Cover
| Cover - shares | 9 Months Ended | |
| Oct. 01, 2022 | Oct. 28, 2022 | |
| Cover [Abstract] | ||
| Document Type | 10-Q | |
| Document Quarterly Report | true | |
| Document Period End Date | Oct. 01, 2022 | |
| Entity Transition Report | false | |
| Entity File Number | 001-38854 | |
| Entity Registrant Name | KONTOOR BRANDS, INC. | |
| Entity Incorporation, State or Country Code | NC | |
| Entity Tax Identification Number | 83-2680248 | |
| Entity Address, Address Line One | 400 N. Elm Street | |
| Entity Address, City or Town | Greensboro | |
| Entity Address, State or Province | NC | |
| Entity Address, Postal Zip Code | 27401 | |
| City Area Code | 336 | |
| Local Phone Number | 332-3400 | |
| Title of 12(b) Security | Common Stock, no par value | |
| Trading Symbol | KTB | |
| Security Exchange Name | NYSE | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Small Business | false | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 55,465,639 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2022 | |
| Document Fiscal Period Focus | Q3 | |
| Entity Central Index Key | 0001760965 | |
| Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
| Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Current assets | |||
| Cash and cash equivalents | $ 58,053 | $ 185,322 | $ 215,442 |
| Accounts receivable, net | 234,569 | 289,800 | 269,874 |
| Inventories | 678,207 | 362,957 | 409,110 |
| Prepaid expenses and other current assets | 102,425 | 72,579 | 93,922 |
| Total current assets | 1,073,254 | 910,658 | 988,348 |
| Property, plant and equipment, net | 101,407 | 105,155 | 106,959 |
| Operating lease assets | 47,831 | 54,950 | 56,555 |
| Intangible assets, net | 13,242 | 14,638 | 14,975 |
| Goodwill | 209,012 | 212,213 | 212,503 |
| Other assets | 208,264 | 235,410 | 233,842 |
| TOTAL ASSETS | 1,653,010 | 1,533,024 | 1,613,182 |
| Current liabilities | |||
| Short-term borrowings | 7,093 | 249 | 254 |
| Current portion of long-term debt | 7,500 | 0 | 18,125 |
| Accounts payable | 306,278 | 214,204 | 244,681 |
| Accrued liabilities | 167,690 | 217,164 | 218,058 |
| Operating lease liabilities, current | 18,885 | 24,195 | 23,480 |
| Total current liabilities | 507,446 | 455,812 | 504,598 |
| Operating lease liabilities, noncurrent | 30,255 | 32,993 | 36,329 |
| Other liabilities | 82,417 | 104,764 | 114,088 |
| Long-term debt | 824,793 | 791,317 | 773,413 |
| Commitments and contingencies | |||
| Total liabilities | 1,444,911 | 1,384,886 | 1,428,428 |
| Equity | |||
| Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at September 2022, December 2021 and September 2021 | 0 | 0 | 0 |
| Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 55,464,569 at September 2022; 56,381,466 at December 2021 and 57,550,958 at September 2021 | 0 | 0 | 0 |
| Additional paid-in capital | 237,934 | 218,259 | 207,963 |
| Retained earnings | 62,448 | 22,635 | 70,926 |
| Accumulated other comprehensive loss | (92,283) | (92,756) | (94,135) |
| Total equity | 208,099 | 148,138 | 184,754 |
| TOTAL LIABILITIES AND EQUITY | $ 1,653,010 | $ 1,533,024 | $ 1,613,182 |
Consolidated Balance Sheets (Pa
| Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Statement of Financial Position [Abstract] | |||
| Preferred stock, no par value (in USD per share) | $ 0 | $ 0 | $ 0 |
| Preferred stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | 90,000,000 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
| Common stock, no par value (in USD per share) | $ 0 | $ 0 | $ 0 |
| Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
| Common stock, shares outstanding (in shares) | 55,464,569 | 56,381,466 | 57,550,958 |
Consolidated Statements of Oper
| Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Income Statement [Abstract] | ||||
| Net revenues | $ 606,521 | $ 652,298 | $ 1,899,836 | $ 1,794,825 |
| Costs and operating expenses | ||||
| Cost of goods sold | 342,460 | 362,735 | 1,064,190 | 978,558 |
| Selling, general and administrative expenses | 188,995 | 203,583 | 563,614 | 601,934 |
| Total costs and operating expenses | 531,455 | 566,318 | 1,627,804 | 1,580,492 |
| Operating income | 75,066 | 85,980 | 272,032 | 214,333 |
| Interest expense | (8,858) | (7,156) | (25,115) | (26,588) |
| Interest income | 263 | 345 | 1,028 | 1,024 |
| Other expense, net | (2,219) | (676) | (5,187) | (1,073) |
| Income before income taxes | 64,252 | 78,493 | 242,758 | 187,696 |
| Income taxes | 13,169 | 15,080 | 48,870 | 36,183 |
| Net income | $ 51,083 | $ 63,413 | $ 193,888 | $ 151,513 |
| Earnings per common share | ||||
| Basic (in USD per share) | $ 0.92 | $ 1.10 | $ 3.47 | $ 2.63 |
| Diluted (in USD per share) | $ 0.90 | $ 1.07 | $ 3.40 | $ 2.56 |
| Weighted average shares outstanding | ||||
| Basic (in shares) | 55,428 | 57,648 | 55,830 | 57,535 |
| Diluted (in shares) | 56,550 | 59,282 | 57,060 | 59,180 |
Consolidated Statements of Comp
| Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 51,083 | $ 63,413 | $ 193,888 | $ 151,513 |
| Other comprehensive (loss) income | ||||
| Net change in foreign currency translation | (11,568) | (6,572) | (28,457) | (9,586) |
| Net change in defined benefit pension plans | 6 | 4 | 17 | 67 |
| Net change in derivative financial instruments | 11,236 | 1,402 | 28,913 | 10,191 |
| Total other comprehensive (loss) income, net of related taxes | (326) | (5,166) | 473 | 672 |
| Comprehensive income | $ 50,757 | $ 58,247 | $ 194,361 | $ 152,185 |
Consolidated Statements of Cash
| Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
| Oct. 01, 2022 | Oct. 02, 2021 | |
| OPERATING ACTIVITIES | ||
| Net income | $ 193,888 | $ 151,513 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||
| Depreciation and amortization | 27,827 | 26,675 |
| Stock-based compensation | 17,758 | 29,211 |
| Provision for doubtful accounts | 2,202 | (130) |
| Other | 8,536 | 7,601 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 37,673 | (41,369) |
| Inventories | (323,449) | (70,648) |
| Accounts payable | 98,556 | 78,381 |
| Income taxes | (11,682) | 9,506 |
| Accrued liabilities | (33,473) | 28,864 |
| Other assets and liabilities | (5,107) | (10,252) |
| Cash provided by operating activities | 12,729 | 209,352 |
| INVESTING ACTIVITIES | ||
| Property, plant and equipment expenditures | (13,091) | (6,642) |
| Capitalized computer software | (7,633) | (23,536) |
| Other | (990) | (1,778) |
| Cash used by investing activities | (21,714) | (31,956) |
| FINANCING ACTIVITIES | ||
| Borrowings under revolving credit facility | 76,000 | 0 |
| Repayments under revolving credit facility | (36,000) | 0 |
| Repayments of term loans | 0 | (125,000) |
| Repurchases of Common Stock | (62,494) | (10,006) |
| Dividends paid | (77,021) | (69,068) |
| Shares withheld for taxes, net of proceeds from issuance of Common Stock | (12,643) | (2,209) |
| Other | 7,002 | (562) |
| Cash used by financing activities | (105,156) | (206,845) |
| Effect of foreign currency rate changes on cash and cash equivalents | (13,128) | (3,247) |
| Net change in cash and cash equivalents | (127,269) | (32,696) |
| Cash and cash equivalents – beginning of period | 185,322 | 248,138 |
| Cash and cash equivalents – end of period | $ 58,053 | $ 215,442 |
Consolidated Statements of Equi
| Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
| Balance, beginning (in shares) at Jan. 02, 2021 | 57,255,000 | ||||
| Balance, beginning at Jan. 02, 2021 | $ 84,641 | $ 0 | $ 172,297 | $ 7,151 | $ (94,807) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 64,463 | 64,463 | |||
| Stock-based compensation, net (in shares) | 259,000 | ||||
| Stock-based compensation, net | 10,014 | 14,472 | (4,458) | ||
| Other comprehensive income (loss) | (1,890) | (1,890) | |||
| Dividends on Common Stock ($0.46 per share) | (22,964) | (22,964) | |||
| Balance, ending (in shares) at Apr. 03, 2021 | 57,514,000 | ||||
| Balance, ending at Apr. 03, 2021 | 134,264 | $ 0 | 186,769 | 44,192 | (96,697) |
| Balance, beginning (in shares) at Jan. 02, 2021 | 57,255,000 | ||||
| Balance, beginning at Jan. 02, 2021 | 84,641 | $ 0 | 172,297 | 7,151 | (94,807) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 151,513 | ||||
| Other comprehensive income (loss) | $ 672 | ||||
| Balance, ending (in shares) at Oct. 02, 2021 | 57,550,958 | 57,551,000 | |||
| Balance, ending at Oct. 02, 2021 | $ 184,754 | $ 0 | 207,963 | 70,926 | (94,135) |
| Balance, beginning (in shares) at Apr. 03, 2021 | 57,514,000 | ||||
| Balance, beginning at Apr. 03, 2021 | 134,264 | $ 0 | 186,769 | 44,192 | (96,697) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 23,637 | 23,637 | |||
| Stock-based compensation, net (in shares) | 118,000 | ||||
| Stock-based compensation, net | 11,309 | 12,007 | (698) | ||
| Other comprehensive income (loss) | 7,728 | 7,728 | |||
| Dividends on Common Stock ($0.46 per share) | (23,052) | (23,052) | |||
| Balance, ending (in shares) at Jul. 03, 2021 | 57,632,000 | ||||
| Balance, ending at Jul. 03, 2021 | 153,886 | $ 0 | 198,776 | 44,079 | (88,969) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 63,413 | 63,413 | |||
| Stock-based compensation, net (in shares) | 104,000 | ||||
| Stock-based compensation, net | 5,679 | 9,187 | (3,508) | ||
| Other comprehensive income (loss) | (5,166) | (5,166) | |||
| Dividends on Common Stock ($0.46 per share) | (23,052) | (23,052) | |||
| Repurchase of common stock (in shares) | (185,000) | ||||
| Repurchases of Common Stock | $ (10,006) | (10,006) | |||
| Balance, ending (in shares) at Oct. 02, 2021 | 57,550,958 | 57,551,000 | |||
| Balance, ending at Oct. 02, 2021 | $ 184,754 | $ 0 | 207,963 | 70,926 | (94,135) |
| Balance, beginning (in shares) at Jan. 01, 2022 | 56,381,466 | 56,381,000 | |||
| Balance, beginning at Jan. 01, 2022 | $ 148,138 | $ 0 | 218,259 | 22,635 | (92,756) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 80,810 | 80,810 | |||
| Stock-based compensation, net (in shares) | 387,000 | ||||
| Stock-based compensation, net | (5,371) | 6,462 | (11,833) | ||
| Other comprehensive income (loss) | 9,059 | 9,059 | |||
| Dividends on Common Stock ($0.46 per share) | (26,033) | (26,033) | |||
| Repurchase of common stock (in shares) | (492,000) | ||||
| Repurchases of Common Stock | (22,513) | (22,513) | |||
| Balance, ending (in shares) at Apr. 02, 2022 | 56,276,000 | ||||
| Balance, ending at Apr. 02, 2022 | $ 184,090 | $ 0 | 224,721 | 43,066 | (83,697) |
| Balance, beginning (in shares) at Jan. 01, 2022 | 56,381,466 | 56,381,000 | |||
| Balance, beginning at Jan. 01, 2022 | $ 148,138 | $ 0 | 218,259 | 22,635 | (92,756) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 193,888 | ||||
| Other comprehensive income (loss) | $ 473 | ||||
| Repurchase of common stock (in shares) | (1,494,853) | ||||
| Repurchases of Common Stock | $ (62,500) | ||||
| Balance, ending (in shares) at Oct. 01, 2022 | 55,464,569 | 55,465,000 | |||
| Balance, ending at Oct. 01, 2022 | $ 208,099 | $ 0 | 237,934 | 62,448 | (92,283) |
| Balance, beginning (in shares) at Apr. 02, 2022 | 56,276,000 | ||||
| Balance, beginning at Apr. 02, 2022 | 184,090 | $ 0 | 224,721 | 43,066 | (83,697) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 61,995 | 61,995 | |||
| Stock-based compensation, net (in shares) | 109,000 | ||||
| Stock-based compensation, net | 6,820 | 7,320 | (500) | ||
| Other comprehensive income (loss) | (8,260) | (8,260) | |||
| Dividends on Common Stock ($0.46 per share) | (25,475) | (25,475) | |||
| Repurchase of common stock (in shares) | (1,003,000) | ||||
| Repurchases of Common Stock | (39,981) | (39,981) | |||
| Balance, ending (in shares) at Jul. 02, 2022 | 55,382,000 | ||||
| Balance, ending at Jul. 02, 2022 | 179,189 | $ 0 | 232,041 | 39,105 | (91,957) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 51,083 | 51,083 | |||
| Stock-based compensation, net (in shares) | 83,000 | ||||
| Stock-based compensation, net | 3,666 | 5,893 | (2,227) | ||
| Other comprehensive income (loss) | (326) | (326) | |||
| Dividends on Common Stock ($0.46 per share) | $ (25,513) | (25,513) | |||
| Repurchase of common stock (in shares) | 0 | ||||
| Balance, ending (in shares) at Oct. 01, 2022 | 55,464,569 | 55,465,000 | |||
| Balance, ending at Oct. 01, 2022 | $ 208,099 | $ 0 | $ 237,934 | $ 62,448 | $ (92,283) |
Consolidated Statements of Eq_2
| Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
| Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | |
| Statement of Stockholders' Equity [Abstract] | ||||||
| Dividends on Common Stock (in USD per share) | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.40 | $ 0.40 | $ 0.40 |
BASIS OF PRESENTATION
| BASIS OF PRESENTATION | 9 Months Ended |
| Oct. 01, 2022 | |
| Accounting Policies [Abstract] | |
| BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Business Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") is a global lifestyle apparel company headquartered in the United States ("U.S."). The Company designs, produces, procures, markets and distributes apparel, footwear and accessories, 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 the Europe and Asia-Pacific regions, through department, specialty, company-operated, concession retail and independently-operated partnership stores and online. 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, this Form 10-Q presents the third quarter of the Company's fiscal year ending December 31, 2022 ("fiscal 2022"), which is a 52-week fiscal year. For presentation purposes herein, all references to periods ended September 2022, December 2021 and September 2021 correspond to the fiscal periods ended October 1, 2022, January 1, 2022 and October 2, 2021, respectively. Macroeconomic Environment Impact, Including COVID-19 Specific Considerations Macroeconomic pressures including inflation, rising interest rates and recessionary concerns, as well as ongoing global supply chain disruptions and the novel coronavirus (“COVID-19”) pandemic, continue to adversely impact global economic conditions, as well as the Company's operations. Additionally, although we do not have any significant operations within Russia or Ukraine, the conflict in these regions has caused disruption in the surrounding areas and greater uncertainty in the global economy. The Company considered the impact of these developments on the assumptions and estimates used when preparing these quarterly financial statements including, but not limited to, our allowance for doubtful accounts, inventory valuations, liabilities for variable consideration and contract termination, deferred tax valuation allowances, fair value measurements including asset impairment evaluations, the effectiveness of the Company’s hedging instruments, and expected compliance with all applicable financial covenants in our Credit Agreement (as defined in Note 6 to the Company's financial statements). These assumptions and estimates may change as new events occur and additional information is obtained regarding the impact of macroeconomic conditions, global supply chain disruptions, COVID-19 and the Russia-Ukraine conflict. Such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity. Basis of Presentation - Interim Financial Statements The accompanying unaudited interim financial statements 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 U.S. ("GAAP") for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. Operating results for the three and nine months ended September 2022 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2022. The unaudited financial statements should be read in conjunction with the audited consolidated and combined financial statements included in the Company's 2021 Annual Report on Form 10-K for the fiscal year ended January 1, 2022, as filed with the Securities and Exchange Commission on March 2, 2022 ("2021 Annual Report on Form 10-K"). Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting ,” which is intended to provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance was effective upon issuance and the Company may adopt the guidance and apply it prospectively to contract modifications made or relationships entered into or evaluated any time from the issuance date through December 31, 2022. The Company will continue to evaluate the impact that adoption of this guidance would have on its financial statements and related disclosures, most notably the Company's credit facilities and interest rate swap agreements, which is not expected to be significant. In September 2022, the Financial Accounting Standards Board issued Accounting Standards Update 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheet and a rollforward of obligations. This guidance is effective for the Company beginning in the first quarter of 2023, except for the obligation rollforward requirement which is effective beginning in the first quarter of 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and related disclosures in relation to certain of the Company's programs. |
REVENUES
| REVENUES | 9 Months Ended |
| Oct. 01, 2022 | |
| Revenue from Contract with Customer [Abstract] | |
| REVENUES | REVENUES Contract Balances and Performance Obligations The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Accounts receivable, net $ 234,569 $ 289,800 $ 269,874 Contract assets (a) 6,599 3,093 3,702 Contract liabilities (b) 919 2,258 2,118 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued liabilities" in the Company's balance sheets. For the three and nine months ended September 2022 and September 2021, revenue recognized that was included in contract liabilities as of December 2021 and December 2020, respectively, was not significant. As of September 2022, the Company has contractual rights under its licensing agreements to receive $50.4 million of fixed consideration related to the future minimum guarantees through December 2028. As of September 2022, there were no arrangements with any transaction price allocated to remaining performance obligations other than (i) contracts for which the Company has applied the practical expedients and (ii) fixed consideration related to future minimum guarantees. For the three and nine months ended September 2022, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not significant. The variable consideration under these arrangements is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption. Disaggregation of Revenue The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements have been included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales at company-operated Wrangler ® and Lee ® branded full-price and outlet stores, digital sales at www.wrangler.com and www.lee.com and sales from international concession arrangements. Other primarily includes other revenue sources, including sales and licensing of Rock & Republic ® apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021. Three Months Ended September 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 324,564 $ 84,122 $ 1,771 $ 410,457 Non-U.S. Wholesale 50,448 81,682 28 132,158 Direct-to-Consumer 31,149 32,661 96 63,906 Total $ 406,161 $ 198,465 $ 1,895 $ 606,521 Geographic revenues U.S. $ 351,624 $ 98,862 $ 1,867 $ 452,353 International 54,537 99,603 28 154,168 Total $ 406,161 $ 198,465 $ 1,895 $ 606,521 Three Months Ended September 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 344,277 $ 105,779 $ 2,226 $ 452,282 Non-U.S. Wholesale 48,558 86,494 446 135,498 Direct-to-Consumer 28,673 35,700 6 64,379 Other — — 139 139 Total $ 421,508 $ 227,973 $ 2,817 $ 652,298 Geographic revenues U.S. $ 368,507 $ 121,951 $ 2,371 $ 492,829 International 53,001 106,022 446 159,469 Total $ 421,508 $ 227,973 $ 2,817 $ 652,298 Nine Months Ended September 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,003,753 $ 341,125 $ 6,425 $ 1,351,303 Non-U.S. Wholesale 143,724 212,591 903 357,218 Direct-to-Consumer 89,051 102,022 242 191,315 Total $ 1,236,528 $ 655,738 $ 7,570 $ 1,899,836 Geographic revenues U.S. $ 1,078,998 $ 384,035 $ 6,667 $ 1,469,700 International 157,530 271,703 903 430,136 Total $ 1,236,528 $ 655,738 $ 7,570 $ 1,899,836 Nine Months Ended September 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 919,176 $ 309,673 $ 6,386 $ 1,235,235 Non-U.S. Wholesale 137,206 232,984 1,888 372,078 Direct-to-Consumer 75,249 111,478 19 186,746 Other — — 766 766 Total $ 1,131,631 $ 654,135 $ 9,059 $ 1,794,825 Geographic revenues U.S. $ 982,532 $ 356,362 $ 7,171 $ 1,346,065 International 149,099 297,773 1,888 448,760 Total $ 1,131,631 $ 654,135 $ 9,059 $ 1,794,825 |
BUSINESS SEGMENT INFORMATION
| BUSINESS SEGMENT INFORMATION | 9 Months Ended |
| Oct. 01, 2022 | |
| Segment Reporting [Abstract] | |
| BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has two reportable segments: • Wrangler — Wrangler ® branded denim, apparel and accessories. • Lee — Lee ® branded denim, apparel and accessories. The chief operating decision maker allocates resources and assesses performance based on a global brand view which determines the Company's operating segments. Operating segments are the basis for the Company's reportable segments. In addition, we report an "Other" category in order to reconcile segment revenues and segment profit to the Company's operating results, but the Other category is not considered a reportable segment based on evaluation of aggregation criteria. Other primarily includes other revenue sources, including sales and licensing of Rock & Republic ® apparel. Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2021 Annual Report on Form 10-K. Corporate and other expenses and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. The following table presents financial information for the Company's reportable segments and income before income taxes: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Segment revenues: Wrangler $ 406,161 $ 421,508 $ 1,236,528 $ 1,131,631 Lee 198,465 227,973 655,738 654,135 Total reportable segment revenues 604,626 649,481 1,892,266 1,785,766 Other revenues 1,895 2,817 7,570 9,059 Total net revenues $ 606,521 $ 652,298 $ 1,899,836 $ 1,794,825 Segment profit: Wrangler $ 75,597 $ 77,184 $ 226,049 $ 214,001 Lee 26,703 42,969 101,837 112,583 Total reportable segment profit $ 102,300 $ 120,153 $ 327,886 $ 326,584 Corporate and other expenses (28,775) (35,051) (60,774) (113,585) Interest expense (8,858) (7,156) (25,115) (26,588) Interest income 263 345 1,028 1,024 (Loss) profit related to other revenues (678) 202 (267) 261 Income before income taxes $ 64,252 $ 78,493 $ 242,758 $ 187,696 |
ACCOUNTS RECEIVABLE
| ACCOUNTS RECEIVABLE | 9 Months Ended |
| Oct. 01, 2022 | |
| Receivables [Abstract] | |
| ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Allowance for Doubtful Accounts The Company reviews the estimates used to calculate the allowance for doubtful accounts on a quarterly basis. The following table presents a rollforward of the allowance for doubtful accounts: Nine Months Ended September (In thousands) 2022 2021 Balance, December $ 11,705 $ 19,143 Provisions for expected credit losses 2,116 (130) Accounts receivable balances written off (1) (1,069) (6,526) Other (2) (1,197) (633) Balance, September $ 11,555 $ 11,854 (1) Accounts receivable balances written off against the allowance were primarily due to the exit of our India business during 2021. (2) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. Sale of Trade Accounts Receivable The Company is party to an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. Under this agreement, 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. The Company removes the sold balances from "accounts receivable, net" in its balance sheet at the time of sale. The Company does not retain any interests in the sold trade accounts receivable but continues to service and collect outstanding trade accounts receivable on behalf of the financial institution. During the nine months ended September 2022 and September 2021, the Company sold total trade accounts receivable of $1,016.0 million and $943.2 million, respectively. As of September 2022, December 2021 and September 2021, $197.8 million, $170.6 million and $197.7 million, respectively, of the sold trade accounts receivable had been removed from the Company's balance sheets but remained outstanding with the financial institution. |
INVENTORIES
| INVENTORIES | 9 Months Ended |
| Oct. 01, 2022 | |
| Inventory Disclosure [Abstract] | |
| INVENTORIES | INVENTORIES The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Finished products $ 584,480 $ 293,427 $ 342,008 Work-in-process 37,823 32,346 29,596 Raw materials 55,904 37,184 37,506 Total inventories $ 678,207 $ 362,957 $ 409,110 |
SHORT-TERM BORROWINGS AND LONG-
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9 Months Ended |
| Oct. 01, 2022 | |
| Debt Disclosure [Abstract] | |
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT Short-term Borrowings At September 2022, December 2021 and September 2021, the Company had $24.3 million, $10.1 million and $10.1 million, respectively, of borrowing availability under international lines of credit with various banks, which are uncommitted and may be terminated at any time by either the Company or the banks. There was $6.9 million of outstanding balances under these arrangements at September 2022, and no outstanding balances at December 2021 and September 2021. In addition, short-term borrowings at September 2022, December 2021 and September 2021 included other debt of $0.2 million, $0.2 million and $0.3 million, respectively. Long-term Debt The following table presents the components of long-term debt as recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Revolving Credit Facility $ 40,000 $ — $ — Term Loan A 397,822 397,427 660,738 Term Loan B — — 130,800 4.125% Notes, due 2029 394,471 393,890 — Total long-term debt 832,293 791,317 791,538 Less: current portion (7,500) — (18,125) Long-term debt, due beyond one year $ 824,793 $ 791,317 $ 773,413 Credit Facilities On November 18, 2021, the Company completed a refinancing pursuant to which it issued $400.0 million of Notes (as defined below) and amended and restated its Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for (i) a five-year $400.0 million term loan A facility (“Term Loan A”), with mandatory repayments beginning in March 2023 and (ii) a five-year $500.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Credit Facilities”) with the lenders and agents party thereto. The net proceeds from the offering of the Notes, together with $7.6 million of cash on hand, were used to repay $265.0 million of the principal amount outstanding under the then existing term loan A, and all of the $133.0 million principal amount outstanding under the then existing term loan B. Term Loan A had an outstanding principal amount of $400.0 million at both September 2022 and December 2021, and at September 2021, the then existing term loan A had an outstanding principal amount of $665.0 million. These balances are reported net of unamortized deferred financing costs. As of September 2022, interest expense on Term Loan A was being recorded at an effective annual interest rate of 3.7%, including the amortization of deferred financing costs and the impact of the Company’s interest rate swap. The Revolving Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a $75.0 million letter of credit sublimit. As of September 2022, the Company had $40.0 million of outstanding borrowings under the Revolving Credit Facility and $12.1 million of outstanding standby letters of credit issued on behalf of the Company, leaving $447.9 million available for borrowing against this facility. The interest rate per annum applicable to the Credit Agreement is an interest rate benchmark elected by the Company based on the currency and term of the borrowing plus an applicable margin, as defined therein. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type as well as customary events of default. In addition, the Credit Agreement contains financial covenants which require compliance with (i) a total leverage ratio not to exceed 4.50 to 1.00 as of the last day of any test period, with an allowance for up to two elections to increase the limit to 5.00 to 1.00 in connection with certain material acquisitions, and (ii) a consolidated interest coverage ratio as of the last day of any test period to be no less than 3.00 to 1.00. As of September 2022, the Company was in compliance with all financial covenants and expects to maintain compliance with the applicable financial covenants for at least one year from the issuance of these financial statements. Senior Notes On November 18, 2021, the Company entered into an indenture (the “Indenture”) by and among the Company and certain subsidiaries of the Company named as guarantors therein (the “Guarantors”), pursuant to which it issued $400.0 million of unsecured senior notes due November 2029 (the “Notes”) through a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Notes bear interest at a fixed rate of 4.125% per annum, payable in cash in arrears on May 15 and November 15 of each year. The Notes had an outstanding principal amount of $400.0 million at both September 2022 and December 2021. This balance is reported net of unamortized deferred financing costs. As of September 2022, interest expense on the Notes was being recorded at an effective annual interest rate of 4.3%, including the amortization of deferred financing costs. The Notes are guaranteed on a senior unsecured basis by the Company’s existing and future domestic subsidiaries (other than certain excluded subsidiaries) that are borrowers under or guarantors of the Credit Facilities or certain other indebtedness. The Indenture governing the Notes contains customary negative covenants for financings of this type. The Indenture does not contain any financial covenants. As of September 2022, the Company was in compliance with the Indenture. Refer to Note 10 in the Company's 2021 Annual Report on Form 10-K for additional information regarding the Company’s debt obligations. Total cash paid for interest, net of amounts capitalized, was $18.7 million and $22.7 million during the nine months ended September 2022 and September 2021, respectively. |
FAIR VALUE MEASUREMENTS
| FAIR VALUE MEASUREMENTS | 9 Months Ended |
| Oct. 01, 2022 | |
| Fair Value Disclosures [Abstract] | |
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. 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. Recurring Fair Value Measurements The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 September 2022 Financial assets: Cash equivalents: Money market funds $ 25,911 $ 25,911 $ — $ — Time deposits 2,230 2,230 — — Foreign currency exchange contracts 21,359 — 21,359 — Interest rate swap agreements 11,494 — 11,494 — Investment securities 41,950 41,950 — — Financial liabilities: Foreign currency exchange contracts 186 — 186 — Deferred compensation 43,142 — 43,142 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2021 Financial assets: Cash equivalents: Money market funds $ 110,050 $ 110,050 $ — $ — Time deposits 3,644 3,644 — — Foreign currency exchange contracts 7,321 — 7,321 — Investment securities 57,613 57,613 — — Financial liabilities: Foreign currency exchange contracts 1,972 — 1,972 — Interest rate swap agreements 6,052 — 6,052 — Deferred compensation 58,791 — 58,791 — The Company's cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign currency exchange contracts and interest rate swap agreements, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies and observable interest rate yield curves for interest rate swap agreements. Investment securities are held in the Company's deferred compensation plans as an economic hedge of the related deferred compensation liabilities and are comprised of mutual funds that are valued based on quoted prices in active markets (Level 1). Liabilities related to the Company's deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments (Level 2). Additionally, at September 2022, the carrying value of the Company's long-term debt was $832.3 million compared to a fair value of $751.0 million. At December 2021, the carrying value of the Company's long-term debt was $791.3 million compared to a fair value of $797.5 million. The fair value of long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. |
DERIVATIVE FINANCIAL INSTRUMENT
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
| Oct. 01, 2022 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Summary of Derivative Financial Instruments The Company enters into derivative contracts with external counterparties to hedge certain foreign currency transactions. The notional amount of all outstanding foreign currency exchange contracts was $292.8 million at September 2022, $297.4 million at December 2021 and $298.9 million at September 2021, consisting primarily of contracts hedging exposures to the euro, Mexican peso, Canadian dollar, British pound, Polish zloty and Swedish krona. Foreign currency exchange contracts have maturities up to 20 months. During 2019, the Company entered into "floating to fixed" interest rate swap agreements to mitigate exposure to volatility in LIBOR rates on the Company's future interest payments. The notional amount of the interest rate swap agreements was $300.0 million at September 2022 and $350.0 million at both December 2021 and September 2021. Because these interest rate swap agreements meet the criteria for hedge accounting, all related gains and losses are deferred within accumulated other comprehensive loss ("AOCL") and are being amortized through April 18, 2024. The Company's outstanding derivative financial instruments met the criteria for hedge accounting at the inception of the hedging relationship. At each reporting period, the Company assesses whether the hedging relationships continue to be highly effective in offsetting changes in cash flows of hedged items. If the Company determines that a specific hedging relationship has ceased to be highly effective, it would discontinue hedge accounting. All designated hedging relationships were determined to be highly effective as of September 2022. A limited number of foreign currency exchange contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes. The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives September December September September December September (In thousands) 2022 2021 2021 2022 2021 2021 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 21,329 $ 7,321 $ 7,057 $ (186) $ (1,972) $ (2,545) Interest rate swap agreements 11,494 — — — (6,052) (10,582) Derivatives not designated as hedging instruments: Foreign currency exchange contracts 30 — 73 — — — Total derivatives $ 32,853 $ 7,321 $ 7,130 $ (186) $ (8,024) $ (13,127) The Company records and presents the fair value of all derivative assets and liabilities in the Company's balance sheets on a gross basis, even though certain derivative contracts are subject to master netting agreements. If the Company were to offset and record the asset and liability balances of its derivative contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Company's balance sheets would be adjusted from the current gross presentation to the net amounts. The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: September 2022 December 2021 September 2021 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 32,853 $ (186) $ 7,321 $ (8,024) $ 7,130 $ (13,127) Gross amounts not offset in the balance sheet (186) 186 (1,636) 1,636 (1,560) 1,560 Net amounts $ 32,667 $ — $ 5,685 $ (6,388) $ 5,570 $ (11,567) The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) September 2022 December 2021 September 2021 Prepaid expenses and other current assets $ 18,523 $ 6,356 $ 6,440 Accrued liabilities (134) (1,623) (2,110) Other assets 14,330 965 690 Other liabilities (52) (6,401) (11,017) Cash Flow Hedges The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Three Months Ended September Nine Months Ended September Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency exchange contracts $ 12,414 $ 1,408 $ 26,654 $ 4,311 Interest rate swap agreements 5,327 (264) 15,881 1,213 Total $ 17,741 $ 1,144 $ 42,535 $ 5,524 Gain (Loss) Reclassified from AOCL into Income (In thousands) Three Months Ended September Nine Months Ended September Location of Gain (Loss) 2022 2021 2022 2021 Net revenues $ (401) $ 47 $ (794) $ 247 Cost of goods sold 4,228 58 8,954 (2,775) Other expense, net 168 (170) 67 (597) Interest expense 346 (1,507) (1,665) (4,515) Total $ 4,341 $ (1,572) $ 6,562 $ (7,640) Derivative Contracts Not Designated as Hedges Contracts that are not designated as hedges and are recorded at fair value in the Company's balance sheets primarily relate to derivatives contracts used by the Company to manage foreign currency exchange risk on certain accounts receivable and accounts payable. Gains or losses on the balance sheet contracts largely offset the net transaction gains or losses on the related assets and liabilities. In addition, a limited number of cash flow hedges were deemed ineffective and de-designated. Changes in the fair values of derivative contracts not designated as hedges are recognized directly in earnings. The following table presents a summary of these derivatives included in the Company's statements of operations: Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income (In thousands) Three Months Ended September Nine Months Ended September Derivatives Not Designated as Hedges 2022 2021 2022 2021 Foreign currency exchange contracts Net revenues $ — $ — $ — $ (104) Cost of goods sold 13 18 84 4 Other expense, net — 205 — 325 Total $ 13 $ 223 $ 84 $ 225 Other Derivative Information There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during the three and nine months ended September 2022 and September 2021. At September 2022, AOCL included $27.3 million of pre-tax net deferred gains for foreign currency exchange contracts and interest rate swap agreements that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on rates in effect when outstanding derivative contracts are settled. |
CAPITAL AND ACCUMULATED OTHER C
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
| Oct. 01, 2022 | |
| Equity [Abstract] | |
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS Common Stock The Company did not repurchase any shares of Common Stock during the three months ended September 2022. During the nine months ended September 2022, the Company repurchased 1,494,853 shares of Common Stock for $62.5 million, including commissions, under its share repurchase program authorized by the Company's Board of Directors. All shares reacquired in connection with the repurchase program are treated as authorized and unissued shares upon repurchase. Accumulated Other Comprehensive Loss The Company's comprehensive loss 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 Company's balance sheets. The Company's comprehensive income is presented in the Company's statements of comprehensive income. The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) September 2022 December 2021 September 2021 Foreign currency translation $ (121,582) $ (93,125) $ (89,764) Defined benefit pension plans (2,160) (2,177) (1,822) Derivative financial instruments 31,459 2,546 (2,549) Accumulated other comprehensive loss $ (92,283) $ (92,756) $ (94,135) The following tables present changes in AOCL, net of related tax impact: Three Months Ended September 2022 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2022 $ (110,014) $ (2,166) $ 20,223 $ (91,957) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (11,568) — 15,078 3,510 Reclassifications to net income of previously deferred (gains) losses — 6 (3,842) (3,836) Net other comprehensive income (loss) (11,568) 6 11,236 (326) Balance, September 2022 $ (121,582) $ (2,160) $ 31,459 $ (92,283) Three Months Ended September 2021 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2021 $ (83,192) $ (1,826) $ (3,951) $ (88,969) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (6,572) — 434 (6,138) Reclassifications to net income of previously deferred (gains) losses — 4 968 972 Net other comprehensive income (loss) (6,572) 4 1,402 (5,166) Balance, September 2021 $ (89,764) $ (1,822) $ (2,549) $ (94,135) Nine Months Ended September 2022 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2021 $ (93,125) $ (2,177) $ 2,546 $ (92,756) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (28,457) — 35,444 6,987 Reclassifications to net income of previously deferred (gains) losses — 17 (6,531) (6,514) Net other comprehensive income (loss) (28,457) 17 28,913 473 Balance, September 2022 $ (121,582) $ (2,160) $ 31,459 $ (92,283) Nine Months Ended September 2021 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2020 $ (80,178) $ (1,889) $ (12,740) $ (94,807) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (9,586) — 4,631 (4,955) Reclassifications to net income of previously deferred (gains) losses — 67 5,560 5,627 Net other comprehensive income (loss) (9,586) 67 10,191 672 Balance, September 2021 $ (89,764) $ (1,822) $ (2,549) $ (94,135) The following table presents reclassifications out of AOCL: (In thousands) Three Months Ended September Nine Months Ended September Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2022 2021 2022 2021 Defined benefit pension plans: Net change in deferred losses during the period Selling, general and administrative expenses $ (8) $ (4) $ (23) $ (89) Total before tax (8) (4) (23) (89) Income taxes Income taxes 2 — 6 22 Net of tax (6) (4) (17) (67) Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (401) $ 47 $ (794) $ 247 Foreign currency exchange contracts Cost of goods sold 4,228 58 8,954 (2,775) Foreign currency exchange contracts Other expense, net 168 (170) 67 (597) Interest rate swap agreements Interest expense 346 (1,507) (1,665) (4,515) Total before tax 4,341 (1,572) 6,562 (7,640) Income taxes Income taxes (499) 604 (31) 2,080 Net of tax 3,842 (968) 6,531 (5,560) Total reclassifications for the period, net of tax $ 3,836 $ (972) $ 6,514 $ (5,627) |
INCOME TAXES
| INCOME TAXES | 9 Months Ended |
| Oct. 01, 2022 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The effective income tax rate for the nine months ended September 2022 was 20.1% compared to 19.3% in the 2021 period. The nine months ended September 2022 included a net discrete tax expense primarily related to the revaluation of deferred tax balances due to a change in tax jurisdiction, partially offset by benefits from stock-based compensation. The net discrete tax expense for the nine months ended September 2022 increased the effective income tax rate by 0.7%. The nine months ended September 2021 included a net discrete tax benefit primarily related to stock-based compensation which decreased the effective income tax rate by 0.7%. The effective tax rate without discrete items for the nine months ended September 2022 was 19.4% compared to 20.0% in the 2021 period. The decrease was primarily due to changes in our jurisdictional mix of earnings. During the nine months ended September 2022, the amount of net unrecognized tax benefits and associated interest increased by $0.6 million to $14.1 million. Management believes that it is reasonably possible that the amount of unrecognized tax benefits may decrease by $0.2 million within the next 12 fiscal months due to settlements of audits and expiration of statutes of limitations, all of which would reduce income tax expense. |
EARNINGS PER SHARE
| EARNINGS PER SHARE | 9 Months Ended |
| Oct. 01, 2022 | |
| Earnings Per Share [Abstract] | |
| EARNINGS PER SHARE | EARNINGS PER SHARE The calculations of basic and diluted earnings per share ("EPS") are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. The following table presents the calculations of basic and diluted EPS: Three Months Ended September Nine Months Ended September (In thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 51,083 $ 63,413 $ 193,888 $ 151,513 Basic weighted average shares outstanding 55,428 57,648 55,830 57,535 Dilutive effect of stock-based awards 1,122 1,634 1,230 1,645 Diluted weighted average shares outstanding 56,550 59,282 57,060 59,180 Earnings per share: Basic earnings per common share $ 0.92 $ 1.10 $ 3.47 $ 2.63 Diluted earnings per common share $ 0.90 $ 1.07 $ 3.40 $ 2.56 For the three and nine months ended September 2022 and September 2021, an immaterial number of anti-dilutive shares was excluded from the dilutive earnings per share calculation. For the three and nine months ended September 2022, a total of 0.4 million and 0.3 million shares, respectively, of performance-based restricted stock units ("PRSUs") were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. For the three and nine months ended September 2021, a total of 0.4 million and 0.3 million shares, respectively, of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. |
LEASES
| LEASES | 9 Months Ended |
| Oct. 01, 2022 | |
| Leases [Abstract] | |
| LEASES | LEASES The Company enters into operating leases for retail stores, operational facilities, vehicles and certain equipment, with terms expiring at various dates through 2032. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. The following table presents supplemental cash flow and non-cash information related to operating leases: Nine Months Ended September (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 22,608 $ 27,815 Right-of-use operating assets obtained in exchange for new operating leases - non-cash activity $ 12,780 $ 3,330 |
RESTRUCTURING
| RESTRUCTURING | 9 Months Ended |
| Oct. 01, 2022 | |
| Restructuring and Related Activities [Abstract] | |
| RESTRUCTURING | RESTRUCTURING The Company generally incurs restructuring charges related to cost optimization of business activities, primarily related to severance and employee-related benefits. During the third quarter of 2022, the Company approved plans to globalize our operating model and relocate our European headquarters to Geneva, Switzerland. All of the $13.7 million of restructuring charges recognized during the three and nine months ended September 2022 were reflected within "selling, general and administrative expenses," and related to the globalization of the Company's operating model and relocation of the European headquarters. All of the $1.0 million of restructuring charges recognized during the nine months ended September 2021 were reflected within "selling, general and administrative expenses," and primarily related to previously approved initiatives. All of the $13.7 million restructuring accrual reported in the Company's balance sheet at September 2022 is expected to be paid out within the next 12 months and was classified within "accrued liabilities." All of the $1.1 million restructuring accrual reported in the Company's balance sheet at December 2021 was expected to be paid out within the next 12 months and was classified within "accrued liabilities." The following table presents the components of restructuring charges: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Severance and employee-related benefits $ 13,688 $ — $ 13,688 $ 992 Total restructuring charges $ 13,688 $ — $ 13,688 $ 992 The following table presents the restructuring costs by business segment: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Wrangler $ — $ — $ — $ 306 Lee — — — 331 Corporate and other 13,688 — 13,688 355 Total $ 13,688 $ — $ 13,688 $ 992 The following table presents activity in the restructuring accrual for the nine-month period ended September 2022: (In thousands) Total Accrual at December 2021 $ 1,079 Charges 13,688 Cash payments (957) Adjustments to accruals 145 Currency translation (222) Balance, September 2022 $ 13,733 |
SUBSEQUENT EVENT
| SUBSEQUENT EVENT | 9 Months Ended |
| Oct. 01, 2022 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENT | SUBSEQUENT EVENTOn October 21, 2022, the Board of Directors declared a regular quarterly cash dividend of $0.48 per share of the Company's Common Stock. The cash dividend will be payable on December 19, 2022, to shareholders of record at the close of business on December 9, 2022. |
BASIS OF PRESENTATION (Policies
| BASIS OF PRESENTATION (Policies) | 9 Months Ended |
| Oct. 01, 2022 | |
| Accounting Policies [Abstract] | |
| Fiscal Year | Fiscal YearThe Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. Accordingly, this Form 10-Q presents the third quarter of the Company's fiscal year ending December 31, 2022 ("fiscal 2022"), which is a 52-week fiscal year. For presentation purposes herein, all references to periods ended September 2022, December 2021 and September 2021 correspond to the fiscal periods ended October 1, 2022, January 1, 2022 and October 2, 2021, respectively. |
| Basis of Presentation - Interim Financial Statements | Basis of Presentation - Interim Financial Statements The accompanying unaudited interim financial statements 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 U.S. ("GAAP") for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. Operating results for the three and nine months ended September 2022 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2022. The unaudited financial statements should be read in conjunction with the audited consolidated and combined financial statements included in the Company's 2021 Annual Report on Form 10-K for the fiscal year ended January 1, 2022, as filed with the Securities and Exchange Commission on March 2, 2022 ("2021 Annual Report on Form 10-K"). |
| Recently Issued Accounting Standard | Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting ,” which is intended to provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance was effective upon issuance and the Company may adopt the guidance and apply it prospectively to contract modifications made or relationships entered into or evaluated any time from the issuance date through December 31, 2022. The Company will continue to evaluate the impact that adoption of this guidance would have on its financial statements and related disclosures, most notably the Company's credit facilities and interest rate swap agreements, which is not expected to be significant. In September 2022, the Financial Accounting Standards Board issued Accounting Standards Update 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheet and a rollforward of obligations. This guidance is effective for the Company beginning in the first quarter of 2023, except for the obligation rollforward requirement which is effective beginning in the first quarter of 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and related disclosures in relation to certain of the Company's programs. |
| Fair Value Measurements | Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. 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. |
REVENUES (Tables)
| REVENUES (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Revenue from Contract with Customer [Abstract] | |
| Contract Assets and Liabilities | The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Accounts receivable, net $ 234,569 $ 289,800 $ 269,874 Contract assets (a) 6,599 3,093 3,702 Contract liabilities (b) 919 2,258 2,118 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued liabilities" in the Company's balance sheets. |
| Disaggregation of Revenue | The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements have been included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales at company-operated Wrangler ® and Lee ® branded full-price and outlet stores, digital sales at www.wrangler.com and www.lee.com and sales from international concession arrangements. Other primarily includes other revenue sources, including sales and licensing of Rock & Republic ® apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021. Three Months Ended September 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 324,564 $ 84,122 $ 1,771 $ 410,457 Non-U.S. Wholesale 50,448 81,682 28 132,158 Direct-to-Consumer 31,149 32,661 96 63,906 Total $ 406,161 $ 198,465 $ 1,895 $ 606,521 Geographic revenues U.S. $ 351,624 $ 98,862 $ 1,867 $ 452,353 International 54,537 99,603 28 154,168 Total $ 406,161 $ 198,465 $ 1,895 $ 606,521 Three Months Ended September 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 344,277 $ 105,779 $ 2,226 $ 452,282 Non-U.S. Wholesale 48,558 86,494 446 135,498 Direct-to-Consumer 28,673 35,700 6 64,379 Other — — 139 139 Total $ 421,508 $ 227,973 $ 2,817 $ 652,298 Geographic revenues U.S. $ 368,507 $ 121,951 $ 2,371 $ 492,829 International 53,001 106,022 446 159,469 Total $ 421,508 $ 227,973 $ 2,817 $ 652,298 Nine Months Ended September 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,003,753 $ 341,125 $ 6,425 $ 1,351,303 Non-U.S. Wholesale 143,724 212,591 903 357,218 Direct-to-Consumer 89,051 102,022 242 191,315 Total $ 1,236,528 $ 655,738 $ 7,570 $ 1,899,836 Geographic revenues U.S. $ 1,078,998 $ 384,035 $ 6,667 $ 1,469,700 International 157,530 271,703 903 430,136 Total $ 1,236,528 $ 655,738 $ 7,570 $ 1,899,836 Nine Months Ended September 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 919,176 $ 309,673 $ 6,386 $ 1,235,235 Non-U.S. Wholesale 137,206 232,984 1,888 372,078 Direct-to-Consumer 75,249 111,478 19 186,746 Other — — 766 766 Total $ 1,131,631 $ 654,135 $ 9,059 $ 1,794,825 Geographic revenues U.S. $ 982,532 $ 356,362 $ 7,171 $ 1,346,065 International 149,099 297,773 1,888 448,760 Total $ 1,131,631 $ 654,135 $ 9,059 $ 1,794,825 |
BUSINESS SEGMENT INFORMATION (T
| BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Segment Reporting [Abstract] | |
| Financial Information for Reportable Segments | The following table presents financial information for the Company's reportable segments and income before income taxes: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Segment revenues: Wrangler $ 406,161 $ 421,508 $ 1,236,528 $ 1,131,631 Lee 198,465 227,973 655,738 654,135 Total reportable segment revenues 604,626 649,481 1,892,266 1,785,766 Other revenues 1,895 2,817 7,570 9,059 Total net revenues $ 606,521 $ 652,298 $ 1,899,836 $ 1,794,825 Segment profit: Wrangler $ 75,597 $ 77,184 $ 226,049 $ 214,001 Lee 26,703 42,969 101,837 112,583 Total reportable segment profit $ 102,300 $ 120,153 $ 327,886 $ 326,584 Corporate and other expenses (28,775) (35,051) (60,774) (113,585) Interest expense (8,858) (7,156) (25,115) (26,588) Interest income 263 345 1,028 1,024 (Loss) profit related to other revenues (678) 202 (267) 261 Income before income taxes $ 64,252 $ 78,493 $ 242,758 $ 187,696 |
ACCOUNTS RECEIVABLE (Tables)
| ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Receivables [Abstract] | |
| Rollforward of the Allowance for Doubtful Accounts | The following table presents a rollforward of the allowance for doubtful accounts: Nine Months Ended September (In thousands) 2022 2021 Balance, December $ 11,705 $ 19,143 Provisions for expected credit losses 2,116 (130) Accounts receivable balances written off (1) (1,069) (6,526) Other (2) (1,197) (633) Balance, September $ 11,555 $ 11,854 (1) Accounts receivable balances written off against the allowance were primarily due to the exit of our India business during 2021. (2) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. |
INVENTORIES (Tables)
| INVENTORIES (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Inventory Disclosure [Abstract] | |
| Components of Inventories | The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Finished products $ 584,480 $ 293,427 $ 342,008 Work-in-process 37,823 32,346 29,596 Raw materials 55,904 37,184 37,506 Total inventories $ 678,207 $ 362,957 $ 409,110 |
SHORT-TERM BORROWINGS AND LON_2
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Debt Disclosure [Abstract] | |
| Schedule of Long-term Debt Instruments | The following table presents the components of long-term debt as recorded in the Company's balance sheets: (In thousands) September 2022 December 2021 September 2021 Revolving Credit Facility $ 40,000 $ — $ — Term Loan A 397,822 397,427 660,738 Term Loan B — — 130,800 4.125% Notes, due 2029 394,471 393,890 — Total long-term debt 832,293 791,317 791,538 Less: current portion (7,500) — (18,125) Long-term debt, due beyond one year $ 824,793 $ 791,317 $ 773,413 |
FAIR VALUE MEASUREMENTS (Tables
| FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Fair Value Disclosures [Abstract] | |
| Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 September 2022 Financial assets: Cash equivalents: Money market funds $ 25,911 $ 25,911 $ — $ — Time deposits 2,230 2,230 — — Foreign currency exchange contracts 21,359 — 21,359 — Interest rate swap agreements 11,494 — 11,494 — Investment securities 41,950 41,950 — — Financial liabilities: Foreign currency exchange contracts 186 — 186 — Deferred compensation 43,142 — 43,142 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2021 Financial assets: Cash equivalents: Money market funds $ 110,050 $ 110,050 $ — $ — Time deposits 3,644 3,644 — — Foreign currency exchange contracts 7,321 — 7,321 — Investment securities 57,613 57,613 — — Financial liabilities: Foreign currency exchange contracts 1,972 — 1,972 — Interest rate swap agreements 6,052 — 6,052 — Deferred compensation 58,791 — 58,791 — |
DERIVATIVE FINANCIAL INSTRUME_2
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Schedule of Derivative Instruments | The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives September December September September December September (In thousands) 2022 2021 2021 2022 2021 2021 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 21,329 $ 7,321 $ 7,057 $ (186) $ (1,972) $ (2,545) Interest rate swap agreements 11,494 — — — (6,052) (10,582) Derivatives not designated as hedging instruments: Foreign currency exchange contracts 30 — 73 — — — Total derivatives $ 32,853 $ 7,321 $ 7,130 $ (186) $ (8,024) $ (13,127) The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: September 2022 December 2021 September 2021 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 32,853 $ (186) $ 7,321 $ (8,024) $ 7,130 $ (13,127) Gross amounts not offset in the balance sheet (186) 186 (1,636) 1,636 (1,560) 1,560 Net amounts $ 32,667 $ — $ 5,685 $ (6,388) $ 5,570 $ (11,567) The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) September 2022 December 2021 September 2021 Prepaid expenses and other current assets $ 18,523 $ 6,356 $ 6,440 Accrued liabilities (134) (1,623) (2,110) Other assets 14,330 965 690 Other liabilities (52) (6,401) (11,017) |
| Pre-Tax Effects of Cash Flow Hedges Included in the Statement of Operations and Statements of Comprehensive Income (Loss) | The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Three Months Ended September Nine Months Ended September Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency exchange contracts $ 12,414 $ 1,408 $ 26,654 $ 4,311 Interest rate swap agreements 5,327 (264) 15,881 1,213 Total $ 17,741 $ 1,144 $ 42,535 $ 5,524 Gain (Loss) Reclassified from AOCL into Income (In thousands) Three Months Ended September Nine Months Ended September Location of Gain (Loss) 2022 2021 2022 2021 Net revenues $ (401) $ 47 $ (794) $ 247 Cost of goods sold 4,228 58 8,954 (2,775) Other expense, net 168 (170) 67 (597) Interest expense 346 (1,507) (1,665) (4,515) Total $ 4,341 $ (1,572) $ 6,562 $ (7,640) |
| Summary of Derivatives Not Designated as Hedges | The following table presents a summary of these derivatives included in the Company's statements of operations: Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income (In thousands) Three Months Ended September Nine Months Ended September Derivatives Not Designated as Hedges 2022 2021 2022 2021 Foreign currency exchange contracts Net revenues $ — $ — $ — $ (104) Cost of goods sold 13 18 84 4 Other expense, net — 205 — 325 Total $ 13 $ 223 $ 84 $ 225 |
CAPITAL AND ACCUMULATED OTHER_2
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Equity [Abstract] | |
| Deferred Components of AOCL in Equity, Net of Related Taxes, and Changes in AOCL | The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) September 2022 December 2021 September 2021 Foreign currency translation $ (121,582) $ (93,125) $ (89,764) Defined benefit pension plans (2,160) (2,177) (1,822) Derivative financial instruments 31,459 2,546 (2,549) Accumulated other comprehensive loss $ (92,283) $ (92,756) $ (94,135) The following tables present changes in AOCL, net of related tax impact: Three Months Ended September 2022 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2022 $ (110,014) $ (2,166) $ 20,223 $ (91,957) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (11,568) — 15,078 3,510 Reclassifications to net income of previously deferred (gains) losses — 6 (3,842) (3,836) Net other comprehensive income (loss) (11,568) 6 11,236 (326) Balance, September 2022 $ (121,582) $ (2,160) $ 31,459 $ (92,283) Three Months Ended September 2021 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, June 2021 $ (83,192) $ (1,826) $ (3,951) $ (88,969) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (6,572) — 434 (6,138) Reclassifications to net income of previously deferred (gains) losses — 4 968 972 Net other comprehensive income (loss) (6,572) 4 1,402 (5,166) Balance, September 2021 $ (89,764) $ (1,822) $ (2,549) $ (94,135) Nine Months Ended September 2022 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2021 $ (93,125) $ (2,177) $ 2,546 $ (92,756) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (28,457) — 35,444 6,987 Reclassifications to net income of previously deferred (gains) losses — 17 (6,531) (6,514) Net other comprehensive income (loss) (28,457) 17 28,913 473 Balance, September 2022 $ (121,582) $ (2,160) $ 31,459 $ (92,283) Nine Months Ended September 2021 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2020 $ (80,178) $ (1,889) $ (12,740) $ (94,807) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (9,586) — 4,631 (4,955) Reclassifications to net income of previously deferred (gains) losses — 67 5,560 5,627 Net other comprehensive income (loss) (9,586) 67 10,191 672 Balance, September 2021 $ (89,764) $ (1,822) $ (2,549) $ (94,135) |
| Reclassification Out of AOCL | The following table presents reclassifications out of AOCL: (In thousands) Three Months Ended September Nine Months Ended September Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2022 2021 2022 2021 Defined benefit pension plans: Net change in deferred losses during the period Selling, general and administrative expenses $ (8) $ (4) $ (23) $ (89) Total before tax (8) (4) (23) (89) Income taxes Income taxes 2 — 6 22 Net of tax (6) (4) (17) (67) Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (401) $ 47 $ (794) $ 247 Foreign currency exchange contracts Cost of goods sold 4,228 58 8,954 (2,775) Foreign currency exchange contracts Other expense, net 168 (170) 67 (597) Interest rate swap agreements Interest expense 346 (1,507) (1,665) (4,515) Total before tax 4,341 (1,572) 6,562 (7,640) Income taxes Income taxes (499) 604 (31) 2,080 Net of tax 3,842 (968) 6,531 (5,560) Total reclassifications for the period, net of tax $ 3,836 $ (972) $ 6,514 $ (5,627) |
EARNINGS PER SHARE (Tables)
| EARNINGS PER SHARE (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Earnings Per Share [Abstract] | |
| Schedule of Earnings Per Share | The following table presents the calculations of basic and diluted EPS: Three Months Ended September Nine Months Ended September (In thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 51,083 $ 63,413 $ 193,888 $ 151,513 Basic weighted average shares outstanding 55,428 57,648 55,830 57,535 Dilutive effect of stock-based awards 1,122 1,634 1,230 1,645 Diluted weighted average shares outstanding 56,550 59,282 57,060 59,180 Earnings per share: Basic earnings per common share $ 0.92 $ 1.10 $ 3.47 $ 2.63 Diluted earnings per common share $ 0.90 $ 1.07 $ 3.40 $ 2.56 |
LEASES (Tables)
| LEASES (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Leases [Abstract] | |
| Supplemental Cash Flow and Non-Cash Information Related to Operating Leases | The following table presents supplemental cash flow and non-cash information related to operating leases: Nine Months Ended September (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 22,608 $ 27,815 Right-of-use operating assets obtained in exchange for new operating leases - non-cash activity $ 12,780 $ 3,330 |
RESTRUCTURING (Tables)
| RESTRUCTURING (Tables) | 9 Months Ended |
| Oct. 01, 2022 | |
| Restructuring and Related Activities [Abstract] | |
| Components of Restructuring Charges | The following table presents the components of restructuring charges: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Severance and employee-related benefits $ 13,688 $ — $ 13,688 $ 992 Total restructuring charges $ 13,688 $ — $ 13,688 $ 992 The following table presents the restructuring costs by business segment: Three Months Ended September Nine Months Ended September (In thousands) 2022 2021 2022 2021 Wrangler $ — $ — $ — $ 306 Lee — — — 331 Corporate and other 13,688 — 13,688 355 Total $ 13,688 $ — $ 13,688 $ 992 |
| Activity in Restructuring | The following table presents activity in the restructuring accrual for the nine-month period ended September 2022: (In thousands) Total Accrual at December 2021 $ 1,079 Charges 13,688 Cash payments (957) Adjustments to accruals 145 Currency translation (222) Balance, September 2022 $ 13,733 |
REVENUES - Contract Assets and
| REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Revenue from Contract with Customer [Abstract] | |||
| Accounts receivable, net | $ 234,569 | $ 289,800 | $ 269,874 |
| Contract assets | 6,599 | 3,093 | 3,702 |
| Contract liabilities | $ 919 | $ 2,258 | $ 2,118 |
REVENUES - Additional Informati
| REVENUES - Additional Information (Details) $ in Millions | Oct. 01, 2022 USD ($) |
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 50.4 |
REVENUES - Disaggregation of Re
| REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | $ 606,521 | $ 652,298 | $ 1,899,836 | $ 1,794,825 |
| U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 452,353 | 492,829 | 1,469,700 | 1,346,065 |
| International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 154,168 | 159,469 | 430,136 | 448,760 |
| Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 410,457 | 452,282 | 1,351,303 | 1,235,235 |
| Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 132,158 | 135,498 | 357,218 | 372,078 |
| Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 63,906 | 64,379 | 191,315 | 186,746 |
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 139 | 766 | ||
| Operating Segments | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 604,626 | 649,481 | 1,892,266 | 1,785,766 |
| Operating Segments | Wrangler | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 406,161 | 421,508 | 1,236,528 | 1,131,631 |
| Operating Segments | Wrangler | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 351,624 | 368,507 | 1,078,998 | 982,532 |
| Operating Segments | Wrangler | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 54,537 | 53,001 | 157,530 | 149,099 |
| Operating Segments | Wrangler | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 324,564 | 344,277 | 1,003,753 | 919,176 |
| Operating Segments | Wrangler | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 50,448 | 48,558 | 143,724 | 137,206 |
| Operating Segments | Wrangler | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 31,149 | 28,673 | 89,051 | 75,249 |
| Operating Segments | Wrangler | Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 0 | 0 | ||
| Operating Segments | Lee | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 198,465 | 227,973 | 655,738 | 654,135 |
| Operating Segments | Lee | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 98,862 | 121,951 | 384,035 | 356,362 |
| Operating Segments | Lee | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 99,603 | 106,022 | 271,703 | 297,773 |
| Operating Segments | Lee | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 84,122 | 105,779 | 341,125 | 309,673 |
| Operating Segments | Lee | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 81,682 | 86,494 | 212,591 | 232,984 |
| Operating Segments | Lee | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 32,661 | 35,700 | 102,022 | 111,478 |
| Operating Segments | Lee | Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 0 | 0 | ||
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 1,895 | 2,817 | 7,570 | 9,059 |
| Other | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 1,867 | 2,371 | 6,667 | 7,171 |
| Other | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 28 | 446 | 903 | 1,888 |
| Other | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 1,771 | 2,226 | 6,425 | 6,386 |
| Other | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 28 | 446 | 903 | 1,888 |
| Other | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | $ 96 | 6 | $ 242 | 19 |
| Other | Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | $ 139 | $ 766 | ||
BUSINESS SEGMENT INFORMATION -
| BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 9 Months Ended |
| Oct. 01, 2022 segment | |
| Segment Reporting [Abstract] | |
| Number of reportable segments | 2 |
BUSINESS SEGMENT INFORMATION _2
| BUSINESS SEGMENT INFORMATION - Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | $ 606,521 | $ 652,298 | $ 1,899,836 | $ 1,794,825 |
| Total reportable segment profit | 75,066 | 85,980 | 272,032 | 214,333 |
| Interest expense | (8,858) | (7,156) | (25,115) | (26,588) |
| Interest income | 263 | 345 | 1,028 | 1,024 |
| Income before income taxes | 64,252 | 78,493 | 242,758 | 187,696 |
| Operating Segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 604,626 | 649,481 | 1,892,266 | 1,785,766 |
| Total reportable segment profit | 102,300 | 120,153 | 327,886 | 326,584 |
| Operating Segments | Wrangler | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 406,161 | 421,508 | 1,236,528 | 1,131,631 |
| Total reportable segment profit | 75,597 | 77,184 | 226,049 | 214,001 |
| Operating Segments | Lee | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 198,465 | 227,973 | 655,738 | 654,135 |
| Total reportable segment profit | 26,703 | 42,969 | 101,837 | 112,583 |
| Corporate and other expenses | ||||
| Segment Reporting Information [Line Items] | ||||
| Corporate and other expenses | (28,775) | (35,051) | (60,774) | (113,585) |
| Other | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 1,895 | 2,817 | 7,570 | 9,059 |
| Total reportable segment profit | $ (678) | $ 202 | $ (267) | $ 261 |
ACCOUNTS RECEIVABLE - Rollforwa
| ACCOUNTS RECEIVABLE - Rollforward of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
| Oct. 01, 2022 | Oct. 02, 2021 | |
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
| Beginning balance | $ 11,705 | $ 19,143 |
| Provisions for expected credit losses | 2,116 | (130) |
| Accounts receivable balances written off | (1,069) | (6,526) |
| Other | (1,197) | (633) |
| Ending balance | $ 11,555 | $ 11,854 |
ACCOUNTS RECEIVABLE - Additiona
| ACCOUNTS RECEIVABLE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
| Receivables [Abstract] | |||||
| Maximum amount of accounts receivable sold at any point in time (up to) | $ 377.5 | $ 377.5 | |||
| Sale of accounts receivable | 1,016 | $ 943.2 | |||
| Accounts receivable removed related to sale of accounts receivable | 197.8 | $ 197.7 | 197.8 | 197.7 | $ 170.6 |
| Funding fee | $ 1.4 | $ 0.5 | $ 3 | $ 1.4 | |
INVENTORIES (Details)
| INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Inventory Disclosure [Abstract] | |||
| Finished products | $ 584,480 | $ 293,427 | $ 342,008 |
| Work-in-process | 37,823 | 32,346 | 29,596 |
| Raw materials | 55,904 | 37,184 | 37,506 |
| Total inventories | $ 678,207 | $ 362,957 | $ 409,110 |
SHORT-TERM BORROWINGS AND LON_3
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Short-term Borrowings (Details) - USD ($) | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Short-term Debt [Line Items] | |||
| Short-term borrowings | $ 7,093,000 | $ 249,000 | $ 254,000 |
| Other short-term borrowings | 200,000 | 200,000 | 300,000 |
| International borrowing arrangements | |||
| Short-term Debt [Line Items] | |||
| Debt capacity | 24,300,000 | 10,100,000 | 10,100,000 |
| Short-term borrowings | $ 6,900,000 | $ 0 | $ 0 |
SHORT-TERM BORROWINGS AND LON_4
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Nov. 18, 2021 | Oct. 02, 2021 |
| Debt Instrument [Line Items] | ||||
| Total long-term debt | $ 832,293 | $ 791,317 | $ 791,538 | |
| Less: current portion | (7,500) | 0 | (18,125) | |
| Long-term debt, due beyond one year | 824,793 | 791,317 | 773,413 | |
| Term Loan A | Term Loan | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 397,822 | 397,427 | 660,738 | |
| Term Loan B | Term Loan | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 0 | 0 | 130,800 | |
| Revolving Credit Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 40,000 | 0 | 0 | |
| Senior Notes | 4.125% Senior Notes, due 2029 | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, interest rate, stated percentage | 4.125% | |||
| Total long-term debt | $ 394,471 | $ 393,890 | $ 0 |
SHORT-TERM BORROWINGS AND LON_5
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Credit Facilities (Details) | 9 Months Ended | |||
| Nov. 18, 2021 USD ($) | Oct. 01, 2022 USD ($) election | Jan. 01, 2022 USD ($) | Oct. 02, 2021 USD ($) | |
| Debt Instrument [Line Items] | ||||
| Debt instrument, leverage ratio, number of elections to increase the limit (up to) | election | 2 | |||
| Maximum | ||||
| Debt Instrument [Line Items] | ||||
| Leverage ratio | 4.50 | |||
| Debt instrument, leverage ratio, limit increase | 5 | |||
| Minimum | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, interest coverage ratio | 3 | |||
| Revolving Credit Facility | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, term | 5 years | |||
| Debt capacity | $ 500,000,000 | |||
| Long-term debt, gross | $ 40,000,000 | |||
| Remaining borrowing capacity | 447,900,000 | |||
| Letter of Credit | ||||
| Debt Instrument [Line Items] | ||||
| Debt capacity | 75,000,000 | |||
| Long-term line of credit | 12,100,000 | |||
| 4.125% Senior Notes, due 2029 | Senior Notes | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, face amount | 400,000,000 | |||
| Long-term debt, gross | $ 400,000,000 | $ 400,000,000 | ||
| Effective annual interest rate | 4.30% | |||
| Term Loan | ||||
| Debt Instrument [Line Items] | ||||
| Cash | $ 7,600,000 | |||
| Term Loan | Term Loan A | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, term | 5 years | |||
| Debt capacity | $ 400,000,000 | |||
| Repayments of term loans | 265,000,000 | |||
| Long-term debt, gross | $ 400,000,000 | $ 400,000,000 | $ 665,000,000 | |
| Effective annual interest rate | 3.70% | |||
| Term Loan | Term Loan B | ||||
| Debt Instrument [Line Items] | ||||
| Repayments of term loans | $ 133,000,000 |
SHORT-TERM BORROWINGS AND LON_6
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Senior Notes (Details) - 4.125% Senior Notes, due 2029 - Senior Notes - USD ($) $ in Millions | 9 Months Ended | |||
| Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | Nov. 18, 2021 | |
| Debt Instrument [Line Items] | ||||
| Debt instrument, face amount | $ 400 | |||
| Debt instrument, interest rate, stated percentage | 4.125% | |||
| Long-term debt, gross | $ 400 | $ 400 | ||
| Effective annual interest rate | 4.30% | |||
| Interest expense, debt | $ 18.7 | $ 22.7 | ||
FAIR VALUE MEASUREMENTS - Class
| FAIR VALUE MEASUREMENTS - Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Cash equivalents: | |||
| Money market funds | $ 25,911 | $ 110,050 | |
| Time deposits | 2,230 | 3,644 | |
| Foreign currency exchange contracts | 32,853 | 7,321 | $ 7,130 |
| Investment securities | 41,950 | 57,613 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 186 | 8,024 | $ 13,127 |
| Deferred compensation | 43,142 | 58,791 | |
| Level 1 | |||
| Cash equivalents: | |||
| Money market funds | 25,911 | 110,050 | |
| Time deposits | 2,230 | 3,644 | |
| Investment securities | 41,950 | 57,613 | |
| Financial liabilities: | |||
| Deferred compensation | 0 | 0 | |
| Level 2 | |||
| Cash equivalents: | |||
| Money market funds | 0 | 0 | |
| Time deposits | 0 | 0 | |
| Investment securities | 0 | 0 | |
| Financial liabilities: | |||
| Deferred compensation | 43,142 | 58,791 | |
| Level 3 | |||
| Cash equivalents: | |||
| Money market funds | 0 | 0 | |
| Time deposits | 0 | 0 | |
| Investment securities | 0 | 0 | |
| Financial liabilities: | |||
| Deferred compensation | 0 | 0 | |
| Foreign currency exchange contracts | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 21,359 | 7,321 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 186 | 1,972 | |
| Foreign currency exchange contracts | Level 1 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Foreign currency exchange contracts | Level 2 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 21,359 | 7,321 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 186 | 1,972 | |
| Foreign currency exchange contracts | Level 3 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Interest rate swap agreements | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 11,494 | ||
| Financial liabilities: | |||
| Foreign currency exchange contracts | 6,052 | ||
| Interest rate swap agreements | Level 1 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | ||
| Financial liabilities: | |||
| Foreign currency exchange contracts | 0 | ||
| Interest rate swap agreements | Level 2 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 11,494 | ||
| Financial liabilities: | |||
| Foreign currency exchange contracts | 6,052 | ||
| Interest rate swap agreements | Level 3 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | $ 0 | ||
| Financial liabilities: | |||
| Foreign currency exchange contracts | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
| FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Long-term debt | $ 832,293 | $ 791,317 | $ 791,538 |
| Level 2 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Debt, fair value | $ 751,000 | $ 797,500 |
DERIVATIVE FINANCIAL INSTRUME_3
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
| Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | |
| Derivative [Line Items] | |||
| Cash flow hedge gains to be reclassified during the next 12 months | $ 27.3 | ||
| Foreign currency exchange contracts | |||
| Derivative [Line Items] | |||
| Notional amount | $ 292.8 | $ 297.4 | $ 298.9 |
| Term of contract (up to) | 20 months | ||
| Interest rate swap agreements | |||
| Derivative [Line Items] | |||
| Notional amount | $ 300 | $ 350 | $ 350 |
DERIVATIVE FINANCIAL INSTRUME_4
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on an Individual Contract Basis (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Fair Value of Derivatives with Unrealized Gains | |||
| Total derivatives | $ 32,853 | $ 7,321 | $ 7,130 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Total derivatives | (186) | (8,024) | (13,127) |
| Designated as Hedging Instrument | Foreign currency exchange contracts | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives designated as hedging instruments: | 21,329 | 7,321 | 7,057 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives designated as hedging instruments: | (186) | (1,972) | (2,545) |
| Designated as Hedging Instrument | Interest rate swap agreements | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives designated as hedging instruments: | 11,494 | 0 | 0 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives designated as hedging instruments: | 0 | (6,052) | (10,582) |
| Not Designated as Hedging Instrument | Foreign currency exchange contracts | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives not designated as hedging instruments: | 30 | 0 | 73 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives not designated as hedging instruments: | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Reconciliation of Gross to Net Amounts for Derivative Asset and Liability Balances (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Derivative Asset | |||
| Gross amounts presented in the balance sheet | $ 32,853 | $ 7,321 | $ 7,130 |
| Gross amounts not offset in the balance sheet | (186) | (1,636) | (1,560) |
| Derivative Asset | 32,667 | 5,685 | 5,570 |
| Derivative Liability | |||
| Gross amounts presented in the balance sheet | (186) | (8,024) | (13,127) |
| Gross amounts not offset in the balance sheet | 186 | 1,636 | 1,560 |
| Derivative Liability | $ 0 | $ (6,388) | $ (11,567) |
DERIVATIVE FINANCIAL INSTRUME_6
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Location of Derivative in the Balance Sheets, with Current and Noncurrent Classification (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | $ 32,853 | $ 7,321 | $ 7,130 |
| Foreign currency exchange contracts | (186) | (8,024) | (13,127) |
| Prepaid expenses and other current assets | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | 18,523 | 6,356 | 6,440 |
| Accrued liabilities | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | (134) | (1,623) | (2,110) |
| Other assets | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | 14,330 | 965 | 690 |
| Other liabilities | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | $ (52) | $ (6,401) | $ (11,017) |
DERIVATIVE FINANCIAL INSTRUME_7
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | $ 17,741 | $ 1,144 | $ 42,535 | $ 5,524 |
| Foreign currency exchange contracts | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | 12,414 | 1,408 | 26,654 | 4,311 |
| Interest rate swap agreements | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | $ 5,327 | $ (264) | $ 15,881 | $ 1,213 |
DERIVATIVE FINANCIAL INSTRUME_8
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Location of Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | $ 4,341 | $ (1,572) | $ 6,562 | $ (7,640) |
| Net revenues | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | (401) | 47 | (794) | 247 |
| Cost of goods sold | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | 4,228 | 58 | 8,954 | (2,775) |
| Other expense, net | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | 168 | (170) | 67 | (597) |
| Interest expense | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | $ 346 | $ (1,507) | $ (1,665) | $ (4,515) |
DERIVATIVE FINANCIAL INSTRUME_9
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Derivatives Not Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in Income | $ 13 | $ 223 | $ 84 | $ 225 |
| Net revenues | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in Income | 0 | 0 | 0 | (104) |
| Cost of goods sold | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in Income | 13 | 18 | 84 | 4 |
| Other expense, net | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in Income | $ 0 | $ 205 | $ 0 | $ 325 |
CAPITAL AND ACCUMULATED OTHER_3
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
| Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | |
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
| Repurchase of common stock | $ 39,981 | $ 22,513 | $ 10,006 | ||
| Common Stock | |||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
| Repurchase of common stock (in shares) | 0 | 1,003,000 | 492,000 | 185,000 | 1,494,853 |
| Repurchase of common stock | $ 62,500 | ||||
CAPITAL AND ACCUMULATED OTHER_4
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Deferred Components of AOCL in Equity, Net of Related Taxes (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 |
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
| Accumulated other comprehensive loss | $ 208,099 | $ 179,189 | $ 184,090 | $ 148,138 | $ 184,754 | $ 153,886 | $ 134,264 | $ 84,641 |
| Accumulated Other Comprehensive Loss | ||||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
| Accumulated other comprehensive loss | (92,283) | (91,957) | $ (83,697) | (92,756) | (94,135) | (88,969) | $ (96,697) | (94,807) |
| Foreign Currency Translation | ||||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
| Accumulated other comprehensive loss | (121,582) | (110,014) | (93,125) | (89,764) | (83,192) | (80,178) | ||
| Defined benefit pension plans: | ||||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
| Accumulated other comprehensive loss | (2,160) | (2,166) | (2,177) | (1,822) | (1,826) | (1,889) | ||
| Gains (losses) on derivative financial instruments: | ||||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
| Accumulated other comprehensive loss | $ 31,459 | $ 20,223 | $ 2,546 | $ (2,549) | $ (3,951) | $ (12,740) |
CAPITAL AND ACCUMULATED OTHER_5
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCL, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
| Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
| Balance, beginning | $ 179,189 | $ 184,090 | $ 148,138 | $ 153,886 | $ 134,264 | $ 84,641 | $ 148,138 | $ 84,641 |
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 3,510 | (6,138) | 6,987 | (4,955) | ||||
| Reclassifications to net income of previously deferred (gains) losses | (3,836) | 972 | (6,514) | 5,627 | ||||
| Total other comprehensive (loss) income, net of related taxes | (326) | (8,260) | 9,059 | (5,166) | 7,728 | (1,890) | 473 | 672 |
| Balance, ending | 208,099 | 179,189 | 184,090 | 184,754 | 153,886 | 134,264 | 208,099 | 184,754 |
| Accumulated Other Comprehensive Loss | ||||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
| Balance, beginning | (91,957) | (83,697) | (92,756) | (88,969) | (96,697) | (94,807) | (92,756) | (94,807) |
| Total other comprehensive (loss) income, net of related taxes | (326) | (8,260) | 9,059 | (5,166) | 7,728 | (1,890) | ||
| Balance, ending | (92,283) | (91,957) | (83,697) | (94,135) | (88,969) | (96,697) | (92,283) | (94,135) |
| Foreign Currency Translation | ||||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
| Balance, beginning | (110,014) | (93,125) | (83,192) | (80,178) | (93,125) | (80,178) | ||
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | (11,568) | (6,572) | (28,457) | (9,586) | ||||
| Reclassifications to net income of previously deferred (gains) losses | 0 | 0 | 0 | 0 | ||||
| Total other comprehensive (loss) income, net of related taxes | (11,568) | (6,572) | (28,457) | (9,586) | ||||
| Balance, ending | (121,582) | (110,014) | (89,764) | (83,192) | (121,582) | (89,764) | ||
| Defined benefit pension plans: | ||||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
| Balance, beginning | (2,166) | (2,177) | (1,826) | (1,889) | (2,177) | (1,889) | ||
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 0 | 0 | 0 | 0 | ||||
| Reclassifications to net income of previously deferred (gains) losses | 6 | 4 | 17 | 67 | ||||
| Total other comprehensive (loss) income, net of related taxes | 6 | 4 | 17 | 67 | ||||
| Balance, ending | (2,160) | (2,166) | (1,822) | (1,826) | (2,160) | (1,822) | ||
| Gains (losses) on derivative financial instruments: | ||||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
| Balance, beginning | 20,223 | $ 2,546 | (3,951) | $ (12,740) | 2,546 | (12,740) | ||
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 15,078 | 434 | 35,444 | 4,631 | ||||
| Reclassifications to net income of previously deferred (gains) losses | (3,842) | 968 | (6,531) | 5,560 | ||||
| Total other comprehensive (loss) income, net of related taxes | 11,236 | 1,402 | 28,913 | 10,191 | ||||
| Balance, ending | $ 31,459 | $ 20,223 | $ (2,549) | $ (3,951) | $ 31,459 | $ (2,549) | ||
CAPITAL AND ACCUMULATED OTHER_6
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification Out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
| Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Selling, general and administrative expenses | $ 188,995 | $ 203,583 | $ 563,614 | $ 601,934 | ||||
| Net revenues | 606,521 | 652,298 | 1,899,836 | 1,794,825 | ||||
| Cost of goods sold | 342,460 | 362,735 | 1,064,190 | 978,558 | ||||
| Other expense, net | (2,219) | (676) | (5,187) | (1,073) | ||||
| Interest expense | (8,858) | (7,156) | (25,115) | (26,588) | ||||
| Total before tax | 64,252 | 78,493 | 242,758 | 187,696 | ||||
| Income taxes | (13,169) | (15,080) | (48,870) | (36,183) | ||||
| Net income | 51,083 | $ 61,995 | $ 80,810 | 63,413 | $ 23,637 | $ 64,463 | 193,888 | 151,513 |
| Reclassification Out of AOCL | ||||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Net income | 3,836 | (972) | 6,514 | (5,627) | ||||
| Reclassification Out of AOCL | Defined benefit pension plans: | ||||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Selling, general and administrative expenses | (8) | (4) | (23) | (89) | ||||
| Total before tax | (8) | (4) | (23) | (89) | ||||
| Income taxes | 2 | 0 | 6 | 22 | ||||
| Net income | (6) | (4) | (17) | (67) | ||||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | ||||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Total before tax | 4,341 | (1,572) | 6,562 | (7,640) | ||||
| Income taxes | (499) | 604 | (31) | 2,080 | ||||
| Net income | 3,842 | (968) | 6,531 | (5,560) | ||||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | Foreign currency exchange contracts | ||||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Net revenues | (401) | 47 | (794) | 247 | ||||
| Cost of goods sold | 4,228 | 58 | 8,954 | (2,775) | ||||
| Other expense, net | 168 | (170) | 67 | (597) | ||||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | Interest rate swap agreements | ||||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
| Interest expense | $ 346 | $ (1,507) | $ (1,665) | $ (4,515) | ||||
INCOME TAXES (Details)
| INCOME TAXES (Details) - USD ($) $ in Millions | 9 Months Ended | |
| Oct. 01, 2022 | Oct. 02, 2021 | |
| Income Tax Disclosure [Abstract] | ||
| Effective income tax rate | 20.10% | 19.30% |
| Tax increase (reduction) due to discrete items | 0.70% | (0.70%) |
| Effective income tax rate without discrete items | 19.40% | 20% |
| Decrease in unrecognized tax benefits and associated interest | $ 0.6 | |
| Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 14.1 | |
| Possible decrease in unrecognized income tax benefits | $ 0.2 | |
EARNINGS PER SHARE - Schedule o
| EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
| Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Earnings Per Share [Abstract] | ||||||||
| Net income | $ 51,083 | $ 61,995 | $ 80,810 | $ 63,413 | $ 23,637 | $ 64,463 | $ 193,888 | $ 151,513 |
| Basic weighted average shares outstanding (in shares) | 55,428 | 57,648 | 55,830 | 57,535 | ||||
| Dilutive effect of stock-based awards (in shares) | 1,122 | 1,634 | 1,230 | 1,645 | ||||
| Diluted weighted average shares outstanding (in shares) | 56,550 | 59,282 | 57,060 | 59,180 | ||||
| Earnings per share: | ||||||||
| Basic earnings per common share (in USD per share) | $ 0.92 | $ 1.10 | $ 3.47 | $ 2.63 | ||||
| Diluted earnings per common share (in USD per share) | $ 0.90 | $ 1.07 | $ 3.40 | $ 2.56 | ||||
EARNINGS PER SHARE - Additional
| EARNINGS PER SHARE - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Stock options excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
| Performance-based restricted stock units (PRSUs) | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Stock options excluded from computation of earnings per share (in shares) | 400,000 | 400,000 | 300,000 | 300,000 |
LEASES (Details)
| LEASES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
| Oct. 01, 2022 | Oct. 02, 2021 | |
| Leases [Abstract] | ||
| Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ 22,608 | $ 27,815 |
| Right-of-use operating assets obtained in exchange for new operating leases - non-cash activity | $ 12,780 | $ 3,330 |
RESTRUCTURING - Additional Info
| RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
| Restructuring and Related Activities [Abstract] | |||||
| Charges | $ 13,688 | $ 0 | $ 13,688 | $ 992 | |
| Restructuring reserve | $ 13,733 | $ 13,733 | $ 1,079 | ||
RESTRUCTURING - Components of R
| RESTRUCTURING - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Restructuring and Related Activities [Abstract] | ||||
| Severance and employee-related benefits | $ 13,688 | $ 0 | $ 13,688 | $ 992 |
| Total restructuring charges | $ 13,688 | $ 0 | $ 13,688 | $ 992 |
RESTRUCTURING - Restructuring C
| RESTRUCTURING - Restructuring Costs by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | $ 13,688 | $ 0 | $ 13,688 | $ 992 |
| Operating Segments | Wrangler | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | 0 | 0 | 0 | 306 |
| Operating Segments | Lee | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | 0 | 0 | 0 | 331 |
| Corporate and other | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | $ 13,688 | $ 0 | $ 13,688 | $ 355 |
RESTRUCTURING - Activity in Res
| RESTRUCTURING - Activity in Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
| Restructuring Reserve [Roll Forward] | ||||
| Amounts recorded in accrued liabilities, beginning | $ 1,079 | |||
| Charges | $ 13,688 | $ 0 | 13,688 | $ 992 |
| Cash payments | (957) | |||
| Adjustments to accruals | 145 | |||
| Currency translation | (222) | |||
| Amounts recorded in accrued liabilities. ending | $ 13,733 | $ 13,733 | ||
SUBSEQUENT EVENT (Details)
| SUBSEQUENT EVENT (Details) | Oct. 18, 2022 $ / shares |
| Subsequent Event | Dividend Declared | |
| Subsequent Event [Line Items] | |
| Dividends payable (in USD per share) | $ 0.48 |