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Business Segment Information
 6 Months Ended
Jul. 04, 2015
Text Block [Abstract]  
Business Segment Information
Business Segment Information
The Company’s operations are managed and reported in four operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear, Direct to Consumer and International. These segments are organized principally by product category, geographic location and distribution channel. Each segment has its own management that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms.
The types of products and services from which each reportable segment derives its revenues are as follows:
•
Innerwear sells basic branded products that are replenishment in nature under the product categories of men’s underwear, children’s underwear, socks, panties, hosiery and intimates, which includes bras and shapewear.
•
Activewear sells basic branded products that are primarily seasonal in nature under the product categories of branded printwear and retail activewear, as well as licensed logo apparel in collegiate bookstores, mass merchant and other channels.
•
Direct to Consumer includes the Company’s value-based (“outlet”) stores and Internet operations that sell products from the Company’s portfolio of leading brands. The Company’s Internet operations are supported by its catalogs.
•
International primarily relates to the Europe, Asia, Latin America, Canada and Australia geographic locations that sell products that span across the Innerwear and Activewear reportable segments. 
The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 3, 2015. The Company decided in the first quarter of 2015 to revise the manner which the Company allocates certain selling, general and administrative expenses. Certain prior-year segment operating profit disclosures have been revised to conform to the current-year presentation.
 
Quarters Ended
 
Six Months Ended
July 4,
2015
 
June 28,
2014
 
July 4,
2015
 
June 28,
2014
Net sales:
 
 
 
 
 
 
 
Innerwear
$
777,614

 
$
788,330

 
$
1,323,787

 
$
1,359,484

Activewear
378,157

 
317,814

 
676,253

 
612,318

Direct to Consumer
101,531

 
104,352

 
183,032

 
188,066

International
264,731

 
131,556

 
547,882

 
241,554

Total net sales
$
1,522,033

 
$
1,342,052

 
$
2,730,954

 
$
2,401,422


 
Quarters Ended
 
Six Months Ended
 
July 4,
2015
 
June 28,
2014
 
July 4,
2015
 
June 28,
2014
Segment operating profit:
 
 
 
 
 
 
 
Innerwear
$
196,035

 
$
183,917

 
$
306,812

 
$
281,922

Activewear
61,485

 
47,459

 
94,236

 
81,204

Direct to Consumer
11,954

 
11,223

 
9,676

 
9,897

International
21,004

 
15,935

 
43,120

 
24,121

Total segment operating profit
290,478

 
258,534

 
453,844

 
397,144

Items not included in segment operating profit:
 
 
 
 
 
 
 
General corporate expenses
(20,181
)
 
(23,142
)
 
(45,593
)
 
(43,431
)
Acquisition, integration and other action related charges
(125,966
)
 
(24,045
)
 
(169,194
)
 
(66,682
)
Amortization of intangibles
(5,398
)
 
(4,223
)
 
(10,193
)
 
(8,119
)
Total operating profit
138,933

 
207,124

 
228,864

 
278,912

Other expenses
(830
)
 
(660
)
 
(1,212
)
 
(1,095
)
Interest expense, net
(29,020
)
 
(21,119
)
 
(55,907
)
 
(42,937
)
Income before income tax expense
$
109,083

 
$
185,345

 
$
171,745

 
$
234,880


For the quarter ended July 4, 2015, the Company incurred acquisition, integration and other action related charges of $125,966, of which $26,151 is reported in the “Cost of sales” line and $99,815 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter ended June 28, 2014, the Company incurred acquisition, integration and other action related charges of $24,045, of which $3,835 is reported in the “Cost of sales” line and $20,210 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income.
For the six months ended July 4, 2015, the Company incurred acquisition, integration and other action related charges of $169,194, of which $40,219 is reported in the “Cost of sales” line and $128,975 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the six months ended June 28, 2014, the Company incurred acquisition, integration and other action related charges of $66,682, of which $18,662 is reported in the “Cost of sales” line and $48,020 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income.
As part of the Innerwear Europe acquisition strategy, the Company has identified management and administrative positions that are considered non-essential and/or duplicative that will be eliminated. As of July 4, 2015, the Company has accrued $56,000 for employee termination and other benefits recognized in accordance with expected benefit payments for affected employees. The charges are reflected in the “Cost of sales” and “Selling, general and administrative expenses” lines of the Consolidated Statements of Income. As of July 4, 2015, no benefit payments had been made. $17,000 and $39,000, respectively, is included in the “Accrued liabilities” and “Other noncurrent liabilities” line of the Consolidated Balance Sheet.