts - liabilities (28,005) — (28,005) — Total derivative contracts (9,373) — (9,373) — Deferred compensation plan liability (16,096) — (16,096) — Total $ 790,775 $ 284,875 $ (25,469) $ — (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. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Net Sales | Years Ended December 30, December 31, January 1, Net sales: Innerwear $ 2,415,032 $ 2,429,966 $ 2,719,788 Activewear 1,251,913 1,555,062 1,679,639 International 1,748,428 1,914,268 2,066,249 Other 221,150 334,354 335,564 Total net sales $ 5,636,523 $ 6,233,650 $ 6,801,240 |
Segment Operating Profit | Years Ended December 30, December 31, January 1, Segment operating profit: Innerwear $ 418,226 $ 388,586 $ 573,852 Activewear 20,517 153,710 236,400 International 210,651 283,036 339,317 Other (7,902) 17,019 30,922 Total segment operating profit 641,492 842,351 1,180,491 Items not included in segment operating profit: General corporate expenses (207,037) (232,975) (219,984) Restructuring and other action-related charges (115,904) (59,858) (131,710) Amortization of intangibles (29,769) (29,973) (31,069) Total operating profit 288,782 519,545 797,728 Other expenses (38,520) (9,734) (53,586) Interest expense, net (275,354) (157,073) (163,067) Income (loss) from continuing operations before income taxes $ (25,092) $ 352,738 $ 581,075 |
Restructuring and other action-related charges | The Company incurred restructuring and other action-related charges that were reported in the following lines in the Consolidated Statements of Operations: Years Ended December 30, December 31, January 1, Cost of sales $ 72,140 $ 17,025 $ 10,098 Selling, general and administrative expenses 43,764 42,833 121,612 Total included in operating profit 115,904 59,858 131,710 Other expenses 8,350 — 45,699 Interest expense, net (1,254) — — Total included in income (loss) from continuing operations before income taxes 123,000 59,858 177,409 Income tax (expense) benefit 85,122 (413,766) 53,665 Total restructuring and other action-related charges $ 37,878 $ 473,624 $ 123,744 The components of restructuring and other action-related charges were as follows: Years Ended December 30, December 31, January 1, Global Champion performance plan $ 88,045 $ — $ — Full Potential transformation plan: Technology 8,953 11,922 4,617 Headcount actions and related severance 6,105 8,221 23,191 Supply chain segmentation 4,151 17,982 5,419 Professional services 3,819 23,994 44,617 (Gain) loss on sale of business and classification of assets held for sale 3,641 (3,535) 38,364 Impairment of intangible assets — — 7,302 Other 1,190 1,274 8,200 Total Full Potential transformation plan 27,859 59,858 131,710 Total included in operating profit 115,904 59,858 131,710 Loss on extinguishment and refinancing of debt included in other expenses 8,466 — 45,699 Gain on final settlement of cross currency swap contracts included in other expenses (116) — — Gain on final settlement of cross currency swap contracts included in interest expense, net (1,254) — — Total included in income (loss) from continuing operations before income taxes 123,000 59,858 177,409 Discrete tax (expense) benefit 85,122 (422,918) 27,147 Tax effect on actions — 9,152 26,518 Total included in income tax (expense) benefit 85,122 (413,766) 53,665 Total restructuring and other action-related charges $ 37,878 $ 473,624 $ 123,744 |
Assets | December 30, 2023 Innerwear Activewear International Other Unallocated Total Assets Assets: Inventories $ 635,361 $ 404,972 $ 302,197 $ 25,488 $ — $ 1,368,018 All other assets — — — — 4,272,296 4,272,296 Total assets $ 5,640,314 December 31, 2022 Innerwear Activewear International Other Unallocated Total Assets Assets: Inventories $ 918,104 $ 665,500 $ 364,231 $ 31,837 $ — $ 1,979,672 Assets held for sale — — — — 13,327 13,327 All other assets — — — — 4,510,877 4,510,877 Total assets $ 6,503,876 |
Depreciation and Amortization Expense | Years Ended December 30, December 31, January 1, Depreciation and amortization expense: Innerwear $ 33,712 $ 26,518 $ 25,816 Activewear 18,107 24,200 23,562 International 18,324 19,670 22,476 Other 2,725 3,341 4,578 72,868 73,729 76,432 Corporate 32,169 32,538 33,698 Total depreciation and amortization expense $ 105,037 $ 106,267 $ 110,130 |
Geographic Area Information (Ta
Geographic Area Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Geographic Area Information Sales And Long Lived Assets By Geographical Area [Abstract] | |
Sales and Long Lived Assets by Geographical Area | Years Ended or at December 30, December 31, January 1, Sales Property, Net Sales Property, Net Sales Property, Net Americas $ 4,109,575 $ 293,176 $ 4,532,595 $ 325,957 $ 4,995,230 $ 325,188 Asia Pacific 1,029,498 90,110 1,149,954 85,966 1,257,037 85,538 Europe 488,032 31,080 534,892 30,481 530,440 30,675 Other 9,418 — 16,209 — 18,533 — $ 5,636,523 $ 414,366 $ 6,233,650 $ 442,404 $ 6,801,240 $ 441,401 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Quarters Ended December 30, December 31, Net sales $ 1,296,827 $ 1,473,286 Cost of sales 803,158 971,309 Gross profit 493,669 501,977 Selling, general and administrative expenses 397,572 441,642 Operating profit 96,097 60,335 Other expenses 7,375 3,646 Interest expense, net 69,688 49,665 Income before income taxes 19,034 7,024 Income tax expense (benefit) (58,907) 425,132 Net income (loss) $ 77,941 $ (418,108) Earnings (loss) per share: Basic $ 0.22 $ (1.19) Diluted $ 0.22 $ (1.19) |
Basis of Presentation (Details)
Basis of Presentation (Details) - Ransomware Attack - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Ransomware Attack Costs (Benefits), Net [Line Items] | ||
Insurance Recoveries | $ 25,562 | |
Ransomware Attack Costs (Benefits), Net | (24,062) | $ 15,427 |
Cost of sales | ||
Ransomware Attack Costs (Benefits), Net [Line Items] | ||
Ransomware Attack Costs (Benefits), Net | (23,354) | 14,168 |
Selling, general and administrative expenses | ||
Ransomware Attack Costs (Benefits), Net [Line Items] | ||
Ransomware Attack Costs (Benefits), Net | $ (708) | $ 1,259 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Summary of Significant Accounting Policies | |||||
Advertising expense | $ 166,942 | $ 208,881 | $ 208,998 | ||
Net sales | $ 1,296,827 | $ 1,473,286 | 5,636,523 | 6,233,650 | 6,801,240 |
Shipping and handling costs | 378,541 | 415,989 | 447,131 | ||
Research and development expense | 35,961 | 38,911 | 39,320 | ||
Defined contribution benefit plans | 25,341 | 26,296 | 37,979 | ||
Accounts payable | $ 736,252 | 917,481 | 736,252 | 917,481 | |
Shipping and Handling | |||||
Summary of Significant Accounting Policies | |||||
Net sales | $ 11,299 | 13,578 | $ 19,461 | ||
Machinery and Equipment | Minimum | |||||
Summary of Significant Accounting Policies | |||||
Estimated useful life | 1 year | 1 year | |||
Machinery and Equipment | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Estimated useful life | 15 years | 15 years | |||
Buildings and Building Improvements | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Estimated useful life | 40 years | 40 years | |||
Trademarks | Minimum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 10 years | 10 years | |||
Trademarks | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 20 years | 20 years | |||
License agreements | Minimum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 3 years | 3 years | |||
License agreements | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 15 years | 15 years | |||
Customer and distributor relationships | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 15 years | 15 years | |||
Computer software | Minimum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 4 years | 4 years | |||
Computer software | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 7 years | 7 years | |||
Other intangibles | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Finite-lived intangible assets amortization period | 10 years | 10 years | |||
Cloud Computing Arrangements | |||||
Summary of Significant Accounting Policies | |||||
Net capitalized CCA assets | $ 94,425 | $ 53,637 | $ 94,425 | $ 53,637 | |
Cloud Computing Arrangements | Minimum | |||||
Summary of Significant Accounting Policies | |||||
Length of CCA hosting contract term | 2 years | 2 years | |||
Cloud Computing Arrangements | Maximum | |||||
Summary of Significant Accounting Policies | |||||
Length of CCA hosting contract term | 7 years | 7 years | |||
Supplier Finance Program | |||||
Summary of Significant Accounting Policies | |||||
Accounts payable | $ 148,032 | $ 148,032 |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets held for sale | $ 0 | $ 13,327 |
Current liabilities held for sale | 0 | 13,327 |
Continuing Operations, Disposal Group, Held-for-sale | U.S. Sheer Hosiery business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets held for sale | 0 | 13,327 |
Current liabilities held for sale | $ 0 | $ 13,327 |
Assets and Liabilities Held f_4
Assets and Liabilities Held for Sale - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Sep. 29, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on sale of business and classification of assets held for sale | $ 3,641 | $ (3,162) | $ 312,359 | ||
Discontinued Operations, Held-for-sale | European Innerwear Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on sale of business and classification of assets held for sale | $ 7,253 | 0 | 373 | 273,995 | |
Impairment of intangible assets and goodwill, Discontinued Operations | 0 | 0 | 155,745 | ||
Disposal Group, Disposed of by Sale | U.S. Sheer Hosiery business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total proceeds | $ 3,300 | ||||
Disposal Group, Disposed of by Sale | U.S. Sheer Hosiery business | Cash Proceeds | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total proceeds | 1,300 | ||||
Disposal Group, Disposed of by Sale | U.S. Sheer Hosiery business | Other Current Assets | Noncash Proceeds | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total proceeds | $ 2,000 | ||||
Full Potential plan | (Gain) loss on sale of business and classification of assets held for sale | Continuing Operations, Disposal Group, Held-for-sale | U.S. Sheer Hosiery business | Selling, general and administrative expenses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on sale of business and classification of assets held for sale | $ 3,641 | $ (3,535) | 38,364 | ||
Full Potential plan | Impairment of intangible assets | Selling, general and administrative expenses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of intangible assets, Continuing Operations | $ 7,302 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on sale of business and classification of assets held for sale | $ 3,641 | $ (3,162) | $ 312,359 | |
Net income (loss) from discontinued operations, net of tax | 0 | 3,965 | (443,744) | |
Discontinued Operations, Held-for-sale | European Innerwear Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 101,314 | 546,558 | |
Cost of sales | 0 | 60,415 | 294,383 | |
Gross profit | 0 | 40,899 | 252,175 | |
Selling, general and administrative expenses | 0 | 54,689 | 274,408 | |
Impairment of intangible assets and goodwill | 0 | 0 | 155,745 | |
Loss on sale of business and classification of assets held for sale | $ 7,253 | 0 | 373 | 273,995 |
Operating loss | 0 | (14,163) | (451,973) | |
Other expenses | 0 | 283 | 2,178 | |
Interest expense, net | 0 | 10 | 613 | |
Loss from discontinued operations before income tax benefit | 0 | (14,456) | (454,764) | |
Income tax benefit | 0 | (18,421) | (11,020) | |
Net income (loss) from discontinued operations, net of tax | $ 0 | $ 3,965 | $ (443,744) |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on sale of business and classification of assets held for sale | $ 3,641 | $ (3,162) | $ 312,359 | |
Discontinued Operations, Held-for-sale | European Innerwear Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | 0 | 0 | 2,608 | |
Amortization | 0 | 0 | 1,460 | |
Capital expenditures | 0 | 715 | 8,462 | |
Impairment of intangible assets and goodwill | 0 | 0 | 155,745 | |
Loss on sale of business and classification of assets held for sale | $ 7,253 | 0 | 373 | 273,995 |
Capital expenditures included in accounts payable at end of period | 0 | 0 | 1,079 | |
Right-of-use assets obtained in exchange for lease obligations | $ 0 | $ 0 | $ 8,672 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue | |||||
Net sales | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Third-party brick-and-mortar wholesale | |||||
Disaggregation of Revenue | |||||
Net sales | 3,923,339 | 4,348,424 | 4,777,623 | ||
Consumer-directed | |||||
Disaggregation of Revenue | |||||
Net sales | $ 1,713,184 | $ 1,885,226 | $ 2,023,617 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic to Diluted Weighted Average Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of basic to diluted weighted average shares | |||
Basic weighted average shares outstanding | 350,592 | 349,970 | 351,028 |
Diluted weighted average shares outstanding | 350,592 | 349,970 | 352,078 |
Stock options | |||
Effect of potentially dilutive securities: | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements | 0 | 0 | 16 |
Restricted stock units | |||
Effect of potentially dilutive securities: | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements | 0 | 0 | 1,031 |
Employee stock purchase plan and other | |||
Effect of potentially dilutive securities: | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements | 0 | 0 | 3 |
Earnings Per Share - Anti-Dilut
Earnings Per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 250 | 252 | 167 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 4,250 | 1,907 | 32 |
Employee stock purchase plan and other | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 10 | 8 | 0 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Stock Options Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, Shares, Beginning Balance | 250 | 250 | 250 | |
Granted, shares | 0 | 0 | 0 | |
Exercised, shares | 0 | 0 | 0 | |
Options outstanding, Shares, Ending Balance | 250 | 250 | 250 | 250 |
Options exercisable, Shares, Ending Balance | 250 | |||
Options outstanding, Weighted-Average Exercise Price, Beginning Balance | $ 17.18 | $ 17.18 | $ 17.18 | |
Weighted-Average Exercise Price, Grants | 0 | 0 | 0 | |
Weighted-Average Exercise Price, Exercised | 0 | 0 | 0 | |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 17.18 | $ 17.18 | $ 17.18 | $ 17.18 |
Weighted-Average Exercise Price, Exercisable | $ 17.18 | |||
Options Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 200 | $ 22 |
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |||
Option Outstanding, Weighted-Average Remaining Contractual Term (Years) | 6 years 7 months 2 days | 7 years 7 months 2 days | 8 years 7 months 2 days | 9 years 7 months 2 days |
Option Exercisable, Weighted-Average Remaining Contractual Term (Years) | 6 years 7 months 2 days |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Changes in Restricted Stock Unit Awards Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
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 | 3,659 | 2,121 | 3,111 | |
Vested, Shares | (931) | (829) | (1,694) | |
Forfeited, Shares | (688) | (435) | (117) | |
Nonvested share units outstanding, Ending Balance | 5,728 | 3,659 | 2,121 | 3,111 |
Weighted Average Grant Date Fair Value, Share units, Beginning Balance | $ 16.46 | $ 16.53 | $ 14.64 | |
Weighted Average Grant Date Fair Value, Vested | 15.45 | 15.92 | 14.87 | |
Weighted Average Grant Date Fair Value, Forfeited | 14.85 | 16.84 | 15.36 | |
Weighted Average Grant Date Fair Value, Share units, Ending Balance | $ 11.26 | $ 16.46 | $ 16.53 | $ 14.64 |
Aggregate Intrinsic Value | $ 25,547 | $ 23,268 | $ 35,455 | $ 45,361 |
Weighted-Average Remaining Contractual Term (Years) | 1 year 2 months 4 days | 1 year 2 months 26 days | 1 year 2 months 4 days | 1 year 3 months 25 days |
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 | 2,026 | 1,178 | 970 | |
Weighted Average Grant Date Fair Value, Granted | $ 7.76 | $ 15.39 | $ 16.11 | |
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, Performanced Based Restricted Stock Units, Grants in Period | 1,662 | 1,624 | (149) | |
Weighted Average Grant Date Fair Value, Granted | $ 7.92 | $ 16.98 | $ 16.22 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense from share-based payment awards | $ 20,304 | $ 23,157 | $ 16,290 | |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | 22,623 | |||
Unrecognized compensation cost related to non-vested stock-based compensation arrangements expected to be recognized in 2024 | 14,064 | |||
Unrecognized compensation cost related to non-vested stock-based compensation arrangements expected to be recognized in 2025 | 7,102 | |||
Unrecognized compensation cost related to non-vested stock-based compensation arrangements expected to be recognized in 2026 | 1,457 | |||
Continuing Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense from share-based payment awards | 20,304 | 23,357 | 16,065 | |
Deferred tax benefit from share-based payment awards | 0 | 0 | 2,499 | |
Discontinued Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense from share-based payment awards | $ 0 | (200) | 225 | |
Share Based Compensation Arrangement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional common stock shares authorized for awards of Stock Options and Restricted Stock Units | 5,300 | 11,000 | ||
Common stock shares authorized for awards of Stock Options and Restricted Stock Units | 79,520 | |||
Number of shares available for future grants | 16,324 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ratable vesting period of Stock Options, years | 3 years | |||
Exercise term of Stock Options, years | 10 years | |||
Number of shares granted outside of the Omnibus Plan | 250 | |||
Ratable vesting period of Stock Options granted outside of the Omnibus Plan, years | 3 years | |||
Exercise term of Stock Options granted outside of the Omnibus Plan, years | 10 years | |||
Total intrinsic value of options exercised | $ 0 | 0 | 0 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of Restricted Stock Units shares vested | $ 14,381 | $ 13,199 | $ 25,201 | |
Minimum percentage of target of performanced-based Restricted Stock Units granted | 0% | |||
Maximum percentage of target of performanced-based Restricted Stock Units granted | 200% | |||
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of Restricted Stock Units, years | 1 year | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of Restricted Stock Units, years | 3 years |
Trade Accounts Receivable - All
Trade Accounts Receivable - Allowances for Trade Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | $ 52,023 | $ 61,948 | $ 48,745 |
Charged to expenses | 17,317 | 27,153 | 26,780 |
Deductions, write-offs and adjustments | (20,861) | (35,933) | (12,582) |
Currency translation | 1,695 | (1,145) | (995) |
Ending Balance | 50,174 | 52,023 | 61,948 |
Allowance for Doubtful Accounts | |||
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | 24,148 | 37,838 | 33,603 |
Charged to expenses | 2,614 | 6,721 | 2,279 |
Deductions, write-offs and adjustments | (4,636) | (19,753) | 2,663 |
Currency translation | 1,187 | (658) | (707) |
Ending Balance | 23,313 | 24,148 | 37,838 |
Allowance for Chargebacks and Other Deductions | |||
Accounts Receivable, Allowance for Doubtful Accounts, Chargebacks and Other Deductions [Roll Forward] | |||
Beginning Balance | 27,875 | 24,110 | 15,142 |
Charged to expenses | 14,703 | 20,432 | 24,501 |
Deductions, write-offs and adjustments | (16,225) | (16,180) | (15,245) |
Currency translation | 508 | (487) | (288) |
Ending Balance | $ 26,861 | $ 27,875 | $ 24,110 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Trade Accounts Receivable [Line Items] | |||
Trade accounts receivable, sold to financial institutions | $ 1,421,592 | $ 372,693 | $ 48,720 |
Trade accounts receivable, sold, outstanding with financial institutions | 297,807 | 92,166 | |
Other expenses | |||
Trade Accounts Receivable [Line Items] | |||
Funding fees recognized for sales of trade accounts receivable to financial institutions and working capital programs | $ 22,023 | $ 8,823 | $ 3,312 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 51,633 | $ 69,279 |
Work in process | 71,205 | 107,904 |
Finished goods | 1,245,180 | 1,802,489 |
Total Inventories | $ 1,368,018 | $ 1,979,672 |
Summary of Property (Details)
Summary of Property (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Property, Net - Summary Of Property [Abstract] | |||
Land | $ 26,248 | $ 26,209 | |
Buildings and improvements | 413,629 | 430,043 | |
Machinery and equipment | 1,002,740 | 994,829 | |
Construction in progress | 43,681 | 50,895 | |
Property, gross | 1,486,298 | 1,501,976 | |
Less accumulated depreciation | 1,071,932 | 1,059,572 | |
Property, net | $ 414,366 | $ 442,404 | $ 441,401 |
Property, Net - Additional Info
Property, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Capital expenditures included in accounts payable | $ 18,550 | $ 10,549 | $ 23,085 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease costs | $ 239,485 | $ 239,854 | $ 236,139 |
Variable costs included in total operating lease costs | $ 75,227 | $ 82,165 | $ 77,496 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 month | ||
Option to terminate, period | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 34 years | ||
Option to extend, term | 15 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Non-Cash Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases | $ 162,970 | $ 146,439 | $ 157,138 |
Right-of-use assets obtained in exchange for lease obligations - non-cash activity | $ 109,954 | $ 81,571 | $ 59,864 |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Leases [Abstract] | |||
Weighted average remaining lease term | 5 years 1 month 6 days | 5 years | 4 years 8 months 12 days |
Weighted average discount rate | 4.87% | 4.77% | 4.55% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 130,046 |
2025 | 114,881 |
2026 | 97,795 |
2027 | 69,030 |
2028 | 48,269 |
Thereafter | 75,096 |
Total lease payments | 535,117 |
Less interest | 70,462 |
Total operating lease liabilities | $ 464,655 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | $ 373,006 | $ 366,303 |
Accumulated Amortization | 285,662 | 255,606 |
Net Book Value | 87,344 | 110,697 |
Net book value of intangible assets | 1,235,704 | 1,255,693 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | 39,439 | 40,128 |
Accumulated Amortization | 29,434 | 28,633 |
Net Book Value | 10,005 | 11,495 |
License agreements | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | 89,622 | 89,523 |
Accumulated Amortization | 73,181 | 68,205 |
Net Book Value | 16,441 | 21,318 |
Customer and distributor relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | 123,827 | 122,283 |
Accumulated Amortization | 92,314 | 81,099 |
Net Book Value | 31,513 | 41,184 |
Computer software | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | 114,927 | 109,209 |
Accumulated Amortization | 85,542 | 72,626 |
Net Book Value | 29,385 | 36,583 |
Other intangibles | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross | 5,191 | 5,160 |
Accumulated Amortization | 5,191 | 5,043 |
Net Book Value | 0 | 117 |
Trademarks | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 1,146,110 | 1,142,746 |
Perpetual license agreements and other | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | $ 2,250 | $ 2,250 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 1,108,907 | $ 1,133,095 |
Currency translation | 3,837 | (24,188) |
Goodwill, Ending Balance | 1,112,744 | 1,108,907 |
U.S. Activewear, Champion Europe and Australia | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Ending Balance | 684,916 | |
Innerwear | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 406,853 | 406,853 |
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 |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | 316,384 | 316,384 |
International | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 383,170 | 407,358 |
Currency translation | 3,837 | (24,188) |
Goodwill, Ending Balance | 387,007 | 383,170 |
Other | ||
Intangible Assets and Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 2,500 | 2,500 |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | $ 2,500 | $ 2,500 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Intangible Assets and Goodwill [Line Items] | ||||
Amortization expense in Continuing Operations for intangible assets subject to amortization | $ 29,769 | $ 29,973 | $ 31,069 | |
Estimated amortization expense, 2024 | 27,833 | |||
Estimated amortization expense, 2025 | 24,747 | |||
Estimated amortization expense, 2026 | 16,279 | |||
Estimated amortization expense, 2027 | 6,998 | |||
Estimated amortization expense, 2028 | 4,407 | |||
Purchase of trademarks | $ 0 | $ 103,000 | 0 | |
Selling, general and administrative expenses | Full Potential plan | Impairment of intangible assets | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Impairment of intangible assets, Continuing Operations | $ 7,302 | |||
Trademarks | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Purchase of trademarks | $ 102,500 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2021 | Jul. 10, 2019 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 3,336,750 | $ 3,872,275 | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||||
Less long-term debt issuance costs and debt discount | 36,110 | 13,198 | ||
Less current maturities | 65,000 | 247,000 | ||
Long-term debt | $ 3,235,640 | 3,612,077 | ||
Revolving Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0% | |||
Long-term debt, gross | $ 0 | 352,500 | ||
Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 8.21% | |||
Long-term debt, gross | $ 937,500 | 975,000 | ||
2023 Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 9.11% | |||
Long-term debt, gross | $ 893,250 | 0 | ||
9.000% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 9% | |||
Long-term debt, gross | $ 600,000 | 0 | ||
4.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.88% | |||
Long-term debt, gross | $ 900,000 | 900,000 | ||
4.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0% | 4.625% | ||
Long-term debt, gross | $ 0 | 900,000 | ||
3.5% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0% | 3.50% | ||
Long-term debt, gross | $ 0 | 535,275 | ||
Accounts Receivable Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.36% | |||
Long-term debt, gross | $ 6,000 | $ 209,500 |
Debt - Description of Debt Term
Debt - Description of Debt Terms (Details) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Nov. 19, 2021 USD ($) | Jun. 03, 2016 EUR (€) | Jan. 03, 2026 | Sep. 27, 2025 | Jun. 28, 2025 | Mar. 29, 2025 | Dec. 28, 2024 | Sep. 28, 2024 | Jun. 29, 2024 | Mar. 30, 2024 | Dec. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2016 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment and refinancing of debt | $ 8,466 | $ 0 | $ 43,739 | |||||||||||||
Capitalized debt issuance cost | 22,991 | |||||||||||||||
Repayments on Term Loan Facilities | 44,250 | 25,000 | 925,000 | |||||||||||||
Borrowings on Term Loan Facilities | 891,000 | 0 | 1,000,000 | |||||||||||||
Borrowings on Senior Notes | $ 600,000 | 0 | 0 | |||||||||||||
Senior Secured Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Secured Credit Facility Commitment | $ 2,000,000 | |||||||||||||||
Senior Secured Credit Facility | SOFR-based Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 2.75% | |||||||||||||||
Senior Secured Credit Facility | SOFR-based Loan, basis point credit spread adjustment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 0.10% | |||||||||||||||
Senior Secured Credit Facility | Base Rate Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 1.75% | |||||||||||||||
Senior Secured Credit Facility | During Extended Covenant Relief Period | SOFR-based Loan | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 1.25% | |||||||||||||||
Senior Secured Credit Facility | During Extended Covenant Relief Period | SOFR-based Loan | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 2.75% | |||||||||||||||
Senior Secured Credit Facility | During Extended Covenant Relief Period | Base Rate Loan | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 0.25% | |||||||||||||||
Senior Secured Credit Facility | During Extended Covenant Relief Period | Base Rate Loan | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 1.75% | |||||||||||||||
Senior Secured Credit Facility | After Extended Covenant Relief Period | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Leverage Ratio for Additional Borrowings | 3.50 | 3.50 | ||||||||||||||
Senior Secured Credit Facility | After Extended Covenant Relief Period | SOFR-based Loan | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 1% | |||||||||||||||
Senior Secured Credit Facility | After Extended Covenant Relief Period | SOFR-based Loan | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 1.75% | |||||||||||||||
Senior Secured Credit Facility | After Extended Covenant Relief Period | Base Rate Loan | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 0% | |||||||||||||||
Senior Secured Credit Facility | After Extended Covenant Relief Period | Base Rate Loan | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 0.75% | |||||||||||||||
Senior Secured Credit Facility | November 2023 Amendment | During Extended Covenant Relief Period | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum Leverage Ratio | 6.75 | |||||||||||||||
Minimum Interest Coverage Ratio | 1.63 | |||||||||||||||
Permitted asset sales basket | $ 60,000 | |||||||||||||||
General Lien Basket | 85,000 | |||||||||||||||
Limit on incremental secured indebtedness | 100,000 | |||||||||||||||
Senior Secured Credit Facility | November 2023 Amendment | During Extended Covenant Relief Period | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum Leverage Ratio | 5 | 5.25 | 5.63 | 6.38 | 6.63 | 6.63 | 6.75 | |||||||||
Minimum Interest Coverage Ratio | 2.50 | 2.25 | 2 | 1.75 | 1.63 | 1.63 | 1.63 | |||||||||
Senior Secured Credit Facility | November 2023 Amendment | After Extended Covenant Relief Period | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Annual Dividend Payment Cap | 350,000 | |||||||||||||||
Senior Secured Credit Facility | November 2023 Amendment | After Extended Covenant Relief Period | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum Leverage Ratio | 4.50 | |||||||||||||||
Minimum Interest Coverage Ratio | 2.50 | |||||||||||||||
Senior Secured Credit Facility | November 2022 and February 2023 Amendments | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
General Lien Basket | $ 165,000 | |||||||||||||||
Revolving Loan Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum Borrowing Capacity | 1,000,000 | $ 1,000,000 | 1,000,000 | |||||||||||||
Remaining borrowing capacity | 996,413 | 996,413 | ||||||||||||||
Standby and trade letters of credit issued | 3,587 | $ 3,587 | ||||||||||||||
Applicable commitment fee | 0.425% | |||||||||||||||
Revolving Loan Facility | During Extended Covenant Relief Period | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable commitment fee | 0.175% | |||||||||||||||
Revolving Loan Facility | During Extended Covenant Relief Period | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable commitment fee | 0.425% | |||||||||||||||
Revolving Loan Facility | After Extended Covenant Relief Period | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable commitment fee | 0.15% | |||||||||||||||
Revolving Loan Facility | After Extended Covenant Relief Period | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable commitment fee | 0.25% | |||||||||||||||
Term Loan A | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowings on Term Loan Facilities | 1,000,000 | |||||||||||||||
Increase in Term Loan Borrowing Capacity | $ 390,625 | |||||||||||||||
Quarterly repayment percentage, years one and two | 2.50% | |||||||||||||||
Quarterly repayment percentage, years three and four | 5% | |||||||||||||||
Quarterly repayment percentage, year five | 7.50% | |||||||||||||||
2015 Term Loan B | Excess Cash Flow Prepayment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments on Term Loan Facilities | 238,936 | |||||||||||||||
2015 Term Loan B | Voluntary Prepayment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments on Term Loan Facilities | 61,064 | |||||||||||||||
2023 Term Loan B | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | 900,000 | $ 900,000 | ||||||||||||||
Capitalized debt issuance cost | 11,917 | |||||||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 9,000 | 9,000 | ||||||||||||||
Proceeds from Debt, Net of Issuance Costs | $ 879,083 | |||||||||||||||
Quarterly repayment percentage | 0.25% | 0.25% | ||||||||||||||
2023 Term Loan B | SOFR-based Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable Margin | 3.75% | |||||||||||||||
Debt Instrument, interest rate stated percentage, floor | 0.50% | |||||||||||||||
Redemption of 5.375% Senior Notes and Refinancing of Senior Secured Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Capitalized debt issuance cost | 7,769 | |||||||||||||||
Refinancing fees incurred | 9,729 | |||||||||||||||
9.000% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 600,000 | $ 600,000 | ||||||||||||||
Capitalized debt issuance cost | 11,074 | |||||||||||||||
Proceeds from Debt, Net of Issuance Costs | $ 588,926 | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
4.875% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | 900,000 | $ 900,000 | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
4.625% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | 900,000 | |||||||||||||||
2016 New Senior Notes, Combined | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowings on Senior Notes | $ 1,773,000 | |||||||||||||||
3.5% Senior Notes, Euro Value | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | € | € 500,000 | |||||||||||||||
Borrowings on Senior Notes | € | € 492,500 | |||||||||||||||
Accounts Receivable Securitization Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Remaining borrowing capacity | 141,112 | $ 141,112 | ||||||||||||||
Line of Credit Facility, Quarterly Maximum Borrowing Capacity, First and Second Quarters | 200,000 | 200,000 | ||||||||||||||
Line of Credit Facility, Quarterly Maximum Borrowing Capacity, Third and Fourth Quarters | 225,000 | 225,000 | ||||||||||||||
Current Borrowing Capacity | 147,112 | 147,112 | ||||||||||||||
Other International Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Remaining borrowing capacity | 45,706 | 45,706 | ||||||||||||||
Standby and trade letters of credit issued | $ 61,485 | 61,485 | ||||||||||||||
Other expenses | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment and refinancing of debt | $ 0 | |||||||||||||||
Other expenses | Redemption of 4.625% Senior Notes and 3.5% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment and refinancing of debt | 8,466 | |||||||||||||||
Write off of Deferred Debt Issuance Cost | 3,834 | |||||||||||||||
Other expenses | Redemption of 3.5% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption premium | 4,632 | |||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,654 | |||||||||||||||
Other expenses | Redemption of 4.625% Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 2,180 | |||||||||||||||
Other expenses | Redemption of 5.375% Senior Notes and Refinancing of Senior Secured Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment and refinancing of debt | 45,699 | |||||||||||||||
Redemption premium | 34,840 | |||||||||||||||
Write off of Deferred Debt Issuance Cost | 8,899 | |||||||||||||||
Debt issuance costs expensed | $ 1,960 |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Maturities of Long-Term Debt [Abstract] | |
Future principal payment, 2024 | $ 65,000 |
Future principal payment, 2025 | 71,500 |
Future principal payment, 2026 | 1,734,000 |
Future principal payment, 2027 | 9,000 |
Future principal payment, 2028 | 9,000 |
Future principal payment, 2029 and thereafter | $ 1,448,250 |
Debt - Additional Disclosures (
Debt - Additional Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | |||
Payments of capitalized debt issuance costs within Continuing Operations | $ 35,388 | $ 3,159 | $ 8,346 |
Amortization of debt issuance costs within Continuing Operations | 8,939 | 7,300 | 12,305 |
Long-term debt issuance cost in other noncurrent assets | 6,551 | ||
Long-term debt issuance costs in long-term debt | $ 36,110 | 13,198 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Debt issuance costs amortization period, in years | 1 year | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt issuance costs amortization period, in years | 10 years | ||
Debt Payable to Banks | |||
Debt Instrument [Line Items] | |||
Cash paid for interest related to debt | $ 260,257 | $ 150,452 | $ 161,202 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||
Net gain | $ (17,131) | $ (130,000) | $ (96,334) |
Prior service credit | 6 | 6 | 6 |
Total gain recognized in other comprehensive income (loss) | (17,125) | (129,994) | (96,328) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (8,699) | (129,209) | (91,656) |
Pension Plan | |||
Defined Benefit Pension Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) | |||
Service cost | 990 | 1,345 | 1,488 |
Interest cost | 44,968 | 27,669 | 23,812 |
Expected return on assets | (54,197) | (49,189) | (45,923) |
Settlement cost | (1) | (6) | 861 |
Amortization of: | |||
Prior service cost | (6) | (6) | (6) |
Net actuarial loss | 16,672 | 20,972 | 24,440 |
Net periodic benefit cost | $ 8,426 | $ 785 | $ 4,672 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Funded Status of Company's Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Benefit obligation: | |||
Beginning of year | $ 926,199 | $ 1,216,161 | |
Benefits paid | (63,155) | (64,786) | |
Settlements | (104) | (125) | |
Impact of exchange rate change | 366 | (2,603) | |
Actuarial (gain) loss | 11,906 | (251,426) | |
Other | (45) | (36) | |
End of year | 921,125 | 926,199 | $ 1,216,161 |
Fair value of plan assets: | |||
Beginning of year | 816,244 | 973,598 | |
Actual return on plan assets | 66,627 | (93,497) | |
Employer contributions | 2,047 | 2,831 | |
Benefits paid | (63,155) | (64,786) | |
Settlements | (104) | (125) | |
Impact of exchange rate change | 746 | (1,741) | |
Other | (45) | (36) | |
End of year | 822,360 | 816,244 | 973,598 |
Funded status | (98,765) | (109,955) | |
Pension Plan | |||
Benefit obligation: | |||
Service cost | 990 | 1,345 | 1,488 |
Interest cost | $ 44,968 | $ 27,669 | $ 23,812 |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans - Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Pension Plans Accumulated Benefit Obligation and Fair Value of Plan Assets with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Benefit obligation | $ 921,125 | $ 926,199 | $ 1,216,161 |
Plans with benefit obligation in excess of plan assets: | |||
Benefit obligation | 898,890 | 905,749 | |
Fair value of plan assets | $ 795,765 | $ 790,641 |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans - Amounts Recognized in Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plan Amounts Recognized in the Company's Consolidated Balance Sheets [Abstract] | ||
Other noncurrent assets | $ 4,360 | $ 5,153 |
Accrued liabilities and other: Payroll and employee benefits | (1,953) | (2,388) |
Pension and postretirement benefits | (101,172) | (112,720) |
Accumulated other comprehensive loss | $ (423,404) | $ (440,529) |
Defined Benefit Pension Plans_5
Defined Benefit Pension Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plans Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | ||
Prior service cost | $ (127) | $ (133) |
Actuarial loss | 423,531 | 440,662 |
Accumulated other comprehensive loss | $ 423,404 | $ 440,529 |
Defined Benefit Pension Plans_6
Defined Benefit Pension Plans - Weighted Average Actuarial Assumptions Used in Measuring the Net Periodic Benefit Cost and Plan Obligations (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Net periodic benefit cost: | |||
Discount rate | 5.15% | 2.88% | 2.55% |
Long-term rate of return on plan assets | 6.94% | 5.24% | 4.95% |
Rate of compensation increase | 3.08% | 3.09% | 3.10% |
Interest crediting rate | 5.50% | 5.50% | 5.50% |
Plan obligations: | |||
Discount rate | 4.96% | 5.15% | 2.88% |
Rate of compensation increase | 3.09% | 3.08% | 3.09% |
Interest crediting rate | 5.50% | 5.50% | 5.50% |
Defined Benefit Pension Plans_7
Defined Benefit Pension Plans - Allocation of Pension Plan Assets (Details) | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 40% | 10% |
Foreign Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 22% | 21% |
U.S. Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 21% | 19% |
Hedge Fund of Funds | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 9% | 39% |
Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 7% | 8% |
Commodities | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 0% | 2% |
Cash and other | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Pension plan assets allocation percentage | 1% | 1% |
Defined Benefit Pension Plans_8
Defined Benefit Pension Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 04, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Defined Benefit Pension Plans Additional Information [Abstract] | ||||
Target return period | 5 years | |||
Expected benefit payments, 2024 | $ 66,178 | |||
Expected benefit payments, 2025 | 65,889 | |||
Expected benefit payments, 2026 | 67,848 | |||
Expected benefit payments, 2027 | 68,472 | |||
Expected benefit payments, 2028 | 67,979 | |||
Expected benefit payments, 2029 through 2033 | 336,789 | |||
Required cash contributions to the Company's U.S. Pension Plans, 2024 | 10,000 | |||
Required cash contributions to the Company's U.S. pension plan, prior year | 0 | $ 0 | ||
Contribution to Hanesbrands Inc. Pension Plan | $ 40,000 | |||
Nonretirement postemployment benefit plans liability | 900 | 871 | ||
Nonretirement postemployment benefit plans expense | $ 32 | $ 9 | $ 8 |
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 (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
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 | 1,681.50% | (45.00%) | (3.30%) |
Foreign | (1581.50%) | 145% | 103.30% |
Total | 100% | 100% | 100% |
Tax expense at U.S. statutory rate | 21% | 21% | 21% |
State income tax | 68.60% | (1.60%) | (0.70%) |
Tax on actual and planned remittances of foreign earnings | (40.60%) | (1.60%) | 1.50% |
Tax on foreign earnings due to U.S. tax reform including measurement period adjustments | 0% | 0% | (0.30%) |
Tax on foreign earnings (U.S. tax reform - GILTI and FDII) | (48.70%) | 3.80% | 1.70% |
Foreign taxes less than U.S. statutory rate | 182.40% | (14.00%) | (12.30%) |
Statutory stock deduction and other foreign adjustments | 338.70% | 22.50% | 0% |
Employee benefits | (15.50%) | 1% | 0.30% |
Changes in valuation allowance | (503.30%) | 101.10% | 1.90% |
Release of unrecognized tax benefit reserves | (0.60%) | (1.10%) | (0.90%) |
Tax rate change | 7.50% | 3.10% | 1% |
Tax provision adjustments and revisions to prior years' returns | (4.10%) | 3.60% | (1.60%) |
Nondeductible expenses and tax exempt income, net | 1.30% | (1.20%) | (0.40%) |
Domestic income tax credits | 13.80% | (0.70%) | (0.40%) |
Other, net | 8.90% | 1.30% | (0.50%) |
Taxes at effective worldwide tax rates | 29.40% | 137.20% | 10.30% |
Income taxes - Current and Defe
Income taxes - Current and Deferred Tax Provisions (Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Income Taxes Current And Deferred Tax Provisions Benefits [Abstract] | |||||
Current, domestic | $ 23,219 | $ 15,188 | $ (15,176) | ||
Current, foreign | 52,812 | 83,607 | 66,844 | ||
Current, state | 1,348 | (2,712) | (2,948) | ||
Current, Total | 77,379 | 96,083 | 48,720 | ||
Deferred, domestic | 29 | 201,112 | 6,934 | ||
Deferred, foreign | (84,774) | 95,558 | 1,421 | ||
Deferred, state | 0 | 91,154 | 3,032 | ||
Deferred, Total | (84,745) | 387,824 | 11,387 | ||
Total, domestic | 23,248 | 216,300 | (8,242) | ||
Total, foreign | (31,962) | 179,165 | 68,265 | ||
Total, state | 1,348 | 88,442 | 84 | ||
Total, Current and Deferred tax provisions (benefits) | $ (58,907) | $ 425,132 | $ (7,366) | $ 483,907 | $ 60,107 |
Income Taxes - Cash Tax Payment
Income Taxes - Cash Tax Payments Made by Company Primarily in Foreign Jurisdictions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Income Taxes Cash Tax Payments Made By Company Primarily In Foreign Jurisdictions [Abstract] | |||
Cash payments for income taxes | $ 92,937 | $ 95,331 | $ 95,011 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred tax assets: | ||||
Inventories | $ 81,436 | $ 92,347 | ||
Bad debt allowance | 9,700 | 15,854 | ||
Accrued expenses | 8,975 | 15,492 | ||
Employee benefits | 45,906 | 55,687 | ||
Tax credits | 18,289 | 10,859 | ||
Net operating loss and other tax carryforwards | 517,959 | 562,326 | ||
Leasing | 126,407 | 112,619 | ||
Property and equipment | 0 | 6,094 | ||
Interest carryforwards | 94,204 | 50,695 | ||
Capitalized research costs | 18,813 | 17,501 | ||
Other | 1,970 | 1,029 | ||
Gross deferred tax assets | 923,659 | 940,503 | ||
Less valuation allowances | (749,704) | (626,540) | $ (306,221) | $ (204,854) |
Less FIN48 / NOL Offset | (10,543) | 0 | ||
Deferred tax assets | 163,412 | 313,963 | ||
Deferred tax liabilities: | ||||
Derivatives | 855 | 13,781 | ||
Property and Equipment | 7,897 | 0 | ||
Leasing | 112,973 | 101,558 | ||
Accrued tax on unremitted foreign earnings | 29,138 | 26,128 | ||
Intangibles | 37,360 | 41,331 | ||
Statutory impairment | 5,849 | 247,360 | ||
Prepaids | 18 | 877 | ||
Deferred tax liabilities | (194,090) | (431,035) | ||
Net deferred tax liabilities | $ (30,678) | $ (117,072) |
Income Taxes - Summary of chang
Income Taxes - Summary of changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Valuation Allowance [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 749,704 | $ 626,540 | $ 306,221 | $ 204,854 |
Net change in the total valuation allowance, including foreign currency fluctuations | 123,164 | |||
Charged to income tax expense | ||||
Valuation Allowance [Line Items] | ||||
Net change in the total valuation allowance, including foreign currency fluctuations | 125,911 | 356,740 | 4,343 | |
Charged to other accounts | ||||
Valuation Allowance [Line Items] | ||||
Net change in the total valuation allowance, including foreign currency fluctuations | $ (2,747) | $ (36,421) | $ 97,024 |
Income Taxes - Foreign Net Oper
Income Taxes - Foreign Net Operating Loss Carryforwards (Details) - Foreign Tax Authority $ in Thousands | Dec. 30, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
2024 | $ 2,271 |
2025 | 2,114 |
2026 | 2,652 |
2027 | 4,386 |
2028 | 1,490 |
Thereafter | $ 1,161,765 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disclosure Income Taxes Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized Tax Benefits, Gross | $ 38,156 | $ 37,818 | $ 40,706 | $ 46,645 |
Beginning Balance | 36,863 | 39,572 | 45,686 | |
Adjustments related to prior year ending balance | 1,138 | |||
Additions based on tax positions related to the current year | 2,994 | 2,857 | 3,231 | |
Additions based on tax positions of prior years | 646 | 798 | 3,401 | |
Lapse of statute of limitations | (2,814) | (7,191) | (147) | |
Reductions for tax positions of prior years | (483) | (311) | (12,599) | |
Ending Balance | $ 37,206 | $ 36,863 | $ 39,572 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Additional Income Tax Information [Line Items] | ||||||
Income (loss) from continuing operations before income taxes | $ 19,034 | $ 7,024 | $ (25,092) | $ 352,738 | $ 581,075 | |
Income Tax (expense) benefit | 58,907 | (425,132) | 7,366 | (483,907) | (60,107) | |
Deferred Foreign Income Tax Expense (Benefit) | (84,774) | 95,558 | 1,421 | |||
Valuation allowance for deferred tax assets | 749,704 | 626,540 | 749,704 | 626,540 | 306,221 | $ 204,854 |
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | 123,164 | |||||
Unremitted foreign earnings not permanently reinvested | 802,522 | 802,522 | ||||
Accrued income taxes with respect to foreign earnings the Company intends to remit in the future | 27,008 | 27,008 | ||||
Recognized reduction related to realization of unrecognized tax benefit resulting from prior year tax positions | 483 | 311 | 12,599 | |||
Recognized benefit related to realization of unrecognized tax benefit resulting from expiration of statutes of limitations | 2,814 | 7,191 | 147 | |||
Reduction in amount of unrecognized tax benefits that is reasonably possible due to expirations in statutes of limitations | 23,862 | $ 23,862 | ||||
Period of unrecognized tax benefits reduction that is reasonably possible due to expirations in statutes of limitations | 12 months | |||||
Unrecognized tax benefits, which would, if recognized, affect the annual effective tax rate | 26,844 | $ 26,844 | ||||
Interest and penalties classified as income tax expense (benefit) in the Consolidated Statements of Operations | 509 | 81 | 933 | |||
Interest and penalties accrued related to unrecognized tax benefits | 6,805 | 6,303 | 6,805 | 6,303 | ||
Charged to other accounts | ||||||
Additional Income Tax Information [Line Items] | ||||||
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | (2,747) | (36,421) | 97,024 | |||
Foreign Tax Authority | ||||||
Additional Income Tax Information [Line Items] | ||||||
Gross foreign net operating loss carryforwards, approximately | 1,174,678 | 1,174,678 | ||||
Foreign interest carryforwards | 63,791 | 63,791 | ||||
Foreign Tax Authority | Operating loss carryforward | ||||||
Additional Income Tax Information [Line Items] | ||||||
Valuation allowance for deferred tax assets | 309,410 | 309,410 | ||||
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | 2,663 | |||||
Foreign Tax Authority | Other foreign deferred tax assets | ||||||
Additional Income Tax Information [Line Items] | ||||||
Valuation allowance for deferred tax assets | 36,379 | 36,379 | ||||
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | 15,151 | |||||
Federal | ||||||
Additional Income Tax Information [Line Items] | ||||||
Tax credit carryforwards | 18,037 | 18,037 | ||||
Federal interest carryforwards | 330,347 | 330,347 | ||||
Net operating loss carryforwards | 622,291 | 622,291 | ||||
State | ||||||
Additional Income Tax Information [Line Items] | ||||||
State interest carryforwards | 188,279 | 188,279 | ||||
Net operating loss carryforwards | 1,460,506 | 1,460,506 | ||||
Federal and State | Operating loss carryforward | ||||||
Additional Income Tax Information [Line Items] | ||||||
Valuation allowance for deferred tax assets | 179,023 | 179,023 | ||||
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | 139,218 | |||||
Federal and State | Other Federal and State Deferred Tax Assets | ||||||
Additional Income Tax Information [Line Items] | ||||||
Valuation allowance for deferred tax assets | $ 224,892 | 224,892 | ||||
Net increase (decrease) in the total valuation allowance, including foreign currency fluctuations | (33,868) | |||||
Switzerland and Luxembourg | ||||||
Additional Income Tax Information [Line Items] | ||||||
Gross foreign net operating loss carryforwards, approximately | $ 696,028 | $ 696,028 | ||||
Switzerland and Luxembourg | Discrete tax benefit | ||||||
Additional Income Tax Information [Line Items] | ||||||
Deferred Foreign Income Tax Expense (Benefit) | (85,122) | |||||
One-time provisional transition | Tax Cuts and Jobs Act | ||||||
Additional Income Tax Information [Line Items] | ||||||
Income Tax (expense) benefit | $ 4,668 | |||||
Rate benefit from tax holiday | Costa Rica Free Trade Zone | ||||||
Additional Income Tax Information [Line Items] | ||||||
Income Tax (expense) benefit | $ 45,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Commitments And Contingencies Additional Information [Abstract] | |||
Purchase commitments due in 2024 | $ 387,263 | ||
Purchase commitments due in 2025 | 8,879 | ||
Purchase commitments due in 2026 | 7,103 | ||
Royalty expense | 94,557 | $ 103,204 | $ 100,281 |
Minimum amounts due under license agreements, 2024 | 51,329 | ||
Minimum amounts due under license agreements, 2025 | 30,738 | ||
Minimum amounts due under license agreements, 2026 | 26,685 | ||
Minimum amounts due under license agreements, 2027 | 18,406 | ||
Minimum amounts due under license agreements, 2028 | 14,481 | ||
Minimum amounts under license agreements due thereafter | $ 32,593 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Dec. 30, 2023 | Feb. 02, 2022 | Feb. 06, 2020 | |
Class of Stock [Line Items] | ||||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, shares issued | 349,009,147 | 349,009,147 | 350,137,826 | |||||||||
Common stock, shares outstanding | 349,009,147 | 349,009,147 | 350,137,826 | |||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||||||
Total cost of shares repurchased | $ 25,018 | |||||||||||
Quarterly dividends declared, common stock, per share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||
Quarterly dividends paid, common stock, per share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||
2020 Share Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 40,000,000 | |||||||||||
2022 Share Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share repurchase program, authorized repurchase amount | $ 600,000 | |||||||||||
Share repurchase program, remaining authorized repurchase amount | $ 575,013 | |||||||||||
Number of shares repurchased during period | 1,577,000 | |||||||||||
Weighted average cost per share of shares repurchased | $ 15.84 | |||||||||||
Total cost of shares repurchased | $ 25,018 | |||||||||||
Broker's commissions paid for shares repurchased | $ 31 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | $ (512,008) | ||
Total other comprehensive income (loss), net of tax | 19,697 | $ 39,595 | $ 15,356 |
Ending Balance, net of tax | (492,311) | (512,008) | |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | (228,803) | (134,001) | |
Amounts reclassified from accumulated other comprehensive loss, before tax | 0 | (13,473) | |
Current-period other comprehensive income (loss) activity, before tax | 15,321 | (81,329) | |
Total other comprehensive income (loss), before tax | 15,321 | (94,802) | |
Ending Balance, before tax | (213,482) | (228,803) | (134,001) |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | 8,709 | 5,244 | |
Amounts reclassified from accumulated other comprehensive loss, before tax | (11,190) | 14,927 | |
Current-period other comprehensive income (loss) activity, before tax | (3,486) | (11,462) | |
Total other comprehensive income (loss), before tax | (14,676) | 3,465 | |
Ending Balance, before tax | (5,967) | 8,709 | 5,244 |
Defined Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Beginning Balance, before tax | (437,353) | (569,161) | |
Amounts reclassified from accumulated other comprehensive loss, before tax | 16,315 | 21,224 | |
Current-period other comprehensive income (loss) activity, before tax | 1,203 | 110,584 | |
Total other comprehensive income (loss), before tax | 17,518 | 131,808 | |
Ending Balance, before tax | (419,835) | (437,353) | (569,161) |
Income Taxes | |||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | |||
Beginning Balance, tax | 145,439 | 146,315 | |
Amounts reclassified from accumulated other comprehensive loss, tax | 1,868 | 3,319 | |
Current-period other comprehensive income (loss) activity, tax | (334) | (4,195) | |
Total other comprehensive income (loss), tax | 1,534 | (876) | |
Ending Balance, tax | 146,973 | 145,439 | 146,315 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | (512,008) | (551,603) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 6,993 | 25,997 | |
Current-period other comprehensive income (loss) activity, net of tax | 12,704 | 13,598 | |
Total other comprehensive income (loss), net of tax | 19,697 | 39,595 | 15,356 |
Ending Balance, net of tax | $ (492,311) | $ (512,008) | $ (551,603) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | $ (803,158) | $ (971,309) | $ (3,740,113) | $ (4,012,542) | $ (4,149,541) |
Selling, general and administrative expenses | (397,572) | (441,642) | (1,607,628) | (1,701,563) | (1,853,971) |
Interest expense, net | (69,688) | (49,665) | (275,354) | (157,073) | (163,067) |
Other expenses | 7,375 | 3,646 | 38,520 | 9,734 | 53,586 |
Income tax expense (benefit) | 58,907 | (425,132) | 7,366 | (483,907) | (60,107) |
Income (loss) from discontinued operations, net of tax | 0 | (3,965) | 443,744 | ||
Net income (loss) | $ (77,941) | $ 418,108 | 17,726 | 127,204 | (77,224) |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income (loss) | (6,993) | (25,997) | (44,386) | ||
Reclassification out of Accumulated Other Comprehensive Income | Write-off of cumulative translation associated with sale of business | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (loss) from discontinued operations, net of tax | 0 | 13,473 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Gain (loss) on derivative instruments designated as cash flow hedges | Forward foreign exchange contract | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | 4,357 | 11,336 | (15,301) | ||
Income tax expense (benefit) | (1,781) | (3,401) | 4,105 | ||
Income (loss) from discontinued operations, net of tax | 0 | (232) | (2,890) | ||
Net income (loss) | 2,576 | 7,703 | (14,086) | ||
Reclassification out of Accumulated Other Comprehensive Income | Gain (loss) on derivative instruments designated as cash flow hedges | Interest rate contract | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense, net | 5,279 | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | ||
Net income (loss) | 5,279 | 0 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Gain (loss) on derivative instruments designated as cash flow hedges | Cross-currency swap contract | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Selling, general and administrative expenses | 973 | (20,016) | (12,155) | ||
Interest expense, net | 581 | (5,940) | (3,556) | ||
Income tax expense (benefit) | 0 | 0 | 4,061 | ||
Net income (loss) | 1,554 | (25,956) | (11,650) | ||
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 | (16,315) | (20,809) | (25,671) | ||
Income tax expense (benefit) | (87) | 52 | 6,461 | ||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 560 | ||
Net income (loss) | (16,402) | (21,217) | (18,650) | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension activity associated with sale of business | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ (460) | $ 0 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Notional Amounts of Derivative Instruments (Details) € in Thousands, $ in Thousands | Dec. 30, 2023 USD ($) | Mar. 10, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 01, 2021 EUR (€) | Jul. 10, 2019 EUR (€) |
Forward foreign exchange contract | Cash Flow and Mark to Market Hedges | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 308,760 | $ 397,908 | |||
Interest rate contract | Cash Flow Hedge | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 900,000 | $ 900,000 | 0 | ||
Cross-currency swap contract | Cash Flow Hedge | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 0 | 352,920 | € 300,000 | ||
Cross-currency swap contract | Net Investment Hedge | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 0 | $ 335,940 | € 300,000 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Net fair value of derivative assets and liabilities | $ (11,289) | $ (9,373) |
Assets, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 222 | 24,914 |
Liabilities, Total | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (11,511) | (34,287) |
Forward foreign exchange contract | Other Current Assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 57 | 1,892 |
Forward foreign exchange contract | Other Current Assets | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 142 | 5,402 |
Forward foreign exchange contract | Other noncurrent assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | 110 |
Forward foreign exchange contract | Accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (2,508) | (1,263) |
Forward foreign exchange contract | Accrued liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (2,784) | (4,841) |
Forward foreign exchange contract | Other noncurrent liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (290) | (178) |
Interest rate contract | Other Current Assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 23 | 0 |
Interest rate contract | Other noncurrent liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | (5,929) | 0 |
Cross-currency swap contract | Other Current Assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | 1,033 |
Cross-currency swap contract | Other noncurrent assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | 16,477 |
Cross-currency swap contract | Accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | 0 | (252) |
Cross-currency swap contract | Other noncurrent liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | $ 0 | $ (27,753) |
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 | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | $ 11,190 | $ (14,927) | $ (34,554) | ||
Cost of sales | $ 803,158 | $ 971,309 | 3,740,113 | 4,012,542 | 4,149,541 |
Selling, general and administrative expenses | 397,572 | 441,642 | 1,607,628 | 1,701,563 | 1,853,971 |
Interest expense, net | $ 69,688 | $ 49,665 | 275,354 | 157,073 | 163,067 |
Income (loss) from discontinued operations, net of tax | 0 | 3,965 | (443,744) | ||
Accumulated Other Comprehensive Loss | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Cash Flow Hedges | (3,486) | (11,462) | (2,772) | ||
Accumulated Other Comprehensive Loss | Forward foreign exchange contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Cash Flow Hedges | 28 | 10,843 | 12,170 | ||
Accumulated Other Comprehensive Loss | Interest rate contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Cash Flow Hedges | (649) | 0 | 0 | ||
Accumulated Other Comprehensive Loss | Cross-currency swap contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Cash Flow Hedges | (2,865) | (22,305) | (14,942) | ||
Cost of sales | Forward foreign exchange contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | 4,357 | 11,336 | (15,301) | ||
Income (loss) from discontinued operations, net of tax | Forward foreign exchange contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | 0 | (307) | (3,542) | ||
Selling, general and administrative expenses | Cross-currency swap contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | 973 | (20,016) | (12,155) | ||
Interest expense, net | Interest rate contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | 5,279 | 0 | 0 | ||
Interest expense, net | Cross-currency swap contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income on Cash Flow Hedges | $ 581 | $ (5,940) | $ (3,556) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Effect of Net Investment Hedge Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 3,965 | $ (443,744) | ||
Interest expense, net | $ 69,688 | $ 49,665 | 275,354 | 157,073 | 163,067 |
Derivative and Nonderivative Instruments Used in Net Investment Hedges, Gain (Loss) Recognized in Income | 960 | (7,485) | 7,389 | ||
Euro-denominated Long-term Debt | Income (loss) from discontinued operations, net of tax | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Nonderivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (13,348) | 0 | ||
Cross-currency swap contract | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (2,505) | 0 | ||
Derivative Instruments, Gain (Loss) Recognized in Income (amounts excluded from effectiveness testing) | 960 | 8,368 | 7,389 | ||
Accumulated Other Comprehensive Loss | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Net Investment Hedges | 62 | 24,213 | 38,598 | ||
Accumulated Other Comprehensive Loss | Euro-denominated Long-term Debt | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Net Investment Hedges | (469) | 9,716 | 24,928 | ||
Accumulated Other Comprehensive Loss | Cross-currency swap contract | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI on Net Investment Hedges | $ 531 | $ 14,497 | $ 13,670 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Effect of Mark to Market Hedge Derivative Instruments (Details) - Derivatives not designated as hedging instruments - Forward foreign exchange contract - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | $ (6,277) | $ (16,847) | $ 31,577 |
Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | (6,499) | (16,557) | 24,087 |
Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | 222 | (290) | 2,784 |
Income (loss) from discontinued operations, net of tax | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Mark to Market Hedges | $ 0 | $ 0 | $ 4,706 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management - Additional Information (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||||
Apr. 01, 2021 EUR (€) numberOfCrossCurrencySwaps | Jul. 10, 2019 EUR (€) numberOfCrossCurrencySwaps | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Mar. 31, 2025 USD ($) | Mar. 10, 2023 USD ($) | |
Derivative [Line Items] | |||||||
Long-term debt, gross | $ 3,336,750 | $ 3,872,275 | |||||
Net gain (loss) expected to be reclassified into earnings during the next twelve months | 8,902 | ||||||
3.5% Senior Notes | |||||||
Derivative [Line Items] | |||||||
Long-term debt, gross | $ 0 | 535,275 | |||||
Interest rate on senior notes issued | 3.50% | 0% | |||||
3.5% Senior Notes, Euro Value | |||||||
Derivative [Line Items] | |||||||
Long-term debt, gross | € | € 500,000 | ||||||
4.625% Senior Notes | |||||||
Derivative [Line Items] | |||||||
Long-term debt, gross | $ 0 | 900,000 | |||||
Interest rate on senior notes issued | 4.625% | 0% | |||||
Euro-denominated Long-term Debt | Net Investment Hedge | |||||||
Derivative [Line Items] | |||||||
Notional amount of nonderivative instruments designated in a net investment hedge | € | € 200,000 | € 500,000 | |||||
Euro-denominated long-term debt designated as a partial European net investment hedge | 214,110 | ||||||
Forward foreign exchange contract | |||||||
Derivative [Line Items] | |||||||
Maximum Length of Time Hedged in Cash Flow Hedge | 17 months | ||||||
Interest rate contract | |||||||
Derivative [Line Items] | |||||||
Maximum Length of Time Hedged in Cash Flow Hedge | 27 months | ||||||
Interest rate contract | Cash Flow Hedge | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 900,000 | 0 | $ 900,000 | ||||
Interest rate contract | Cash Flow Hedge | Subsequent Event | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 600,000 | ||||||
Cross-currency swap contract | Interest expense, net | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in Income | 1,254 | 0 | $ 0 | ||||
Cross-currency swap contract | Cash Flow Hedge | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | numberOfCrossCurrencySwaps | 3 | ||||||
Derivative, Notional Amount | € 300,000 | 0 | 352,920 | ||||
Payments to Hedge, Operating Activities | 30,935 | ||||||
Cross-currency swap contract - fixed interest rate | 4.7945% | ||||||
Cross-currency swap contract | Net Investment Hedge | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | numberOfCrossCurrencySwaps | 2 | ||||||
Derivative, Notional Amount | € 300,000 | 0 | $ 335,940 | ||||
Cross-currency swap contract - fixed interest rate | 2.3215% | ||||||
Proceeds from Hedge, Investing Activities | 18,942 | ||||||
Cumulative Translation Adjustment | Euro-denominated Long-term Debt | Net Investment Hedge | |||||||
Derivative [Line Items] | |||||||
Nonderivative used in Net Investment Hedge, Net of Tax | 5,525 | ||||||
Cumulative Translation Adjustment | Cross-currency swap contract | Net Investment Hedge | |||||||
Derivative [Line Items] | |||||||
Derivatives used in Net Investment Hedge, Net of Tax | $ 19,001 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | $ 822,360 | $ 816,244 | $ 973,598 |
Net fair value of derivative assets and liabilities | (11,289) | (9,373) | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 41,176 | 284,875 | |
Deferred compensation plan liability | (16,001) | (16,096) | |
Net effect of financial asset less financial liability | 795,070 | 790,775 | |
Fair Value, Measurements, Recurring | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 31,435 | 158,305 | |
Fair Value, Measurements, Recurring | Foreign Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 1,469 | 33,713 | |
Fair Value, Measurements, Recurring | Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 81,812 | ||
Fair Value, Measurements, Recurring | Cash and Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 8,272 | 11,045 | |
Fair Value, Measurements, Recurring | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net fair value of derivative assets and liabilities | (11,289) | (9,373) | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 41,176 | 284,875 | |
Deferred compensation plan liability | 0 | 0 | |
Net effect of financial asset less financial liability | 41,176 | 284,875 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 31,435 | 158,305 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Foreign Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 1,469 | 33,713 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 81,812 | ||
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Cash and Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 8,272 | 11,045 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net fair value of derivative assets and liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Deferred compensation plan liability | (16,001) | (16,096) | |
Net effect of financial asset less financial liability | (27,290) | (25,469) | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Cash and Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net fair value of derivative assets and liabilities | (11,289) | (9,373) | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Deferred compensation plan liability | 0 | 0 | |
Net effect of financial asset less financial liability | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Cash and Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net fair value of derivative assets and liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 781,184 | 531,369 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Hedge Fund of Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 77,707 | 313,521 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 142,951 | ||
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Foreign Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 177,459 | 135,076 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 326,002 | 670 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 57,065 | 65,364 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Commodities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined benefit pension plan investment assets | 16,738 | ||
Fair Value, Measurements, Recurring | Forward foreign exchange contract | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 199 | 7,404 | |
Total derivative liabilities | (5,582) | (6,282) | |
Fair Value, Measurements, Recurring | Forward foreign exchange contract | Quoted Prices In Active Markets for Identical Assets (Level 1) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Forward foreign exchange contract | Significant Other Observable Inputs (Level 2) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 199 | 7,404 | |
Total derivative liabilities | (5,582) | (6,282) | |
Fair Value, Measurements, Recurring | Forward foreign exchange contract | Significant Unobservable Inputs (Level 3) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Cross-currency swap contract | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 17,510 | ||
Total derivative liabilities | (28,005) | ||
Fair Value, Measurements, Recurring | Cross-currency swap contract | Quoted Prices In Active Markets for Identical Assets (Level 1) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | ||
Total derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring | Cross-currency swap contract | Significant Other Observable Inputs (Level 2) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 17,510 | ||
Total derivative liabilities | (28,005) | ||
Fair Value, Measurements, Recurring | Cross-currency swap contract | Significant Unobservable Inputs (Level 3) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | ||
Total derivative liabilities | $ 0 | ||
Fair Value, Measurements, Recurring | Interest rate contract | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 23 | ||
Total derivative liabilities | (5,929) | ||
Fair Value, Measurements, Recurring | Interest rate contract | Quoted Prices In Active Markets for Identical Assets (Level 1) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | ||
Total derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring | Interest rate contract | Significant Other Observable Inputs (Level 2) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 23 | ||
Total derivative liabilities | (5,929) | ||
Fair Value, Measurements, Recurring | Interest rate contract | Significant Unobservable Inputs (Level 3) | Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total derivative assets | 0 | ||
Total derivative liabilities | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 3,336,750 | $ 3,872,275 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 3,259,299 | $ 3,697,856 |
Business Segment Information -
Business Segment Information - Net Sales (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) numberOfSegments | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||
Number of Operating Segments | numberOfSegments | 3 | ||||
Net sales | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Innerwear | |||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||
Net sales | 2,415,032 | 2,429,966 | 2,719,788 | ||
Activewear | |||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||
Net sales | 1,251,913 | 1,555,062 | 1,679,639 | ||
International | |||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||
Net sales | 1,748,428 | 1,914,268 | 2,066,249 | ||
Other | |||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||
Net sales | $ 221,150 | $ 334,354 | $ 335,564 |
Business Segment Information _2
Business Segment Information - Segment Operating Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment operating profit: | |||||
Total operating profit | $ 96,097 | $ 60,335 | $ 288,782 | $ 519,545 | $ 797,728 |
Operating profit | |||||
General corporate expenses | (207,037) | (232,975) | (219,984) | ||
Amortization of intangibles | (29,769) | (29,973) | (31,069) | ||
Other expenses | (7,375) | (3,646) | (38,520) | (9,734) | (53,586) |
Interest expense, net | (69,688) | (49,665) | (275,354) | (157,073) | (163,067) |
Income (loss) from continuing operations before income taxes | $ 19,034 | $ 7,024 | (25,092) | 352,738 | 581,075 |
Operating profit | |||||
Operating profit | |||||
Restructuring and other action-related charges | (115,904) | (59,858) | (131,710) | ||
Innerwear | |||||
Segment operating profit: | |||||
Total operating profit | 418,226 | 388,586 | 573,852 | ||
Activewear | |||||
Segment operating profit: | |||||
Total operating profit | 20,517 | 153,710 | 236,400 | ||
International | |||||
Segment operating profit: | |||||
Total operating profit | 210,651 | 283,036 | 339,317 | ||
Other | |||||
Segment operating profit: | |||||
Total operating profit | (7,902) | 17,019 | 30,922 | ||
Total segment operating profit | |||||
Segment operating profit: | |||||
Total operating profit | $ 641,492 | $ 842,351 | $ 1,180,491 |
Business Segment Information _3
Business Segment Information - Restructuring and Other Action-Related Charges by Income Statement Line (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cost of sales | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | $ 72,140 | $ 17,025 | $ 10,098 |
Selling, general and administrative expenses | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 43,764 | 42,833 | 121,612 |
Total included in operating profit | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 115,904 | 59,858 | 131,710 |
Other expenses | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 8,350 | 0 | 45,699 |
Interest expense, net | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | (1,254) | 0 | 0 |
Total included in income (loss) from continuing operations before income taxes | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 123,000 | 59,858 | 177,409 |
Total included in income tax (expense) benefit | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | 85,122 | (413,766) | 53,665 |
Total restructuring and other action-related charges | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Restructuring and other action-related charges | $ 37,878 | $ 473,624 | $ 123,744 |
Business Segment Information _4
Business Segment Information - Components of Restructuring and Other Action-Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Loss on extinguishment and refinancing of debt | $ 8,466 | $ 0 | $ 43,739 | ||
Total included in operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 115,904 | 59,858 | 131,710 | ||
Total included in operating profit | Global Champion performance plan | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 88,045 | 0 | 0 | ||
Total included in operating profit | Full Potential transformation plan | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 27,859 | 59,858 | 131,710 | ||
Total included in operating profit | Full Potential transformation plan | Technology | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 8,953 | 11,922 | 4,617 | ||
Total included in operating profit | Full Potential transformation plan | Headcount actions and related severance | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 6,105 | 8,221 | 23,191 | ||
Total included in operating profit | Full Potential transformation plan | Supply chain segmentation | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 4,151 | 17,982 | 5,419 | ||
Total included in operating profit | Full Potential transformation plan | Professional services | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 3,819 | 23,994 | 44,617 | ||
Total included in operating profit | Full Potential transformation plan | (Gain) loss on sale of business and classification of assets held for sale | U.S. Sheer Hosiery business | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 3,641 | (3,535) | 38,364 | ||
Total included in operating profit | Full Potential transformation plan | Impairment of intangible assets | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 0 | 0 | 7,302 | ||
Total included in operating profit | Full Potential transformation plan | Other | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 1,190 | 1,274 | 8,200 | ||
Other expenses | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 8,350 | 0 | 45,699 | ||
Loss on extinguishment and refinancing of debt | 0 | ||||
Other expenses | Cross-currency swap contract | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Amount of (gain) loss recognized in income | (116) | 0 | 0 | ||
Other expenses | Redemption of 4.625% Senior Notes and 3.5% Senior Notes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Loss on extinguishment and refinancing of debt | 8,466 | ||||
Other expenses | Redemption of 5.375% Senior Notes and Refinancing of Senior Secured Credit Facility | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Loss on extinguishment and refinancing of debt | 45,699 | ||||
Interest expense, net | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | (1,254) | 0 | 0 | ||
Interest expense, net | Cross-currency swap contract | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Amount of (gain) loss recognized in income | (1,254) | 0 | 0 | ||
Total included in income (loss) from continuing operations before income taxes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 123,000 | 59,858 | 177,409 | ||
Total included in income tax (expense) benefit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 85,122 | (413,766) | 53,665 | ||
Total included in income tax (expense) benefit | Discrete tax (expense) benefit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | $ 80,859 | $ (422,918) | 85,122 | (422,918) | 27,147 |
Total included in income tax (expense) benefit | Tax effect on actions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 0 | 9,152 | 26,518 | ||
Total restructuring and other action-related charges | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | $ 37,878 | $ 473,624 | $ 123,744 |
Business Segment Information _5
Business Segment Information - Restructuring and Other Action-Related Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
(Gain) loss on sale of business and classification of assets held for sale | $ 3,641 | $ (3,162) | $ 312,359 | ||
Loss on extinguishment and refinancing of debt | 8,466 | 0 | 43,739 | ||
Employee termination and other benefits | 13,240 | ||||
Employee termination and other benefit payments and other related adjustments | 18,520 | ||||
Cost of sales | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 72,140 | 17,025 | 10,098 | ||
Employee termination and other benefits | 3,631 | ||||
Selling, general and administrative expenses | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 43,764 | 42,833 | 121,612 | ||
Employee termination and other benefits | 9,609 | ||||
Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 115,904 | 59,858 | 131,710 | ||
Other expenses | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 8,350 | 0 | 45,699 | ||
Loss on extinguishment and refinancing of debt | 0 | ||||
Other expenses | Cross-currency swap contract | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Amount of Gain (Loss) Recognized in Income | 116 | 0 | 0 | ||
Other expenses | Redemption of 4.625% Senior Notes and 3.5% Senior Notes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Loss on extinguishment and refinancing of debt | 8,466 | ||||
Write off of Deferred Debt Issuance Cost | 3,834 | ||||
Other expenses | Redemption of 3.5% Senior Notes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Redemption premium | 4,632 | ||||
Write off of Deferred Debt Issuance Cost | 1,654 | ||||
Other expenses | Redemption of 5.375% Senior Notes and Refinancing of Senior Secured Credit Facility | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Loss on extinguishment and refinancing of debt | 45,699 | ||||
Redemption premium | 34,840 | ||||
Write off of Deferred Debt Issuance Cost | 8,899 | ||||
Debt issuance costs expensed | 1,960 | ||||
Interest expense, net | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | (1,254) | 0 | 0 | ||
Interest expense, net | Cross-currency swap contract | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Amount of Gain (Loss) Recognized in Income | 1,254 | 0 | 0 | ||
Income Taxes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 85,122 | (413,766) | 53,665 | ||
Discrete tax (expense) benefit | Income Taxes | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | $ 80,859 | $ (422,918) | 85,122 | (422,918) | 27,147 |
Global Champion performance plan | Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 88,045 | 0 | 0 | ||
Global Champion performance plan | Inventory write-downs | Cost of sales | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 59,432 | ||||
Global Champion performance plan | Professional fees, supply chain segmentation, store closures, severance and other costs | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 28,613 | ||||
Global Champion performance plan | Professional fees, supply chain segmentation, store closures, severance and other costs | Cost of sales | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 7,532 | ||||
Global Champion performance plan | Professional fees, supply chain segmentation, store closures, severance and other costs | Selling, general and administrative expenses | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 21,081 | ||||
Full Potential transformation plan | Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 27,859 | 59,858 | 131,710 | ||
Full Potential transformation plan | (Gain) loss on sale of business and classification of assets held for sale | Selling, general and administrative expenses | Continuing Operations, Disposal Group, Held-for-sale | U.S. Sheer Hosiery business | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
(Gain) loss on sale of business and classification of assets held for sale | 3,641 | (3,535) | 38,364 | ||
Full Potential transformation plan | (Gain) loss on sale of business and classification of assets held for sale | Operating profit | U.S. Sheer Hosiery business | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 3,641 | (3,535) | 38,364 | ||
Full Potential transformation plan | Supply chain segmentation | Cost of sales | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 4,151 | 17,982 | 7,815 | ||
Full Potential transformation plan | Supply chain segmentation | Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 4,151 | 17,982 | 5,419 | ||
Full Potential transformation plan | Impairment of intangible assets | Selling, general and administrative expenses | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Impairment of intangible assets, Continuing Operations | 7,302 | ||||
Full Potential transformation plan | Impairment of intangible assets | Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 0 | 0 | 7,302 | ||
Full Potential transformation plan | Headcount actions and related severance | Operating profit | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Restructuring and other action-related charges | 6,105 | 8,221 | $ 23,191 | ||
Accrued liabilities and other: Other | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Other employee-related liabilities, current | $ 10,890 | $ 16,170 | $ 10,890 | $ 16,170 |
Business Segment Information _6
Business Segment Information - Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Inventories | $ 1,368,018 | $ 1,979,672 |
Assets held for sale | 13,327 | |
All other assets | 4,272,296 | 4,510,877 |
Total assets | 5,640,314 | 6,503,876 |
Innerwear | ||
Assets: | ||
Inventories | 635,361 | 918,104 |
Activewear | ||
Assets: | ||
Inventories | 404,972 | 665,500 |
International | ||
Assets: | ||
Inventories | 302,197 | 364,231 |
Other | ||
Assets: | ||
Inventories | 25,488 | 31,837 |
Unallocated | ||
Assets: | ||
Inventories | 0 | 0 |
Assets held for sale | 13,327 | |
All other assets | $ 4,272,296 | $ 4,510,877 |
Business Segment Information _7
Business Segment Information - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Depreciation and amortization expense: | |||
Depreciation and amortization expense | $ 105,037 | $ 106,267 | $ 110,130 |
Operating Segments | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 72,868 | 73,729 | 76,432 |
Innerwear | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 33,712 | 26,518 | 25,816 |
Activewear | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 18,107 | 24,200 | 23,562 |
International | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 18,324 | 19,670 | 22,476 |
Other | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | 2,725 | 3,341 | 4,578 |
Corporate | |||
Depreciation and amortization expense: | |||
Depreciation and amortization expense | $ 32,169 | $ 32,538 | $ 33,698 |
Business Segment Information _8
Business Segment Information - Additional Revenue Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenue from External Customer [Line Items] | |||||
Worldwide sales by product category | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Innerwear Product Category | |||||
Revenue from External Customer [Line Items] | |||||
Worldwide sales by product category | 3,529,066 | 3,749,168 | 4,077,016 | ||
Activewear Product Category | |||||
Revenue from External Customer [Line Items] | |||||
Worldwide sales by product category | $ 2,107,457 | $ 2,484,482 | $ 2,724,224 | ||
Wal-Mart | Revenue Benchmark | Customer Concentration Risk | |||||
Revenue from External Customer [Line Items] | |||||
External customer's percentage of total sales | 18% | 16% | 17% |
Geographic Area Information - S
Geographic Area Information - Sales and Property, Net by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Property, net | 414,366 | 442,404 | 414,366 | 442,404 | 441,401 |
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 4,109,575 | 4,532,595 | 4,995,230 | ||
Property, net | 293,176 | 325,957 | 293,176 | 325,957 | 325,188 |
Asia Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 1,029,498 | 1,149,954 | 1,257,037 | ||
Property, net | 90,110 | 85,966 | 90,110 | 85,966 | 85,538 |
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 488,032 | 534,892 | 530,440 | ||
Property, net | 31,080 | 30,481 | 31,080 | 30,481 | 30,675 |
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 9,418 | 16,209 | 18,533 | ||
Property, net | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||||
Net sales | $ 1,296,827 | $ 1,473,286 | $ 5,636,523 | $ 6,233,650 | $ 6,801,240 |
Cost of sales | 803,158 | 971,309 | 3,740,113 | 4,012,542 | 4,149,541 |
Gross profit | 493,669 | 501,977 | 1,896,410 | 2,221,108 | 2,651,699 |
Selling, general and administrative expenses | 397,572 | 441,642 | 1,607,628 | 1,701,563 | 1,853,971 |
Operating profit | 96,097 | 60,335 | 288,782 | 519,545 | 797,728 |
Other expenses | 7,375 | 3,646 | 38,520 | 9,734 | 53,586 |
Interest expense, net | 69,688 | 49,665 | 275,354 | 157,073 | 163,067 |
Income (loss) from continuing operations before income taxes | 19,034 | 7,024 | (25,092) | 352,738 | 581,075 |
Income tax expense (benefit) | (58,907) | 425,132 | (7,366) | 483,907 | 60,107 |
Income (loss) from continuing operations | (17,726) | (131,169) | 520,968 | ||
Income (loss) from discontinued operations, net of tax | 0 | 3,965 | (443,744) | ||
Net income (loss) | $ 77,941 | $ (418,108) | $ (17,726) | $ (127,204) | $ 77,224 |
Earnings (loss) per share - basic: | |||||
Continuing operations | $ (0.05) | $ (0.37) | $ 1.48 | ||
Discontinued operations | 0 | 0.01 | (1.26) | ||
Net income (loss) | $ 0.22 | $ (1.19) | (0.05) | (0.36) | 0.22 |
Earnings (loss) per share - diluted: | |||||
Continuing operations | (0.05) | (0.37) | 1.48 | ||
Discontinued operations | 0 | 0.01 | (1.26) | ||
Net income (loss) | $ 0.22 | $ (1.19) | $ (0.05) | $ (0.36) | $ 0.22 |