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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company established the Omnibus Incentive Plan to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retain employees. In April 2020, the stockholders of the Company approved the Hanesbrands Inc. 2020 Omnibus Incentive Plan (the “2020 Omnibus Plan”). The Company satisfies the requirement for common shares for share-based payments to employees pursuant to the 2020 Omnibus Plan by issuing newly authorized shares. The 2020 Omnibus Plan authorized a total of 11,000 shares of common stock of the Company for awards granted under the 2020 Omnibus Plan, plus the number of shares of common stock of the Company available for grant under the predecessor Hanesbrands Inc. Omnibus Incentive Plan (the “Prior Plan”) that had not yet been made subject to awards under the Prior Plan as of the effective date of the 2020 Omnibus Plan. The 2020 Omnibus Plan authorized 74,220 shares for awards of stock options and restricted stock units, of which 14,033 shares were available for future grants as of December 31, 2022.
In addition, during 2020, the Company granted stock awards to two newly hired executive officers outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08.
Stock Options
Under the Omnibus Incentive Plan, the exercise price of each stock option equals the closing market price of the Company’s stock on the date of grant. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during 2022, 2021 or 2020 under the Omnibus Incentive Plan.
During 2020, the Company granted 250 stock options to a newly hired executive officer outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08. The exercise price of each stock option equals either the closing market price of the Company’s stock on the date of grant or the closing market price of the Company’s stock on the date of grant multiplied by a specified exercise premium factor applicable to each option. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model. The
following table includes the assumptions for the Black-Scholes option-pricing model used in determining the fair value of these options granted during 2020.
Year Ended
January 2,
2021
Dividend yield5.00 %
Risk-free interest rate0.31 %
Volatility39.97 %
Expected term (years)6
The dividend yield assumption is based on the Company’s historical dividend payments. The risk-free rate of interest is based on the yield of a zero-coupon U.S. Treasury bond on the date the award is granted having a maturity approximately equal to the expected term of the award. The expected volatility, expected term and forfeitures are estimated based on the historical experience of the Company’s stock price, exercise experience and employee turnover data, respectively.
A summary of the changes in stock options outstanding to the Company’s employees is presented below:
 
SharesWeighted-
Average
Exercise
Price		Aggregate
Intrinsic
Value		Weighted-
Average
Remaining
Contractual
Term
(Years)
Options outstanding at December 28, 2019471 $6.79 $3,786 0.94
Granted250 17.18 
Exercised(471)6.79 
Options outstanding at January 2, 2021250 $17.18 $22 9.59
Granted— — 
Exercised— — 
Options outstanding at January 1, 2022250 $17.18 $200 8.59
Granted — — 
Exercised— — 
Options outstanding at December 31, 2022250 $17.18 $— 7.59
Options exercisable at December 31, 2022167 $15.75 $— 7.59
There were no stock option exercises during 2022 or 2021. The total intrinsic value of options that were exercised during 2020 was $3,299.
Stock Unit Awards
Under the Omnibus Incentive Plan, restricted stock units (“RSUs”) of the Company’s stock are granted to certain Company non-employee directors and employees to incent performance and retention over periods of one to three years. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. Some RSUs which have been granted under the Omnibus Incentive Plan vest upon continued future service to the Company, while others also have a performanced-based vesting feature. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company.
During 2020, the Company granted 225 RSUs to two newly hired executive officers outside of the 2020 Omnibus Plan in reliance on the employment inducement exemption under the New York Stock Exchange’s Listed Company Manual Rule 303A.08. These grants included 119 non-performanced based awards which vest upon continued future service to the Company and 106 performanced-based awards which have a performanced-based vesting feature. These RSUs are granted to induce employment and incent performance and retention over periods of two to three years. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company.
A summary of the changes in the restricted stock unit awards outstanding is presented below:
 
SharesWeighted-
Average
Grant
Date Fair
Value		Aggregate
Intrinsic
Value		Weighted-
Average
Remaining
Contractual
Term
(Years)
Nonvested share units outstanding at December 28, 20191,867 $16.93 $27,692 1.50
Granted — non-performanced based1,006 14.26 
Granted — performanced based1,124 14.40 
Vested(803)19.08 
Forfeited(83)15.53 
Nonvested share units outstanding at January 2, 20213,111 $14.64 $45,361 1.32
Granted — non-performanced based970 16.11 
Granted — performanced based(149)16.22 
Vested(1,694)14.87 
Forfeited(117)15.36 
Nonvested share units outstanding at January 1, 20222,121 $16.53 $35,455 1.18
Granted — non-performanced based1,178 15.39 
Granted — performanced based1,624 16.98 
Vested(829)15.92 
Forfeited(435)16.84 
Nonvested share units outstanding at December 31, 20223,659 $16.46 $23,268 1.24
The total fair value of shares vested during 2022, 2021 and 2020 was $13,199, $25,201 and $15,325, respectively. Certain participants elected to defer receipt of shares earned upon vesting.
In addition to granting RSUs that vest solely upon continued future service to the Company, the Company also grants performanced-based RSUs where the number of shares of the Company’s common stock that will be received upon vesting range from 0% to 200% of the number of units granted based on the Company’s achievement of certain performance metrics. These performanced-based stock awards, which are included in the table above, represent awards that are earned based on future performance and service. As reported in the above table, the number of performanced-based RSUs granted each year represents the initial units granted on the date of grant plus or minus any adjustment for units that were earned based on the final achievement of the respective performance thresholds.
For all share-based payments under the Omnibus Incentive Plan and outside the Omnibus Incentive Plan in 2020, the Company recognized compensation expense and deferred tax benefits as follows:
Years Ended
December 31,
2022		January 1,
2022		January 2,
2021
Compensation expense included in continuing operations$23,357 $16,065 $18,202 
Compensation expense included in discontinued operations(200)225 462 
Total compensation expense$23,157 $16,290 $18,664 
Deferred tax benefit recognized in continuing operations$— $2,499 $1,808 
At December 31, 2022, there was $23,329 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $16,349, $6,097, and $883 is expected to be recognized in continuing operations in 2023, 2024, and 2025, respectively.