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Business Segment Information | 9 Months Ended
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Sep. 28, 2019
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Business Segment Information | Business Segment Information The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S. value-based (“outlet”) stores and U.S. hosiery business. The types of products and services from which each reportable segment derives its revenues are as follows:
• | Innerwear includes sales of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear.
• | Activewear includes sales of basic branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel in collegiate bookstores, mass retailers and other channels.
• | International includes sales of products in all of the Company’s categories outside the United States, primarily in Europe, Australia, Asia, Latin America and Canada.
The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, acquisition-related and integration charges 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 December 29, 2018.
| Quarter Ended |  | Nine Months Ended
September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Net sales: |  |  |  |  |  |  |
Innerwear | $ | 578,453 |  |  | $ | 599,726 |  |  | $ | 1,733,002 |  |  | $ | 1,785,498 |
Activewear | 548,117 |  |  | 554,953 |  |  | 1,401,734 |  |  | 1,306,863 |
International | 663,525 |  |  | 619,435 |  |  | 1,878,568 |  |  | 1,735,184 |
Other | 76,872 |  |  | 74,593 |  |  | 202,614 |  |  | 208,109 |
Total net sales | $ | 1,866,967 |  |  | $ | 1,848,707 |  |  | $ | 5,215,918 |  |  | $ | 5,035,654 |
| Quarter Ended |  | Nine Months Ended
| September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Segment operating profit: |  |  |  |  |  |  |
Innerwear | $ | 121,467 |  |  | $ | 132,244 |  |  | $ | 375,623 |  |  | $ | 392,792 |
Activewear | 97,314 |  |  | 93,605 |  |  | 209,686 |  |  | 189,400 |
International | 107,168 |  |  | 99,624 |  |  | 280,944 |  |  | 253,243 |
Other | 9,643 |  |  | 8,400 |  |  | 16,429 |  |  | 18,187 |
Total segment operating profit | 335,592 |  |  | 333,873 |  |  | 882,682 |  |  | 853,622 |
Items not included in segment operating profit: |  |  |  |  |  |  |
General corporate expenses | (47,269 | ) |  | (46,161 | ) |  | (160,722 | ) |  | (136,694 | )
Acquisition, integration and other action-related charges | (9,937 | ) |  | (20,732 | ) |  | (43,919 | ) |  | (65,514 | )
Amortization of intangibles | (8,630 | ) |  | (10,091 | ) |  | (26,230 | ) |  | (28,404 | )
Total operating profit | 269,756 |  |  | 256,889 |  |  | 651,811 |  |  | 623,010 |
Other expenses | (8,066 | ) |  | (7,285 | ) |  | (23,766 | ) |  | (19,616 | )
Interest expense, net | (43,091 | ) |  | (52,795 | ) |  | (137,672 | ) |  | (146,988 | )
Income before income tax expense | $ | 218,599 |  |  | $ | 196,809 |  |  | $ | 490,373 |  |  | $ | 456,406 |
For the quarter ended September 28, 2019, the Company incurred pre-tax acquisition, integration and other action-related charges of $9,937, of which $9,424 is reported in the “Cost of sales” line and $513 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter ended September 29, 2018, the Company incurred pre-tax acquisition, integration and other action-related charges of $20,732, of which $11,760 is reported in the “Cost of sales” line and $8,972 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the nine months ended September 28, 2019, the Company incurred pre-tax acquisition, integration and other action-related charges of $43,919, of which $39,714 is reported in the “Cost of sales” line and $4,205 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the nine months ended September 29, 2018, the Company incurred pre-tax acquisition-related, integration and other action-related charges of $65,514, of which $33,596 is reported in the “Cost of sales” line and $31,918 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. As of December 29, 2018, the Company had an accrual of $10,806 for expected benefit payments related to actions taken in prior years. During the nine months ended September 28, 2019, the Company approved actions to close certain supply chain facilities and reduce overhead costs and incurred charges of $12,392 for employee termination and other benefits for employees affected by separation programs, with $9,720 and $2,672 of charges reflected in the “Cost of sales” and “Selling, general and administrative expenses” lines, respectively, in the Condensed Consolidated Statement of Income. During the nine months ended September 28, 2019, benefit payments, other accrual adjustments and foreign currency adjustments of $11,681 have been made, resulting in an ending accrual of $11,517, of which $9,548 and $1,969 is included in the “Accrued liabilities” and “Other noncurrent liabilities” lines of the Condensed Consolidated Balance Sheet, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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