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GUARANTOR UNAUDITED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended
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Jul. 01, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
GUARANTOR UNAUDITED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | GUARANTOR UNAUDITED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The Company’s senior notes constitute debt obligations of its wholly-owned subsidiary, The William Carter Company ("TWCC" or the "Subsidiary Issuer"), are unsecured and are fully and unconditionally guaranteed by Carter’s, Inc. (the "Parent"), by certain of the Parent's current domestic subsidiaries (other than TWCC), and, subject to certain exceptions, future restricted subsidiaries that guarantee the Company’s secured revolving credit facility or certain other debt of the Company or the subsidiary guarantors. Under specific customary conditions, the guarantees are not full and unconditional because subsidiary guarantors can be released and relieved of their obligations under customary circumstances contained in the indenture governing the senior notes. These circumstances include, among others, the following, so long as other applicable provisions of the indentures are adhered to: any sale or other disposition of all or substantially all of the assets of any subsidiary guarantor, any sale or other disposition of capital stock of any subsidiary guarantor, or designation of any restricted subsidiary that is a subsidiary guarantor as an unrestricted subsidiary. For additional information, refer to the Company's Annual Report on Form 10-K for the 2016 fiscal year ended December 31, 2016. The condensed consolidating financial information for the Parent, the Subsidiary Issuer, and the guarantor and non-guarantor subsidiaries has been prepared from the books and records maintained by the Company. The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10. The financial information may not necessarily be indicative of the financial position, results of operations, comprehensive income (loss), and cash flows, had the Parent, Subsidiary Issuer, guarantor or non-guarantor subsidiaries operated as independent entities. Intercompany revenues and expenses included in the subsidiary records are eliminated in consolidation. As a result of this activity, an amount due to/due from affiliates will exist at any time. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. The Company has accounted for investments in subsidiaries under the equity method. The guarantor subsidiaries are 100% owned directly or indirectly by the Parent and all guarantees are joint, several, and unconditional. Condensed Consolidating Balance Sheets (unaudited) As of July 1, 2017 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
ASSETS |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 127,907 |  |  | $ | 11,435 |  |  | $ | 34,222 |  |  | $ | — |  |  | $ | 173,564 |
Accounts receivable, net | — |  |  | 124,885 |  |  | 35,765 |  |  | 4,533 |  |  | — |  |  | 165,183 |
Intercompany receivable | — |  |  | 56,526 |  |  | 61,911 |  |  | 25,588 |  |  | (144,025 | ) |  | — |
Finished goods inventories | — |  |  | 346,963 |  |  | 207,368 |  |  | 68,262 |  |  | (12,170 | ) |  | 610,423 |
Prepaid expenses and other current assets | — |  |  | 16,684 |  |  | 18,002 |  |  | 9,841 |  |  | — |  |  | 44,527 |
Total current assets | — |  |  | 672,965 |  |  | 334,481 |  |  | 142,446 |  |  | (156,195 | ) |  | 993,697 |
Property, plant, and equipment, net | — |  |  | 150,796 |  |  | 195,209 |  |  | 36,467 |  |  | — |  |  | 382,472 |
Goodwill | — |  |  | 136,570 |  |  | 53,635 |  |  | 41,504 |  |  | — |  |  | 231,709 |
Tradenames and other intangible assets, net | — |  |  | 223,339 |  |  | 177,396 |  |  | — |  |  | — |  |  | 400,735 |
Other assets | — |  |  | 20,901 |  |  | 447 |  |  | 1,898 |  |  | — |  |  | 23,246 |
Intercompany long-term receivable | — |  |  | — |  |  | 411,475 |  |  | — |  |  | (411,475 | ) |  | — |
Intercompany long-term note receivable | — |  |  | 100,000 |  |  | — |  |  | — |  |  | (100,000 | ) |  | — |
Investment in subsidiaries | 749,911 |  |  | 936,310 |  |  | 167,809 |  |  | — |  |  | (1,854,030 | ) |  | — |
Total assets | $ | 749,911 |  |  | $ | 2,240,881 |  |  | $ | 1,340,452 |  |  | $ | 222,315 |  |  | $ | (2,521,700 | ) |  | $ | 2,031,859 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 151,770 |  |  | $ | 47,695 |  |  | $ | 17,875 |  |  | $ | — |  |  | $ | 217,340 |
Intercompany payables | — |  |  | 82,539 |  |  | 57,034 |  |  | 4,452 |  |  | (144,025 | ) |  | — |
Other current liabilities | — |  |  | 32,973 |  |  | 53,114 |  |  | 8,557 |  |  | — |  |  | 94,644 |
Total current liabilities | — |  |  | 267,282 |  |  | 157,843 |  |  | 30,884 |  |  | (144,025 | ) |  | 311,984 |
Long-term debt, net | — |  |  | 661,846 |  |  | — |  |  | — |  |  | — |  |  | 661,846 |
Deferred income taxes | — |  |  | 69,750 |  |  | 63,400 |  |  | 101 |  |  | — |  |  | 133,251 |
Intercompany long-term liability | — |  |  | 411,475 |  |  | — |  |  | — |  |  | (411,475 | ) |  | — |
Intercompany long-term note payable | — |  |  | — |  |  | 100,000 |  |  | — |  |  | (100,000 | ) |  | — |
Other long-term liabilities | — |  |  | 68,447 |  |  | 92,236 |  |  | 14,184 |  |  | — |  |  | 174,867 |
Stockholders' equity | 749,911 |  |  | 762,081 |  |  | 926,973 |  |  | 177,146 |  |  | (1,866,200 | ) |  | 749,911 |
Total liabilities and stockholders' equity | $ | 749,911 |  |  | $ | 2,240,881 |  |  | $ | 1,340,452 |  |  | $ | 222,315 |  |  | $ | (2,521,700 | ) |  | $ | 2,031,859 |
As of December 31, 2016 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
ASSETS |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 229,056 |  |  | $ | 11,817 |  |  | $ | 58,485 |  |  | $ | — |  |  | $ | 299,358 |
Accounts receivable, net | — |  |  | 176,825 |  |  | 18,315 |  |  | 7,331 |  |  | — |  |  | 202,471 |
Intercompany receivable | — |  |  | 55,902 |  |  | 74,681 |  |  | 14,601 |  |  | (145,184 | ) |  | — |
Finished goods inventories | — |  |  | 278,696 |  |  | 174,542 |  |  | 60,153 |  |  | (25,800 | ) |  | 487,591 |
Prepaid expenses and other current assets | — |  |  | 11,402 |  |  | 16,028 |  |  | 4,750 |  |  | — |  |  | 32,180 |
Deferred income taxes | — |  |  | 18,476 |  |  | 15,440 |  |  | 1,570 |  |  | — |  |  | 35,486 |
Total current assets | — |  |  | 770,357 |  |  | 310,823 |  |  | 146,890 |  |  | (170,984 | ) |  | 1,057,086 |
Property, plant, and equipment, net | — |  |  | 155,187 |  |  | 194,691 |  |  | 35,996 |  |  | — |  |  | 385,874 |
Goodwill | — |  |  | 136,570 |  |  | — |  |  | 39,439 |  |  | — |  |  | 176,009 |
Tradenames and other intangible assets, net | — |  |  | 223,428 |  |  | 85,500 |  |  | — |  |  | — |  |  | 308,928 |
Other assets | — |  |  | 17,771 |  |  | 605 |  |  | 324 |  |  | — |  |  | 18,700 |
Intercompany long-term receivable | — |  |  | — |  |  | 428,436 |  |  | — |  |  | (428,436 | ) |  | — |
Intercompany long-term note receivable | — |  |  | 100,000 |  |  | — |  |  | — |  |  | (100,000 | ) |  | — |
Investment in subsidiaries | 788,124 |  |  | 753,753 |  |  | 145,076 |  |  | — |  |  | (1,686,953 | ) |  | — |
Total assets | $ | 788,124 |  |  | $ | 2,157,066 |  |  | $ | 1,165,131 |  |  | $ | 222,649 |  |  | $ | (2,386,373 | ) |  | $ | 1,946,597 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 97,103 |  |  | $ | 41,947 |  |  | $ | 19,382 |  |  | $ | — |  |  | $ | 158,432 |
Intercompany payables | — |  |  | 85,894 |  |  | 55,257 |  |  | 4,033 |  |  | (145,184 | ) |  | — |
Other current liabilities | — |  |  | 16,473 |  |  | 90,718 |  |  | 11,986 |  |  | — |  |  | 119,177 |
Total current liabilities | — |  |  | 199,470 |  |  | 187,922 |  |  | 35,401 |  |  | (145,184 | ) |  | 277,609 |
Long-term debt, net | — |  |  | 561,399 |  |  | — |  |  | 18,977 |  |  | — |  |  | 580,376 |
Deferred income taxes | — |  |  | 87,116 |  |  | 43,540 |  |  | — |  |  | — |  |  | 130,656 |
Intercompany long-term liability | — |  |  | 428,436 |  |  | — |  |  | — |  |  | (428,436 | ) |  | — |
Intercompany long-term note payable | — |  |  | — |  |  | 100,000 |  |  | — |  |  | (100,000 | ) |  | — |
Other long-term liabilities | — |  |  | 66,721 |  |  | 89,252 |  |  | 13,859 |  |  | — |  |  | 169,832 |
Stockholders' equity | 788,124 |  |  | 813,924 |  |  | 744,417 |  |  | 154,412 |  |  | (1,712,753 | ) |  | 788,124 |
Total liabilities and stockholders' equity | $ | 788,124 |  |  | $ | 2,157,066 |  |  | $ | 1,165,131 |  |  | $ | 222,649 |  |  | $ | (2,386,373 | ) |  | $ | 1,946,597 |
As of July 2, 2016 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
ASSETS |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 159,191 |  |  | $ | 11,233 |  |  | $ | 34,656 |  |  | $ | — |  |  | $ | 205,080 |
Accounts receivable, net | — |  |  | 126,501 |  |  | 19,844 |  |  | 4,288 |  |  | — |  |  | 150,633 |
Intercompany receivable | — |  |  | 62,988 |  |  | 115,545 |  |  | 6,820 |  |  | (185,353 | ) |  | — |
Finished goods inventories | — |  |  | 344,479 |  |  | 212,739 |  |  | 67,367 |  |  | (37,151 | ) |  | 587,434 |
Prepaid expenses and other current assets | — |  |  | 25,362 |  |  | 15,142 |  |  | 5,685 |  |  | — |  |  | 46,189 |
Deferred income taxes | — |  |  | 17,452 |  |  | 13,545 |  |  | 1,819 |  |  | — |  |  | 32,816 |
Total current assets | — |  |  | 735,973 |  |  | 388,048 |  |  | 120,635 |  |  | (222,504 | ) |  | 1,022,152 |
Property, plant, and equipment, net | — |  |  | 162,536 |  |  | 191,895 |  |  | 31,603 |  |  | — |  |  | 386,034 |
Goodwill | — |  |  | 136,570 |  |  | — |  |  | 40,970 |  |  | — |  |  | 177,540 |
Tradenames and other intangible assets, net | — |  |  | 223,517 |  |  | 85,500 |  |  | — |  |  | — |  |  | 309,017 |
Other assets | — |  |  | 16,705 |  |  | 708 |  |  | 336 |  |  | — |  |  | 17,749 |
Intercompany long-term receivable | — |  |  | — |  |  | 297,756 |  |  | — |  |  | (297,756 | ) |  | — |
Intercompany long-term note receivable | — |  |  | 100,000 |  |  | — |  |  | — |  |  | (100,000 | ) |  | — |
Investment in subsidiaries | 766,702 |  |  | 692,654 |  |  | 119,250 |  |  | — |  |  | (1,578,606 | ) |  | — |
Total assets | $ | 766,702 |  |  | $ | 2,067,955 |  |  | $ | 1,083,157 |  |  | $ | 193,544 |  |  | $ | (2,198,866 | ) |  | $ | 1,912,492 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 125,742 |  |  | $ | 44,406 |  |  | $ | 20,218 |  |  | $ | — |  |  | $ | 190,366 |
Intercompany payables | — |  |  | 120,695 |  |  | 61,774 |  |  | 2,884 |  |  | (185,353 | ) |  | — |
Other current liabilities | — |  |  | 7,293 |  |  | 63,500 |  |  | 9,802 |  |  | — |  |  | 80,595 |
Total current liabilities | — |  |  | 253,730 |  |  | 169,680 |  |  | 32,904 |  |  | (185,353 | ) |  | 270,961 |
Long-term debt, net | — |  |  | 560,964 |  |  | — |  |  | 19,714 |  |  | — |  |  | 580,678 |
Deferred income taxes | — |  |  | 83,601 |  |  | 45,081 |  |  | — |  |  | — |  |  | 128,682 |
Intercompany long-term liability | — |  |  | 297,756 |  |  | — |  |  | — |  |  | (297,756 | ) |  | — |
Intercompany long-term note payable | — |  |  | — |  |  | 100,000 |  |  | — |  |  | (100,000 | ) |  | — |
Other long-term liabilities | — |  |  | 68,051 |  |  | 85,078 |  |  | 12,340 |  |  | — |  |  | 165,469 |
Stockholders' equity | 766,702 |  |  | 803,853 |  |  | 683,318 |  |  | 128,586 |  |  | (1,615,757 | ) |  | 766,702 |
Total liabilities and stockholders' equity | $ | 766,702 |  |  | $ | 2,067,955 |  |  | $ | 1,083,157 |  |  | $ | 193,544 |  |  | $ | (2,198,866 | ) |  | $ | 1,912,492 |
Condensed Consolidating Statements of Operations (unaudited) For the fiscal quarter ended July 1, 2017 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net sales | $ | — |  |  | $ | 352,814 |  |  | $ | 435,321 |  |  | $ | 71,886 |  |  | $ | (167,904 | ) |  | $ | 692,117 |
Cost of goods sold | — |  |  | 260,902 |  |  | 257,323 |  |  | 37,019 |  |  | (166,584 | ) |  | 388,660 |
Gross profit | — |  |  | 91,912 |  |  | 177,998 |  |  | 34,867 |  |  | (1,320 | ) |  | 303,457 |
Selling, general, and administrative expenses | — |  |  | 38,295 |  |  | 193,865 |  |  | 26,292 |  |  | (8,306 | ) |  | 250,146 |
Royalty income | — |  |  | (8,905 | ) |  | (4,882 | ) |  | — |  |  | 2,577 |  |  | (11,210 | )
Operating income (loss) | — |  |  | 62,522 |  |  | (10,985 | ) |  | 8,575 |  |  | 4,409 |  |  | 64,521 |
Interest expense | — |  |  | 7,138 |  |  | 1,377 |  |  | 6 |  |  | (1,327 | ) |  | 7,194 |
Interest income | — |  |  | (1,400 | ) |  | — |  |  | (6 | ) |  | 1,327 |  |  | (79 | )
(Income) loss in subsidiaries | (37,925 | ) |  | 7,022 |  |  | (6,807 | ) |  | — |  |  | 37,710 |  |  | — |
Other (income) expense, net | — |  |  | (257 | ) |  | 280 |  |  | (567 | ) |  | — |  |  | (544 | )
Income (loss) before income taxes | 37,925 |  |  | 50,019 |  |  | (5,835 | ) |  | 9,142 |  |  | (33,301 | ) |  | 57,950 |
Provision for income taxes | — |  |  | 16,503 |  |  | 1,186 |  |  | 2,336 |  |  | — |  |  | 20,025 |
Net income (loss) | $ | 37,925 |  |  | $ | 33,516 |  |  | $ | (7,021 | ) |  | $ | 6,806 |  |  | $ | (33,301 | ) |  | $ | 37,925 |
For the fiscal quarter ended July 2, 2016 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net sales | $ | — |  |  | $ | 361,366 |  |  | $ | 374,806 |  |  | $ | 66,218 |  |  | $ | (162,919 | ) |  | $ | 639,471 |
Cost of goods sold | — |  |  | 264,791 |  |  | 220,976 |  |  | 30,976 |  |  | (159,454 | ) |  | 357,289 |
Gross profit | — |  |  | 96,575 |  |  | 153,830 |  |  | 35,242 |  |  | (3,465 | ) |  | 282,182 |
Selling, general, and administrative expenses | — |  |  | 40,434 |  |  | 173,924 |  |  | 22,514 |  |  | (8,408 | ) |  | 228,464 |
Royalty income | — |  |  | (7,057 | ) |  | (4,514 | ) |  | — |  |  | 2,046 |  |  | (9,525 | )
Operating income (loss) | — |  |  | 63,198 |  |  | (15,580 | ) |  | 12,728 |  |  | 2,897 |  |  | 63,243 |
Interest expense | — |  |  | 6,667 |  |  | 1,861 |  |  | 112 |  |  | (1,837 | ) |  | 6,803 |
Interest income | — |  |  | (1,989 | ) |  | — |  |  | (26 | ) |  | 1,837 |  |  | (178 | )
(Income) loss in subsidiaries | (36,198 | ) |  | 10,335 |  |  | (9,397 | ) |  | — |  |  | 35,260 |  |  | — |
Other (income) expense, net | — |  |  | (373 | ) |  | 387 |  |  | 502 |  |  | — |  |  | 516 |
Income (loss) before income taxes | 36,198 |  |  | 48,558 |  |  | (8,431 | ) |  | 12,140 |  |  | (32,363 | ) |  | 56,102 |
Provision for income taxes | — |  |  | 15,258 |  |  | 1,903 |  |  | 2,743 |  |  | — |  |  | 19,904 |
Net income (loss) | $ | 36,198 |  |  | $ | 33,300 |  |  | $ | (10,334 | ) |  | $ | 9,397 |  |  | $ | (32,363 | ) |  | $ | 36,198 |
For the two fiscal quarters ended July 1, 2017 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net sales | $ | — |  |  | $ | 806,329 |  |  | $ | 831,100 |  |  | $ | 132,917 |  |  | $ | (345,474 | ) |  | $ | 1,424,872 |
Cost of goods sold | — |  |  | 591,535 |  |  | 486,089 |  |  | 74,448 |  |  | (346,459 | ) |  | 805,613 |
Gross profit | — |  |  | 214,794 |  |  | 345,011 |  |  | 58,469 |  |  | 985 |  |  | 619,259 |
Selling, general, and administrative expenses | — |  |  | 79,227 |  |  | 383,369 |  |  | 52,563 |  |  | (17,219 | ) |  | 497,940 |
Royalty income | — |  |  | (17,335 | ) |  | (9,007 | ) |  | — |  |  | 4,574 |  |  | (21,768 | )
Operating income (loss) | — |  |  | 152,902 |  |  | (29,351 | ) |  | 5,906 |  |  | 13,630 |  |  | 143,087 |
Interest expense | — |  |  | 14,111 |  |  | 2,746 |  |  | 95 |  |  | (2,654 | ) |  | 14,298 |
Interest income | — |  |  | (2,839 | ) |  | — |  |  | (33 | ) |  | 2,654 |  |  | (218 | )
(Income) loss in subsidiaries | (84,589 | ) |  | 28,053 |  |  | (4,358 | ) |  | — |  |  | 60,894 |  |  | — |
Other (income) expense, net | — |  |  | (625 | ) |  | 648 |  |  | (788 | ) |  | — |  |  | (765 | )
Income (loss) before income taxes | 84,589 |  |  | 114,202 |  |  | (28,387 | ) |  | 6,632 |  |  | (47,264 | ) |  | 129,772 |
Provision for (benefit from) income taxes | — |  |  | 43,243 |  |  | (334 | ) |  | 2,274 |  |  | — |  |  | 45,183 |
Net income (loss) | $ | 84,589 |  |  | $ | 70,959 |  |  | $ | (28,053 | ) |  | $ | 4,358 |  |  | $ | (47,264 | ) |  | $ | 84,589 |
For the two fiscal quarters ended July 2, 2016 (dollars in thousands)
| Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net sales | $ | — |  |  | $ | 812,562 |  |  | $ | 756,086 |  |  | $ | 122,048 |  |  | $ | (327,140 | ) |  | $ | 1,363,556 |
Cost of goods sold | — |  |  | 585,891 |  |  | 432,004 |  |  | 64,067 |  |  | (311,517 | ) |  | 770,445 |
Gross profit | — |  |  | 226,671 |  |  | 324,082 |  |  | 57,981 |  |  | (15,623 | ) |  | 593,111 |
Selling, general, and administrative expenses | — |  |  | 83,021 |  |  | 346,066 |  |  | 45,891 |  |  | (17,518 | ) |  | 457,460 |
Royalty income | — |  |  | (16,129 | ) |  | (8,725 | ) |  | — |  |  | 4,254 |  |  | (20,600 | )
Operating income (loss) | — |  |  | 159,779 |  |  | (13,259 | ) |  | 12,090 |  |  | (2,359 | ) |  | 156,251 |
Interest expense | — |  |  | 13,275 |  |  | 2,706 |  |  | 215 |  |  | (2,654 | ) |  | 13,542 |
Interest income | — |  |  | (2,974 | ) |  | — |  |  | (65 | ) |  | 2,654 |  |  | (385 | )
(Income) loss in subsidiaries | (90,178 | ) |  | 16,831 |  |  | (6,057 | ) |  | — |  |  | 79,404 |  |  | — |
Other expense (income), net | — |  |  | (173 | ) |  | 173 |  |  | 3,709 |  |  | — |  |  | 3,709 |
Income (loss) before income taxes | 90,178 |  |  | 132,820 |  |  | (10,081 | ) |  | 8,231 |  |  | (81,763 | ) |  | 139,385 |
Provision for income taxes | — |  |  | 40,284 |  |  | 6,749 |  |  | 2,174 |  |  | — |  |  | 49,207 |
Net income (loss) | $ | 90,178 |  |  | $ | 92,536 |  |  | $ | (16,830 | ) |  | $ | 6,057 |  |  | $ | (81,763 | ) |  | $ | 90,178 |
Condensed Consolidating Statements of Comprehensive Income (unaudited) For the fiscal quarter ended July 1, 2017 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net income (loss) |  | $ | 37,925 |  |  | $ | 33,516 |  |  | $ | (7,021 | ) |  | $ | 6,806 |  |  | $ | (33,301 | ) |  | $ | 37,925 |
Foreign currency translation adjustments |  | 3,140 |  |  | 3,140 |  |  | 3,140 |  |  | 3,140 |  |  | (9,420 | ) |  | 3,140 |
Comprehensive income (loss) |  | $ | 41,065 |  |  | $ | 36,656 |  |  | $ | (3,881 | ) |  | $ | 9,946 |  |  | $ | (42,721 | ) |  | $ | 41,065 |
For the fiscal quarter ended July 2, 2016 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net income (loss) |  | $ | 36,198 |  |  | $ | 33,300 |  |  | $ | (10,334 | ) |  | $ | 9,397 |  |  | $ | (32,363 | ) |  | $ | 36,198 |
Foreign currency translation adjustments |  | 548 |  |  | 548 |  |  | 548 |  |  | 548 |  |  | (1,644 | ) |  | 548 |
Comprehensive income (loss) |  | $ | 36,746 |  |  | $ | 33,848 |  |  | $ | (9,786 | ) |  | $ | 9,945 |  |  | $ | (34,007 | ) |  | $ | 36,746 |
CARTER’S, INC. Condensed Consolidating Statements of Comprehensive Income (unaudited) For the two fiscal quarters ended July 1, 2017 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net income (loss) |  | $ | 84,589 |  |  | $ | 70,959 |  |  | $ | (28,053 | ) |  | $ | 4,358 |  |  | $ | (47,264 | ) |  | $ | 84,589 |
Foreign currency translation adjustments |  | 4,087 |  |  | 4,087 |  |  | 4,087 |  |  | 4,087 |  |  | (12,261 | ) |  | 4,087 |
Comprehensive income (loss) |  | $ | 88,676 |  |  | $ | 75,046 |  |  | $ | (23,966 | ) |  | $ | 8,445 |  |  | $ | (59,525 | ) |  | $ | 88,676 |
For the two fiscal quarters ended July 2, 2016 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Net income (loss) |  | $ | 90,178 |  |  | $ | 92,536 |  |  | $ | (16,830 | ) |  | $ | 6,057 |  |  | $ | (81,763 | ) |  | $ | 90,178 |
Foreign currency translation adjustments |  | 5,834 |  |  | 5,834 |  |  | 5,834 |  |  | 5,834 |  |  | (17,502 | ) |  | 5,834 |
Comprehensive income (loss) |  | $ | 96,012 |  |  | $ | 98,370 |  |  | $ | (10,996 | ) |  | $ | 11,891 |  |  | $ | (99,265 | ) |  | $ | 96,012 |
Condensed Consolidating Statements of Cash Flows (unaudited) For the two fiscal quarters ended July 1, 2017 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Cash flows provided by (used in) operating activities: |  | $ | — |  |  | $ | 120,884 |  |  | $ | (13,661 | ) |  | $ | 110 |  |  | $ | — |  |  | $ | 107,333 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (10,594 | ) |  | (19,719 | ) |  | (3,963 | ) |  | — |  |  | (34,276 | )
Intercompany investing activity |  | 136,535 |  |  | (2,468 | ) |  | — |  |  | — |  |  | (134,067 | ) |  | — |
Acquisition of business, net of cash acquired |  | — |  |  | (144,520 | ) |  | 746 |  |  | 70 |  |  | — |  |  | (143,704 | )
Net cash provided by (used in) investing activities |  | 136,535 |  |  | (157,582 | ) |  | (18,973 | ) |  | (3,893 | ) |  | (134,067 | ) |  | (177,980 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Intercompany financing activity |  | — |  |  | (164,451 | ) |  | 32,252 |  |  | (1,868 | ) |  | 134,067 |  |  | — |
Borrowings under secured revolving credit facility |  | — |  |  | 100,000 |  |  | — |  |  | — |  |  | — |  |  | 100,000 |
Payments on secured revolving credit facility |  | — |  |  | — |  |  | — |  |  | (18,965 | ) |  | — |  |  | (18,965 | )
Dividends paid |  | (35,831 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (35,831 | )
Repurchases of common stock |  | (98,236 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (98,236 | )
Withholdings from vestings of restricted stock |  | (5,590 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,590 | )
Proceeds from exercises of stock options |  | 3,122 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,122 |
Net cash (used in) provided by financing activities |  | (136,535 | ) |  | (64,451 | ) |  | 32,252 |  |  | (20,833 | ) |  | 134,067 |  |  | (55,500 | )
Effect of exchange rate changes on cash |  | — |  |  | — |  |  | — |  |  | 353 |  |  | — |  |  | 353 |
Net decrease in cash and cash equivalents |  | — |  |  | (101,149 | ) |  | (382 | ) |  | (24,263 | ) |  | — |  |  | (125,794 | )
Cash and cash equivalents, beginning of period |  | — |  |  | 229,056 |  |  | 11,817 |  |  | 58,485 |  |  | — |  |  | 299,358 |
Cash and cash equivalents, end of period |  | $ | — |  |  | $ | 127,907 |  |  | $ | 11,435 |  |  | $ | 34,222 |  |  | $ | — |  |  | $ | 173,564 |
For the two fiscal quarters ended July 2, 2016 (dollars in thousands)
|  | Parent |  | Subsidiary Issuer |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Consolidated
Cash flows provided by (used in) operating activities: |  | $ | — |  |  | $ | 75,255 |  |  | $ | 12,749 |  |  | $ | (2,405 | ) |  | $ | — |  |  | $ | 85,599 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (15,895 | ) |  | (30,274 | ) |  | (3,529 | ) |  | — |  |  | (49,698 | )
Intercompany investing activity |  | 217,295 |  |  | (1,784 | ) |  | (1,623 | ) |  | — |  |  | (213,888 | ) |  | — |
Proceeds from sale of property, plant and equipment |  | — |  |  | — |  |  | — |  |  | 193 |  |  | — |  |  | 193 |
Net cash provided by (used in) investing activities |  | 217,295 |  |  | (17,679 | ) |  | (31,897 | ) |  | (3,336 | ) |  | (213,888 | ) |  | (49,505 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Intercompany financing activity |  | — |  |  | (226,217 | ) |  | 14,106 |  |  | (1,777 | ) |  | 213,888 |  |  | — |
Dividends Paid |  | (33,679 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (33,679 | )
Income tax benefit from stock-based compensation |  | — |  |  | 2,061 |  |  | 1,623 |  |  | — |  |  | — |  |  | 3,684 |
Repurchases of common stock |  | (180,209 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (180,209 | )
Withholdings from vestings of restricted stock |  | (8,508 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,508 | )
Proceeds from exercises of stock options |  | 5,101 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,101 |
Net cash (used in) provided by financing activities |  | (217,295 | ) |  | (224,156 | ) |  | 15,729 |  |  | (1,777 | ) |  | 213,888 |  |  | (213,611 | )
Effect of exchange rate changes on cash |  | — |  |  | — |  |  | — |  |  | 1,388 |  |  | — |  |  | 1,388 |
Net decrease in cash and cash equivalents |  | — |  |  | (166,580 | ) |  | (3,419 | ) |  | (6,130 | ) |  | — |  |  | (176,129 | )
Cash and cash equivalents, beginning of period |  | — |  |  | 325,771 |  |  | 14,652 |  |  | 40,786 |  |  | — |  |  | 381,209 |
Cash and cash equivalents, end of period |  | $ | — |  |  | $ | 159,191 |  |  | $ | 11,233 |  |  | $ | 34,656 |  |  | $ | — |  |  | $ | 205,080 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=68079674&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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