Kontoor Brands (KTB) 10-Q 20 Jun 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 30, 2019	May 23, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	KTB
Entity Registrant Name	Kontoor Brands, Inc.
Entity Central Index Key	0001760965
Current Fiscal Year End Date	--12-28
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,921,092

Combined Balance Sheets (Unaudi

Combined Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Current assets
Cash and equivalents	$ 102,945	$ 96,776	$ 88,234
Accounts receivable, less allowance for doubtful accounts of $10,826 at March 2019, $10,549 at December 2018 and $8,121 at March 2018	299,328	252,966	318,480
Due from related parties, current	291,127	547,690	274,368
Related party notes receivable	517,940	517,940	546,740
Inventories	519,006	473,812	499,849
Other current assets	50,671	52,014	51,783
Total current assets	1,781,017	1,941,198	1,779,454
Due from related parties, noncurrent	370	611	1,576
Property, plant and equipment, net	138,972	138,449	142,958
Operating lease assets	77,305	0	0
Intangible assets, net	51,913	53,059	56,638
Goodwill	213,623	214,516	220,233
Other assets	122,210	110,632	125,106
TOTAL ASSETS	2,385,410	2,458,465	2,325,965
Current liabilities
Short-term borrowings	8,368	3,215	12,103
Accounts payable	147,403	134,129	131,667
Due to related parties, current	3,865	16,140	60,424
Related party notes payable	241,867	269,112	269,112
Accrued liabilities	206,517	194,228	171,501
Operating lease liabilities, current	29,156	0	0
Total current liabilities	637,176	616,824	644,807
Operating lease liabilities, noncurrent	51,533	0	0
Other liabilities	117,719	118,189	117,376
Commitments and contingencies
Total liabilities	806,428	735,013	762,183
Equity
Parent company investment	1,723,406	1,868,634	1,676,563
Accumulated other comprehensive loss	(144,424)	(145,182)	(112,781)
Total equity	1,578,982	1,723,452	1,563,782
TOTAL LIABILITIES AND EQUITY	$ 2,385,410	$ 2,458,465	$ 2,325,965

Combined Balance Sheets (Unau_2

Combined Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 10,826	$ 10,549	$ 8,121

Combined Statements of Income (

Combined Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net revenues (including sales to related parties of $10,611 and $13,479 for March 2019 and March 2018, respectively)	$ 648,344	$ 669,663
Costs and operating expenses
Cost of goods sold (including purchases from related parties of $256 and $827 for March 2019 and March 2018, respectively)	401,025	382,421
Selling, general and administrative expenses	222,124	194,834
Total costs and operating expenses	623,149	577,255
Operating income	25,195	92,408
Related party interest income, net	2,339	1,651
Other interest income, net	1,325	917
Other expense, net	(971)	(1,197)
Income before income taxes	27,888	93,779
Income taxes	12,475	14,083
Net income	$ 15,413	$ 79,696
Earnings per common share
Basic (in USD per share)	$ 0.27	$ 1.41
Diluted (in USD per share)	$ 0.27	$ 1.41

Combined Statements of Income_2

Combined Statements of Income (Unaudited) Combined Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 648,344	$ 669,663
Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue	10,611	13,479
Related parties amount in cost of sales	$ 256	$ 827

Combined Statements of Comprehe

Combined Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 15,413	$ 79,696
Other comprehensive income
Foreign currency translation, net of related taxes	758	9,701
Total other comprehensive income	758	9,701
Comprehensive income	$ 16,171	$ 89,397

Combined Statements of Cash Flo

Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
OPERATING ACTIVITIES
Net income	$ 15,413	$ 79,696
Adjustments to reconcile net income to cash provided (used) by operating activities:
Depreciation and amortization	7,703	8,310
Stock-based compensation	7,685	3,740
Provision for doubtful accounts	2,730	(10)
Other	(512)	(362)
Changes in operating assets and liabilities:
Accounts receivable	(48,473)	(60,849)
Inventories	(44,926)	(61,146)
Due from related parties	256,803	(54,329)
Accounts payable	12,935	(43,613)
Income taxes	1,311	(5,573)
Accrued liabilities	9,426	18,353
Due to related parties	(12,268)	22,412
Other assets and liabilities	(1,340)	(20,994)
Cash provided (used) by operating activities	206,487	(114,365)
INVESTING ACTIVITIES
Capital expenditures	(5,300)	(6,528)
Repayments received from related party notes receivable	0	1,000
Other, net	(20)	6,428
Cash (used) provided by investing activities	(5,320)	900
FINANCING ACTIVITIES
Net increase in short-term borrowings	5,081	7,565
Repayments of related party notes payable	(27,245)	0
Net transfers (to) from parent	(173,485)	109,705
Cash (used) provided by financing activities	(195,649)	117,270
Effect of foreign currency rate changes on cash and cash equivalents	651	3,618
Net change in cash and cash equivalents	6,169	7,423
Cash, cash equivalents and restricted cash – beginning of year	96,776	80,811
Cash, cash equivalents and restricted cash – end of period	$ 102,945	$ 88,234

Combined Statements of Equity (

Combined Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Parent Company Investment	Accumulated Other Comprehensive Loss
Balance, beginning at Dec. 30, 2017	$ 1,357,893	$ 1,480,375	$ (122,482)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	79,696	79,696
Foreign currency translation	9,701		9,701
Net transfers from (to) parent	113,445	113,445
Balance, ending at Mar. 31, 2018	1,563,782	1,676,563	(112,781)
Balance, beginning at Dec. 29, 2018	1,723,452	1,868,634	(145,182)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,413	15,413
Foreign currency translation	758		758
Net transfers from (to) parent	(157,928)	(157,928)
Balance, ending at Mar. 30, 2019	$ 1,578,982	$ 1,723,406	$ (144,424)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Background On August 13, 2018, V.F. Corporation ("VF") announced its intention to spin-off its Jeanswear business into a separate publicly traded company (the "Separation"). The Jeanswear business includes the Wrangler ® , Lee ® and Rock & Republic ® brands, as well as the VF Outlet™ business. The financial statements as of March 30, 2019 are prior to the Separation and thus are prepared on a "carve-out" basis as described below. On May 22, 2019, VF completed the spin-off of Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") through a pro-rata distribution of one share of Kontoor common stock for every seven shares of VF common stock held at the close of business on the record date of May 10, 2019. Kontoor began to trade as a separate public company (NYSE: KTB) on May 23, 2019. In connection with the Separation, Kontoor transferred approximately $1.0 billion to VF on May 17, 2019 from a newly structured third-party debt issuance. Description of Business The Company is a global denim and casual apparel company headquartered in the United States ("U.S."). The Company designs, produces, procures, markets and distributes apparel primarily under the brand names Wrangler ® and Lee ® . The Company's products are sold in the U.S. through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores and online. The Company's products are also sold internationally, primarily in Europe and Asia, through department, specialty, company-operated, concession retail and independently operated partnership stores and online. VF Outlet™ stores carry Wrangler ® and Lee ® branded products, as well as merchandise that is specifically purchased for sale in these stores, including products from VF. Fiscal Year The Company operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. Accordingly, the three-month period ended March 30, 2019 represents the first quarter of the Company's fiscal year ended December 28, 2019 ("fiscal 2019"). For presentation purposes herein, all references to periods ended March 2019 , December 2018 and March 2018 correspond to the fiscal periods ended March 30, 2019 , December 29, 2018 and March 31, 2018 , respectively. Basis of Presentation These accompanying unaudited combined financial statements reflect the historical financial position, results of operations and cash flows of the Company for the periods presented as historically managed within VF. The unaudited combined financial statements have been derived from the consolidated financial statements and accounting records of VF. They have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. In the opinion of management, the accompanying combined financial statements contain all adjustments, consisting of only normal recurring adjustments necessary to fairly state the combined financial position, results of operations and cash flows of the Company for the interim periods presented. The combined financial statements may not be indicative of the Company's future performance and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had it operated as an independent company during the periods presented. Additionally, operating results for the three months ended March 2019 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2019. The unaudited combined financial statements should be read in conjunction with the audited combined financial statements for the fiscal year ended December 29, 2018 included in our Registration Statement on Form 10, as amended and filed with the Securities and Exchange Commission on April 30, 2019 ("2018 Form 10"). The combined statements of income include costs for certain centralized functions and programs provided and administered by VF that are charged directly to the Company. These centralized functions and programs include, but are not limited to, information technology, human resources, accounting shared services, supply chain, insurance, and the service cost component of net periodic pension benefit. In addition, for purposes of preparing these combined financial statements on a "carve-out" basis under U.S. GAAP, a portion of VF's total corporate expenses are allocated to the Company. These expense allocations include the cost of corporate functions and resources provided by or administered by VF including, but not limited to, executive management, finance, accounting, legal, human resources, and related benefit costs associated with such functions, such as stock-based compensation and the non-service components of net periodic pension benefit. Allocations also include the cost of operating VF's corporate headquarters located in Greensboro, North Carolina. Costs are allocated to the Company based on direct usage when identifiable or, when not directly identifiable, on the basis of proportional revenues, cost of goods sold or square footage, as applicable. Management considers the basis on which the expenses have been allocated to reasonably reflect the utilization of services provided to, or benefit received by, the Company during the periods presented. However, the allocations may not reflect the expenses that would have incurred if the Company had been a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Going forward, the Company will assess whether it performs these functions using its own resources or outsourced services. However, some of these functions will continue to be provided by VF under transition services agreements for a period following the Separation. Additionally, the Company will provide some services to VF under reverse transition services agreements. The Company has also entered into certain commercial arrangements with VF in connection with the Separation. The combined financial statements include certain assets and liabilities that have historically been held at the VF corporate level but are specifically identifiable or otherwise attributable to the Company. VF's third-party long-term debt and the related interest expense have not been allocated to the Company for any of the periods presented as the Company was not the legal obligor of such debt. All intracompany transactions are eliminated. All transactions between the Company and VF are included in these combined financial statements. For those transactions between the Company and VF that were historically settled in cash, the Company has reflected such balances in the combined balance sheets as "due from related parties" or "due to related parties". The aggregate net effect of transactions between the Company and VF that were not historically settled in cash are reflected in the combined balance sheets within "parent company investment" and in the combined statements of cash flows within "net transfers to parent".

RECENTLY ADOPTED AND ISSUED ACC

RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS	3 Months Ended
	Mar. 30, 2019
Accounting Changes and Error Corrections [Abstract]
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS	RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” an update that requires entities to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients and interim transition disclosure requirements. This guidance was adopted by the Company during the first quarter of fiscal 2019 utilizing the optional transition method, which resulted in a $2.7 million cumulative effect adjustment to beginning retained earnings for the period ended March 2019. The adoption of these standards did not have a significant impact on the Company's combined statement of income and combined statement of cash flows. Refer to Note 3 of the combined financial statements for additional information. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815)": Targeted Improvements to Accounting for Hedging Activities," an update that amends and simplifies certain aspects of hedge accounting rules to better portray the economic results of risk management activities in the financial statements. The FASB has subsequently issued updates to the standard to provide additional guidance on specific topics. This guidance was adopted by the Company during the first quarter of fiscal 2019 and did not have a significant impact on the combined financial statements. In February 2018, the FASB issued ASU 2018-02, " Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, " an update that addresses the effect of the change in the U.S. federal corporate income tax rate due to the enactment of the Tax Act on items within accumulated other comprehensive income (loss). This guidance was adopted by the Company during the first quarter of fiscal 2019 and did not have a significant impact on the combined financial statements. In July 2018, the FASB issued ASU 2018-09, "Codification Improvements," an update that provides technical corrections, clarifications and other improvements across a variety of accounting topics. The transition and effective date guidance is based on the facts and circumstances of each update; however, many of them became effective for the Company at the beginning of fiscal 2019. The adoption of this guidance did not have a significant impact on the combined financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. This guidance will be effective for the Company beginning in fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on the combined financial statements. The adoption of this guidance is not expected to have a significant impact on the combined financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement," an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. This guidance will be effective for the Company beginning in fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statement disclosures. The adoption of this guidance is not expected to have a significant impact on the combined financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans," an update that modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. This guidance will be effective for the Company beginning in fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statement disclosures. The adoption of this guidance is not expected to have a significant impact on the combined financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance will be effective for the Company beginning in fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on the combined financial statements. The adoption of this guidance is not expected to have a significant impact on the combined financial statements.

LEASES

LEASES	3 Months Ended
	Mar. 30, 2019
Leases [Abstract]
LEASES	pany enters into operating leases for offices, operational facilities, retail locations, vehicles and other assets to facilitate its operations that expire at various dates through 2027. Leases for real estate typically have initial terms ranging from 3 to 15 years, generally with renewal options. Leases for equipment typically have initial terms ranging from 3 to 7 years. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. These lease terms may include optional renewals, terminations or purchases, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. For retail real estate leases, the Company does not typically include renewal options in the underlying lease term. For non-retail real estate leases, when renewal options are reasonably certain to be exercised, the Company includes the renewal options in the underlying lease term, up to a maximum of ten years. Renewals for all other leases are determined on a lease-by-lease basis. Upon adoption of ASU 2016-02, the Company elected the package of practical expedients permitted under the new lease standard, which allows the Company to not reassess whether a contract contains a lease, how the lease is classified, and if initial direct costs can be capitalized. The Company elected to combine non-lease components with the related lease components for real estate, vehicles and other significant asset arrangements. The Company treats the combined items as a single lease component for accounting purposes. Lastly, the Company elected not to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. Certain of the Company’s leases contain fixed, indexed, or market-based escalation clauses which impact future payments. Certain arrangements contain variable payment provisions, such as payments based on sales volumes or amounts and mileage, or excess mileage. The Company’s leases typically contain customary covenants and restrictions. The Company determines whether a contract is a lease at inception. This typically requires more judgment in storage and service arrangements where the Company must determine whether its rights to specific physical or production capacity may represent substantially all of the available capacity. The Company measures right-of-use assets and related lease liabilities based on the present value of remaining lease payments, including in-substance fixed payments, the current payment amount when payments depend on an index or rate (e.g., inflation adjustments, market renewals), and the amount the Company believes is probable to be paid to the lessor under residual value guarantees, when applicable. Lease contracts may include fixed payments for non-lease components, such as maintenance, which are included in the measurement of lease liabilities for certain asset classes based on the Company’s election to combine lease and non-lease components. As applicable borrowing rates are not typically implied within our lease arrangements, the Company discounts lease payments based on its estimated incremental borrowing rate at lease commencement, or modification, which is based on the Company’s estimated credit rating, the lease term at commencement and the contract currency of the lease arrangement. The following table presents the lease-related assets and liabilities recorded in the combined balance sheet: (in thousands) March 2019 Assets Operating lease assets, noncurrent $ 77,305 Total lease assets $ 77,305 Liabilities Operating lease liabilities, current $ 29,156 Operating lease liabilities, noncurrent 51,533 Total lease liabilities $ 80,689 Weighted-average remaining lease term (in years) Operating leases 3.69 Weighted-average discount rate Operating leases 3.27 % Lease costs The following table presents certain information related to the lease costs for operating leases: (in thousands) Three Months Ended March 2019 Operating lease cost $ 7,613 Short-term lease cost (excluding leases of one month or less) 491 Variable lease cost 2,816 Total lease costs $ 10,920 Rent expense associated with operating leases for the three months ended March 2018 totaled approximately $10.6 million . Other information The following table presents supplemental cash flow information related to leases: (in thousands) Three Months Ended March 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows impact - operating leases $ 10,641 Right-of-use assets obtained in exchange for new operating leases $ 7,837 The following table reconciles maturities of operating lease liabilities as of March 30, 2019 to the lease liabilities reflected in the combined balance sheet: (in thousands) Lease Obligations 2019 (excluding the three months ended March 2019) $ 25,618 2020 26,388 2021 17,031 2022 7,922 2023 4,805 Thereafter 5,679 Total future minimum lease payments 87,443 Less: amounts related to imputed interest (6,754 ) Present value of future minimum lease payments 80,689 Less: operating lease liabilities, current (29,156 ) Operating lease liabilities, noncurrent $ 51,533 As of March 30, 2019, the Company has entered into approximately $3.0 million of operating lease arrangements, on an undiscounted basis, that have not yet commenced. The Company continuously monitors and may negotiate contract amendments that include extensions or modifications to existing leases. The following table presents the future minimum lease payments during the noncancelable lease terms as presented under ASC 840: (in thousands) December 2018 2019 $ 33,562 2020 29,246 2021 17,810 2022 7,932 2023 4,353 Thereafter 4,582 Total future minimum lease payments $ 97,485

REVENUES

REVENUES	3 Months Ended
	Mar. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUES	REVENUES The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied based on the transfer of control of promised goods or services. The transfer of control typically occurs at a point in time based on consideration of when the customer has i) an obligation to pay for, ii) physical possession of, iii) legal title to, iv) risks and rewards of ownership of and v) accepted the goods or services. The timing of revenue recognition within the wholesale channels occurs either on shipment or delivery of goods based on contractual terms with the customer. The timing of revenue recognition in the direct-to-consumer channels generally occurs at the point of sale within Company-operated or concession retail stores and either on shipment or delivery of goods for e-commerce transactions based on contractual terms with the customer. For finished products shipped directly to customers from our suppliers, the Company’s promise to the customer is a performance obligation to provide the specified goods and the Company has discretion in establishing pricing, and thus the Company is the principal in the arrangement and revenue is recognized on a gross basis at the transaction price. The duration of contractual arrangements with our customers in the wholesale and direct-to-consumer channels is typically less than one year. Payment terms with customers are generally between 30 and 60 days. The Company does not adjust the promised amount of consideration for the effects of a significant financing component as it is expected, at contract inception, that the period between the transfer of the promised good or service to the customer and the customer payment for the good or service will be one year or less. The amount of revenue recognized in the wholesale and direct-to-consumer channels reflects the expected consideration to be received for providing the goods or services to the customer, which includes estimates for variable consideration. Variable consideration includes allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. The Company utilizes the expected value method in determining its estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends and current economic conditions. Revenue from the sale of gift cards is deferred and recorded as a contract liability until the gift card is redeemed by the customer, factoring in breakage as appropriate, which considers whether the Company has a legal obligation to remit the value of the unredeemed gift card to any jurisdiction under unclaimed property regulations. The VF Outlet™ stores maintain customer loyalty programs where customers earn rewards from qualifying purchases, which are redeemable for discounts on future purchases or other rewards. For its customer loyalty programs, the Company estimates the standalone selling price of the loyalty rewards and allocates a portion of the consideration for the sale of products to the loyalty points earned. The deferred amount is recorded as a contract liability, and is recognized as revenue when the points are redeemed or when the likelihood of redemption is remote. The Company has elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as "selling, general and administrative expenses" at the time the related revenue is recognized. Shipping and handling costs billed to customers are included in "net revenues". Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from the transaction price. The Company has licensing agreements for its symbolic intellectual property, most of which include minimum guaranteed royalties. Royalty income is recognized as earned over the respective license term based on the greater of minimum guarantees or the licensees’ sales of licensed products at rates specified in the licensing contracts. Royalty income related to the minimum guarantees is recognized using a measure of progress with variable amounts recognized only when the cumulative earned royalty exceeds the minimum guarantees. As of March 2019 , the Company expects to recognize $38.2 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects such amounts to be recognized over time through March 2023. The variable consideration is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption. The Company has applied the practical expedient to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. Performance Obligations Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. The Company elected the practical expedients to not disclose the transaction price allocated to remaining performance obligations for i) variable consideration related to sales-based royalty arrangements and ii) contracts with an original expected duration of one year or less. As of March 2019 , there were no arrangements with transaction price allocated to remaining performance obligations other than (i) contracts for which the Company has applied the practical expedients discussed above and (ii) fixed consideration related to future minimum guarantees. For the three months ended March 2019 , revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not material. Contract Balances Accounts receivable represent the Company's unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less an estimated allowance for doubtful accounts. Contract assets are rights to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. Once the Company has an unconditional right to consideration under a contract, amounts are invoiced and contract assets are reclassified to "accounts receivable". The Company's primary contract assets relate to sales-based royalty arrangements. Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's primary contract liabilities relate to gift cards, loyalty programs and sales-based royalty arrangements. The following table provides information about accounts receivable, contract assets and contract liabilities recorded in the combined balance sheets: (In thousands) March 2019 March 2018 Accounts receivable, net $ 299,328 $ 318,480 Contract assets (a) 1,930 680 Contract liabilities (b) 1,995 2,292 (a) Included in "other current assets" in the combined balance sheets. (b) Included in "accrued liabilities" in the combined balance sheets. For the three months ended March 2019 and 2018 , the Company recognized $1.3 million and $1.2 million , respectively, of revenue that was previously included in the contract liability balances. The changes in the contract asset and contract liability balances primarily result from the timing differences between the Company's satisfaction of performance obligations and the customer's payment. Disaggregation of Revenue The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors. Revenues from licensing arrangements have been included within the U.S. or Non-U.S. Wholesale channels, based on the respective region covered by the agreement. Branded Direct-to-Consumer revenues include the distribution of our products via concession retail locations internationally, Wrangler ® and Lee ® branded full-price stores globally and Company-owned outlet stores globally. The Branded Direct-to-Consumer channel also includes our branded products sold in our U.S.-based VF Outlet™ stores and our products that are marketed and distributed online via www.wrangler.com and www.lee.com. The Other channel includes (i) sales of VF-branded (other than Wrangler ® and Lee ® ) and third-party branded merchandise in our VF Outlet™ stores, (ii) sales to VF for products manufactured in our plants and use of our transportation fleet and (iii) revenues from fulfilling a transition services agreement related to VF's sale of its Nautica ® brand business in mid-2018. Three Months Ended March 2019 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 276,825 $ 100,859 $ 6,725 $ 384,409 Non-U.S. Wholesale 68,655 100,896 — 169,551 Branded Direct-To-Consumer 24,455 39,776 — 64,231 Other — — 30,153 30,153 Total $ 369,935 $ 241,531 $ 36,878 $ 648,344 Geographic revenues U.S. $ 293,869 $ 119,120 $ 36,878 $ 449,867 International 76,066 122,411 — 198,477 Total $ 369,935 $ 241,531 $ 36,878 $ 648,344 Three Months Ended March 2018 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 263,786 $ 110,259 $ 7,564 $ 381,609 Non-U.S. Wholesale 76,006 107,861 — 183,867 Branded Direct-To-Consumer 25,191 43,841 — 69,032 Other — — 35,155 35,155 Total $ 364,983 $ 261,961 $ 42,719 $ 669,663 Geographic revenues U.S. $ 279,640 $ 128,964 $ 42,719 $ 451,323 International 85,343 132,997 — 218,340 Total $ 364,983 $ 261,961 $ 42,719 $ 669,663

SALE OF ACCOUNTS RECEIVABLE

SALE OF ACCOUNTS RECEIVABLE	3 Months Ended
	Mar. 30, 2019
Receivables [Abstract]
SALE OF ACCOUNTS RECEIVABLE	SALE OF ACCOUNTS RECEIVABLE VF has an agreement with a financial institution to sell selected trade accounts receivable on a recurring, non-recourse basis. Under the agreement, up to $377.5 million of VF's trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. Prior to the separation from VF, the Company had a separate agreement with VF, pursuant to which the Company's trade accounts receivable were sold as part of this program. The Company did not retain any interests in the sold accounts receivable but continued to service and collect outstanding accounts receivable on behalf of VF. The Company removes the sold balances from "accounts receivable" in the combined balance sheet at the time of sale. The amount due from VF for these sales is separately reflected in the combined balance sheets within "due from related parties", as VF periodically remits cash to the Company for these transactions. Refer to Note 14 of the combined financial statements for additional information. During the three months ended March 2019 and March 2018 , the Company sold total trade accounts receivable of $245.0 million and $243.1 million , respectively, to VF. As of March 2019 , December 2018 and March 2018 , $286.8 million , $544.9 million and $266.1 million , respectively, of the sold trade accounts receivable had been removed from "accounts receivable" and reflected in the combined balance sheet within "due from related parties". The Company's portion of the funding fee charged by the financial institution is reflected in the combined statements of income within "other expense, net" and was $1.4 million and $1.0 million

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES (In thousands) March 2019 December 2018 March 2018 Finished products $ 454,763 $ 396,345 $ 439,020 Work-in-process 37,872 37,466 20,810 Raw materials 26,371 40,001 40,019 Total inventories $ 519,006 $ 473,812 $ 499,849

PENSION PLANS

PENSION PLANS	3 Months Ended
	Mar. 30, 2019
Retirement Benefits [Abstract]
PENSION PLANS	PENSION PLANS Certain Company employees participate in U.S. and international defined benefit pension plans sponsored by VF (the "Shared Plans"), which include participants of other VF operations. The Company accounts for its participation in the Shared Plans as a multi-employer benefit plan. Accordingly, net periodic pension benefits specifically related to Company employees are reflected in the combined statements of income and the Company does not record an asset or liability in relation to the funded or unfunded status of the Shared Plans. The Company recognized the following net pension benefits for the Shared Plans: Three Months Ended (In thousands) March 2019 March 2018 Service cost $ 336 $ 1,366 Non-service components (965 ) (2,095 ) Net periodic pension benefit $ (629 ) $ (729 ) The service cost component of net periodic pension benefit is reflected in the combined statements of income within "cost of goods sold" and "selling, general and administrative expenses". The non-service components of net periodic pension benefit is reflected in the combined statements of income within "selling, general and administrative expenses."

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 30, 2019
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The Company's comprehensive income consists of net income and specified components of other comprehensive loss (“OCL”), which relate to changes in assets and liabilities that are not included in net income but are instead deferred and accumulated within a separate component of equity in the combined balance sheets. The Company's comprehensive income is presented in the combined statements of comprehensive income. The changes in accumulated OCL, all of which relate to foreign currency translation, are as follows: (In thousands) Accumulated OCL Balance, December 2018 $ (145,182 ) Gains arising during period 758 Income tax effect — Balance, March 2019 $ (144,424 ) (In thousands) Accumulated OCL Balance, December 2017 $ (122,482 ) Gains arising during period 9,701 Income tax effect — Balance, March 2018 $ (112,781 )

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Certain Company employees participate in the VF amended and restated 1996 Stock Compensation Plan. The following disclosures of stock-based compensation activity are based on grants related directly to Company employees. During the three months ended March 2019 , VF granted stock options to the Company's employees to purchase 4,036 shares of VF's common stock at a weighted average exercise price of $82.38 per share. The exercise price of each option granted was equal to the fair market value of VF's common stock on the date of grant. Employee stock options vest in equal annual installments over three years . The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates the following assumptions for inputs: Three Months Ended March 2019 Expected volatility 25% to 27% Weighted average expected volatility 26% Expected term (in years) 6.1 to 7.5 Weighted average dividend yield 2.5% Risk-free interest rate 2.5% to 2.8% Weighted average fair value at date of grant $18.13

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES For purposes of the Company's combined financial statements, income taxes have been calculated as if the Company were filing income tax returns on a standalone basis. The Company's U.S. operations and certain of its non-U.S. operations historically have been included within the tax returns of VF, or VF's subsidiaries, that may not remain with the Company after the Separation. The Company believes the assumptions supporting its allocations and presentation of income taxes on a separate return basis are reasonable. However, the Company's tax results, as presented in the combined financial statements, may not be reflective of the results that the Company expects to generate in future periods. On January 15, 2019, final regulations under Section 965 related to the transition tax were released. After analyzing these regulations during the three months ended March 2019 , the Company recorded an additional net charge of $0.2 million , primarily comprised of $3.9 million of tax expense related to transition tax and a net tax benefit of $3.7 million related to a reduction in unrecognized tax benefits as a result of the final regulations. The effective income tax rate for the three months ended March 2019 was 44.7% compared to 15.0% in the 2018 period. The three months ended March 2019 included a net discrete tax expense of $1.2 million , primarily comprised of $2.8 million of net tax expense related to unrecognized tax benefits and interest, $2.2 million of tax benefit related to stock compensation, and $0.2 million of tax expense related to adjustments of previously recorded amounts based on final regulations for the transition tax. The $1.2 million net discrete tax expense in the three months ended March 2019 increased the effective income tax rate by 4.4% . The effective tax rate for the three months ended March 2018 included a net discrete tax benefit of $6.3 million , which included $5.5 million of net tax benefits related to the realization of previously unrecognized tax benefits and interest and $0.8 million of tax benefit related to stock compensation. The $6.3 million net discrete tax benefit in the 2018 period decreased the effective income tax rate by 6.7% . Without discrete items, the effective income tax rate for the three months ended March 2019 increased by 18.6% compared with the 2018 period primarily due to losses incurred in the current period for certain Central and South American jurisdictions for which no related tax benefit was recognized. The Company is part of VF's consolidated U.S. federal income tax return, as well as separate and combined VF income tax returns in numerous state and international jurisdictions. In the U.S., the Internal Revenue Service examinations for VF's tax years through 2014 have been effectively settled. In addition, VF is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years, and has concluded that the Company's provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on the Company's combined financial statements. Management believes that some of these audits and negotiations will conclude during the next 12 months. During the three months ended March 2019 , the amount of net unrecognized tax benefits and associated interest decreased by $2.6 million to $48.7 million . Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $6.3 million related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $6.1 million would reduce income tax expense.

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION	3 Months Ended
	Mar. 30, 2019
Segment Reporting [Abstract]
REPORTABLE SEGMENT INFORMATION	REPORTABLE SEGMENT INFORMATION The chief operating decision maker allocates resources and assesses performance based on a global brand view which determines the Company's operating segments. These operating segments are the basis for the Company's reportable segments, as described below: • Wrangler — Wrangler ® branded denim, apparel and accessories. • Lee — Lee ® branded denim, apparel and accessories. In addition, we report an "Other" category for purposes of reconciliation of revenues and profit, but the Other category is not considered a reportable segment. Other includes sales (i) of VF-branded products (other than Wrangler ® and Lee ® branded products, which are reported in the respective segments above) and third-party branded merchandise at VF Outlet™ stores, (ii) of Rock and Republic ® branded apparel, (iii) to VF for products manufactured in our plants and use of our transportation fleet and, (iv) from fulfillment of a transition services agreement associated with VF's sale of its Nautica ® brand business in mid-2018. Accounting policies utilized for internal management reporting at the individual segments are consistent with those included in Note 1 of the combined financial statements of our 2018 Form 10, except as noted below. The Company's combined statements of income include costs for certain centralized functions and programs provided and administered by VF that are charged directly to VF's businesses, including the Company. These centralized functions and programs include, but are not limited to, information technology, human resources, accounting shared services, supply chain, insurance, and the service cost component of net periodic pension benefit. These historical allocations have been included in the measurement of segment profit below. In addition, for purposes of preparing these combined financial statements on a "carve-out" basis, we have allocated a portion of VF's total corporate expenses to the Company. These expense allocations include the cost of corporate functions and resources provided by or administered by VF including, but not limited to, executive management, finance, accounting, legal, human resources, and related benefit costs associated with such functions, such as stock-based compensation and the non-service components of net periodic pension benefit. Allocations also include the cost of operating VF's corporate headquarters located in Greensboro, North Carolina. The Company has also been allocated the non-service components of net periodic pension benefit. These additional allocations are reported as corporate and other expenses in the table below. Corporate and other expenses, net related party interest income, and net other interest income are not controlled by segment management and therefore are excluded from the measurement of segment profit. Financial information for the Company's reportable segments is as follows: Three Months Ended (In thousands) March 2019 March 2018 Segment revenues: Wrangler $ 369,935 $ 364,983 Lee 241,531 261,961 Other 36,878 42,719 Total segment revenues $ 648,344 $ 669,663 Segment profit: Wrangler $ 23,665 $ 62,946 Lee 17,633 35,989 Other (3,085 ) (1,749 ) Total segment profit $ 38,213 $ 97,186 Corporate and other expenses (13,989 ) (5,975 ) Related party interest income, net 2,339 1,651 Other interest income, net 1,325 917 Income before income taxes $ 27,888 $ 93,779

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability. The following table summarizes financial assets and financial liabilities that are measured and recorded in the combined financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (In thousands) Level 1 Level 2 Level 3 March 2019 Financial assets: Cash equivalents: Money market funds $ 7,686 $ 7,686 $ — $ — Time deposits 3,691 3,691 — — Investment securities 50,782 50,782 — — Financial liabilities: Deferred compensation 50,782 — 50,782 — Total Fair Value Fair Value Measurement Using (In thousands) Level 1 Level 2 Level 3 December 2018 Financial assets: Cash equivalents: Money market funds $ 21,687 $ 21,687 $ — $ — Time deposits 2,518 2,518 — — Investment securities 46,666 46,666 — — Financial liabilities: Deferred compensation 46,666 — 46,666 — The Company's cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. Investment securities are held in VF's deferred compensation plans as an economic hedge of the related deferred compensation liabilities. These investments are mutual funds (Level 1) that are valued based on quoted prices in active markets. Liabilities related to VF's deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments. All other financial assets and financial liabilities are recorded in the combined financial statements at cost. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, due from related parties, related party notes receivable, short-term borrowings, accounts payable, due to related parties, related party notes payable and accrued liabilities. At March 2019 and December 2018 , carrying value approximated fair value for the aforementioned financial assets and liabilities due to the short-term nature of these instruments. The Company did not transfer any assets or liabilities among the levels of the fair value hierarchy during the three months ended March 2019 or the fiscal year ended December 2018.

RESTRUCTURING

RESTRUCTURING	3 Months Ended
	Mar. 30, 2019
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING The Company typically incurs restructuring charges related to cost optimization of business activities. Of the $22.8 million of restructuring charges recognized during the three months ended March 2019 , $12.0 million were reflected in "selling, general and administrative expenses" and $10.8 million were reflected in "cost of goods sold". Additionally, all of the $1.9 million of restructuring charges recognized during the three months ended March 2018 was reflected in "selling, general and administrative expenses." The Company did not incur significant incremental costs related to the previously approved initiatives during the three months ended March 2019 . Of the $36.6 million total restructuring accrual reported in the combined balance sheet at March 2019 , $35.8 million is expected to be paid out within the next 12 months and is classified within "accrued liabilities". The remaining $0.8 million is expected be paid out beyond the next 12 months and thus is classified within "other liabilities". The components of the restructuring charges are as follows: Three Months Ended (in thousands) March 2019 March 2018 Severance and employee-related benefits $ 13,157 $ 1,936 Asset impairments 1,596 — Inventory write-downs 4,403 — Other 3,660 — Total restructuring charges $ 22,816 $ 1,936 Restructuring costs by business segment are as follows: Three Months Ended (In thousands) March 2019 March 2018 Wrangler $ 16,422 $ 826 Lee 6,224 677 Other 170 433 Total $ 22,816 $ 1,936 The activity in the restructuring accrual for the three -month periods ended March 2019 and 2018 is as follows: (In thousands) Severance Other Total Accrual at December 2018 $ 23,249 $ — $ 23,249 Charges 13,157 3,660 16,817 Cash payments (3,046 ) — (3,046 ) Adjustments to accruals (230 ) — (230 ) Currency translation (17 ) (197 ) (214 ) Accrual at March 2019 $ 33,113 $ 3,463 $ 36,576 (in thousands) Severance Other Total Accrual at December 2017 $ 11,007 $ — $ 11,007 Charges 1,936 — 1,936 Cash payments (837 ) — (837 ) Adjustments to accruals (197 ) — (197 ) Currency translation 4 — 4 Accrual at March 2018 $ 11,913 $ — $ 11,913

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The combined financial statements have been prepared on a standalone basis and are derived from the consolidated financial statements and accounting records of VF. The following discussion summarizes activity between the Company and VF (and its affiliates that were not part of the spin-off transaction) referred to hereafter as VF. Allocation of General Corporate Expenses The combined statements of income include expenses for certain centralized functions and other programs provided and administered by VF that were charged directly to the Company. In addition, for purposes of preparing these combined financial statements on a carve-out basis, we have allocated a portion of VF's total corporate expenses to the Company. See Note 1 in the 2018 Form 10 for a discussion of the methodology used to allocate corporate-related costs for purposes of preparing these financial statements on a carve-out basis. Related Party Sales and Purchases During the three months ended March 2019 and 2018 , the Compa ny's sales to VF totaled $10.6 million and $13.5 million , respectively, which are included in "net revenues" in the combined statements of income. The Company's cost of goods sold includes items purchased from VF totaling $0.3 million and $0.8 million during th e three months ended March 2019 and 2018 , respectively. At March 2019 , December 2018 and March 2018 , the aggregate amount of inventories purchased from VF that remained on the Company's combined balance sheets were $1.2 million , $0.8 million and $1.9 million , respectively. Related Party Notes At March 2019 , December 2018 and March 2018 , the Company had related party notes receivable of $517.9 million , $517.9 million and $546.7 million , respectively, with VF as the counterparty. These notes are short-term and are recorded in the combined balance sheets in "related party notes receivable". The weighted-average interest rate for these notes was approximately 3.7% , 3.4% and 2.4% at March 2019 , December 2018 and March 2018 , respectively. At March 2019 , December 2018 and March 2018 , the Co mpany had related party notes payable of $241.9 million , $269.1 million and $269.1 million , respectively, with VF as the counterparty. The se notes are short-term and are recorded within the combined balance sheets in "related party notes payable". The weighted-average interest rate for these notes was approximately 3.7% , 3.4% and 2.3% at March 2019 , December 2018 and March 2018 , respectively. The Company recorded net interest income related to these notes of $2.3 million and $1.7 million during the three months ended March 2019 and 2018 , respectively, which is reflected in "related party interest income, net" within the combined statements of income. Due To and From Related Parties Balances in due to and from related parties are generated by (i) the sale of trade accounts receivable to VF, as discussed in Note 5 to the combined financial statements , (ii) hedging agreements with VF, and (iii) sourcing payable to VF. During the periods presented, the Company did not enter into derivative contracts with external counterparties. However, VF entered into derivative contracts with external counterparties to hedge certain foreign currency transactions with exposure to the euro, Mexican peso, Polish zloty, Canadian dollar, and other currencies. The Company entered into offsetting internal contracts with VF with maturities up to 20 months, and cash settled with VF on any asset or liability that arose under these contracts. Due from related parties, current consists of the following: (in thousands) March 2019 December 2018 March 2018 Sale of trade accounts receivable $ 286,816 $ 544,858 $ 266,112 Hedging agreements with VF 4,266 2,832 8,256 Other 45 — — $ 291,127 $ 547,690 $ 274,368 As discussed in Note 5 to the combined financial statements, the Company sold certain of its trade accounts receivable to VF, who then sold them to a financial institution and periodically remitted cash back to the Company. Due from related parties, noncurrent consists of the following: (in thousands) March 2019 December 2018 March 2018 Hedging agreements with VF $ 370 $ 611 $ 1,576 Due to related parties, current consists of the following: (in thousands) March 2019 December 2018 March 2018 Sourcing payable $ 3,865 $ 16,140 $ 60,424 Net Transfers To and From VF Net transfers to and from VF are included in "parent company investment" within the combined statements of equity. The components of the transfers to and from VF are as follows: Three Months Ended (in thousands) March 2019 March 2018 General financing activities $ (198,411 ) $ 70,930 Corporate allocations 31,153 33,849 Stock-based compensation expense 7,685 3,740 Pension benefit (629 ) (729 ) Purchases from parent 700 833 Sales to parent (10,611 ) (13,479 ) Other income tax 8,248 18,301 Transition tax related to the Tax Act 3,937 — Total net transfer (to) from parent $ (157,928 ) $ 113,445

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Earnings per share was calculated based on the 56,647,561 shares of the Company's common stock distributed to VF shareholders on May 22, 2019. The same number of shares is being utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. Three Months Ended March (In thousands, except per share amounts) 2019 2018 Net income $ 15,413 $ 79,696 Per share data Basic earnings per share $ 0.27 $ 1.41 Diluted earnings per share $ 0.27 $ 1.41 Weighted average number of shares outstanding - basic and diluted 56,647,561 56,647,561

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Credit Agreemen t On May 17, 2019, the Company and its wholly-owned subsidiary Lee Wrangler International Sagl entered into a credit agreement (the “Credit Agreement”) with respect to $1.55 billion in senior secured credit facilities consisting of a senior secured five-year $750 million term loan A facility (the “Term Loan A Facility”), a senior secured seven-year $300 million term loan B facility (the “Term Loan B Facility”) and a five-year $500 million senior secured revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Credit Facilities”) with the lenders and agents party thereto. The Credit Agreement is subject to certain affirmative and negative covenants customary for financings of this type. On May 17, 2019, the Company incurred $1.05 billion of indebtedness under the Credit Facilities, the proceeds of which were used primarily to finance a cash transfer to a member of VF’s group in connection with the Separation. Following the Separation, we expect to utilize the borrowing capacity under the Revolving Credit Facility from time to time to provide working capital and funds for general corporate purposes. Tax Matter On May 19, 2019, Switzerland voted to approve the Federal Act on Tax Reform and AHV Financing (“Swiss Tax Act”). The Company is currently evaluating the potential impact of the Swiss Tax Act on the Company's combined financial statements. The associated tax effects will be reflected in the Company's quarterly results in the period in which the Swiss Tax Act is enacted. Distribution from VF On May 22, 2019, the Separation was completed through VF's distribution (the "Distribution") of 100% of the shares of Kontoor Brands, Inc. to holders of VF common stock as of the close of business on the record date of May 10, 2019. As a result of the Distribution, VF stockholders of record received one share of the Company's common stock for every seven shares of VF common stock. Following the Distribution, Kontoor Brands, Inc. became an independent, publicly-traded company with no retained ownership by VF. Sale of Accounts Receivable On April 1, 2019, the Company entered into an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under this agreement, which replaces the existing agreement between VF and a financial institution, up to $377.5 million of the Company's trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 30, 2019
Accounting Policies [Abstract]
Fair Value Measurement, Policy	Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 30, 2019
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information	The following table presents the lease-related assets and liabilities recorded in the combined balance sheet: (in thousands) March 2019 Assets Operating lease assets, noncurrent $ 77,305 Total lease assets $ 77,305 Liabilities Operating lease liabilities, current $ 29,156 Operating lease liabilities, noncurrent 51,533 Total lease liabilities $ 80,689 Weighted-average remaining lease term (in years) Operating leases 3.69 Weighted-average discount rate Operating leases 3.27 %
Schedule of Lease Costs	The following table presents supplemental cash flow information related to leases: (in thousands) Three Months Ended March 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows impact - operating leases $ 10,641 Right-of-use assets obtained in exchange for new operating leases $ 7,837 The following table presents certain information related to the lease costs for operating leases: (in thousands) Three Months Ended March 2019 Operating lease cost $ 7,613 Short-term lease cost (excluding leases of one month or less) 491 Variable lease cost 2,816 Total lease costs $ 10,920
Schedule of Maturities of Operating Leases	The following table reconciles maturities of operating lease liabilities as of March 30, 2019 to the lease liabilities reflected in the combined balance sheet: (in thousands) Lease Obligations 2019 (excluding the three months ended March 2019) $ 25,618 2020 26,388 2021 17,031 2022 7,922 2023 4,805 Thereafter 5,679 Total future minimum lease payments 87,443 Less: amounts related to imputed interest (6,754 ) Present value of future minimum lease payments 80,689 Less: operating lease liabilities, current (29,156 ) Operating lease liabilities, noncurrent $ 51,533
Schedule of Future Minimum Rental Payments Under Previous Accounting Standard	As of March 30, 2019, the Company has entered into approximately $3.0 million of operating lease arrangements, on an undiscounted basis, that have not yet commenced. The Company continuously monitors and may negotiate contract amendments that include extensions or modifications to existing leases. The following table presents the future minimum lease payments during the noncancelable lease terms as presented under ASC 840: (in thousands) December 2018 2019 $ 33,562 2020 29,246 2021 17,810 2022 7,932 2023 4,353 Thereafter 4,582 Total future minimum lease payments $ 97,485

REVENUES (Tables)

REVENUES (Tables)	3 Months Ended
	Mar. 30, 2019
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	The following table provides information about accounts receivable, contract assets and contract liabilities recorded in the combined balance sheets: (In thousands) March 2019 March 2018 Accounts receivable, net $ 299,328 $ 318,480 Contract assets (a) 1,930 680 Contract liabilities (b) 1,995 2,292 (a) Included in "other current assets" in the combined balance sheets. (b) Included in "accrued liabilities" in the combined balance sheets.
Disaggregation of Revenue	Three Months Ended March 2019 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 276,825 $ 100,859 $ 6,725 $ 384,409 Non-U.S. Wholesale 68,655 100,896 — 169,551 Branded Direct-To-Consumer 24,455 39,776 — 64,231 Other — — 30,153 30,153 Total $ 369,935 $ 241,531 $ 36,878 $ 648,344 Geographic revenues U.S. $ 293,869 $ 119,120 $ 36,878 $ 449,867 International 76,066 122,411 — 198,477 Total $ 369,935 $ 241,531 $ 36,878 $ 648,344 Three Months Ended March 2018 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 263,786 $ 110,259 $ 7,564 $ 381,609 Non-U.S. Wholesale 76,006 107,861 — 183,867 Branded Direct-To-Consumer 25,191 43,841 — 69,032 Other — — 35,155 35,155 Total $ 364,983 $ 261,961 $ 42,719 $ 669,663 Geographic revenues U.S. $ 279,640 $ 128,964 $ 42,719 $ 451,323 International 85,343 132,997 — 218,340 Total $ 364,983 $ 261,961 $ 42,719 $ 669,663

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 30, 2019
Inventory Disclosure [Abstract]
Inventories	(In thousands) March 2019 December 2018 March 2018 Finished products $ 454,763 $ 396,345 $ 439,020 Work-in-process 37,872 37,466 20,810 Raw materials 26,371 40,001 40,019 Total inventories $ 519,006 $ 473,812 $ 499,849

PENSION PLANS (Tables)

PENSION PLANS (Tables)	3 Months Ended
	Mar. 30, 2019
Retirement Benefits [Abstract]
Components of Pension Cost	The Company recognized the following net pension benefits for the Shared Plans: Three Months Ended (In thousands) March 2019 March 2018 Service cost $ 336 $ 1,366 Non-service components (965 ) (2,095 ) Net periodic pension benefit $ (629 ) $ (729 )

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 30, 2019
Equity [Abstract]
Deferred Components of OCI Reported, Net of Related Income Taxes, in Accumulated OCI in Stockholders' Equity and Changes in Accumulated OCI	The changes in accumulated OCL, all of which relate to foreign currency translation, are as follows: (In thousands) Accumulated OCL Balance, December 2018 $ (145,182 ) Gains arising during period 758 Income tax effect — Balance, March 2019 $ (144,424 ) (In thousands) Accumulated OCL Balance, December 2017 $ (122,482 ) Gains arising during period 9,701 Income tax effect — Balance, March 2018 $ (112,781 )

STOCK-BASED COMPENSATION - (Tab

STOCK-BASED COMPENSATION - (Tables)	3 Months Ended
	Mar. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Valuation Assumptions	The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates the following assumptions for inputs: Three Months Ended March 2019 Expected volatility 25% to 27% Weighted average expected volatility 26% Expected term (in years) 6.1 to 7.5 Weighted average dividend yield 2.5% Risk-free interest rate 2.5% to 2.8% Weighted average fair value at date of grant $18.13

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 30, 2019
Segment Reporting [Abstract]
Financial Information for Reportable Segments	Financial information for the Company's reportable segments is as follows: Three Months Ended (In thousands) March 2019 March 2018 Segment revenues: Wrangler $ 369,935 $ 364,983 Lee 241,531 261,961 Other 36,878 42,719 Total segment revenues $ 648,344 $ 669,663 Segment profit: Wrangler $ 23,665 $ 62,946 Lee 17,633 35,989 Other (3,085 ) (1,749 ) Total segment profit $ 38,213 $ 97,186 Corporate and other expenses (13,989 ) (5,975 ) Related party interest income, net 2,339 1,651 Other interest income, net 1,325 917 Income before income taxes $ 27,888 $ 93,779

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 30, 2019
Fair Value Disclosures [Abstract]
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis	The following table summarizes financial assets and financial liabilities that are measured and recorded in the combined financial statements at fair value on a recurring basis: Total Fair Value Fair Value Measurement Using (In thousands) Level 1 Level 2 Level 3 March 2019 Financial assets: Cash equivalents: Money market funds $ 7,686 $ 7,686 $ — $ — Time deposits 3,691 3,691 — — Investment securities 50,782 50,782 — — Financial liabilities: Deferred compensation 50,782 — 50,782 — Total Fair Value Fair Value Measurement Using (In thousands) Level 1 Level 2 Level 3 December 2018 Financial assets: Cash equivalents: Money market funds $ 21,687 $ 21,687 $ — $ — Time deposits 2,518 2,518 — — Investment securities 46,666 46,666 — — Financial liabilities: Deferred compensation 46,666 — 46,666 —

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	3 Months Ended
	Mar. 30, 2019
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The components of the restructuring charges are as follows: Three Months Ended (in thousands) March 2019 March 2018 Severance and employee-related benefits $ 13,157 $ 1,936 Asset impairments 1,596 — Inventory write-downs 4,403 — Other 3,660 — Total restructuring charges $ 22,816 $ 1,936 Restructuring costs by business segment are as follows: Three Months Ended (In thousands) March 2019 March 2018 Wrangler $ 16,422 $ 826 Lee 6,224 677 Other 170 433 Total $ 22,816 $ 1,936
Activity in Restructuring	The activity in the restructuring accrual for the three -month periods ended March 2019 and 2018 is as follows: (In thousands) Severance Other Total Accrual at December 2018 $ 23,249 $ — $ 23,249 Charges 13,157 3,660 16,817 Cash payments (3,046 ) — (3,046 ) Adjustments to accruals (230 ) — (230 ) Currency translation (17 ) (197 ) (214 ) Accrual at March 2019 $ 33,113 $ 3,463 $ 36,576 (in thousands) Severance Other Total Accrual at December 2017 $ 11,007 $ — $ 11,007 Charges 1,936 — 1,936 Cash payments (837 ) — (837 ) Adjustments to accruals (197 ) — (197 ) Currency translation 4 — 4 Accrual at March 2018 $ 11,913 $ — $ 11,913

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 30, 2019
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Due from related parties, noncurrent consists of the following: (in thousands) March 2019 December 2018 March 2018 Hedging agreements with VF $ 370 $ 611 $ 1,576 Due to related parties, current consists of the following: (in thousands) March 2019 December 2018 March 2018 Sourcing payable $ 3,865 $ 16,140 $ 60,424 are as follows: Three Months Ended (in thousands) March 2019 March 2018 General financing activities $ (198,411 ) $ 70,930 Corporate allocations 31,153 33,849 Stock-based compensation expense 7,685 3,740 Pension benefit (629 ) (729 ) Purchases from parent 700 833 Sales to parent (10,611 ) (13,479 ) Other income tax 8,248 18,301 Transition tax related to the Tax Act 3,937 — Total net transfer (to) from parent $ (157,928 ) $ 113,445 Due from related parties, current consists of the following: (in thousands) March 2019 December 2018 March 2018 Sale of trade accounts receivable $ 286,816 $ 544,858 $ 266,112 Hedging agreements with VF 4,266 2,832 8,256 Other 45 — — $ 291,127 $ 547,690 $ 274,368

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The same number of shares is being utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. Three Months Ended March (In thousands, except per share amounts) 2019 2018 Net income $ 15,413 $ 79,696 Per share data Basic earnings per share $ 0.27 $ 1.41 Diluted earnings per share $ 0.27 $ 1.41 Weighted average number of shares outstanding - basic and diluted 56,647,561 56,647,561

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	May 22, 2019	May 17, 2019USD ($)	Mar. 30, 2019USD ($)	Mar. 31, 2018USD ($)
Subsequent Event [Line Items]
Transfer to related party			$ 157,928	$ (113,445)
Subsequent Event
Subsequent Event [Line Items]
Spinoff transaction, conversion ratio	0.1428571429
Transfer to related party		$ 1,000,000

RECENTLY ADOPTED AND ISSUED A_2

RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS - (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting standard	$ 2,713	$ (3,047)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting standard	$ 2,700

LEASES - Additional Information

LEASES - Additional Information (Details) - USD ($) $ in Millions	Mar. 30, 2019	Mar. 31, 2018
Lessee, Lease, Description [Line Items]
Short term lease, excluded from recognition	12 months
Rent expense		$ 10.6
Lease not yet commenced	$ 3
Real Estate | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	3 years
Real Estate | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	15 years
Equipment | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	3 years
Equipment | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	7 years

LEASES - Supplemental Balance S

LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Assets
Operating lease assets, noncurrent	$ 77,305	$ 0	$ 0
Liabilities
Operating lease liabilities, current	29,156	0	0
Operating lease liabilities, noncurrent	51,533	$ 0	$ 0
Total lease liabilities	$ 80,689
Weighted-average remaining lease term (in years)
Operating leases	3 years 8 months 8 days
Weighted-average discount rate
Operating leases	3.27%

LEASES - Lease Costs (Details)

LEASES - Lease Costs (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 7,613
Short-term lease cost (excluding leases of one month or less)	491
Variable lease cost	2,816
Total lease costs	10,920
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows impact - operating leases	10,641
Right-of-use assets obtained in exchange for new operating leases	$ 7,837

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Leases (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Leases [Abstract]
2019 (excluding the three months ended March 2019)	$ 25,618
2020	26,388
2021	17,031
2022	7,922
2023	4,805
Thereafter	5,679
Total future minimum lease payments	87,443
Less: amounts related to imputed interest	(6,754)
Total lease liabilities	80,689
Less: operating lease liabilities, current	(29,156)	$ 0	$ 0
Operating lease liabilities, noncurrent	$ 51,533	$ 0	$ 0

LEASES - Future Minimum Rental

LEASES - Future Minimum Rental Payments Under Previous Accounting Standard (Details) $ in Thousands	Dec. 29, 2018USD ($)
Leases [Abstract]
2019	$ 33,562
2020	29,246
2021	17,810
2022	7,932
2023	4,353
Thereafter	4,582
Total future minimum lease payments	$ 97,485

REVENUES - Remaining Performanc

REVENUES - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 $ in Millions	Mar. 30, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 38.2
Expected timing of satisfaction	4 years

REVENUES - Contract Assets and

REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 299,328	$ 252,966	$ 318,480
Contract assets	1,930		680
Contract liabilities	$ 1,995		$ 2,292

REVENUES - Additional Informati

REVENUES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, revenue recognized	$ 1.3	$ 1.2

REVENUES - Disaggregation of Re

REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 648,344	$ 669,663
U.S.
Disaggregation of Revenue [Line Items]
Revenue	449,867	451,323
International
Disaggregation of Revenue [Line Items]
Revenue	198,477	218,340
Wholesale | U.S.
Disaggregation of Revenue [Line Items]
Revenue	384,409	381,609
Wholesale | International
Disaggregation of Revenue [Line Items]
Revenue	169,551	183,867
Branded Direct-To-Consumer
Disaggregation of Revenue [Line Items]
Revenue	64,231	69,032
Other
Disaggregation of Revenue [Line Items]
Revenue	30,153	35,155
Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	648,344	669,663
Operating Segments | Wrangler
Disaggregation of Revenue [Line Items]
Revenue	369,935	364,983
Operating Segments | Wrangler | U.S.
Disaggregation of Revenue [Line Items]
Revenue	293,869	279,640
Operating Segments | Wrangler | International
Disaggregation of Revenue [Line Items]
Revenue	76,066	85,343
Operating Segments | Wrangler | Wholesale | U.S.
Disaggregation of Revenue [Line Items]
Revenue	276,825	263,786
Operating Segments | Wrangler | Wholesale | International
Disaggregation of Revenue [Line Items]
Revenue	68,655	76,006
Operating Segments | Wrangler | Branded Direct-To-Consumer
Disaggregation of Revenue [Line Items]
Revenue	24,455	25,191
Operating Segments | Wrangler | Other
Disaggregation of Revenue [Line Items]
Revenue	0	0
Operating Segments | Lee
Disaggregation of Revenue [Line Items]
Revenue	241,531	261,961
Operating Segments | Lee | U.S.
Disaggregation of Revenue [Line Items]
Revenue	119,120	128,964
Operating Segments | Lee | International
Disaggregation of Revenue [Line Items]
Revenue	122,411	132,997
Operating Segments | Lee | Wholesale | U.S.
Disaggregation of Revenue [Line Items]
Revenue	100,859	110,259
Operating Segments | Lee | Wholesale | International
Disaggregation of Revenue [Line Items]
Revenue	100,896	107,861
Operating Segments | Lee | Branded Direct-To-Consumer
Disaggregation of Revenue [Line Items]
Revenue	39,776	43,841
Operating Segments | Lee | Other
Disaggregation of Revenue [Line Items]
Revenue	0	0
Operating Segments | Other
Disaggregation of Revenue [Line Items]
Revenue	36,878	42,719
Other | Other
Disaggregation of Revenue [Line Items]
Revenue	36,878	42,719
Other | Other | U.S.
Disaggregation of Revenue [Line Items]
Revenue	36,878	42,719
Other | Other | International
Disaggregation of Revenue [Line Items]
Revenue	0	0
Other | Other | Wholesale | U.S.
Disaggregation of Revenue [Line Items]
Revenue	6,725	7,564
Other | Other | Wholesale | International
Disaggregation of Revenue [Line Items]
Revenue	0	0
Other | Other | Branded Direct-To-Consumer
Disaggregation of Revenue [Line Items]
Revenue	0	0
Other | Other | Other
Disaggregation of Revenue [Line Items]
Revenue	$ 30,153	$ 35,155

SALE OF ACCOUNTS RECEIVABLE (De

SALE OF ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Receivables [Abstract]
Maximum amount of accounts receivable sold at any point in time (up to)	$ 377.5	$ 367.5	$ 367.5
Sale of accounts receivable	245	243.1
Accounts receivable removed related to sale of accounts receivable	286.8	266.1	$ 544.9
Funding fee	$ 1.4	$ 1

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Inventory Disclosure [Abstract]
Finished products	$ 454,763	$ 396,345	$ 439,020
Work-in-process	37,872	37,466	20,810
Raw materials	26,371	40,001	40,019
Total inventories	$ 519,006	$ 473,812	$ 499,849

PENSION PLANS - Components of P

PENSION PLANS - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Retirement Benefits [Abstract]
Service cost	$ 336	$ 1,366
Non-service components	(965)	(2,095)
Net periodic pension benefit	$ (629)	$ (729)

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in Accumulated OCI, Net of Related Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning	$ 1,723,452	$ 1,357,893
Balance, ending	1,578,982	1,563,782
Accumulated OCL
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning	(145,182)	(122,482)
Gains arising during period	758	9,701
Income tax effect	0	0
Balance, ending	$ (144,424)	$ (112,781)

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details)	3 Months Ended
	Mar. 30, 2019$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted in period (in shares) | shares	4,036
Exercise price of options granted (in USD per share) | $ / shares	$ 82.38
Share based compensation vesting period	3 years

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details)	3 Months Ended
	Mar. 30, 2019$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	25.00%
Expected volatility, maximum	27.00%
Weighted average expected volatility	26.00%
Weighted average dividend yield	2.50%
Risk-free interest rate, minimum	2.50%
Risk-free interest rate, maximum	2.80%
Weighted average fair value at date of grant	$ 18.13
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	7 years 6 months

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Adjustment income tax expense (benefit)	$ 0.2
Transition tax for accumulated foreign earnings	3.9
Change in tax rate, deferred tax liability, income tax benefit	$ 3.7
Effective income tax rate	44.70%	15.00%
Net discrete tax benefits	$ 1.2	$ 6.3
Tax benefit related stock compensation	2.2	0.8
Realization of unrecognized net tax benefit (expense)	(2.8)	$ 5.5
Benefit related to proposed regulations	$ 0.2
Tax increase (reduction) due to discrete items	4.40%	(6.70%)
Change in effective income tax rate without discrete items	18.60%
Decrease in unrecognized tax benefits and associated interest	$ 2.6
Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate	48.7
Possible decrease in unrecognized income tax benefits	6.3
Reduction in income tax expenses	$ 6.1

REPORTABLE SEGMENT INFORMATIO_2

REPORTABLE SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Total segment revenues	$ 648,344	$ 669,663
Operating income	25,195	92,408
Related party interest income, net	2,339	1,651
Other interest income, net	1,325	917
Income before income taxes	27,888	93,779
Operating Segments
Segment Reporting Information [Line Items]
Total segment revenues	648,344	669,663
Operating income	38,213	97,186
Operating Segments | Wrangler
Segment Reporting Information [Line Items]
Total segment revenues	369,935	364,983
Operating income	23,665	62,946
Operating Segments | Lee
Segment Reporting Information [Line Items]
Total segment revenues	241,531	261,961
Operating income	17,633	35,989
Operating Segments | Other
Segment Reporting Information [Line Items]
Total segment revenues	36,878	42,719
Operating income	(3,085)	(1,749)
Corporate and other expenses
Segment Reporting Information [Line Items]
Corporate and other expenses	(13,989)	(5,975)
Related party interest income, net	2,339	1,651
Other
Segment Reporting Information [Line Items]
Other interest income, net	1,325	917
Other | Other
Segment Reporting Information [Line Items]
Total segment revenues	$ 36,878	$ 42,719

FAIR VALUE MEASUREMENTS - Measu

FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Financial assets:
Money market funds	$ 7,686	$ 21,687
Investment securities	50,782	46,666
Financial liabilities:
Deferred compensation	50,782	46,666
Level 1
Financial assets:
Money market funds	7,686	21,687
Investment securities	50,782	46,666
Financial liabilities:
Deferred compensation	0	0
Level 2
Financial assets:
Money market funds	0	0
Investment securities	0	0
Financial liabilities:
Deferred compensation	50,782	46,666
Level 3
Financial assets:
Money market funds	0	0
Investment securities	0	0
Financial liabilities:
Deferred compensation	0	0
Time deposits
Financial assets:
Time deposits	3,691	2,518
Time deposits | Level 1
Financial assets:
Time deposits	3,691	2,518
Time deposits | Level 2
Financial assets:
Time deposits	0	0
Time deposits | Level 3
Financial assets:
Time deposits	$ 0	$ 0

RESTRUCTURING - Additional Info

RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018	Dec. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 22,816	$ 1,936
Restructuring reserve	36,576	$ 11,913	$ 23,249	$ 11,007
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	12,000
Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10,800
Accrued Current Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	35,800
Other Noncurrent Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 800

RESTRUCTURING - Restructuring c

RESTRUCTURING - Restructuring costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Severance and employee-related benefits	$ 13,157	$ 1,936
Asset impairments	1,596	0
Inventory write-downs	4,403	0
Contract termination and other	3,660	0
Total restructuring charges	$ 22,816	$ 1,936

RESTRUCTURING - Restructuring_2

RESTRUCTURING - Restructuring costs by business segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 22,816	$ 1,936
Operating Segments | Wrangler
Restructuring Cost and Reserve [Line Items]
Restructuring charges	16,422	826
Operating Segments | Lee
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,224	677
Operating Segments | Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 170	$ 433

RESTRUCTURING - Activity in res

RESTRUCTURING - Activity in restructuring accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Restructuring Reserve [Roll Forward]
Amounts recorded in accrued liabilities, beginning	$ 23,249	$ 11,007
Charges	16,817	1,936
Cash payments	(3,046)	(837)
Adjustments to accruals	(230)	(197)
Currency translation	(214)	4
Amounts recorded in accrued liabilities. ending	36,576	11,913
Severance
Restructuring Reserve [Roll Forward]
Amounts recorded in accrued liabilities, beginning	23,249	11,007
Charges	13,157	1,936
Cash payments	(3,046)	(837)
Adjustments to accruals	(230)	(197)
Currency translation	(17)	4
Amounts recorded in accrued liabilities. ending	33,113	11,913
Other
Restructuring Reserve [Roll Forward]
Amounts recorded in accrued liabilities, beginning	0	0
Charges	3,660	0
Cash payments	0	0
Adjustments to accruals	0	0
Currency translation	(197)	0
Amounts recorded in accrued liabilities. ending	$ 3,463	$ 0

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Related Party Transactions [Abstract]
Sales to related party	$ 10,600	$ 13,500
Related party transaction, cost of goods sold	300	800
Related party transaction, remaining inventory purchased from related party	1,200	1,900	$ 800
Related party notes receivable	$ 517,940	$ 546,740	$ 517,940
Related party transaction, weighted average note receivable rate	3.70%	2.40%	3.40%
Related party notes payable	$ 241,867	$ 269,112	$ 269,112
Related party transaction, weighted average note payable rate	3.70%	2.30%	3.40%
Related party interest income, net	$ 2,339	$ 1,651

RELATED PARTY TRANSACTIONS - Du

RELATED PARTY TRANSACTIONS - Due from related parties, current (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Related Party Transaction [Line Items]
Due from related parties, current	$ 291,127	$ 547,690	$ 274,368
Sale of trade accounts receivable
Related Party Transaction [Line Items]
Due from related parties, current	286,816	544,858	266,112
Hedging agreements with VF
Related Party Transaction [Line Items]
Due from related parties, current	4,266	2,832	8,256
Other
Related Party Transaction [Line Items]
Due from related parties, current	$ 45	$ 0	$ 0

RELATED PARTY TRANSACTIONS - _2

RELATED PARTY TRANSACTIONS - Due from related parties, noncurrent (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Related Party Transaction [Line Items]
Due from related parties, noncurrent	$ 370	$ 611	$ 1,576
Hedging agreements with VF
Related Party Transaction [Line Items]
Due from related parties, noncurrent	$ 370	$ 611	$ 1,576

RELATED PARTY TRANSACTIONS - _3

RELATED PARTY TRANSACTIONS - Due to related parties, current (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
Related Party Transaction [Line Items]
Due to related parties, current	$ 3,865	$ 16,140	$ 60,424
Sourcing payable
Related Party Transaction [Line Items]
Due to related parties, current	$ 3,865	$ 16,140	$ 60,424

RELATED PARTY TRANSACTIONS - Ne

RELATED PARTY TRANSACTIONS - Net Transfers To and From VF (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Related Party Transaction [Line Items]
Transfer (To) From Related Party	$ (157,928)	$ 113,445
General financing activities
Related Party Transaction [Line Items]
Transfer (To) From Related Party	(198,411)	70,930
Corporate allocations
Related Party Transaction [Line Items]
Transfer (To) From Related Party	31,153	33,849
Stock-based compensation expense
Related Party Transaction [Line Items]
Transfer (To) From Related Party	7,685	3,740
Pension benefit
Related Party Transaction [Line Items]
Transfer (To) From Related Party	(629)	(729)
Purchases from parent
Related Party Transaction [Line Items]
Transfer (To) From Related Party	700	833
Sales to parent
Related Party Transaction [Line Items]
Transfer (To) From Related Party	(10,611)	(13,479)
Other income tax
Related Party Transaction [Line Items]
Transfer (To) From Related Party	8,248	18,301
Transition tax related to the Tax Act
Related Party Transaction [Line Items]
Transfer (To) From Related Party	$ 3,937	$ 0

EARNINGS PER SHARE - Additional

EARNINGS PER SHARE - Additional Information (Details) - shares	May 22, 2019	Mar. 30, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of shares outstanding - basic and diluted (in shares)		56,647,561	56,647,561
Subsequent Event
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of shares outstanding - basic and diluted (in shares)	56,647,561

EARNINGS PER SHARE - Earnings p

EARNINGS PER SHARE - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 15,413	$ 79,696
Basic earnings per share (in USD per share)	$ 0.27	$ 1.41
Diluted earnings per share (in USD per share)	$ 0.27	$ 1.41
Weighted average number of shares outstanding - basic and diluted (in shares)	56,647,561	56,647,561

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	May 22, 2019	May 17, 2019USD ($)	Apr. 01, 2019USD ($)	Mar. 30, 2019USD ($)	Dec. 29, 2018USD ($)	Mar. 31, 2018USD ($)
Subsequent Event [Line Items]
Maximum amount of accounts receivable sold at any point in time (up to)				$ 377,500,000	$ 367,500,000	$ 367,500,000
Subsequent Event
Subsequent Event [Line Items]
Percentage ownership	100.00%
Spinoff transaction, conversion ratio	0.1428571429
Maximum amount of accounts receivable sold at any point in time (up to)			$ 377,500,000
Credit Agreement | Subsequent Event
Subsequent Event [Line Items]
Credit facility amount		$ 1,550,000,000
Long-term line of credit		1,050,000,000
Credit Agreement | Revolving Credit Facility | Subsequent Event
Subsequent Event [Line Items]
Credit facility amount		500,000,000
Term Loan A Facility | Term Loan | Subsequent Event
Subsequent Event [Line Items]
Credit facility amount		$ 750,000,000
Debt instrument, term		5 years
Term Loan B Facility | Term Loan | Subsequent Event
Subsequent Event [Line Items]
Credit facility amount		$ 300,000,000
Debt instrument, term		7 years

Uncategorized Items - ktbq12019

Label	Element	Value
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 3,047,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (2,713,000)