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Business Segment Information | 3 Months Ended
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Apr. 02, 2022
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S.-based outlet stores, U.S. Sheer Hosiery business and certain sales from its supply chain and transitional services with the European Innerwear business which was sold on March 5, 2022. In the fourth quarter of 2021, the Company reached the decision to divest its U.S. Sheer Hosiery business, including the L’eggs brand, as part of its strategy to streamline its portfolio under its Full Potential plan. See Note “Assets and Liabilities Held for Sale” for additional information. The types of products and services from which each reportable segment derives its revenues are as follows: •Innerwear includes sales in the United States of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear. •Activewear includes sales in the United States of branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel. •International primarily includes sales of the Company’s innerwear and activewear products outside the United States, primarily in Australasia, Europe, Asia, Latin America and Canada. The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, restructuring and other action-related charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 1, 2022.
| Quarters Ended |  |
April 2, 2022 |  | April 3, 2021 |  |  |  |
Net sales: |  |  |  |  |  |  |
Innerwear | $ | 578,947 |  |  | $ | 570,435 |  |  |  |  |
Activewear | 386,937 |  |  | 364,003 |  |  |  |  |
International | 510,129 |  |  | 506,261 |  |  |  |  |
Other | 100,143 |  |  | 67,330 |  |  |  |  |
Total net sales | $ | 1,576,156 |  |  | $ | 1,508,029 |  |  |  |  |
| Quarters Ended |  |
| April 2, 2022 |  | April 3, 2021 |  |  |  |
Segment operating profit: |  |  |  |  |  |  |
Innerwear | $ | 102,146 |  |  | $ | 127,417 |  |  |  |  |
Activewear | 48,984 |  |  | 60,594 |  |  |  |  |
International | 89,438 |  |  | 87,180 |  |  |  |  |
Other | (671) |  |  | 1,886 |  |  |  |  |
Total segment operating profit | 239,897 |  |  | 277,077 |  |  |  |  |
Items not included in segment operating profit: |  |  |  |  |  |  |
General corporate expenses | (57,228) |  |  | (59,823) |  |  |  |  |
Restructuring and other action-related charges | (4,802) |  |  | (19,393) |  |  |  |  |
Amortization of intangibles | (7,355) |  |  | (7,739) |  |  |  |  |
Total operating profit | 170,512 |  |  | 190,122 |  |  |  |  |
Other expenses | (987) |  |  | (2,561) |  |  |  |  |
Interest expense, net | (31,963) |  |  | (44,460) |  |  |  |  |
Income from continuing operations before income tax expense | $ | 137,562 |  |  | $ | 143,101 |  |  |  |  |
The Company incurred restructuring and other action-related charges that were reported in the following lines in the Condensed Consolidated Statements of Income:
| Quarters Ended |  |
April 2, 2022 |  | April 3, 2021 |  |  |  |
Cost of sales | $ | 499 |  |  | $ | 2,807 |  |  |  |  |
Selling, general and administrative expenses | 4,303 |  |  | 16,586 |  |  |  |  |
Total included in operating profit | 4,802 |  |  | 19,393 |  |  |  |  |
Income tax expense | 816 |  |  | 11,302 |  |  |  |  |
Total restructuring and other action-related charges | $ | 3,986 |  |  | $ | 8,091 |  |  |  |  |
The components of restructuring and other action-related charges were as follows:
| Quarters Ended |  |
| April 2, 2022 |  | April 3, 2021 |  |  |  |
Full Potential Plan: |  |  |  |  |  |  |
Professional services | $ | 7,908 |  |  | $ | 11,706 |  |  |  |  |
Gain on classification of assets held for sale | (6,528) |  |  | — |  |  |  |  |
Operating model | (1,919) |  |  | — |  |  |  |  |
Supply chain segmentation | 1,020 |  |  | — |  |  |  |  |
Technology | 4,459 |  |  | — |  |  |  |  |
Impairment of intangible assets | — |  |  | 7,302 |  |  |  |  |
Other | (138) |  |  | 385 |  |  |  |  |
Total included in operating profit | 4,802 |  |  | 19,393 |  |  |  |  |
Discrete tax benefits | — |  |  | 7,295 |  |  |  |  |
Tax effect on actions | 816 |  |  | 4,007 |  |  |  |  |
Total benefit included in income tax expense | 816 |  |  | 11,302 |  |  |  |  |
Total restructuring and other action-related charges | $ | 3,986 |  |  | $ | 8,091 |  |  |  |  |
Restructuring and other action-related charges within operating profit included $4,802 and $19,393 of charges related to the implementation of the Company’s Full Potential plan in the quarters ended April 2, 2022 and April 3, 2021, respectively. Full Potential plan charges in the quarter ended April 2, 2022 included a non-cash gain of $6,528, which is reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income, to adjust the valuation allowance related to the U.S. Sheer Hosiery business resulting from a decrease in carrying value due to changes in working capital. Full Potential plan charges in the quarter ended April 3, 2021 included impairment charges of $7,302, which are reflected in the “Selling, general and administrative expenses” line of the Condensed Consolidated Statements of Income, related to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it was not marketed for sale and that the Company intends to exit. In the third quarter of 2021, the Company recorded a charge for an action to resize its U.S. corporate office workforce through a voluntary retirement program which was included in restructuring and other action-related charges. At January 1, 2022, the accrual for employee termination and other benefits related to the Company’s 2021 voluntary retirement program was $15,688. The Company made benefit payments of $3,066 during the quarter ended April 2, 2022, resulting in an ending accrual of $12,622 which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheets at April 2, 2022.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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