GUARANTOR UNAUDITED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jul. 01, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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

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

Condensed Consolidating Statements of Operations (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 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

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

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

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