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Business Segment Information
 6 Months Ended
Jun. 29, 2024
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Company regularly monitors its reportable segments to determine if changes in facts and circumstances would indicate whether changes in the determination or aggregation of operating segments are necessary. In the second quarter of 2024, the Company announced that it reached an agreement to sell the global Champion business as discussed in Note “Assets and Liabilities of Businesses Held for Sale” and as a result, this business was reclassified as held for sale and reflected as discontinued operations for all periods presented. While the global Champion business was reflected within all reportable segments prior to its reclassification to discontinued operations, the U.S. Champion business made up the majority of the Company’s former Activewear segment. Accordingly, the former Activewear segment has been eliminated and the segment information herein excludes the results of the global Champion business for all periods presented. As a result of the strategic shift and resulting reorganization, the chief executive officer, who is the Company’s chief operating decision maker, began reviewing all U.S. innerwear and U.S. activewear operations together as one U.S. operating segment and the Company’s operations are now managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: U.S. and International. These changes have been applied to all periods presented. These segments are organized and managed principally by 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. Sheer Hosiery business which was sold on September 29, 2023 and certain sales from its supply chain to the European Innerwear business which was sold on March 5, 2022. The Company’s U.S.-based outlet store business was also reflected in Other prior to its reclassification to discontinued operations in the second quarter of 2024 as discussed in Note “Assets and Liabilities of Businesses Held for Sale”. As a result of this reclassification, the results of the U.S.-based outlet store business are excluded from the segment information herein for all periods presented.
The types of products and services from which each reportable segment derives its revenues are as follows:
•U.S. primarily includes innerwear 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. This segment also includes other apparel sales in the United States of branded products that are primarily seasonal in nature to both retailers and wholesalers.
•International primarily includes sales of the Company’s innerwear and other apparel products outside the United States, primarily in 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, 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 December 30, 2023.
 Quarters EndedSix Months Ended
June 29,
2024		July 1,
2023		June 29,
2024		July 1,
2023
Net sales:
U.S.$740,154 $751,049 $1,284,045 $1,350,933 
International254,539 264,406 488,088 520,745 
Other700 19,549 1,473 47,356 
Total net sales$995,393 $1,035,004 $1,773,606 $1,919,034 

Quarters EndedSix Months Ended
June 29,
2024		July 1,
2023		June 29,
2024		July 1,
2023
Segment operating profit:
U.S.$158,214 $125,154 $256,477 $191,761 
International30,542 21,701 51,040 44,245 
Other(130)(1,721)551 (212)
Total segment operating profit188,626 145,134 308,068 235,794 
Items not included in segment operating profit:
General corporate expenses(58,222)(53,611)(118,917)(111,329)
Restructuring and other action-related charges(189,255)(16,695)(204,224)(19,704)
Amortization of intangibles(4,278)(4,895)(8,948)(9,284)
Total operating profit (loss)(63,129)69,933 (24,021)95,477 
Other expenses(10,785)(7,239)(20,014)(21,977)
Interest expense, net(50,299)(58,718)(100,905)(103,938)
Income (loss) from continuing operations before income taxes$(124,213)$3,976 $(144,940)$(30,438)
The Company incurred restructuring and other action-related charges that were reported in the following lines in the Condensed Consolidated Statements of Operations:
 Quarters EndedSix Months Ended
June 29,
2024		July 1,
2023		June 29,
2024		July 1,
2023
Cost of sales$88,621 $236 $88,824 $1,752 
Selling, general and administrative expenses100,634 16,459 115,400 17,952 
Total included in operating profit (loss)189,255 16,695 204,224 19,704 
Other expenses— — — 8,350 
Interest expense, net— — — (1,254)
Total included in income (loss) from continuing operations before income taxes189,255 16,695 204,224 26,800 
Income tax expense— — — — 
Total restructuring and other action-related charges included in loss from continuing operations$189,255 $16,695 $204,224 $26,800 
The components of restructuring and other action-related charges were as follows:
Quarters EndedSix Months Ended
June 29,
2024		July 1,
2023		June 29,
2024		July 1,
2023
Restructuring and other action-related charges:
Supply chain restructuring and consolidation$156,807 $236 $158,914 $1,752 
Corporate asset impairment charges20,107 — 20,107 — 
Headcount actions and related severance6,911 2,760 19,098 1,889 
Professional services3,544 3,608 4,034 3,648 
Technology218 2,881 399 7,102 
Loss on classification of assets held for sale— 7,338 — 5,199 
Other1,668 (128)1,672 114 
Total included in operating profit (loss)189,255 16,695 204,224 19,704 
Loss on extinguishment of debt included in other expenses— — — 8,466 
Gain on final settlement of cross currency swap contracts included in other expenses— — — (116)
Gain on final settlement of cross currency swap contracts included in interest expense, net— — — (1,254)
Total included in income (loss) from continuing operations before income taxes189,255 16,695 204,224 26,800 
Tax effect on actions— — — — 
Total restructuring and other action-related charges included in loss from continuing operations$189,255 $16,695 $204,224 $26,800 
As a result of and related to the pending sale of the global Champion business and the completed exit of the U.S.-based outlet store business in July 2024, the Company began implementing significant restructuring and consolidation efforts within its supply chain network, both manufacturing and distribution, as well as corporate cost and headcount reductions to align the Company’s network and improve its overall cost structure within continuing operations to drive stronger operating performance and margin expansion.
Restructuring and other action-related charges within operating profit (loss) were $189,255 and $16,695 in the quarters ended June 29, 2024 and July 1, 2023, respectively, and $204,224 and $19,704 in the six months ended June 29, 2024 and July 1, 2023, respectively. These charges primarily included the following:
•Supply chain restructuring and consolidation charges in the quarter and six months ended June 29, 2024 were $156,807 and $158,914, respectively, including the following charges which were incurred in the quarter and six months ended June 29, 2024:
◦$78,226 reflected in the “Cost of Sales” line in the Condensed Consolidated Statements of Operations, primarily related to charges of $48,000 to write down inventory as a result of further SKU rationalization efforts and $26,000 for severance and related employee actions for impacted supply chain facilities and
◦$78,581 reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations, primarily related to charges of $72,047 for impairment of an owned facility that was classified as held for sale and a right of use asset for which the leased facility was not in operation.
•Corporate asset impairment charges in quarter and six months ended June 29, 2024 were $20,107, respectively, which included the following:
◦$10,395 reflected in the “Cost of sales” line in the Condensed Consolidated Statements of Operations, primarily related to a contract termination and
◦$9,712 reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations, primarily related to charges for impairment of the Company’s headquarters location that was classified as held for sale.
•Headcount actions and related severance charges were $6,911 and $2,760 in the quarters ended June 29, 2024 and July 1, 2023 respectively, and $19,098 and $1,889 in the six months ended June 29, 2024 and July 1, 2023, respectively, which are primarily reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations, related to headcount actions and related severance resulting from operating model initiatives.
•Restructuring and other action-related charges in the quarter and six months ended July 1, 2023 included a non-cash loss of $7,338 and $5,199, respectively, which is reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations, to adjust the valuation allowance related to the U.S. Sheer Hosiery business resulting primarily from changes in carrying value due to changes in working capital. See Note “Assets and Liabilities of Businesses Held for Sale” for additional information regarding the U.S. Sheer Hosiery business.
The remaining restructuring and other action-related charges within operating profit (loss) include technology charges, which relate to the implementation of the Company’s technology modernization initiative including the implementation of a global enterprise resource planning platform, and charges for professional services primarily including consulting and advisory services related to restructuring activities. Supply chain restructuring and consolidation charges in the quarter and six months ended July 1, 2023 represent supply chain segmentation to restructure and position the Company’s distribution and manufacturing network to align with its demand trends.
In the six months ended July 1, 2023, the Company recorded a charge of $8,466 in restructuring and other action-related charges related to the redemption of its 4.625% Senior Notes and 3.5% Senior Notes. The charge, which is recorded in the “Other expenses” line in the Condensed Consolidated Statements of Operations, included a payment of $4,632 for a required make-whole premium related to the redemption of the 3.5% Senior Notes and a non-cash charge of $3,834 for the write-off of unamortized debt issuance costs related to the redemption of the 4.625% Senior Notes and the 3.5% Senior Notes. See Note “Debt” for additional information. Additionally, in the six months ended July 1, 2023, in connection with the redemption of the 3.5% Senior Notes, the Company unwound the related cross-currency swap contracts previously designated as cash flow hedges and the remaining gain in AOCI of $1,254 was released into earnings at the time of settlement which is recorded in the “Interest expense, net” line in the Condensed Consolidated Statements of Operations. See Note “Financial Instruments and Risk Management” for additional information.
At December 30, 2023, the Company had an accrual of $10,890 for expected benefit payments related to actions taken in prior years. During the six months ended June 29, 2024, the Company approved headcount actions and related severance to align its workforce and manufacturing and distribution network with its strategic initiatives resulting in charges of $61,338 for employee termination and other benefits for employees affected by the actions. The Company recorded $26,000 of these charges in the “Cost of sales” line, $22,737 in the “Selling, general and administrative expenses” line, and $12,601 in the “Income (loss) from discontinued operations, net of tax” line in the Condensed Consolidated Statements of Operations in the six months ended June 29, 2024. The charges related to continuing operations, which totaled $48,737 in the six months ended June 29, 2024, are included in the “Supply chain restructuring and consolidation” and the “Headcount actions and related severance” lines in the restructuring and other action-related charges table above. During the six months ended June 29, 2024, the Company made benefit payments and other adjustments of $13,044, resulting in an ending accrual of $59,184 which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheets at June 29, 2024.